Document:

EX-10.2

 Exhibit 10.2 
 EXECUTION VERSION 
  

					
	 J.P. MORGAN SECURITIES LLC
 JPMORGAN CHASE BANK, N.A.
383 Madison Avenue
New York, New York 10179
	  		  	 THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

1251 Avenue of the Americas
 New York, NY 10020

 CONFIDENTIAL 
 February 19, 2013 
 Bridge Term Loan Facility 

Commitment Letter 
 Total
System Services, Inc. 
 One TSYS Way 

Columbus, Georgia 31901 

Attention:  James B. Lipham, Senior Executive Vice President and Chief Financial Officer 

$1,200 Million Bridge Term Loan Facility 
 Ladies and Gentlemen: 
 You have advised JPMorgan Chase Bank, N.A.
(“JPMorgan Chase Bank”), J.P. Morgan Securities LLC (“JPMorgan”) and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU” and together with JPMorgan Chase Bank and JPMorgan, the
“Commitment Parties”, “us” or “we”) that Total System Services, Inc., a Georgia corporation (“you” or the “Borrower”) intends to
acquire (the “Acquisition”), through a merger, NetSpend Holdings, Inc. (the “Target”) pursuant to an Agreement and Plan of Merger (together with all exhibits, schedules and disclosure letters thereto,
the “Merger Agreement”) dated as of February 19, 2013 among the Target, General Merger Sub, Inc. and the Borrower. Capitalized terms used but not defined herein are used with the meanings assigned to them in the Exhibits
attached hereto. This letter, Exhibit A (the “Summary of Terms”) and Exhibit B attached hereto, are collectively referred to as the “Commitment Letter”. The Acquisition, the entering into
and funding of the Term Loan Facility (as defined below) and all related transactions are hereinafter collectively referred to as the “Transaction.” 
 In connection therewith (a) JPMorgan Chase Bank is pleased to offer to be the sole administrative agent (in such capacity, the “Administrative Agent”) for a $1,200 million
senior bridge term loan facility to the Borrower (the “Term Loan Facility”), (b) BTMU is pleased to offer to be the sole syndication agent (in such capacity, the “Syndication Agent”) for the Term
Loan Facility and (c) each of JPMorgan Chase Bank and BTMU (collectively the “Lead Banks”) is pleased to offer its commitment (on a several and not joint basis) to provide $900 million and $300 million, respectively, of
the Term Loan Facility, upon and subject to the terms and conditions set forth in this Commitment Letter (it being understood that any event occurring after the date hereof and prior to the Closing Date that would result in a mandatory prepayment

 
with respect to the Term Loan Facility after the funding thereof as set forth in Exhibit A shall reduce commitments with respect to the Term Loan Facility under this Commitment Letter or result
in a prepayment of Term Loans, as applicable, as set forth on Exhibit A. In addition, (i) JPMorgan is pleased to advise you of its willingness in connection with the foregoing commitments, to act as the sole bookrunner for the Term Loan
Facility (in such capacity, the “Bookrunner”) and (ii) JPMorgan and BTMU are each pleased to advise you of their willingness in connection with the foregoing commitments, to act as joint lead arrangers (in such
capacities collectively, the “Lead Arrangers”) for the Term Loan Facility. 
 It is agreed that
(a) JPMorgan Chase Bank will act as sole Administrative Agent for the Term Loan Facility, (b) BTMU will act as sole Syndication Agent for the Term Loan Facility, (c) JPMorgan will act as the Bookrunner for the Term Loan Facility and
(d) JPMorgan and BTMU will each act as a Lead Arranger for the Term Loan Facility. It is further agreed that JPMorgan will have “lead left” placement in any and all marketing materials and documentation used in connection with the
Term Loan Facility and have authority typically associated with “lead left” placement. No other agents, co-agents, arrangers or bookrunners will be appointed and no other titles will be awarded without the prior consent of the Commitment
Parties. 
 The commitments and/or agreements of each Commitment Party hereunder are subject to the satisfaction of each of the
conditions precedent set forth in Exhibit B and the following conditions precedent: (a) the negotiation, execution and delivery of definitive documentation for the Term Loan Facility (the “Term Facility Documentation”)
consistent with this Commitment Letter and Fee Letters and otherwise satisfactory to you and such Commitment Party and (b) since September 30, 2012, there shall not have been any Target Material Adverse Effect. As used herein,
“Target Material Adverse Effect” means any event, change, circumstance, effect, occurrence, condition, state of facts or development, either individually or in the aggregate with any such other item, that is materially
adverse to (I) the business, assets, liabilities, condition (financial or other) or results of operations of the Target and its subsidiaries taken as a whole, or (II) the ability of the Target to consummate the transactions contemplated by the
Merger Agreement, other than, in each case, any event, change, circumstance, effect, occurrence, condition, state of facts or development (individually or in the aggregate) arising out of or resulting from (a) a decrease in the market price or
the trading volume of shares of Common Stock (as defined in the Merger Agreement), in and of itself, or any failure by the Target to meet any published public estimates of the Target’s revenue, earnings or other financial performance or results
of operations for any period, in and of itself, or any failure by the Target to meet any internal budgets, plans or forecasts of its revenues, earnings or other financial performance or results of operations, in and of itself (but not, in each case,
the facts or occurrences giving rise or contributing to any such changes or failures, which may be taken into account in determining whether there is a Target Material Adverse Effect), (b) general political, tax, economic or business conditions
in the United States or any country or region in the world in which the Target or any of its subsidiaries does business, or any changes therein, or general financial, securities, credit or capital market conditions, including interest rates or
exchange rates, or any changes therein, and including, in each case, any such event, change, circumstance, effect, occurrence, condition, state of facts or development arising out of or resulting from acts of war (whether or not declared) or the
commencement, continuation or escalation of a war, acts of armed hostility or terrorism, (c) changes in U.S. GAAP, applicable law or authoritative interpretations thereof, (d) any change or effect generally affecting the industries or
business segments in which the Target operates, (e) any hurricane, earthquake, flood or other natural disasters or acts of God, (f) any change or effect attributable to the execution or announcement of the Merger Agreement or the
performance of the Target’s express obligations thereunder (including compliance with the covenants set forth therein), other than (1) the termination of relationships with any person or group or related persons (each, a “Core
Counterparty”) under the Contracts (as defined in the Merger Agreement) with each such Core Counterparty set forth on Section 3.1 of the Disclosure Schedule to the Merger Agreement, or (2) any inaccuracy or breach of the

  
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representation set forth in Section 3.4(b) of the Merger Agreement or (g) the performance by you or any of your Affiliates (as defined in the Merger Agreement) of your express
obligations under the Merger Agreement, provided that any event, change, circumstance, effect, occurrence, condition, state of facts or development arising out of or resulting from the matters described in (b) through (e) of this
definition shall not be excluded to the extent that such event, change, circumstance, effect, occurrence, condition, state of facts or development disproportionately and adversely affects the Target as compared to other persons engaged in the
businesses in which the Target engages. 
 Notwithstanding anything in this Commitment Letter, the Fee Letters (as hereinafter
defined) or the Term Facility Documentation to the contrary, (a) the only representations relating to you and your subsidiaries, the Target and its subsidiaries and their respective businesses the accuracy of which shall be a condition to
availability of the Term Loan Facility on the Closing Date shall be (i) such of the representations made by the Target (or its affiliates) in the Merger Agreement as are material to the interests of the Lenders, but only to the extent that the
accuracy of any such representation is a condition to your (or your affiliates’) obligations to close under the Merger Agreement or you have the right to terminate your (or your affiliates’) obligations under the Merger Agreement as a
result of a breach of such representations in the Merger Agreement (the “Specified Merger Agreement Representations”) and (ii) the Specified Representations (as defined below), and (b) the terms of the Term Facility
Documentation shall be in a form such that they do not impair availability of the Term Loan Facility on the Closing Date if the conditions set forth in this Commitment Letter are satisfied. For purposes hereof, “Specified
Representations” means the representations and warranties referred to in Exhibit A relating to corporate existence and qualification, power and authority to enter into the Term Facility Documentation, due authorization, execution and
delivery of, and enforceability of, the Term Facility Documentation, no conflicts with applicable laws in any material respect or with organizational documents (in each case as they relate to entering into and performing the Term Facility
Documentation), use of proceeds, solvency (on a consolidated basis), Patriot Act, OFAC (as to compliance in all material respects by the Borrower and its subsidiaries, other than the Target and its subsidiaries), Federal Reserve margin regulations
and the Investment Company Act. Notwithstanding anything in this Commitment Letter or the Fee Letters to the contrary, the only conditions to availability of the Term Loan Facility on the Closing Date are set forth in the immediately preceding
paragraph and in Exhibit B. This paragraph, and the provisions herein, shall be referred to as the “Limited Conditionality Provision” and shall constitute a condition precedent as referenced in Exhibit B. 

The Bookrunner intends to syndicate the Term Loan Facility to a group of lenders identified by it in consultation with you and reasonably
acceptable to you (together with JPMorgan Chase Bank and BTMU, the “Lenders”). The Bookrunner intends to commence syndication of the Term Loan Facility promptly upon your acceptance of this Commitment Letter and the Fee
Letters. You agree to actively assist the Bookrunner in achieving a syndication of the Term Loan Facility that is satisfactory to it and you until the occurrence of a Successful Syndication. Such assistance shall include your (a) providing, and
using commercially reasonable efforts to cause your advisors to provide, the Commitment Parties and the other Lenders upon request with all information (including information and evaluations prepared by you or your advisors) reasonably deemed
necessary by the Bookrunner to complete syndication, including, but not limited to, the Projections (as defined below) (the “Information”), (b) assisting in the preparation of a confidential information memoranda
(“Confidential Information Memorandum”) and other customary marketing materials to be used in connection with the syndication of the Term Loan Facility (the “Information Materials”), (c) using
commercially reasonable efforts to ensure that the syndication efforts of the Bookrunner benefit materially from your existing banking relationships, (d) otherwise assisting the Bookrunner in its syndication efforts, including by making your
officers and advisors available to attend and make presentations regarding the business and prospects of the Borrower and its subsidiaries, as appropriate, at one or more meetings of prospective Lenders at times and locations to be mutually agreed
and (e) your using your commercially reasonable efforts to obtain corporate credit 

  
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and/or corporate family ratings for the Borrower (on a pro forma basis after giving effect to the Transactions) from each of Moody’s Investors Service, Inc.
(“Moody’s”) and Standard & Poor’s Financial Services LLC (“S&P”) as soon as practicable. At the option of the Bookrunner, you agree to use commercially reasonable efforts
(x) to enter into the Term Facility Documentation with the Lenders within 15 days after the date hereof or (y) at your election (in lieu of entering into the Term Facility Documentation), to enter into one or more joinder agreements to
this Commitment Letter within 15 days after the date hereof executed by the applicable Lenders, the Commitment Parties and you (“Joinder Agreements”) (which Joinder Agreements shall provide that the commitments of the Lenders
thereunder shall be subject to the same terms and conditions as are applicable to the commitments of JPMorgan Chase Bank and BTMU under this Commitment Letter, with the fees payable to such Lenders to be as set forth in such Joinder Agreements, in
each case pursuant to which such Lenders shall assume a proportion of the commitments with respect to the Term Loan Facility as set forth in such Term Facility Documentation or Joinder Agreements, as applicable, with a corresponding reduction in the
commitments of the Lead Banks by the amount so assumed, provided that, except as otherwise provided above, neither JPMorgan Chase Bank nor BTMU shall be released or novated from their commitments under this Commitment Letter in connection with any
other assignments (other than an assignment pursuant to the Term Facility Documentation) contemplated under this Commitment in connection with the syndication of the Term Loan Facility and shall remain obligated with respect to such commitments
through the Closing Date notwithstanding any such assignment. To facilitate a Successful Syndication, you agree that, until the earliest of completion of a Successful Syndication, termination of the syndication (as determined by the Bookrunner), and
45 days following the funding of the Term Loan Facility, the Borrower will not, and will not permit its subsidiaries to, offer, syndicate or issue, or attempt to offer, syndicate or issue, any debt securities or syndicated bank financing that, in
the reasonable judgment of the Bookrunner, would reasonably be expected to adversely impact in any material respect the syndication of the Term Loan Facility (other than any indebtedness the net proceeds of which are used to prepay or reduce the
commitments under the Term Loan Facility). 
 Notwithstanding the foregoing or anything to the contrary set forth in this
Commitment Letter or the Fee Letters, (a) the Borrower shall not be required to disclose communications relating to any litigation or investigation, or the conduct thereof, solely to the extent that such disclosure would reasonably be expected
to result in the waiver of the attorney-client privilege or work product protection applicable thereto, and (b) without limiting your obligation to assist in the syndication of the Term Loan Facility as provided herein, neither of
(x) obtaining the ratings referred to above, or (y) the achievement of a Successful Syndication shall constitute a condition precedent to the commitments of the Commitment Parties hereunder or the funding of the Term Loan Facility on the
Closing Date. 
 It is understood and agreed that the Bookrunner will manage and control all aspects of the syndication in
consultation with you, including decisions as to the selection of prospective Lenders and any titles offered to proposed Lenders, when commitments will be accepted and the final allocations of the commitments among the Lenders. It is understood that
no Lender participating in the Term Loan Facility will receive compensation from you in order to obtain its commitment, except on the terms contained herein, in the Fee Letters (in the case of the Lead Banks and their affiliates, if applicable) and
in Exhibit B.  
 You represent, warrant and covenant that (a) all Information which has been or is hereafter made
available to any of the Commitment Parties or the Lenders by you or any of your representatives (or on your or their behalf, but only to your knowledge with respect to any Information that is provided by the Target, its subsidiaries or their
Representatives) in connection with any aspect of the Term Loan Facility other than (i) information of a general economic or general industry nature and (ii) all projections, financial estimates, forecasts and other forward-looking
information (“Projections”), as and when furnished and taken as a whole (after giving effect to (x) with respect to information delivered on or prior to the date hereof, supplements delivered on or prior to the date
hereof and (y) with respect to information 

  
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delivered after the date hereof, supplements delivered thereafter), is and will be complete and correct in all material respects and does not and will not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made and (b) the Projections that have been or will be
made available to us by you or any of your representatives in connection with the transactions contemplated hereby have been or will be prepared in good faith based upon assumptions believed by you to be reasonable at the time furnished to us (it
being understood that such Projections are not to be viewed as facts and that actual results during the period or periods covered by any such Projections may differ from the projected results, and such differences may be material). You agree to
furnish us with further and supplemental information from time to time until the later of (x) a Successful Syndication, but in no event exceeding 45 days after the Closing Date and (y) the date of the initial borrowing under the Term Loan
Facility (the “Closing Date”) so that the representation, warranty and covenant in the immediately preceding sentence would be correct if the Information were being furnished, and such representation, warranty and covenant
were being made, on such date. In issuing this commitment and in arranging and syndicating the Term Loan Facility, the Commitment Parties are and will be using and relying on the Information without independent verification thereof. 

You acknowledge that the Lead Arrangers on your behalf will make available Information Materials to the proposed syndicate of Lenders by
posting the Information Materials on IntraLinks or another similar electronic system. In connection with the syndication of the Term Loan Facility, unless the parties hereto otherwise agree in writing, you shall be under no obligation to provide
Information Materials suitable for distribution to any prospective Lender (each, a “Public Lender”) that does not wish to receive material non-public information (within the meaning of the United States federal securities
laws, “MNPI”) with respect to the Borrower, the Target or their affiliates, or the respective securities of any of the foregoing. Prior to distribution of Information Materials to prospective Lenders, you shall provide us
with a customary letter authorizing the dissemination thereof. 
 By executing this Commitment Letter, you agree to reimburse
each of the Commitment Parties from time to time on demand for all reasonable and invoiced out-of-pocket fees and expenses, including, but not limited to, (a) the reasonable and invoiced fees, disbursements and other charges of counsel to the
Commitment Parties and the Administrative Agent (it being understood that the Commitment Parties shall use a single transaction counsel in connection with the principal negotiation and documentation of this Commitment Letter and the Term Loan
Facility (understanding that certain Commitment Parties may have separate outside counsel provide limited review of all documentation at the expense of such Commitment Parties), the fees for which we currently estimate to be in a range separately
communicated to you and agree to notify you promptly if we believe such estimate will be exceeded) and (b) out-of-pocket due diligence expenses by each of the Commitment Parties in connection with the Term Loan Facility, the syndication thereof
prior to the Closing Date, the preparation of the definitive documentation therefor and the other transactions contemplated hereby. The provisions of this paragraph shall remain in full force and effect regardless of whether any definitive
documentation for the Term Loan Facility shall be executed and delivered, and notwithstanding the termination of this Commitment Letter or any commitment or undertaking of the Commitment Parties hereunder. 

You agree to indemnify and hold harmless each of the Commitment Parties, each Lender and each of their affiliates and their respective
officers, directors, employees, agents, advisors and other representatives (each, an “Indemnified Party”) from and against (and will reimburse each Indemnified Party as the same are incurred for) any and all claims, damages,
losses, liabilities and expenses (including, without limitation, the reasonable fees, disbursements and other charges of counsel) that are actually incurred by or asserted or awarded against any such Indemnified Party, in each case arising out of or
in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) (a) any matters contemplated by this

  
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Commitment Letter (including the Acquisition) or (b) the Term Loan Facility or any use made or proposed to be made with the proceeds thereof (IN ALL CASES, WHETHER OR NOT CAUSED OR
ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNIFIED PARTY), except to the extent such claim, damage, loss, liability or expense is found in a final, nonappealable judgment by a court of
competent jurisdiction (x) to have resulted from (i) such Indemnified Party’s bad faith, gross negligence or willful misconduct or (ii) the material breach by such Indemnified Party of its obligations under this Commitment Letter
or (y) to have arisen out of, or in connection with, any proceeding that does not involve an act or omission by you or any of your affiliates and that is brought by an Indemnified Person against any other Indemnified Person (other than a claim
related to such Indemnified Person acting as a Bookrunner, Lead Arranger, administrative agent, syndication agent or in another agency or representative capacity). In the case of an investigation, litigation or proceeding to which the indemnity in
this paragraph applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by you, your equityholders or creditors or an Indemnified Party, whether or not an Indemnified Party is otherwise a
party thereto and whether or not the Closing Date occurs. You also agree that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to you or your subsidiaries or affiliates, or to your or their
respective equity holders or creditors arising out of, related to or in connection with the Acquisition, this Commitment Letter or any aspect of the Term Loan Facility, except to the extent of direct, as opposed to special, indirect, consequential
or punitive, damages determined in a final, nonappealable judgment by a court of competent jurisdiction to have resulted from (i) such Indemnified Party’s bad faith, gross negligence or willful misconduct or (ii) the material breach
by such Indemnified Party of its obligations under this Commitment Letter. Notwithstanding any other provision of this Commitment Letter, no Indemnified Party shall be liable for any damages arising from the use by others of information or other
materials obtained through electronic telecommunications or other information transmission systems, other than for direct or actual damages resulting from the bad faith, gross negligence or willful misconduct of such Indemnified Party as determined
by a final and nonappealable judgment of a court of competent jurisdiction. The foregoing provisions in this paragraph shall be superseded in each case by the applicable provisions contained in the definitive documentation for the Term Loan Facility
upon the execution thereof and thereafter shall have no further force and effect. 
 This Commitment Letter, the fee letter
dated the date hereof and delivered herewith among you and us (the “Arranger Fee Letter”) and the fee letter dated the date hereof and delivered herewith between you, JPMorgan Chase Bank and JPMorgan (the “Agency
Fee Letter” and collectively with the Arranger Fee Letter, the “Fee Letters”) and the contents hereof and thereof are confidential and, except for disclosure hereof or thereof as otherwise permitted herein, may
not be disclosed in whole or in part to any person or entity without our prior written consent. The Commitment Parties hereby notify you that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law
October 26, 2001) (the “Act”), each of them is required to obtain, verify and record information that identifies you, the Target and your and their subsidiaries, which information includes your and their names and
addresses and other information that will allow each of the Commitment Parties to identify you and them in accordance with the Act. 
 You acknowledge that the Commitment Parties or their affiliates may be providing financing or other services to parties whose interests may conflict with yours. Each Commitment Party agrees that it will
not furnish confidential information obtained from you to any of its other customers and that it will treat confidential information relating to you and your affiliates with the same degree of care as it treats its own confidential information. Each
Commitment Party further advises you that it will not make available to you confidential information that it has obtained or may obtain from any other customer. In connection with the services and transactions contemplated hereby, you agree that
each Commitment Party is permitted to access, use and, subject to the confidentiality provisions of this Commitment Letter or other 

  
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applicable confidentiality agreements, share with any of its bank or non-bank affiliates, agents, advisors (legal or otherwise) or representatives any information concerning you or any of your
affiliates (but no such information regarding any of your customers) that is or may come into the possession of such Commitment Party or any of such affiliates. 
 In connection with all aspects of the Term Loan Facility, you acknowledge and agree that: (a) (i) the arranging and other services described herein regarding the Term Loan Facility are
arm’s-length commercial transactions between you, on the one hand, and each of the Commitment Parties, on the other hand that do not directly or indirectly give rise to, nor do you rely on, any fiduciary duty to you or your affiliates on the
part of any of the Commitment Parties, (ii) you have consulted your own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate, and (iii) you are capable of evaluating and understanding, and you understand
and accept, the terms, risks and conditions of the transactions contemplated by this Commitment Letter; (b) (i) each of the Commitment Parties has been, is, and will be acting solely as a principal and, except as otherwise expressly agreed
in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for you or any other person or entity and (ii) none of the Commitment Parties has any obligation to you or any other person or
entity with respect to the transactions contemplated hereby except those obligations expressly set forth herein; and (c) each of the Commitment Parties and each of their respective affiliates may be engaged in a broad range of transactions that
involve interests that differ from yours and those of your affiliates, and none of the Commitment Parties has any obligation to disclose any of such interests to you or your affiliates. You agree that you will not claim that any Commitment Party has
rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to you, in connection with the Term Loan Facility. 
 The indemnification, fee, expense, jurisdiction, governing law, venue, waiver of jury trial, syndication and confidentiality provisions contained herein and in the Fee Letters shall remain in full force
and effect regardless of whether any definitive documentation for the Term Loan Facility shall be executed and delivered, and notwithstanding the termination of this Commitment Letter or any commitment or undertaking of any Commitment Party
hereunder. This Commitment Letter may not be amended or waived except by an instrument in writing signed by the Borrower and each of the Commitment Parties. 
 This Commitment Letter is delivered to you on the understanding that neither this Commitment Letter nor the Fee Letters nor any of their terms or substance shall be disclosed by you, directly or
indirectly, to any other person except (a) to you, the Target and your and its officers, directors, employees, affiliates, members, partners, stockholders, attorneys, accountants, agents and advisors on a confidential and need-to-know basis
(provided that any disclosure of the Fee Letters or their terms or substance to the Target, its subsidiaries or their officers, directors, employees, affiliates, members, partners, stockholders, attorneys, accountants, agents or advisors
shall be redacted in a manner reasonably acceptable to the Lead Arrangers), (b) in any legal, judicial or administrative proceeding or as otherwise required by law or regulation or as requested by a governmental authority (including, for the
avoidance of doubt, in filings with the Securities and Exchange Commission and other applicable regulatory authorities and stock exchanges; provided that the terms and contents of any of the Fee Letters shall not be included in any such
disclosure, but to the extent required by applicable law, you may disclose the aggregate fee amounts in the Fee Letters as part of a generic disclosure of total fees and expenses in connection with the aggregate sources related to the Transactions)
(in which case you agree, to the extent permitted by law, to inform us promptly in advance thereof) and (c) the Summary of Terms may be disclosed to potential Lenders and to any rating agency in connection with the Term Loan Facility.

 Each Commitment Party agrees that it will maintain the confidentiality of the Confidential Information (as defined below),
except that Confidential Information (as defined below) may be disclosed (a) to its respective affiliates and to its and its affiliates’ respective partners, directors, officers, employees, agents,

  
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advisors, legal counsel, independent auditors and professionals and other representatives (collectively, “Representatives”) (it being understood that
(i) Representatives will be informed of the confidential nature of such Confidential Information and instructed to keep such Confidential Information confidential and (ii) a party making such information available to its affiliates and its
and their respective officers, directors and employees agrees to be responsible for any breach of this paragraph that results from the actions or omissions of such affiliates, officers, directors and employees), (b) to the extent requested by
any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any
legal process, subpoena, judicial or administrative proceeding or similar compulsory process, provided such Commitment Party agrees that it will notify you as soon as practical in the event of any such disclosure (other than at the request of
a regulatory authority), unless such notification shall be prohibited by applicable law or legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies under this Commitment Letter, the Fee Letters, or
under any documentation evidencing or relating to the Term Loan Facility or any action or proceeding relating to this Commitment Letter, the Fee Letters, or any documentation evidencing or relating to the Term Loan Facility or the enforcement of
rights hereunder or thereunder, (f) to potential or prospective Lenders, participants or assignees; provided that the disclosure of any such information to any Lenders or prospective Lenders or participants or prospective participants or
assignees or prospective assignees referred to above shall be made subject to the acknowledgment and acceptance by such Lender or prospective Lender or participant or prospective participant or assignee or prospective assignee that such information
is being disseminated on a confidential basis (on substantially the terms set forth in this paragraph or as is otherwise reasonably acceptable to the Borrower and the Bookrunner, including, without limitation, as agreed in any confidential
information memorandum or other marketing materials or in connection with the distribution of information through Intralinks) in accordance with the standard syndication processes of the Bookrunner or customary market standards for dissemination of
such type of information, (g) with your consent, (h) to the extent such Confidential Information (x) becomes publicly available other than as a result of disclosure by such Commitment Party, its affiliates or Representatives or
(y) becomes available to such Commitment Party or any of its respective affiliates on a nonconfidential basis from a source other than the Borrower, its affiliates or Representatives or any person that the Commitment Party or its
Representatives know is breaching a confidentiality obligation to the Borrower or its subsidiaries by making such Confidential Information available without the consent or authorization of the Borrower, or (i) in the case of the information set
forth on Exhibit A, to S&P and Moody’s on a confidential basis. For purposes of this paragraph, “Confidential Information” means all information received from you, the Target or your or their subsidiaries relating to
you, the Target or any of your or their subsidiaries or any of their respective businesses, other than any such information that is available to such Commitment Party or its affiliates on a nonconfidential basis prior to disclosure by you or any of
your subsidiaries. Any Person required to maintain the confidentiality of Confidential Information as provided in this paragraph shall be considered to have complied with its obligation to do so if such person has exercised the same degree of care
to maintain the confidentiality of such Confidential Information as such person would accord to its own confidential information. The obligations of each of the Commitment Parties under this paragraph shall automatically terminate and be superseded
by the confidentiality provisions in the definitive documentation for the Term Loan Facility, and in any case, on the date that is one year from the date hereof. 
 This Commitment Letter and the Fee Letters may be executed in counterparts which, taken together, shall constitute an original. Delivery of an executed counterpart of this Commitment Letter or the Fee
Letters by telecopier, facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart thereof. 
 This Commitment Letter and the Fee Letters shall be governed by, and construed in accordance with, the laws of the State of New York; provided, however, that (a) the interpretation of the
definition of Target 

  
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Material Adverse Effect and the determination of whether there shall have occurred a Target Material Adverse Effect, (b) the determination of whether the Acquisition has been consummated as
contemplated by the Merger Agreement, and (c) the determination of whether the representations and warranties made by the Target in the Merger Agreement are accurate, and whether any inaccuracy thereof entitles the Borrower to terminate its
obligations under the Merger Agreement or not to consummate the Acquisition, shall be determined in accordance with the laws of the State of Delaware without regard to principles of conflicts of laws that would result in the application of the laws
of any other jurisdiction. Each Commitment Party and you hereby irrevocably and unconditionally submit to the exclusive jurisdiction of any state or Federal court sitting in the Borough of Manhattan in the City of New York over any suit, action or
proceeding arising out of or relating to the Transactions or the other transactions contemplated hereby, this Commitment Letter or the Fee Letters or the performance of services hereunder or thereunder. Each Commitment Party and you agree that
service of any process, summons, notice or document by registered mail addressed to you or us shall be effective service of process for any suit, action or proceeding brought in any such court. Each Commitment Party and you hereby irrevocably and
unconditionally waive any objection to the laying of venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding has been brought in any inconvenient forum. Each Commitment Party and
you hereby irrevocably waive any and all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to the Acquisition, this Commitment Letter, the Fee Letters, the Term
Loan Facility or the actions of the Commitment Parties in the negotiation, performance or enforcement hereof. 
 This Commitment
Letter and the Fee Letters embody the entire agreement and understanding among the Commitment Parties and you with respect to the Term Loan Facility and supersede all prior agreements and understandings relating to the specific matters hereof. No
party has been authorized by any of the Commitment Parties to make any oral or written statements that are inconsistent with this Commitment Letter. This Commitment Letter is not assignable by the Borrower without our prior written consent and is
intended to be solely for the benefit of the parties hereto and the Indemnified Parties. 
 This Commitment Letter and all
commitments and undertakings of the Commitment Parties hereunder will expire at 11:59 p.m. (New York time) on February 20, 2013 unless you execute this Commitment Letter and the Fee Letters and return them to us prior to that time (which may be
by facsimile or electronic transmission), whereupon this Commitment Letter and the Fee Letters (each of which may be signed in one or more counterparts) shall become binding agreements. In the event that the initial borrowing under the Term Loan
Facility does not occur on or before the Expiration Date, then this Commitment Letter and the commitments hereunder shall automatically terminate unless we shall, in our discretion, agree to an extension. “Expiration Date” means the
earliest of (i) October 31, 2013, (ii) the closing of the Acquisition without the use of the Term Loan Facility and (iii) the termination or public abandonment of the Merger Agreement prior to closing of the Acquisition.

 THIS WRITTEN AGREEMENT (WHICH INCLUDES THE SUMMARY OF TERMS) AND THE FEE LETTERS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
 [THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

  
 -9-

 We are pleased to have the opportunity to work with you in connection with this important financing.

  

			
	Very truly yours,
	
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Robert D. Bryant

	Name:	 	 Robert D. Bryant

	Title:	 	 Vice President

	
	J.P. MORGAN SECURITIES LLC
		
	By:	 	 /s/ Deepti Chauhan

	Name:	 	 Deepti Chauhan

	Title:	 	 Vice President

 [Signature Page to Commitment Letter] 

			
	 THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

		
	 By:
	 	 /s/ Lillian Kim

	 Name:
	 	 Lillian Kim

	 Title:
	 	 Director

 [Signature Page to Commitment Letter] 

 Accepted and agreed to as of the date first above written: 

TOTAL SYSTEM SERVICES, INC. 
  

			
	By:	 	 /s/ M. Troy Woods

	Name:	 	 M. Troy Woods

	Title:	 	 President and Chief Operating Officer

 [Signature Page to Commitment Letter] 

 EXECUTION VERSION 
 EXHIBIT A 
 SUMMARY OF TERMS AND CONDITIONS 

TOTAL SYSTEM SERVICES, INC. 
 $1,200 MILLION BRIDGE TERM LOAN FACILITY 
 Capitalized terms not otherwise
defined herein have the same meanings as specified therefor in the Commitment Letter to which this Exhibit A is attached. 
  

			
	BORROWER:	  	 Total System Services, Inc., a Georgia corporation (the “Borrower”).

		
	ADMINISTRATIVE AGENT:	  	 JPMorgan Chase Bank, N.A. (“JPMorgan Chase Bank”) will act as sole administrative agent (the “Administrative
Agent”).

		
	SOLE BOOKRUNNER	  	 J.P. Morgan Securities LLC (“JPMorgan”) (in such capacity, the “Bookrunner”).

		
	 JOINT LEAD ARRANGERS:
	  	 JPMorgan and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”) (in such capacities, collectively, the “Lead
Arrangers”).

		
	SYNDICATION AGENT:	  	 BTMU.

		
	LENDERS:	  	 A syndicate of financial institutions (including JPMorgan Chase Bank and BTMU) arranged by the Bookrunner (collectively, the
“Lenders”).

		
	BRIDGE TERM LOAN FACILITY:	  	 A $1,200 million 364-day bridge term loan facility (the “Term Loan Facility” the term loans thereunder, the “Term
Loans”), made in U.S. Dollars in a single advance on the Closing Date.

		
	PURPOSE:	  	 The proceeds of the Term Loan Facility will be used, in part, to finance the Acquisition, to repay certain indebtedness of the Target and its subsidiaries,
and to pay fees and expenses related thereto.

		
	CLOSING DATE:	  	 The date of initial funding under the Term Facility Documentation (the “Closing Date”) to occur on or before the Expiration
Date.

		
	INTEREST RATES:	  	 As set forth in Addendum I.

		
	MATURITY:	  	 The Term Loan Facility shall terminate and all amounts outstanding thereunder shall be due and payable 364 days from the Closing Date (the
“Maturity Date”).

		
	OPTIONAL PREPAYMENTS:	  	 The Borrower may prepay the Term Loan Facility in whole or in part at any time without premium or penalty, subject to reimbursement of the Lenders’
customary breakage and redeployment costs (but not lost profits) in the case of prepayment of LIBOR borrowings.

		
	 MANDATORY

PREPAYMENTS AND
 COMMITMENT REDUCTIONS:
	  	 Prior to the Closing Date (assuming for purposes hereof the Transactions have been consummated), the aggregate
commitments in respect of the Term Loan Facility shall be permanently reduced by an amount equal to, and after the Closing Date the Borrower shall make prepayments of Term Loans from:

 
 (a) 100% of the net cash proceeds from any
non-ordinary course sale or other disposition of assets (including as a result of casualty or condemnation) by the Borrower and its subsidiaries (subject to exceptions and reinvestment rights to be agreed);

			
		  	 (b) 100% of the net cash proceeds from issuances or incurrences of debt by the Borrower and its subsidiaries
(other than certain indebtedness to be agreed but including, to the extent that the Borrower enters into a credit agreement after the date hereof pursuant to which the Borrower obtains commitments for a term loan facility to fund a portion of
consideration in respect of the Acquisition (a “Refinancing Term Loan Facility”), reductions and/or prepayments, as applicable, in an amount equal to the aggregate amount of such commitments under the Refinancing Term Loan
Facility (which reductions and/or prepayments shall only reduce or prepay the commitments or Term Loans, as applicable, of JPMorgan Chase Bank and BTMU up to $200 million in the aggregate, with such reductions and/or prepayments to be allocated pro
rata based on their respective commitments as of the date hereof)); and
  
 (c) 100% of the net cash proceeds from issuances of new equity or equity linked securities by the Borrower (other than net cash proceeds from equity issuances made pursuant to employee compensation plans
or arrangements or pursuant to the Borrower’s dividend reinvestment plan).

		
	 CONDITIONS PRECEDENT
 TO CLOSING DATE
	  	 The closing and the initial extension of credit under the Term Loan Facility will be subject to satisfaction of conditions precedent as set forth in the
Commitment Letter, including Exhibit B to the Commitment Letter.

		
	REPRESENTATIONS AND WARRANTIES:	  	 To be substantially the same as those contained in the Borrower’s Credit Agreement dated September 10, 2012 among the Borrower, JPMorgan Chase Bank,
N.A., as administrative agent and the other parties thereto (as amended, supplemented or otherwise modified up to the date hereof, the “Existing Credit Agreement”) (including the exceptions and qualifications contained
therein), modified as agreed for transactions of this type, including: (i) legal existence, qualification and power; (ii) due authorization and no contravention of law, contracts or organizational documents; (iii) governmental and third party
approvals and consents; (iv) enforceability; (v) accuracy and completeness of specified financial statements and no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a material
adverse effect; (vi) no material litigation; (vii) ownership of property; (viii) insurance matters; (ix) compliance with environmental laws; (x) tax matters; (xi) ERISA compliance; (xii) identification of subsidiaries; (xiii) not
engaging in the business of purchasing or carrying margin stock (other than repurchases by the Borrower of its own capital

  
 -2-

			
		  	 stock permitted by the Existing Credit Agreement); (xiv) status under Investment Company Act; (xv) solvency; (xvi) accuracy of disclosure;
(xvii) use of proceeds; (xviii) compliance with laws; (xix) intellectual property and (xx) Patriot Act, OFAC and FCPA.

		
	COVENANTS:	  	 To be substantially the same as those contained in the Existing Credit Agreement (including the exceptions and
qualifications contained therein), which include the following: (i) delivery of financial statements, SEC filings, compliance certificates and other specified information, (ii) notices of default, litigation, governmental proceedings or
investigations, which litigation, proceedings or investigations could reasonably be expected to have a material adverse effect, certain ERISA events and material changes in accounting or financial reporting practices; (iii) payment of certain
obligations; (iv) preservation of existence; (v) maintenance of properties and insurance; (vi) compliance with laws; (vii) maintenance of books and records; (viii) inspection rights; (ix) use of proceeds; (x) provision of equal
and ratable liens in certain cases, and (xi) limitations on (A) investments (including loans and advances), (B) mergers and other fundamental changes, (C) sales and other dispositions of property or assets, (D) dividends and other
distributions by the Borrower after the occurrence of an event of default, (E) changes in the nature of business, (F) transactions with affiliates, (G) use of proceeds, and (H) swaps.

 
 Financial covenants to be limited to the
following:
  
 •      Minimum Consolidated Fixed Charge Coverage Ratio (EBITDAR/Interest Expense plus Rental Expense, with financial definitions to be substantially the same as those
contained in the Existing Credit Agreement except as otherwise agreed) of at least 2.5 to 1.0.
  

•      Maximum Consolidated Leverage Ratio (with financial
definitions to be substantially the same as those contained in the Existing Credit Agreement except as otherwise agreed) not to exceed 3.0 to 1.0.
  

Each of the ratios referred to above will be calculated on a consolidated basis as of the end of each consecutive four fiscal quarter
period.

		
	EVENTS OF DEFAULT:	  	 To be substantially the same as those contained in the Existing Credit Agreement (including notice and cure rights provided therein), which include the
following: (i) nonpayment of principal, interest, fees or other amounts; (ii) failure to perform or observe covenants set forth in the loan documentation (subject to grace periods as set forth in the Existing Credit Agreement); (iii) any
representation or warranty proving to have been incorrect in any material respect when made or confirmed; (iv) cross-default to other indebtedness in excess of $50 million in principal amount; (v) bankruptcy and insolvency defaults (with a 60-day
grace period for involuntary proceedings); (vi) inability to pay debts; (vii) monetary judgment defaults in excess of $50 million to the extent not covered by insurance and nonmonetary judgment defaults which could

  
 -3-

			
		  	 reasonably be expected to have a material adverse effect; (viii) customary ERISA defaults; (ix) actual or asserted invalidity or impairment of any
material provisions of the loan documentation; and (x) change of control.

		
	ASSIGNMENTS AND PARTICIPATIONS:	  	 Subject to the consents described below (which consents will not be unreasonably withheld or delayed), each Lender
will be permitted to make assignments to other financial institutions in respect of the Term Loan Facility in a minimum amount equal to $5 million.
  

Consents: The consent of the Borrower will be required unless (i) an event of default has occurred and is continuing or (ii)
the assignment is to a Lender, an affiliate of a Lender or an Approved Fund (as such term is defined in the Existing Credit Agreement) (and the Borrower’s consent will be deemed given if not expressly withheld within five business days). The
consent of the Administrative Agent (not to be unreasonably withheld or delayed) will be required for any assignment of any outstanding Term Loan to an entity that is not a Lender, an affiliate of a Lender or an Approved Fund.

 
 Assignments Generally: An assignment fee
in the amount of $3,500 will be charged to the assigning Lender or the assignee Lender, as such Lenders may agree, with respect to each assignment unless waived by the Administrative Agent in its sole discretion. Each Lender will also have the
right, without consent of the Borrower or the Administrative Agent, to assign as security all or part of its rights under the loan documentation to any Federal Reserve Bank.

 
 Participations: Lenders will be permitted
to sell participations with voting rights limited to significant matters such as changes in amount, rate and maturity date.

		
	WAIVERS AND AMENDMENTS:	  	 Amendments and waivers of the provisions of the loan agreement and other definitive credit documentation will require the approval of Lenders holding loans
and commitments representing more than 50% of the aggregate amount of the loans and commitments under the Term Loan Facility (the “Required Lenders”), except that (a) the consent of each Lender shall be required with respect
to (i) the waiver of certain conditions precedent to the initial credit extension under the Term Loan Facility, (ii) the amendment of pro rata sharing provisions, and (iii) the amendment of the voting percentages of the Lenders, and (b) the consent
of each Lender affected thereby shall be required with respect to (i) increases or extensions in the commitment of such Lender, (ii) reductions of principal, interest or fees, and (iii) extensions of scheduled maturities or times for
payment.

		
	INDEMNIFICATION:	  	 The Borrower will indemnify and hold harmless the Administrative Agent, the Bookrunner, the Lead Arrangers, any other agents acting in their capacity as such
and each Lender and their respective affiliates and their partners, directors, officers, employees, agents and advisors (each an “Indemnified Party”) from and against all losses, claims, damages,

  
 -4-

			
		  	 liabilities and expenses arising out of or relating to the Acquisition, the Term Loan Facility, the Borrower’s use of loan proceeds or the commitments,
including, but not limited to, reasonable attorneys’ fees (including the allocated cost of internal counsel) and settlement costs except (i) to the extent resulting from the bad faith, gross negligence or willful misconduct of such
Indemnified Party or material breach by such Indemnified Party of its obligations under the Term Loan Facility, in each case, as determined in a final, nonappealable judgment of a court of competent jurisdiction and (ii) those arising out of,
or in connection with, any proceeding that does not involve any act or omission by the Borrower or any of its affiliates and that is brought by an Indemnified Party against any other Indemnified Party (except to the extent relating to such
indemnified person acting in an agency or other representative capacity in connection with the Term Loan Facility). This indemnification shall survive and continue for the benefit of all such persons or entities.

		
	DEFAULTING LENDERS	  	 The loan documentation shall contain customary “Defaulting Lender” provisions for transactions and facilities of this type.

		
	GOVERNING LAW:	  	 State of New York.

		
	PRICING/FEES/EXPENSES:	  	 As set forth in Addendum I.

		
	OTHER	  	 Each of the parties shall (i) waive its right to a trial by jury and (ii) submit to exclusive New York jurisdiction.

  
 -5-

 ADDENDUM I 
 PRICING, FEES AND EXPENSES 
  

			
	INTEREST RATES:	  	 At the Borrower’s option, any Term Loan will bear interest at a rate equal to (i) LIBOR plus the Applicable
Margin, as determined in accordance with the Performance Pricing grid set forth below or (ii) the Base Rate (to be defined as the highest of (a) JPMorgan Chase Bank’s prime rate, (b) the Federal Funds rate plus .50% and (c) one-month LIBOR plus
1.00%) plus the Applicable Margin.
  
 The
Borrower may select interest periods of one, two, three or six months for LIBOR loans or, upon consent of all of the affected Lenders, such other period that is twelve months or less, subject to availability. Interest shall be payable at the end of
the selected interest period, but no less frequently than quarterly.
  
 During the continuance of event of default under the loan documentation, the Applicable Margin on obligations owing under the loan documentation shall increase by 2% per annum (subject to the request
of the Required Lenders).

		
	DURATION FEES:	  	 The Borrower shall pay non-refundable duration fees based on the following percentages of the aggregate principal
amount of Loans outstanding on the dates below, each such duration fee to be payable on such applicable date:
  

90 days after the Closing Date: 0.50%
  

180 days after the Closing Date: 0.75%
  

270 days after the Closing Date: 1.00%

		
	PERFORMANCE PRICING:	  	 The Applicable Margin for LIBOR Loans shall be, at any time, the rate per annum set forth in the table below opposite the corporate credit rating of the
Borrower by Standard & Poor’s Financial Services LLC or Moody’s Investors Service, Inc; provided that such amount shall increase by an additional 25 basis points at the end of each successive three month period after the Closing
Date. In the case of a split rating, the higher rating will apply; if there is only one rating, such rating will apply; and if there is no rating, the lowest rating set forth below will apply; provided that if there is no rating as a result
of both Standard & Poor’s Financial Services LLC and Moody’s Investors Service, Inc. (or their successors) ceasing to issue ratings generally, the rating in effect immediately prior to the Borrower no longer having a rating shall apply
until the parties can agree on an alternative method of determining the Applicable Margin for LIBOR and Base Rate Loans (such ratings principles, the “Ratings Principles”). The Applicable Margin for Base Rate Loans shall be
1.00% per annum less than the Applicable Margin for LIBOR Loans in each category (but not less than zero).

  
 -1-

					
	 Debt Rating
	  	Applicable
Margin for
LIBOR
Loans	 
	 A- / A3 or better
	  	 	1.000	% 
	 BBB+ / Baa1
	  	 	1.125	% 
	 BBB / Baa2
	  	 	1.250	% 
	 BBB- / Baa3
	  	 	1.500	% 
	 < BBB- / Baa3
	  	 	1.750	% 

  

			
	CALCULATION OF INTEREST AND FEES:	  	 Other than calculations in respect of interest at the prime rate (which shall be made on the basis of actual number of days elapsed in a 365/366 day year),
all calculations of interest and fees shall be made on the basis of actual number of days elapsed in a 360 day year.

		
	COST AND YIELD PROTECTION:	  	 Customary for transactions and facilities of this type, including, without limitation, in respect of breakage or redeployment costs incurred in connection
with prepayments, changes in capital adequacy, liquidity, tax gross up, increased cost and capital requirements or their interpretation, illegality, unavailability, reserves without proration or offset and payments free and clear of withholding or
other taxes (provided that (i) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision or by United States or foreign regulatory
authorities, in each case pursuant to Basel III, and (ii) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder or issued in connection therewith or in
implementation thereof, shall in each case be deemed to be a change in law, regardless of the date enacted, adopted, issued or implemented).

		
	EXPENSES:	  	 The Borrower will pay all reasonable and invoiced out-of-pocket costs and expenses by the Administrative Agent, Bookrunner or the Lead Arrangers associated
with the preparation, due diligence, administration, syndication and closing of all loan documentation, including, without limitation, the reasonable and invoiced legal fees of counsel to the Administrative Agent, Bookrunner and the Lead Arrangers,
regardless of whether or not the Term Loan Facility is closed. The Borrower will also pay the reasonable expenses of the Administrative Agent and each Lender (including reasonable legal fees of counsel) in connection
with the enforcement of any of the loan documentation.

  
 -2-

 EXHIBIT B 
 CONDITIONS 
 The availability of the Term Loan Facility shall be subject to
the satisfaction of the following conditions (subject to the Limited Conditionality Provision). Capitalized terms used but not defined herein have the meanings set forth in the Commitment Letter to which this Exhibit B is attached, including Exhibit
A thereto. 
 1. Each party thereto shall have executed and delivered the Term Facility Documentation on terms consistent with
the Commitment Letter and otherwise reasonably satisfactory to both the Borrower and the Commitment Parties, and the Commitment Parties shall have received: 
  

	 	a.	customary closing certificates and legal opinions from counsel to Borrower; and 

 

	 	b.	a certificate from the chief financial officer of Borrower, in form and substance reasonably acceptable to the Commitment Parties, certifying that Borrower and its
subsidiaries, on a consolidated basis after giving effect to the Transactions and the other transactions contemplated hereby, are solvent. 

 2. On the Closing Date, after giving effect to the Transactions, neither the Borrower nor any of its subsidiaries shall have any material indebtedness for borrowed money other than the Existing Credit
Agreement, the Term Loan Facility, indebtedness of the Target and its subsidiaries permitted under the Merger Agreement, indebtedness as to which the net proceeds have been used to fund a portion of the Acquisition and have reduced the commitments
of the Commitment Parties by a corresponding amount, indebtedness described on Schedule 1 hereto and other indebtedness to be agreed. 
 3. The terms of the Merger Agreement (including all exhibits, schedules, annexes and other attachments thereto and other agreements related thereto) and all related documents shall be reasonably
satisfactory to the Lead Arrangers, it being agreed that the Merger Agreement dated February 19, 2013 provided to the Lead Arrangers is reasonably satisfactory to the Lead Arrangers. The Acquisition shall be consummated pursuant to the Merger
Agreement, substantially concurrently with the initial funding of the Term Loan Facility, and no provision thereof shall have been amended or waived, and no consent shall have been given thereunder, by the Borrower or its affiliates, in any manner
materially adverse to the interests of the Commitment Parties or the Lenders without the prior written consent of the Commitment Parties, not to be unreasonably withheld or delayed. 

4. The Specified Merger Agreement Representations shall be true and correct, and the Specified Representations shall be true and
correct, in each case in the manner described in the fifth paragraph in the Commitment Letter. 
 5. The Expiration Date shall
not have occurred. 
 6. The Commitment Parties shall have received (a) audited consolidated balance sheets and related
statements of income, stockholders’ equity and cash flows of the Borrower and its subsidiaries and the Target and its subsidiaries, for the three most recently completed fiscal years ended at least 90 days before the Closing Date and
(b) unaudited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of Borrower and its subsidiaries the Target and its subsidiaries, for each subsequent fiscal quarter ended at least 45 days
before the Closing Date; provided that filing of the required financial statements on form 10-K and form 10-Q by the Borrower and/or the Target will satisfy the foregoing requirements. 

  
 -1-

 7. The Commitment Parties shall have received a pro forma consolidated balance sheet and
related pro forma consolidated statement of income of the Borrower and its subsidiaries as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period ended at least 45 days prior to the
Closing Date, prepared after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of income). 

8. The Administrative Agent shall have received, at least 3 business days prior to the Closing Date, all documentation and other
information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act, in each case that had been requested by the Administrative Agent in writing at
least 5 business days prior to such required delivery date. 
 9. All fees and expenses due to the Commitment Parties and the
Lenders pursuant to the Commitment Letter and Fee Letters for which an invoice has been received at least two business days prior to the Closing Date shall have been paid or shall have been authorized to be deducted from the proceeds of the initial
funding under the Term Loan Facility. 
 10. The Lead Arrangers (a) shall have received from or on behalf of the Borrower
all customary information for inclusion in a confidential information memorandum and other marketing material customarily used for the syndication of the Term Loan Facility and (b) shall have been afforded no less than 12 business days from the
date of delivery of such information to the Lenders to syndicate the Term Loan Facility. 

  
 -2-

 SCHEDULE I 
 OTHER INDEBTEDNESS 
  

	1.	 Yen-denominated term loan facility (¥2 billion) for Total System Services Holding Europe LP from Royal Bank of Scotland.

  

	2.	 Capital leases and purchase money financing obligations in the ordinary course of business. 

  
 -1-Navistar International Corporation 2013 Performance Incentive Plan.

 Exhibit 10.1 
 NAVISTAR INTERNATIONAL CORPORATION 
 2013 PERFORMANCE INCENTIVE PLAN

 SECTION 1 
 ESTABLISHMENT OF THE PLAN 
 The Board of Directors of Navistar International
Corporation approved the establishment of the Navistar International Corporation 2013 Performance Incentive Plan (“Plan”) on December 11, 2012 subject to the approval of the Plan by the Stockholders of the Corporation. Upon approval
of this Plan, the Corporation will cease making new grants under the Navistar 2004 Performance Incentive Plan, as amended (“the 2004 Plan”). 
 SECTION 2 
 PURPOSE OF THE PLAN 

The purpose of the Plan is to enable the Corporation and its subsidiaries to attract and retain highly qualified Employees, Consultants,
and Non-Employee Directors, and additionally to provide key Employees the opportunity to earn incentive awards commensurate with the quality of individual performance, the achievement of performance goals and ultimately the increase in stockholder
value. 
 SECTION 3 
 DEFINITIONS 
 For the purposes of the Plan, the following words and phrases shall
have the meanings described below in this Section 3 unless a different meaning is plainly required by the context. 
 (1)
“Annual Incentive Award” means an award of cash, shares of Common Stock, Restricted Stock or Stock Units, in each case, as determined by the Committee. 
 (2) “Award” means an award made under the Plan. 
 (3) “Award
Agreement” means an agreement entered into by the Corporation and a Participant setting forth the terms and provisions applicable to an Award granted to a Participant. 
 (4) “Board of Directors” means the Board of Directors of the Corporation. 
 (5) “Change in Control” shall be deemed to have occurred if (i) any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended), other than employee or retiree benefit plans or trusts sponsored or established by the Corporation or Navistar, Inc., is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended), directly or indirectly, of securities of the Corporation representing 25% or more of the combined voting power of the Corporation’s then outstanding securities, (ii) the following individuals cease for
any reason to constitute more than three-fourths of the number of directors then serving on the Board of Directors : individuals who, on the date hereof, constitute the Board of Directors and any new director whose appointment or election by the
Board of Directors or nomination for election by the Corporation’s stockholders was approved by the vote of at least two-thirds (2/3) of the directors then still in office or whose appointment, election or nomination was previously so
approved or recommended; (iii) any dissolution or liquidation of the Corporation or Navistar, Inc. or sale or disposition of all or substantially all (more than 50%) of the assets of the Corporation or of Navistar, Inc. occurs; or (iv) as
the result of, or in connection with, any cash tender offer, exchange offer, merger or other business combination, sale of assets, proxy or consent solicitation, contested election or substantial stock accumulation (a “Control
Transaction”), the members of the Board of Directors immediately prior to the first public announcement relating to such Control Transaction shall immediately thereafter, or within two (2) years, cease to constitute a majority of the Board
of Directors. Notwithstanding the foregoing, the sale or disposition of any or all of the assets or stock of Navistar Financial Corporation shall not be deemed a Change in Control. 

(6) “Code” means the Internal Revenue Code of 1986, as amended from time to time. 

  
 1 

 (7) “Committee” means (i) with respect to Awards to Employees and
Consultants, the Compensation Committee of the Board of Directors or another committee appointed by the Board of Directors, and (ii) with respect to Awards to Non-Employee Directors, the Nominating and Governance Committee of the Board of
Directors, or another committee appointed by the Board of Directors or the Board of Directors themselves. To the extent deemed necessary or appropriate by the Board of Directors, each Committee member will be an “outside director” as
defined in regulations under Section 162(m) of the Code and/or a “non-employee director” as defined in Rule 16b-3(b)(3)(i) under the Securities Exchange Act of 1934, as amended. The Board of Directors may appoint different Committees
to perform different functions under the Plan and, in that case, any reference herein to “the Committee” will mean the Committee appointed by the Board of Directors to perform the particular function being discussed. For example, the Board
of Directors may appoint one or more individuals in accordance with 8 Del. C. 1953, § 157(c) to serve as the Committee for the sole purpose of approving Awards to specified classes of Participants. 

(8) “Common Stock” means the common stock of the Corporation. 

(9) “Consultant” means a person engaged under a written contract with the Corporation or any subsidiary of the Corporation to
provide consulting or advisory services (other than as an Employee or a Non-Employee Director) to such entity, provided that the identity of such person, the nature of such services or the entity to which such services are provided would not
preclude the Corporation from offering or selling Common Stock to such person pursuant to the Plan in reliance on either the exemption from registration provided by Rule 701 under the Securities Act of 1933, as amended, or, if the Corporation is
required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, registration on a Form S-8 (Registration Statement Under the Securities Act of 1933). 

(10) “Corporation” means Navistar International Corporation. 

(11) “Employee” means a person employed by the Corporation or any subsidiary of the Corporation, including its officers. Unless
the Committee provides otherwise in an applicable Award Agreement, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence. An individual shall not cease to be an Employee in the case of (i) any leave of absence
approved by the Company or (ii) transfers between locations of the Corporation or between the Corporation or any subsidiary of the Corporation. For purposes of Incentive Stock Options, no such leave may exceed 90 days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Corporation is not so guaranteed, then three months following the 91st day of such leave, any Incentive Stock Option
held by a Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonqualified Stock Option. 
 (12) “Exercise Price” means: (i) in the case of a Stock Option, the amount for which one share of Common Stock may be purchased upon exercise of the Stock Option, or (ii) in the case
of a SAR, the price above which Common Stock appreciation is measured, in either case as specified in the applicable Award Agreement. 
 (13) “Fair Market Value” means, as applied to a specific date, the price of a share of Common Stock that is based on the opening, closing, actual, high, low or average selling prices of share of
Common Stock reported on any established stock exchange or national market system including without limitation the New York Stock Exchange and the National Market System of the National Association of Securities Dealers, Inc. Automated Quotation
System on the applicable date, the preceding trading day, the next succeeding trading day, or an average of trading days, as determined by the Committee in its discretion. Unless the Committee determines otherwise or unless otherwise specified in an
Award Agreement, Fair Market Value shall be deemed to be equal to the average of the high and the low prices of a share of Common Stock on the most recent date on which shares of Common Stock were publicly traded. Notwithstanding the foregoing, if
shares of Common Stock are not traded on any established stock exchange or national market system, the Fair Market Value means the price of a share of Common Stock as established by the Committee acting in good faith based on a reasonable valuation
method that is consistent with the requirements of Section 409A of the Code and the regulations thereunder. 
 (14)
“Fiscal Year” means the fiscal year of the Corporation. 
 (15) “Freestanding SAR” means any SAR that is
granted independently of any Stock Option. 
 (16) “Grant Date” means, as determined by the Committee, (i) the
date as of which the Committee approves an Award, or (ii) such later date as may be specified by the Committee. The Grant Date of a Stock Option will, unless the Committee expressly determines otherwise, be the day on which the Committee
approves the grant of such Stock Option. 
 (17) “Incentive Stock Option” means a right, as evidenced by an Award
Agreement to purchase a certain number of shares of Common Stock at Fair Market Value for a period of no longer than ten (10) years from the Grant Date which option is designed to meet the requirements set out under Section 422 of the
Code. 
 (18) “Non-Employee Director” means as of the Grant Date of an Award an individual who is a director of the
Corporation and is neither a Consultant nor an Employee. 

  
 2 

 (19) “Nonqualified Stock Option” means a right, as evidenced by an Award Agreement
to purchase a certain number of shares of Common Stock at Fair Market Value for a period of not more than ten (10) years from the Grant Date which option is stated not to be Incentive Stock Options under the Code. 

(20) “Other Award” means an Award (other than a Stock Option, SAR, Restricted Stock or Stock Unit Award) based on, measured
with respect to, convertible into or exchangeable for Common Stock, which Award is evidenced by an Award Agreement and granted pursuant to Section 8 of the Plan. 
 (21) “Participant” means an Employee, Consultant, or Non-Employee Director who has been granted an Award under this Plan. 

(22) “Performance-Based Exception” means the performance-based exception from the tax deductibility limitation imposed by
Section 162(m) of the Code as set forth in Section 162(m)(4)(C) of the Code or any successor provision. 
 (23)
“Performance Measure” means the performance measurement provided by Section 6. 
 (24) “Performance
Period” means the period during which performance goals must be met for purposes of the Performance Measure. 
 (24)
“Plan” means the Navistar International Corporation 2013 Performance Incentive Plan as set forth herein and as it may be amended hereafter from time to time. 
 (25) “Qualified Retirement” for an Employee shall have the meaning set forth in the applicable Award Agreement; provided that, if the applicable Award Agreement does not define Qualified
Retirement, the Employee will not be deemed eligible for Qualified Retirement for purposes of this Plan. Qualified Retirement for a Non-Employee Director means retirement under the retirement policy of the Board of Directors, as in effect from time
to time. 
 (26) “Restricted Stock” means an Award of Common Stock, as evidenced by an Award Agreement and granted
pursuant to Section 11(3), of the Plan. 
 (27) “Stock Appreciation Right” or “SAR” means an Award,
evidenced by an Award Agreement and granted either alone or in connection with a related Stock Option, pursuant to Section 10 of the Plan. 
 (28) “Stock Option” means either an Incentive Stock Option or a Nonqualified Stock Option granted pursuant to Section 7 of the Plan. 

(29) “Stock Units” mean a right to receive Common Stock (or cash equal to the fair market value of Common Stock) upon or
following the satisfaction of specified conditions, as evidenced by an Award Agreement and granted pursuant to Section 11 of the Plan. 
 (30) “Tandem SAR” means a SAR granted with respect to a share of Common Stock pursuant to Section 10 hereof in connection with a related Stock Option, under which: (a) the exercise of
the SAR with respect to the share shall cancel the right to purchase such share under the related Stock Option, and (b) the purchase of the share under the related Stock Option shall cancel the right to exercise the SAR with respect to such
share. 
 SECTION 4 
 ELIGIBILITY 
 Consultants, Employees and Non-Employee Directors are all eligible
to receive Awards. 
 SECTION 5 
 ANNUAL INCENTIVE AWARDS 
 (1) The Committee will designate Employees eligible to
receive Annual Incentive Awards hereunder, the performance criteria applicable to such Awards, the amount payable upon fulfillment of such performance criteria (and, if applicable, for performance above or below targeted levels of performance) and
all other terms and conditions applicable to such Awards. The Committee shall set the performance criteria for each year’s Annual Incentive Awards no later than the 90th day of the Fiscal Year. The performance criteria shall be determined in
the discretion of the Committee, provided that an Award under this Section that is intended to qualify for the Performance-Based Exception shall use performance criteria described in Section 6(1). 

  
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 (2) As soon as practical following the end of the Fiscal Year, the Committee will certify
performance achieved against the performance criteria established at the beginning of the Fiscal Year. 
 (3) The Committee, in
its sole discretion, may adjust any Annual Incentive Award otherwise earned based on an assessment of individual performance, but in no event may any such adjustment result in an increase of an Award intended to qualify for the Performance-Based
Exception. The Committee shall determine the amount of any such adjustment by taking into account such factors as it deems relevant including, without limitation: (a) performance against other financial or strategic objectives; (b) its
subjective assessment of the Participant’s overall performance for the year; and (c) prevailing levels of total compensation among similar companies. 
 (4) Performance criteria for Annual Incentive Awards will not be adjusted within a Fiscal Year except under circumstances approved by the Committee and, in the case of Annual Incentive Awards intended to
satisfy the Performance-Based Exception, in a manner consistent with that exception. 
 (5) Payment of an Annual Incentive Award
will be made in cash, shares of Common Stock, Restricted Stock, Stock Units or a combination of any of the foregoing, as determined in the sole discretion of the Committee to the Participant by March 15 of the calendar year following the end of
the Fiscal Year to which the Annual Incentive Award relates, subject to any deferral in payment permitted or required by the Committee under such rules and procedures it may establish. 

(6) It shall be presumed unless the Committee determines to the contrary, that all Awards to Employees under this Section are intended to
qualify for the Performance-Based Exception. If the Committee does not intend an Annual Incentive Award to qualify for the Performance-Based Exception the Committee shall reflect its intent in its records in such manner as the Committee determines
to be appropriate. For the purpose of complying with the Performance-Based Exception, the maximum Award under this Section paid to any one Employee during any one Fiscal Year shall not exceed $4,000,000, if paid in cash or 1,000,000 shares of Common
Stock, if paid in equity. 
 SECTION 6 
 PERFORMANCE MEASUREMENT 
 (1) The Performance Measures that determine the degree
of payout and/or vesting of Awards designed to qualify for the Performance-Based Exception may be measured at the Corporation level, at a subsidiary level, or at an operating unit level and shall be chosen from among: (a) income measures
(including, but not limited to, gross profits, operating income, earnings before or after taxes, earnings before interest and taxes, earnings before interest, taxes, depreciation, and amortization, earnings per share, cost reductions);
(b) return measures (including, but not limited to, return on assets, capital, investment, equity, or sales); (c) cash flow or cash flow return on investments, which equals net cash flows divided by owners equity; (d) revenues from
operations; (e) total revenue; (f) cash value added; (g) economic value added; (h) share price (including, but not limited to, growth measures and total shareholder return); (i) sales growth; (j) market share;
(k) the achievement of certain quantitatively and objectively determinable non-financial performance measures (including, but not limited to, growth strategies, strategic initiatives, product development, product quality, corporate development,
and leadership development); and (l) any combination of, or a specified increase in, any of the foregoing. The Performance Measures may be expressed in either absolute terms or relative to the performance of one or more companies (or an index
of multiple companies) identified by the Committee. 
 (2) Adjustments to Performance Measures. The Committee may provide, at
the time Performance Measures are established, that adjustments will be made to those performance goals to take into account, in any objective manner specified by the Committee, the impact of one or more of the following: (a) gain or loss from
all or certain claims and/or litigation and insurance recoveries, (b) the impairment of tangible or intangible assets, (c) stock-based compensation expense, (d) extraordinary, unusual or infrequently occurring events reported in the
Company’s public filings, (e) restructuring activities reported in the Company’s public filings, (f) investments, dispositions or acquisitions, (g) loss from the disposal of certain assets, (h) gain or loss from the
early extinguishment, redemption, or repurchase of debt, (i) changes in accounting principles, or (j) any other item, event or circumstance that would not cause an Award to fail to constitute for the Performance-Based Exception. An
adjustment described in this Section may relate to the Corporation, any subsidiary, or any operating unit, as determined by the Committee at the time the Performance Measures are established. Any adjustment shall be determined in accordance with
generally accepted accounting principles and standards, unless such other objective method of measurement is designated by the Committee at the time Performance Measures are established. 

  
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 (3) The Committee shall have the discretion to adjust the determination of the degree of
attainment of the pre-established goals; provided that the Awards that are designated to qualify for Performance-Based Exception may not be adjusted upward (although the Committee shall retain the discretion to adjust such Awards downward). In no
event shall the Performance Period for any performance-based equity Award be less than one year. 
 (4) In the case of any Award
that is granted subject to the condition that a specific Performance Measure be achieved, no payment under such Award shall be made prior to the time the Committee certifies in writing that that the Performance Measure has been achieved. For this
purpose, approved minutes of the Committee meeting at which the certification is made shall be treated as a written certification. No such certification is required, however, in the case of an Award that is based solely on an increase in the value
of a share of Common Stock from the date the Award is made. 
 (5) Notwithstanding the foregoing or any other provision of this
Plan, the Committee may provide that any Award intended to satisfy the Performance-Based Exception may become vested and/or payable, in whole or in part, in the event of the Participant’s death or disability, a Change in Control or under other
circumstances consistent with the Section 162(m) of the Code. 
 SECTION 7 

STOCK OPTIONS 

(1) The Committee may grant Nonqualified Stock Options to any person eligible to be a Participant. The Committee may grant Incentive
Stock Options only to Employees. In order to provide a limitation on the number of shares as provided for in Section 162(m) of the Code and the regulations thereunder, Stock Option grants shall be limited to a maximum of 1,000,000 shares per
Fiscal Year for any Employee reduced by the number of SARs granted to that Employee in that year. 
 (2) The Committee will
document the terms of the Stock Option in an Award Agreement to include the Grant Date and Exercise Price, as well as any other terms that it may desire. The Exercise Price under a Stock Option shall not be less than one hundred percent
(100%) of the Fair Market Value. Subject to adjustment pursuant to Section 12, the Exercise Price of outstanding Stock Options fixed by the Committee shall not be modified. 

(3) A Stock Option shall become exercisable in whole or in part upon satisfaction of the conditions specified in the Award Agreement,
provided, however, that, except as otherwise provided in subparts (7), (8), (9) or (10) of this Section, no Stock Option vesting on the basis of continued service shall vest in full prior to the commencement of the third anniversary of the
Grant Date. 
 (4) In no event, however, may a Stock Option governed by the Plan be exercised after the expiration of its term.
Except as provided herein or in the applicable Award Agreement, no Stock Option may be exercised at any time unless the Participant who holds the Stock Option is then employed by or in service with the Corporation or a subsidiary thereof. The option
can be exercised in whole or in part through (i) cashless exercise, (ii) the Corporation withholding from the shares of Common Stock otherwise issuable upon exercise of the Stock Option a number of shares of Common Stock having a Fair
Market Value equal, as of the date of exercise, to the Exercise Price of the Stock Option multiplied by the number of shares of Common Stock in respect of which the Stock Option shall have been exercised (“Net-Exercise”), or
(iii) other arrangements through agents, including stockbrokers, under arrangements established by the Corporation by paying the amounts required by instructions issued by the Secretary of the Corporation for the exercise of the Stock Options.
If an exercise is not covered by instructions issued by the Secretary of the Corporation, the purchase price is to be paid in full to the Corporation upon the exercise of a Stock Option (I) by cash including a personal check made payable to the
Corporation, (II) by delivering at fair market value on the date of exercise unrestricted Common Stock already owned by the Participant, or (III) by any combination of cash and unrestricted Common Stock, and in any case, by payment to the
Corporation of any withholding tax. Unless otherwise determined by the Committee, shares of Common Stock that otherwise would be delivered to the holder of a Stock Option may be delivered to the Corporation in payment of federal, state and/or local
withholding taxes payable in connection with an exercise. 
 (5) The Participant who holds a Stock Option will have none of the
rights of a stockholder with respect to the shares subject to that Stock Option until such shares are issued upon the exercise of that Stock Option. 
 (6) Neither the Corporation nor any subsidiary may directly or indirectly lend money to any Participant for the purpose of assisting the individual to acquire shares of Common Stock issued upon the
exercise of Stock Options granted under the Plan. 

  
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 (7) In the event of the termination of the employment or service of a Participant who holds
an outstanding Stock Option, other than by reason of death, total and permanent disability or (in the case of an Employee or Non-Employee Director) a Qualified Retirement, the Participant may (unless the Stock Option shall have been previously
terminated) exercise the Stock Option at any time within twelve (12) months of such termination, but not after the expiration of the term of the Award, to the same extent the Stock Option was exercisable at the date of such termination of
employment or service. The transfer of a Participant between the Corporation and any of its subsidiaries will not constitute a termination as long as there is no interruption of employment or service. If the Participant is terminated for cause, as
defined in the Navistar Inc. Income Protection Plan (or if the Participant is covered by a different severance plan or agreement, then as defined in such plan or agreement), the post-termination exercise period provided by this subsection shall not
apply and the Stock Option shall cease to be exercisable and shall lapse as of the effective date of the termination. 
 (8)
Except as provided in Section 7(11), in the event of a Qualified Retirement a Participant who holds an outstanding Stock Option may exercise the Stock Option to the extent the option is exercisable or becomes exercisable under the terms of the
applicable Award Agreement. 
 (9) In the event of a total and permanent disability, as defined by the Corporation’s long
term disability programs, (or in the case of a Consultant or Non-Employee Director, as determined by the Committee), a Participant who holds an outstanding Stock Option may exercise the Stock Option, to the extent the Stock Option is exercisable or
becomes exercisable under its terms, at any time within three (3) years after such termination or, if later, the date on which the option becomes exercisable with respect to such shares, but not after the expiration of the term of the option.

 (10) In the event of the death of a Participant who holds an outstanding Stock Option, the Stock Option may be exercised by a
legatee, or by the personal representatives or distributees, at any time within a period of two (2) years after death, but not after the expiration of the term of the option. If death occurs while employed by or in service with the Corporation
or a subsidiary , or after a Qualified Retirement or during the three- year period specified in Section 9, Stock Options may be exercised to the extent of the remaining shares covered by Stock Options whether or not such shares were exercisable
at the date of death. If death occurs during the twelve (12) month period specified in Section 7, Stock Options may be exercised to the extent of the number of shares that were exercisable at the date of death. 

(11) Notwithstanding the other provisions of Section 7, no Stock Option which is not exercisable at the time of a Qualified
Retirement shall become exercisable after such Qualified Retirement if, without the written consent of the Corporation, a Participant engages in a business, whether as owner, partner, officer, employee, or otherwise, which is in competition with the
Corporation or one of its affiliates, and if the Participant’s participation in such business is deemed by the Committee to be detrimental to the best interests of the Corporation. The determination as to whether such business is in competition
with the Corporation or any of its affiliates, and whether such participation by such person is detrimental to the best interests of the Corporation, shall be made by the Committee in its absolute discretion, and the decision of the Committee with
respect thereto, including its determination as to when the participation in such competitive business commenced, shall be conclusive. 
 (12) Notwithstanding any provision of the Plan to the contrary, under no circumstances whatsoever shall a Stock Option be exercisable during any period when the exercise of such Stock Option would violate
Applicable Law, as defined in Section 22. 
 SECTION 8 

OTHER AWARDS 

(1) The Committee may grant Other Awards to persons eligible to be Participants on such terms and conditions as the Committee deems
appropriate. Other Awards may be granted subject to achievement of performance goals or other conditions and may be payable in Common Stock or cash, or in a combination of the two, as determined by the Committee. 

(2) Other Awards intended to qualify for the Performance-Based Exception will vest or be earned based on satisfaction of Performance
Measures specified by the Committee in accordance with Section 6. For Other Awards denominated in shares of Common Stock and intended to qualify for the Performance-Based Exception, the total number of shares subject to Other Awards granted to
any one Employee during any one Fiscal Year shall not exceed 1,000,000 shares. For Other Awards denominated in cash and intended to qualify for the Performance-Based Exception, the maximum amount paid to any one Employee during any one Fiscal Year
with respect to Other Awards shall not exceed $4,000,000. 

  
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 SECTION 9 
 PROHIBITION ON REPRICING AND DISCOUNTED STOCK OPTIONS AND SARs 
 Notwithstanding
any other provision in the Plan, no Stock Option or SAR may be amended or modified in any way that changes the Exercise Price of the Stock Option or SAR, and no Stock Option or SAR may be issued with an Exercise Price that is less than the Fair
Market Value or in any other way discounted. This provision shall not limit any adjustments provided by Section 12 relating to adjustments upon changes in capitalization. 
 SECTION 10 
 STOCK APPRECIATION RIGHTS 

(1) The Committee may, subject to the terms of the Plan, grant SARs to persons eligible to be Participants at any time and from time to
time as shall be determined by the Committee. A SAR shall become exercisable in whole or in part upon satisfaction of the conditions specified in the Award Agreement, provided, however, that except as otherwise provided by the Committee, in the
event of a Participant’s death, disability, or Qualified Retirement no SAR vesting on the basis of continued service shall vest in full prior to the commencement of the third anniversary of the Grant Date. 

(2) The Committee may grant Freestanding SARs, Tandem SARs, or any combination thereof. The Committee shall have complete discretion in
determining the number of SARs, subject to the terms of the Plan, and to determine the terms of the SARs. The Exercise Price of a Freestanding SAR shall equal the Fair Market Value. The Exercise Price of Tandem SARs shall equal the Exercise Price of
the related Stock Option. 
 (3) Tandem SARs may be exercised for all or part of the shares of Common Stock subject to the
related Stock Option upon the surrender of the right to exercise the equivalent portion of the related Stock Option. 
 (4) With
respect to a Tandem SAR granted in connection with an Incentive Stock Option, the Tandem SAR shall expire no later than the expiration of the Incentive Stock Option. (5) Freestanding SARs may be exercised upon whatever terms and conditions the
Committee, in its discretion, imposes upon them, subject, however, to the terms of the Plan. 
 (5) The Participant who holds a
SAR will have none of the rights of a stockholder with respect to the shares subject to that SAR until such shares are issued upon the exercise of that SAR. 
 (6) The term of SARs shall be determined by the Committee, in its discretion; provided that such term shall not exceed 10 years. 
 (7) Upon exercise of a SAR, a Participant shall be entitled to receive payment from the Corporation in an amount determined by multiplying: (a) the excess of the Fair Market Value of one share of
Common Stock on the date of exercise over the Exercise Price, by (b) the number of shares of Common Stock with respect to which the SAR is exercised. At the discretion of the Committee, the payment upon exercise of a SAR may be in cash, Common
Stock with a Fair Market Value equal to the amount payable, or in a combination thereof. 
 (8) All awards to Employees under
this Section are intended to qualify for Performance-Based Exception. For the purpose of complying with the Performance-Based Exception, the number of SARs that can be granted to any one Employee in any Fiscal Year shall not exceed 1,000,000, less
the number of shares of Common Stock subject to Stock Options granted to such Employee during that Fiscal Year 

  
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 SECTION 11 
 RESTRICTED STOCK AND STOCK UNITS 
 (1) Restricted Stock, or Stock Units, may be
granted at any time to any person eligible to be a Participant. 
 (2) Awards of Restricted Stock or Stock Units may be made to
Participants for the purpose of satisfying the stock ownership requirements described in the Navistar Executive Stock Ownership Program, as amended from time to time, or for any other purpose. 

(3) Each Award of Restricted Stock or Stock Units shall become vested, in full or in installments, upon satisfaction of the conditions
specified in the Award Agreement. For avoidance of doubt, such conditions may include the achievement of Performance Measures specified by the Committee in accordance with Section 6. In no event will an Award of Restricted Stock or Stock Units
that vests solely on the basis of continued service vest in full prior to the commencement of the third year anniversary of the Grant Date, except as otherwise provided below in Section 11(6) and 11(7), and except that any Award (or portion
thereof) of Restricted Stock or Stock Units representing a Non-Employee Director’s first quarterly retainer shall be immediately vested upon the Grant Date. 
 (4) The Participant will be entitled to all dividends paid with respect to all Restricted Stock awarded under the Plan during the period of restriction and will not be required to return any such
dividends to the Corporation in the event of the forfeiture of the Restricted Stock. The Participant also will be entitled to vote Restricted Stock during the period of restriction. 

(5) Pending the vesting a Restricted Stock Award, the shares of Common Stock subject thereto may not be sold, pledged, assigned,
encumbered or otherwise transferred and a stop transfer order will be issued to the Corporation’s transfer agent. Any certificates issued in respect of Restricted Stock will include a legend reflecting these transfer restrictions (as well as
any other legends deemed appropriate by the Committee) and may be held in escrow by the Secretary of the Corporation (or his or her designee) pending the vesting of that stock. 

(6) In the event a Participant dies while employed by the Corporation or a subsidiary, performing services as a Consultant, or serving as
a Non-Employee-Director, the Restricted Stock or Stock Units will vest as of the date of death and all restrictions shall lapse and the Restricted Stock or Stock Units will be immediately transferable to the named beneficiary or to the
Participant’s estate. Any Restricted Stock or Stock Units that becomes payable after the Participant’s death shall be distributed to the Participant’s beneficiary or beneficiaries. A beneficiary designation may be changed by filing
the prescribed form with the Secretary of the Corporation at any time before the Participant’s death. If no beneficiary was designated or if no designated beneficiary survives the Participant, then any Restricted Stock or Stock Units that
becomes payable after the Participant’s death shall be distributed to the Participant’s estate. 
 (7) Unless
otherwise provided for in the applicable Award Agreement, Restricted Stock granted to an Employee or Non-Employee Director will become nonforfeitable upon the Participant’s eligibility for Qualified Retirement (and Restricted Stock granted to
an Employee or Non-Employee Director who is already eligible for Qualified Retirement will be nonforfeitable immediately upon issuance), provided that such Restricted Stock will remain subject to the transfer restrictions described above in
Section 11(5) in such proportions and until such dates as specified in the vesting schedule otherwise applicable to the Award. Similarly, unless otherwise provided for in the applicable Award Agreement, Restricted Stock will become
nonforfeitable upon cessation of a Participant’s employment with, or service to, the Corporation due to his or her total and permanent disability (as determined by the Committee), provided that such Restricted Stock will remain subject to the
transfer restrictions described above in Section 11(5) in such proportions and until such dates as specified in the vesting schedule otherwise applicable to the Award. Stock Units will be subject to accelerated vesting and/or settlement in
connection with a Participant’s Qualified Retirement or disability to the extent specified in the applicable Award Agreement. 
 (8) Except as otherwise provided above with respect to death, disability, or Qualified Retirement or unless otherwise provided in the applicable Award Agreement or determined by the Committee, if
Participant terminates employment or service as a Consultant or Non-Employee Director, any Restricted Stock or Stock Units that are not then vested will be forfeited to the Corporation. 

(9) To the extent and in the manner specified in the applicable Award Agreement, dividend equivalents with respect to outstanding Stock
Unit Awards may be (a) credited in the form of additional Stock Units or deferred cash, or (b) paid promptly in cash. Whether Stock Units include such dividend equivalent rights will be determined by the Committee, in its discretion.

 (10) The total number of shares subject to Restricted Stock and Stock Unit Awards intend to qualify for the Performance-Based
Exception and granted to any one Employee during any one Fiscal Year shall not exceed 1,000,000 shares. 

  
 8 

 (11) Notwithstanding the other provisions of Section 11, any Restricted Stock or Stock
Unit that becomes otherwise nonforfeitable due to a Participant’s eligibility for Qualified Retirement and that has not yet been released from transfer restrictions (in the case of Restricted Stock) or that has not yet been settled (in the case
of a Stock Unit) will be forfeited if, without the written consent of the Corporation, a Participant engages in a business, whether as owner, partner, officer, employee, or otherwise, which is in competition with the Corporation or one of its
affiliates, and if the Participant’s participation in such business is deemed by the Committee to be detrimental to the best interests of the Corporation. The determination as to whether such business is in competition with the Corporation or
any of its affiliates, and whether such participation by such person is detrimental to the best interests of the Corporation, shall be made by the Committee in its absolute discretion, and the decision of the Committee with respect thereto,
including its determination as to when the participation in such competitive business commenced, shall be conclusive. 
 SECTION
12 
 ADJUSTMENTS UPON CHANGES IN CAPITALIZATION 
 Notwithstanding any other provision of the Plan, in the event of a recapitalization, stock split or combination, stock dividend, spin-off, merger, consolidation, reorganization or other similar event or
transaction affecting the Common Stock, substitutions or adjustments will be made by the Committee to the aggregate number, class and/or issuer of the securities that may be issued under the Plan to the annual limits on Awards, to the number, class
and/or issuer of securities subject to outstanding Awards and to the exercise price of outstanding Stock Options and SARs, in each case in a manner that reflects equitably the effects of such event or transaction. 

SECTION 13 

ADMINISTRATION OF THE PLAN 
 Full power, authority and discretion to construe, interpret and administer the Plan are vested in the Committee. Decisions of the Committee will be final, conclusive and binding upon all parties,
including the Corporation, stockholders, Participants, and their beneficiaries. The foregoing will include, but will not be limited to, all determinations by the Committee as to (a) the selection of Employees, Consultants, and Non-Employee
Directors for participation in the Plan, (b) the size, type and other terms of Awards, (c) the selection and adjustment of performance criteria, and (d) the extent to which performance criteria or other vesting conditions are
satisfied, and (e) the waiver or amendment of any Award terms. Any person who accepts any Award hereunder agrees to accept as final, conclusive and binding all determinations of the Committee. The Committee will have the right, in the case of
Employees or Consultants who are employed or engaged to perform services, respectively, outside the United States, or Non-Employee Directors not resident in the United States, to vary from the provision of the Plan to the extent the Committee deems
appropriate in order to preserve the incentive features of the Plan. 
 SECTION 14 

NON-ASSIGNMENT 

Awards may not be assigned, alienated, or otherwise transferred. In case of a Participant’s death, the amounts distributable to the
deceased Participant under the Plan with respect to which a designation of beneficiary has been made (to the extent it is valid and enforceable under applicable law) shall be distributed in accordance with the Plan to the designated beneficiary or
beneficiaries. The amount distributable to a Participant upon death and not subject to such a designation shall be distributed to the Participant’s estate. If there is any question as to the right of any beneficiary to receive a distribution
under the Plan, the amount in question may be paid to the estate of the Participant, in which event the Corporation will have no further liability to anyone with respect to such amount. 

SECTION 15 

WITHHOLDING TAXES 
 (1)         A Participant may elect, subject to the provisions of the applicable Sections of the Plan and the terms of the Award, to pay any withholding tax due in
connection with the exercise of any Stock Option or SAR or upon the vesting of Restricted Stock or the settlement of Stock Units or any other Award either (i) by cash including a personal check made payable to the Corporation or (ii) by
delivering at fair market value, on the date that the amount of tax to be withheld is determined, unrestricted Common Stock already owned by the Participant, or (iii) by any combination of cash or unrestricted Common Stock. In addition, the
Committee may permit, in the Award Agreement or otherwise, that in the event that a Participant is required to pay to the Corporation any amount to be withheld in connection with the exercise, vesting or settlement of an Award denominated in shares
of Common Stock, the 

  
 9 

 
Participant may satisfy such obligation (in whole or in part) by electing to have the Corporation withhold a portion of the shares of Common Stock otherwise to be issued upon exercise, vesting or
settlement of such Award equal in value to the minimum amount required to be withheld. The value of the shares of Common Stock to be withheld shall be the Fair Market Value on the date that the amount of tax to be withheld is determined. 

(2) The Corporation does not warrant the tax treatment of Awards. Accordingly, while the Corporation will endeavor to structure Awards to
comply with or be exempt from the requirements of Section 409A of the Code, the Corporation will have no obligation to indemnify any Participant from any taxes or penalties incurred under Section 409A of the Code (or any other taxes or
penalties). 
 SECTION 16 
 RIGHTS OF PARTICIPANT 
 To the extent that any Participant, beneficiary or estate
acquires a right to receive payments or distributions under the Plan, such right will be no greater than the right of a general unsecured creditor of the Corporation. All payments and distributions to be made hereunder will be paid from the general
assets of the Corporation. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create any contracted right or trust of any kind or fiduciary relationship between the Corporation and any
Participant, beneficiary or estate. 
 SECTION 17 
 MODIFICATION, AMENDMENT OR TERMINATION 
 The Committee may modify, amend, or
terminate the Plan at any time, provided that, unless the requisite approval of stockholders is obtained, no amendment shall be made to the Plan if such amendment would (i) increase the number of shares of Common Stock available for issuance
under the Plan or increase the limits applicable to Awards under the Plan, in each case, except as provided in Section 12; (ii) lower the Exercise Price of the Stock Option or SAR grant value below 100% of the Fair Market Value except as
provided in Section 12; (iii) remove the repricing restriction set forth in Section 9; or (iv) require stockholder approval as a matter of law or under rules of the New York Stock Exchange. No Plan amendment shall, without the
affected Participant’s consent, terminate or adversely affect any right or obligation under any Stock Option or other Award previously granted under the Plan. 
 SECTION 18 
 RESERVATION OF SHARES 

(1) The total number of shares of Common Stock reserved and available for delivery pursuant to this Plan is 3,665,500, all of which will
be available for issuance in respect to Incentive Stock Options. The number of shares of Common Stock authorized and available shall be increased by shares of Common Stock subject to an option or award under this Plan (or under the Navistar 1994
Performance Incentive Plan, the Navistar 1998 Supplemental Stock Plan, the 1998 Non-Employee Director Stock Option Plan or the 2004 Plan) that is cancelled, expired, forfeited, settled in cash or otherwise terminated after the date this Plan is
approved by the stockholders of the Corporation without a delivery of shares to the award holder, including shares of Common Stock withheld to satisfy the exercise price of an option or a tax withholding obligation arising in connection with an
award. For avoidance of doubt, any shares of Common Stock subject to the exercised portion of a SAR that are not actually issued in connection with that exercise will become available for issuance with respect to other Awards. 

(2) Shares of Common Stock issued hereunder may be in whole or in part, as the Board of Directors or its duly authorized delegate shall
from time to time determine authorized and unissued shares of Common Stock or issued shares of Common Stock which shall have been reacquired by the Corporation. 
 (3) Notwithstanding any other provision of this Plan, Awards that do not meet the minimum three (3) year time-based vesting requirement elsewhere herein stated may be granted with respect to up to
ten percent (10%) of the shares of Common Stock authorized for issuance under the first sentence of subsection (1) above. 

  
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 SECTION 19 
 RIGHTS OF EMPLOYEES 
 Status as an Employee shall not be construed as a commitment
that any one or more Awards will be made under this Plan to an Employee or to Employees generally. Status as a Participant shall not entitle the Participant to any additional future Awards. Nothing in the Plan will confer on any Employee or
Participant any right to continue in the employ of the Corporation or any of its subsidiaries or interfere with or prevent in any way the right of the Corporation or any of its subsidiaries to terminate an Employee or Participant’s employment
at any time for any reason. 
 SECTION 20 
 CHANGE IN CONTROL 
 (1) Notwithstanding any provision contained herein to the
contrary other than Section 20(3), in the event of both (x) a Change in Control and (y) either immediately before the date on which a Change in Control occurs or during the 36 month-period after the date of the then-most recent
Change in Control, an Employee experiences (1) a separation for “Constructive Termination” or an involuntary termination for any reason other than “Cause” (both, as defined in the Employee’s Executive Severance
Agreement) or (2) an involuntary termination for any reason other than “Cause” (as defined in the Corporation’s Income Protection Plan for those Employees who are not a party to an Executive Severance Agreement), then
(I) all awarded Restricted Stock, Stock Units, and Other Awards will immediately be free of all restrictions and performance contingencies and will be deemed fully earned and not subject to forfeiture and (II) all outstanding Stock Options and
SARs will be immediately exercisable and shall continue to be exercisable for a period of three (3) years from the date of the Change in Control regardless of employment status, except that the term of any Stock Options and SARs shall not be
extended beyond the end of the original term of the Award. 
 (2) Notwithstanding any provision contained herein to the contrary
other than Section 20(3), in the event of both (x) a Change in Control and (y) either immediately before the date on which a Change in Control occurs or during the 36 month-period after the date of the then-most recent Change
in Control, a Consultant or Non-Employee Director experiences a separation in service, all awarded Restricted Stock, Stock Units, and Other Awards will immediately be free of all restrictions and performance contingencies and will be deemed fully
earned and not subject to forfeiture and all outstanding Stock Options and SARs governed by the Plan will be immediately exercisable and shall continue to be exercisable for a period of three (3) years from the date of the Change in Control
regardless of service status, except that the term of any Stock Options and SARs shall not be extended beyond the end of the original term of the Award. 
 (3) Upon or immediately prior to (and contingent on) a Change in Control or any similar transaction, the Committee may, in its sole discretion, take any or all of the following actions with respect to
outstanding Awards: (a) accelerate the vesting of outstanding Awards, in whole or in part; (b) terminate all Stock Options and SARs, provided that the Committee provides the Participant an opportunity to exercise such Stock Options or
SARs, as the case may be, within a specified period following the Participant’s receipt of a notice of such transaction and the Committee’s intention to terminate such Stock Options and SARs effective immediately prior to such transaction;
(c) cancel any Stock Option or SAR in exchange for a payment in cash of an amount equal to (i) the product of (A) the difference, if any, between the then current Fair Market Value of one share of Common Stock and the per share
Exercise Price of such Stock Option or SAR and (B) the number of shares underlying the unexercised portion of such Stock Option or SAR; provided, however, that if the per share Exercise Price of such Stock Option or SAR equals or exceeds the
then current Fair Market Value of one share of Common Stock, such Stock Option or SAR shall be canceled with no payment due the Participant; (d) if such transaction also either constitutes a change in the ownership or effective control of the
Corporation or Navistar, Inc., or a change in the ownership of a substantial portion of the assets of the Corporation or Navistar, Inc. (as defined in Section 409A(a)(2)(A)(v) (or any successor thereto) of the Code and its governing
regulations) settle any outstanding Stock Unit or Other Award subject to Section 409A or cancel either such Award in exchange for a payment in cash of an amount equal to (i) the product of (A) the then current Fair Market Value of one
share of Common Stock and (B) the number of shares underlying such Award; or (e) substitute cash for the Common Stock underlying any Stock Unit or Other Award in an amount equal to (i) the product of (A) the then current Fair
Market Value of one share of Common Stock and (B) the number of shares underlying such Award, but retain the original vesting and payment schedule applicable to such Award. If the Corporation is not publicly traded immediately before such
transaction, the Committee may, in its sole discretion, determine the Fair Market Value of the Common Stock based solely on the amount of consideration to be paid in respect thereof only on the closing date of such transaction (in which case such
Stock Option and SAR holders shall not participate in any post-closing payments, such as net working capital, debt and cash adjustments, earn outs or escrows); The application of the foregoing provisions shall be determined by the Committee in its
sole and absolute discretion and shall be binding on Participants and all other persons. 

  
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 SECTION 21 
 LIMITATION OF ACTIONS 
 Every right of action by or on behalf of the Corporation
or any stockholder against any past, present or future member of the Board of Directors, officer or Employee arising out of or in connection with the Plan will, irrespective of the place where action may be brought and irrespective of the place of
residence of any such director, officer or Employee, cease and be barred by the expiration of three (3) years from whichever is the later of (a) the date of the act or omission in respect of which such right of action arises or
(b) the first date upon which there has been made generally available to stockholders an annual report of the Corporation and a proxy statement for the annual meeting of stockholders following the issuance of such annual report, which annual
report and proxy statement alone or together set forth, for the related period, the aggregate amount of Awards during such period; and any and all right of action by an Employee, Consultant, or Non-Employee Director (past, present or future) against
the Corporation arising out of or in connection with the Plan shall, irrespective of the place where action may be brought, cease and be barred by the expiration of three (3) years from the date of the act or omission in respect of which such
right of action arises. 
 SECTION 22 
 GOVERNING LAW 
 The Plan will be governed by and construed in accordance with
applicable Federal laws and, to the extent not inconsistent therewith or pre-empted thereby, with the laws of the State of Delaware (without regard to the conflicts of laws provisions of that State or any other jurisdiction), including applicable
regulations, rules, and such other applicable authorities thereunder (“Applicable Law”). Accordingly, for the avoidance of doubt, the receipt, exercise, issuance, and disposition, as appropriate, of any Award, Common Stock is expressly
conditioned upon and subject to any and all limitations, restrictions, prohibitions, or such other conditions imposed by Applicable Law, including, but not limited to, applicable Federal and state securities law. 

SECTION 23 

EFFECTIVE DATE 

The effective date of the Plan shall be February 19, 2013 (the “Effective Date”), subject to approval by the stockholders
at the Corporation’s Annual Meeting of stockholders to be held on February 19, 2013, or any adjournment thereof. The Plan shall continue in effect for ten (10) years from the Effective Date, until February 19, 2023. No Awards may
be granted subsequent to February 19, 2023, but Awards theretofore granted may extend beyond that date in accordance with their terms. 

  
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