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

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

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

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

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|        |
|--------|
|        |  |  |
|   | l | Elect as directors the nominees named in the accompanying proxy statement; |
|   | l | Ratify the appointment of our independent registered public accounting firm; |
|   | l | Act on an advisory vote on executive compensation as disclosed in this proxy statement; |
|   | l | Act on a proposal to amend and restate our certificate of incorporation to eliminate a supermajority voting provision and the no longer outstanding Class B Common Stock; |
|   | l | Act on a proposal to amend and restate our certificate of incorporation to eliminate a number of provisions that have either lapsed by their terms or which concern classes of securities no longer outstanding; and |
|   | l | Act upon any other matters properly brought before the annual meeting. |

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

----

|                                                                                                                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                  |  |
| EXECUTIVE SUMMARY                                                                                                                                                                                                                | 2 |
| FREQUENTLY ASKED QUESTIONS REGARDING ATTENDANCE AND VOTING                                                                                                                                                                       | 5 |
| PROPOSAL 1 – ELECTION OF DIRECTORS                                                                                                                                                                                         | 10 |
| CORPORATE GOVERNANCE                                                                                                                                                                                                             | 16 |
| CORPORATE GOVERNANCE GUIDELINES                                                                                                                                                                                                  | 16 |
| RELATED PARTY TRANSACTIONS AND APPROVAL POLICY                                                                                                                                                                                   | 16 |
| DIRECTOR INDEPENDENCE DETERMINATIONS                                                                                                                                                                                             | 17 |
| BOARD LEADERSHIP STRUCTURE                                                                                                                                                                                                       | 17 |
| RISK OVERSIGHT                                                                                                                                                                                                                   | 18 |
| NOMINATING DIRECTORS                                                                                                                                                                                                             | 18 |
| BOARD COMMITTEES AND MEETINGS                                                                                                                                                                                                    | 20 |
| COMMUNICATION WITH THE BOARD                                                                                                                                                                                                     | 21 |
| CODE OF CONDUCT                                                                                                                                                                                                                  | 22 |
| AUDIT COMMITTEE REPORT                                                                                                                                                                                                           | 23 |
| PERSONS OWNING MORE THAN FIVE PERCENT OF NAVISTAR COMMON STOCK                                                                                                                                                                   | 24 |
| NAVISTAR COMMON STOCK OWNED BY EXECUTIVE OFFICERS AND DIRECTORS                                                                                                                                                                  | 26 |
| COMPENSATION                                                                                                                                                                                                                     | 28 |
| COMPENSATION COMMITTEE REPORT                                                                                                                                                                                                    | 28 |
| COMPENSATION DISCUSSION AND ANALYSIS                                                                                                                                                                                             | 28 |
| Executive Summary                                                                                                                                                                                                                | 29 |
| Detailed Review of Executive Compensation                                                                                                                                                                                        | 31 |
| EXECUTIVE COMPENSATION TABLES                                                                                                                                                                                                    | 44 |
| COMPENSATION RISK                                                                                                                                                                                                                | 61 |
| COMPENSATION OF DIRECTORS                                                                                                                                                                                                        | 62 |
| EQUITY COMPENSATION PLAN INFORMATION                                                                                                                                                                                             | 65 |
| PROPOSAL 2 – RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                                                                                                                                 | 67 |
| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FEE INFORMATION                                                                                                                                                                    | 68 |
| PROPOSAL 3 – ADVISORY VOTE ON EXECUTIVE COMPENSATION                                                                                                                                                                       | 69 |
| PROPOSAL 4  - THE AMENDMENT AND RESTATEMENT OF THE COMPANY'S CERTIFICATE OF INCORPORATION TO ELIMINATE THE SUPERMAJORITY VOTING PROVISION AND THE NO LONGER OUTSTANDING CLASS B COMMON STOCK                                     | 70 |
| PROPOSAL 5 - THE AMENDMENT AND RESTATEMENT OF THE COMPANY'S CERTIFICATE OF INCORPORATION TO ELIMINATE A NUMBER OF PROVISIONS THAT HAVE EITHER LAPSED BY THEIR TERMS OR WHICH CONCERN CLASSES OF SECURITIES NO LONGER OUTSTANDING | 72 |
| OTHER MATTERS                                                                                                                                                                                                                    | 73 |
| Section 16(a) Beneficial Ownership Reporting Compliance                                                                                                                                                                     | 73 |
| Availability of Form 10-K and Annual Report to Stockholders                                                                                                                                                                      | 73 |
| Matters Raised at the Meeting not Included in this Proxy Statement                                                                                                                                                               | 73 |
| ADMISSION AND TICKET REQUEST PROCEDURE                                                                                                                                                                                           | 74 |
| APPENDIX A - AON HEWITT'S 2013 TCM SURVEY                                                                                                                                                                                        | C-1 |
| APPENDIX B- TOWERS WATSON 2014 CDB GENERAL INDUSTRY EXECUTIVE COMPENSATION SURVEY REPORTS                                                                                                                                        | C-6 |
| APPENDIX C -  PROPOSED RESTATED CHARTER                                                                                                                                                                                          | C-10 |

----

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

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | In August 2014, Samara A. Strycker replaced Richard Tarapchak as Senior Vice President and Corporate Controller of the Company; |

|         |                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In November 2014, Bill Kozek, previously Navistar, Inc.'s President of North America Truck and Parts, was promoted to President, Truck and Parts, and added export truck and parts sales, product planning and Navistar Defense to his responsibilities; |

|         |                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In November 2014,  Persio Lisboa, previously Navistar, Inc.'s Senior Vice President and Chief Procurement Officer, was promoted to President, Operations, and added product development, manufacturing, and global businesses to his responsibilities; |

|         |                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In November 2014, Walter Borst, the Company's Executive Vice President and Chief Financial Officer, added business development, mergers and acquisition, and corporate strategic planning to his responsibilities; and |

|         |                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In December 2014, John J. Allen, the Company’s Executive Vice President and Chief Operating Officer retired after more than 33 years of service to the Company. |

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|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | 9 of 10 director nominees are independent under ours 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 with respect to directors who fail to obtain a majority vote; |

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

|         |                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 all employees; |

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

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

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

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|         |                                                       |
|---------|-------------------------------------------------------|
| • | We approved a revised Annual Incentive Plan for 2014; |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | We approved Long-Term Incentive ("LTI") awards based on an assessment of performance and potential; |

|         |                                                                  |
|---------|------------------------------------------------------------------|
| • | We implemented a new Executive Stock Ownership Program ("ESOP"); |

|         |                                   |
|---------|-----------------------------------|
| • | We implemented a clawback policy; |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | We implemented revisions to our Executive Severance Agreement ("ESA"); and |

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

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

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

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

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

|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | FOR the approval of the amendment and restatement of our certificate of incorporation to eliminate  a supermajority voting provision and the no longer outstanding Class B Common Stock (Proposal 4); and |

|         |                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | FOR the approval of the amendment and restatement of our certificate of incorporation to eliminate a number of provisions that have either lapsed by their terms or which concern classes of securities no longer outstanding (Proposal 5). |

|         |                                                   |
|---------|---------------------------------------------------|
| • | Stockholders of record on December 15, 2014; |

|         |                                                                                     |
|---------|-------------------------------------------------------------------------------------|
| • | An authorized proxy holder of a stockholder of record on December 15, 2014; or |

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

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

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

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

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

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

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

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Proposal 4 (approval of the amendment and restatement of our certificate of incorporation to eliminate the supermajority voting provision and the no longer outstanding Class B Common Stock) requires the affirmative vote or consent of the greater of (a) the holders of at least 85% of the shares of Common Stock present in person or by proxy at the Annual Meeting and entitled to vote; and (b) the holders of a majority of the voting power of all of our outstanding shares of Common Stock. |

|         |                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Proposal 5 (approval of the amendment and restatement of our certificate of incorporation to eliminate a number of provisions that have either lapsed by their terms or which concern classes of securities no longer outstanding) requires the affirmative vote of the holders of a majority of the voting power of all of our outstanding shares of Common Stock. |

----

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

|  |
|--|
|  |  |
|  | Troy A. Clarke, 59, Director since April 2013.  Mr. 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.  Mr. Clarke has served on the board of directors of Fuel Systems Solutions, Inc., a public alternative fuel components and systems company, since December 2011.Mr. Clarke's vast experience in the automotive industry over the past 39 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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|  |
|--|
|  |  |
|  | John D. Correnti,* 67, Director since October 1994 (Committees: Compensation (Chair) and Nominating and Governance).  Mr. Correnti serves as Chairman and Chief Executive Officer of Big River Steel, LLC, a steel mill operational and development company, since 2010.  Prior to this position he was the Chairman and Chief Executive Officer of Steel Development Company, LLC, a steel mill operational and development company, from 2007 to 2010 and President and Chief Executive Officer of SeverCorr, LLC, a manufacturer of high quality flat-rolled steel products, from 2005 until 2008.  He was Chairman and Chief Executive Officer of SteelCorr, LLC from 2002 to 2005, and Chairman and Chief Executive Officer of Birmingham Steel Corporation, a manufacturer of steel and steel products, from 1999 to 2002.  Mr. Correnti served as Chief Executive Officer, President and Vice Chairman of Nucor Company, a mini mill manufacturer of steel products, from 1996 to 1999, and as its President and Chief Operating Officer and as a director from 1991 to 1996.  He is Executive Chairman of the Board of Directors of Silicor Material, a private silicon manufacturer, since 2010, Chairman of Mississippi Silicon, a silicon metal manufacturer, since 2010, Chairman of BlueOak Resources, a private electronic waste recycling company, since 2010, and a director of Corrections Corporation of America, a public provider of correctional solutions, since 2000.  He also serves on the Clarkson University Board of Trustees.Mr. Correnti’s executive leadership and experience gained through his service as a chief executive of established and start-up companies, both public and private, and his public company director experience contribute significantly to the capabilities and composition of our Board.  His skills and experience in accounting, corporate governance, distribution, engineering, human resources, compensation, and employee benefits, manufacturing (domestic and international), marketing, mergers and acquisitions, domestic sales and distribution and purchasing matters well qualifies him to serve on our Board. |

|  |
|--|
|  |  |
|  | Michael N. Hammes,* 73, Director since February 1996 (Committees: Finance and Nominating and Governance (Chair)).  Mr. Hammes also served as Lead Director of the Company from December 2007 to April 2013.  He served as Chairman and Chief Executive Officer of Sunrise Medical Inc., which designs, manufacturers and markets home medical equipment worldwide, from 2000 until his retirement as Chief Executive Officer in 2007 and as Chairman in 2008.  He was Chairman and Chief Executive Officer of the Guide Corporation, an automotive lighting business, from 1998 to 2000. He was also Chairman and Chief Executive Officer of The Coleman Company, Inc., a manufacturer and distributor of camping and outdoor recreational products and hardware/home products, from 1993 to 1997, and held a variety of executive positions with Ford and Chrysler including President of Chrysler’s International Operations and President of Ford’s European Truck Operations. He is a director of James Hardie, a public fibre cement technology company, since February 2007 and its Chairman since January 2008.  He is also a director of Dynavox, Inc., a public speech-generating devices company, since April 2010 and a director of DeVilbiss Healthcare, a private manufacturer of respiratory medical products, since 2010.As a result of these professional and other experiences, including his experience as a member of other public company boards of directors, Mr. Hammes possesses particular knowledge and experience in a variety of areas, including accounting, corporate governance, distribution, finance, manufacturing (domestic and international), marketing, international sales/distribution and product development, which strengthens the Board’s collective knowledge, capabilities and experience.  Likewise, his experience and leadership in serving as Chairman and Chief Executive Officer for three different companies for fifteen years well qualifies him to serve on our Board. |

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|  |
|--|
|  |  |
|  | Vincent J. Intrieri,* 58, Director since October 2012 (Committees: Finance (Co-Chair) and Nominating and Governance).  Mr. 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: Hertz Global Holdings, Inc., a company engaged in the car rental business, since September 2014; Transocean Ltd., a provider of offshore contract drilling services for oil and gas wells, since May 2014; and Chesapeake Energy Corporation, an oil and gas exploration and production company, since June 2012.  Mr. Intrieri was previously: 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 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; chairman of the board and a director of Viskase Companies, Inc., a meat casing company, from April 2003 to March 2011; and a director of WCI Communities, Inc., a homebuilding company, from August 2008 to September 2009. 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 a non−controlling interest in Hertz, Transocean, Forest Laboratories, Navistar, Chesapeake Energy, Dynegy, Motorola Solutions and WCI Communities through the ownership of securities. Mr. Intrieri graduated in 1984, with distinction, from The Pennsylvania State University (Erie Campus) with a B.S. in Accounting and was a certified public accountant.  He possesses strong skills and experience in accounting, corporate governance, finance, mergers and acquisitions and treasury matters. Mr. Intrieri's significant experience as a director of various companies enables him to understand complex business and financial issues, which contributes greatly to the capabilities and composition of our Board and well qualifies him to serve on our Board. |

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|  |
|--|
|  |  |
|  | James H. Keyes,* 74, Director since December 2002; Chairman since April 2013 (Committees: Audit (Chair) and Compensation).  Mr. Keyes retired as Chairman of the Board of Johnson Controls, Inc., a public automotive system and facility management and control company, in 2003, a position he had held since 1993.  He served as Chief Executive Officer of Johnson Controls, Inc. from 1988 until 2002.  He retired as a director of Pitney Bowes, Inc. in May 2013 and is a member of the Board of Trustees of Fidelity Mutual Funds.  He was also a director of LSI Logic Corporation, an electronics company that designs semiconductors and software that accelerate storage and networking in datacenters and mobile networks, from 1983 until 2008.Mr. Keyes has broad experience as a former chief executive officer of a public company, experience as a certified public accountant, experience as a member of other public company boards of directors, and he has a Masters degree in Business Administration.  He possesses strong skills and experience in accounting, corporate governance, finance, human resources/compensation/employee benefits, manufacturing (domestic and international), mergers and acquisitions and treasury matters, which well qualifies him to serve on our Board. |

|  |
|--|
|  |  |
|  | General (Retired) Stanley A. McChrystal,* 60, Director since February 2011 (Committees: Compensation and Nominating and Governance).  Gen. McChrystal is a retired 34-year U.S. Army veteran of multiple wars.  He commanded the U.S. and NATO’s security mission in Afghanistan, served as the director of the Joint Staff and was the Commander of Joint Special Operations Command, where he was responsible for the nation’s deployed military counter terrorism efforts.  Gen. McChrystal is a graduate of the United States Military Academy at West Point, the United States Naval Command and Staff College and was a military fellow at both the Council on Foreign Relations and the Kennedy School of Government at Harvard University.  Gen. McChrystal has been serving as a member of the Board of Directors of JetBlue Airways Corporation, a public commercial airline, since 2010, Chairman of the Board of Siemens Government Technologies, Inc., a wholly-owned indirect subsidiary and a Federal Business Entity of Siemens AG, since December 2011, and a member of the Board of Advisors of General Atomics, a private high-technology systems company ranging from the nuclear fuel cycle to remotely operated surveillance aircraft, airborne sensors, and advanced electric, electronic, wireless and laser technologies, since August 2011.  In 2011, Gen. McChrystal co-founded McChrystal Group, a leadership consulting firm.  He also teaches a seminar on leadership at the Jackson Institute for Global Affairs at Yale University and serves alongside his wife on the Board of Directors for the Yellow Ribbon Fund, a non-profit organization committed to helping wounded veterans and their families.As a former senior military leader, Gen. McChrystal has experience in logistics, talent management and experience with government and regulatory affairs and military contracting. Gen. McChrystal’s years of military leadership and service are of great value to the Board as the Company makes decisions in respect of its global and military businesses. |

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|  |
|--|
|  |  |
|  | Samuel J. Merksamer,* 34, Director since December 2012 (Committees: Audit and Compensation). Mr. Merksamer has served as a Managing Director of Icahn Capital LP, a subsidiary 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), where he has been employed 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:  Transocean Partners LLC, a holding company with subsidiaries that own and operate ultra-deepwater drilling rigs, since November 2014; a Hertz Global Holdings, Inc., a company engaged in the car rental business, since September 2014; Hologic, Inc., a supplier of diagnostic, medical imaging and surgical products, since December 2013; Talisman Energy Inc., an independent oil and gas exploration and production company, since December 2013; Transocean Ltd., a provider of offshore contract drilling services for oil and gas wells, since May 2013; and Ferrous Resources Limited, an iron ore mining company with operations in Brazil, since November 2012. Mr. Merksamer was previously 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 September 2014; CVR Refining, LP, an independent downstream energy limited partnership, from September 2012 to May 2014; Federal−Mogul 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. 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 a non-controlling interest in Hertz, Transocean, Navistar, Ferrous Resources and Dynegy Inc. through the ownership of securities.Mr. Merksamer received an A.B. in Economics from Cornell University in 2002.  Mr. Merksamer's significant experience as a director of various companies enables him to understand complex business and financial issues.  He possesses strong skills and experience in accounting, corporate governance, finance, human resources/compensation/employee benefits, mergers and acquisitions and treasury matters, which contributes greatly to the capabilities and composition of our Board and qualifies him to serve on our Board. |

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|  |
|--|
|  |  |
|  | Mark H. Rachesky, M.D.,* 55, Director since October 2012 (Committees: Finance (Co-Chair) and Nominating and Governance).  Dr. Rachesky is the founder and President of MHR Fund Management LLC, an investing firm that manages approximately $5 billion of assets and utilizes a private equity approach to investing in middle market companies with an emphasis on special situation and distressed investments.  Dr. Rachesky serves as a member and chairman of the board of directors of Loral Space & Communications Inc., a public satellite communications company, since 2005, Lions Gate Entertainment Corp., a public entertainment company, since 2009 and Telesat Canada, a satellite company, since 2007.  He is also 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 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.Dr. Rachesky brings significant corporate finance and business expertise to our Board due to his background as an investor and fund manager.  Dr. Rachesky also has significant expertise and perspective as a member of the boards of directors of private and public companies engaged in a wide range of businesses.  Dr. Rachesky's broad and insightful perspectives relating to economic, financial and business conditions affecting the Company and its strategic direction well qualifies him to serve on our Board. |

|  |
|--|
|  |  |
|  | Michael Sirignano* 33, Director since March 2014 (Committees: Compensation and Audit) Mr. Sirignano has served as a Principal at MHR Fund Management LLC since 2012 where he is responsible for sourcing and managing investments and portfolio companies.  From 2006 to 2011, Mr. Sirignano was at Owl Creek Asset Management, L.P. which is a value-oriented investment firm.  Mr. Sirignano held various titles, most recently Senior Analyst.  Mr. Sirignano was focused primarily on equities and distressed debt in the industrial, housing, metals and mining, telecommunication and technology sectors.  Prior to that, Mr. Sirignano was a member of Rothschild’s restructuring group where he worked on restructurings, refinancing transactions and sale processes for distressed companies.  Mr. Sirignano holds a B.A. in Economics, with honors, from Williams College.Mr. Sirignano brings significant corporate finance and business expertise to our Board due to his experience as an analyst across a number of industries and his focus on equity and debt securities. |

|  |
|--|
|  |  |
|  | Dennis D. Williams,* ** 61, Director since June 2006. (Committee: Audit and Finance).  Mr. 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.  Mr. Williams was elected as a director in June 2006 to fill the seat previously held by David McAllister, the former UAW director who held this position from 2001 until his removal by the UAW in June 2006. |

----

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The first originally occurred in August 2008 and relates to our Senior Vice President and Treasurer, James M. Moran, whose wife, Kristin Moran, is currently employed as a Senior Counsel of Navistar, Inc.   Mrs. Moran has received annual compensation and benefits for calendar 2014 of less than $235,000, which includes base salary, annual incentive, Company 401(k) matching contributions and other standard benefits available to all employees generally, and was granted 415 cash settled restricted stock units.  Mrs. Moran’s compensation and benefits are comparable to other employees with equivalent qualifications, experience, and responsibilities at the Company.  Moreover, Mrs. Moran’s annual compensation is market bench-marked periodically by our Corporate Compensation Department and determined outside of the related person’s reporting structure.  This transaction is subject to our Policy and Procedures with Respect to Related Person Transactions because Mr. Moran is an executive officer of the Company.  This transaction did not require approval, however, and is permissible under our Policy and Procedures with Respect to Related Person |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The second occurred throughout 2014 and was ratified by the Board, upon the recommendation of the Audit Committee, in December 2014 and relates to Carl Icahn, a 17.61% stockholder of the Company, and Federal-Mogul Corporation (“Federal-Mogul”).   Navistar purchased goods and services from Federal-Mogul throughout 2014 that amounted to approximately $14,650,000.  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. |

----

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

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

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

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

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

----

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

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

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

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

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

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

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |
| Committee Membership(as of December 12, 2014)             |
|                                                      | Audit |   | Compensation |   | Finance |   | Nominating & Governance |   |
| Troy A. Clarke                                                 |   |   |   |   |   |   |   |   |
| John D. Correnti                                               |   |   | ü | * |   |   | ü |   |
| Michael N. Hammes                                              |   |   |   |   | ü |   | ü | * |
| Vincent J. Intrieri                                            |   |   |   |   |  ü | * |  ü |   |
| James H. Keyes                                                 | ü | * | ü |   |   |   |   |   |
| Stanley A. McChrystal                                          |   |   | ü |   |   |   |  ü |   |
| Samuel J. Merksamer                                            | ü |   | ü |   |   |   |   |   |
| Mark H. Rachesky                                               |   |   |   |   |  ü | * |  ü |   |
|        Michael F. Sirignano | ü |   | ü |   |   |   |   |   |
| Dennis D. Williams                                             |  ü |   |   |   | ü |   |   |   |

----

----

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

----

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

----

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

|                                                                                          |
|------------------------------------------------------------------------------------------|
|                                                                                          |  |  |  |  |
| Name and Address                                                                         | Total Amount and Nature of Beneficial Ownership |   | Percent of Class (A) |
| Carl C. Icahnc/o Icahn Associates Corp., 767 Fifth Avenue, Suite 4700 New York, NY 10153 | 14,337,524 | (B) | 17.60 | % |
| Franklin Resources, Inc.One Franklin ParkwaySan Mateo, CA 94403-1906                     | 14,153,339 | (C) | 17.40 | % |
| Mark H. Rachesky, M.D.40 West 57th Street, 24th floorNew York, NY 10019        | 13,999,331 | (D) | 17.20 | % |
| GAMCO Investors, Inc. et. al.One Corporate Center Rye, NY 10580-1435                     | 8,210,182 | (E) | 10.10 | % |
| Discovery Capital Management LLC20 Marshall StreetSouth Norwalk, CT 06854                | 5,051,833 | (F) | 6.20 | % |

|     |
|-----|
|     |  |
| (A) | Applicable percentage ownership is based upon 81,414,738 shares of Common Stock outstanding as of November 30, 2014. |
| (B) | As reported in Schedule 13D/A filed with the SEC on April 15, 2014 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 2,867,504 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 4,663,117 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 6,806,903 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 Schedule 13G/A filed with the SEC on February 5, 2014 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. |
| (D) | As reported in (a) a Schedule 13D/A filed with the SEC on June 23, 2014 by MHR Institutional Partners III LP, MHR Institutional Advisors III LLC, MHR Fund Management LLC, MHR Holdings LLC and Dr. Rachesky (collectively, the “MHR Reporting Persons”); and (b) Forms 4 filed by Dr. Rachesky during our year ended October 31, 2014.  MHR Institutional Partners III LP and MHR Institutional Advisors III LLC each has sole voting and dispositive power over 12,740,281 shares of Common Stock. MHR Fund Management LLC and MHR Holdings LLC have sole voting and dispositive power over 13,984,753 shares of Common Stock. Dr. Rachesky has sole voting and dispositive power over 14,000,997 shares of Common Stock, which includes (a) 13,984,752 shares of Common Stock beneficially owned by Dr. Rachesky as the managing member of the other Reporting Persons; (b) 2,470 shares of Common Stock held directly by Dr. Rachesky; (c), options to purchase 10,000 shares of Common Stock granted to Dr. Rachesky in his capacity as a director; and (d) 1,775 shares of Common Stock that may be obtained upon settlement of phantom stock units granted to Dr. Rachesky in his capacity as a director. The shares reported herein are held for the accounts of (a) MHR Capital Partners Master Account LP, (b) MHR Capital Partners (100) LP, and (c) MHR Institutional Partners III LP. |

----

|     |
|-----|
|     |  |
| (E) | As reported in a Schedule 13D/A filed with the SEC on September 6, 2013, by Gabelli Funds, LLC, GAMCO Asset Management, Inc., Gabelli Securities, Inc., Gabelli Foundation, Inc., MJG Associates, Inc., MJG-IV Limited Partnership, Teton Advisors, Inc., and Mario J. Gabelli (collectively, the "Gabelli Reporting Persons"). The Gabelli Reporting Persons reported the following: Gabelli Funds LLC has sole voting and dispositive power with regard to 2,577,334 shares of Common Stock, GAMCO Asset Management Inc. has sole voting power with regard to 5,161,348 shares of Common Stock and sole dispositive power with regard to 5,548,848 shares of Common Stock, Gabelli Securities, Inc. has sole voting and dispositive power with regard to 1,500 shares of Common Stock, Gabelli Foundation, Inc. has sole voting and dispositive power with regard to 9,000 shares of Common Stock, MJG Associates, Inc. has sole voting and dispositive power with regard to 3,000 shares of Common Stock, MJG-IV Limited Partnership has sole voting and dispositive power with regard to 2,000 shares of Common Stock, Teton Advisors, Inc. has sole voting and dispositive power with regard to 2,000 shares of Common Stock, Mr. Gabelli has sole voting and dispositive power with regard to 66,500 shares of Common Stock. Mr. Gabelli is deemed to have beneficial ownership of the shares of Common Stock owned beneficially by each of the foregoing entities due to the fact that he directly or indirectly controls or acts as chief investment officer for such entities. See the Schedule 13D/A filed by the Gabelli Reporting Persons for certain disclaimers of beneficial ownership. |
| (F) | As reported in a Schedule 13G filed with the SEC on February 14, 2014, by Discover Capital Management, LLC and Robert K. Citrone and (collectively, the “Discovery Reporting Persons”). The Discovery Reporting Persons share voting and dispositive power with regard to 5,051,833 shares of Common Stock. |

----

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

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |
| Name/Group                                                      | Owned (A) | Number ofDSUs,PSUs orRSUs Convertible into Common Stock (B) | ObtainableThrough StockOption Exercise | Total |   | Percentof Class |
| John J. Allen                                                   | 28,032 |  | 43,829 |  | 88,105 |  | 159,966 |  |   | * |  |
| Walter G. Borst                                                 | 7,285 |  | 3,457 |  | 19,596 |  | 30,338 |  |   | * |  |
| Troy A. Clarke                                                  | 54,100 |  | 3,865 |  | 260,212 |  | 318,177 |  |   | * |  |
| John D. Correnti                                                | 6,655 |  | 13,257 |  | 29,600 |  | 49,512 |  |   | * |  |
| Steven K. Covey                                                 | 25,810 |  | 3,601 |  | 143,206 |  | 172,617 |  |   | * |  |
| Michael N. Hammes                                               | 6,987 |  | — |  | 20,400 |  | 27,387 |  |   | * |  |
| Vincent J. Intrieri                                             | 592 |  | 1,231 |  | 5,000 |  | 6,823 |  |   | * |  |
| James H. Keyes                                                  | 4,008 |  | 16,424 |  | 29,600 |  | 50,032 |  |   | * |  |
| Stanley A. McChrystal                                           | 1,508 |  | 10,796 |  | 10,000 |  | 22,304 |  |   | * |  |
| Samuel J. Merksamer                                             | 592 |  | 585 |  | 5,000 |  | 6,177 |  |   | * |  |
| Mark H. Rachesky(C)                                             | 13,987,223 |  | 2,108 |  | 5,000 |  | 13,994,331 |  |   | 17.2 |  |
| Michael Sirignano                                               | — |  | 1,921 |  | — |  | 1,921 |  |   | * |  |
| Eric Tech                                                       | 15,470 |  | 1,355 |  | 53,802 |  | 70,627 |  |   | * |  |
| Dennis D. Williams(D)                                           | — |  | — |  | — |  | — |  |   | * |  |
| All Directors and Executive Officers as a Group (20 persons)(E) | 14,167,923 |  | 106,973 |  | 757,547 |  | 15,032,443 |  | (F)  | 18.5 |  |

|         |                                                                      |
|---------|----------------------------------------------------------------------|
|  * | 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, 2014, 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 2014 by MHR Institutional Partners III LP, MHR Institutional Advisors III LLC, MHR Fund Management LLC, MHR Holdings LLC and Dr. Rachesky.  See also Footnote D to the section Persons Owning More Than Five Percent of Navistar Common Stock in this proxy statement. |

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

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

|     |                                                                                                                                                                                                  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (F) | Includes 7,911 shares over which there is shared voting and investment power by certain executive officers (not including the NEOs) included in the Directors and Executive Officers as a group. |

----

----

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

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

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

----

|         |                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------|
| • | Based on 2014 results, LTI awards for 2014 based on Operating Cash Flow are not projected to payout. |

|         |                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------|
| • | Approved LTI awards based on an assessment of each executive with respect to both performance  and potential; |

|         |                                                          |
|---------|----------------------------------------------------------|
| • | Modified LTI awards to reflect actual grant date values; |

|         |                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Implemented a new Executive Stock Ownership Program which increased ownership multiples,  added retention requirements, and eliminated premium shares; |

|         |                                                                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Implemented a new 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; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Implemented 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 period post-Change in Control ("CIC"); (ii) modifications to the definition of CIC; (iii) reducing the duration of the post-CIC period and (iv) inclusion of the Company’s ability to recoup incentive pay under the Company’s clawback policy; |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | Amended the Executive Severance Agreement to exclude pro-rata bonus from the calculation of any pension/retirement benefit; and |

|         |                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Used a new peer group with Navistar at the median based on revenue and enterprise value and applied statistical regression based on revenue to benchmark executive compensation. |

----

|         |                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------|
| • | The 2013 LTI performance targets were met for 50% of the grant and are not likely to be met for the other 50%. |

|         |                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------|
| • | The 2014 LTI performance targets are out of reach for 50% of the grant and very challenging for the other 50%. |

|         |                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Aligning base pay with individual performance. While our NEOs did not receive base pay adjustments due to Company performance, merit increases for other employees were based on individual performance. |

|         |                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Continuing to have 100% performance-based LTI awards, with grant sizes adjusted on the bases of not only past performance of the individual, but their long-term potential in the organization. |

|         |                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Aligning AI with key company performance targets.   In the current turnaround environment, we continue to emphasize "One Navistar" in favor of individual performance adjustments.  However, distinguished performance may be recognized at the individual level. |

----

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

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

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

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

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

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

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

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

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

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

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

----

|         |                                                                                 |
|---------|---------------------------------------------------------------------------------|
| • | The AI was paid at 40% of target for 2013 and no payment was made for 2014; and |

|         |                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The LTI awards based on performance targets of  earnings before interest, taxes, depreciation, amortization, pension and other post-employment obligations ("EBITDAPO") and market share are not projected to vest. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | At the time of Mr. Clarke's appointment from COO to CEO, he was awarded a significant equity grant of stock options in lieu of future grants under the Company's 2014, 2015, and 2016 LTI plan; however, half of the options granted are subject to a 125% premium exercise price and/or EBITDAPO and market share goals.  The time vesting stock options are scheduled to vest at the rate of 33-1/3% on each of the first three anniversaries, and performance vesting stock options vest as the performance goals pre-established by the Compensation Committee are satisfied. |

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

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

|         |                                                                |
|---------|----------------------------------------------------------------|
| ◦ | Annual Incentive plan target of $810,000 (90% of base salary); |

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

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

|         |                                                                         |
|---------|-------------------------------------------------------------------------|
| ▪ | with a grant date value of $3,659,358 awarded in 2014  (270,024 shares) |

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

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

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

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

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

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |
|                      | Contractual Terms | Annualized |
|                      | Fiscal  2013 |   | Fiscal  2014 | Fiscal  2015 | Fiscal  2013 | Fiscal  2014 | Fiscal  2015 |
| Annual Base Salary(1)     | $900,000 |   | $900,000 | $900,000 | $900,000 | $900,000 | $900,000 |
| Annual Incentive(2)       | $324,000 |   | $0 | $810,000 | $324,000 | $0 | $810,000 |
| Long-Term Incentive / COO | $2,563,033 |   | $0 | $0 | $2,563,033 | $0 | $0 |
| Long-Term Incentive / CEO | $10,602,643 | (3)  | $3,659,358 | $0 | $4,754,000 | $4,754,000 | $4,754,000 |
| Total Direct Compensation | $14,389,676 |   | $4,559,358 | $1,710,000 | $8,541,033 | $5,654,000 | $6,464,000 |

|     |                                                 |
|-----|-------------------------------------------------|
| (1) | Assumes base salary remains constant each year. |

|     |                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------|
| (2) | AI paid at 40% of target (target is 90% of base salary) for 2013; No AI paid for 2014; and assumes Target level for 2015. |

|     |                                                                                                                                                                                                  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Value excludes Premium Share Units in the amount of $46,017 awarded in conjunction with the Executive Stock Ownership Program. Premium shares have been discontinued effective November 1, 2013. |

|         |                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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; |

|         |                                        |
|---------|----------------------------------------|
| • | Sizeable International operations; and |

|         |                                           |
|---------|-------------------------------------------|
| • | Consideration of prior year's peer group. |

----

|                     |
|---------------------|
|                     |  |  |  |  |
|                | Trailing 4Q | Latest Quarter | 7/31/2013 | Composite |
|                | Net Revenue | Total Assets | Enterprise | Percentile |
| Company Name        | ($mil.) | ($mil.) | Value | Rank |
| Illinois Tool Works | $16,631 | $19,199 | $34,753 | 95% |
| PACCAR              | $16,042 | $19,202 | $26,222 | 91% |
| Cummins             | $16,846 | $13,048 | $22,118 | 89% |
| Goodyear            | $20,056 | $17,384 | $9,016 | 79% |
| Delphi              | $15,451 | $10,273 | $18,439 | 72% |
| Parker-Hannifin     | $12,999 | $12,672 | $16,761 | 72% |
| TRW Automtv Hldgs   | $16,449 | $11,453 | $9,125 | 68% |
| Textron             | $12,056 | $12,440 | $10,718 | 65% |
| Dover               | $8,380 | $10,349 | $16,866 | 63% |
| Lear                | $15,318 | $8,167 | $5,802 | 51% |
| Navistar            | $11,761 | $8,723 | $6,513 | 51% |
| AGCO                | $10,092 | $7,992 | $6,369 | 46% |
| Masco               | $7,891 | $7,062 | $9,728 | 46% |
| BorgWarner          | $7,159 | $6,705 | $11,338 | 42% |
| Terex               | $7,149 | $6,555 | $4,603 | 25% |
| Joy Global          | $5,494 | $6,189 | $6,395 | 23% |
| Oshkosh             | $8,000 | $4,731 | $4,268 | 21% |
| SPX                 | $5,069 | $6,805 | $4,511 | 19% |
| Tenneco             | $7,501 | $3,939 | $3,978 | 14% |
| Visteon             | $6,996 | $5,367 | $3,060 | 10% |
| Dana Holding        | $6,800 | $5,174 | $3,718 | 9% |
| 75th Percentile     | $15,599 | $12,498 | $16,787 |   |
| Mean                | $11,119 | $9,735 | $11,389 |   |
| Median              | $9,236 | $8,079 | $9,071 |   |
| 25th Percentile     | $7,157 | $6,463 | $4,580 |   |
| Navistar            | 57% | 54% | 42% |   |

|         |             |
|---------|-------------|
| • | Base Salary |

|         |                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | We provide each executive officer a competitive base salary paid monthly for services rendered during the year.  Base salaries for executive officers are typically reviewed on an annual basis and adjusted based on evaluating (i) the responsibilities of their positions, (ii) the competitive market data and (iii) the performance of each executive during the year. |

|         |                                                                                           |
|---------|-------------------------------------------------------------------------------------------|
| ◦ | Based on Company performance, no base salary increases were provided to our NEOs in 2014. |

----

|         |                           |
|---------|---------------------------|
| • | Short-term cash incentive |

|         |                                                                                           |
|---------|-------------------------------------------------------------------------------------------|
| ◦ | We provide cash incentive to achieve Company strategic financial and non-financial goals. |

|         |                                                                       |
|---------|-----------------------------------------------------------------------|
| ◦ | Based on Company performance, no AI was awarded to employees in 2014. |

|         |                             |
|---------|-----------------------------|
| • | Long-term equity incentives |

|         |                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------|
| ◦ | We provide long-term equity incentives to our executives to align management's interests with the those of our stockholders. |

|         |                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | 2014 LTI awards were adjusted for each executive based upon an evaluation of both individual performance as well as the individual's potential contribution to the organization. |

|         |                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Based on Company performance in 2014 and the strategic plan, the 2014 LTI performance targets are not likely to be met for 50% of the grant and very challenging the other 50%. |

----

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

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

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

|                 |
|-----------------|
|                 |  |  |  |  |  |  |  |  |  |  |
| NEO             | PreviousBase Salary |   | Effective Date | Base Salary as of October 31, 2014 |   | Effective Date |
| Troy A. Clarke  | $ | 775,000 |  |   | August 27, 2012 | $ | 900,000 |  | (1)  | April 15, 2013 |
| Walter G. Borst | -- |  |   | -- | $ | 700,000 |  | (2)  | August 1, 2013 |
| John J. Allen   | $ | 660,000 |  | (3)  | November 1, 2012 | $ | 740,000 |  | (4)  | April 16, 2013 |
| Steven K. Covey | $ | 575,000 |  |   | January 1, 2012 | $ | 575,000 |  |   | January 1, 2012 |
| Eric Tech       | $ | 480,000 |  |   | January 1, 2012 | $ | 480,000 |  |   | January 1, 2012 |

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

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

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

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

----

|         |                                                    |
|---------|----------------------------------------------------|
| • | A successful product transition to the ISB engine; |

|         |                                                 |
|---------|-------------------------------------------------|
| • | Rationalization of the manufacturing footprint; |

|         |                                                                           |
|---------|---------------------------------------------------------------------------|
| • | Completing a strategy reassessment, including vision, mission and values; |

|         |                                 |
|---------|---------------------------------|
| • | Restructuring Navistar Defense; |

|         |                                                   |
|---------|---------------------------------------------------|
| • | Achieving product differentiation through Uptime; |

|         |                                                                                  |
|---------|----------------------------------------------------------------------------------|
| • | Launching an industry-leading telematics solution called "OnCommand Connection;" |

|         |                                     |
|---------|-------------------------------------|
| • | Maintaining a strong cash position; |

|         |                            |
|---------|----------------------------|
| • | Reducing warranty expense; |

|         |                                              |
|---------|----------------------------------------------|
| • | Reducing SG&A and engineering costs; and |

|         |                                                    |
|---------|----------------------------------------------------|
| • | Meeting all key dates related to product launches. |

|         |                        |
|---------|------------------------|
| • | Leading Vehicle Uptime |

|         |                           |
|---------|---------------------------|
| • | Driving a Lean Enterprise |

|         |                         |
|---------|-------------------------|
| • | EBITDA Margin Expansion |

|         |                         |
|---------|-------------------------|
| • | Profitable Market Share |

|         |                                |
|---------|--------------------------------|
| • | Total manufacturing cash (40%) |

----

|         |              |
|---------|--------------|
| • | EBITDA (40%) |

|         |                    |
|---------|--------------------|
| • | Market Share (20%) |

|                |
|----------------|
|                |  |
| Goal           | Annual Incentive ($) |
| Threshold      | 752M |
| Target         | 898M |
| Distinguished  | 973M |
| Actual Results | TBD |

|                |
|----------------|
|                |  |
| Goal           | Annual Incentive ($) |
| Threshold      | 605M |
| Target         | 775M |
| Distinguished  | 850M |
| Actual Results | TBD |

|                |
|----------------|
|                |  |
| Goal           | Annual Incentive ($) |
| Threshold      | 18.00% |
| Target         | 19.60% |
| Distinguished  | 20.00% |
| Actual Results | TBD |

----

|                        |
|------------------------|
|                        |  |  |  |  |  |
| Named ExecutiveOfficer | Target as a $ or% of Base Salary | 2014 AI AmountEarned |
| Troy A. Clarke         | 90 | % | $ | — |  |
| Walter G. Borst (1)    | 75 | % | $ | 525,000 |  |
| John J. Allen          | 75 | % | $ | — |  |
| Steven K. Covey        | 65 | % | $ | — |  |
| Eric Tech              | 65 | % | $ | — |  |

|     |                                                                                                       |
|-----|-------------------------------------------------------------------------------------------------------|
| (1) | Per Mr. Borst's employment offer, Mr. Borst's AI plan award for 2014 is guaranteed at 100% of Target. |

|                                                   |
|---------------------------------------------------|
|                                                   |  |
| Performance Goal                                  | % Target Allocation |
| Cost - 25% Total                                  | Materials Year-Over-Year Cost Reductions-10% |
| Manufacturing Year-Over-Year Cost Reductions - 5% |
| SG&A Cost Reductions - 5%                     |
| Reductions in Product Development Spending - 5%   |
| Revenue - 30% Total                               | Market Share Improvements - 10% |
| Pricing Improvements - 10%                        |
| Parts EBIT Improvement - 5%                       |
| Global EBIT Improvement - 5%                      |
| Cash - 25%                                        | Manufacturing Working Capital Reductions - 10% |
| Used Truck Inventory Reductions - 10%             |
| Capital Expenditures Reductions - 5%              |
| Quality - 20%                                     | Reductions in Warranty Expenditures - 10% |
| Uptime Increase - 5%                              |
| First Time Quality - 5%                           |

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

----

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

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

|                                            |
|--------------------------------------------|
|                                            |  |  |
| 2014 - 2016 Cumulative Operating Cash Flow | Percent of Stock Options Vested |  |
| Maximum ($1,147M)                          | 100% (attained) |  |
| Target ($956)                              | 90% (attained) |  |
| Threshold ($765)                           | 80% (attained) |  |
| Below Threshold                            | — |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |
|                                  | Threshold | Target | Maximum |
| 2014 - 2016 Average EBITDA Margin (%) | 5.5 | % | 6.9 | % | 8.2 | % |
| Award Payout as % of Target           | 50 | % | 100 | % | 200 | % |

|         |                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The performance stock option portion of the 2014 LTI award based on Operating Cash Flow (50% of the totals shown below for NEOs other than the CEO) is not likely to be met. |

|         |                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------|
| • | The performance conditions for the 2013 LTI awards granted to executives, including NEOs other than the CEO are not likely to be met. |

|         |                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------|
| • | The 2013 and 2014 LTI awards based on EBITDAPO and market share goals granted to the CEO are not likely to be met. |

|                               |
|-------------------------------|
|                               |  |  |  |
| NEO                           | Performance Stock Options | Share-SettledPerformance Shares(Average EBITDA Margin Goals at Target) | Targeted EconomicValue |
| Troy A. Clarke (1)  | 270,024 | — | $3,659,358 |
| Walter G. Borst               | 79,201 | 32,773 | $2,300,000 |
| John J. Allen                 | 60,262 | 24,936 | $1,750,000 |
| Steven K. Covey               | 27,548 | 11,399 | $800,000 |
| Erich Tech                    | 27,548 | 11,399 | $800,000 |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | In connection with Mr. Clarke's promotion to President and CEO, effective April 15, 2013, he was awarded an equity grant of stock options in lieu of future grants under the Company's 2014, 2015, and 2016 LTI plan. Half of the options granted are subject to a 125% premium exercise price and/or EBITDAPO and market share goals.  The time vesting stock options are scheduled to vest at the rate of 33-1/3% on each of the first three anniversaries and performance vesting stock options vest as the performance goals pre-established by the Compensation Committee are satisfied. Mr.Clarke received a significant portion of the award in 2013 and on March 10, 2014, Mr.Clarke received the balance of his award in the amount of $3,659,358 or 270,024 shares. |

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |
| 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     | Ÿ | Ÿ |   |   | Ÿ | Ÿ | Ÿ |   |
| Walter G. Borst    | Ÿ | Ÿ |   |   | Ÿ | Ÿ | Ÿ |   |
| John J. Allen (5)  | Ÿ | Ÿ | Ÿ | Ÿ | Ÿ | Ÿ | Ÿ | Ÿ |
| Steven K. Covey(5) | Ÿ | Ÿ | Ÿ | Ÿ | Ÿ | Ÿ | Ÿ | Ÿ |
| Eric Tech          | Ÿ | Ÿ |   |   | Ÿ | Ÿ | Ÿ |   |

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

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Executive Flexible Perquisites.  We maintain a flexible perquisites program for our executives, which we believe is competitive and consistent with our overall compensation program, and which assists us in attracting and retaining our executive officers.  The Executive Flexible Perquisites Program provides a cash stipend to each of our NEOs, the amount of which varies by executive, based upon the executive’s organization level.  The purpose of the cash stipend is to provide each of our NEOs with the ability to choose the perquisite that best fits his or her professional and personal situation.  This program is in lieu of providing and administering such items as car leases, tax preparation, financial planning, and home security systems.  We do not require the NEOs to substantiate the expenses for which they use this stipend.  The annual perquisite amount is paid prospectively in equal installments in May and November. |

|                         |
|-------------------------|
|                         |  |
| Named Executive Officer | Annual FlexiblePerquisite Payment ($) |
| Troy A. Clarke          | 46,000 |
| Walter G. Borst         | 37,000 |
| John J. Allen           | 37,000 |
| Steven K. Covey         | 28,000 |
| Eric Tech               | 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 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. |

----

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

|     |                                                                                                                                                                                                             |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | Effective January 1, 2014, Messrs. Allen and Covey are eligible for the SRAP.  Accruals under the MRO were frozen as of December 31, 2013. Future benefits will accrue under the SRAP for these executives. |

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

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

|         |                                                                           |
|---------|---------------------------------------------------------------------------|
| • | Eliminated required time frame to fulfill stock ownership guidelines; and |

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

----

----

|                                                                                              |
|----------------------------------------------------------------------------------------------|
|                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Name and PrincipalPosition                                                         | Year |   | Salary($) | Bonus($) |   | StockAwards($)(1) |   | OptionAwards($)(2) | Non-EquityIncentive PlanComp($) | Change inPension Value &Non-QualifiedDeferredCompEarnings ($)(3) | All OtherComp ($)(4) | Total ($) |
| Troy A. Clarke                                                                               | 2014 |  | 900,000 |  |  |  |  | — |  |  | 3,607,507 | — |  | 721,284 |  | 134,428 |  | 5,363,219 |  |
| President and Chief Executive Officer                                                        | 2013 | (5) | 843,182 |  | — |  |  | 1,333,352 |  | (6) | 11,878,341 | 324,000 |  | 1,554 |  | 147,429 |  | 14,527,858 |  |
|                                                                                              | 2012 |  | 659,692 |  | — |  |  | 1,209,464 |  | (7) | 576,090 | — |  | 1,451,329 |  | 439,973 |  | 4,336,548 |  |
|                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Walter G. Borst                                                                              | 2014 |  | 700,000 |  | 425,000 |  | (8) | 1,150,005 |  |  | 1,134,158 | 525,000 |  | 991,008 |  | 117,320 |  | 5,042,491 |  |
| Executive Vice President and Chief Financial Officer                                         | 2013 | (9) | 175,000 |  | 500,000 |  | (10) | 2,949,722 |  | (11) | 1,000,001 | 525,000 |  | 1,439,225 |  | 1,332,006 |  | 7,920,954 |  |
|                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| John J. Allen                                                                                | 2014 |  | 740,000 |  |  |  |  | 875,004 |  |  | 862,952 | — |  | 631,159 |  | 68,271 |  | 3,177,386 |  |
| President North America Truck and Parts                                                      | 2013 | (12) | 703,333 |  | — |  |  | 1,906,663 |  | (13) | 892,986 | 222,000 |  | — |  | 53,271 |  | 3,778,253 |  |
|                                                                                              | 2012 |  | 588,725 |  | — |  |  | 89,910 |  |  | 480,940 | — |  | 1,764,838 |  | 62,368 |  | 2,986,781 |  |
|                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Steven K. Covey                                                                              | 2014 |  | 575,000 |  |  |  |  | 399,991 |  |  | 394,487 | — |  | 122,704 |  | 61,741 |  | 1,553,923 |  |
| Senior Vice President, Chief Ethics Officer and General Counsel                              | 2013 |  | 575,000 |  | — |  |  | 411,951 |  |  | 408,227 | 149,500 |  | — |  | 43,238 |  | 1,587,916 |  |
|                                                                                              | 2012 |  | 570,600 |  | — |  |  | 64,800 |  |  | 346,000 | — |  | 1,821,004 |  | 41,108 |  | 2,843,512 |  |
|                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Eric Tech                                                                                    | 2014 |  | 480,000 |  |  |  |  | 399,991 |  |  | 394,487 | — |  | 180,622 |  | 70,084 |  | 1,525,184 |  |
| Senior Vice President, Strategy & Planning and President Global and Specialty Businesses | 2013 |  | 480,000 |  | — |  |  | 411,951 |  |  | 408,227 | 124,800 |  | 4,334 |  | 85,418 |  | 1,514,730 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | The amounts reported in this column reflect the aggregate grant date fair value of stock-based awards (other than stock options) granted in the year computed in accordance with FASB ASC Topic 718, except that in compliance with SEC requirements, for awards that are subject to performance conditions, we reported the value at the grant date based upon the probable outcome of such conditions.  These amounts 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 2014 are set forth in the 2014 Grant of Plan Based Awards table on page 47.  Additional information about these values is included in Note 19 to our audited financial statements included in our Form 10-K for 2014.  In March 2014, we granted performance shares to our NEO's, except for Mr. Clarke, who's awards were all made in stock options and were tied to his promotion to CEO in 2013, see footnote 2 below for more information.  The performance share conditions are measured at the end of the third year following the grant date and vest as long as performance conditions and service requirements have been met.  Our NEO's only earn performance shares if average earnings before interest, taxes, depreciation, and amortization over a three year performance period ("EBITDA Margin") meet certain target levels. Potential payouts range from 0% to 200% of the target values of these awards. The amounts in this table assume achievement at target level (100% payout).  Assuming performance at the highest level, the aggregate grant date values of the stock awards for each of our NEO's who received a performance share award in 2014 were as follows: $2,300,009 for Mr. Borst; $1,750,008 for Mr. Allen; $799,982 for Mr. Covey; and $799,982 for Mr. Tech. |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The amounts reported in this column reflect the aggregate fair value of stock options, granted in the year computed in accordance with FASB ASC Topic 718, except that in compliance with SEC requirements, for awards that are subject to performance conditions, we reported the value 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 Note 19 to our audited financial statements included in our Form 10-K for 2014.  A description of stock options appears in the narrative text on page 47 following the 2014 Grants of Plan-Based Awards table.  All of our NEO's, except for Mr. Clarke, who received time based and performance stock option awards tied to his promotion to CEO in 2013, and which are further described below, received performance stock options in March 2014 that vest three years from the date of grant if certain cumulative operating cash flow ("OCF") performance targets, as measured on a three-year total basis, are met.  The grant date fair value amounts for these awards assumed the highest level of performance condition would be met.  In March 2014, Mr. Clarke received two performance stock option grants, one with an exercise price based on the market value (closing price) on the date of grant, and one based on a 25% premium to the market price on the date of grant.  Mr. Clarke's March 2014 performance stock option awards were based on achieving certain EBITADPO target levels for FY 2014 and FY 2015, and targeted market share numbers for sales of certain of our trucks for 2014 and 2015.  The amounts in this table assume achievement of Mr. Clarke's March 2014 performance stock option awards at target level  (100% payout).  Assuming performance at the highest level, the aggregate grant date value of Mr. Clarke's March 2014 performance stock option awards would be $1,417,065. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | This amount represents the change in the actuarial present value of the RPSE and MRO for Messrs. Allen and Covey. This amount also represents the change in actuarial present value of the SERP and interest crediting rate of 7.5% per annum compounded on a daily basis on the SRAP for Messrs. Clarke, Borst and Tech. The 7.5% is the rate used to design the SRAP as a comparable replacement for the MRO.  The interest crediting rate constitutes an "above-market interest rate" under the Internal Revenue Code. |

|     |                                                                                                                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | This includes such items as flexible perquisites cash allowances, Company-paid life and AD&D insurance premiums, Company contributions to the RAP and the SRAP, relocation, club membership reimbursement, taxable spouse travel and smart phone stipends payments to the NEOs in 2014. |

|        |
|--------|
|        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| NEO    | Flexible Perquisites |   | Company Paid Life and AD&D Insurance | RAP | SRAP | Relocation |   | Club Membership Reimbursement | Taxable Spouse Travel | Smart Phone Stipend | All Other Comp Total |
| Clarke | $ | 46,000 |  |   | $ | 17,226 |  | $ | 25,650 |  | $ | 39,586 |  | $ | — |  |  | $ | — |  | $ | 5,366 |  | $ | 600 |  | $ | 134,428 |  |
| Borst  | $ | 46,250 |  | (a) | $ | 7,593 |  | $ | 30,850 |  | $ | 2,383 |  | $ | 29,644 |  | (b) | $ | — |  | $ | — |  | $ | 600 |  | $ | 117,320 |  |
| Allen  | $ | 37,000 |  |   | $ | 11,555 |  | $ | 16,900 |  | $ | — |  | $ | — |  |  | $ | — |  | $ | 2,216 |  | $ | 600 |  | $ | 68,271 |  |
| Covey  | $ | 28,000 |  |   | $ | 16,241 |  | $ | 16,900 |  | $ | — |  | $ | — |  |  | $ | — |  | $ | — |  | $ | 600 |  | $ | 61,741 |  |
| Tech   | $ | 28,000 |  |   | $ | 4,428 |  | $ | 25,311 |  | $ | 14,625 |  | $ | — |  |  | $ | (2,880 | ) |  |  | $ | 600 |  | $ | 70,084 |  |

|     |                                                                         |
|-----|-------------------------------------------------------------------------|
| (5) | Mr. Clarke was appointed to President and CEO effective April 15, 2013. |

|     |                                                                                                                                                        |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | Includes the grant date fair value of 1,263 PSUs that were issue on May 23, 2013, the fair market value of our stock on the date of grant was $36.435. |

|     |                                                                                                                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | In connection with Mr. Clarke's promotion to President and Chief Operating Officer, Mr. Clarke received a restricted stock grant which vests only upon the third anniversary of the date of grant. |

|     |                                                                               |
|-----|-------------------------------------------------------------------------------|
| (8) | This amount represents Mr. Borst's cash sign-on bonus paid or earned in 2014. |

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

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

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

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

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

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           |   | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future PayoutsUnder Equity Incentive Plan Awards(2) | All OtherStockAwards:Number ofShares ofStock orUnits#  | All OtherOptionAwards:Number ofSecuritiesUnderlyingOptions (#)(3) | Exerciseor BasePrice OfOptionAwards($/Sh)(4) | Grant DateFair Valueof Stockand OptionAwards ($)(5) |
| Name                                           | GrantDate | Threshold($) | Target ($) | Maximum($) | Threshold(#) | Target(#) | Maximum (#) |
| Troy A. Clarke                                 |  |   |   |   |  |   |   |  |  |   |   |
|      AI Plan Award    |   | 202,500 |  | 810,000 |  | 1,620,000 |  |   |   |   |   |   |   |   |
|      Stock Option     | 3/10/2014 |   |   |   |   |   |   |   | 135,012 |  | 35.09 |  | 1,933,372 |  |
|      Stock Option     | 3/10/2014 |   |   |   |   |   |   |   | 81,007 |  | 43.86 |  | 965,603 |  |
|      Stock Option     | 3/10/2014 |   |   |   | 13,501 |  | 27,002 |  | 54,004 |  |   |   | 35.09 |  | 386,669 |  |
|      Stock Option     | 3/10/2014 |   |   |   | 13,501 |  | 27,002 |  | 54,004 |  |   |   | 43.86 |  | 321,864 |  |
| Walter G. Borst                                |   |   |   |   |   |  |   |   |  |  |   |
|      AI Plan Award    |   | 131,250 |  | 525,000 |  | 1,050,000 |  |   |   |   |   |   |   |   |
|      Performance Unit | 3/10/2014 |   |   |   | 16,387 |  | 32,773 |  | 65,546 |  |   |   |  | 1,150,005 |  |
|      Stock Option     | 3/10/2014 |   |   |   | 19,800 |  | 39,601 |  | 79,201 |  |   |  | 35.09 |  | 1,134,158 |  |
| John J. Allen                                  |  |   |   |   |  |   |  |  |   |   |   |
|      AI Plan Award    |   | 138,750 |  | 555,000 |  | 1,110,000 |  |   |   |   |   |   |   |   |
|      Performance Unit | 3/10/2014 |   |   |   | 12,468 |  | 24,936 |  | 49,872 |  |  |  |  | 875,004 |  |
|      Stock Option     | 3/10/2014 |   |   |   | 15,066 |  | 30,131 |  | 60,262 |  |   |   | 35.09 |  | 862,952 |  |
| Steven K. Covey                                |  |   |   |   |   |  |  |  |  |   |  |
|     AI Plan Award          |   | 93,438 |  | 373,750 |  | 747,500 |  |   |   |   |   |   |   |   |
|     Performance Unit       | 3/10/2014 |   |   |   | 5,700 |  | 11,399 |  | 22,798 |  |  |   |   | 399,991 |  |
|     Stock Option           | 3/10/2014 |   |   |   | 6,887 |  | 13,774 |  | 27,548 |  |   |   | 35.09 |  | 394,487 |  |
| Eric Tech                                      |   |   |   |   |   |  |  |  |   |   |  |
|      AI Plan Award    |   | 78,000 |  | 312,000 |  | 624,000 |  |   |   |   |   |   |   |   |
|      Performance Unit | 3/10/2014 |   |   |   | 5,700 |  | 11,399 |  | 22,798 |  |   |   |   | 399,991 |  |
|      Stock Option     | 3/10/2014 |   |   |   | 6,887 |  | 13,774 |  | 27,548 |  |  |   | 35.09 |  | 394,487 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | These amounts are estimated amounts and represent compensation opportunity for 2014 under the AI plan, if the Compensation Committee and the Board approved an AI award in 2014.  No AI award is expected to be approved in 2014.  For additional information regarding such awards, see the Annual Incentives section of this proxy statement.  Under the AI plan, Threshold is 25% of Target, Target is 100% and for purposes of this table Maximum equals Super Distinguished which is 200% of Target. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Performance Stock Options and EBITDA Margin Performance Share Units.  The amounts shown represent the threshold, target and maximum number of performance stock options or EBITDA Margin performance shares that we awarded in 2014 to the NEO’s under our 2013 PIP as we describe more fully under the Long-Term Incentives section of this proxy statement.  The EBITDA Margin performance shares will vest and be earned based upon the achievement of certain three year average EBITDA Margin performance goals for the period beginning on November 1, 2013 and ending on October 31, 2016, provided that the NEO is continuously employed at the Company through the performance period.  If EBITDA Margin performance goals are met we intend to pay the awards in cash, with one performance unit  representing the right to the value of one share of our Common Stock. |

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

|     |                                                                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | The exercise price per share is the fair market value (closing price) of Common Stock on the date of grant, except for two stock option awards granted to Mr. Clarke that were granted at a 25% premium above the closing price. |

|     |                                                                                                                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | The amounts shown do not reflect realized compensation by the NEOs.  The amounts shown represent the value of the stock option, performance stock options and EBITDA Margin performance shares granted to the NEO’s based on the grant date fair value of the awards as determined in |

----

----

|                 |
|-----------------|
|                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|       | Option Awards (1) (4) | Stock Awards |
| Name            | Number of SecuritiesUnderlying UnexercisedOptions (#) | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | OptionExercisePrice ($) | OptionExpirationDate | Number ofShares orUnits ofStockHeld thatHave NotVested(#)(2)(4) | MarketValue ofShares orUnitsof StockHeld thatHave NotVested ($) | EquityIncentive PlanAwards:Number ofUnearnedShares, Unitsor OtherRights ThatHave NotVested (#)(3)(4) | EquityIncentive PlanAwards:Market orPayout Valueof UnearnedShares, Unitsor OtherRights ThatHave NotVested($) |
| Exercisable     | Unexercisable |
| Troy A. Clarke  | 27,800 |  | — |  | — |  | 58.915 |  | 12/14/2017 | 2,248 |  | 79,512 |  | 11,100 |  | 392,607 |  |
|            | 22,200 |  | 11,100 |  | — |  | 37.200 |  | 12/19/2018 | 41,445 |  | 1,465,910 |  | 13,300 |  | 470,421 |  |
|            | — |  | — |  | 102,796 |  | 27.240 |  | 2/19/2020 | 5,493 |  | 194,287 |  | 47,259 |  | 1,671,551 |  |
|            | 74,667 |  | 149,333 |  | — |  | 38.300 |  | 4/22/2020 | — |  | — |  | — |  | — |  |
|            | 124,445 |  | 248,888 |  | — |  | 30.640 |  | 4/22/2020 | — |  | — |  | — |  | — |  |
|            | — |  | — |  | 74,666 |  | 30.640 |  | 4/22/2020 | — |  | — |  | — |  | — |  |
|            | — |  | — |  | 74,666 |  | 38.300 |  | 4/22/2020 | — |  | — |  | — |  | — |  |
|            | — |  | 135,012 |  | — |  | 35.090 |  | 3/10/2021 | — |  | — |  | — |  | — |  |
|            | — |  | 81,007 |  | — |  | 43.860 |  | 3/10/2021 | — |  | — |  | — |  | — |  |
|            | — |  | — |  | 27,002 |  | 35.090 |  | 3/10/2021 | — |  | — |  | — |  | — |  |
|            | — |  | — |  | 27,002 |  | 43.860 |  | 3/10/2021 | — |  | — |  | — |  | — |  |
| Total:          | 249,112 |  | 625,340 |  | 306,132 |   |   | 49,186 |  | 1,739,709 |  | 71,659 |  | 2,534,579 |  |
| Walter G. Borst | 19,596 |  | 39,193 |  |   | 35.220 |  | 8/1/2020 | 6,909 |  | 244,371 |  | 28,393 |  | 1,004,260 |  |
|            | — |  | — |  | 79,201 |  | 35.090 |  | 3/10/2021 | 30,049 |  | 1,062,833 |  | 32,773 |  | 1,159,181 |  |
| Total:          | 19,596 |  | 39,193 |  | 79,201 |   |   | 36,958 | 1,307,204 |  | 61,166 | 2,163,441 |  |
| John J. Allen   | 11,199 |  | — |  | — |  | 22.655 |  | 12/16/2018 | 3,763 |  | 133,097 |  | 11,100 |  | 392,607 |  |
|            | 21,306 |  | — |  | — |  | 35.805 |  | 12/15/2016 | 36,914 |  | 1,305,648 |  | 11,100 |  | 392,607 |  |
|            | 27,800 |  | — |  | — |  | 58.915 |  | 12/14/2017 | — |  | — |  | 33,081 |  | 1,170,075 |  |
|            | 18,533 |  | 9,267 |  | — |  | 37.200 |  | 12/19/2018 | — |  | — |  | 24,936 |  | 881,986 |  |
|            | — |  | — |  | 71,957 |  | 27.240 |  | 2/19/2020 | — |  | — |  | — |  | — |  |
|            | — |  | — |  | 60,262 |  | 35.090 |  | 3/10/2021 | — |  | — |  | — |  | — |  |
| Total:          | 78,838 |  | 9,267 |  | 132,219 |  |   | 40,677 |  | 1,438,745 |  | 80,217 |  | 2,837,275 |  |
| Steven K. Covey | 30,900 |  | — |  | — |  | 40.915 |  | 12/14/2014 | 2,534 |  | 89,628 |  | 8,000 |  | 282,960 |  |
|            | 30,900 |  | — |  | — |  | 26.150 |  | 10/18/2015 | — |  | — |  | 8,000 |  | 282,960 |  |
|            | 20,703 |  | — |  | — |  | 22.655 |  | 12/16/2018 | — |  | — |  | 15,123 |  | 534,901 |  |
|            | 20,703 |  | — |  | — |  | 35.805 |  | 12/15/2016 | — |  | — |  | 11,399 |  | 403,183 |  |
|            | 20,000 |  | — |  | — |  | 58.915 |  | 12/14/2017 | — |  | — |  | — |  | — |  |
|            | 13,333 |  | 6,667 |  | — |  | 37.200 |  | 12/19/2018 | — |  | — |  | — |  | — |  |
|            | — |  | — |  | 32,895 |  | 27.240 |  | 2/19/2020 | — |  | — |  | — |  | — |  |
|            | — |  | — |  | 27,548 |  | 35.090 |  | 3/10/2021 | — |  | — |  | — |  | — |  |
| Total:          | 136,539 |  | 6,667 |  | 60,443 |   |   | 2,534 |  | 89,628 |  | 42,522 |  | 1,504,004 |  |
| Eric Tech       | 13,802 |  | — |  | — |  | 35.805 | 12/15/2016 | 2,115 |  | 74,808 |  | 8,000 |  | 282,960 |  |
|            | 20,000 |  | — |  | — |  | 58.915 |  | 12/14/2017 | — |  | — |  | 8,000 |  | 282,960 |  |
|            | 13,333 |  | 6,667 |  | — |  | 37.200 |  | 12/19/2018 | — |  | — |  | 15,123 |  | 534,901 |  |
|            | — |  | — |  | 32,895 |  | 27.240 |  | 2/19/2020 | — |  | — |  | 11,399 |  | 403,183 |  |
|            | — |  | — |  | 27,548 |  | 35.090 |  | 3/10/2021 | — |  | — |  | — |  | — |  |
| Total:          | 47,135 |  | 6,667 |  | 60,443 |   |   | 2,115 |  | 74,808 |  | 42,522 |  | 1,504,004 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | All stock options, other than performance stock options, became or will become exercisable under the following schedule: 1/3rd on each of the first three anniversaries of the date of grant.  Performance stock options that expire on February 19, 2020 or March 10, 2021, vest on the three year anniversary of the date of grant if performance conditions have been met.  The Compensation Committee has certified the performance conditions have been met in full on the performance options that expire on February 19, 2020.  Mr. Clark's performance options that expire on April 22, 2020 and March 10, 2021, will vest as to 25% of the shares granted on the date we file our 2014 Annual Report on Form 10-K, if performance conditions have been met and upon certification by the Compensation Committee, and as to 75% of the shares on the date we file our 2015 Annual Report on Form 10-K, if performance conditions have been met and upon certification by the Compensation Committee.  The value of Mr. Clark's performance shares that expire on April 22, 2020 and March 10, 2012 were based on achieving performance goals at target level. |

|     |                                                                                                                                                                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Amounts in this column represent RSUs, PSUs or restricted stock.  In general RSUs and PSUs become vested as to 1/3rd of the shares granted on each of the first three anniversaries of the date of grant.  The restricted stock grant referenced in this column was made to Mr. Clarke and |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Amounts in this column represent Total Shareholder Return ("TSR") performance shares, EBITDAPO performance shares, or EBITDA Margin performance shares, which are fully vested and eligible for payout three years from the date of grant provided applicable performance goals have been achieved.  The value reported for 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 and unvested restricted stock, RSUs, PSUs, TSR performance shares, EBITDAPO performance shares, and EBITDA Margin performance shares at October 31, 2014 are listed below. |

|                 |
|-----------------|
|                 |  |  |  |  |  |  |  |  |
| Name            | Type ofAward | GrantDate | Number ofUnexercisedor UnvestedSharesRemainingfromOriginalGrant | Number ofSharesVestingandVestingDate in2014 | Number ofSharesVestingandVestingDate in2015 | Number ofSharesVestingandVestingDate in2016 | Number ofSharesVestingandVestingDate in2017 |
| Troy A. Clarke  | Options | 12/19/2011 | 11,100 |  | 11,100 on 12/19/2014 |   |   |   |
|            | Options | 2/19/2013 | 102,796 |  |   |   | 102,796 on 2/19/2016 |   |
|            | Options | 4/22/2013 | 248,888 |  |   | 124,444 on 4/22/2015 | 124,444 on 4/22/2016 |   |
|            | Options | 4/22/2013 | 149,333 |  |   | 74,666 on 4/22/2015 | 74,667 on 4/22/2016 |   |
|            | Options | 4/22/2013 | 55,999 |  |   | 55,999 on 10/31/2015 |   |   |
|            | Options | 4/22/2013 | 55,999 |  |   | 55,999 on 10/31/2015 |   |   |
|            | Options | 3/10/2014 | 135,012 |  |   | 45,004 on 3/10/2015 | 45,004 on 3/10/2016 | 45,004 on 3/10/2017 |
|            | Options | 3/10/2014 | 81,007 |  |   | 27,003 on 3/10/2015 | 27,002 on 3/10/2016 | 27,002 on 3/10/2017 |
|            | Options | 3/10/2014 | 20,251 |  |   | 20,251 on 10/31/2015 |   |   |
|            | Options | 3/10/2014 | 20,251 |  |   | 20,251 on 10/31/2015 |   |   |
|            | Performance | 12/19/2011 | 13,300 |  | 13,300 on 12/19/2014 |   |   |   |
|            | Performance | 2/19/2013 | 47,259 |  |   |   | 47,259 on 2/19/2016 |   |
|            | PSUs | 8/27/2012 | 1,406 |  |   | 1,406 on 8/27/2015 |   |   |
|            | PSUs | 5/23/2013 | 842 |  |   |  421 on 5/23/2015 | 421 on 5/23/2016 |   |
|            | Restricted | 8/27/2012 | 41,445 |  |   | 41,445 on 8/27/2015 |   |   |
|            | RSUs | 2/3/2014 | 5,493 |  |   | 1,831 on 2/3/2015 | 1.831 on 2/3/2016 | 1,831 on 2/3/2017 |
|            |   |   |   |   |   |   |   |
| Walter G. Borst | Options | 8/1/2013 | 39,193 |  |   | 19,597 on 8/1/2015 | 19,596 on 8/1/2016 |   |
|            | Options | 3/10/2014 | 79,201 |  |   |   |   | 79,201 on 3/10/2017 |
|            | Performance | 8/1/2013 | 28,393 |  |   |   | 28,393 on 8/1/2016 |   |
|            | Performance | 3/10/2014 | 32,773 |  |   |   |   | 32,773 on 3/10/2017 |
|            | PSUs | 8/1/2013 | 6,909 |  |   | 3,454 on 8/1/2015 | 3,455 on 8/1/2016 |   |
|            | RSUs | 8/1/2013 | 30,049 |  |   | 15,024 on 8/1/2015 | 15,025 on 8/1/2016 |   |

----

|                 |
|-----------------|
|                 |  |  |  |  |  |  |  |  |
| Name            | Type ofAward | GrantDate | Number ofUnexercisedor UnvestedSharesRemainingfromOriginalGrant | Number ofSharesVestingandVestingDate in2014 | Number ofSharesVestingandVestingDate in2015 | Number ofSharesVestingandVestingDate in2016 | Number ofSharesVestingandVestingDate in2017 |
| John J. Allen   | Options | 12/19/2011 | 9,267 |  | 9,267 on 12/19/2014 |   |   |   |
|            | Options | 2/19/2013 | 71,957 |  |   |   | 71,957 on 2/19/2016 |   |
|            | Options | 3/10/2014 | 60,262 |  |   |   |   | 60,262 on 3/10/2017 |
|            | Performance | 12/19/2011 | 11,100 |  | 11,100 on 12/19/2014 |   |   |   |
|            | Performance | 2/19/2013 | 33,081 |  |   |   | 33,081 on 2/19/2016 |   |
|            | Performance | 3/10/2014 | 24,936 |  |   |   |   | 24,936 on 3/10/2017 |
|            | RSUs | 2/19/2013 | 36,914 |  |   |   | 36,914 on 2/19/2016 |   |
|            | RSUs | 2/3/2014 | 3,763 |  |   | 1,255 on 2/3/2015 | 1,254 on 2/3/2016 | 1,254 on 2/3/2017 |
|            |   |   |   |   |   |   |   |
| Steven K. Covey | Options | 12/19/2011 | 6,667 |  | 6,667 on 12/19/2014 |   |   |   |
|            | Options | 2/19/2013 | 32,895 |  |   |   | 32,895 on 2/19/2016 |   |
|            | Options | 3/10/2014 | 27,548 |  |   |   |   | 27,548 on 3/10/2017 |
|            | Performance | 12/19/2011 | 8,000 |  | 8,000 on 12/19/2014 |   |   |   |
|            | Performance | 2/19/2013 | 15,123 |  |   |   | 15,123 on 2/19/2016 |   |
|            | Performance | 3/10/2014 | 11,399 |  |   |   |   | 11,399 on 3/10/2017 |
|            | RSUs | 2/3/2014 | 2,534 |  |   | 845 on 2/3/2015 | 844 on 2/3/2016 | 845 on 2/3/2017 |
|            |   |   |   |   |   |   |   |
| Eric Tech       | Options | 12/19/2011 | 6,667 |  | 6,667 on 12/19/2014 |   |   |   |
|            | Options | 2/19/2013 | 32,895 |  |   |   | 32,895 on 2/19/2016 |   |
|            | Options | 3/10/2014 | 27,548 |  |   |   |   | 27,548 on 3/10/2017 |
|            | Performance | 12/19/2011 | 8,000 |  | 8,000 on 12/19/2014 |   |   |   |
|            | Performance | 2/19/2013 | 15,123 |  |   |   | 15,123 on 2/19/2016 |   |
|            | Performance | 3/10/2014 | 11,399 |  |   |   |   | 11,399 on 3/10/2017 |
|            | RSUs | 2/3/2014 | 2,115 |  |   | 705 on 2/3/2015 | 705 on 2/3/2016 | 705 on 2/3/2017 |

----

|                 |
|-----------------|
|                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|       | Option Awards |   | Stock Awards |   |
| Name            | Number ofSharesAcquired onExercise (#) |   | ValueRealizedUponExercise ($) |   | Number ofSharesAcquired onVesting (#) |   | ValueRealizedUponVesting ($)(1) |
| Troy A. Clarke  | — |  |   | — |  |   | 2,038 |  |   | 74,181 |  |   |
| Walter G. Borst | — |  |   | — |  |   | 18,482 |  |   | 635,783 |  |   |
| John J. Allen   | — |  |   | — |  |   | 305 |  |   | 10,062 |  |   |
| Steven K. Covey | — |  |   | — |  |   | 400 |  | 29,838 |  | 15,286 |  |   |
| Eric Tech       | 2,323 |  |   | 35,995 |  |   | 453 |  |   | 17,261 |  |   |

|     |                                                                                                                                                                                                                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | The value realized upon vesting for Mr. Clarke, Mr. Allen, Mr. Covey and Mr. Tech is attributable to the portion of their respective PSUs that vested during the year ended October 31, 2014.  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, 2014. |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |
| Named Executive Officers | PlanName | Number ofYears ofCreditedService (#) | Present Valueof AccumulatedBenefit ($)(1) |  | PaymentsDuring LastFiscal Year |  |
| Troy A. Clarke           | SERP | 4.0 | 3,730,332 |  | — |  |
| Walter G. Borst          | SERP | 1.5 | 2,430,199 |  | — |  |
| John J. Allen            | RPSE | 32.8 | 1,592,471 |  | — |  |
|                     | MRO | 32.8 | 3,950,712 |  | — |  |
|                     | SERP | 33.8 | — |  | — |  |
| Steven K. Covey          | RPSE | 32.5 | 1,956,489 |  | — |  |
|                     | MRO | 32.5 | 4,631,467 |  | — |  |
|                     | SERP | 33.5 | — |  | — |  |
| Eric Tech                | SERP | 8.8 | 1,213,672 |  | — |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 (3.7%) and mortality (RP-2000 Combined Mortality Table projected to January 1, 2021 at 100% of scale AA) is based on assumptions from the guidance on accounting for pensions.  Additionally, SERP benefits have only been offset by benefits under Navistar sponsored retirement programs.  At actual retirement these benefits will also be offset by benefits accumulated under programs for employment prior to Navistar. |

----

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

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

|         |                                                                                                                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Navistar, Inc. Managerial Retirement Objective Plan.  We offer the MRO to approximately 55 eligible managers and executive officers.  The MRO provides for retirement benefits that are either not covered by or that are above those provided under our RPSE.  The MRO is unfunded and is not qualified for tax purposes. |

----

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

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

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

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |
| Named Executive Officers | ExecutiveContributions in LastFiscal Year ($) | CompanyContributions in LastFiscal Year(1) ($) | AggregateEarningsIn Last FiscalYear(2) ($) | AggregateBalance Asof LastFiscal YearEnd(3) ($) |
| Troy A. Clarke           | N/A | 39,586 |  | 9,256 |  | 355,919 |  |
| Walter G. Borst          | N/A | 2,383 |  | 147 |  | 369,176 |  |
| John J. Allen            | N/A | — |  | — |  | 244,584 |  |
| Steven K. Covey          | N/A | — |  | — |  | 127,367 |  |
| Eric Tech                | N/A | 14,625 |  | 10,971 |  | 207,779 |  |

----

|     |                                                                                            |
|-----|--------------------------------------------------------------------------------------------|
| (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. |

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

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Deferred Share Units ("DSUs").  Under the Restoration Stock Option Program, participants generally may exercise vested options by presenting shares that have a total market value equal to the applicable option exercise price times the number of options.  Restoration options are then granted with an exercise price equal to the then current fair market price in an amount equal to the number of shares held by the option holder for at least six months that were presented to exercise the original option, plus the number of shares that are withheld for the required tax liability.  Participants who hold non-qualified stock options that were vested prior to December 31, 2004 may also defer the receipt of shares of our Common Stock that would have been acquired upon exercise of a restoration stock option exercise of these options.  Participants who elect to defer receipt of these shares receive DSUs. DSUs are awarded under the 2013 PIP.  DSUs are credited into the participant’s account at the then current market price.  The DSUs |

----

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

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

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

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

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

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

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

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

|         |                                                                    |
|---------|--------------------------------------------------------------------|
| • | No payments are eligible for IRC Section 280G excise tax gross-up. |

----

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

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

|         |                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Not be eligible for an annual incentive 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 stock options; |

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

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

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

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

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

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

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

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

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

----

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----

|                   |
|-------------------|
|                   |  |  |  |  |
| NEO               | Multiplier - Involuntary Not forCause or Good ReasonTermination | Multiplier - Change in Control |
| Troy A. Clarke(1) | 200 | % | 200 | % |
| Walter G. Borst   | 200 | % | 300 | % |
| John J. Allen     | 200 | % | 300 | % |
| Steven K. Covey   | 150 | % | 300 | % |
| Eric Tech         | 150 | % | 300 | % |

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

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| NEO                                                     | SeveranceAmount/CashPayment ($) |   | UnvestedOptions ($)(1) | RestrictedStock/Units ($)(2) | PerformanceShares ($)(3) | BenefitContinuation ($)(4) | OutplacementCounseling ($)(5) | Total ($) |
| Troy A. Clarke                                          |   |   |   |   |   |   |   |   |
| Involuntary Not for Cause or Good Reason Termination(6) | $ | 3,420,000 |  |   | $ | — |  | $ | 136,705 |  | $ | — |  | $ | 48,164 |  | $ | 19,000 |  | $ | 3,623,869 |  |
| Change in Control(6)                                    | $ | 4,369,702 |  | (11)  | $ | 2,411,506 |  | $ | 1,876,414 |  | $ | 2,534,579 |  | $ | 48,164 |  | $ | 19,000 |  | $ | 11,259,365 |  |
| Disability(7)                                           | $ | 540,000 |  |   | $ | 2,050,775 |  | $ | 1,876,414 |  | $ | — |  | $ | — |  | $ | — |  | $ | 4,467,189 |  |
| Death(8)                                                | $ | — |  |   | $ | 2,050,775 |  | $ | 1,876,414 |  | $ | — |  | $ | — |  | $ | — |  | $ | 3,927,189 |  |
| Voluntary and Involuntary for Cause Termination         | $ | — |  |   | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
| Walter G. Borst                                         |   |   |   |   |   |   |   |   |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | 2,450,000 |  |   | $ | — |  | $ | 1,185,107 |  | $ | — |  | $ | 35,483 |  | $ | 19,000 |  | $ | 3,689,590 |  |
| Change in Control(10)                                   | $ | 4,200,000 |  |  | $ | 28,055 |  | $ | 1,429,479 |  | $ | 2,163,441 |  | $ | 35,483 |  | $ | 19,000 |  | $ | 7,875,458 |  |
| Disability(7)                                           | $ | 420,000 |  |   | $ | 5,879 |  | $ | 1,429,479 |  | $ | 178,063 |  | $ | — |  | $ | — |  | $ | 2,033,421 |  |
| Death(8)                                                | $ | — |  |   | $ | 5,879 |  | $ | 1,429,479 |  | $ | 178,063 |  | $ | — |  | $ | — |  | $ | 1,613,421 |  |
| Voluntary and Involuntary for Cause Termination         | $ | — |  |   | $ | — |  | $ | 1,062,833 |  | $ | — |  | $ | — |  | $ | — |  | $ | 1,062,833 |  |
| John J. Allen                                           |   |   |   |   |   |   |   |  |  |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | 2,590,000 |  |   | $ | 585,010 |  | $ | 1,683,329 |  | $ | — |  | $ | 37,088 |  | $ | 19,000 |  | $ | 4,914,427 |  |
| Change in Control(10)                                   | $ | 5,101,920 |  | (11)  | $ | 601,884 |  | $ | 1,683,329 |  | $ | 2,837,275 |  | $ | 37,088 |  | $ | 19,000 |  | $ | 10,280,496 |  |
| Disability(7)                                           | $ | 444,000 |  |   | $ | 585,010 |  | $ | 1,683,329 |  | $ | 135,483 |  | $ | — |  | $ | — |  | $ | 2,847,822 |  |
| Death(8)                                                | $ | — |  |   | $ | 585,010 |  | $ | 1,683,329 |  | $ | 135,483 |  | $ | — |  | $ | — |  | $ | 2,403,822 |  |
| Voluntary and Involuntary for Cause Termination         | $ | — |  |   | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
| Steven K. Covey                                         |   |   |   |   |   |   |   |  |  |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | 1,423,125 |  |   | $ | 267,436 |  | $ | 216,995 |  | $ | — |  | $ | 52,839 |  | $ | 19,000 |  | $ | 1,979,395 |  |
| Change in Control(10)                                   | $ | 3,220,000 |  |   | $ | 275,150 |  | $ | 216,995 |  | $ | 1,504,003 |  | $ | 52,839 |  | $ | 19,000 |  | $ | 5,287,987 |  |
| Disability(7)                                           | $ | 345,000 |  |   | $ | 267,436 |  | $ | 216,995 |  | $ | 61,933 |  | $ | — |  | $ | — |  | $ | 891,364 |  |
| Death(8)                                                | $ | — |  |   | $ | 267,436 |  | $ | 216,995 |  | $ | 61,933 |  | $ | — |  | $ | — |  | $ | 546,364 |  |
| Voluntary and Involuntary for Cause Termination         | $ | — |  |   | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
| Eric Tech                                               |   |   |   |   |   |   |   |  |  |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | 1,188,000 |  |   | $ | — |  | $ | 47,926 |  | $ | — |  | $ | 29,259 |  | $ | 19,000 |  | $ | 1,284,185 |  |
| Change in Control(10)                                   | $ | 4,492,495 |  | (11)  | $ | 275,150 |  | $ | 122,734 |  | $ | 1,504,003 |  | $ | 29,259 |  | $ | 19,000 |  | $ | 6,442,641 |  |
| Disability(7)                                           | $ | 288,000 |  |   | $ | 267,436 |  | $ | 122,734 |  | $ | 61,933 |  | $ | — |  | $ | — |  | $ | 740,103 |  |
| Death(8)                                                | $ | — |  |   | $ | 267,436 |  | $ | 122,734 |  | $ | 61,933 |  | $ | — |  | $ | — |  | $ | 452,103 |  |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | — |  |   | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 year (October 31, 2014), which was $35.37 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, 2014 closing price of $35.37 per share.  Please refer to the Outstanding Equity Awards Table of this proxy statement for more information on this subject as the amounts in this column represent awards that have already been granted to the NEOs in previous years. Amounts indicated for for Voluntary and Involuntary for Cause Termination represent deferred shares that have already been earned. |

|     |                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | This amount represents the value of all unvested cash-settled performance shares based on a change in control effective October 31, 2014 with a closing price of $35.37. |

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

|     |                                                                               |
|-----|-------------------------------------------------------------------------------|
| (5) | This 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 terminates for any reason, including due to his death or disability, Mr. Clarke will be entitled to unpaid and accrued payments and benefits. |

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

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

----

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

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

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

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

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

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

|     |                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | This amount is 60% of annualized base salary as of October 31, 2014 and is not offset by other sources of income, such as social security. It represents the amount that would be paid annually over the term of the disability. |

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

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

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (11) | Included in the Severance Amount /Cash Payment figure above for Change in Control is the lump sum cash payment equal to the difference in (i) the actuarial present value of the NEOs non-tax qualified pension benefits assuming the executive was three years older and had three more years of service, over (ii) the actuarial present value of the NEOs non-tax qualified pension benefits at the date of termination. The figures are as follows:  For Mr. Allen $661,920 and Mr. Tech $1,804,495. Mr. Clarke's Employment Agreement does not have a provision for this lump sum cash payment since he is not eligible for the SERP. However, since he is a participant in the SRAP, he would be eligible to receive his lump sum SRAP payment in the amount of $139,702. |

----

|         |                                 |
|---------|---------------------------------|
| • | Compensation Program Structure: |

|         |                                                                                          |
|---------|------------------------------------------------------------------------------------------|
| ◦ | Our Compensation Committee approves our overall compensation philosophy and plan design; |

|         |                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------|
| ◦ | Our compensation structure includes a mix of base salary, short-term and long-term incentives; and |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Our Compensation Committee makes compensation decisions that are informed by an analysis of the compensation paid by our peers. |

|         |                                 |
|---------|---------------------------------|
| • | Executive Stock Ownership Plan: |

|         |                                                       |
|---------|-------------------------------------------------------|
| ◦ | Aligns executives’ interests with stockholders; |

|         |                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Imposes ownership requirements of 1x base pay for executives, 3x base pay for senior executives, and 6x base pay for the CEO; and |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Imposes ownership requirements for executives that include a minimum retention period upon fulfilling guidelines in addition to required holding period. |

|         |                             |
|---------|-----------------------------|
| • | 2014 Annual Incentive Plan: |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Design focuses on manufacturing cash, EBITDA and market share, three key financial performance metrics relevant to Navistar’s turnaround strategy. |

|         |                              |
|---------|------------------------------|
| • | Long-Term Incentives Awards: |

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

|         |                                                                  |
|---------|------------------------------------------------------------------|
| ◦ | LTI awards are calculated based on actual grant date values; and |

|         |                                                                                        |
|---------|----------------------------------------------------------------------------------------|
| ◦ | Performance-based LTI awards are determined based on a performance / potential matrix. |

|         |                                          |
|---------|------------------------------------------|
| • | Executive Severance Agreements ("ESAs"): |

|         |                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------|
| ◦ | The Change-in-Control definition in our new ESAs excludes funds affiliated with designated board members; |

|         |                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Good Reason in our new ESAs requires a decrease in the executive’s organizational level or a decrease in the organizational level of the supervisor to below that of the executive; and |

|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| ◦ | Pro-rata bonuses are excluded from the calculation of any pension/retirement benefit. |

|         |                                                                      |
|---------|----------------------------------------------------------------------|
| • | Other Controls and Procedures that Discourage Excessive Risk-Taking: |

|         |                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | The Company has adopted capital expenditure approval policies and procedures that control the possibility of engaging in unintended risk-taking; |

|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | The Company has adopted a clawback or recoupment policy that requires the repayment of short-and long-term incentive based compensation as a result of a financial restatement or intentional misconduct. |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |
| Compensation Element                         | Calendar Year 2014 Compensation Program |
| Annual Retainer:                                  | $120,000 retainer only; $100,000 paid in cash, $20,000 paid in restricted stock |
| Additional Chairman of the Board Annual Retainer: | $140,000 |
| 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 orPaid inCash ($)(1)(2)(3) | StockAwards($)(2)(3)(4)(5)(6) | OptionAwards($)(5)(6)(7) | All OtherCompensation($) | Total($) |
| John D. Correnti       | 110,008 |  | 19,992 |  | 81,000 |  | — |  | 211,000 |  |
| Michael N. Hammes      | 110,008 |  | 19,992 |  | 81,000 |  | — |  | 211,000 |  |
| Vincent J. Intrieri    | 105,008 |  | 19,992 |  | 81,000 |  | — |  | 206,000 |  |
| James H. Keyes         | 260,008 |  | 19,992 |  | 81,000 |  | — |  | 361,000 |  |
| Stanley A. McChrystal  | — |  | 120,000 |  | 81,000 |  | — |  | 201,000 |  |
| Samuel J. Merksamer    | 100,008 |  | 19,992 |  | 81,000 |  | — |  | 201,000 |  |
| Mark H. Rachesky       | 20,720 |  | 104,280 |  | 81,000 |  | — |  | 206,000 |  |
| Michael F. Sirignano   | — |  | 77,442 |  | — |  | — |  | 77,442 |  |
| Dennis D. Williams (8) | 120,000 |  | — |  | — |  | — |  | 120,000 |  |

|     |                                                                                   |
|-----|-----------------------------------------------------------------------------------|
| (1) | Amounts in this column reflect fees earned by our non-employee directors in 2014. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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.  General Stanley A. McChrystal, 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 2014.  General McChrystal deferred receipt of 100% of his quarterly retainer fees in DSUs and has received 3,114.684 DSUs through September 30, 2014.  Dr. Rachesky deferred receipt of 100% of his quarterly retainer fees, except the portion payable in restricted stock, in calendar year 2014 and has received 2,108.270 DSUs through September 30, 2014. Mr. Sirignano deferred receipt of 100% of his quarterly retainer fees in calendar year 2014 and has received 1,921.052 DSUs through September 30, 2014.  The amount of DSUs for General McChrystal, 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 General McChrystal during 2014 will be converted into Common Stock and  issued within 60 days after his separation from service on the Board.  The units issued to Dr. Rachesky and Mr. Sirignano during 2014 will be converted in Common Stock and issued within 60 days after January 1, 2015. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Effective April 1, 2014, each non-employee director received 592 shares of restricted stock in lieu of $20,000 of their first quarter retainer, except for General McChrystal 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.  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, 2014. |

|     |                                                                                                                                                                                                                                                                                                                                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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, 2014, including DSUs owned by Mr. Correnti, 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 StockAwards Outstanding (#) |  |
| John D. Correnti              | 18,535 |  |
| Michael N. Hammes             | 6,987 |  |
| Vincent J. Intrieri           | 1,823 |  |
| James H. Keyes                | 20,432 |  |
| General Stanley A. McChrystal | 10,904 |  |
| Samuel J. Merksamer           | 1,177 |  |
| Mark H. Rachesky              | 4,578 |  |
| Michael F. Sirignano          | 1,921 |  |
| Dennis D. Williams            | — |  |

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

|     |                                                                                                                                                                                                                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | The values in this column reflect the grant date fair value as determined in accordance with FASB ASC Topic 718.  For additional information see the consolidated financial statements in our Annual Report on Form 10-K for the year ended October 31, 2014 regarding assumptions underlying valuation of equity awards. |

|     |                                                                                                                                                                                                  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | The number of options granted in 2014 and the aggregate number of stock options outstanding for each non-employee director as of October 31, 2014 are indicated in the table below. |

----

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |
| Name                          | Total Stock OptionAwards Outstanding at2014 Year End (#) | Option AwardsGranted During2014 (#) | GrantPrice ($) | Grant Date Fair Value of Option Awards Granted During Year ($)(a) |
| John D. Correnti              | 34,600 |  | 5,000 |  | 39.32 |  | 81,000 |  |
| Michael N. Hammes             | 25,400 |  | 5,000 |  | 39.32 |  | 81,000 |  |
| Vincent J. Intrieri           | 10,000 |  | 5,000 |  | 39.32 |  | 81,000 |  |
| James H. Keyes                | 34,600 |  | 5,000 |  | 39.32 |  | 81,000 |  |
| General Stanley A. McChrystal | 15,000 |  | 5,000 |  | 39.32 |  | 81,000 |  |
| Samuel J. Merksamer           | 10,000 |  | 5,000 |  | 39.32 |  | 81,000 |  |
| Mark H. Rachesky              | 10,000 |  | 5,000 |  | 39.32 |  | 81,000 |  |
| Michael F. Sirignano (b)      | — |  | — |  | — |  | — |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | These amounts do not reflect compensation realized by our directors. The amounts shown represent the value of the stock options based on the grant date fair value of the award as determined in accordance with FASB ASC Topic 718. The stock options generally vest over a three year period with 1/3rd vesting on each of the first three anniversaries of the date on which they are awarded, so that in three years the stock options are 100% vested. The stock options granted on December 16, 2013 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, 2014. |

|     |                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------|
| (b) | Mr. Sirignano joined the Board on March 10, 2014, and did not receive a stock option award in 2014. |

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

----

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

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |
| Plan Category(1)                                                | (a)Number of Securitiesto be Issued UponExercise ofOutstandingOptions, Warrantsand Rights | (b)Weighted-AverageExercise Price ofOutstanding Options,Warrants and Rights | (c)Number of SecuritiesRemaining Available forFuture Issuance UnderEquity Compensation Plans(Excluding SecuritiesReflected in Column(a)) |
| Equity compensation plans approved by stockholders              | 6,076,661 (2) |  | $37.18 (3) | 1,124,273 (4) (5) |  |
| Equity compensation plans not approved by stockholders(6)  | 47,513 (6) (7) |  | N/A (3) | — |  |
| Total                                                           | 6,124,174 |  | N/A | 1,124,273 |  |

|     |                                                                                                                                                                                                                                                                                                                             |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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, 2014, there were 645,529 shares of Common Stock held in these plans. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | This number includes stock options, restoration stock options, DSUs and PSUs (as described in the Executive Stock Ownership Program discussed below) granted under our 2004 PIP (as supplemented by the Restoration Stock Option Program); and stock options, performance stock options, RSUs, DSUs, PSUs and performance units granted under our 2013 PIP. Under the Restoration Stock Option Program, generally one may exercise vested options by presenting shares that have a total market value equal to the option price times the number of options.  Restoration options are then granted at the market price in an amount equal to the number of shares that were used to exercise the original option, plus the number of shares that are withheld for the required tax liability.  Participants who own non-qualified stock options that were vested prior to December 31, 2004, may also defer the receipt of shares of Common Stock due in connection with a restoration stock option exercise of these options.  Participants who elect to defer receipt of these shares will receive deferred stock units.  The deferral feature is not available for non-qualified stock options that vest on or after January 1, 2005.  The Restoration Stock Option Program was eliminated for all stock options granted on or after December 16, 2008.  Stock options awarded to employees for the purchase of Common Stock from the 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, 2014, 2,594,025 stock option awards, 2,220 DSUs, and 38,723 PSUs remain outstanding for shares of Common Stock reserved for issuance under the 2004 PIP, and 2,673,773 stock options, including performance options, 161,115 RSUs, 583,056 performance units, 11,271 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, PSUs, and performance units settled in shares do not have an exercise price and are settled only for shares of our Common Stock on a one-for-one basis.  These awards have been disregarded for purposes of computing the weighted-average exercise price. For more information on DSUs and PSUs see the discussion under the paragraph below entitled “The Ownership Program.”  There were no options, warrants, or rights outstanding under the unapproved plans as of October 31, 2014. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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.   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, |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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. |

|     |                                                                                                                                                                                                        |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | Includes 1,821 DSUs and 6,371 PSUs granted under the Ownership Program and 39,322 deferred stock units granted under the Deferred Fee Plan; all of which were outstanding as of October 31, 2014. |

----

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

----

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

|                    |
|--------------------|
|                    |  |  |
| (in millions)      | 2014 | 2013 |
| Audit fees         | $12.0 | $12.7 |
| Audit-related fees | 0.9 | 0.5 |
| Tax fees           | 0.2 | — |
| All other fees     | — | — |
| Total fees         | $13.1 | $13.2 |

----

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

|         |                                                         |
|---------|---------------------------------------------------------|
| • | No base salary increases were made to our NEOs in 2014; |

|         |                                                     |
|---------|-----------------------------------------------------|
| • | With one exception, no AI awards were paid in 2014; |

|         |                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------|
| • | The performance stock option portion of the 2014 LTI award based on Operating Cash Flow is not likely to be met; |

|         |                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------|
| • | The performance share unit portion of the 2014 LTI award based on Average EBITDA Margin is not likely to be met; and |

|         |                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------|
| • | The 2013 and 2014 LTI awards based on EBITDAPO and market share goals granted to the CEO are not likely to be met. |

----

|                                                                                                                                                                                                |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                |
| PROPOSAL FOUR - THE AMENDMENT AND RESTATEMENT OF THE COMPANY'S CERTIFICATE OF INCORPORATION TO ELIMINATE THE SUPERMAJORITY VOTING PROVISION AND THE NO LONGER OUTSTANDING CLASS B COMMON STOCK |

----

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | The Supermajority Voting Provisions and related provisions will be eliminated from the Charter; and |

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | All references to Class B Common Stock will be deleted from the Charter. |

----

|                                                                                                                                                                                                                                     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                     |
| PROPOSAL FIVE - THE AMENDMENT AND RESTATEMENT OF THE COMPANY'S CERTIFICATE OF INCORPORATION TO ELIMINATE A NUMBER OF PROVISIONS THAT HAVE EITHER LAPSED BY THEIR TERMS OR WHICH CONCERN CLASSES OF SECURITIES NO LONGER OUTSTANDING |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Article Fourth, Section I.A, of the Charter describes the terms and conditions of our $6.00 Cumulative Convertible Preferred Stock, Series G (With $1.00 Par Value) (the "Series G Stock").  The Series G Stock was originally issued in 1986 in order to reclassify the then existing Series C Preferred Stock into the Series G Stock.  The Series G Stock was completely redeemed by the Company in 1998.  Nonetheless, the terms of the Series G Stock remain in the Charter even though no Series G Stock is outstanding.  We propose deleting the terms of the Series G Stock. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Article Fourth, Section II.A, of the Charter describes the terms and conditions of our Nonconvertible Junior Preference Stock, Series A (With Par Value of $1.00) (the "Series A Stock"). The Series A Stock was originally issued to the Supplemental Trust in 1993 in connection with the Shy Settlement.  The Series A Stock was completely redeemed by the Company in 1999.  Nonetheless, the terms of the Series A Stock remain in the Charter even though no Series A Stock is outstanding.  We propose deleting the terms of the Series A Stock. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Portions of Article Seventh of the Charter still refer to the Company having had a staggered Board.  At the 2012 annual meeting of our stockholders, the stockholders approved an amendment to the Charter which had the effect of de-staggering our Board.  The proposed amendment and restatement of Article Seventh eliminate from the Charter references to a staggered Board and the provisions implementing the de-staggering of our Board. |

|         |                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Article Eleventh of the Charter describes the terms and conditions of a net operating loss tax pill (the "NOL Pill") that was put in the Charter in 1993 in connection with the Shy Settlement.  Article 11 (and the NOL Pill), by the terms thereof, expired in 2001.  Nevertheless the entire provision remains set forth in our Charter.  We propose deleting Article 11. |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Lastly, we propose making certain other minor clean-up, non-substantive changes, clarifications and cross-reference corrections as marked in Appendix C. |

----

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

----

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

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

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

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

----

|                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                               |  |
| Registered Stockholders(if appointing a representative to attend and/or vote on his/her behalf)                                                                                                                                                                                                                                                                                                                               | Beneficial Holders |
| For ownership verification provide:•      name(s) of stockholder•      address•      phone number•      social security number and/or stockholder account number; or•      a copy of your proxy card showing stockholder name and address | For ownership verification provide:•      a copy of your January brokerage account statement showing Navistar stock ownership as of the record date (12/15/14);•      a letter from your broker, bank or other nominee verifying your record date (12/15/14) ownership; or•      a copy of your brokerage account voting instruction card showing stockholder name and address |
| Also include:•      name of authorized proxy representative, if one appointed•      address where tickets should be mailed and phone number                                                                                                                                                                                                           | Also include:•      name of authorized proxy representative, if one appointed•      address where tickets should be mailed and phone number |

----

|                                                  |
|--------------------------------------------------|
|                                                  |
| 3M Company                                       |
| A. M. Castle & Co.                           |
| A. O. Smith Corporation                          |
| Aaron's, Inc.                                    |
| Abbott Laboratories                              |
| AbbVie Inc.                                      |
| Academy Sports & Outdoors, Ltd.              |
| Accenture                                        |
| Access Midstream Partners LP                     |
| ACCO Brands Corporation                          |
| ACI Worldwide                                    |
| ACR Electronics, Inc.                            |
| Acushnet Company                                 |
| Adobe Systems Incorporated                       |
| Advocate Health Care                             |
| AECOM Technology Corporation                     |
| Aegion Corp.                                     |
| The AES Corporation                              |
| Agilent Technologies, Inc.                       |
| AGL Resources Inc.                               |
| Air Products and Chemicals, Inc.                 |
| Alcoa Inc.                                       |
| Allergan, Inc.                                   |
| Alliant Energy Corporation                       |
| ALSAC-St. Jude's                                 |
| Altria Group, Inc.                               |
| Ameren Corporation                               |
| American Axle & Manufacturing Holdings, Inc. |
| American Bureau of Shipping Inc                  |
| American Electric Power Company, Inc.            |
| American Greetings Corporation                   |
| American Heart Association                       |
| American Midstream GP, LLC                       |
| AMSTED Industries Incorporated                   |
| Amway Corp.                                      |
| Analog Devices, Inc.                             |
| Andersen Corporation                             |
| Anheuser-Busch Companies, Inc.                   |
| ANN INC.                                         |
| Arby's Restaurant Group                          |
| Arkema Inc.                                      |
| Armstrong World Industries, Inc.                 |
| Au Bon PAin                                      |
| Aurora Health Care, Inc.                         |
| Automatic Data Processing, Inc.                  |
| Avis Budget Group, Inc.                          |
| BAE Systems, Inc.                                |
| Bain & Company, Inc.                         |

|                                        |
|----------------------------------------|
|                                        |
| Balfour Beatty Construction, LLC       |
| Ball Corporation                       |
| The Bama Companies, Inc                |
| Baxter International Inc.              |
| Beam Suntory Inc.                      |
| Belden Inc.                            |
| Big Heart Pet Brands                   |
| Bill Barrett Corporation               |
| Black Angus Steakhouse                 |
| Black Hills Corporation                |
| Blue Diamond Growers                   |
| Blueknight Energy Partners, LP         |
| BNSF Railway Company                   |
| Boddie Noell Enterprises Inc           |
| The Boeing Company                     |
| Boise Cascade Company                  |
| BorgWarner Inc.                        |
| Boston Scientific Corporation          |
| Brady Corporation                      |
| BreitBurn Energy Partners L.P.         |
| Briggs & Stratton Corporation      |
| Brinker International Inc              |
| Broadcom Corporation                   |
| Broadridge Financial Solutions, Inc.   |
| Brunswick Corporation                  |
| Buckeye Partners, L.P.                 |
| Buffalo Wild Wings                     |
| Bush Brothers & Company            |
| Cablevision Systems Corporation        |
| Calgon Carbon Corporation              |
| Callaway Golf Company                  |
| Campbell Soup Company                  |
| Capella Education Company              |
| Cardtronics, Inc.                      |
| Cargill, Incorporated                  |
| Caribou Coffee Company, Inc.           |
| Carlson Restaurants Worldwide Inc.     |
| Carter's, Inc.                         |
| Case New Holland                       |
| Caterpillar Inc.                       |
| CDW Corporation                        |
| CenterPoint Energy, Inc.               |
| CH2M Hill Companies, Ltd.              |
| Chart Industries, Inc.                 |
| Checkers Drive-In Restaurants, Inc     |
| Cheniere Energy, Inc.                  |
| Chicago Bridge & Iron Company N.V. |
| Chipotle Mexican Grill, Inc.           |
| CHS Inc.                               |
| Ciena Corporation                      |
| Cisco Systems, Inc.                    |
| Clearwater Paper Corporation           |
| Cliffs Natural Resources Inc.          |
| The Clorox Company                     |

----

|                                            |
|--------------------------------------------|
|                                            |
| Cobham Management Services Inc.            |
| The Coca-Cola Company                      |
| Colfax Corporation                         |
| Colgate-Palmolive Company                  |
| Colorado Springs Utilities                 |
| Colson Associates, Inc.                    |
| Comcast Corporation                        |
| Computer Sciences Corporation              |
| ConAgra Foods, Inc.                        |
| Connexus Energy                            |
| Consolidated Edison                        |
| Cott Corporation                           |
| CraftWorks Restaurants & Breweries Inc |
| Crestwood Midstream Partners LP            |
| CROWN CASTLE                               |
| Crown Worldwide Moving and Storage Company |
| Cubic Corporation                          |
| Cummins Inc.                               |
| Curtiss-Wright Corporation                 |
| CVS                                        |
| Cypress Energy Partners, L.P.              |
| Dairy Queen                                |
| Dana Holding Corporation                   |
| Darden Restaurants, Inc.                   |
| Dart Container Corporation                 |
| Dave & Buster's, Inc.                  |
| Dean Foods Company                         |
| Deere & Company                        |
| Delhaize America                           |
| Deloitte & Touche L.L.P.               |
| Delphi Corporation                         |
| Deluxe Corporation                         |
| Denny's Corporation                        |
| Denso International America, Inc.          |
| Dex Media                                  |
| Diageo North America, Inc.                 |
| Dine Equity Inc.                           |
| DIRECTV                                    |
| Dolby Laboratories, Inc.                   |
| Dollar General Corporation                 |
| Domino's Pizza, Inc.                       |
| Donaldson Company, Inc.                    |
| Donatos Pizzeria Corp.                     |
| Dover Corporation                          |
| The Dow Chemical Company                   |
| Drew Marine USA Inc                        |
| Dst Systems, Inc.                          |
| DSW Inc.                                   |
| DTE Energy Company                         |
| Dunkin' Brands, Inc.                       |
| Duquesne Light Holdings Inc.               |
| Dynegy Inc.                                |
| E. I. du Pont de Nemours and Company       |
| Eastman Chemical Company                   |

|                                                   |
|---------------------------------------------------|
|                                                   |
| Eastman Kodak Company                             |
| Eaton Corporation                                 |
| Ecolab Inc.                                       |
| EDF Renewable Energy (also known as enXco, Inc.)  |
| Edison International                              |
| Edwards Lifesciences                              |
| Elkay Manufacturing Company                       |
| Emerson Electric Co.                              |
| Enbridge Energy Partners                          |
| Energizer Holdings, Inc.                          |
| Energy Transfer Partners, L.P.                    |
| EnergySolutions                                   |
| EnergySource LLC                                  |
| Entergy Corporation                               |
| Enterprise Products Partners L.P.                 |
| EP Energy (Formerly known as El Paso Corporation) |
| Equifax Inc.                                      |
| Equinix                                           |
| ESCO Technologies Inc.                            |
| The Estee Lauder Companies Inc.                   |
| Exelon Corporation                                |
| F5 Networks                                       |
| Fairchild Semiconductor                           |
| Fazoli's                                          |
| Federal Reserve Information Technology            |
| Federal-Mogul Corporation                         |
| Fellowes, Inc.                                    |
| Ferrara Candy Company                             |
| Ferrellgas Partners, L.P.                         |
| Fiesta Restaurant Group, Inc.                     |
| First Data Corporation                            |
| FirstEnergy Corp.                                 |
| FirstGroup America, Inc.                          |
| Fortune Brands Home & Security                |
| Foster Wheeler AG                                 |
| Freeport-McMoRan Copper & Gold Inc.           |
| Freescale Semiconductor, Inc.                     |
| Frisch's Restaurants, Inc.                        |
| FTD, Inc.                                         |
| Furr's Family Dining                              |
| GAF Materials Corporation                         |
| Garden Fresh Restaurant Corp.                     |
| Gartner, Inc.                                     |
| Gate Gourmet, Inc.                                |
| GATX Corporation                                  |
| Gemological Institute of America                  |
| General Dynamics Corporation                      |
| General Mills, Inc.                               |
| General Motors Company                            |
| Genesis Energy LLC                                |
| Genuine Parts Company                             |
| Global Payments Inc.                              |
| Golden Corral Corporation                         |
| The Goodyear Tire & Rubber Company            |

----

|                                                           |
|-----------------------------------------------------------|
|                                                           |
| H&R Block                                             |
| H.B. Fuller Company                                       |
| Hallmark Cards, Inc.                                      |
| Hanesbrands Inc.                                          |
| Harley-Davidson, Inc.                                     |
| HCA Holdings, Inc.                                        |
| Helix Energy Solutions Group, Inc.                        |
| Hendrickson                                               |
| Herman Miller, Inc.                                       |
| The Hershey Company                                       |
| Hi-Crush Partners LP                                      |
| Hillshire Brands                                          |
| Hilton Worldwide                                          |
| HNTB                                                      |
| HollyFrontier Corp                                        |
| Hormel Foods Corporation                                  |
| Huntington Ingalls Industries                             |
| Huron Consulting Group Inc.                               |
| Hy-Vee, Inc.                                              |
| Hyatt Hotels Corporation                                  |
| Iberdrola Renewables Inc.                                 |
| ICF International, Inc.                                   |
| IDEX Corporation                                          |
| IHI Power Services Corp.                                  |
| Illinois Tool Works Inc.                                  |
| Illumina                                                  |
| IMS Health Inc.                                           |
| Ingersoll-Rand plc                                        |
| Ingram Industries Inc.                                    |
| Ingredion (Former Name Corn Products International, Inc.) |
| Insperity, Inc.                                           |
| Integrys Energy Services, Inc.                            |
| International Paper Company                               |
| Intersil                                                  |
| Intrawest Corporation                                     |
| Iron Mountain Incorporated                                |
| ITC Holdings                                              |
| Itron                                                     |
| J. C. Penney Company, Inc.                                |
| The J. M. Smucker Company                                 |
| J. R. Simplot Company                                     |
| Jack in the Box Inc.                                      |
| Jacobs Engineering Group Inc.                             |
| Jamba, Inc.                                               |
| James Hardie                                              |
| JEA                                                       |
| Jo-Ann Stores, LLC                                        |
| Johns Manville Corporation                                |
| Johnson & Johnson                                     |
| Johnson Controls, Inc.                                    |
| Jones Lang LaSalle Incorporated                           |
| Joy Global Inc.                                           |
| Kaman Corporation                                         |
| Kellogg Company                                           |

|                                       |
|---------------------------------------|
|                                       |
| Kelly Services, Inc.                  |
| Keystone Foods LLC                    |
| Kimberly-Clark Corporation            |
| Kinder Morgan, Inc.                   |
| Kohler Company                        |
| KONE, Inc.                            |
| Krispy Kreme Doughnuts Inc            |
| Kronos Incorporated                   |
| The Krystal Company                   |
| L'Oreal USA, Inc.                     |
| L-3 Communications Holdings, Inc.     |
| L.L. Bean, Inc.                       |
| la Madeleine Country French Cafe      |
| Lafarge North America Inc.            |
| Land O'Lakes                          |
| Laureate Education, Inc.              |
| Legal Sea Foods                       |
| Leggett & Platt, Incorporated     |
| Lehigh Hanson North America           |
| Lennar Corporation                    |
| Lennox International Inc.             |
| Levi Strauss & Co.                |
| Linear Technology                     |
| Lockheed Martin Corporation           |
| Logan's Roadhouse                     |
| Long John Silver's, Inc.              |
| Lowe's Companies, Inc.                |
| Luxottica Retail                      |
| Magellan Midstream Partners, L.P.     |
| ManpowerGroup                         |
| Marriott International, Inc.          |
| Mary Kay Inc.                         |
| Masco Corporation                     |
| Mattel, Inc.                          |
| Mazzio's Corporation                  |
| McCormick & Company, Incorporated |
| McDonald's Corporation                |
| Mead Johnson Nutrition Company        |
| MeadWestvaco Corporation              |
| Mednax, Inc                           |
| Medtronic, Inc.                       |
| Merrill Corporation                   |
| MillerCoors LLC                       |
| The MITRE Corporation                 |
| Mohawk Industries, Inc.               |
| Mondelez International, Inc.          |
| Moody's Corporation                   |
| Mueller Water Products, Inc.          |
| Navigant Consulting, Inc.             |
| Navistar International                |
| Nebraska Public Power District        |
| The Neiman Marcus Group, Inc.         |
| Nestle Purina Petcare Company         |
| Nestle USA, Inc.                      |

----

|                                               |
|-----------------------------------------------|
|                                               |
| NetApp Inc.                                   |
| New York Power Authority                      |
| New York University                           |
| Newell Rubbermaid Inc.                        |
| NewMarket Corporation                         |
| NewPage Corporation                           |
| The Nielsen Company                           |
| NIKE, Inc.                                    |
| Nintendo of America, Inc.                     |
| Nordson Corporation                           |
| Northern Star Generation Services Company LLC |
| Northrop Grumman Corporation                  |
| Novo Nordisk Inc.                             |
| NRG Energy, Inc.                              |
| NuStar Energy LP                              |
| Occidental Midstream and Marketing Group      |
| OCI Resources LP                              |
| OGE Energy Corp.                              |
| Old Dominion Electric Cooperative             |
| Olin Corporation                              |
| One Gas, Inc.                                 |
| ONEOK, Inc.                                   |
| Oracle Corporation                            |
| Orbital Sciences                              |
| Oshkosh Truck Corporation                     |
| Owens Corning                                 |
| Owens-Illinois, Inc.                          |
| P.F. Chang's China Bistro,Inc.                |
| PACCAR Inc                                    |
| Packaging Corporation of America              |
| The Pampered Chef, Ltd.                       |
| Panduit Corp.                                 |
| Papa Gino's                                   |
| Papa John's International, Inc.               |
| Paychex, Inc.                                 |
| Payless ShoeSource, Inc.                      |
| Pella Corporation                             |
| Pentair, Inc.                                 |
| PepsiCo, Inc.                                 |
| Pernod Ricard USA                             |
| PetSmart, Inc.                                |
| PG&E Corporation                          |
| Philip Morris International Inc.              |
| Pier 1 Imports, Inc.                          |
| Pinnacle West Capital Corporation             |
| PJM Interconnection LLC                       |
| Polaris Industries Inc.                       |
| PolyOne Corporation                           |
| Popeyes Louisiana Kitchen, Inc                |
| Portland General Electric Company             |
| PricewaterhouseCoopers International Limited  |
| ProBuild Holdings, Inc.                       |
| Public Service Enterprise Group Incorporated  |
| Public Utility District  1 of Chelan County   |

|                                                |
|------------------------------------------------|
|                                                |
| PVH Corp.                                      |
| Quad/Graphics, Inc.                            |
| Qualcomm Inc.                                  |
| Randstad North America L.P.                    |
| Raytheon Company                               |
| Realogy Corporation                            |
| Red Robin Gourmet Burgers, Inc.                |
| Regal Beloit Corporation                       |
| Revlon, Inc.                                   |
| Reynolds American Inc.                         |
| RF Micro Devices                               |
| Rich Products Corporation                      |
| Ricoh Americas Corporation                     |
| Robert Half                                    |
| Rockwell Automation, Inc.                      |
| Rockwell Collins, Inc.                         |
| Rolls-Royce North America Holdings Inc.        |
| ROVI                                           |
| Ruth's Hospitality Group, Inc.                 |
| Ryder System, Inc.                             |
| S. C. Johnson & Son, Inc.                  |
| Samsung Telecommunications America General LLC |
| Sandia National Laboratories                   |
| Sargento Foods Inc.                            |
| SCANA Corporation                              |
| Schreiber Foods, Inc.                          |
| Science Applications International Corporation |
| Sears Holdings Corporation                     |
| Seattle City Light                             |
| SemGroup Corp                                  |
| Seminole Electric Cooperative, Inc.            |
| Sempra Energy                                  |
| The ServiceMaster Company                      |
| The Sherwin-Williams Company                   |
| Siemens Corporation                            |
| Simpson Manufacturing Co., Inc.                |
| Smokey Bones                                   |
| Snap-on Incorporated                           |
| Sodexo, Inc.                                   |
| Sonic Automotive, Inc.                         |
| Sonoco Products Company                        |
| The Southern Company Services                  |
| Southwest Gas Corporation                      |
| Spectra Energy Corp                            |
| Standard Motor Products, Inc.                  |
| Star West Generation LLC                       |
| Starbucks Corporation                          |
| Steelcase Inc.                                 |
| Summit Midstream Partners, LP                  |
| SunCoke Energy, Inc.                           |
| SUPERVALU INC.                                 |
| Symantec                                       |
| Sypris Solutions, Inc.                         |
| Taco John's International, Inc.                |

----

|                                             |
|---------------------------------------------|
|                                             |
| Target Corporation                          |
| TDS Telecommunications Corporation          |
| TE Connectivity Ltd.                        |
| Teledyne Technologies Incorporated          |
| Tenneco Inc.                                |
| Teradata Corporation                        |
| Terex Corporation                           |
| Texas Instruments Incorporated              |
| Textron Inc.                                |
| THE CHEESECAKE FACTORY INCORPORATED         |
| Thomas & Betts Corporation              |
| ThyssenKrupp North America, Inc             |
| Tim Hortons                                 |
| TransUnion LLC                              |
| Trinchero Family Estates                    |
| Trinity Industries, Inc.                    |
| True Value Company                          |
| TRW Automotive Holdings Corp.               |
| TTX Company                                 |
| Tupperware Brands Corporation               |
| Tyco International, Ltd.                    |
| Tyson Foods, Inc.                           |
| Ulta Salon, Cosmetics & Fragrance, Inc. |
| Underwriters Laboratories Inc.              |
| Unilever United States Inc.                 |
| Union Pacific Railroad Company              |
| United Continental Holdings, Inc.           |
| United Launch Alliance, LLC                 |
| United Parcel Service                       |
| United Stationers Inc.                      |
| United Technologies Corporation             |
| USG Corporation                             |
| Valero Energy Corporation                   |
| Valmont Industries, Inc.                    |
| Varian Medical Systems, Inc                 |
| Verizon Communications Inc.                 |
| Visteon Corporation                         |
| Vulcan Materials Company                    |
| W&T Offshore                            |
| W. L. Gore & Associates, Inc.           |
| W.W. Grainger, Inc.                         |
| Wabash National Corporation                 |
| Wal-Mart Stores, Inc.                       |
| Walgreen Company                            |
| Waste Management, Inc.                      |
| Waters Corporation                          |
| Wegmans Food Markets, Inc.                  |
| Wellhead Electric Company, Inc.             |
| The Wendy's Company                         |
| The Western Union Company                   |
| Westinghouse Electric Company LLC           |
| Whirlpool Corporation                       |
| White Castle System Inc.                    |
| The Williams Companies, Inc.                |

|                         |
|-------------------------|
|                         |
| Williams-Sonoma, Inc.   |
| Wm. Wrigley Jr. Company |
| Wolters Kluwer U.S.     |
| Woodward Inc.           |
| Xcel Energy Inc.        |
| Xerox Corporation       |
| Xylem, Inc              |
| YUM  Brands, Inc.       |
| Zale Corporation        |

----

|                            |
|----------------------------|
|                            |  |  |
| 3M                         | Beeline | Crown Castle |
| A.O. Smith                 | Best Buy | CSC |
| AbbVie                     | Big Lots | CST Brands |
| ABM Industries             | Biogen Idec | CSX |
| Accellent LLC              | Bluegreen Corporation | Cubic |
| Accenture                  | Bob Evans Farms | Cumberland Gulf Group |
| ACH Food                   | Boeing | Curtiss-Wright |
| Acorda Therapeutics        | Boise Cascade | CVS Caremark |
| Actavis                    | Booz Allen Hamilton | Cytec Industries |
| Adecco                     | BorgWarner | Dannon |
| Agilent Technologies       | Boston Scientific | Darden Restaurants |
| Agrium                     | Brembo | Dean Foods |
| Aimia                      | Bristol-Myers Squibb | Deere & Company |
| Air Products and Chemicals | Broadridge Financial Solutions | Dell |
| AK Steel Holding           | Brown-Forman | Delta Air Lines |
| Alcoa                      | Brunswick | Deluxe |
| Alexander & Baldwin    | Bunge | Dentsply |
| Allegion                   | Burlington Northern Santa Fe | Diageo North America |
| Allergan                   | Bush Brothers & Company | DIRECTV Group |
| Alliant Techsystems        | Calgon Carbon | Domtar |
| Altria Group               | Cardinal Health | Donaldson Company |
| Amazon.com                 | Cargill | Dow Corning |
| American Greetings         | Carlson | DST Systems |
| American Sugar Refining    | Carmeuse North America Group | DSW |
| Americas Styrenics         | Carnival | DuPont |
| AmerisourceBergen          | Catamaran | E.W. Scripps |
| AMETEK                     | CDI | Eastman Chemical |
| Amgen                      | Celanese | Eastman Kodak Company |
| AMSTED Industries          | Celestica | Eaton |
| Amway                      | Celgene | eBay |
| Andersons                  | CEVA Logistics | Ecolab |
| Ansell                     | CF Industries | Edwards Lifesciences |
| Appvion                    | CGI Technologies and Solutions | Eli Lilly |
| ARAMARK                    | CH2M Hill | EMC |
| Arby's Restaurant Group    | Charter Communications | EMD Millipore |
| Archer Daniels Midland     | Chemtura | Emerson Electric |
| Arkema                     | Chico's FAS | EnCana Oil & Gas USA |
| Armstrong World Industries | CHS | Equifax |
| Arrow Electronics          | Cintas | Ericsson |
| Arup USA                   | Cisco Systems | Essilor of America |
| AstraZeneca                | Citrix Systems | Estee Lauder |
| AT&T                   | Clearwater Paper Corporation | Esterline Technologies |

----

|                                          |
|------------------------------------------|
|                                          |  |  |
| Automatic Data Processing                | Cliffs Natural Resources | Exel |
| Avis Budget Group                        | Coach | Exelis |
| Avon Products                            | Coca-Cola | Expedia |
| Axiall Corporation                       | Coca-Cola Enterprises | Experian Americas |
| BAE Systems                              | Colfax Corporation | Express Scripts |
| Ball                                     | Columbia Sportswear | Exterran |
| Barrick Gold of North America            | Comcast | Federal-Mogul |
| Baxter                                   | Commercial Metals | Ferrovial |
| Bayer Business & Technology Services | Compass Group | Fluor |
| Bayer CropScience                        | ConAgra Foods | Follett Corporation |
| Bayer Health Care                        | Continental Automotive Systems | Ford |
| BBA Aviation                             | Cooper Standard Automotive | Fortune Brands Home & Security |
| BD (Becton Dickinson)                    | Corning | Frontier Communications |
| Beam Suntory                             | Covance | Fujitsu |
| Bechtel Systems & Infrastructure     | Covidien | G&K Services |
| Beckman Coulter                          | Cracker Barrel Old Country Stores | GAF Materials |

|                      |
|----------------------|
|                      |  |  |
| Gap                  | Johnson & Johnson | Mosaic |
| Gavilon              | Johnson Controls | MTS Systems |
| GENCO                | K. Hovnanian Companies | Murphy Oil |
| General Atomics      | KB Home | Mylan |
| General Dynamics     | KBR | Navigant Consulting |
| General Mills        | Kellogg | Navistar International |
| Gilead Sciences      | Kelly Services | NBTY |
| Glatfelter           | Kennametal | Nestle USA |
| GlaxoSmithKline      | Keurig Green Mountain | Newell Rubbermaid |
| Google               | Kewaunee Scientific Corporation | NewPage |
| Graco                | Keystone Foods | NIKE |
| GROWMARK             | Kimberly-Clark | Nissan North America |
| GTECH                | Kinross Gold | Nokia Corporation |
| H.B. Fuller          | Knowles | Norfolk Southern |
| Hanesbrands          | Koch Industries | Nortek |
| Harley-Davidson      | Kodak Alaris | Northrop Grumman |
| Harman               | Kohler | NuVasive |
| Harsco               | Kraft Foods | Occidental Petroleum |
| Hasbro               | Kyocera Corporation | OM Group |
| HBO                  | L-3 Communications | Omnicare |
| Henry Schein         | Lafarge North America | Openet |
| Hercules Offshore    | Land O'Lakes | Orange Business Services |
| Herman Miller        | Lawson Products | Osram Sylvania |
| Hershey              | Leggett and Platt | Outerwall |
| Hertz                | Lehigh Hanson | Owens Corning |
| Hexcel               | Leidos | P.F. Chang's China Bistro |
| Hilton Worldwide     | Leprino Foods | Pall Corporation |
| Hitachi Data Systems | Level 3 Communications | Panasonic of North America |
| HNI                  | Lifetouch | Parker Hannifin |

----

|                                        |
|----------------------------------------|
|                                        |  |  |
| HNTB                                   | LinkedIn | Parsons Corporation |
| Hoffmann-La Roche                      | Lonza | PepsiCo |
| Home Depot                             | L'Oreal | Perrigo |
| HomeServe USA                          | Lorillard Tobacco | Pfizer |
| Honda of America                       | Lutron Electronics | PHH |
| Hormel Foods                           | LyondellBasell | Pitney Bowes |
| Hospira                                | Magellan Health Services | Plexus |
| HTC Corporation                        | Magellan Midstream Partners | Polaris Industries |
| Hubbell                                | Magna Seating | Polymer Group |
| Hunt Consolidated                      | Makino | PolyOne |
| Husky Injection Molding Systems        | Markit | Potash |
| IBM                                    | Marriott International | Praxair |
| IDEXX Laboratories                     | Mary Kay | Pro-Build Holdings |
| Infineum USA                           | Masco Corporation | PulteGroup |
| Ingersoll Rand                         | McDonald's | Purdue Pharma |
| Intel                                  | McKesson | Quest Diagnostics |
| Intercontinental Hotels Group          | MeadWestvaco | Quintiles |
| International Flavors & Fragrances | Media General | R.R. Donnelley |
| International Game Technology          | Medtronic | Rackspace |
| International Paper                    | Merck & Co. | Rayonier |
| Intuit                                 | Meredith | Recreational Equipment |
| ION Geophysical                        | Meritor | Regal-Beloit |
| Irvine                                 | MFA Oil Company | Regency Centers |
| ITT Corporation                        | Micron Technology | Revlon |
| J.M. Smucker                           | Microsoft | Reynolds Packaging |
| Jack in the Box                        | Milacron | Ricoh Americas |
| Jacobs Engineering                     | MillerCoors | Robertshaw Controls |
| JetBlue Airways                        | Molson Coors Brewing | Rockwell Automation |
| Johns Manville                         | Mondelez | Rockwell Collins |

|                              |
|------------------------------|
|                              |  |  |
| Rolls-Royce North America    | Tronox |   |
| Rowan Companies              | TRW Automotive |   |
| Royal Caribbean Cruises      | Tupperware Brands |   |
| Royal DSM                    | Tyson Foods |   |
| Ryder System                 | UBM |   |
| S.C. Johnson & Son       | Under Armour |   |
| Sage Software                | Underwriters Laboratories |   |
| SAIC                         | Unilever United States |   |
| Saint-Gobain                 | Unisys |   |
| Sanderson Farms              | United Launch Alliance |   |
| Sanofi                       | United Rentals |   |
| SAS Institute                | United States Cellular |   |
| Schreiber Foods              | United States Steel |   |
| Schwan Food Company          | United Technologies |   |
| Scripps Networks Interactive | UPS |   |
| Seagate Technology           | URS |   |
| Sensata Technologies         | USG Corporation |   |

----

|                               |
|-------------------------------|
|                               |  |  |
| ServiceMaster Company         | UTi Worldwide |   |
| ShawCor                       | Valero Energy |   |
| Sherwin-Williams              | Ventura Foods |   |
| Sigma-Aldrich                 | Verizon |   |
| Smith & Nephew            | Vertex Pharmaceuticals |   |
| Snap-on                       | Viacom |   |
| Sonoco Products               | VistaPrint |   |
| Sony Corporation              | Vulcan Materials |   |
| Southwest Airlines            | VWR International |   |
| Spirit AeroSystems            | Walt Disney |   |
| Spirit Airlines               | Waste Management |   |
| Sprint Nextel                 | Weather Company |   |
| SPX                           | Wendy's Group |   |
| SSAB                          | West Pharmaceutical Services |   |
| St. Jude Medical              | Westinghouse Electric |   |
| Staples                       | Westlake Chemical |   |
| Starbucks Coffee              | WEX |   |
| Starwood Hotels & Resorts | Weyerhaeuser |   |
| Steelcase                     | Worthington Industries |   |
| Stryker                       | Xerox |   |
| SunCoke Energy                | XO Communications |   |
| SunGard Data Systems          | Xylem |   |
| Syngenta Crop Protection      | Yamaha Corporation of America |   |
| Target                        |   |   |
| Taubman Centers               |   |   |
| TE Connectivity               |   |   |
| Tech Data                     |   |   |
| TeleTech Holdings             |   |   |
| Teradata                      |   |   |
| Terex                         |   |   |
| Textron                       |   |   |
| Thermo Fisher Scientific      |   |   |
| Tiffany & Co. Time Warner |   |   |
| Time Warner                   |   |   |
| T-Mobile USA                  |   |   |
| Toro                          |   |   |
| Transocean                    |   |   |
| Travelport                    |   |   |
| Tribune                       |   |   |
| Trinity Industries            |   |   |
| Trinseo                       |   |   |

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|           |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | The changes shown are to the Restated Certificate of Incorporation attached as Exhibit A to the Certificate of Merger of Navistar International Corporation and Navistar Holdings, Inc. filed with the Secretary of State of the State of Delaware on June 30, 1993, as amended by certificates of amendment and other certificates thereafter filed with the Secretary of State of the State of Delaware from time to time. |

|           |                                                                                                                                                                                                                 |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | The changes to Article Fourth, Section III, are being effected by the Class B Charter Amendment and Restatement.  All other changes are being effected by the Administrative Charter Amendment and Restatement. |

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| I. | Preferred Stock.  The Preferred Stock may be issued from time to time in one or more series of any number of shares, provided that the aggregate number of shares issued and not canceled of any and all such series shall not exceed the total number of shares of Preferred Stock hereinabove authorized, and with distinctive serial designations, all as shall hereafter be stated and expressed in the resolution or resolutions providing for the issue of such Preferred Stock from time to time adopted by the Board of Directors pursuant to authority so to do which is hereby vested in the Board of Directors.  Each series of Preferred Stock (i) may have such voting powers, full or limited, or may be without voting powers; (ii) may be subject to redemption at such time or times and at such prices; (iii) may be entitled to receive dividends (which may be cumulative or noncumulative) at such rate or rates, on such conditions, and at such times, and payable in preference to, or in such relation to, the dividends payable on any other class or classes or series of stock; (iv) may have such rights upon the dissolution of, or upon any distribution of the assets of, the corporationCompany; (v) may be made convertible into, or exchangeable for, shares of any other class or classes or of any other series of the same or any other class or classes of stock of the corporationCompany, at such price or prices or at such rates of exchange, and with such adjustments; (vi) may be entitled to the benefit of a sinking fund to be applied to the purchase or redemption of shares of such series in such amount or amounts; (vii) may be entitled to the benefit of conditions and restrictions upon the creation of indebtedness of the Company or any subsidiary, upon the issue of any additional stock (including additional shares of such series or of any other series) and upon the payment of dividends or the making of other distributions on, and the purchase, redemption or other acquisition by the Company or any subsidiary of any outstanding stock of the Company; and (viii) may have such other relative, participating, optional or other special rights, qualifications, limitations or restrictions thereof; all as shall be stated in said resolution or resolutions providing for the issue of such Preferred Stock.  Shares of any series of Preferred Stock which have been redeemed (whether through the operation of a sinking fund or otherwise) or which, if convertible or exchangeable, have been converted into or exchanged for shares of stock of any other class or classes shall have the status of authorized and unissued shares of Preferred Stock of the same series and may be reissued as a part of the series of which they were originally a part or may be reclassified and reissued as part of a new series of Preferred Stock to be created by resolution or resolutions of the Board of Directors or as part of any other series of Preferred Stock, all subject to the conditions or restrictions on issuance set forth in the resolution or resolutions adopted by the Board of Directors providing for the issue of any series of Preferred Stock. |

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|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| II. | Preference Stock.  The Preference Stock may be issued from time to time in one or more series of any number of shares, provided that the aggregate number of shares issued and not canceled of any and all such series shall not exceed the total number of shares of Preference Stock hereinabove authorized, and with distinctive serial designations, all as shall hereafter be stated and expressed in the resolution or resolutions providing for the issue of such Preference Stock from time to time adopted by the Board of Directors pursuant to authority so to do which is hereby vested in the Board of Directors.  Each series of Preference Stock (i) may have such |

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|     |                                                                                                                        |
|-----|------------------------------------------------------------------------------------------------------------------------|
| (a) | Employers.  The term “Employers” shall have the meaning assigned to such term in the Settlement Agreement. |

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|      |                                                                                                                                                                                                                                                                                                                                                        |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| III. | Parent Common Stock.  Except as otherwise provided in this Section III or as otherwise required by applicable law, all shares of Common Stock and Class B Common shall be identical in all respects and shall entitle the holders thereof to the same rights and privileges, subject to the same qualifications, limitations and restrictions. |

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|     |                                                                                                                                                                                                                                                                                                       |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IV. | To make By-laws for the Company, and to amend, alter or repeal any By-laws; but any By-laws made by the directors may be altered, amended or repealed by the stockholders at any meeting, provided notice of such proposed alteration, amendment or repeal be included in the notice of such meeting. |

|    |                                                                                                                                                                                                              |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| V. | To remove at any time any officer, agent or employee of the Company, provided, however, that such power of removal may be conferred by the By-laws or by the Board of Directors on any committee or officer. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| VI. | To fix and determine, and to vary the amount of, the working capital of the Company, and to determine the use or investment of any assets of the Company; to set apart out of any of the funds of the Company available for dividends a reserve or reserves for any proper purpose and to abolish any such reserve or reserves; and to declare and authorize payment of such dividends as it shall determine advisable and proper, subject to such restrictions as may be imposed by law. |

|      |                                                                                                                                                                                  |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| VII. | To authorize the purchase or other acquisition of shares of stock of the Company or any of its bonds, debentures, notes, scrip or other securities or evidences of indebtedness. |

|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| VIII. | To determine whether and to what extent, at what times and places, and under what conditions and regulations, the accounts, books and documents of the Company, or any of them, shall be open to the inspection of the stockholders; and no stockholder shall have any right to inspect any account, book or document of the Company, except as conferred by the laws of the State of Delaware or as authorized by resolution adopted by the Board of Directors or by the stockholders of the Company entitled to vote in respect thereof. |

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|     |                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IX. | Except as otherwise provided by law, to determine the places within or without the State of Delaware where any or all of the books of the Company shall be kept. |

|    |                                                                                                                                                                                                                    |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| X. | To authorize the sale, lease or other disposition of any part or parts of the properties of the Company and to cease to conduct the business connected therewith or again to resume the same, as it may deem best. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| XI. | To authorize the borrowing of money; the issuance of bonds, notes, debentures and other obligations or evidences of indebtedness of the Company, secured or unsecured, and the inclusion of provisions as to redeemability and convertibility into shares of stock of the Company or otherwise; and the mortgaging or pledging, as security for money borrowed or bonds, notes, debentures or other obligations issued by the Company, of any property of the Company, real or personal, then owned or thereafter acquired by the Company. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| XII. | Each person who was or is made a party or is threatened to be made a party to or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (“proceeding”), by reason of the fact that he or she is or was a director or officer of the Company (which term shall include any predecessor corporation of this Company) or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans (“indemnitee”), whether the basis of such proceeding is alleged action in an official capacity as a director, officer, employee or agent or in any other capacity while serving as a director, officer, employee or agent, shall be indemnified and held harmless by the Company to the fullest extent authorized by the Delaware General Corporation Law, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than said law permitted the Company to provide prior to such amendment), against all expenses, liability and loss (including attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred or suffered by such indemnitee in connection therewith and such indemnification shall continue as to an indemnitee who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the indemnitee’s heirs, executors and administrators; provided however, that, except as provided in paragraph II of this Article Ninth with respect to proceedings to enforce rights to indemnification, the Company shall indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board of Directors.  The right to indemnification conferred in this Article Ninth shall be a contract right and shall include the right to be paid by the Company the expenses incurred in defending any such proceeding in advance of its final disposition; provided however, that, if the Delaware General Corporation Law requires, the payment of such expenses incurred by a director or officer in his or her capacity as a director or officer (and not in any other capacity in which service was or is rendered by such indemnitee, including, without limitation, service to an employee benefit plan) in advance of the final disposition of a proceeding, shall be made only upon delivery to the Company of an undertaking, by or on behalf of such indemnitee, to repay all |

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|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| XIII. | If a claim under paragraph I of this Article Ninth is not paid in full by the Company within sixty (60) days after a written claim has been received by the Company, except in the case of a claim for expenses incurred in defending a proceeding in advance of its final disposition, in which case the applicable period shall be twenty (20) days, the indemnitee may at any time thereafter bring suit against the Company to recover the unpaid amount of the claim.  If successful in whole or in part in any such suit or in a suit brought by the Company to recover payments by the Company of expenses incurred by an indemnitee in defending in his or her capacity as a director or officer, a proceeding in advance of its final disposition, the indemnitee shall be entitled to be paid also the expense of prosecuting or defending such claim.  In any action brought by the indemnitee to enforce a right to indemnification hereunder (other than an action brought to enforce a claim for expenses incurred in defending any proceeding in advance of its final disposition where the required undertaking, if any, has been tendered to the Company) or by the Company to recover payments by the Company of expenses incurred by an indemnitee in defending, in his or her capacity as a director or officer, a proceeding in advance of its final disposition, the burden of proving that the indemnitee is not entitled to be indemnified under this Article Ninth or otherwise shall be on the Company.  Neither the failure of the Company (including the Board of Directors, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such action that indemnification of the indemnitee is proper in the circumstances because the indemnitee has met the applicable standard of conduct set forth in the Delaware General Corporation Law, nor an actual determination by the Company (including the Board of Directors, independent legal counsel or its stockholders) that the indemnitee has not met such applicable standard of conduct, shall be a presumption that the indemnitee has not met the applicable standard of conduct, or in the case of such an action brought by the indemnitee, be a defense to the action. |

|      |                                                                                                                                                                                                                                                                                                                 |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| XIV. | The rights conferred on any person by paragraphs I and II of this Article Ninth shall not be exclusive of any other right which such person may have or hereafter acquire under any statute, this certificate of incorporation by-law, agreement, vote of stockholders or disinterested directors or otherwise. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| XV. | The Company may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Company or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Company would have the power to indemnify such person against such expense, liability or loss under the Delaware General Corporation Law. |

|      |                                                                                                                                                                                                                                                |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| XVI. | Persons who are not included as indemnitees under paragraph I of this Article Ninth but are employees of the Company or any subsidiary may be indemnified to the extent authorized at any time or from time to time by the Board of Directors. |

|    |                                                                                                                                                                                                                                                                                                                                                                 |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| I. | Certain Restrictions on the Transfer of Stock.  In order to preserve the Tax Benefits, the restrictions set forth below shall apply for the period beginning on the Article Eleventh Effective Date and ending on the Expiration Date, unless the Board of Directors shall fix an earlier or later date in accordance with Section VI of this Article Eleventh. |

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|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| II. | Attempted Transfer in Violation of Transfer Restrictions.  Unless the consent or waiver of the Board of Directors is obtained as provided in Paragraph C or D of Section I, and except as provided in Paragraph C of Section II below, any attempted Transfer of shares of Stock of the Company in excess of the shares that could be Transferred to the transferee without restriction under Paragraph B of Section I is not effective to transfer ownership of such excess shares (the “Prohibited Shares”) to the purported acquiror thereof (the “Purported Acquiror”), and the Purported Acquiror shall not be entitled to any rights as a shareholder of the Company with respect to the Prohibited Shares, including, without limitation, the right to vote or to receive dividends with respect thereto.  Nothing contained in this Article Eleventh shall preclude the settlement of any transaction involving Stock entered into through the facilities of the New York Stock Exchange or any other national securities exchange.  The application of the provisions and remedies described in the first sentence of this |

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|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| III. | Prompt Enforcement Against Purported Acquiror.  Within 30 business days of learning of a purported Transfer of Prohibited Shares to a Purported Acquiror or a Transfer of Stock to a Prohibited Party, the Company through its Secretary or any Assistant Secretary shall demand that the Purported Acquiror or Prohibited Party surrender to the Agent the certificates representing the Prohibited Shares, or any Resale Proceeds, and any Prohibited Distributions, and if such surrender is not made by the Purported Acquiror or Prohibited Party within 30 business days from the date of such demand, the Company shall institute legal proceedings to compel such surrender; provided, however, that nothing in this Section III shall preclude the Company in its discretion from immediately bringing legal proceedings without a prior demand, and also provided that failure of the Company to act within the time periods set out in this Section III shall not constitute a waiver of any right of the Company to compel any transfer required by Section II.  Upon a determination by the Board of Directors that there has been or is threatened a purported Transfer of Prohibited Shares to a Purported Acquiror or a Transfer of Stock to a Prohibited Party or any other violation of Paragraph B of Section I, the Board of Directors may authorize such additional action as it deems advisable to give effect to the provisions of this Article Eleventh, including, without limitation, refusing to give effect on the books of the Company to any such purported Transfer or instituting proceedings to enjoin any such purported Transfer. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IV. | Obligation to Provide Information.  The Company may require as a condition to the registration of the Transfer of any Stock that the proposed transferee furnish to the Company all information reasonably requested by the Company with respect to all the direct or indirect ownership of Stock by the proposed transferee and by Persons controlling, controlled by or under common control with the proposed transferee. |

|    |                                                                                                                                                                                               |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| V. | Legends.  All certificates evidencing Stock that is subject to the restrictions on transfer set forth in this Article Eleventh shall bear a conspicuous legend referencing such restrictions. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| VI. | Further Actions.  Subject to the second and third sentences of the introductory paragraph of Section II, nothing contained in this Article Eleventh shall limit the authority of the Board of Directors to take such other action to the extent permitted by law as it deems necessary or advisable to protect the Company and the interests of the holders of its securities in preserving the Tax Benefits.  Without limiting the generality of the foregoing, in the event of a change in law (including applicable regulations) making one or more of the following actions necessary, in the case of actions described in clauses (B), (C) and (D) below, or desirable, in the case of actions described in clause (A) below, the Board of Directors may (A) accelerate the Expiration Date, (B) extend the Expiration Date, (C) conform any terms or numbers set forth in the transfer restrictions in Section I to make such terms consistent with the Internal Revenue Code and the Treasury Regulations following any changes therein to the extent necessary to preserve the Tax Benefits, or (D) conform the definitions of any terms set forth in this Article Eleventh to the definitions in effect following such change in law; provided that the Board of Directors shall determine in writing that such acceleration, extension, change or modification is reasonably necessary to preserve the Tax Benefits or that the continuation of these restrictions is no longer reasonably necessary for the preservation of the Tax Benefits, which determination shall be based upon an opinion of legal counsel to the Company and which determination shall be filed with the Secretary of the Company and mailed by the Secretary to all stockholders of the Company within ten days after the date of any such determination. |

|      |                                                                                                                                                                                                                                                                                                                                                                |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| VII. | Severability.  If any provision of this Article Eleventh or the application of any such provision to any Person or under any circumstance shall be held invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Article Eleventh. |

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