|                                             |
|---------------------------------------------|
|                                             |  |  |
| 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: |

----

----

|                                          |
|------------------------------------------|
|                                          |
| NOTICE OF ANNUAL MEETING OF STOCKHOLDERS |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | Elect as directors the nominees named in the accompanying proxy statement; |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | Act on an advisory vote on executive compensation as disclosed in the accompanying proxy statement; |

|         |                                                                                          |
|---------|------------------------------------------------------------------------------------------|
| • | Act on an advisory vote on the frequency of the advisory vote on executive compensation; |

|         |                                                                                  |
|---------|----------------------------------------------------------------------------------|
| • | Ratify the appointment of our independent registered public accounting firm; and |

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | Act upon any other matters properly brought before the annual meeting. |

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

|  |
|--|
|  |  |
|  | 2017 Proxy Statement |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |
| TABLE OF CONTENTS                                               |
| Proxy Summary                                                   | 2 |   | Equity Compensation Plan Information | 69 |
| Executive Summary                                               | 5 |   | PROPOSAL 3 - Advisory Vote on Frequency of Vote on Executive Compensation | 71 |
|                                                            |   |   |   |   |
| Frequently Asked Questions Regarding Attendance and Voting      | 10 |   | PROPOSAL 4 - Ratification of Independent Registered Public Accounting Firm | 72 |
|                                                            |   |   |   |   |
| PROPOSAL 1 — Election of Directors                        | 15 |   | Audit Committee Report | 72 |
|                                                            |   |   |   |   |
| Corporate Governance                                            | 22 |   | Independent Registered Public Accounting Firm Fee Information | 73 |
| Corporate Governance Guidelines                                 | 22 |   |   |   |
| Related Party Transactions and Approval Policy                  | 22 |   | Other Matters | 74 |
| Director Independence Determinations                            | 23 |   | Section 16(a) Beneficial Ownership Reporting Compliance | 74 |
| Board Leadership Structure                                      | 23 |   | Availability of Form 10-K and Annual Report to Stockholders | 74 |
| Risk Oversight                                                  | 23 |   | Matters Raised at the Meeting not Included in this Proxy Statement | 74 |
| Nominating Directors                                            | 24 |   |   |   |
| Board Committees and Meetings                                   | 25 |   | Admission and Ticket Request Procedure | 75 |
| Communication with the Board                                    | 27 |   |
| Code of Conduct                                                 | 27 |   |   |   |
| Persons Owning More than Five Percent of Navistar Common Stock  | 28 |   | APPENDIX A — Aon Hewitt’s 2016 U.S. TCM Total Compensation Executive Regression | A-1 |
|                                                            |   |   |
| Navistar Common Stock Owned by Executive Officers and Directors | 30 |   | APPENDIX B — Towers Watson’s 2016 CDB General Industry Executive Compensation Survey Reports — U.S. Surveys | B-1 |
|                                                            |   |   |
| PROPOSAL 2 - Advisory Vote on Executive Compensation            | 32 |   |   |   |
|                                                            |   |   |
| Compensation                                                    | 33 |   |   |   |
| Compensation Committee Report                                   | 33 |   |   |   |
| Compensation Discussion and Analysis                            | 33 |   |   |   |
| Executive Summary                                               | 34 |   |   |   |
| Detailed Review of Executive Compensation                       | 37 |   |   |   |
| Executive Compensation Tables                                   | 48 |   |   |   |
| Compensation Risk                                               | 65 |   |   |   |
| Compensation of Directors                                       | 66 |   |   |   |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 1 |

----

|               |
|---------------|
|               |
| PROXY SUMMARY |

|             |
|-------------|
|             |
| How to Vote |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |
|                                                  | Via the Internet: |   |  | By Telephone (toll free): |
| http://www.proxyvote.com                         |   | 1-800-690-6903 |
|                                             |   |   |   |   |
|                                                  | By Mail: |   |  | In Person: |
| Complete, sign and mail the enclosed proxy card. |   | Stockholders who obtain an admission ticket can attend and vote at the annual meeting. |
|                                             |   |   |
|                                                  | By Scanning Your QR Code: |   |   |   |
| Vote with your mobile device.                    |   |   |

|                         |
|-------------------------|
|                         |
| Annual Meeting Location |

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |
| Stockholder Action                                                       |
| Proposals for Your Vote                                                  | Board Voting Recommendation | Page |
| Proposal 1: Election of Directors                                        | FOR each nominee | 15 |
| Proposal 2: Advisory Vote on Executive Compensation                      | FOR | 32 |
| Proposal 3: Advisory Vote on Frequency of Vote on Executive Compensation | FOR | 71 |
| Proposal 4: Ratification of Independent Registered Accounting Firm       | FOR | 72 |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 2 |

----

|                   |
|-------------------|
|                   |
| Director Nominees |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |
| Nominee and Principal Occupation                                                    | Age | Director Since | Independent | Current Committee Membership |
| Troy A. Clarke                                                                      |   |   |   |   |
| President and Chief Executive Officer of Navistar                                   | 61 | April 2013 |   |   |
| Jose Maria Alapont                                                                  |   |   |   |   |
| Former Chairman, President and Chief Executive Officer of Federal-Mogul Corporation | 66 | October 2016 | X | Finance |
| Stephen R. D'Arcy                                                                   |   |   |   |   |
| Partner, Quantum Group LLC                                                          | 62 | October 2016 | X | Audit |
| Vincent J. Intrieri                                                                 |   |   |   |   |
| Senior Managing Director of Icahn Capital LP                                        | 60 | October 2012 | X | Finance (Co-Chair) and Nominating & Governance |
| General (Retired) Stanley A. McChrystal                                             |   |   |   |   |
| General McChrystal is a retired 34-year U.S. Army veteran of multiple wars          | 62 | February 2011 | X | Compensation and Nominating & Governance |
| Samuel J. Merksamer                                                                 |   |   |   |   |
| Managing Director of Icahn Capital LP                                               | 36 | December 2012 | X | Audit and  Compensation |
| Mark H. Rachesky, M.D.                                                              |   |   |   |   |
| Founder and President of MHR Fund Management LLC                                    | 57 | October 2012 | X | Finance (Co-Chair) and Nominating & Governance |
| Michael F. Sirignano                                                                |   |   |   |   |
| Principal of MHR Fund Management LLC                                                | 35 | March 2014 | X | Audit and  Compensation (Chair) |
| Dennis A. Suskind                                                                   |   |   |   |   |
| Former Partner, Goldman Sachs & Company                                         | 74 | October 2016 | X | Compensation |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 3 |

----

|                   |
|-------------------|
|                   |
| Business Strategy |

|                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                    |  |
| Our 2016 Accomplishments●   Announced the Volkswagen Truck and Bus Alliance●   Launched products and product features important to key markets ●   Improved quality and uptime●   Delivered on our plan to reduce costs●   Built sales momentum●   Evaluation of non-core activities | Our Expectations Going Forward●   Grow the Core Business●   Seek New Sources of Revenue●   Drive Operational Excellence●   Leverage the Volkswagen Truck and Bus Alliance●   Invest in our People●   Improve Financial Performance |

|                                 |
|---------------------------------|
|                                 |
| Corporate Governance Highlights |

|        |                                                                                                                                                                                                                                                  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ü | 9 of 10 directors who are expected to continue following the 2017 Annual Meeting of Stockholders are independent under our corporate governance guidelines and the New York Stock Exchange (‘‘NYSE’’) listing standards. |

|        |                                                                                |
|--------|--------------------------------------------------------------------------------|
| ü | We have 100% independent Board of Directors (the "Board") standing committees. |

|        |                               |
|--------|-------------------------------|
| ü | We have a declassified Board. |

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

|        |                                                                                         |
|--------|-----------------------------------------------------------------------------------------|
| ü | We have a director resignation policy for directors who fail to obtain a majority vote. |

|        |                                                                                          |
|--------|------------------------------------------------------------------------------------------|
| ü | We have no super-majority voting provisions to approve transactions, including a merger. |

|        |                             |
|--------|-----------------------------|
| ü | We have a claw-back policy. |

|        |                                                                                                       |
|--------|-------------------------------------------------------------------------------------------------------|
| ü | We entered into more restrictive Executive Severance Agreements ("ESAs") with our executive officers. |

|        |                                                                                                                                                                                                                                                                                                                                                                               |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ü | We do not provide tax gross-ups for perquisites and other similar benefits to officers who are subject to Section 16 (the ‘‘Section 16 Officers’’) of the Securities Exchange Act of 1934, as amended (the ‘‘Exchange Act’’).  Additionally, we do not provide tax gross-ups for any cash or equity awards for any employees. |

|        |                                                                                |
|--------|--------------------------------------------------------------------------------|
| ü | We have ‘‘double trigger’’ change in control benefits. |

|        |                                                                                                                                 |
|--------|---------------------------------------------------------------------------------------------------------------------------------|
| ü | Our Named Executive Officers ("NEOs") and directors are subject to stock ownership guidelines and stock retention requirements. |

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

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 4 |

----

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

|         |                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In early 2016, we launched the International® HX™ Series, the first in a series of new product launches.  The HX is a Class 8 premium truck for the construction and vocational markets. |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | In mid-2016, we introduced our Cummins ISL engine offering in our Medium and Severe Service trucks. |

|         |                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------|
| • | In late-2016 we introduced the International® LT™ with Cummins X15 series to replace our ProStar line of trucks. |

|         |                                                                  |
|---------|------------------------------------------------------------------|
| • | In late-2016 we introduced a propane engine in our school buses. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | OnCommand Connection ("OnCommand"), our unique open architecture, all-makes remote diagnostics system, was tailored for the applications of our bus and truck customers, and is now standard on our vehicles, to achieve more efficient repairs and maintenance, better life-cycle value, and an overall lower cost of ownership.  We now have more than 250,000 vehicles subscribed to the OnCommand system. |

|         |                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We have reduced dealer dwell time through improvements in the diagnostics and repair procedures.  An increasing number of service locations have achieved Diamond Edge certification, which is a dealer service performance program launched this year that includes rigorous requirements and measured results. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We have made great strides on improving the quality of components manufactured by our supply base.  The quality performance of our supply base has improved to the point that we have seen a reduction in excess of 70% in supplier related defects in our manufacturing facility over the last four years.  The reduction of internal defects will have a positive impact on the uptime and performance of our vehicles. |

|         |                                                                                         |
|---------|-----------------------------------------------------------------------------------------|
| • | Procurement and engineering design processes remain focused on lowering material costs. |

|         |                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We continued to implement cost saving initiatives, including reductions in discretionary spending and employee headcount reductions, resulting the lowering of structural costs by $147 million in 2016 compared to 2015. |

|         |                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our focused factory strategy has been implemented across our plants whereby each facility is primarily focused on a specific platform, allowing for higher levels of manufacturing and logistic efficiency. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 5 |

----

|         |                         |
|---------|-------------------------|
| • | Grow the Core Business; |

|         |                              |
|---------|------------------------------|
| • | Seek New Sources of Revenue; |

|         |                               |
|---------|-------------------------------|
| • | Drive Operational Excellence; |

|         |                                   |
|---------|-----------------------------------|
| • | Leverage the VW T&B Alliance; |

|         |                           |
|---------|---------------------------|
| • | Invest in our People; and |

|         |                                |
|---------|--------------------------------|
| • | Improve Financial Performance. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | New Product Launches — Many key product launches are planned through the next several years, including a new line of Class 4/5 commercial vehicles in the first half of 2018 that will be distributed separately through General Motors Company ("GM") and our dealer networks.  In 2017, we will also introduce our new MV and RH models with superior fuel economy.  To support greenhouse gas emissions requirements, we will continue to introduce features that further improve fuel economy.  We will also relaunch our proprietary 13L engine which is critical to our success in the Heavy and Vocational markets. |

|         |                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Distribution Effectiveness — We will invest in the dealer organization to improve customer reach and sales effectiveness.  Core to this strategy is recruitment and training of salespeople, improved operating practices and comprehensive internal sales support. |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | Building Customer Purchase Consideration — We will rebuild brand and customer loyalty across all of our core markets. |

|         |                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Grow Core Services — In 2016, we extended our relationship with GM by signing a long-term agreement to manufacture GM's G Van cutaway models at our Springfield, Ohio assembly plant.  Production is to begin in the first calendar quarter of 2017. |

|         |                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Parts — We will pursue continued growth of the successful Fleetrite all makes parts offering and reman business.  We will also leverage our connected vehicle platform and use of other technologies to accelerate parts and service growth. |

|         |                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| • | OnCommand Connections — We are planning to leverage the value of the data gathered through OnCommand to generate new sources of revenue. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Products and Technology — VW T&B and Navistar have a similar vision for the role of technology, including the importance of driver-focused open architecture solutions.  The alliance will be a source of power-train options and other high-value technologies, including advanced driver assistance systems, connected vehicle solutions, platooning and autonomous technologies, electric vehicles, and cab and chassis subsystems. |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | Market Confidence — Increase consideration as part of a leading global truck alliance. |

|         |                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------|
| • | Parts — Create new parts sales and growth opportunities afforded by vertically integrated systems. |

|         |                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Costs — Leverage global scale to achieve significant cost reduction synergies, and drive more efficient research and development spend. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 6 |

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|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 7 |

----

|         |                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 9 of 10 directors who are expected to continue following the 2017 Annual Meeting of Stockholders are independent under our Corporate Governance Guidelines and the NYSE listing standards. |

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

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

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

|         |                                                                                          |
|---------|------------------------------------------------------------------------------------------|
| • | We have no super-majority voting provisions to approve transactions, including a merger. |

|         |                             |
|---------|-----------------------------|
| • | We have a claw-back policy. |

|         |                                                                    |
|---------|--------------------------------------------------------------------|
| • | We entered into more restrictive ESAs with our executive officers. |

|         |                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We do not provide tax gross-ups for perquisites and other similar benefits to Section 16 Officers and we do not provide tax gross-ups for any cash or equity awards for 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. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 8 |

----

|         |                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|
| • | We approved an AI plan that leverages our scorecard approach using multiple performance metrics and an adjusted EBITDA multiplier |

|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| • | We approved a Long-Term Incentive (‘‘LTI’’) plan with a mix of performance-based and time-based equity |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 9 |

----

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

|    |                                                                         |
|----|-------------------------------------------------------------------------|
| Q: | Why did I receive a notice of internet availability of proxy materials? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | Pursuant to the rules of the SEC, we have elected to provide access to our proxy materials over the internet. Accordingly, we have sent you a Notice of Internet Availability of Proxy Materials (the ‘‘Notice’’) because the Board is soliciting your proxy to vote your shares at our 2017 Annual Meeting of Stockholders (the ‘‘Annual Meeting’’).  This proxy statement includes information that we are required to provide to you under the rules of the SEC and is designed to assist you in voting your shares.  All stockholders will have the ability to access the proxy materials on the website referred to in the Notice or request to receive a printed set of the proxy materials.  Instructions on how to access the proxy materials over the internet or to request a printed copy can be found in the Notice. |
|    |                                            |
|----|--------------------------------------------|
| Q: | What is the purpose of the Annual Meeting? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | The purpose of the Annual Meeting is to have stockholders consider and act upon the matters outlined in the notice of Annual Meeting and this proxy statement, which include (i) Proposal 1 — the election of the nominees named in this proxy statement as directors, (ii) Proposal 2 — an advisory vote on executive compensation, a so-called ‘‘Say-on-Pay’’ proposal, (iii) Proposal 3 — an advisory vote on the frequency of the advisory vote on executive compensation, a so-called ‘‘Say-When-on-Pay’’ proposal, (iv) Proposal 4 — the ratification of the appointment of KPMG LLP (‘‘KPMG’’), the Company’s independent registered public accounting firm, and (v) any other matters properly brought before the Annual Meeting.  In addition, management may report on the performance of the Company and respond to appropriate questions from stockholders. |
|    |                                           |
|----|-------------------------------------------|
| Q: | How does the Board recommend that I vote? |
|    |                                     |
|----|-------------------------------------|
| A. | The Board recommends that you vote: |
|         |                                                                 |
|---------|-----------------------------------------------------------------|
| • | FOR the election of each of the director nominees (Proposal 1); |
|         |                                                                               |
|---------|-------------------------------------------------------------------------------|
| • | FOR the approval of the advisory vote on executive compensation (Proposal 2); |
|         |                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| • | FOR the approval of the advisory vote on the frequency of the advisory vote on executive compensation to be held every year (Proposal 3); and |

|         |                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------|
| • | FOR the ratification of the appointment of KPMG as our independent registered public accounting firm (Proposal 4). |
|    |                                    |
|----|------------------------------------|
| Q: | Who can attend the Annual Meeting? |
|    |                                                                                                                               |
|----|-------------------------------------------------------------------------------------------------------------------------------|
| A: | Anyone wishing to attend the Annual Meeting must have an admission ticket issued in his or her name. Admission is limited to: |
|         |                                               |
|---------|-----------------------------------------------|
| • | Stockholders of record on December 19, 2016 ; |
|         |                                                                                |
|---------|--------------------------------------------------------------------------------|
| • | An authorized proxy holder of a stockholder of record on December 19, 2016; or |
|         |                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------|
| • | An authorized representative of a stockholder of record who has been designated to present a properly-submitted stockholder proposal. |
|    |                                  |
|----|----------------------------------|
| Q: | What is a stockholder of record? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | A stockholder of record or registered stockholder is a stockholder whose ownership of our common stock (‘‘Common Stock’’) is reflected directly on the books and records of our transfer agent, Computershare Investor Services (the ‘‘Transfer Agent’’).  If you hold Common Stock through a bank, broker or other nominee, you hold your shares in ‘‘street name’’ and are not a stockholder of record.  For shares held in street name, the stockholder of record of the shares is your bank, broker or other nominee.  The Company only has access to ownership records for stockholders of record.  So, if you are not a stockholder of record, for the purpose of requesting an admission ticket to attend the Annual Meeting, you must present us with additional documentation to evidence your stock ownership as of the record date, such as, a copy of your brokerage account statement, a letter from your broker, bank or other nominee or a copy of your voting instruction card from your broker, bank or other nominee. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 10 |

----

|    |                                                      |
|----|------------------------------------------------------|
| Q: | When is the record date and who is entitled to vote? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | The Board has set December 19, 2016, as the record date for the Annual Meeting.  Holders of shares of Common Stock on that date are entitled to one vote per share.  As of December 19, 2016, there were approximately 81,710,420 shares of Common Stock outstanding.  If you hold shares of our Common Stock as a participant in any of the Company’s 401(k) or retirement savings plans, your proxy card will represent the number of shares of Common Stock allocated to your account under the plan and will serve as a direction to the plan’s trustee as to how the shares in your account are to be voted. |
|    |                |
|----|----------------|
| Q: | How do I vote? |
|    |                                                                                      |
|----|--------------------------------------------------------------------------------------|
| A: | For stockholders of record:  You may vote by any of the following methods: |

|        |
|--------|
|        |  |
|        | 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 scanning your QR code — to vote with your mobile device. |
|   |   |
|        | 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. |

|    |                                      |
|----|--------------------------------------|
| Q: | How can I change or revoke my proxy? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | For stockholders of record:  You may change or revoke your proxy at any time before it is exercised by (i) submitting a written notice of revocation to Navistar     c/o the Corporate Secretary at 2701 Navistar Drive, Lisle, Illinois 60532, (ii) signing and returning a new proxy card with a later date, (iii) validly submitting a later-dated vote via the Internet, by scanning your QR code or by telephone on or before 11:59 pm EST on February 13, 2017 or (iv) attending the Annual Meeting and voting in person.  For all methods of voting, the last vote properly cast will supersede all previous votes. |
|    |                          |
|----|--------------------------|
| Q: | Is my vote confidential? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                     |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | Yes. Proxy cards, ballots and voting tabulations that identify stockholders are kept confidential.  There are exceptions for contested proxy solicitations or when necessary to meet legal requirements.  Broadridge Financial Solutions, Inc., the independent proxy tabulator appointed by the Company for the Annual Meeting, will count the votes and act as the inspector of elections for the Annual Meeting. |
|    |                                                       |
|----|-------------------------------------------------------|
| Q: | Will my shares be voted if I do not provide my proxy? |
|    |                                                                                                                                                                                                                                          |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | For stockholders of record:  If you are the stockholder of record and you do not vote by proxy card, by telephone or via the internet or in person at the Annual Meeting, your shares will not be voted at the Annual Meeting. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 11 |

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|    |                                                        |
|----|--------------------------------------------------------|
| Q: | What is the quorum requirement for the Annual Meeting? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | Under the Company’s Third Amended and Restated By-Laws (the ‘‘By-Laws’’), holders of at least one-third of the shares of Common Stock outstanding on the record date must be present in person or represented by proxy in order to constitute a quorum for voting at the Annual Meeting.  Abstentions and broker non-votes are counted as present for purposes of establishing a quorum. |
|    |                                                             |
|----|-------------------------------------------------------------|
| Q: | What vote is necessary for action to be taken on proposals? |
|    |                                  |
|----|----------------------------------|
| A: | It will depend on each proposal. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 resignation to the Nominating and Governance Committee for consideration and recommendation to the Board. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Proposal 2 (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 3 (Say-When-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 plurality 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 the frequency of submission to stockholders of "Say-on-Pay" proposals.  Our Board will review the voting results and take them into consideration when making future decisions regarding the |

|         |                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Proposal 4 (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. |
|    |                        |
|----|------------------------|
| Q: | What is house-holding? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | If you and other residents at your mailing address own shares of Common Stock in street name, your broker or bank may notify you that your household will receive only one annual report and proxy statement for the Company if you hold shares through that broker or bank. In this practice known as ‘‘house-holding,’’ you were deemed to have consented to receiving only one annual report and proxy statement for your household. House-holding benefits both you and the Company |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 12 |

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|    |                                                                                  |
|----|----------------------------------------------------------------------------------|
| Q: | What does it mean if I receive more than one proxy card or more than one Notice? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | Whenever possible, shares of Common Stock, including shares held of record by a participant in any of the Company’s 401(k) or retirement savings plans, for multiple accounts for the same registered stockholder will be combined into the same Notice or proxy card.  Shares with different, even though similar, registered stockholders cannot be combined, and as a result, the stockholder may receive more than one Notice or proxy card.  For example, shares registered in the name of John Doe will not be combined on the same proxy card as shares registered jointly in the name of John Doe and his wife.  Shares held in street name are not combined with shares registered in the name of an individual stockholder or for a participant in any of the Company’s 401(k) or retirement savings plans and may result in the stockholder receiving more than one proxy and/or voting instruction card. For example, shares held in street name by a broker for John Doe will not be combined with shares registered in the name of John Doe. |

|    |                                           |
|----|-------------------------------------------|
| Q: | Who pays for the solicitation of proxies? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | This solicitation is being made by the Company. Accordingly, the Company pays the cost of soliciting proxies.  This solicitation is being made by mail, but also may be made by telephone, e-mail or in person. We have hired Alliance Advisors, LLC (‘‘Alliance Advisors’’) to assist in the solicitation of proxies. Alliance Advisors’ fees for their assistance in the solicitation of proxies are estimated to be $15,000, plus out-of-pocket expenses.  Proxies may also be solicited by our directors, officers and employees who will not receive any additional compensation for those activities.  We will reimburse brokerage firms and other custodians, nominees and fiduciaries for their reasonable out-of-pocket expenses for sending proxy materials to stockholders and obtaining their votes. |
|    |                                                                                                |
|----|------------------------------------------------------------------------------------------------|
| Q: | When are stockholder proposals or nominations due for the 2018 Annual Meeting of Stockholders? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | In order to be included in the Company’s proxy materials for our 2018 annual meeting of stockholders pursuant to SEC Rule 14a-8 under the Exchange Act, any such stockholder proposal must be received by the Company’s Corporate Secretary no later than August 23, 2017.  Any proposal may be included in next year’s proxy statement only if such proposal complies with the Company’s By-Laws and the rules and regulations promulgated by the SEC, specifically Rule 14a-8. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 13 |

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|    |                                                                                                |
|----|------------------------------------------------------------------------------------------------|
| Q: | Are there any matters to be voted on at the Annual Meeting that are not included in the proxy? |
|    |                                                                                                                                                                                                                                 |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | We do not know of any matters to be acted upon at the Annual Meeting other than those discussed in this proxy statement.  If any other matter is properly presented, proxy holders will vote on the matter in their discretion. |
|    |                                                       |
|----|-------------------------------------------------------|
| Q: | May stockholders ask questions at the Annual Meeting? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | Yes. During the Annual Meeting, stockholders may ask questions or make remarks directly related to the matters being voted on.  In order to ensure an orderly meeting, we ask that stockholders direct questions and comments to the Chairman of the meeting.  In order to provide the opportunity to every stockholder who wishes to speak, each stockholder’s remarks will be limited to two minutes. Stockholders may speak a second time only after all other stockholders who wish to speak have had their turn. |
|    |                                                          |
|----|----------------------------------------------------------|
| Q: | How can I find the voting results of the Annual Meeting? |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A: | Preliminary voting results will be announced at the Annual Meeting.  Final voting results will be published in a Current Report on Form 8-K to be filed with the SEC within four business days after the Annual Meeting.  If the official voting results are not available at that time, we will provide preliminary voting results in the Form 8-K and will provide the final voting results in an amendment to the Form 8-K as soon as they become available. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 14 |

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

|                                                 |
|-------------------------------------------------|
|                                                 |  |
|                                            |   |
| Troy A. ClarkeAge: 61Director since: April 2013 | Biographical InformationMr. Clarke has served as President and Chief Executive Officer of Navistar since April 2013.  Prior to this position, Mr. Clarke served as President and Chief Operating Officer of Navistar since August 2012, as President of the Truck and Engine Group of Navistar, Inc. 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.Skills and QualificationsMr. Clarke’s vast experience in the automotive industry over the past 40 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. |

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|  |  |  |
|  | 2017 Proxy Statement | 15 |

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|------------------------------------------------------------------------------------------|
|                                                                                          |  |
|                                                                                     |   |
| Jose Maria Alapont*Age: 66Director since: October 2016Committees: Finance | Biographical InformationMr. Alapont served as President and Chief Executive Officer of Federal-Mogul Corporation, a supplier of automotive powertrain and safety components, from March 2005 to March 2012, and as its Chairman of the Board from 2005 to 2007, and continued to serve as a director of the company until 2013.  He is the former Chief Executive Officer and a director of Fiat Iveco, S.p.A., a leading global manufacturer of commercial trucks and vans, buses, recreational, off-road, firefighting, defense and military vehicles of the Fiat Group, from 2003 to 2005.  Mr. Alapont has held executive, Vice President and President positions for more than 30 years at other leading global vehicle manufacturers and suppliers such as Delphi Corporation, Valeo S.A., and Ford Motor Company.  He is a director of Manitowoc Corporation, a public crane manufacturing company, since March 2016 and Hinduja Automotive Limited, a private commercial truck and bus manufacturer, since November 2014.Skills and QualificationsAs a result of these professional and other experiences, including his experience as a member of other public company boards of directors, Mr. Alapont possesses particular knowledge and experience in a variety of areas, including accounting, corporate governance, distribution, engineering, finance, human resources, manufacturing (domestic and international), marketing, mergers and acquisitions, military and government contracting, purchasing, sales (domestic and international), tax, treasury and union and labor relations, all of which strengthens the Board’s collective knowledge, capabilities and experience. Likewise, his experience and leadership in serving in executive capacities at several different companies within the automotive manufacturing business for more than 30 years well qualifies him to serve on our Board. |

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |
|                                                                        |   |
| Stephen R. D'Arcy*Age: 62Director since: October 2016Committees: Audit | Biographical InformationMr. D'Arcy has been a Partner of Quantum Group LLC, an investment and consulting firm, since 2010.  Previously he worked for PricewaterhouseCoopers LLP., a multinational professional services firm, for 34 years, serving most recently as Global Automotive Leader from 2002 to 2010.  He served on the Board of Directors of Vanguard Health Systems Inc., a company previously listed on the NYSE, from 2011 to 2013 and currently serves as a director of Premier, Inc., a public healthcare improvement company, since October 2013 and Penske Corporation, a private, diversified, on-highway, transportation services company, since 2011.Skills and QualificationsMr. D'Arcy has broad experience as a member of other public and private company boards of directors, including as chairman of an audit committee.  He possesses strong skills and experience in accounting, corporate governance, finance and mergers and acquisitions matters, which well qualifies him to serve on our Board.  |

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|--|
|  |  |  |
|  | 2017 Proxy Statement | 16 |

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|                                                                                                                       |
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|                                                                                                                       |  |
|                                                                                                                  |   |
| Vincent J. Intrieri*Age: 60Director since: October 2012Committees: Finance (Co-Chair) and Nominating & Governance | Biographical InformationMr. Intrieri has been employed by Icahn related entities since October 1998 in various investment related capacities.  Since January 2008, Mr. Intrieri has served as Senior Managing Director of Icahn Capital LP, the entity through which Carl C. Icahn manages private investment funds.  In addition, 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, entities through which Mr. Icahn invests in securities.  Mr. Intrieri has been a director of: Ferrous Resources Limited, a private iron ore mining company with operations in Brazil, since June 2015; Hertz Global Holdings, Inc., a public company engaged in the car rental business, since September 2014; and Transocean Ltd., a public provider of offshore contract drilling services for oil and gas wells, since May 2014. Mr. Intrieri was previously: a director of Chesapeake Energy Corporation, an oil and gas exploration and production company, from June 2012 to September 2016; a director of CVR Refining, LP, an independent downstream energy limited partnership, from September 2012 to September 2014; a director of Forest Laboratories, Inc., a supplier of pharmaceutical products, from June 2013 to June 2014; a director of CVR Energy, Inc., a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries, from May 2012 to May 2014; a director of Federal-Mogul Holdings Corporation, a supplier of automotive powertrain and safety components, from December 2007 to June 2013; a director 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 to September 2012, and was Senior Vice President of Icahn Enterprises L.P. from October 2011 to 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 to September 2012; chairman of the board and a director of PSC Metals Inc., a metal recycling company, from December 2007 to April 2012; a director of Motorola Solutions, Inc., a provider of communication products and services, from January 2011 to March 2012; a director of XO Holdings, a competitive provider of telecom services, from February 2006 to 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 to June 2011; a director of American Railcar Industries, Inc., a railcar manufacturing company, from August 2005 until March 2011, and was a Senior Vice President, the Treasurer and the Secretary of American Railcar Industries from March 2005 to December 2005; a director of WestPoint Home LLC, a home textiles manufacturer, from November 2005 to March 2011; and chairman of the board and a director of Viskase Companies, Inc., a meat casing company, from April 2003 to March 2011.  Ferrous Resources Limited, CVR Refining, CVR Energy, Federal−Mogul, Icahn Enterprises, PSC Metals, XO Holdings, National Energy Group, American Railcar Industries, WestPoint Home and Viskase Companies each are or previously were indirectly controlled by Carl C. Icahn. Mr. Icahn also has or previously had non−controlling interests in Hertz, Transocean, Forest Laboratories, Navistar, Chesapeake Energy, Dynegy and Motorola Solutions.  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. Skills and QualificationsMr. Intrieri 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. |

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|  |  |  |
|  | 2017 Proxy Statement | 17 |

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|                                                                                                                                            |
|--------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                            |  |
|                                                                                                                                       |   |
| General (Retired)  Stanley A. McChrystal*Age: 62Director since: February 2011Committees: Compensation and Nominating & Governance | Biographical InformationGen. 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 focused on a range of technologies and products, 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.Skills and QualificationsAs a former senior military leader, Gen. McChrystal has experience in leadership training and development, 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. |

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|  |  |  |
|  | 2017 Proxy Statement | 18 |

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|--------------------------------------------------------------------------------------------|
|                                                                                            |  |
|                                                                                       |   |
| Samuel J. Merksamer*Age: 36Director since: December 2012Committees: Audit and Compensation | Biographical InformationMr. Merksamer has served as a Managing Director of Icahn Capital LP, the entity through which Carl C. Icahn manages investment funds, since May 2008.  Mr. Merksamer is responsible for identifying, analyzing and monitoring investment opportunities and portfolio companies for Icahn Capital. Mr. Merksamer has been a director of: American International Group, Inc. ("AIG"), a public global insurance organization that provides a range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services worldwide, since May 2016; Cheniere Energy, Inc., a public developer of natural gas liquefaction and export facilities and related pipelines, since August 2015; Hertz Global Holdings, Inc., a public company engaged in the car rental business, since September 2014; Transocean Ltd., a public provider of offshore contract drilling services for oil and gas wells, since May 2013; and Ferrous Resources Limited, a private iron ore mining company with operations in Brazil, since November 2012.  Mr. Merksamer was previously a director of: Transocean Partners, LLC, a holding company with subsidiaries that own and operate ultra-deepwater drilling rigs, from November 2014 to May 2016; Hologic, Inc., a supplier of diagnostic, medical imaging and surgical products, from December 2013 to March 2016; Talisman Energy Inc., an independent oil and gas exploration and production company, from December 2013 to May 2015; CVR Energy, Inc., a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries, from May 2012 to September 2014; CVR Refining, LP, an independent downstream energy limited partnership, from September 2012 to May 2014; Federal-Mogul Holdings Corporation, a 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.  Ferrous Resources Limited, CVR Refining, CVR Energy, Federal−Mogul, American Railcar Industries, Viskase Companies and PSC Metals are each indirectly controlled by Carl C. Icahn.  Mr. Icahn also has or previously had non-controlling interests in AIG, Cheniere, Hertz, Hologic, Talisman, Transocean Partners, Transocean, Navistar, and Dynegy Inc. through the ownership of securities.  Mr. Merksamer received an A.B. in Economics from Cornell University in 2002.Skills and QualificationsMr. 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. |

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|  | 2017 Proxy Statement | 19 |

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|--------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                          |  |
|                                                                                                                     |   |
| Mark H. Rachesky, M.D.*Age: 57Director since: October 2012Committees: Finance (Co-Chair) and Nominating & Governance | Biographical InformationDr. 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 has served 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 and Telesat Canada, a private satellite company, since 2007.  He has also been a member of the board of directors of Titan International, Inc., a public wheel, tire and undercarriage systems and components company, since June 2014, Emisphere Technologies, Inc., a public biopharmaceutical company, since 2005 and Nationshealth, Inc., a medical supply company (which went from a public company to a private company in 2009), from 2005 to June 2014.  He also served as a member and chairman of the board of Leap Wireless International, Inc., a public digital wireless company, from 2004 until its acquisition by AT&T in March 2014.  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.Skills and QualificationsDr. 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 F. Sirignano*Age: 35Director since: March 2014Committees: Audit and Compensation (Chair) | Biographical InformationMr. 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., a value-oriented investment firm, where he 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 the Rothschild & Co. 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.Skills and QualificationsMr. 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. |

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|  | 2017 Proxy Statement | 20 |

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|                                                                          |   |
| Dennis A. Suskind*Age: 74Director since: October 2016Committees: Compensation | Biographical InformationMr. Suskind joined J. Aron & Company in 1961 where he served as Executive Vice President and was responsible for the worldwide precious metals trading operations.  In 1980, Mr. Suskind became a general partner of Goldman Sachs & Company upon its acquisition of J. Aron & Company until his retirement in 1991.  During his tenure in trading metals, Mr. Suskind served as Vice Chairman of NYMEX, Vice Chairman of COMEX, a member of the board of the Futures Industry Association, a member of the Board of International Precious Metals Institute, and a member of the boards of the Gold and Silver Institutes in Washington, D.C.  He has been serving as a director of CME Group, Inc., since August 2008 and Bridge Bancorp Inc. since July 2002.Skills and QualificationsMr. Suskind has broad experience as a member of other public company boards of directors, including as chairman of a risk committee and a governance committee.  He possesses strong skills and experience in accounting, corporate governance, finance, human resources, marketing and mergers and acquisitions matters, which well qualifies him to serve on our Board.  |

|                                                                                     |
|-------------------------------------------------------------------------------------|
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|                                                                                |   |
| Dennis D. Williams* **Age: 63Director since: June 2006Committees: Audit and Finance | Additional Director Who Is Not Elected by the StockholdersBiographical InformationMr. Williams has served as President of the UAW since June, 2014.  Prior to that, Mr. Williams was the UAW’s Secretary, Treasurer and Director, Agricultural Implement and Transnational Departments from June 2010 to June, 2014, UAW Region 4 Director from 2001 to 2010 and 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. |

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|  | 2017 Proxy Statement | 21 |

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Throughout 2016, and as ratified by the Board, upon the recommendation of the Audit Committee, in December 2016, this related-person transaction involves Carl Icahn, a 19.9% stockholder of the Company, and Federal-Mogul Corporation (‘‘Federal-Mogul’’).  Navistar purchased goods and services from Federal-Mogul throughout 2016 that amounted to approximately $14,000,000. 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 an indirect 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. |

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|  | 2017 Proxy Statement | 22 |

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|  | 2017 Proxy Statement | 23 |

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|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| • | 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. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 24 |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |
| Committee Membership (as of December 20, 2016) |
|                                           | Audit | Compensation | Finance | Nominating & Governance |
| Troy A. Clarke                                 |   |   |   |   |
| Jose Maria Alapont                             |   |   | ü |   |
| Stephen R. D'Arcy                              | ü |   |   |   |
| Micahel N. Hammes(1)                           |   |   | ü | ü* |
| Vincent J. Intrieri                            |   |   | ü* | ü |
| James H. Keyes(1)                              | ü* | ü |   |   |
| Stanley A. McChrystal                          |   | ü |   | ü |
| Samuel J. Merksamer                            | ü | ü |   |   |
| Mark H. Rachesky                               |   |   | ü* | ü |
| Michael F. Sirignano                           | ü | ü* |   |   |
| Dennis A. Suskind                              |   | ü |   |   |
| Dennis D. Williams                             | ü |   | ü |   |

|   |                                                                                                                  |
|---|------------------------------------------------------------------------------------------------------------------|
| * | Indicates the chair of the committee. Mr. Intrieri and Mr. Rachesky serve as co-chairs of the Finance Committee. |

|           |                                                                                                                                                                                                                                                                   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | Announced their retirement from the Board, effective upon the earlier to occur of (i) the completion of the Share Issuance to VW T&B or (ii) the Annual Meeting.  As such, neither Mr. Hammes nor Mr. Keyes will stand for re-election at the Annual Meeting. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 25 |

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|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 26 |

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|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |  |  |
| Via the Navistar Business Abuse and Compliance Hotline                 | Write to the Audit Committee | E-mail the Audit Committee |
| 1-877-734-2548 or via the Internet at https://iwf.tnwgrc.com/navistar/ | Audit Committee c/o Corporate Secretary Navistar International Corporation 2701 Navistar Drive Lisle, Illinois 60532 | Audit.committee@navistar.com |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 27 |

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

|                                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------------|
|                                                                                                                       |  |  |
| Name and Address                                                                                                      | Total Amount and  Nature of Beneficial  Ownership | Percent of  Class(A) |
| Carl C. Icahn  c/o Icahn Associates Corp.,  767 Fifth Avenue, Suite 4700  New York, NY 10153 | 16,272,524(B) | 19.9% |
| Mark H. Rachesky, M.D. 40 West 57th Street, 24th floor  New York, NY 10019                                  | 16,264,104(C) | 19.9% |
| Franklin Resources, Inc.  One Franklin Parkway  San Mateo, CA 94403-1906                               | 15,268,623(D) | 18.7% |
| GAMCO Investors, Inc. et. al.  One Corporate Center  Rye, NY 10580-1435                                | 10,033,832(E) | 12.3% |
| Hotchkis & Wiley Capital Management LLC  725 South Figueroa Street, 39th Floor  Los Angeles, CA 90017             | 5,798,651(F) | 7.1% |

|     |                                                                                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------|
| (A) | Applicable percentage ownership is based upon 81,710,420 shares of Common Stock outstanding as of December 19, 2016. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | As reported in Amendment No. 17 to the Schedule 13D, as filed with the SEC on December 17, 2014, as further amended by Amendments No. 18 and 19 as filed with the SEC through September 6, 2016, 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 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 3,254,504 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 5,287,439 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; and Icahn Partners has sole voting power and sole dispositive power with regard to 7,730,581 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. Barberry is the sole member of Hopper, which is the general partner of High River. Icahn Offshore is the general partner of Icahn Master. Icahn Onshore is the general partner of Icahn Partners. Icahn Capital is the general partner of each of Icahn Offshore and Icahn Onshore. Icahn Enterprises Holdings is the sole member of IPH, which is the general partner of Icahn Capital. Beckton is the sole stockholder of Icahn Enterprises GP, which is the general partner of Icahn Enterprises Holdings. Mr. Icahn is the sole stockholder of each of Barberry and Beckton. As such, Mr. Icahn is in a position indirectly to determine the investment and voting decisions made by each of the Icahn Reporting Persons. In addition, Mr. Icahn is the indirect holder of approximately 92.6% of the outstanding depositary units representing limited partnership interests in Icahn Enterprises L.P. (‘‘Icahn Enterprises’’). Icahn Enterprises GP is the general partner of Icahn Enterprises, which is the sole limited partner of Icahn Enterprises Holdings. See the Schedule 13D/A filed by the Icahn Reporting Persons for certain disclaimers of beneficial ownership. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | As reported in a Schedule 13D/A filed with the SEC on September 22, 2016 by MHR Institutional Partners III LP, MHR Institutional Advisors III LLC, MHR Fund Management LLC, MHR Holdings LLC and Mark H. Rachesky, M.D. (collectively, the ‘‘MHR Reporting Persons’’).  The MHR Reporting Persons reported the following: MHR Institutional Partners III LP and MHR Institutional Advisors III LLC each has sole voting and dispositive power over 14,980,528 shares of Common Stock. MHR Fund Management LLC and MHR Holdings LLC each has sole voting and dispositive power over 16,225,000 shares of Common Stock. Dr. Rachesky has sole voting and dispositive power over 16,264,104 shares of Common Stock, which includes (i) 16,225,000 shares of Common Stock beneficially owned by Dr. Rachesky as the managing member of MHR Advisors LLC, MHR Institutional Advisors III LLC and MHR Holdings LLC; (ii) 15,532 shares of Common Stock held directly by Dr. Rachesky; (iii) 3,572 shares of Common Stock that may be obtained upon settlement of phantom stock units granted to Dr. Rachesky in his capacity as a director; and (iv) options to purchase 20,000 shares of Common Stock granted to Dr. Rachesky in his capacity as a director. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (D) | As reported in Schedule 13G/A filed with the SEC on February 9, 2016 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. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 28 |

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|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (E) | As reported in a Schedule 13D/A filed with the SEC on March 24, 2015, by Gabelli Funds, LLC, GAMCO Asset Management, Inc., Teton Advisors, Inc., Gabelli Securities, Inc., Gabelli Foundation, Inc., MJG Associates, Inc., MJG-IV Limited Partnership, GGCP, Inc., GAMCO Investors, 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 3,370,553 shares of Common Stock, GAMCO Asset Management Inc. has sole voting power with regard to 5,966,979 shares of Common Stock and sole dispositive power with regard to 6,503,979 shares of Common Stock, Teton Advisers, Inc. has sole voting and dispositive power with regard to 5,000 shares of Common Stock, Gabelli Securities, Inc. has sole voting and dispositive power with regard to 9,500 shares of Common Stock, Gabelli Foundation, Inc. has sole voting and dispositive power with regard to 10,000 shares of Common Stock, MJG Associates, Inc. has sole voting and dispositive power with regard to 6,500 shares of Common Stock, MJG-IV Limited Partnership has sole voting and dispositive power with regard to 2,000 shares of Common Stock, GGCP, Inc. has sole voting and dispositive power with regard to 16,000 shares of Common Stock, GAMCO Investors, Inc. has sole voting and dispositive power with regard to 8,800 shares of Common Stock, and Mario J. Gabelli has sole voting and dispositive power with regard to 101,500 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.  Gabelli Securities, Inc. is deemed to have beneficial ownership of the Common Stock owned beneficially by G. research, Inc.  GAMCO Investors, Inc. and GGCP, Inc. are deemed to have beneficial ownership of the shares of Common Stock owned beneficially by each of the Gabelli Reporting Persons other than Mr. Gabelli and Gabelli Foundation, Inc.  See the Schedule 13D/A filed by the Gabelli Reporting Persons for certain disclaimers of beneficial ownership. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (F) | As reported in a Schedule 13G/A filed with the SEC on October 11, 2016, by Hotchkis & Wiley Capital Management, LLC and Hotchkis and Wiley Mid-Cap Value Fund (collectively, the ‘‘Hotchkis & Wiley Reporting Persons’’). The Hotchkis & Wiley Reporting Persons reported the following: Hotchkis & Wiley Capital Management, LLC has sole voting power over 5,501,075 shares of Common Stock and has sole dispositive power over 5,798,651 shares of Common Stock and Hotchkis and Wiley Mid-Cap Value Fund has sole voting and dispositive power over 2,987,500 shares of Common Stock. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 29 |

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

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |
| Name/Group                                                      | Owned(A) | Number of DSUs, PSUs or RSUs Convertible into Common Stock(B) | Obtainable Through Stock Option Exercise | Total |   | Percent of Class |
| Jose Maria Alapont - Director                                   | — |  | — |  | — |  | — |  |   | * |
| Walter G. Borst - EVP & CFO                                 | 33,014 |  | 10,366 |  | 58,789 |  | 102,169 |  |   | * |
| Troy A. Clarke - Director/President & CEO                   | 54,100 |  | 6,113 |  | 905,242 |  | 965,455 |  |   | 1.2 |
| Steven K. Covey - SVP & General Counsel                     | 28,883 |  | 3,601 |  | 114,301 |  | 146,785 |  |   | * |
| Stephen R. D'Arcy - Director                                    | — |  | — |  | — |  | — |  |   | * |
| Michael N. Hammes - Director                                    | 5,261 |  | — |  | 30,400 |  | 35,661 |  |   | * |
| Vincent J. Intrieri - Director                                  | 592 |  | 3,507 |  | 15,000 |  | 19,099 |  |   | * |
| James H. Keyes - Director                                       | 6,282 |  | 16,424 |  | 31,600 |  | 54,306 |  |   | * |
| William R. Kozek - President, Truck & Parts                 | 2,625 |  | — |  | 27,045 |  | 29,670 |  |   | * |
| Persio V. Lisboa - President, Operations                        | 3,289 |  | 2,790 |  | 44,650 |  | 50,729 |  |   | * |
| Stanley A. McChrystal - Director                                | 1,508 |  | 26,052 |  | 20,000 |  | 47,560 |  |   | * |
| Samuel J. Merksamer - Director                                  | 592 |  | 2,860 |  | 15,000 |  | 18,452 |  |   | * |
| Mark H. Rachesky(C) - Director                             | 16,240,532 |  | 4,937 |  | 15,000 |  | 16,260,469 |  |   | 19.9 |
| Michael Sirignano - Director                                    | 11,128 |  | 6,795 |  | 5,000 |  | 22,923 |  |   | * |
| Dennis A. Suskind - Director                                    | — |  | — |  | — |  | — |  |   | * |
| Dennis D. Williams(D) - Director                                | — |  | — |  | — |  | — |  |   | * |
| All Directors and Executive Officers as a Group (19 persons)(E) | 16,402,491 |  | 85,126 |  | 1,305,098 |  | 17,792,715 |  |   | 21.8 |

|   |                                                                      |
|---|----------------------------------------------------------------------|
| * | 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 November 30, 2016, 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 various Form 4’s filed with the SEC during 2016 by MHR Institutional Partners III LP, MHR Institutional Advisors III LLC, MHR Fund Management LLC, MHR Holdings LLC and Dr. Rachesky. See also Footnote C 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 Section 16 Officers as a group. |

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|  |  |  |
|  | 2017 Proxy Statement | 30 |

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|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 31 |

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|                                                            |
|------------------------------------------------------------|
|                                                            |
| PROPOSAL 2 — ADVISORY VOTE ON EXECUTIVE COMPENSATION |

|         |                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------|
| • | The 2014 Long Term Incentives ("LTI") performance targets for awards granted to the NEOs and the CEO were not met. |

|         |                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The 2015 LTI performance targets for awards granted to NEOs (excluding the CEO) are not likely to be met for 50% of the grant and are projected to be met at threshold for the remaining 50% of the grant. |

|         |                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The 2016 LTI performance targets for performance-based awards granted to each NEO (including the CEO), which were 50% of the total 2016 LTI grant to each NEO are projected to be near threshold. |

|         |                                                                                          |
|---------|------------------------------------------------------------------------------------------|
| • | The 2016 AI awards will be paid out at 44% of target percentage due to our achievements. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 32 |

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

|                                |
|--------------------------------|
|                                |  |
| The Compensation Committee     | Independent Board members  (non-Compensation Committee members) |
| Michael F. Sirignano, Chairman | Jose Maria Alapont |
| James H. Keyes                 | Stephen R. D'Arcy |
| Stanley A. McChrystal          | Michael N. Hammes |
| Samuel J. Merksamer            | Vincent J. Intrieri |
| Dennis A. Suskind              | Mark H. Rachesky |
|                           | Dennis D. Williams |

|                  |
|------------------|
|                  |  |
| NEO              | Title |
| Troy A. Clarke   | President and Chief Executive Officer |
| Walter G. Borst  | Executive Vice President and Chief Financial Officer |
| William R. Kozek | President, Truck and Parts |
| Persio V. Lisboa | President, Operations |
| Steven K. Covey  | Senior Vice President and General Counsel |

|                                           |
|-------------------------------------------|
|                                           |  |
| Executive Summary                         | 34 |
| Compensation Philosophy and Objectives    | 35 |
| Detailed Review of Executive Compensation | 37 |
| Executive Compensation Tables             | 48 |
| Compensation Risk                         | 65 |
| Compensation of Directors                 | 66 |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 33 |

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|         |                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our NEOs, excluding our CEO, received performance base salary increases which averaged 4%. Some of our NEOs had not received a salary increase since 2014. Our CEO received a base salary increase at the time of his employment agreement renewal in April 2016. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We approved revisions to our AI plan under which AI awards will be paid out at percentages based on our achievement of performance goals including Earnings Before Interest and Taxes ("EBIT"), Market Share, Cost, Cash and Quality. We added a key design feature including an adjusted EBITDA multiplier which scales the annual incentive up or down from the target level based upon actual financial performance of Navistar. For 2017, AI performance goals, as selected by our Compensation Committee, will include EBIT, Market Share, Cost and Liquidity. |

|         |                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------|
| • | Based on 2016 results of our AI performance measures, 2016 AI awards will be paid at 44% of target. |

|         |                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Company approved 2016 LTI awards for each executive based on an assessment of such executive's performance and scope of the executive's role. |

|         |                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Based on 2016 results, 50% of the 2016 LTI awards based on performance measures are projected to be near threshold. Since 2016 is the first year of a three-year performance cycle, actual award payouts will not be known until after 2018.   |

|         |                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Maintained our clawback policy, 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; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Maintained certain revisions to our Executive Severance Agreement template for 2014 and going forward, including, but not limited to: (i) reducing the duration of the agreement post-Change in Control (‘‘CIC’’); (ii) modifying the definition of CIC; (iii) reducing the duration of the post-CIC period and (iv) including the Company’s ability to recoup incentive pay under the Company’s clawback policy; and |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 34 |

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|         |                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------|
| • | Continued to exclude pro-rata bonus from the calculation of any pension/retirement benefit under our Executive Severance Agreements. |

|                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                |  |
|                                                                                                                                                                           |   |
| What We Do                                                                                                                                                                     | What We Don't Do |
| We use multiple performance measures in our short-term and long-term incentive plans. These performance measures link pay to performance and stockholder interests.            | The Company maintains policies that eliminate all tax gross-ups for perquisites and other similar benefits to Section 16 Officers, and prohibit tax gross-ups for any cash or equity awards for all employees. |
| The Compensation Committee reviews external market data when making compensation decisions.                                                                                    | We do not reprice stock options. |
| The Compensation Committee selects and engages its own independent advisor, Pay Governance, LLC.                                                                               | We have an anti-hedging policy, whereby employees and directors are prohibited from trading in puts, calls, options or other similar securities related to our common stock. We also restrict short selling, pledges and margin accounts used by executive officers and directors. |
| We maintain a clawback policy to recoup incentive-based compensation in the event of an accounting restatement.                                                                | We do not accelerate the vesting of long-term incentive awards, except in certain situations upon death. |
| Change in Control severance benefits are payable only upon a Change in Control (also referred to throughout as "CIC") with termination of employment ("double trigger").       | We do not grant extra pension service with the exception of CIC as outlined in our Executive Severance Agreements. |
| All officers are subject to stock ownership requirements, ranging from 6x base pay for the CEO to 3x base pay for other senior executives - including a retention requirement. |   |
| Directors are expected to own shares having a value equivalent to 3x their annual cash retainer.                                                                               |   |

|         |                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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:  A substantial portion of each named NEO's compensation is performance-based with a direct link to Company as well as individual performance. It is designed to align the interests of executives and stockholders. |

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

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 35 |

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|         |                                                    |
|---------|----------------------------------------------------|
| • | The 2014 LTI performance targets were not met. |

|         |                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The 2015 LTI performance targets are not likely to be met for 50% of the grant and are projected to be met at threshold for the remaining 50% of the grant. |

|         |                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------|
| • | The 2016 LTI performance targets are projected to be near threshold for the performance-based portion of the award. |

|                                    |
|------------------------------------|
|                                    |  |  |  |
|                               |   | Performance Options | Performance ShareUnits |
| FY2014                             | Exercise Price/Closing Price on Grant | $35.09 |
| Stock Price as of October 31, 2016 | $22.30 |
| % Equity Award                     | 50% | 50% |
| Operating Cash Flow Met?           | Not Met | N/A |
| Adjusted EBITDA Margin Met?        | N/A | Not Met |
|                               |   |   |
| FY2015                             | Exercise Price/Closing Price on Grant | $27.67 |
| Stock Price as of October 31, 2016 | $22.30 |
| % Equity Award                     | 50% | 50% |
| Adjusted EBITDA Margin Met?        | Near Threshold | Near Threshold |
| Revenue Growth Met?                | Not Likely | Not Likely |
|                               |   |
|                               |   | Performance Cash Plan | Time-Based RSUs |
| FY2016                             | Exercise Price/Closing Price on Grant | $7.17 |
| Stock Price as of October 31, 2016 | $22.30 |
| % of Equity Award                  | 50% | 50% |
| Adjusted EBITDA Met?               | Near Threshold | N/A |
| Market Share Met?                  | Not Likely | N/A |

|         |                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 50% performance-based LTI awards for the NEOs  and the CEO, with grant sizes adjusted based on the  performance of the individual and their scope within the organization. |

|         |                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------|
| • | An AI program designed to align with key Company performance targets which resulted in a payout at 44% of target. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 36 |

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|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 37 |

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

|         |                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Advise the Compensation Committee on market trends, regulatory issues and developments and how these 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 CEO pay; |

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

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

|         |                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Included in Navistar’s primary Global Industry Classification Standard (GICS®) sub-industry (Construction & Farm Machinery & Heavy Trucks — 20106010); |

|         |                   |
|---------|-------------------|
| • | Midwest location; |

|         |                                         |
|---------|-----------------------------------------|
| • | Names Navistar as a peer group company; |

|         |                            |
|---------|----------------------------|
| • | Similar gross margins; and |

|         |                                                    |
|---------|----------------------------------------------------|
| • | Was included in the prior year’s peer group. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 38 |

----

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |
| Company Name        | Trailing 4Q Net Revenue  ($ mil.) | Latest Quarter Total Assets  ($ mil.) | 9/30/16 Enterprise Value ($ mil.) | Composite Percentile Rank |
| PACCAR              | $ | 17,318 |  | $ | 20,969 |  | $ | 27,579 |  | 95% |
| Illinois Tool Works | $ | 17,772 |  | $ | 15,136 |  | $ | 24,537 |  | 88% |
| Cummins             | $ | 13,475 |  | $ | 15,709 |  | $ | 49,338 |  | 86% |
| Delphi              | $ | 16,227 |  | $ | 12,122 |  | $ | 21,382 |  | 81% |
| Goodyear            | $ | 15,480 |  | $ | 17,143 |  | $ | 13,292 |  | 79% |
| Textron             | $ | 13,886 |  | $ | 15,167 |  | $ | 15,671 |  | 77% |
| Lear                | $ | 11,235 |  | $ | 11,971 |  | $ | 19,645 |  | 70% |
| Parker-Hannifin     | $ | 18,639 |  | $ | 10,277 |  | $ | 9,836 |  | 72% |
| Dover               | $ | 6,711 |  | $ | 9,298 |  | $ | 13,893 |  | 54% |
| BorgWarner          | $ | 8,935 |  | $ | 9,007 |  | $ | 9,760 |  | 51% |
| Masco               | $ | 7,313 |  | $ | 5,373 |  | $ | 12,353 |  | 46% |
|  Navistar      | $ | 8,536 |  | $ | 5,719 |  | $ | 6,941 |  | 44% |
| AGCO                | $ | 7,276 |  | $ | 7,541 |  | $ | 6,237 |  | 40% |
| Trinity Industries  | $ | 5,032 |  | $ | 9,136 |  | $ | 6,890 |  | 37% |
| Tenneco             | $ | 8,475 |  | $ | 4,406 |  | $ | 4,430 |  | 30% |
| Terex               | $ | 6,157 |  | $ | 5,569 |  | $ | 4,683 |  | 30% |
| Oshkosh             | $ | 6,279 |  | $ | 4,514 |  | $ | 5,737 |  | 28% |
| Dana Inc.           | $ | 5,754 |  | $ | 4,613 |  | $ | 3,338 |  | 19% |
| Joy Global          | $ | 2,580 |  | $ | 3,433 |  | $ | 3,575 |  | 10% |
| Visteon             | $ | 3,154 |  | $ | 2,373 |  | $ | 2,343 |  | 7% |
| SPX                 | $ | 1,697 |  | $ | 1,990 |  | $ | 1,304 |  | 0% |
| 75th Percentile     | $ | 14,285 |  | $ | 12,876 |  | $ | 15,027 |  |   |
| Mean                | $ | 9,751 |  | $ | 9,292 |  | $ | 12,353 |  |
| Median              | $ | 7,894 |  | $ | 9,071 |  | $ | 9,548 |  |
| 25th Percentile     | $ | 6,057 |  | $ | 4,588 |  | $ | 4,392 |  |
| Navistar Rank       | 53 | % | 37 | % | 42 | % |

|         |                                                                                               |
|---------|-----------------------------------------------------------------------------------------------|
| — | All financial and market data are taken from Standard & Poor’s Capital IQ database. |

|         |                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------|
| — | SPX split into two companies during 2016, SPX Corp. and SPX Flow. The data provided is for SPX Corp. |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| — | All data shown as reviewed by the Compensation Committee at the time of the peer group approval. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 39 |

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |
| Pay Element                                                        | What it Does | Performance Measures |
| Base Salary                                                        | Provides competitive base salary, typically reviewed annually, balances risk-taking concerns with stockholder interests | Job scope, experience, performance and market data |
| Short-term Annual Incentive or AI                                  | Provides a competitive incentive opportunity, aligns individual, business unit and company performance | The goals established for 2016 include market share, cost, EBIT, cash and quality |
| Long-Term Equity Incentives or LTI (including stock option grants) | Aligns executive and stockholder interests by tying compensation to share price appreciation, builds long-term stockholder value, cultivates stock ownership | 2016 LTI awards were adjusted for each executive based upon an evaluation of both individual performance in addition to the scope of the position within the organization |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 40 |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |  |  |
| Pay Element                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Contractual Terms |
| Annual Base Salary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | $1,000,000 |
| Short-term Annual Incentive or AI(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Target AI of 125% of Base Salary                                               Maximum AI of 250% of Base Salary |
| Long-Term Incentive(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Value of $4,463,667 in 2016                                                            Eligible to participate in such grants in future years |
| Total Direct Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $6,028,667 |
| Other Benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Eligible to participate in the Company plans, policies, perquisites and arrangements that are applicable to other senior officers of the Company, including life insurance equal to five times base salary and  vacation equal to four weeks |
| Severance Provisions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | In the event that Mr. Clarke's employment is terminated without Cause or due to constructive termination other than in connection with a CIC, he would receive severance of: (i) two times Mr. Clarke's base salary plus target AI award, (ii) a pro-rated portion of the AI award that would have been paid to Mr. Clarke had he remained employed at the time such payments are made to the employees generally, (iii) 12 months continued health care coverage with an option to purchase an additional 12 months at the cost of coverage rate, and (iv) continued life insurance for 24 months after termination. |
| In the event that Mr. Clarke's employment is terminated without Cause or due to constructive termination within either 90 days prior to a CIC or within 24 months after a CIC, he would receive severance of: (i) two times Mr. Clarke's base salary plus target AI award, (ii) a pro-rated portion of the target AI award, (iii) 12 months continued health care coverage with an option to purchase an additional 12 months at the cost of coverage rate, and (iv) continued life insurance for 24 months after termination. |

|     |                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------|
| (1) | No AI paid for 2014; 85% of target for 2015; 44% of target for 2016 (actual calculation 43.8%). |

|     |                                                                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Mr. Clarke was granted long-term incentive awards effective with the renewal of his Employment Agreement in April 2016; stock-settled RSUs and a performance based restricted cash unit award. |

|         |
|---------|
|         |  |
| • | The VW T&B alliance and GM commercial relationships |
| • | The successful launch of new products and quality improvements |
| • | The continued growth of OnCommand Connection |
| • | Continued cost reductions |
| • | Senior leadership growth and development |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 41 |

----

|         |
|---------|
|         |  |
| • | Close and implement the VW T&B alliance |
| • | Improve the Company's financial performance |
| • | Successful product launches and quality improvements |
| • | Continued cost reductions |
| • | Continued senior leadership growth and development |

|         |                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The CEO makes base salary recommendations for the NEOs and most Section 16 Officers to the Compensation Committee. The CEO does not recommend nor is he involved in decisions regarding his own compensation. |

|         |                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Compensation Committee reviews the salary for the CEO and reviews, approves and/or adjusts the CEO’s base salary recommendations for the other NEOs and Section 16 Officers included in the CEO's recommendation. |

|         |                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Compensation Committee then recommends, and the independent members of the Board approve or adjust, the salary recommendation for the CEO. |

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |
| NEO                 | Current Base Salary | Effective Date | Previous  Base Salary | Effective Date |
| Troy A. Clarke(1)   | $ | 1,000,000 |  | April 27, 2016 | $ | 900,000 |  | April 15, 2013 |
| Walter G. Borst(2)  | $ | 749,840 |  | February 1, 2016 | $ | 721,000 |  | February 11, 2015 |
| William R. Kozek(2) | $ | 598,000 |  | February 1, 2016 | $ | 575,000 |  | November 6, 2014 |
| Persio V. Lisboa(2) | $ | 551,250 |  | February 1, 2016 | $ | 525,000 |  | November 6, 2014 |
| Steven K. Covey(2)  | $ | 615,940 |  | February 1, 2016 | $ | 598,000 |  | February 11, 2015 |

|     |                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------|
| (1) | Mr. Clarke received a base salary increase upon renewal of his Employment Agreement in April 2016. |

|     |                                                                                      |
|-----|--------------------------------------------------------------------------------------|
| (2) | Base salary increase due to an evaluation of performance effective February 1, 2016. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 42 |

----

|         |                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|
| • | Each AI financial performance metric is independent. Eligibility for payout is based on the attainment of each individual metric. |

|         |                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We added two design features; an adjusted EBITDA multiplier which scales the annual incentive up or down from the target level based upon actual financial performance of Navistar, and an individual performance factor. |

|         |                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We continued to leverage our AI scorecard using multiple performance metrics. This allowed the transparency and flexibility for NEOs to see how their individual achievements contribute to the overall effort and success of the Company. |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |
| 2016 Performance Goal %                       | Target Allocation | % Allocation | Level Achieved |
| EBIT — 20%                              | Truck EBIT | 10% | Below Threshold |
| Parts EBIT                                    | 10% | Between Threshold & Target |
| Market Share — 30%                      | Heavy | 10% | Below Threshold |
| Medium                                        | 10% | Below Threshold |
| Bus                                           | 5% | Below Threshold |
| Severe Service                                | 5% | Below Threshold |
| Cost — 25%                              | Material Year Over Year | 10% | Between Target & Distinguished |
| Manufacturing Year Over Year                  | 5% | Between Target & Distinguished |
| Structural Costs (excluding Annual Incentive) | 10% | Distinguished |
| Cash — 15%                              | Working Capital (excluding Used Truck Inventory) | 5% | Distinguished |
|  Gross Used Truck Inventory              | 10% | Between Threshold & Target |
| Quality - 10%                                 |  Warranty Cash Spend | 10% | Distinguished |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 43 |

----

|                         |
|-------------------------|
|                         |  |  |  |  |
| Named Executive Officer | Target as %  of Base Salary | 2016 AI Amount  Earned |
| Troy A. Clarke          | 125% | $ | 547,500 |  |
| Walter G. Borst         | 75% | $ | 246,322 |  |
| William R. Kozek        | 75% | $ | 196,443 |  |
| Persio V. Lisboa        | 75% | $ | 181,086 |  |
| Steven K. Covey         | 65% | $ | 175,358 |  |

|                       |
|-----------------------|
|                       |  |  |  |
| 2017 Performance Goal | Goal % | Metric | Target |
| EBIT                  | 10% | Parts EBIT | FY2016 Actual +$25M |
| Market Share          | 30% | Weighted Average Market Share | FY2016 Actual +0.5% |
| Cost                  | 30% | Total Cost Reduction | FY2016 Actual -$50M |
| Liquidity             | 30% | Free Cash Flow | FY2016 Actual +$50M |

|         |                                                                                            |
|---------|--------------------------------------------------------------------------------------------|
| • | Continuing the use of the adjusted EBITDA multiplier and an individual performance factor; |

|         |                                     |
|---------|-------------------------------------|
| • | Streamlining the number of metrics; |

|         |                                |
|---------|--------------------------------|
| • | Adding a liquidity metric; and |

|         |                                        |
|---------|----------------------------------------|
| • | A focus on year-over-year improvement. |

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

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

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

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 44 |

----

|        |
|--------|
|        |  |  |  |  |  |
|   | 2016 LTI Plan | Vesting | Performance Measures | Goals | Performance Vesting Criteria |
|   | Performance-Based RCUs(1)  | 3 year cliff | Adjusted EBITDA     (35%) | (1) 2016 - $600M            (2) 2017 - $650M            (3) 2018 - $750M           (4) Cumulative - $2,000M | Based on the Company's annual and cumulative EBITDA goals:                                   Goal 1/4 met - payout of 17.5%                          Goal 2/4 met - payout of 35%                             Goal 3/4 met - payout of 52.5%                           Goal 4/4 met - payout of 70% |
|   | Market Share (15%) | (1) 2016 - 17%               (2) 2017 - 18%                (3) 2018 - 19%               (4) Cumulative - 18% | Based on the Company's annual and average market share goals:                          Goal 1/4 met - payout of 7.5%            Goal 2/4 met - payout of 15%                 Goal 3/4 met - payout of 22.5%               Goal 4/4 met - payout of 30% |
|   | Time-Based Restricted Stock Units(2) | Ratably over 3 years | N/A | N/A | N/A |
|   |

|                     |
|---------------------|
|                     |  |  |  |
| NEO                 | Restricted Stock Units | Performance-Based RCUs | Targeted Economic  Value |
| Troy A. Clarke(1)   | 139,366 | $2,500,000 | $4,463,667 |
| Walter G. Borst(2)  | 75,000 | $1,050,000 | $2,100,000 |
| William R. Kozek(2) | 50,000 | $700,000 | $1,400,000 |
| Persio V. Lisboa(2) | 50,000 | $700,000 | $1,400,000 |
| Steven K. Covey(2)  | 35,714 | $500,000 | $1,000,000 |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 45 |

----

|                  |
|------------------|
|                  |  |  |  |  |  |  |  |  |
| NEO              | Life Insurance(1) | Executive Flexible Perquisite Program(2) | Pension/Retirement/401(k) Plans(3) | Retiree Medical Benefits and Retiree Life Benefits(4) |
| RPSE             | MRO | RAP | SRAP | SERP |
| Troy A. Clarke   | • | • |  |  | • | • | • |  |
| Walter G. Borst  | • | • |  |  | • | • | • |  |
| William R. Kozek | • | • |  |  | • | • | • |  |
| Persio V. Lisboa | • | • |  |  | • | • | • |  |
| Steven K. Covey  | • | • | • | • | • | • | • | • |

|     |                                                                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Life Insurance. We provide our executives Company-paid life insurance equal to five times base salary. The beneficiary of each individual policy is as designated by the executive. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Executive Flexible Perquisites. This provides a cash stipend to each of our NEOs, the amount of which varies by executive, based upon the executive’s organization level. In certain circumstances, where a commercial flight is not available to meet an NEOs travel schedule, our NEOs and directors are authorized to use chartered aircraft for business purposes only. In 2016 for business purposes only, Troy Clarke used a chartered flight, which included himself and 4 other non-NEO business associates. On a separate occasion in 2016, Troy Clarke and Walter Borst used a chartered flight for business purposes.  Although our NEOs used chartered flights for business purposes only, no income was imputed and no spouse or dependent accompanied them on these flights.   A spouse may accompany an NEO while he is traveling on Company business. Although this occurs on a limited basis, the spouse’s travel expense is included in taxable compensation of the NEO. |

|                         |
|-------------------------|
|                         |  |
| Named Executive Officer | Annual Flexible Perquisite Payment ($) |
| Troy A. Clarke          | 46,000 |
| Walter G. Borst         | 37,000 |
| William R. Kozek        | 37,000 |
| Persio V. Lisboa        | 37,000 |
| Steven K. Covey         | 28,000 |

|     |                                 |
|-----|---------------------------------|
| (3) | 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 ("IRC") 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 IRC 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. |

|         |                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Effective January 1, 2014, Mr. Covey is eligible for the SRAP. Accruals under the MRO were frozen as of December 31, 2013. Future benefits will accrue under the SRAP. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | 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 all of our NEOs other than Mr. Covey, are not eligible for retiree medical benefits or retiree life insurance coverage under the 1993 settlement agreement or any other program. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 46 |

----

|         |                                                                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A requirement that an executive 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 and; |

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

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 47 |

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |  |  |
| Name and Principal  Position                               | Year | Salary ($) | Bonus ($) | Stock Awards ($)(1) | Option Awards        ($)(2) | Non-Equity Incentive Plan Comp ($)(3) | Change in Pension Value & Non- Qualified Deferred  Comp Earnings ($)(4) | All Other Comp ($)(5) | Total ($) |
| Troy A. Clarke President and Chief Executive Officer                 | 2016 | 950,000 | — | 1,963,667 | — | 547,500 | 1,299,928 | 134,758 | 4,895,853 |
| 2015                                                                      | 900,000 | — | — | — | 688,500 | 334,546 | 159,605 | 2,082,651 |
| 2014                                                                      | 900,000 | — | — | 3,607,507 | — | 721,284 | 134,428 | 5,363,219 |
| Walter G. Borst Executive Vice President and Chief Financial Officer | 2016 | 742,630 | — | 537,750 | — | 246,322 | 77,855 | 135,564 | 1,740,121 |
| 2015                                                                      | 715,750 | — | 1,049,994 | 1,052,996 | 459,638 | 219,993 | 141,668 | 3,640,039 |
| 2014                                                                      | 700,000 | 425,000 | 1,150,005 | 1,134,158 | 525,000 | 991,008 | 117,320 | 5,042,491 |
| William R. Kozek President, Truck and Parts                          | 2016 | 592,250 | — | 358,500 | — | 196,443 | 238,079 | 87,992 | 1,473,264 |
| 2015                                                                      | 575,000 | — | 699,996 | 701,998 | 366,563 | 570 | 107,830 | 2,451,957 |
| Persio V. Lisboa President, Operations                                    | 2016 | 544,688 | — | 358,500 | — | 181,086 | 424,669 | 84,758 | 1,593,701 |
| 2015                                                                      | 525,000 | — | 699,996 | 701,998 | 334,688 | 179,996 | 76,331 | 2,518,009 |
| Steven K. Covey Senior Vice President and General Counsel                 | 2016 | 611,455 | — | 256,069 | — | 175,358 | 144,319 | 85,644 | 1,272,845 |
| 2015                                                                      | 592,250 | — | 499,996 | 501,431 | 330,395 | 438 | 94,027 | 2,018,537 |
| 2014                                                                      | 575,000 | — | 399,991 | 394,487 | — | 122,704 | 61,741 | 1,553,923 |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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. These amounts may not be paid to or realized by the officer. The fair values of stock-based awards are estimated using the closing price of our stock on the grant date. Stock-based awards settle in common stock on a one-for-one basis, or the cash equivalent of the common stock.  The grant date fair values of each individual stock based award in 2016 are set forth in the 2016 Grant of Plan Based Awards table on page 49.  Additional information about these values is included in Note 18 to our audited financial statements included in our Form 10-K for 2016. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The amounts reported in this column reflect the aggregate fair value of performance stock options, granted in the year computed in accordance with FASB ASC Topic 718, except that in compliance with SEC requirements, we reported the value at the grant date based upon the probable outcome of such conditions. These amounts may not be paid to or realized by the officer. Assumptions used in the calculation of these values are included in Notes to our audited financial statements included in our Form 10-K for  the respective year in which the options were granted. All of our NEOs, except for Mr. Clarke, received performance stock options in February 2015 which were evenly divided between Revenue Growth Performance targets and EBITDA Margin Performance goals and vest three years from the date of grant if certain EBITDA Margin and Revenue Growth targets over a three year period are met. The grant date fair value amounts for these awards assumed the highest level of performance condition would be met. |

|     |                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | The amounts reported in this column represent the 2016 AI plan award payment based on an actual payout at 43.8% of target.  Awards are projected to be paid in March 2017. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | This amount represents the change in the actuarial present value of the RPSE and MRO for Mr. Covey. This amount represents the change in actuarial present value of the SERP for Messrs. Clarke, Borst, Kozek and Lisboa. These amounts also represent the difference in the market interest rate under the IRC and the interest crediting rate of 7.5% per annum compounded on a daily basis on the SRAP for Messrs. Clarke, Borst, Kozek, Lisboa, and Covey. The 7.5% is the rate used to design the SRAP as a comparable replacement for the MRO. The interest credit rate constitutes an ‘‘above-market interest rate’’ under the IRC. |

|     |                                                                                                                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | The table above under "All Other Compensation" reflects the following items: flexible perquisites cash allowances; Company-paid life and AD&D insurance premiums; Company contributions to the RAP and the SRAP; and taxable spouse travel compensation to the NEOs in 2016. |

|        |
|--------|
|        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| NEO    | Flexible Perquisites | Company Paid Life and AD&D Insurance | RAP | SRAP | Taxable Spouse Travel | Total |
| Clarke | $ | 46,000 |  | $ | 20,154 |  | $ | 26,225 |  | $ | 41,275 |  | $ | 1,104 |  | $ | 134,758 |  |
| Borst  | $ | 37,000 |  | $ | 8,728 |  | $ | 26,225 |  | $ | 63,611 |  | — |  | $ | 135,564 |  |
| Kozek  | $ | 37,000 |  | $ | 6,450 |  | $ | 23,148 |  | $ | 20,150 |  | $ | 1,244 |  | $ | 87,992 |  |
| Lisboa | $ | 37,000 |  | $ | 4,633 |  | $ | 26,225 |  | $ | 16,900 |  | — |  | $ | 84,758 |  |
| Covey  | $ | 28,000 |  | $ | 18,942 |  | $ | 17,225 |  | $ | 21,477 |  | — |  | $ | 85,644 |  |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 48 |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              |   | Estimated Future Payouts Under Non-Equity Incentive Plan Awards | All Other Stock Awards: Number of Shares of Stock or Units #(1) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($)(2) |
| Name                              | Grant Date | Threshold ($) | Target ($) | Maximum ($) |
| Troy A. Clarke                    |   |   |   |   |   |   |   |   |
| Performance RCU - EBITDA(3)       | 4/22/2016 | 875,000 |  | 1,750,000 |  | 3,500,000 |  |   |   |   |   |
| Performance RCU - Market Share(3) | 4/22/2016 | 375,000 |  | 750,000 |  | 1,500,000 |  |   |   |   |   |
| AI Plan Award - Cash(4)           |   | 500,000 |  | 1,250,000 |  | 1,875,000 |  |   |   |   |   |
| RSU                               | 4/22/2016 |   |   |   | 139,366 |  |   |   | 1,963,667 |  |
| Walter G. Borst                   |   |   |   |   |   |   |   |   |
| Performance RCU - EBITDA(3)       | 2/10/2016 | 367,500 |  | 735,000 |  | 1,470,000 |  |   |   |   |   |
| Performance RCU - Market Share(3) | 2/10/2016 | 157,500 |  | 315,000 |  | 630,000 |  |   |   |   |   |
| AI Plan Award - Cash(4)           |   | 224,952 |  | 562,380 |  | 843,570 |  |   |   |   |   |
| RSU                               | 2/10/2016 |   |   |   | 75,000 |  |   |   | 537,750 |  |
| William R. Kozek                  |   |   |   |   |   |   |   |   |
| Performance RCU - EBITDA(3)       | 2/10/2016 | 245,000 |  | 490,000 |  | 980,000 |  |   |   |   |   |
| Performance RCU - Market Share(3) | 2/10/2016 | 105,000 |  | 210,000 |  | 420,000 |  |   |   |   |   |
| AI Plan Award - Cash(4)           |   | 179,400 |  | 448,500 |  | 672,750 |  |   |   |   |   |
| RSU                               | 2/10/2016 |   |   |   | 50,000 |  |   |   | 358,500 |  |
|   Persio V. Lisboa      |   |   |   |   |   |   |   |   |
| Performance RCU - EBITDA(3)       | 2/10/2016 | 245,000 |  | 490,000 |  | 980,000 |  |   |   |   |   |
| Performance RCU - Market Share(3) | 2/10/2016 | 105,000 |  | 210,000 |  | 420,000 |  |   |   |   |   |
| AI Plan Award - Cash(4)           |   | 165,375 |  | 413,438 |  | 620,156 |  |   |   |   |   |
| RSU                               | 2/10/2016 |   |   |   | 50,000 |  |   |   | 358,500 |
| Steven K. Covey                   |   |   |   |   |   |   |   |   |
| Performance RCU - EBITDA(3)       | 2/10/2016 | 175,000 |  | 350,000 |  | 700,000 |  |   |   |   |   |
| Performance RCU - Market Share(3) | 2/10/2016 | 75,000 |  | 150,000 |  | 300,000 |  |   |   |   |   |
| AI Plan Award - Cash(4)           |   | 160,144 |  | 400,361 |  | 600,542 |  |   |   |   |   |
| RSU                               | 2/10/2016 |   |   |   | 35,714 |  |   |   | 256,069 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Restricted Stock Units.  The amounts shown for RSUs represent the number of RSUs awarded to the NEO's in the fiscal year under our 2013 PIP, as described more fully under the Long-Term Incentives section of this proxy statement.  RSUs 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, so that in three years the RSUs are 100% vested.  The RSUs will be settled in shares at the time they vest. |

|     |                                                                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The amounts shown do not reflect realized compensation by the NEOs. The amounts shown represent the value of the stock settled RSUs granted to the NEOs based on the grant date fair value of the awards as determined in accordance with FASB ASC Topic 718. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Performance RCUs - EBITDA and Performance RCUs - Market Share.  The amounts shown represent the threshold, target and maximum number of performance RCUs that we awarded in the fiscal year to the NEOs under our 2013 PIP, as described more fully under the Long Term Incentive section of this proxy statement.  Our NEOs only earn performance RCUs if average earnings before interest, taxes depreciation, and amortization over a three year performance period with yearly and cumulative goals (EBITDA Margin) meet certain target levels or if certain Market Share goals over a three |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 49 |

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|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | The amounts set forth in this row represent the estimated cash payments to be awarded to our NEO's under the Company's 2016 AI Plan.  The actual cash payments will be based on achievement at 43.8% of target.  For additional information regarding the 2016 cash AI awards, see the Annual Incentives section of this proxy statement. Under the AI plan, threshold is 40% of target, target is 100% and for purposes of this table maximum equals distinguished which is 150% of target.      |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 50 |

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|                  |
|------------------|
|                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|             |   |   | Option Awards(1)(4) |   |   | Stock Awards |
|             | Number of Securities Underlying Unexercised Options (#) | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)    | Option Exercise Price ($)  | Option Expiration Date | Number of Shares or Units of Stock Held that Have Not Vested (#)(2)(4) | Market Value of Shares or Units of Stock Held that Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)(3)(4) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |
| Name             | Exercisable | Unexercisable |
| Troy A. Clarke   | 27,800 |  | — |  | — |  | 58.915 | 12/14/2017 | 1,831 |  | 40,831 |  | — |  | — |  |
|             | 33,300 |  | — |  | — |  | 37.200 | 12/19/2018 | 48,146 |  | 1,073,656 |  | — |  | — |  |
|             | 102,796 |  | — |  | — |  | 27.240 | 2/19/2020 | 139,366 |  | 3,107,862 |  | — |  | — |  |
|             | 224,000 |  | — |  | — |  | 38.300 | 4/22/2020 | — |  | — |  | — |  | — |  |
|             | 373,333 |  | — |  | — |  | 30.640 | 4/22/2020 | — |  | — |  | — |  | — |  |
|             | 90,008 |  | 45,004 |  | — |  | 35.090 | 3/10/2021 | — |  | — |  | — |  | — |  |
|             | 54,005 |  | 27,002 |  | — |  | 43.860 | 3/10/2021 | — |  | — |  | — |  | — |  |
| Total:           | 905,242 |  | 72,006 |  | — |  |   |   | 189,343 |  | 4,222,349 |  | — |  | — |  |
| Walter G. Borst  | 58,789 |  | — |  | — |  | 35.220 | 8/1/2020 | 32,142 |  | 716,767 |  | 32,773 |  | 730,838 |  |
|             | — |  | — |  | 79,201 |  | 35.090 | 3/10/2021 | 75,000 |  | 1,672,500 |  | 18,973 |  | 423,098 |  |
|             | — |  | — |  | 49,905 |  | 27.670 | 2/11/2022 | — |  | — |  | 18,974 |  | 423,120 |  |
|             | — |  | — |  | 49,905 |  | 27.670 | 2/11/2022 | — |  | — |  | — |  | — |  |
| Total:           | 58,789 |  | — |  | 179,011 |  |   |   | 107,142 |  | 2,389,267 |  | 70,720 |  | 1,577,056 |  |
| William R. Kozek | 27,045 |  | — |  | — |  | 31.190 | 6/17/2020 | 1,837 |  | 40,965 |  | 13,109 | 292,331 |  |
|             | — |  | — |  | 31,680 |  | 35.090 | 3/10/2021 | 25,633 |  | 571,616 |  | 12,649 | 282,073 |  |
|             | — |  | — |  | 33,270 |  | 27.670 | 2/11/2022 | 50,000 |  | 1,115,000 |  | 12,649 | 282,073 |  |
|             | — |  | — |  | 33,270 |  | 27.670 | 2/11/2022 | — |  | — |  | — |  | — |  |
| Total:           | 27,045 |  | — |  | 98,220 |  |   |   | 77,470 |  | 1,727,581 |  | 38,407 | 856,477 |  |
| Persio V. Lisboa | 3,255 |  | — |  | — |  | 22.655 | 12/16/2018 | 555 |  | 12,377 |  | 13,109 |  | 292,331 |  |
|             | 3,300 |  | — |  | — |  | 58.915 | 12/14/2017 | 23,404 |  | 521,909 |  | 12,649 |  | 282,073 |  |
|             | 5,200 |  | — |  | — |  | 37.200 | 12/19/2018 | 50,000 |  | 1,115,000 |  | 12,649 |  | 282,073 |  |
|             | 32,895 |  | — |  | — |  | 27.240 | 2/19/2020 | — |  | — |  | — |  | — |  |
|             | — |  | — |  | 31,680 |  | 35.090 | 3/10/2021 | — |  | — |  | — |  | — |  |
|             | — |  | — |  | 33,270 |  | 27.670 | 2/11/2022 | — |  | — |  | — |  | — |  |
|             | — |  | — |  | 33,270 |  | 27.670 | 2/11/2022 | — |  | — |  | — |  | — |  |
| Total:           | 44,650 |  | — |  | 98,220 |  |   |   | 73,959 |  | 1,649,286 |  | 38,407 |  | 856,477 |  |
| Steven K. Covey  | 20,703 |  | — |  | — |  | 22.655 | 12/16/2018 | 845 |  | 18,844 |  | 11,399 |  | 254,198 |  |
|             | 20,703 |  | — |  | — |  | 35.805 | 12/15/2016 | 23,104 |  | 515,219 |  | 9,035 |  | 201,481 |  |
|             | 20,000 |  | — |  | — |  | 58.915 | 12/14/2017 | 35,714 |  | 796,422 |  | 9,035 |  | 201,481 |  |
|             | 20,000 |  | — |  | — |  | 37.200 | 12/19/2018 | — |  | — |  | — |  | — |  |
|             | 32,895 |  | — |  | 0 |  | 27.240 | 2/19/2020 | — |  | — |  | — |  | — |  |
|             | — |  | — |  | 27,548 |  | 35.090 | 3/10/2021 | — |  | — |  | — |  | — |  |
|             | — |  | — |  | 23,765 |  | 27.670 | 2/11/2022 | — |  | — |  | — |  | — |  |
|             | — |  | — |  | 23,764 |  | 27.670 | 2/11/2022 | — |  | — |  | — |  | — |  |
| Total:           | 114,301 |  | — |  | 75,077 |  |   |   | 59,663 |  | 1,330,485 |  | 29,469 |  | 657,160 |  |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 51 |

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|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | All stock options, other than performance stock options, became or will become exercisable under the following schedule: ⅓rd on each of the first three anniversaries of the date of grant. Performance stock options that expire on February 19, 2020, March 10, 2021, or February 11, 2022, vest on the three year anniversary of the date of grant if performance conditions have been met. The Compensation Committee has certified that the performance conditions have been met in full on the performance options that expire on February 19, 2020. The value of all performance shares listed above were based on achieving performance goals at maximum level. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Amounts in this column represent RSUs. In general RSUs become vested as to ⅓rd of the shares granted on each of the first three anniversaries of the date of grant, except that RSUs granted to our NEO's in 2016 for partial payment of 2015 AI vested over 3 years as follows: year 1 (60%), year 2 (30%) and year 3 (10%), for Mr. Clarke this award was in the amount of 48,146 shares. for Mr. Borst 32,142 shares, for Mr. Kozek 25,633 shares, for Mr. Lisboa 23,404 shares and for Mr. Covey 23,104 shares. |

|     |                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Amounts in this column represent EBITDA Margin performance shares or Revenue Growth performance shares, which will be fully vested and eligible for payout three years from the date of grant provided applicable performance goals have been achieved. The value reported for each of the performance share awards was based on achieving performance goals at target level. |

|     |                                                                                                                                                                                                             |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | The vesting dates of outstanding unexercisable stock options, performance stock options, RSUs, EBITDA Margin performance shares and Revenue Growth performance shares at October 31, 2016 are listed below. |

|                      |
|----------------------|
|                      |  |  |  |  |  |  |  |
| Name                 | Type of Award | Grant Date | Number of Unexercised or Unvested Shares Remaining from Original Grant | Number of Shares Vesting and Vesting Date in 2017 | Number of Shares Vesting and Vesting Date in 2018 | Number of Shares Vesting and Vesting Date in 2019 |
|  Troy A. Clarke | Options | 3/10/2014 | 45,004 | 45,004 on 3/10/2017 |   |   |
|                 | Options | 3/10/2014 | 27,002 | 27,002 on 3/10/2017 |   |   |
|                 | RSUs | 2/3/2014 | 1,831 | 1,831 on 2/3/2017 |   |   |
|                 | RSUs | 2/1/2016 | 48,146 | 28,887 on 2/1/2017 | 14,444 on 2/1/2018 | 4,815 on 2/1/2019 |
|                 | RSUs | 4/22/2016 | 139,366 | 46,456 on 4/22/2017 | 46,455 on 4/22/2018 | 46,455 on 4/22/2019 |
| Walter G. Borst      | Options | 3/10/2014 | 79,201 | 79,201 on 3/10/2017 |   |   |
|                 | Options | 2/11/2015 | 49,905 |   | 49,905 on 2/11/2018 |   |
|                 | Options | 2/11/2015 | 49,905 |   | 49,905 on 2/11/2018 |   |
|                 | Performance | 3/10/2014 | 32,773 | 32,773 on 3/10/2017 |   |   |
|                 | Performance | 2/11/2015 | 18,973 |   | 18,973 on 2/11/2018 |   |
|                 | Performance | 2/11/2015 | 18,974 |   | 18,974 on 2/11/2018 |   |
|                 | RSUs | 2/1/2016 | 32,142 |  | 19,285 on 2/1/2017 | 9,642 on 2/1/2018 | 3,215 on 2/1/2109 |
|                 | RSUs | 2/10/2016 | 75,000 |  | 25,000 on 2/10/2017 | 25,000 on 2/10/2018 | 25,000 on 2/10/2019 |
| William R. Kozek     | Options | 3/10/2014 | 31,680 |  | 31,680 on 3/10/2017 |   |   |
|                 | Options | 2/11/2015 | 33,270 |  |   | 33,270 on 2/11/2018 |   |
|                 | Options | 2/11/2015 | 33,270 |  |   | 33,270 on 2/11/2018 |   |
|                 | Performance | 3/10/2014 | 13,109 |  | 13,109 on 3/10/2017 |   |   |
|                 | Performance | 2/11/2015 | 12,649 |  |   | 12,649 on 2/11/2018 |   |
|                 | Performance | 2/11/2015 | 12,649 |  |   | 12,649 on 12/11/2018 |   |
|                 | RSUs | 2/3/2014 | 1,837 |  | 1,837 on 2/3/2017 |   |   |
|                 | RSUs | 2/1/2016 | 25,633 |  | 15,379 pm 2/1/2017 | 7,690 on 2/1/2018 | 2,564 on 2/1/2019 |
|                 | RSUs | 2/10/2016 | 50,000 |  | 16,667 on 2/10/2017 | 16,666 on 2/10/2018 | 16,667 on 2/10/2019 |

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|--|
|  |  |  |
|  | 2017 Proxy Statement | 52 |

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|                  |
|------------------|
|                  |  |  |  |  |  |  |  |
| Name             | Type of Award | Grant Date | Number of Unexercised or Unvested Shares Remaining from Original Grant | Number of Shares Vesting and Vesting Date in 2017 | Number of Shares Vesting and Vesting Date in 2018 | Number of Shares Vesting and Vesting Date in 2019 |
| Persio V. Lisboa | Options | 3/10/2014 | 31,680 |  | 31,680 on 3/10/2017 |   |   |
|             | Options | 2/11/2015 | 33,270 |  |   | 33,270 on 2/11/2018 |   |
|             | Options | 2/11/2015 | 33,270 |  |   | 33,270 on 2/11/2018 |   |
|             | Performance | 3/10/2014 | 13,109 |  | 13,109 on 3/10/2017 |   |   |
|             | Performance | 2/11/2015 | 12,649 |  |   | 12,649 on 2/11/2018 |   |
|             | Performance | 2/11/2015 | 12,649 |  |   | 12,649 on 2/11/2018 |   |
|             | RSUs | 2/3/2014 | 555 |  | 555 on 2/3/2017 |   |   |
|             | RSUs | 2/1/2016 | 23,404 |  | 14,042 on 2/1/2017 | 7,021 on 2/1/2018 | 2,341 on 2/1/2019 |
|             | RSUs | 2/10/2016 | 50,000 |  | 16,667 on 2/10/2017 | 16,666 on 2/10/2018 | 16,667 on 2/10/2019 |
| Steven K. Covey  | Options | 3/10/2014 | 27,548 |  | 27,548 on 3/10/2017 |   |   |
|             | Options | 02/11/2015 | 23,765 |  |   | 23,765 on 2/11/2018 |   |
|             | Options | 02/11/2015 | 23,764 |  |   | 23,764 on 2/11/2018 |   |
|             | Performance | 3/10/2014 | 11,399 |  | 11,399 on 3/10/2017 |   |   |
|             | Performance | 2/11/2015 | 9,035 |  |   | 9,035 on 2/11/2018 |   |
|             | Performance | 2/11/2015 | 9,035 |  |   | 9,035 on 2/11/2018 |   |
|             | RSUs | 2/3/2014 | 845 |  | 845 on 2/3/2017 |   |   |
|             | RSUs | 2/1/2016 | 23,104 |  | 13,862 on 2/1/2017 | 6,931 on 2/1/2018 | 2,311 on 2/1/2019 |
|             | RSUs | 2/10/2016 | 35,714 |  | 11,905 on 2/10/2017 | 11,904 on 2/10/2018 | 11,905 on 2/10/2019 |

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|--|
|  |  |  |
|  | 2017 Proxy Statement | 53 |

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|                  |
|------------------|
|                  |  |  |  |  |  |  |  |
|             | Option Awards | Stock Awards |
| Name             | Number of Shares Acquired on Exercise (#) | Value Realized Upon Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized Upon Vesting ($)(1) |
| Troy A. Clarke   | — |  | — |  | 2,252 |  | 17,178 |
| Walter G. Borst  | — |  | — |  | 18,480 |  | 235,066 |
| William R. Kozek | — |  | — |  | 1,836 |  | 12,742 |
| Persio V. Lisboa | — |  | — |  | 555 |  | 3,852 |
| Steven K. Covey  | — |  | — |  | 844 |  | 5,857 |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | The value realized upon vesting for Mr. Clarke is attributable to the vesting of cash settled RSUs, and PSUs during the year ended October 31, 2016.  The value realized upon vesting for Mr. Borst is attributable to a combination of share settled RSUs and PSUs that vested during the year ended October 31, 2016.  The value realized upon vesting for Mr. Kozek, Mr. Lisboa and Mr. Covey is attributable to the vesting of cash settled RSUs during the year ended October 31, 2016. |

|                          |
|--------------------------|
|                          |  |  |  |  |
| Named Executive Officers | Plan Name | Number of Years of Credited Service (#) | Present Value of Accumulated Benefit ($)(1) | Payments During Last Fiscal Year                     ($) |
| Troy A. Clarke           | SERP | 6.0 | 5,356,823 | — |
| Walter G. Borst          | SERP | 3.5 | 2,724,930 | — |
| William R. Kozek         | SERP | 3.7 | 1,767,123 | — |
| Persio V. Lisboa         | SERP | 18.0 | 1,420,791 | — |
| Steven K. Covey          | RPSE | 32.5 | 1,931,805 | — |
| MRO                      | 32.5 | 4,642,234 | — |
| SERP                     | 35.5 | — | — |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 (3.61%) and mortality (115% of RP2014 White Collar headcount-weighted table projected using Scale MP2016 with generational projection, modified to converge to a 0.75 long-term improvement rate by 2032) 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. |

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|--|
|  |  |  |
|  | 2017 Proxy Statement | 54 |

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

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 55 |

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

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 56 |

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|                          |
|--------------------------|
|                          |  |  |  |  |
| Named Executive Officers | Executive Contributions in Last Fiscal Year ($) | Registrant Contributions in Last Fiscal Year(1) ($) | Aggregate Earnings In Last Fiscal Year(2) ($) | Aggregate Balance As of Last Fiscal Year End(3) ($) |
| Troy A. Clarke           | N/A | 41,275 | 79,920 | 413,088 |
| Walter G. Borst          | N/A | 63,611 | 112,759 | 373,185 |
| William R. Kozek         | N/A | 20,150 | 4,344 | 65,934 |
| Persio V. Lisboa         | N/A | 16,900 | 10,956 | 108,658 |
| Steven K. Covey          | N/A | 21,477 | 39,731 | 137,555 |

|     |                                                                                            |
|-----|--------------------------------------------------------------------------------------------|
| (1) | Our contributions represent any notional contribution credits to the SRAP during the 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 year until the end of the 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. |

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|--|
|  |  |  |
|  | 2017 Proxy Statement | 57 |

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|         |                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The expiration date of the agreement period post-Change in Control will be the date that occurs eighteen (18) months after the date of the 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 is 50% or more of the combined voting power of the Company’s then-outstanding securities; |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 58 |

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A diminution of authority sufficient to trigger a termination for ‘‘Good Reason’’ occurs 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, 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; |

|         |                                                                                                                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 Clawback Policy; |

|         |                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------|
| • | Continued life insurance coverage decreased from a 24 month period to an 18 month period following termination; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The 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 IRC Section 280G excise tax gross-up. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Voluntary Termination by Executive and Involuntary (Termination for ‘‘Cause’’) by us:  We are not obligated to provide the executive with any additional or special compensation or benefits upon a voluntary termination by the executive or termination for ‘‘Cause’’ by us.  All compensation, bonuses, benefits, and perquisites cease upon a voluntary termination by the executive or termination for ‘‘Cause’’ by us. In general, in the event of either such termination, an executive officer would: |

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

|         |                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Not be eligible for an AI payment if the termination occurred prior to year-end or if the termination occurred after 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 time and performance-based stock options; |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | Forfeit any unvested restricted stock and time and performance-based RSUs; |

|         |                                                           |
|---------|-----------------------------------------------------------|
| • | Forfeit any unvested cash-settled performance shares; and |

|         |                            |
|---------|----------------------------|
| • | Forfeit any unvested RCUs. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 59 |

----

|         |                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 and accrued 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 and RCUs. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Termination Without ‘‘Cause’’ by us or “Good Reason” Termination:   If the employment of an executive officer is terminated either due to either a termination by us without ‘‘Cause’’ or by the executive for ‘‘Good Reason’’ (as defined below), in each case either before the date of a Change in Control (as defined in the ESA) or more than 18 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% to 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 the18-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 and accrued 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 RCUs, any unvested time and performance based stock options and any unvested restricted stock, time and performance based RSUs or PSUs. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 60 |

----

|         |                                                                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 defined below) occurs within 18 months after a Change in Control, then the executive 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; |

|         |                                                                                  |
|---------|----------------------------------------------------------------------------------|
| • | Continued life insurance coverage for the 18-month period following termination; |

|         |                        |
|---------|------------------------|
| • | 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 and RCUs 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 18 months older and had 18 more months 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 for Cause or Good Reason Termination | Multiplier – Change in Control |
| Troy A. Clarke(1) | 200% | 200% |
| Walter G. Borst   | 200% | 300% |
| William R. Kozek  | 200% | 300% |
| Persio V. Lisboa  | 200% | 300% |
| Steven K. Covey   | 150% | 300% |

|     |                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Mr. Clarke does not have an ESA. Per his Employment Agreement, in the event his employment 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 his base salary plus target annual incentive. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 61 |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| NEO                                             | Severance Amount/Cash Payment ($) | Unvested Options ($)(1) | Restricted Stock/Units ($)(2) | Performance Shares ($)(3) | Benefit Continuation ($)(4) | Outplacement Counseling ($)(5) | Total ($) |
| Troy A. Clarke                                  |  |  |  |  |  |  |  |
| Without Cause or Good Reason Termination(6)     | 4,500,000 |  | — |  | 108,155 |  | — |  | 56,335 |  | 19,000 |  | 4,683,490 |  |
| Change in Control(6)(11)                        | 5,750,000 |  | — |  | 4,358,669 |  | 2,500,000 |  | 56,335 |  | 19,000 |  | 12,684,004 |  |
| Disability(7)                                   | 600,000 |  | — |  | 4,358,669 |  | — |  | — |  | — |  | 4,958,669 |  |
| Death(8)                                        | — |  | — |  | 4,358,669 |  | — |  | — |  | — |  | 4,358,669 |  |
| Voluntary and Involuntary for Cause Termination | — |  | — |  | — |  | — |  | — |  | — |  | — |  |
| Walter G. Borst                                 |  |  |  |  |  |  |  |
| Without Cause or Good Reason Termination(9)     | 2,624,440 |  | — |  | 231,162 |  | — |  | 36,770 |  | 19,000 |  | 2,911,372 |  |
| Change in Control(10)(11)                       | 8,746,304 |  | — |  | 2,620,428 |  | 2,627,056 |  | 36,770 |  | 19,000 |  | 14,049,558 |  |
| Disability(7)                                   | 449,904 |  | — |  | 2,620,428 |  | — |  | — |  | — |  | 3,070,332 |  |
| Death(8)                                        | — |  | — |  | 2,620,428 |  | — |  | — |  | — |  | 2,620,428 |  |
| Voluntary and Involuntary for Cause Termination | — |  | — |  | — |  | — |  | — |  | — |  | — |  |
| William R. Kozek                                |  |  |  |  |  |  |  |
| Without Cause or Good Reason Termination(9)     | 2,093,000 |  | — |  | — |  | — |  | 44,610 |  | 19,000 |  | 2,156,610 |  |
| Change in Control(10)(11)                       | 3,588,000 |  | — |  | 1,727,581 |  | 1,556,476 |  | 44,610 |  | 19,000 |  | 6,935,667 |  |
| Disability(7)                                   | 358,800 |  | — |  | 1,727,581 |  | — |  | — |  | — |  | 2,086,381 |  |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 62 |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| NEO                                             | Severance Amount/Cash Payment ($) | Unvested Options ($)(1) | Restricted Stock/Units ($)(2) | Performance Shares ($)(3) | Benefit Continuation ($)(4) | Outplacement Counseling ($)(5) | Total ($) |
| Death(8)                                        | — |  | — |  | 1,727,581 |  | — |  | — |  | — |  | 1,727,581 |  |
| Voluntary and Involuntary for Cause Termination | — |  | — |  | — |  | — |  | — |  | — |  | — |  |
| Persio V. Lisboa                                |  |  |  |  |  |  |  |
| Without Cause or Good Reason Termination(9)     | 1,929,375 |  | — |  | 62,217 |  | — |  | 33,408 |  | 19,000 |  | 2,044,000 |  |
| Change in Control(10)(11)                       | 3,374,335 |  | — |  | 1,711,503 |  | 1,556,476 |  | 33,408 |  | 19,000 |  | 6,694,722 |  |
| Disability(7)                                   | 330,750 |  | — |  | 1,711,503 |  | — |  | — |  | — |  | 2,042,253 |  |
| Death(8)                                        | — |  | — |  | 1,711,503 |  | — |  | — |  | — |  | 1,711,503 |  |
| Voluntary and Involuntary for Cause Termination | — |  | — |  | 52,740 |  | — |  | — |  | — |  | 52,740 |  |
| Steven K. Covey                                 |  |  |  |  |  |  |  |
| Without Cause or Good Reason Termination(9)     | 1,524,452 |  | — |  | 614,365 |  | — |  | 30,699 |  | 19,000 |  | 2,188,516 |  |
| Change in Control(10)(11)                       | 3,449,264 |  | — |  | 1,410,787 |  | 1,157,159 |  | 30,699 |  | 19,000 |  | 6,066,909 |  |
| Disability(7)                                   | 369,564 |  | — |  | 1,410,787 |  | — |  | — |  | — |  | 1,780,351 |  |
| Death(8)                                        | — |  | — |  | 1,410,787 |  | — |  | — |  | — |  | 1,410,787 |  |
| Voluntary and Involuntary for Cause Termination | — |  | — |  | — |  | — |  | — |  | — |  | — |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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, 2016), which was $22.30 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, 2016 closing price of $22.30 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 voluntary and involuntary for Cause termination represent deferred shares that have already been earned. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | This amount includes the value of all unvested cash-settled performance shares based on a Change in Control effective October 31, 2016 with a closing price of $22.30. Additionally, this amount includes RCUs. The value of the RCU grants are as follows: for Mr. Clarke $2,500,000, Mr. Borst $1,050,000, Mr. Kozek $700,000, Mr. Lisboa $700,000 and Mr. Covey $500,000. No amounts are included for performance shares for without Cause or Good Reason, disability or death, because the performance shares remain subject to performance requirements even after such termination. |

|          |                                                                                                                                                                                                                                                                                                                            |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (4) | Benefits include 12 months continued health care coverage with an option to purchase an additional 12 months at the cost of coverage rate. Benefits also include 18 months of continued life insurance coverage for all NEOs (per their ESAs) terminated without Cause, with Good Reason or following a Change in Control. |

|     |                                                                               |
|-----|-------------------------------------------------------------------------------|
| (5) | This amount 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 terminate 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 AI target; |

|    |                                                                                                                               |
|----|-------------------------------------------------------------------------------------------------------------------------------|
| 2. | Twelve months continued health care coverage with 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; and |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 63 |

----

|    |                                                                                                                                                                                                            |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7. | Pro-rata portion of the earned AI award that would have been payable to Mr. Clarke for the Company’s fiscal year in which the termination occurred, based on actual performance effective October 31 |

|     |                                                                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | This amount is 60% of annualized base salary as of October 31, 2016 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. Mr. Covey is a participant in the defined benefit pension plan that provides a surviving spouse benefit. Messrs. Clarke, Borst, Kozek and Lisboa 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 to 200 percent of the sum of the NEO’s annual base salary plus AI target. |

|      |                                                                                                                                                                                                                                             |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10) | The IRC Section 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 AI target plus pro-rata AI. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 18 months older and had 18 months more 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. Kozek $2,200,621, Mr.  Lisboa $77,301 and Mr. Borst $3,656,328. The figure for Mr. Covey is also $0 as he has reached the maximum rate of accrual under the non-tax qualified pension benefit. The figure for Mr. Clarke is $0 as Mr. Clarke's Employment Agreement does not have a provision for this lump sum cash payment. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 64 |

----

|                                         |
|-----------------------------------------|
|                                         |  |
| General Description                     | •Compensation Committee approval of overall compensation philosophy and plan design•Compensation mix of base salary, short-term and long-term incentives•Market competitive analysis conducted using  the comparator group•Market analysis based on individual job |
| Executive Stock Ownership Plan          | •Aligns executives' interests with stockholders•Ownership requirement of 1x base pay for executives, 3x base pay for senior executives and 6x base pay for CEO•Holding periods for at least one year following the vesting date of equity awards; even after ownership requirements have been attained |
| 2016 Annual Incentive Plan              | •Design focused on five key financial performance metrics enabling our strategy and driving results for our employees, customers and stockholders |
| 2016 Long-Term Incentive Awards         | •Performance-based equity awards are made at the discretion of the Compensation Committee and are intended to focus participants on the long-term growth of the Company•LTI awards are calculated based on actual grant date values•LTI values primarily based upon external market data |
| Executive Severance Agreements ("ESAs") | •The Change-in-Control definition in our ESAs excludes funds affiliated with designated board members•Good Reason in our ESAs requires a decrease in the executive's 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•Agreement period post Change in Control decreased to eighteen months |
| Other Controls and Procedures           | •Capital expenditure approval policies and procedures that control the possibility of engaging in unintended risk    •Sarbanes Oxley / Internal Controls procedures and processes adopted by the Company•Clawback policy that requires the repayment of short and long-term incentive based compensation as a result of a financial restatement or intentional misconduct |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 65 |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |
| Compensation Element                              | Calendar Year 2015 Compensation Program |
| Annual Retainer:                                  | $120,000 retainer; $100,000 paid in cash, $20,000 paid in restricted stock |
| Additional Chairman of the Board Annual Retainer: | $140,000 |
| Committee Chairman Additional Annual Retainer:    | $20,000 for Audit Committee $10,000 for Compensation Committee  $10,000 for Finance Committee  $10,000 for Nominating and Governance 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  or Paid in  Cash  ($)(1)(2)(3) | Stock  Awards  ($)(2)(3)(4)(5)(6) | Option Awards ($)(5)(6)(7) | All Other Compensation  ($) | Total  ($) |
| Jose Maria Alapont    | 5,870 |  | — |  | — |  | — | 5,870 |
| Stephen R. D'Arcy     | 5,870 |  | — |  | — |  | — | 5,870 |
| Michael N. Hammes     | 110,006 |  | 19,994 |  | 25,750 |  | — | 155,750 |
| Vincent J. Intrieri   | 105,000 |  | 20,000 |  | 25,750 |  | — | 150,750 |
| James H. Keyes        | 260,006 |  | 19,994 |  | 25,750 |  | — | 305,750 |
| Stanley A. McChrystal | — |  | 120,000 |  | 25,750 |  | — | 145,750 |
| Samuel J. Merksamer   | 100,000 |  | 20,000 |  | 25,750 |  | — | 145,750 |
| Mark H. Rachesky      | — |  | 125,000 |  | 25,750 |  | — | 150,750 |
| Michael F. Sirignano  | — |  | 130,000 |  | 25,750 |  | — | 155,750 |
| Dennis A. Suskind     | 5,870 |  | — |  | — |  | — | 5,870 |
| Dennis D. Williams(8) | 120,000 |  | — |  | — |  | — | 120,000 |

|     |                                                                                                                                                                                                                                                                     |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Amounts in this column reflect fees earned by our non-employee directors in 2016.   Mr. Alapont, Mr. D'Arcy and Mr. Suskind were appointed to the board on October 14, 2016, and as such their fees were pro-rated for actual time served on the Board during 2016. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 66 |

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|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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, Dr. Mark H. Rachesky, and Michael F. Sirignano, elected to defer the receipt of some or all of their compensation received for their retainer fees in 2016.   Mr. Intrieri, deferred 100% of his first quarter retainer normally paid in restricted stock and received 1,597.444 DSUs.  General McChrystal deferred receipt of 100% of his quarterly retainer fees in DSUs and has received 8,523.226 DSUs through September 30, 2016. Mr. Merksamer  deferred 100% of his first quarter retainer normally paid in restricted stock and received 1,597.444 DSUs.  Dr. Rachesky deferred receipt of 100% of his quarterly retainer fees, except the portion payable in restricted stock, in calendar year 2016 and received 7,281.360 DSUs through September 30, 2016. Mr. Sirignano deferred receipt of 100% of his quarterly retainer fees in calendar year 2016 and has received 9,194.748 DSUs through September 30, 2016. The amount of DSUs for Mr. Intrieri, General McChrystal, Mr. Merksamer, Dr. Rachesky, and Mr. Sirignano 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 2016 will be converted into Common Stock and issued within 60 days after their separation from service on the Board. The units issued to Dr. Rachesky and Mr. Sirignano during 2016 will be converted into Common Stock and issued within 60 days after January 1, 2017. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Effective April 1, 2016, each non-employee director received 1,597 shares of restricted stock in lieu of $20,000 of their first quarter retainer, except for Mr. Intrieri, General McChrystal, Mr. Merksamer and Mr. Sirignano 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 8 below. Mr. Alapont, Mr. D'Arcy and Mr. Suskind were not members of the Board when the first quarter retainers were paid.  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 year ended October 31, 2016. |

|     |                                                                                                                                                                                                                                                                                                                                        |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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, 2016, including DSUs owned by Mr. Intrieri, Mr. Keyes, General McChrystal, and Mr. Merksamer is indicated in the table below. All of these stock awards and DSUs are 100% vested: |

|                               |
|-------------------------------|
|                               |  |  |
| Name                          | Total Number of Stock Awards Outstanding (#) |
| Jose Maria Alapont            | — |  |
| Stephen R. D'Arcy             | — |  |
| Michael N. Hammes             | 5,261 |  |
| Vincent J. Intrieri           | 4,099 |  |
| James H. Keyes                | 22,706 |  |
| General Stanley A. McChrystal | 27,560 |  |
| Samuel J. Merksamer           | 3,452 |  |
| Mark H. Rachesky              | 20,469 |  |
| Michael F. Sirignano          | 17,923 |  |
| Dennis A. Suskind             | — |  |
| 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.  Mr. Alapont, Mr. D'Arcy and Mr. Suskind were not members of the Board when the stock option grants were made. |

|     |                                                                                                                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 year ended October 31, 2016 regarding assumptions underlying valuation of equity awards. |

|     |                                                                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | The number of options granted in 2016 and the aggregate number of stock options outstanding for each non-employee director as of October 31, 2016 are indicated in the table below. |

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |
| Name                          | Total Stock Option Awards Outstanding  at 2016  Year End  (#) | Option  Awards Granted During 2016  (#) | Grant  Price  ($) | Grant Date  Fair Value of  Option Awards Granted  During Year ($)(a) |
| Michael N. Hammes             | 35,400 |  | 5,000 |  | 10.60 |  | 25,750 |  |
| Vincent J. Intrieri           | 20,000 |  | 5,000 |  | 10.60 |  | 25,750 |  |
| James H. Keyes                | 36,600 |  | 5,000 |  | 10.60 |  | 25,750 |  |
| General Stanley A. McChrystal | 25,000 |  | 5,000 |  | 10.60 |  | 25,750 |  |
| Samuel J. Merksamer           | 20,000 |  | 5,000 |  | 10.60 |  | 25,750 |  |
| Mark H. Rachesky              | 20,000 |  | 5,000 |  | 10.60 |  | 25,750 |  |
| Michael F. Sirignano          | 10,000 |  | 5,000 |  | 10.60 |  | 25,750 |  |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 67 |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 ⅓rd 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 8, 2015 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 year ended October 31, 2016. |

|     |                                                                                                                                                                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8) | At the request of the UAW, the organization which recommended Mr. Williams to the Board, the entire cash portion of Mr. Williams’ annual retainer is contributed to a trust which was created in 1993 pursuant to a restructuring of our retiree health care and life insurance benefits. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 68 |

----

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

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |  |
| Plan Category(1)                                          | (a)  Number of  Securities to  be Issued  Upon Exercise  of Outstanding  Options,  Warrants and  Rights |   | (b)  Weighted- Average Exercise Price of Outstanding Options, Warrants and Rights |   | (c)  Number of  Securities  Remaining  Available for  Future Issuance Under Equity Compensation Plans  (Excluding  Securities  Reflected in Column(a)) |   |
| Equity compensation plans approved by stockholders        | 5,059,816 | (2) | $ | 35.51 |  | (3) | 1,984,673 |  | (4)(5) |
| Equity compensation plans not approved by stockholders(6) | 28,333 | (6)(7) | N/A |  | (3) | — |  |   |
| Total                                                     | 5,088,149 |   | N/A |  |   | 1,984,673 |  |   |

|     |                                                                                                                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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. Retirement Accumulation Plan. As of October 31, 2016, there were 1,499,014 shares of Common Stock held in these plans. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | This number includes 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. Stock options awarded to employees for the purchase of Common Stock from 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 generally do not become exercisable until after the three year anniversary of the date of grant and only if performance conditions are met. Performance Options granted to our CEO on April 22, 2013 and March 10, 2014, vest upon achievement of performance conditions at measurement date. The terms of awards of RSUs granted under the 2013 PIP were established by the Board or committee thereof at the time of issuance. The 2004 PIP expired on February 18, 2013, and as such no further awards may be granted under the 2004 PIP. As of October 31, 2016, 1,713,346 stock option awards, 1,338 DSUs, and 22,863 PSUs remain outstanding for shares of Common Stock reserved for issuance under the 2004 PIP, and 2,660,444 stock options, including performance options, 612,578 RSUs, 36,769 DSUs and 12,478 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, and PSUs 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 Ownership Program.’’ There were no options, warrants, or rights outstanding under the unapproved plans as of October 31, 2016.  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Our 2004 PIP was approved by the Board and the independent Compensation and Governance Committee on October 21, 2003, and, subsequently by our stockholders on February 17, 2004. Our 2004 PIP was amended on December 14, 2004, and approved by stockholders on March 23, 2005. The plan was subsequently amended on December 13, 2005, April 16, 2007, June 18, 2007, May 27, 2008, December 16, 2008, January 9, 2009, December 15, 2009, 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.  Our 2013 PIP was amended on February 11, 2015.  The 2013 PIP replaced on a prospective basis the 2004 PIP and the Prior Plans, and awards may no longer be granted under the 2004 PIP or the Prior Plans. A total of 3,665,500 shares of Common Stock were reserved for awards under the 2013 PIP. Shares subject to awards under the 2013 PIP, the 2004 PIP or the Prior Plans after February 19, 2013, that are 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 become available for awards. This number represents the remaining number of unused shares from the year ended October 31, 2016, which are available for issuance. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | The following plans were not approved by our stockholders: The Executive Stock Ownership Program (the ‘‘Ownership Program’’), 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. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 69 |

----

|     |                                                                                                                                                                                         |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | Includes 3,091 PSUs granted under the Ownership Program and 25,242 deferred stock units granted under the Deferred Fee Plan; all of which were outstanding as of October 31, 2016.  |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 70 |

----

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

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 71 |

----

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |
| PROPOSAL 4 — RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |

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

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 72 |

----

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

|                    |
|--------------------|
|                    |  |  |  |  |  |  |
|               | 2016(1) |  | 2015(1) |  |
| Audit fees         |  | $11.1 |  |  | $12.0 |  |
| Audit-related fees | 0.1 |  | 0.2 |  |
| Tax fees           | 0.2 |  | — |  |
| All other fees     | — |  | — |  |
| Total fees         |  | $11.4 |  |  | $12.2 |  |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 73 |

----

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

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 74 |

----

|                                        |
|----------------------------------------|
|                                        |
| 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 (630) 753-7546. |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 75 |

----

|                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |  |
| Registered Stockholders   (if appointing a representative to attend  and/or vote on his/her behalf) | Beneficial Holders |
| For ownership verification provide:                                                                                     | For ownership verification provide: |
| •    name(s) of stockholder                                                                   | •    a copy of your January brokerage account statement showing Navistar stock ownership as of the record date (12/19/16); |
| •    address                                                                                  |
| •    phone number                                                                             |
| •    social security number and/or stockholder account number; or                             | •    a letter from your broker, bank or other nominee verifying your record date (12/19/16) ownership; or |
| •    a copy of your proxy card showing stockholder name and address                           | •    a copy of your brokerage account voting instruction card showing stockholder name and address |
| Also include:                                                                                                           | Also include: |
| •    name of authorized proxy representative, if one appointed                                | •    name of authorized proxy representative, if one appointed |
| •    address where tickets should be mailed and phone number                                  | •    address where tickets should be mailed and phone number |

|  |
|--|
|  |  |  |
|  | 2017 Proxy Statement | 76 |

----

|                                         |
|-----------------------------------------|
|                                         |
| 2U Inc                                  |
| 3M Company                              |
| A. O. Smith Corporation                 |
| Abbott Laboratories                     |
| AbbVie Inc.                             |
| Activision Blizzard                     |
| Acushnet Company                        |
| Adobe Systems Incorporated              |
| ADT Corp                                |
| Aegion Corp.                            |
| Agilent Technologies, Inc.              |
| Allegion S&S US Holding Company Inc |
| Alliant Energy Corporation              |
| ALSAC-St. Jude's                        |
| Altria Group, Inc.                      |
| Ameren Corporation                      |
| American Air Liquide Inc.               |
| American Blue Ribbon Holdings, LLC      |
| American Electric Power Company, Inc.   |
| American Heart Association              |
| American Signature, Inc                 |
| AMSTED Industries Incorporated          |
| Amway Corp.                             |
| Andersen Corporation                    |
| Anheuser-Busch Companies, Inc.          |
| ANN INC.                                |
| Applied Materials, Inc.                 |
| Arkansas Electric Cooperatives          |
| Armstrong World Industries, Inc.        |
| Ascena Retail Group, Inc.               |
| AT&T Inc.                           |
| Aurora Health Care, Inc.                |
| Automatic Data Processing, Inc.         |
| Avery Dennison Corporation              |
| Avis Budget Group, Inc.                 |
| Avon Products, Inc.                     |
| BAE Systems, Inc.                       |
| Bain & Company, Inc.                |
| Ball Corporation                        |
| Baxter International Inc.               |
| Beam Suntory Inc.                       |
| Beckman Coulter, Inc.                   |
| Belden Inc.                             |
| Black Angus Steakhouse                  |
| Black Hills Corporation                 |
| Bloomin Brands                          |
| Blue Diamond Growers                    |

|                                           |
|-------------------------------------------|
|                                           |
| BNSF Railway Company                      |
| Boddie Noell Enterprises Inc              |
| Bojangles Restaurants, Inc.               |
| BorgWarner Inc.                           |
| Brady Corporation                         |
| BreitBurn Energy Partners L.P.            |
| Bristol-Myers Squibb Company              |
| Broadcom Corporation                      |
| Broadridge Financial Solutions, Inc.      |
| Brunswick Corporation                     |
| Buckeye Partners, L.P.                    |
| Bush Brothers & Company               |
| Cafe Rio Inc                              |
| Callaway Golf Company                     |
| Calpine Corporation                       |
| Calumet Specialty Products Partners, L.P. |
| Campbell Soup Company                     |
| Capella Education Company                 |
| Cardtronics, Inc.                         |
| Career Education Corporation              |
| CareFusion Corporation                    |
| Cargill, Incorporated                     |
| Caterpillar Inc.                          |
| CBRE                                      |
| CDW Corporation                           |
| CenterPoint Energy, Inc.                  |
| CF Industries, Inc.                       |
| Chart Industries, Inc.                    |
| Chicago Bridge & Iron Company N.V.    |
| Chipotle Mexican Grill, Inc.              |
| Chrysler Group LLC                        |
| CHS Inc.                                  |
| Church & Dwight Company, Inc.         |
| Ciena Corporation                         |
| Clearwater Paper Corporation              |
| Cleco Corporation                         |
| CMS Energy Corporation                    |
| Colgate-Palmolive Company                 |
| ConAgra Foods, Inc.                       |
| Consolidated Edison                       |
| Convergys Corporation                     |
| Cooper-Standard Holdings Inc.             |
| Covanta Holding Corporation               |
| Crestwood Midstream Partners LP           |
| Cubic Corporation                         |
| Cummins Inc.                              |
| Curtiss-Wright Corporation                |
| Daimler Trucks North America LLC          |
| Dairy Queen                               |
| Darden Restaurants, Inc.                  |
| Deere & Company                       |
| Deloitte & Touche L.L.P.              |
| Delphi Corporation                        |

----

|                                                  |
|--------------------------------------------------|
|                                                  |
| Denso International America, Inc.                |
| Dex Media                                        |
| Diageo North America, Inc.                       |
| Diamond Foods, Inc.                              |
| Dine Equity Inc.                                 |
| Direct Energy Services Inc                       |
| Dolby Laboratories, Inc.                         |
| Dole Packaged Foods, LLC                         |
| Dollar General Corporation                       |
| Dot Foods, Inc.                                  |
| Dover Corporation                                |
| Drew Marine USA Inc                              |
| Dst Systems, Inc.                                |
| DTE Energy Company                               |
| Duke Energy Corporation                          |
| Dunkin' Brands, Inc.                             |
| E. I. du Pont de Nemours and Company             |
| Eastman Kodak Company                            |
| Eaton Corporation                                |
| Ecolab Inc.                                      |
| EDF Renewable Energy (also known as enXco, Inc.) |
| Edison International                             |
| Edwards Lifesciences                             |
| Eli Lilly and Company                            |
| Elkay Manufacturing Company                      |
| Emerson Electric Co.                             |
| Enbridge Energy Partners                         |
| Energy Transfer Partners, L.P.                   |
| EnergySolutions                                  |
| EnLink Midstream (formerly Crosstex Energy)      |
| Enterprise Products Partners L.P.                |
| Equifax Inc.                                     |
| ESCO Technologies Inc.                           |
| Essilor of America, Inc.                         |
| Express Scripts, Inc.                            |
| Federal Aviation Administration                  |
| Fellowes, Inc.                                   |
| Ferrara Candy Company                            |
| Ferrellgas Partners, L.P.                        |
| FirstEnergy Corp.                                |
| Fiserv, Inc.                                     |
| Florida Municipal Power Agency                   |
| Flowserve Corporation                            |
| Fortune Brands Home & Security               |
| Freescale Semiconductor, Inc.                    |
| GAF Materials Corporation                        |
| GATX Corporation                                 |
| Gemological Institute of America                 |
| General Dynamics Corporation                     |
| General Mills, Inc.                              |
| General Motors Company                           |
| Genesis Energy LLC                               |
| GNC Corporation                                  |

|                                                           |
|-----------------------------------------------------------|
|                                                           |
| Gordon Food Service                                       |
| Great River Energy                                        |
| Gruma Corporation                                         |
| H&R Block                                             |
| H. P. Hood Inc.                                           |
| H.B. Fuller Company                                       |
| Halliburton Company                                       |
| Hallmark Cards, Inc.                                      |
| Hamra Enterprise                                          |
| Hanesbrands Inc.                                          |
| Harland Clarke                                            |
| Haworth, Inc.                                             |
| HCA Holdings, Inc.                                        |
| HD Supply                                                 |
| Hendrickson                                               |
| Herman Miller, Inc.                                       |
| Hillshire Brands                                          |
| Hilton Worldwide                                          |
| HNTB¹                                                |
| Hooters of America                                        |
| Hormel Foods Corporation                                  |
| Hubbell Incorporated                                      |
| Huntington Ingalls Industries                             |
| Hyatt Hotels Corporation                                  |
| Hy-Vee, Inc.                                              |
| Illinois Tool Works Inc.                                  |
| IMS Health Inc.                                           |
| Ingersoll-Rand plc                                        |
| Ingram Industries Inc.                                    |
| Ingredion (Former Name Corn Products International, Inc.) |
| International Paper Company                               |
| Intersil                                                  |
| Iron Mountain Incorporated                                |
| ITT Corporation                                           |
| J. C. Penney Company, Inc.                                |
| J. R. Simplot Company                                     |
| James Hardie                                              |
| Johns Manville Corporation                                |
| Johnson & Johnson                                     |
| Johnson Controls, Inc.                                    |
| Jones Lang LaSalle Incorporated                           |
| Joy Global Inc.                                           |
| Kellogg Company                                           |
| Kelly Services, Inc.                                      |
| Kimberly-Clark Corporation                                |
| Kinder Morgan, Inc.                                       |
| Kohler Company                                            |
| Kohl's Corporation                                        |
| KONE, Inc.                                                |
| Krispy Kreme Doughnuts Inc                                |
| Kronos Incorporated                                       |
| L.L. Bean, Inc.                                           |

----

|                                       |
|---------------------------------------|
|                                       |
| L-3 Communications Holdings, Inc.     |
| Lafarge North America Inc.            |
| Lam Research                          |
| Land O'Lakes                          |
| Laureate Education, Inc.              |
| Leggett & Platt, Incorporated     |
| Leidos Holdings, Inc.                 |
| Lennox International Inc.             |
| Linear Technology                     |
| Lockheed Martin Corporation           |
| L'Oreal USA, Inc.                     |
| Lowe's Companies, Inc.                |
| Magellan Midstream Partners, L.P.     |
| Markwest Energy Partners              |
| Marriott International, Inc.          |
| Martin Marietta Materials, Inc.       |
| Mary Kay Inc.                         |
| Masco Corporation                     |
| Mattel, Inc.                          |
| McCormick & Company, Incorporated |
| McDonald's Corporation                |
| McKesson Corporation                  |
| Mead Johnson Nutrition Company        |
| Mednax, Inc                           |
| Mercedes Benz USA LLC                 |
| Merck & Co., Inc.                 |
| MGE Energy, Inc.                      |
| Milliken & Company                |
| Mittal Steel USA Inc.                 |
| Mohawk Industries, Inc.               |
| Mondelez International, Inc.          |
| Mueller Water Products, Inc.          |
| Navigant Consulting, Inc.             |
| Navistar International                |
| NCR Corporation                       |
| Nestle Purina Petcare Company         |
| Nestle USA, Inc.                      |
| New York Power Authority              |
| NewMarket Corporation                 |
| NewPage Corporation                   |
| NIKE, Inc.                            |
| Nintendo of America, Inc.             |
| NiSource Inc.                         |
| Nordstrom, Inc.                       |
| Northrop Grumman Corporation          |
| Northshore University Healthsystem    |
| Northwest Natural Gas Company         |
| NorthWestern Corporation              |
| Novo Nordisk Inc.                     |
| NRG Energy, Inc.                      |
| NuStar Energy LP                      |
| Office Depot, Inc.                    |
| OGE Energy Corp.                      |

|                                                |
|------------------------------------------------|
|                                                |
| Oglethorpe Power Corporation                   |
| Olin Corporation                               |
| On The Border Mexican Grill                    |
| One Gas, Inc.                                  |
| ONEOK, Inc.                                    |
| Oracle Corporation                             |
| Owens Corning                                  |
| P.F. Chang's China Bistro,Inc.                 |
| Packaging Corporation of America               |
| Papa John's International, Inc.                |
| Papa Murphy's International                    |
| Parker-Hannifin Corporation                    |
| Pentair, Inc.                                  |
| Pernod Ricard USA                              |
| PG&E Corporation                           |
| Pinnacle West Capital Corporation              |
| Pitney Bowes Inc.                              |
| PJM Interconnection LLC                        |
| PNM Resources, Inc.                            |
| Polaris Industries Inc.                        |
| PolyOne Corporation                            |
| ProBuild Holdings, Inc.                        |
| Public Company Accounting Oversight Board      |
| Public Service Enterprise Group Incorporated   |
| Public Utility District  1 of Chelan County    |
| PVH Corp.                                      |
| Quad-Graphics, Inc.                            |
| Quest Diagnostics Incorporated                 |
| Randstad North America L.P.                    |
| Raytheon Company                               |
| Realogy Corporation                            |
| Recommunity Recycling                          |
| Regis Corporation                              |
| Revlon, Inc.                                   |
| Reynolds American Inc.                         |
| Rich Products Corporation                      |
| Rio Tinto Alcan                                |
| Rite Aid Corporation                           |
| Robert Bosch LLC                               |
| Robert Half                                    |
| Rockwell Automation, Inc.                      |
| Rolls-Royce North America Holdings Inc.        |
| Rowan University                               |
| Ryder System, Inc.                             |
| S. C. Johnson & Son, Inc.                  |
| Sabic Innovative Plastics US LLC               |
| Sabre Industries, Inc.                         |
| Samsung Electronics America, Inc.              |
| Sandia National Laboratories                   |
| SCANA Corporation                              |
| Scholle Corporation                            |
| Schreiber Foods, Inc.                          |
| Science Applications International Corporation |

----

|                                     |
|-------------------------------------|
|                                     |
| Scientific Games Inc.               |
| Sears Holdings Corporation          |
| SemGroup Corp                       |
| Seminole Electric Cooperative, Inc. |
| Sempra Energy                       |
| Simpson Manufacturing Co., Inc.     |
| Sodexo, Inc.                        |
| Sonic Corp.                         |
| Sonoco Products Company             |
| Spectra Energy Corp                 |
| Sports Authority Inc.               |
| SPX Corporation                     |
| Stage Stores, Inc.                  |
| Standard Motor Products, Inc.       |
| Staples, Inc.                       |
| Steelcase Inc.                      |
| Summit Midstream Partners, LP       |
| SUPERVALU INC.                      |
| Sypris Solutions, Inc.              |
| SYSCO Corporation                   |
| Target Corporation                  |
| TE Connectivity Ltd.                |
| Tecumseh Products Company           |
| Teds Montana Grill                  |
| Teledyne Technologies Incorporated  |
| Tenneco Inc.                        |
| Terex Corporation                   |
| Texas Instruments Incorporated      |
| TGI Friday's¹²³      |
| The Bama Companies, Inc             |
| The Clorox Company                  |
| The Coca-Cola Company               |
| The Estee Lauder Companies Inc.     |
| The Hershey Company                 |
| The Krystal Company                 |
| The Marcus Corporation              |
| The Marmon Group LLC                |
| The MITRE Corporation               |
| The Nielsen Company                 |
| The Ohio State University           |
| The ServiceMaster Company           |
| The Sherwin-Williams Company        |
| The Stanley Works                   |
| The Timken Company                  |
| The Valspar Corporation             |
| The Walt Disney Company             |
| The Wendy's Company                 |
| The Williams Companies, Inc.        |
| Timken Steel                        |
| TreeHouse Foods, Inc                |
| Trinchero Family Estates            |
| True Value Company                  |
| Trugreen Chemlawn                   |

|                                   |
|-----------------------------------|
|                                   |
| Tyson Foods, Inc.                 |
| UIL Holdings Corporation          |
| Unilever United States Inc.       |
| United Continental Holdings, Inc. |
| United Launch Alliance, LLC       |
| United Parcel Service             |
| United Stationers Inc.            |
| United Technologies Corporation   |
| USD Partners LP                   |
| USG Corporation                   |
| Valero Energy Corporation         |
| Valmont Industries, Inc.          |
| VF Corporation                    |
| Viad Corp                         |
| Visteon Corporation               |
| Vulcan Materials Company          |
| W. L. Gore & Associates, Inc. |
| W.W. Grainger, Inc.               |
| Wabash National Corporation       |
| Waste Management, Inc.            |
| Waters Corporation                |
| Wegmans Food Markets, Inc.        |
| Wellhead Electric Company, Inc.   |
| WESCO International, Inc.         |
| Westinghouse Electric Company LLC |
| White Castle System Inc.          |
| WhiteWave Foods                   |
| Wisconsin Electric Power Company  |
| Wolters Kluwer U.S.               |
| Woodward Inc.                     |
| World Wrestling Entertainment     |
| Wyndham Worldwide Corporation     |
| Xylem, Inc                        |
| Yazaki North America, Inc.        |
| YKK Corporation of America        |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |
| A.O. Smith                                    | Berry Plastics | Cintas |
| AbbVie                                        | Best Buy | Clearwater Paper Corporation |
| Accenture                                     | Big Lots | Coca-Cola |
| ACH                                           | Biogen, Inc. | Coca-Cola Enterprises |
| Adecco                                        | Blount International | Colgate-Palmolive |
| ADT Security Services                         | BMC Software | Columbia Sportswear |
| Agilent Technologies                          | Bob Evans Farms | Comcast |
| Agrium                                        | Bombardier Transportation | CommScope |
| Aimia                                         | BorgWarner | Communications Systems |
| Air Products and Chemicals                    | Boston Scientific | Compass |
| Alcoa                                         | Brembo | ConAgra Foods |
| Alexander & Baldwin                       | Bridgestone Americas | Continental Automotive Systems |
| Alexion Pharmaceuticals                       | Bristol-Myers Squibb | Convergys |
| Altria Group                                  | Broadridge Financial Solutions | Cooper Standard Automotive |
| Amadeus North America                         | Brown-Forman | Corning |
| American Express Global Business Travel       | Brunswick | Cott Corporation |
| American Sugar Refining                       | Bunge | Covestro |
| Americas Styrenics                            | Burlington Northern Santa Fe | Cox Enterprises |
| AmerisourceBergen                             | Bush Brothers & Company | Crown Castle |
| AMETEK                                        | CA Technologies | CSC |
| Amgen                                         | Cablevision Systems | CSX |
| AMSTED Industries                             | Cabot | Cubic |
| Amway                                         | Calgon Carbon | Cumberland Gulf Group |
| Andersons                                     | Capsugel | Curtiss-Wright |
| Ansell                                        | Cardinal Health | Cushman & Wakefield |
| Arby's Restaurant Group                       | Cargill | CVR Energy |
| Archer Daniels Midland                        | Carlson | D&B |
| Arkema                                        | Carnival | Danaher |
| ARM                                           | Casey's General Stores | Darden Restaurants |
| Armstrong World Industries                    | Catalent Pharma Solutions | Dean Foods |
| Arrow Electronics                             | Catalyst Paper Corporation | Dell |
| Asbury Automotive Group                       | CDI | Delta Air Lines |
| Ashland                                       | CDK Global | Deluxe |
| AstraZeneca                                   | CDW | Dematic Group |
| AT&T                                      | Celanese | Dentsply Sirona |
| Automatic Data Processing                     | Celestica | DHL Supply Chain |
| Avnet                                         | CenturyLink | Diageo North America |
| Axiall Corporation                            | Cepheid | Diebold |
| BAE Systems                                   | CEVA Logistics | DJO Global, Inc. |
| Baker  Hughes                                 | CGI Technologies and Solutions | Domtar |
| Ball                                          | CH2M Hill | Donaldson |
| Barrick Gold of North America                 | Charter Communications | Dot Foods |
| Beam Suntory                                  | Chemours Company | Dow Chemical |
| Bechtel Nuclear, Security & Environmental | Chemtura | DuPont |
| Beckman Coulter                               | Chicago Bridge & Iron (CB&I) | E.W. Scripps |
| Becton Dickinson                              | CHS | Eastman Chemical |
| Bemis                                         | Cimpress | Eastman Kodak |

----

|                                 |
|---------------------------------|
|                                 |  |  |
| eBay                            | Hasbro | Keysight Technologies |
| Ecolab                          | HAVI Group | Keystone Foods |
| Edwards Lifesciences            | HD Supply | Kimberly-Clark |
| Eisai                           | Hearthside Food Solutions | Kinross Gold |
| Elementis                       | Henry Schein | Koch Industries |
| Eli Lilly                       | HERC | Kodak Alaris |
| Encana Services Company         | Herman Miller | Kohler |
| Endo                            | Hershey | L-3 Communications |
| EnPro Industries                | Hertz | Lafarge North America |
| Epson America                   | Hexcel | Land O'Lakes |
| Equifax                         | Hexion | Lear |
| Ericsson                        | Hilton Worldwide | Ledcor Group of Companies |
| ESCO                            | Hitachi Data Systems | Leggett and Platt |
| Estee Lauder                    | HNI | Lehigh Hanson |
| Esterline Technologies          | HNTB | Leidos |
| Experian Americas               | Hoffmann-La Roche | Lend Lease |
| Express Scripts                 | Hormel Foods | Lenovo |
| Federal-Mogul                   | Host Hotels & Resorts | Leprino Foods |
| Ferrovial                       | Houghton Mifflin Harcourt Publishing | Level 3 Communications |
| FIS                             | HP Inc. | Lexmark |
| Flowers Foods                   | Hunt Consolidated | LG Electronics |
| Flowserve                       | Husky Injection Molding Systems | Liberty Global |
| Fluor                           | IBM | Lifetouch |
| FOCUS Brands                    | IDEX Corporation | Lincoln Electric |
| Ford                            | IDEXX Laboratories | Lockheed Martin |
| Forsythe Technology             | iHeartMedia | Lonza |
| Frontier Communications         | IMS Health | L'Oreal |
| Fujitsu                         | INEOS Olefins & Polymers USA | Lubrizol |
| G&K Services                | Ingenico | Lutron Electronics |
| GAF Materials                   | Ingevity | LyondellBasell |
| Gap                             | Ingredion | Magellan Midstream Partners |
| Garmin                          | Intel | Makino |
| Gates                           | Intelsat | Marriott International |
| General Atomics                 | International Flavors & Fragrances | Mars Incorporated |
| General Cable                   | International Game Technology | Martin Marietta Materials |
| General Dynamics                | International Paper | Mary Kay |
| General Mills                   | Irvine | Masco |
| General Motors                  | Itron | Materion Corporation |
| Gilead Sciences                 | J. Crew | Mattel |
| Glatfelter                      | Jabil Circuit | Matthews International |
| GlaxoSmithKline                 | Jack in the Box | McCain Foods USA |
| GLOBALFOUNDRIES                 | Jacobs Engineering | McKesson |
| Goodyear Tire & Rubber      | JetBlue Airways | McLane Company |
| Graco                           | Johns Manville | Medtronic |
| Green, Tweed and Co.            | Johnson & Johnson | Merck & Co |
| H.B. Fuller                     | K. Hovnanian Companies | Meredith |
| Hallmark Cards                  | KB Home | Meritor |
| Halozyme Therapeutics           | KBR | Merrill |
| Hanesbrands                     | Kellogg | Metrie |
| Haribo                          | Kelly Services | Mettler-Toledo |
| Harley-Davidson                 | Kennametal | Micron Technology |
| Harman International Industries | Kerry Group | Microsoft |
| Harsco                          | Keurig Green Mountain | MillerCoors |

----

|                              |
|------------------------------|
|                              |  |  |
| Molex                        | Quintiles | Starbucks |
| Molson Coors Brewing         | R.R. Donnelley | Steelcase |
| Monsanto                     | Rackspace | Stolt-Nielsen |
| Mosaic                       | Ralph Lauren | Stryker |
| Motorsport Aftermarket Group | Rayonier Advanced Materials | Sucampo Pharmaceuticals |
| MTS Systems                  | Regency Centers | SunCoke Energy |
| Multi-Color                  | Regeneron Pharmaceuticals | SunOpta |
| Mylan                        | Revlon | SuperValu Stores |
| Navigant Consulting          | Reynolds Packaging | SWM International (Schweizer-Mauduit) |
| Navistar International       | Ricoh Americas | Sysco Corporation |
| NBTY                         | Rio Tinto | Takeda Pharmaceuticals |
| NCR                          | Ritchie Brothers Auctioneers | Talisman Energy USA |
| Neoris                       | Rockwell Automation | Target |
| New York Times               | Rockwell Collins | Taubman Centers |
| Newell Rubbermaid            | Rolls-Royce North America | TE Connectivity |
| Newmont Mining               | Royal Caribbean Cruises | TeleTech |
| Nike                         | Ryder System | Tempur Sealy |
| Nissan North America         | S.C. Johnson & Son | Teradata |
| Norfolk Southern             | Sabre Corporation | Terex |
| Nortek                       | Sage Software | Textron |
| Northrop Grumman             | SAIC | Thermo Fisher Scientific |
| Novartis                     | Saint-Gobain | ThyssenKrupp |
| Novelis                      | Samsung | Tiffany & Co. |
| Nu Skin Enterprises          | Sanofi | Time Warner |
| Nuance Communications        | SAS Institute | Time Warner Cable |
| Occidental Petroleum         | Sasol USA | Timken |
| Orbital ATK                  | Scholastic | TimkenSteel |
| Oshkosh                      | Schreiber Foods | T-Mobile USA |
| Osram Sylvania               | Schwan Food Company | Tobii Dynavox |
| Outerwall                    | Scotts Miracle-Gro | Toro |
| Owens Corning                | Scripps Networks Interactive | Total System Service (TSYS) |
| Oxford Instruments America   | Sealed Air | TransUnion |
| Panasonic of North America   | Sensient Technologies | Travel Leaders Group |
| PAREXEL                      | ServiceMaster Company | Travelport |
| Parker Hannifin              | SGS - Societe Generale de Surveillance | Tribune Media |
| Parmalat                     | Sherwin-Williams | TripAdvisor |
| Parsons Corporation          | Siemens | TRW Automotive |
| PayPal                       | Smith & Nephew | Tupperware Brands |
| PepsiCo                      | Snap-on | Tyson Foods |
| Pfizer                       | Snyder's Lance | Underwriters Laboratories |
| Philip Morris                | Sodexo | Unilever United States |
| Pitney Bowes                 | Sonic Corp | Unisys |
| Polaris Industries           | Sonoco Products | United States Cellular |
| PolyOne                      | Sony | United States Steel |
| Potash                       | Sony Electronics | United Technologies Corporation (UTC) |
| Praxair                      | Southwest Airlines | UPS |
| PulteGroup                   | Spirit AeroSystems | USG Corporation |
| Puratos                      | SPX Corporation | Valero Energy |
| Purdue Pharma                | SPX FLOW | Vantiv |
| Quaker Chemical              | St. Jude Medical | Vectrus |
| Qualcomm                     | Stanley Black & Decker | Ventura Foods |
| Quest Diagnostics            | Stantec | Verizon |

----

|                        |
|------------------------|
|                        |  |  |
| Vertex Pharmaceuticals | Walt Disney | Wilsonart |
| Viacom                 | Waste Management | Wood Mackenzie |
| Viad                   | Watts Water Technologies | Worthington Industries |
| Vista Outdoor          | Welltower | Xilinx |
| Visteon                | Wendy's Group | Xylem |
| Vizient                | West Pharmaceutical Services | YP |
| Vulcan Materials       | Westinghouse Electric | Zebra Technologies |
| VWR International      | WestRock | Zimmer Biomet |
| W.R. Grace             | Weyerhaeuser |   |
| Walmart                | Whirlpool |   |

----

----