Document:

Exhibit

Execution Version

SECOND AMENDMENT TO NAVISTAR INTERNATIONAL CORPORATION
AMENDED AND RESTATED EMPLOYMENT AND SERVICES AGREEMENT

This Second Amendment to the Navistar International Corporation Amended and Restated Employment and Services Agreement (dated April 22, 2016), as amended by the Amendment to the Navistar International Corporation Amended and Restated Employment and Services Agreement (dated April 16, 2018) is entered into on April 24, 2019 (the “Execution Date”) and effective as of April 22, 2019 (the "Second Amendment Effective Date") by and among Navistar International Corporation, a Delaware corporation (the "Company"), its principal operating subsidiary, Navistar, Inc., a Delaware corporation ("Navistar"), and Troy A. Clarke ("Executive") (each a "Party" and collectively, the "Parties").

RECITALS:

A.    On April 22, 2016, the Company, Navistar and Executive entered into that certain Navistar International Corporation Amended and Restated Employment and Services Agreement (the "Agreement”) wherein Executive agreed to continue to serve as Chief Executive Officer and President ("CEO") of the Company and the Company and Navistar agreed to provide compensation and benefits, among other things, to Executive for such service.

B.    The Agreement was amended by the Amendment to the Navistar International Corporation Amended and Restated Employment and Services Agreement (dated April 16, 2018) (the “First Amendment”), which among other things, extended the term of the Agreement through and until April 22, 2019 (Paragraph 1(a) of the Agreement) and also made certain other amendments to Paragraphs 3(a), 3(b), 3(c), 6(a), 6(d), 6(e), 6(f), and 20 of the Agreement.

C.    The term of the Agreement, as amended by the First Amendment, will expire on April 22, 2019, and the Parties desire to further extend and amend the Agreement, as amended by the First Amendment, in accordance with, and subject to the terms of, this Second Amendment (the “Second Amendment”).

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.    Second Amendment.  The Agreement, as amended by the First Amendment, is further amended as of the Second Amendment Effective Date as follows:

(a)    Paragraph 1(a) is amended to extend the Services Term of the Agreement through and until April 22, 2020 by replacing the phrase "... shall end on the second anniversary of the Effective Date ..." in the first sentence of Paragraph 1(a) with "... shall end on the fourth anniversary of the Effective Date ...", such that the Services Term will expire on April 22, 2020.

(b)    Paragraph 3(b) is amended by replacing the phrase: “... provided, however, that with respect to the fiscal year during which Executive’s Services Term ends (i.e., 2019) ...” with the phrase: “... provided, however, that with respect to the fiscal year during which Executive’s Services Term ends (i.e., 2020) ...”

(c)    Paragraph 3(c)(ii) is amended by adding the following language:

"(ii) For the 2019 fiscal year, Executive will be granted long-term incentive awards on the Execution Date, in the form of (x) 20% in stock options, (y) 30% in an award of stock-settled restricted stock units and (z) 50% in a performance-based cash unit award, with a total target amount of $5,500,000 in each case subject to the terms and conditions of the Company's 2013 Performance Incentive Plan, as amended (or any successor plan) and applicable award agreements in the form that applies to other senior executives' 2019 long-term incentive awards generally (including with respect to performance goals), and the specific terms and conditions contained in Executive's 2019 long-term incentive award.”

Execution Version

(d)    Paragraph 6(d) is amended by replacing the sentence: “The duration of Executive's assistance will not exceed the extended Services Term (i.e., April 22, 2019)" with the sentence: “The duration of Executive's assistance will not exceed the extended Services Term (i.e., April 22, 2020)."

(e)    Paragraph 6(f) is amended in its entirety to read as follows:  
“Following the expiration of the Term of this Agreement, Executive agrees, if requested by the Board, to remain with the Corporation as Executive Chairman of the Board for a period of up to two (2) years.  As consideration for Executive’s agreement to serve in such capacity, his compensation will be equal to the cash equivalent of the non-employee director cash and equity retainer and, for the avoidance of doubt, Executive shall continue to vest in any unvested equity awards and performance cash incentives outstanding on the date of his retirement as CEO through the end date of his service as Executive Chairman of the Board.  In the event the Board of Directors chooses not to elect Executive as Executive Chairman of the Board following his retirement as CEO, or at the conclusion of his service as Executive Chairman of the Board, all unvested equity and cash performance incentives will continue to vest, subject to non-compete and non-solicit covenants.  Should the Board of Directors request that Executive perform duties beyond those customary for an Executive Chairman in the normal course of business, Executive shall be entitled to appropriate supplemental compensation to be negotiated in good faith and agreed upon by the Parties at the time.”

(f)    Paragraph 20 is amended in its entirety to read as follows:

"Legal Fees.  The Company will pay the legal fees, up to a maximum of $10,000, incurred by Executive in connection with the negotiation and execution of this Second Amendment, payable upon submission of the billing statement or paid receipt for such services rendered by Executive's counsel."

    
2.    Miscellaneous.

(a)    Except as specifically modified in this Second Amendment, the Agreement, as amended by the First Amendment, shall continue in full force and effect and the Agreement, as amended by the First Amendment and further amended by this Second Amendment, is hereby ratified, confirmed and approved.

(b)    This Second Amendment will be governed by and construed in accordance with applicable federal laws and, to the extent not inconsistent therewith or preempted thereby, with the laws of the State of Illinois, including any applicable statutes of limitation, without regard to any otherwise applicable principles of conflicts of laws or choice of law rules (whether of the State of Illinois or any other jurisdiction) that would result in the application of the substantive or procedural rules or law of any other jurisdiction.

(c)    This Second Amendment is binding upon and shall inure to the benefit of the Parties and their respective permitted successors and assigns under the Agreement.

(d)    All capitalized terms not defined in this Second Amendment shall have the same meaning ascribed to those terms in the Agreement, as amended by the First Amendment, or, in the case of the term "Qualified Retirement," in the 2018 and 2019 long-term incentive award provided to Executive.

(e)    In the event of any conflict between the terms of this Second Amendment and the terms of the Agreement, as amended by the First Amendment, the terms of this Second Amendment shall govern and control.

(f)    This Second Amendment may be executed in counterparts (including via facsimile or the electronic exchange of portable document format [PDF] copies), and each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned.

(g)    The Recitals are by this reference incorporated herein and made a part of this Second Amendment.

[Signature Page Follows]

Execution Version

IN WITNESS WHEREOF, each of the Parties has executed this Second Amendment, in the case of the Company and Navistar, by a duly authorized officer, on the 24th day of April, 2019.

NAVISTAR INTERNATIONAL CORPORATION

/s/ Curt A. Kramer
By: Curt A. Kramer
Its: Senior Vice President and General Counsel

NAVISTAR, INC.

/s/ Curt A. Kramer
By: Curt A. Kramer
Its: Senior Vice President and General Counsel

EXECUTIVE 

/s/ Troy A. Clarke                    
Troy A. ClarkeExhibit

Exhibit 10.1

TERMS AND CONDITIONS

FORM OF RESTRICTED STOCK UNIT AWARD CERTIFICATE
for Non-Employee Directors

Non-transferable

GRANT TO

Name
(“Participant”)

by Duke Realty Corporation (the “Company”) of

X,XXX
restricted stock units convertible into shares of its common stock, par value $0.01 (the “Units")

pursuant to and subject to the provisions of the Duke Realty Corporation 2015 Non-Employee Directors Compensation Plan, (the “Directors Compensation Plan”), which is operated as a subplan of the Duke Realty Corporation 2015 Long-Term Incentive Plan (the “Incentive Plan” and, together with the Directors Compensation Plan, the “Plans”), and to the terms and conditions set forth on the following page.  

Unless vesting is accelerated in accordance with the Plans, the Units shall vest (become non-forfeitable) in accordance with the following schedule:  

	
			
	Continuous Status as a Participant
after Grant Date
	Number of 
Units Vesting Per Year 
	

Percent of Units Vested

	Less than 1 Year
	0
	0%

	1 Year
	X,XXX
	100%

IN WITNESS WHEREOF, Duke Realty Corporation has caused this Certificate to be executed as of the Grant Date, as indicated below.

	
			
	DUKE REALTY CORPORATION
	 
	ACCEPTED BY PARTICIPANT:

	By:   /s/ Tracy D. Swearingen                
	 
	Name

	Tracy D. Swearingen,
	 
	Date

	Senior Vice President, Taxation

	 
	 

    

Grant Date:  February 10, 2019

DEFINITIONS:
Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Incentive Plan. Without limiting the foregoing, the following terms shall have the following meanings for purposes of this award certificate (“Certificate”):

(a) “Director Retirement” means retirement of the director on or after attaining the age of 55.  Notwithstanding the foregoing, retirement of a Non-Employee Director shall not be deemed to have occurred unless it constitutes a “separation from service” within the meaning of Section 409A of the Code, without giving effect to any elective provisions that may be available under such definition.

RESTRICTED STOCK UNITS:

1. Grant of Units.  The Company hereby grants to Participant, subject to the restrictions and the terms and conditions set forth in the Incentive Plan and in this Certificate, the number of restricted stock units indicated on page 1 hereof (the “Units”) which represent the right to receive an equal number of Shares of the Company’s Stock on the terms set forth in this Certificate.

2. Vesting of Units.  The Units have been credited to a bookkeeping account on behalf of Participant.  The Units will vest and become non-forfeitable on the earliest to occur of the following (the “RSU Vesting Date”):

		
	(a)
	as to the number of the Units specified on page 1 hereof, on the respective anniversaries of the Grant Date specified on page 1 hereof, or 

		
	(b)
	the termination of Grantee’s service as a director of the Company due to death, Director Disability, or Director Retirement, or

(c)  the occurrence of a Change in Control.

If Participant’s service as a director terminates prior to the Vesting Date for any reason other than as described in (b) or (c) above, Participant shall forfeit all right, title and interest in and to the Units as of the date of such termination and the Units will be reconveyed to the Company without further consideration or any act or action by Participant.  If Section 409A of the Code is determined to apply to this Award, any reference herein to Participant’s termination of service shall be interpreted to mean Participant’s “separation from service” as defined in Code section 409A and Treasury regulations and guidance with respect to such law.

3. Conversion to Stock.  Unless the Units are forfeited prior to the RSU Vesting Date as provided in Paragraph 2, or deferred as provided in Paragraph 4, the Units will be converted to actual shares of Stock on the later of (i) the RSU Vesting Date, or (ii) if required by Code Section 409A and Treasury regulations and guidance with respect to such law, the six-month anniversary of Participant’s separation from service (the “Conversion Date”), and stock certificates evidencing the conversion of Units into shares of Stock will be registered on the books of the Company in Participant’s name as of the Conversion Date and delivered to Participant as soon as practical thereafter.  

4. Deferral Election.  If permitted by the Committee, Participant may elect with respect to any or all of the Units to defer delivery of the shares of Stock that would otherwise be due on the original Conversion Date until a designated later time.  If such deferral election is permitted, the Committee shall, in its sole discretion, establish the rules and procedures for such payment deferrals in compliance with Section 409A of the Code and Treasury regulations and guidance with respect to such law. 

5. Dividend Equivalents.  If and when dividends or other distributions are paid with respect to the Stock while the Units are outstanding, the dollar amount or fair market value of such dividends or distributions with respect to the number of shares of Stock then underlying the Units shall be converted into additional 

Units in Participant’s name, based on the Fair Market Value of the Stock as of the date such dividends or distributions were payable.  Such additional Units acquired upon the reinvestment of dividends or distributions shall be immediately vested when credited to Participant’s account, but will be converted to actual shares of Stock on the earlier of: (i) the same date as the original Units with respect to which they were credited are converted to Stock, or (ii) if such original Units fail to vest and are therefore forfeited, as soon as practical after the date on which the original Units were forfeited (or six months after Participant’s separation from service if necessary to comply with Section 409A of the Code).  Upon conversion of the Units into shares of Stock, Participant will obtain full voting and other rights as a stockholder of the Company.

GENERAL PROVISIONS:

6. Changes in Capital Structure. The provisions of Article 15 of the Incentive Plan shall apply to these Awards and are incorporated herein by reference. Without limiting the foregoing, in the event the Stock shall be changed into or exchanged for a different number or class of shares of stock or securities of the Company or of another company, whether through reorganization, recapitalization, statutory share exchange, reclassification, stock split-up, combination of shares, merger or consolidation, or otherwise, there shall be substituted for each share of Stock then underlying the Awards subject to this certificate the number and class of shares into which each outstanding share of Stock shall be so exchanged.

7. Restrictions on Transfer and Pledge. No right or interest of Participant in these Awards may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or an Affiliate, or shall be subject to any lien, obligation, or liability of Participant to any other party other than the Company or an Affiliate. The Awards are not assignable or transferable by Participant other than by will or the laws of descent and distribution or pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the Code if such Section applied to an Award under the Incentive Plan. 

8. Limitation of Rights. The Awards do not confer to Participant or Participant’s beneficiary any rights of a shareholder of the Company unless and until Shares are in fact issued to such person in connection with the exercise or conversion of the Awards. Nothing in this Certificate shall interfere with or limit in any way the right of the Company or any Affiliate to terminate Participant’s service at any time, nor confer upon Participant any right to continue in the service of the Company or any Affiliate.

9. Amendment. The Committee may amend, modify or terminate this Certificate without approval of Participant; provided, however, that such amendment, modification or termination shall not, without Participant’s consent, reduce or diminish the value of this Award. Notwithstanding anything herein to the contrary, the Committee may, without Participant’s consent, amend or interpret this Certificate to the extent necessary to comply with Section 409A of the Code and Treasury regulations and guidance with respect to such law.

10. Compensation Recoupment Policy. This Award shall be subject to any compensation recoupment policy of the Company that is applicable by its terms to Participant and to Awards of this type.

11. Incentive Plan Controls. The terms contained in the Incentive Plan are incorporated into and made a part of this Certificate and this Certificate shall be governed by and construed in accordance with the Incentive Plan. In the event of any actual or alleged conflict between the provisions of the Incentive Plan and the provisions of this Certificate, the provisions of the Incentive Plan shall be controlling and determinative.

12. Successors. This Certificate shall be binding upon any successor of the Company, in accordance with the terms of this Certificate and the Incentive Plan.

13. Severability. If any one or more of the provisions contained in this Certificate is invalid, illegal or unenforceable, the other provisions of this Certificate will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included.

14. Notice. Notices and communications under this Certificate must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to Duke Realty Corporation, 600 East 96th Street, Suite 100, Indianapolis, IN 46240; Attn: General Counsel, or any other address designated by the Company in a written notice to Participant. Notices to Participant will be directed to the address of Participant then currently on file with the Company, or at any other address given by Participant in a written notice to the Company.

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