Document:

EX-10.2

 Exhibit 10.2 
  

 
 

 
 March 29, 2016 

STRICTLY CONFIDENTIAL 
 CytoDyn Inc. 

1111 Main Street 
 Suite 660 

Vancouver, WA 98660 

			
	Attn:	  	Nader Z. Pourhassan, Ph.D.
		  	President and Chief Executive Officer

 Dear Dr. Pourhassan: 

This letter agreement (this “Agreement”) constitutes the agreement between CytoDyn Inc. (the “Company”) and
Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC (“Rodman”), that Rodman shall serve as the exclusive agent, advisor or underwriter in any offering (each, an “Offering”) of securities of the Company
(“Securities”) during the Term (as defined below) of this Agreement. The terms of each Offering and the Securities issued in connection therewith shall be mutually agreed upon by the Company and Rodman and nothing herein implies
that Rodman would have the power or authority to bind the Company and nothing herein implies that the Company shall have an obligation to issue any Securities. It is understood that Rodman’s assistance in an Offering will be subject to the
satisfactory completion of such investigation and inquiry into the affairs of the Company as Rodman deems appropriate under the circumstances and to the receipt of all internal approvals of Rodman in connection with the transaction. The Company
expressly acknowledges and agrees that Rodman’s involvement in an Offering is strictly on a reasonable best efforts basis and that the consummation of an Offering will be subject to, among other things, market conditions. The execution of
this Agreement does not constitute a commitment by Rodman to purchase the Securities and does not ensure a successful Offering of the Securities or the success of Rodman with respect to securing any other financing on behalf of the
Company. Rodman may retain other brokers, dealers, agents or underwriters on its behalf in connection with an Offering. 
 A.
Compensation; Reimbursement. At the closing of each Offering (each, a “Closing”), the Company shall compensate Rodman as follows: 

1. Cash Fee. The Company shall pay to Rodman a cash fee, or as to an underwritten Offering an underwriter discount,
equal to 8% of the aggregate gross proceeds raised in each Offering (including, if the Securities include a “greenshoe” or “additional investment” option component, gross proceeds from the exercise of such component). 

2. Warrant Coverage. The Company shall issue to Rodman or its designees at each Closing, warrants (the
“Rodman Warrants”) to purchase that number of shares of common stock of the Company equal to 8% of the aggregate number of shares of Common Stock placed in each Offering (if the Securities include a “greenshoe” or
“additional investment” option component, such shares of Common Stock issued upon the exercise of such component). The Rodman Warrants shall have the same terms as the warrants issued to investors in the applicable Offering except as to
the exercise price, which shall equal 110% of the price of the Common Stock in the Offering. If no warrants are issued to investors in an Offering, the Rodman Warrants shall be in a customary form reasonably acceptable to Rodman, have a term of
5 years and an exercise price equal to 110% of the then market price of the Common Stock. 
  

 
 430 Park Avenue | New York, New
York 10022 | 212.356.0500 
 Security services provided by H.C. Wainwright & Co., LLC | Member: FINRA/SIPC 

 3. Expense Allowance. Out of the proceeds of each Closing, the
Company also agrees to pay Rodman (a) a management fee equal to 1% of the gross proceeds raised in each offering, (b) up to $50,000 for out of pocket expenses incurred by Rodman in connection with marketing the transaction (i.e. road show expenses,
background checks, tombstones, etc.) and (c) $100,000 for legal fees and expenses of Rodman (provided, however, that such reimbursement amount in no way limits or impairs the indemnification and contribution provisions of this
Agreement). 
 4. Tail Fee. Rodman shall be entitled to compensation under clauses (1) and (2) hereunder,
calculated in the manner set forth therein, with respect to any public or private offering or other financing or capital-raising transaction of any kind (“Tail Financing”) to the extent that such financing or capital is provided to
the Company by investors whom Rodman had contacted during the Term, or introduced directly to the Company during Term, if such Tail Financing is consummated at any time within the 9 month period following the expiration or termination of this
Agreement. 
 5. Right of First Refusal. If within the 12-month period following consummation of each Offering,
the Company or any of its subsidiaries decides to raise funds by means of a public offering or a private placement of equity or debt securities using an underwriter or placement agent, Rodman (or any affiliate designated by Rodman) shall have the
right to act as lead underwriter or lead placement agent for such financing, other than a private placement of equity or debt securities using Paulson Investment Company, LLC as placement agent. If Rodman or one of its affiliates decides to accept
any such engagement, the agreement governing such engagement will contain, among other things, provisions for customary fees for transactions of similar size and nature and the provisions of this Agreement, including indemnification, which are
appropriate to such a transaction. 
 B. Term and Termination of Engagement; Exclusivity. The term of Rodman’s exclusive
engagement will begin on the date hereof and end 4 months after the date hereof (the “Term”). Notwithstanding anything to the contrary contained herein, the Company agrees that the provisions relating to the payment of fees,
reimbursement of expenses, indemnification and contribution, confidentiality, conflicts, independent contractor and waiver of the right to trial by jury will survive any termination of this Agreement. During Rodman’s engagement hereunder: (i)
the Company will not, and will not permit its representatives to, other than in coordination with Rodman, contact or solicit institutions, corporations or other entities or individuals as potential purchasers of the Securities and (ii) the Company
will not pursue any financing transaction which would be in lieu of an Offering; provided, however, through the filing date of the registration statement relating to the initial Offering, the Company may pursue private offerings, with
Paulson Investment Company, LLC acting as the placement agent, to accredited retail investors, which such offerings shall not exceed $10 million, in the aggregate.

C. Information; Reliance. The Company shall furnish, or cause to be furnished, to Rodman all information requested by Rodman for
the purpose of rendering services hereunder (all such information being the “Information”). In addition, the Company agrees to make available to Rodman upon request from time to time the officers, directors, accountants,
counsel and other advisors of the Company. The Company recognizes and confirms that Rodman (a) will use and rely on the Information, including any documents provided to investors in each Offering (the “Offering Documents” which
shall include any Purchase Agreements (as defined below)), and on information available from generally recognized public sources in performing the services contemplated by this Agreement without having independently verified the same; (b) does not
assume responsibility for the accuracy or completeness of the Offering Documents or the Information and such other information; and (c) will not make an appraisal of any of the assets or liabilities of the Company. Notwithstanding the
foregoing, Rodman recognizes and confirms that it is responsible for the accuracy of any 

  
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information solely related to Rodman and furnished by it for the purposes of inclusion in the Offering Documents. Upon reasonable request, the Company will meet with Rodman or its
representatives to discuss all information relevant for disclosure in the Offering Documents and will cooperate in any investigation undertaken by Rodman thereof, including any document included or incorporated by reference therein. At each
Offering, at the request of Rodman, the Company shall deliver such legal letters, comfort letters and officer’s certificates, all in form and substance satisfactory to Rodman and its counsel as is customary for such Offering. Rodman shall
be a third party beneficiary of any representations, warranties, covenants and closing conditions made by the Company in any Offering Documents, including representations, warranties, covenants and closing conditions made to any investor in an
Offering. 
 D. Related Agreements. At each Offering, the Company shall enter into the following additional agreements: 

1. Underwritten Offering. If an Offering is an underwritten Offering, the Company and Rodman shall enter into a
customary underwriting agreement in form and substance satisfactory to Rodman and its counsel. 
 2. Best Efforts
Offering. If an Offering is on a best efforts basis, the sale of Securities to the investors in the Offering will be evidenced by a purchase agreement (“Purchase Agreement”) between the Company and such investors in a form
reasonably satisfactory to the Company and Rodman. Prior to the signing of any Purchase Agreement, officers of the Company with responsibility for financial affairs will be available to answer inquiries from prospective investors. 

3. Escrow and Settlement. In respect of each Offering, the Company and Rodman shall enter into an escrow agreement
with a third party escrow agent, which may also be Rodman’s clearing agent, pursuant to which Rodman’s compensation and expenses shall be paid from the gross proceeds of the Securities sold. If the Offering is settled in whole or in
part via delivery versus payment (“DVP”), Rodman shall arrange for its clearing agent to provide the funds to facilitate such settlement. The Company shall bear the cost of the escrow agent and shall reimburse Rodman up to $10,000 for the
actual out of pocket cost of such clearing agent settlement and financing, if any. 
 4. FINRA
Amendments. Notwithstanding anything herein to the contrary, in the event that Rodman determines that any of the terms provided for hereunder shall not comply with a FINRA rule, including but not limited to FINRA Rule 5110, then the Company
shall agree to amend this Agreement (or include such revisions in the final underwriting) in writing upon the request of Rodman to comply with any such rules; provided that any such amendments shall not provide for terms that are less favorable to
the Company. 
 E. Confidentiality. Except in keeping with its obligations under this Agreement, Rodman will maintain in
confidence and will use only for the purpose of fulfilling its obligations hereunder and will not use for its own benefit any inventions, confidential know-how, trade secrets, financial information and other non-public information and data disclosed
to it by the Company, and it will not divulge the same to any other persons until such time as the information becomes a matter of public knowledge. Rodman will use its best efforts to prevent any unauthorized disclosure described above by
others. In the event of the consummation or public announcement of any Offering, Rodman shall have the right to disclose its participation in such Offering, including, without limitation, the Offering at its cost of “tombstone”
advertisements in financial and other newspapers and journals. The obligations of this paragraph shall survive the expiration or termination of this Agreement. 

  
 3 

 F. Indemnity. 

1. In connection with the Company’s engagement of Rodman as Offering agent, the Company hereby agrees to indemnify and
hold harmless Rodman and its affiliates, and the respective controlling persons, directors, officers, members, shareholders, agents and employees of any of the foregoing (collectively the “Indemnified Persons”), from and against any
and all claims, actions, suits, proceedings (including those of shareholders), damages, liabilities and expenses incurred by any of them (including the reasonable fees and expenses of counsel), as incurred, (collectively a “Claim”),
that are (A) related to or arise out of (i) any actions taken or omitted to be taken (including any untrue statements made or any statements omitted to be made) by the Company, or (ii) any actions taken or omitted to be taken by any Indemnified
Person in connection with the Company’s engagement of Rodman, or (B) otherwise relate to or arise out of Rodman’s activities on the Company’s behalf under Rodman’s engagement, and the Company shall reimburse any Indemnified
Person for all expenses (including the reasonable fees and expenses of counsel) as incurred by such Indemnified Person in connection with investigating, preparing or defending any such claim, action, suit or proceeding, whether or not in connection
with pending or threatened litigation in which any Indemnified Person is a party. The Company will not, however, be responsible for any Claim that is finally judicially determined to have resulted from the gross negligence or willful misconduct
of any person seeking indemnification for such Claim. The Company further agrees that no Indemnified Person shall have any liability to the Company for or in connection with the Company’s engagement of Rodman except for any Claim incurred
by the Company as a result of such Indemnified Person’s gross negligence or willful misconduct. 
 2. The Company
further agrees that it will not, without the prior written consent of Rodman, settle, compromise or consent to the entry of any judgment in any pending or threatened Claim in respect of which indemnification may be sought hereunder (whether or not
any Indemnified Person is an actual or potential party to such Claim), unless such settlement, compromise or consent includes an unconditional, irrevocable release of each Indemnified Person from any and all liability arising out of such Claim. 

3. Promptly upon receipt by an Indemnified Person of notice of any complaint or the assertion or institution of any Claim with
respect to which indemnification is being sought hereunder, such Indemnified Person shall notify the Company in writing of such complaint or of such assertion or institution but failure to so notify the Company shall not relieve the Company from any
obligation it may have hereunder, except and only to the extent such failure results in the forfeiture by the Company of substantial rights and defenses. If the Company so elects or is requested by such Indemnified Person, the Company will
assume the defense of such Claim, including the employment of counsel reasonably satisfactory to such Indemnified Person and the payment of the fees and expenses of such counsel. In the event, however, that legal counsel to such Indemnified Person
reasonably determines that having common counsel would present such counsel with a conflict of interest or if the defendant in, or target of, any such Claim, includes an Indemnified Person and the Company, and legal counsel to such Indemnified
Person reasonably concludes that there may be legal defenses available to it or other Indemnified Persons different from or in addition to those available to the Company, then such Indemnified Person may employ its own separate counsel to represent
or defend him, her or it in any such Claim and the Company shall pay the reasonable fees and expenses of such counsel. Notwithstanding anything herein to the contrary, if the Company fails timely or diligently to defend, contest, or otherwise
protect against any Claim, the relevant Indemnified Party shall have the right, but not the obligation, to defend, contest, compromise, settle, assert crossclaims, or counterclaims or otherwise protect against the same, and shall be fully
indemnified by the Company therefor, including without limitation, for the reasonable fees and expenses of its counsel and all amounts paid as a result of such Claim or the compromise or settlement thereof. In addition, with respect to any
Claim in which the Company assumes the defense, the Indemnified Person shall have the right to participate in such Claim and to retain his, her or its own counsel therefor at his, her or its own expense. 

  
 4 

 4. The Company agrees that if any indemnity sought by an Indemnified Person
hereunder is held by a court to be unavailable for any reason then (whether or not Rodman is the Indemnified Person), the Company and Rodman shall contribute to the Claim for which such indemnity is held unavailable in such proportion as is
appropriate to reflect the relative benefits to the Company, on the one hand, and Rodman on the other, in connection with Rodman’s engagement referred to above, subject to the limitation that in no event shall the amount of Rodman’s
contribution to such Claim exceed the amount of fees actually received by Rodman from the Company pursuant to Rodman’s engagement. The Company hereby agrees that the relative benefits to the Company, on the one hand, and Rodman on the
other, with respect to Rodman’s engagement shall be deemed to be in the same proportion as (a) the total value paid or proposed to be paid or received by the Company pursuant to the applicable Offering (whether or not consummated) for which
Rodman is engaged to render services bears to (b) the fee paid or proposed to be paid to Rodman in connection with such engagement. 

5. The Company’s indemnity, reimbursement and contribution obligations under this Agreement (a) shall be in addition to,
and shall in no way limit or otherwise adversely affect any rights that any Indemnified Party may have at law or at equity and (b) shall be effective whether or not the Company is at fault in any way. 

G. Limitation of Engagement to the Company. The Company acknowledges that Rodman has been retained only by the Company, that
Rodman is providing services hereunder as an independent contractor (and not in any fiduciary or agency capacity) and that the Company’s engagement of Rodman is not deemed to be on behalf of, and is not intended to confer rights upon, any
shareholder, owner or partner of the Company or any other person not a party hereto as against Rodman or any of its affiliates, or any of its or their respective officers, directors, controlling persons (within the meaning of Section 15 of the
Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), employees or agents. Unless otherwise expressly agreed in writing by Rodman, no one other than the Company is authorized to
rely upon this Agreement or any other statements or conduct of Rodman, and no one other than the Company is intended to be a beneficiary of this Agreement. The Company acknowledges that any recommendation or advice, written or oral, given by
Rodman to the Company in connection with Rodman’s engagement is intended solely for the benefit and use of the Company’s management and directors in considering a possible Offering, and any such recommendation or advice is not on behalf
of, and shall not confer any rights or remedies upon, any other person or be used or relied upon for any other purpose. Rodman shall not have the authority to make any commitment binding on the Company. The Company, in its sole discretion,
shall have the right to reject any investor introduced to it by Rodman. 
 H. Limitation of Rodman’s Liability to the
Company. Rodman and the Company further agree that neither Rodman nor any of its affiliates or any of its their respective officers, directors, controlling persons (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act), employees or agents shall have any liability to the Company, its security holders or creditors, or any person asserting claims on behalf of or in the right of the Company (whether direct or indirect, in contract, tort, for an act of
negligence or otherwise) for any losses, fees, damages, liabilities, costs, expenses or equitable relief arising out of or relating to this Agreement or the services rendered hereunder, except for losses, fees, damages, liabilities, costs or
expenses that arise out of or are based on any action of or failure to act by Rodman and that are finally judicially determined to have resulted solely from the gross negligence or willful misconduct of Rodman. 

I. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York
applicable to agreements made and to be fully performed therein. Any disputes that arise under this Agreement, even after the termination of this Agreement, will be heard only in the state or 

  
 5 

 
federal courts located in the City of New York, State of New York. The parties hereto expressly agree to submit themselves to the jurisdiction of the foregoing courts in the City of New
York, State of New York. The parties hereto expressly waive any rights they may have to contest the jurisdiction, venue or authority of any court sitting in the City and State of New York. In the event Rodman or any Indemnified Person is
successful in any action, or suit against the Company, arising out of or relating to this Agreement, the final judgment or award entered shall be entitled to have and recover from the Company the costs and expenses incurred in
connection therewith, including its reasonable attorneys’ fees. Any rights to trial by jury with respect to any such action, proceeding or suit are hereby waived by Rodman and the Company.

J. Notices. All notices hereunder will be in writing and sent by certified mail, hand delivery, overnight delivery or e-mail, if
sent to Rodman, at the address set forth on the first page hereof, e-mail: notices@rodm.com, Attention: Head of Investment Banking, and if sent to the Company, to the address set forth on the first page hereof, e-mail:
                    , Attention: Chief Executive Officer. Notices sent by certified mail shall be deemed received five days thereafter, notices
sent by hand delivery or overnight delivery shall be deemed received on the date of the relevant written record of receipt, and notices delivered by e-mail shall be deemed received. 

K. Conflicts. The Company acknowledges that Rodman and its affiliates may have and may continue to have investment banking and
other relationships with parties other than the Company pursuant to which Rodman may acquire information of interest to the Company. Rodman shall have no obligation to disclose such information to the Company or to use such information in connection
with any contemplated transaction. 
 L. Anti-Money Laundering. To help the United States government fight the funding of
terrorism and money laundering, the federal laws of the United States requires all financial institutions to obtain, verify and record information that identifies each person with whom they do business. This means we must ask you for certain
identifying information, including a government-issued identification number (e.g., a U.S. taxpayer identification number) and such other information or documents that we consider appropriate to verify your identity, such as certified articles of
incorporation, a government-issued business license, a partnership agreement or a trust instrument. 
 M. Miscellaneous. The
Company represents and warrants that it has all requisite power and authority to enter into and carry out the terms and provisions of this Agreement and the execution, delivery and performance of this Agreement does not breach or conflict with any
agreement, document or instrument to which it is a party or bound. This Agreement shall not be modified or amended except in writing signed by Rodman and the Company. This Agreement shall be binding upon and inure to the benefit of both
Rodman and the Company and their respective assigns, successors, and legal representatives. This Agreement constitutes the entire agreement of Rodman and the Company with respect to this Offering and supersedes any prior agreements with respect
to the subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such provision in any other respect, and the remainder of the Agreement shall
remain in full force and effect. This Agreement may be executed in counterparts (including facsimile counterparts), each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 

********************* 

  
 6 

 In acknowledgment that the foregoing correctly sets forth the understanding reached by Rodman and
the Company, please sign in the space provided below, whereupon this letter shall constitute a binding Agreement as of the date indicated above. 
  

					
	Very truly yours,
	
	RODMAN & RENSHAW, A UNIT OF H.C. WAINWRIGHT & CO., LLC
		
	By	 	 /s/ Mark W. Viklund

		 	Name:	 	Mark W. Viklund
		 	Title:	 	CEO

  

					
	Accepted and Agreed to:
	
	CYTODYN INC.
		
	By	 	 /s/ Nader Pourhassan

		 	Name:	 	Nader Z. Pourhassan, Ph.D.
		 	Title:	 	President & CEO

  
 7 

  
 

 
 September 8, 2016 

STRICTLY CONFIDENTIAL 
 CytoDyn Inc. 

1111 Main Street 
 Suite 660 

Vancouver, WA 98660 

			
	Attn:	  	Nader Z. Pourhassan, Ph.D.
		  	President and Chief Executive Officer

 Dear Dr. Pourhassan: 

Reference is made to the engagement agreement (the “Engagement Agreement”), dated March 29, 2016, by and between CytoDyn Inc.
(the “Company”) and Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC (“Rodman”). Defined terms used herein but not defined herein shall have the meanings given to such terms in the Engagement
Agreement. 
 1. The Company and Rodman hereby agree to amend and restate the first sentence of Section B of the Engagement Agreement as
follows: 
 “Term and Termination of Engagement; Exclusivity. The term of Rodman’s exclusive engagement will begin
on the date hereof and end on January 16, 2017 (the “Term”).” 
 Except as expressly set forth above, all of the
terms and conditions of the Engagement Agreement shall continue in full force and effect after the execution of this agreement and shall not be in any way changed, modified or superseded by the terms set forth herein. 

This agreement may be executed in two or more counterparts and by facsimile or “.pdf” signature or otherwise, and each of such
counterparts shall be deemed an original and all of such counterparts together shall constitute one and the same agreement. 
 [Remainder
of page intentionally left blank] 
  
  

430 Park Avenue | New York, New York 10022 | 212.356.0500 

Security services provided by H.C. Wainwright & Co., LLC | Member: FINRA/SIPC 

 IN WITNESS WHEREOF, this agreement is executed as of the date first set forth above. 

 

					
	Very truly yours,
	
	RODMAN & RENSHAW, A UNIT OF H.C. WAINWRIGHT & CO., LLC
		
	By	 	 /s/ Mark Viklund

		 	Name:	 	Mark Viklund
		 	Title:	 	Chief Executive Officer

  

					
	Accepted and Agreed:
	
	CYTODYN INC.
		
	By	 	 /s/ Nader Pourhassan

		 	Name:	 	Nader Z. Pourhassan, Ph.D.
		 	Title:	 	President & CEO

 [Signature Page to CYDY Engagement Agreement Amendment]EX-10.4

 Exhibit 10.4 

CONFIDENTIAL TREATMENT 

*** Indicates that text has been omitted which is the subject of a confidential 

treatment request. This text has been separately filed with the SEC. 

 

			
		    	Framework Agreement
		
	dated	    	5 September 2016
		
	between	    	Volkswagen Truck & Bus GmbH
		
		    	Willy-Brand-Platz 19
		    	38102 Braunschweig (Germany)
		
		    	hereinafter: “VW T&B”
		
	and	    	Navistar, Inc.
		
		    	2701 Navistar Drive
		    	Lisle, IL 60532 (United States of America)
		
		    	hereinafter: “Navistar”
		
	concerning	    	Technology Licensing and Supply

 Framework Agreement dated 5 September 2016 

CONFIDENTIAL TREATMENT 

*** Indicates that text has been omitted which is the subject of a confidential 

treatment request. This text has been separately filed with the SEC. 

 

 Table of Contents 

 

									
	Recitals	  	 	3	  
	1	  	Definitions	  	 	3	  
	2	  	Process for the Finalization of Step A Individual Contracts	  	 	7	  
	3	  	Hierarchy of Provisions	  	 	7	  
	4	  	Engines and Technology	  	 	8	  
		  	4.1	  	Step A	  	 	8	  
		  	4.2	  	Step B	  	 	8	  
		  	4.3	  	Step C	  	 	9	  
	5	  	General Provisions	  	 	9	  
		  	5.1	  	Principles regarding the compensation for services rendered under any Individual Contract	  	 	9	  
		  	5.1.1	  	    Currency	  	 	9	  
		  	5.1.2	  	    Adaptation Costs	  	 	9	  
		  	5.1.3	  	    Supply Costs	  	 	10	  
		  	5.1.4	  	    License fees	  	 	10	  
		  	5.1.5	  	    Localization Investments	  	 	11	  
		  	5.2	  	IP Rights	  	 	11	  
		  	5.3	  	Warranties and Defects	  	 	12	  
		  	5.4	  	Indemnification	  	 	13	  
		  	5.5	  	Limitation of Liability	  	 	13	  
		  	5.6	  	Exclusivity	  	 	13	  
		  	5.7	  	Termination of the Individual Contracts	  	 	15	  
		  	5.7.1	  	    Termination by VW T&B of the Individual Contracts	  	 	15	  
		  	5.7.2	  	    Termination by Navistar of the Individual Contracts	  	 	18	  
		  	5.7.3	  	    Effects of Termination of the Individual Contracts	  	 	20	  
		  	5.7.4	  	    Term and Termination of this Agreement	  	 	21	  
		  	5.8	  	Keep Competitive	  	 	21	  
		  	5.9	  	Competition law clearance and closing of SPA	  	 	22	  
		  	5.10	  	Confidentiality	  	 	22	  
		  	5.11	  	Non-Assignment	  	 	22	  
		  	5.12	  	General Provisions	  	 	23	  
		  	5.13	  	Governing Law	  	 	24	  
		  	5.14	  	Arbitration	  	 	24	  
		  	5.15	  	Audit	  	 	25	  

  
 2/26 

 Framework Agreement dated 5 September 2016 

CONFIDENTIAL TREATMENT 

*** Indicates that text has been omitted which is the subject of a confidential 

treatment request. This text has been separately filed with the SEC. 

 

 Recitals 
  

	A)	VW T&B is part of the Volkswagen Group. 

  

	B)	Navistar is a leading American manufacturer of private label commercial trucks, buses, defense vehicles and engines. 

  

	C)	VW T&B and Navistar are aiming at building a strategic alliance with inter alia the objective to become significant participants in the market for commercial vehicles in the member states of the North
American Free Trade Agreement (“NAFTA”). 

  

	D)	In order to meet that objective, VW T&B and Navistar envisage to undertake several measures, one of which concerns the co-operation with regard to certain diesel engines and related technologies so that they comply
with mandatory US regulations including Emissions Requirements and can be utilized in commercial vehicles manufactured by Navistar. In this regard, VW T&B will provide Navistar access to certain diesel engine technologies of the VW T&B
Group. 

  

	E)	VW T&B intends, through its VW T&B Affiliates, to supply Navistar *** with certain types of diesel engines (including parts thereof) and related technologies *** it being understood that *** to be mutually
developed and agreed by the Parties. 

  

	F)	In addition, VW T&B and Navistar intend to conduct further feasibility studies in order to assess the utilization of additional diesel engines and related technologies. 

 

	G)	Finally, VW T&B and Navistar intend to discuss possibilities of co-operation in several other technologies, including for instance driver assistance systems, autonomous driving, cab and chassis components, etc.

 Therefore, VW T&B and Navistar agree as follows: 

 

	1	Definitions 

 In this Agreement, the following expressions shall have the following
meanings: 
  

			
	Adaptation	  	any modification of engines, *** and related technologies (1) required to meet homologation needs for the benefit of Navistar or (2) specifically requested by Navistar, in each case in accordance with the relevant Individual
Contract

  
 3/26 

 Framework Agreement dated 5 September 2016 

CONFIDENTIAL TREATMENT 

*** Indicates that text has been omitted which is the subject of a confidential 

treatment request. This text has been separately filed with the SEC. 

 

			
		
	Adaptation Costs	  	costs (including a mark-up) that are mutually agreed by the Parties prior to being incurred and required to adjust engines, *** and related technologies of the VW T&B Group to the needs of Navistar and/or US
legislation
		
	Affiliates	  	Navistar’s and/or VW T&B’s Affiliates
		
	Navistar’s Affiliates	  	means any entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, Navistar. For purposes of this Agreement, the term “control” when used with
respect to any entity means the power to direct the management and policies of such entity, directly or indirectly, whether through the ownership of voting securities, by intercompany agreements such as domination agreements, or otherwise; and the
terms “Affiliated”, “controlling”, and “controlled” have the meanings correlative to the foregoing.
		
	VW T&B’s Affiliates	  	MAN, Scania and ML
		
	VW T&B’s Affiliate	  	MAN, Scania or ML
		
	Agreement	  	this framework agreement
		
	Annex	  	an annex to this Agreement
		
	Best Efforts	  	means, with respect to a given goal, the efforts that a reasonable person in the position of the obliged party would use in good faith so as to achieve that goal as expeditiously as possible, provided, however, that the
obligation to use Best Efforts does not require the obliged party to take any actions that cause unreasonable disadvantages to that party
		
	***	  	***
		
	***	  	***
		
	***	  	has the meaning ascribed to it in Section 5.7.1.1
		
	Emissions Requirements	  	means (a) the applicable emission standards and/or regulations as established by the United States Environmental Protection Agency, the California Air Resources Board and/or Environment Canada and (b) such other regulatory
requirements related to emissions compliance applicable in the NAFTA countries.

  
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	Engines	  	has the meaning ascribed to it in Section 4.1
		
	Existing Contract	  	***
		
	Fundamental Change	  	with respect to each Individual Contract, means any change, event or circumstance outside the control of the Parties, such as a material change in the regulatory environment or in Emissions Requirements, that is not reasonably
foreseeable as of the date of this Agreement and that has a significant and adverse impact on the commercial viability of the Engines or Technologies that is the subject matter of such Individual Contract in the United States
		
	Individual Contract(s)	  	License Agreement(s) and/or Supply Agreement(s) to be entered in accordance with this Agreement
		
	IP Rights	  	all intellectual property rights in the Engines and Technology, including (but not limited to) know-how, copyright, design rights, database rights, trademarks, trade names, domain names and patent rights, in each case, whether or
not registered and any applications for the protection or registration of these rights and all renewals and extensions thereof anywhere in the world
		
	License Agreement(s)	  	the agreements entered into in accordance with this Agreement in connection with the licensing of the IP Rights
		
	Localization	  	manufacturing and assembly of certain Engines and related Technologies of the VW T&B Group in Navistar’s facilities, including the facilities of Navistar’s Affiliates
		
	Localization Investments	  	Investments made by Navistar required in the context of Localization
		
	MAN	  	MAN SE and/or MAN Truck & Bus AG, as the case may be

  
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	ML	  	MAN Latin America Indústria e Comércio de Veículos Ltda.
		
	Material Breach	  	except as otherwise agreed in any Individual Contract, a failure of performance of an obligation under an Individual Contract which in good faith can be deemed to be significant enough to give the aggrieved party the right to
make use of the respective rights provided for in this Agreement and under applicable law. A minor divergence from the terms of this Agreement shall not constitute a Material Breach.
		
	NAFTA	  	means the United States of America, Canada and Mexico
		
	***	  	***
		
	Parties	  	VW T&B and Navistar
		
	Party	  	VW T&B or Navistar
		
	Scania	  	Scania AB (publ) and/or Scania CV AB (publ) as the case may be
		
	Section	  	a section of this Agreement
		
	Supply Costs	  	has the meaning ascribed to it in Section 5.1.3
		
	Supply Agreement(s)	  	the agreements entered into between the VW T&B’s Affiliates on the one hand and Navistar on the other hand regarding the provision of certain Engines and Technologies set forth in Section 4.1
		
	***	  	***
		
	Technology(ies)	  	has the meaning ascribed to it in Section 4.1
		
	Upgrade	  	means upgrades to be mutually defined and agreed by the Parties and related to engine performance or regulatory upgrade ***.
		
	VW T&B Group	  	VW T&B, MAN, ML and Scania

  
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	2	Process for the Finalization of Step A Individual Contracts 

 The Parties commit to
enter, or to procure that their relevant Affiliates enter, into Individual Contracts as further defined in Section 4.1 in accordance with the terms and conditions set out in this Agreement and established industry practices, in each case as
required to achieve the purpose of the co-operation as laid out in this Agreement, unless the relevant parties fail in the course of good faith negotiations to reach an agreement in relation to any material term or condition in respect of any
Individual Contract which is not addressed or sufficiently specified in this Agreement in relation to which in the view of any of the Parties, acting in good faith, an agreement must be reached in any Individual Contract to protect its legitimate
interests and which cannot be resolved by escalating the issue to the Chief Executive Officers of the Parties as set out below. 
 The
Parties shall or shall procure that their relevant Affiliates use Best Efforts to negotiate and execute the Individual Contracts in accordance with the foregoing principles prior to the applicable ***, and with respect to the Individual Contracts
described in Sections 4.1*** to 4.1***, the Parties shall also use as a guideline the Individual Contract entered into pursuant to Section 4.1(a) (to the extent it does not conflict with terms explicitly agreed to by the Parties and the terms
of this Agreement). The Parties will appoint a joint working team following the execution of this Agreement in order to finalize the terms of each Individual Contract described in Section 4.1 as soon as practicable and in any case no later than
the applicable ***. If any term of an Individual Contract is not agreed by the joint working team, either Party may refer such term to the Chief Executive Officers of the Parties for resolution. 

Notwithstanding the foregoing, if a Fundamental Change occurs with respect to an Individual Contract before the earlier of the execution of
such Individual Contract and the *** for such Individual Contract, either Party may elect to terminate this Agreement only with respect to the affected Individual Contract without any liability in respect of such termination. 

The Parties further agree that in principle the validity and binding nature of each Individual Contract shall be independent of the validity
and binding nature of other Individual Contracts. 
  

	3	Hierarchy of Provisions 

 In the event of any conflict between the Agreement and an
Individual Contract (once an Individual Contract takes effect), the respective provisions of the Individual Contract shall prevail with respect to the subject matter thereof. 

  
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	4	Engines and Technology 

  

	4.1	Step A 

 The Individual Contracts shall cover the following types of diesel engines and
products: *** in each case including components (collectively, the “Engines”) and the related technologies, *** (collectively, the “Technologies”): 
  

	 	a)	*** 

  

	 	*** 

 The Parties and their Affiliates will engage in joint capacity planning to ensure that the
requirements of VW T&B, Navistar and their respective Affiliates with regard to both the supply of the Engines and Technologies as well as the licensing of the IP Rights related thereto, will be met. 

 

	4.2	Step B 

 The Parties further agree to conduct the following feasibility studies within a
reasonable period of time following the execution of this Agreement: 
  

	 	•	 	feasibility study in order to investigate whether ***; 

  

	 	•	 	feasibility study in order to investigate whether ***; and 

  

	 	•	 	feasibility study in order to investigate whether ***. 

 The purpose of the feasibility studies
shall be to verify and analyze the suitability of the Technology in respect to the needs of the Parties. The outcome of the feasibility studies do not trigger any right or obligation of any Party to enter into further Individual Contracts. 

If and as far as reasonably required and useful, the Parties and their respective Affiliates will set out the details of the feasibility
studies and their respective rights and obligations in individual agreements governing the relevant feasibility study (e.g., non-disclosure agreements). 

  
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	4.3	Step C 

 The Parties agree, once it becomes relevant, to start good faith discussions on
a collaboration regarding the following ***/technology: 
 *** 
  

	 	•	 	Advanced Driver Assistance Systems (ADAS)/autonomous driving systems including hardware and/or software; 

  

	 	•	 	“Connected vehicle” solutions including hardware and/or software; 

  

	 	•	 	Selected cabin and chassis components ***; 

  

	 	•	 	CO2 reduction/fuel efficiency technologies (e.g. engine idle stop, high efficiency compressor, electric water pump) as well as alternative drive train technologies (hybrid / electric drive trains, batteries, etc.);
and/or 

 ***. 
  

	5	General Provisions 

  

	5.1	Principles regarding the compensation for services rendered under any Individual Contract 

  

	5.1.1	Currency 

 All compensations under the Individual Contracts are to be paid in EUR, free
of remittance costs, currency conversion costs, or any other bank charges or costs for VW T&B. 
  

	5.1.2	Adaptation Costs 

 All Adaptation Costs are to be borne by Navistar. They will be paid
through amortization payments for each Engine (including components) over defined periods and volumes to be agreed by the VW T&B Affiliate and Navistar in the respective Individual Contracts (i.e. no upfront payments). 

The respective volume targets may be revised by Navistar after a period of *** from the start of production of the products covered by the
respective Individual Contract (“Reset”). The Reset will only apply once for each Individual Contract. After the expiration of an additional *** period, a lump-sum payment shall be immediately and automatically due in order to fully cover
VW T&B Group’s Adaptation Costs (following such payment, Navistar’s license to all Adaptations covered by the respective Individual Contract shall be fully paid up). In any event, at termination (other than termination by VW T&B

  
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for convenience, in which case the payment schedule contemplated by this Section 5.1.2 shall not be amended) or expiry of the respective Individual Contract, all unpaid Adaptation Costs
shall be immediately and automatically due and paid in full to VW T&B Group. 
 The above applies to all Individual Contracts that are
concluded in accordance with Section 4.1 above. For any other potential future components the Parties will be free to determine another manner of payment of the respective Adaptation Costs (for instance upfront payment, full amortization or a
mix of partial upfront payment and partial amortization). 
  

	5.1.3	Supply Costs 

 Regarding the supply costs, the Individual Contracts shall be based on a
“cost plus principle” ***. 
 The cost base for the calculation of the supply costs shall be *** as reasonably calculated by VW
T&B. ***. 
 The estimated warranty costs as mutually agreed will be part of the cost base and not part of the mark-up. 

The mark-up level will in general be ***. In general, ***. 

The above mark-up range of *** shall apply to the products described in Section 4.1 above. The supply costs for other products referred to
in Section 4.2 and Section 4.3 above shall be discussed by the Parties in due course. 
  

	5.1.4	License fees 

 The obligation to pay license fees under each License Agreement will
commence at *** (no upfront payments shall be due) and shall end upon the earlier of (i) *** after such start time, and (ii) expiry or termination of the respective License Agreement. If Navistar at any time intends to localize any of the
Engines in any country outside of NAFTA, Navistar must obtain VW T&B’s consent (not to be unreasonably withheld) prior to such Localization and the Parties may agree to license fees (and term thereof) in respect of such Localization. 

The license fees to be paid under a License Agreement shall amount to between *** of VW T&B Group’s confirmed product concept and
target costs, provided that the Parties shall strive for the license fee for ***. Such confirmed product 

  
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concept and target costs shall be mutually agreed by the Parties in each License Agreement, and may include *** (for the avoidance of doubt, Adaptation Costs and Localization Investments are not
included in the license fees and shall be paid to VW T&B or borne by Navistar, as applicable, separately). 
 The duration of the License
Agreements ***, provided that each License Agreement shall be terminable in accordance with Section 5.7.1 or Section 5.7.2 and the licenses granted to Navistar thereunder shall survive until the end of the applicable transition period,
provided further, that if any License Agreement is terminated in accordance with Section 5.7.1.2 or Section 5.7.2.3, the licenses granted to Navistar thereunder shall survive ***. In the event of any Upgrade of the relevant Technology, the
Parties may agree to renew the license fees (beyond the *** term set forth above) under terms and conditions to be mutually agreed under the respective License Agreement for a period and under terms and conditions to be mutually agreed, and Navistar
shall only obtain a license with respect to such Upgrades that have become subject to such an agreement between the Parties. 
 Regarding
design defects in the Technologies licensed, calculation of anticipated warranty liability by VW T&B and its Affiliates under the respective License Agreements will be jointly studied by VW T&B and Navistar, and the Parties will include a
compensation mechanism with respect thereto in the Individual Contract(s). 
  

	5.1.5	Localization Investments 

 All applicable Localization Investments shall be borne by
Navistar. 
  

	5.2	IP Rights 

 Under each License Agreement, VW T&B and its Affiliates will grant to
Navistar and its Affiliates a *** (only as set forth in Section 5.1.4), non-transferable and non-assignable license, to use and otherwise exploit the Technology solely to Adapt, Localize, make, have made, and sell and otherwise commercialize
the Engine(s), *** and other supplies covered by the relevant Individual Contract. The license will be exclusive (even as to VW T&B and its Affiliates) within the scope of Section 5.6, and non-exclusive ***; provided that the license shall
not cover any country in Europe. 
 The Individual Contracts shall provide that any new IP Rights resulting from and relating to Adaptations
will be, as far as they are transferable, transferred automatically to ***, and *** will grant to *** a non-exclusive, ***, non-transferable and non-assignable license for such IP Rights for use ***.

  
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The license to *** will ***, provided that each License Agreement shall be terminable in accordance with Section 5.7.1 or Section 5.7.2, provided further, that if any License Agreement
is terminated in accordance with Section 5.7.1.3 or section 5.7.2.2, the licenses granted to *** thereunder shall survive ***. 
 During
the amortization period, VW T&B and its Affiliates shall grant to Navistar and its Affiliates a ***, exclusive, non-transferable and non-assignable license for use in a NAFTA country of the new IP Rights resulting from and relating to
Adaptations. Any other IP Rights, including for instance but not limited to the IP Rights in the underlying base Technology, shall remain with the VW T&B Group (subject to the licenses granted to Navistar and its Affiliates). 

Notwithstanding the foregoing, the licences to be granted in accordance with the above under any Individual Contract shall not include any
licence with respect to any IP Rights of VW T&B or its Affiliates with respect to NAFTA (“NAFTA IP Licences”) to any Affiliates of Navistar that are incorporated in any country outside of NAFTA and, for the avoidance of doubt,
no licence granted thereunder shall be read or interpreted in any way that would allow use or exploitation (by transfer or assignment or otherwise) of such NAFTA IP Licences under such Individual Contract by any Affiliate of Navistar located outside
of NAFTA; provided that the foregoing will not limit or prevent Navistar or any of its Affiliates from ***. 
  

	5.3	Warranties and Defects 

 Under the Individual Contracts, the VW T&B’s Affiliates
shall grant customary representations and warranties that a) the licensed Technology and b) the supplied Engines (including components) will: 
  

	 	a)	licensed Technology 

  

	 	•	 	comply with the specifications (including design) to be agreed in the Individual Contracts; and 

  
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	 	•	 	not infringe any intellectual property or other proprietary rights of any third party. 

  

	 	b)	supplied Engines, *** and components 

  

	 	•	 	comply with the specifications to be agreed in the Individual Contracts; 

  

	 	•	 	perform in accordance with the specifications and/or is free of any errors or other defect restricting or otherwise impacting its use (in particular design defects and manufacturing defects); and 

 

	 	•	 	not infringe any intellectual property or other proprietary rights of any third party. 

 Under
the Supply Agreements the warranty period for the above warranties shall be for a duration that satisfies Navistar’s customer requirements and in compliance with mandatory Emissions Requirements. 

The Parties will include in each Individual Contract additional appropriate warranty and defect provisions, including with respect to warranty
duration, in accordance with their well-established business practices. 
  

	5.4	Indemnification 

 The Parties will implement in the Individual Contracts appropriate
indemnity clauses, including customary provisions with regard to safety recalls and field campaigns, in accordance with their well-established business practice. 
  

	5.5	Limitation of Liability 

 To the extent permitted by law, the liability of the Parties
and their Affiliates for violations of the Individual Contracts shall be restricted to an amount to be agreed in each Individual Contract. 

The above liability cap will not apply to claims based on (a) fraud, willful misconduct or gross-negligence, (b) breaches of
exclusivity obligations under any Individual Contract or (c) indemnification for ***. 
  

	5.6	Exclusivity 

 Subject to the commercial negotiation of any Individual Contract and
governing antitrust and competition laws, VW T&B and its Affiliates intend to license and sell the Engines and Technology described in Section 4.1 to Navistar and its Affiliates within any NAFTA country for use in *** of Navistar or any of
its Affiliates. VW T&B and its Affiliates intend to agree in each Individual Contract not to: 

  
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	 	(i)	supply any Engine or Technology described in Section 4.1 to *** in NAFTA; 

  

	 	(ii)	grant any license with respect to any Engine or Technology described in Section 4.1 to *** in Nafta; and 

  

	 	(iii)	use any Engine or Technology described in Section 4.1 for the business of VW T&B and Affiliates for *** in NAFTA; 

provided in each case that any existing business of VW T&B and its Affiliates as of the date of this Agreement that is set forth on Annex
I hereto shall remain unrestricted. 
 With respect to any country outside NAFTA, the Parties agree to collaborate in good faith on other
provisions to be included in applicable Individual Contracts, provided that (i) there shall be no restriction on VW T&B’s rights or ability to license or sell any Engines or Technology in any such country, and (ii) Navistar and
its Affiliates shall be permitted to use, distribute, manufacture and sell products that incorporate the Engines and/or use the Technologies described in Section 4.1 to all countries in which Navistar and its Affiliates are permitted to Deploy
(as defined in the Existing Contract) such Engines and Technologies under the Existing Contract. 
 In the case of any termination of an
Individual Contract by either Party (except in case of a termination of an Individual Contract by VW T&B or its respective Affiliate for change of control in Navistar pursuant to Section 5.7.1.1 or of any Individual Contract due to material
breach by Navistar pursuant to Section 5.7.1.3, in which case the above mentioned intended exclusivity obligations in respect of such Individual Contract shall immediately cease upon VW T&B or its respective Affiliate giving notice of
termination), any of the above mentioned intended exclusivity obligations of VW T&B set forth in such Individual Contract shall end *** following the date of the notice of termination provided however, that the exclusivity shall under no
circumstances exceed the respective transition period which applies to the respective termination right. 
 Any of the intended exclusivity
obligations set out in this Section expire in respect of each Individual Contract if ***. 

  
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	5.7	Termination of the Individual Contracts 

  

	5.7.1	Termination by VW T&B of the Individual Contracts 

  

	5.7.1.1	Navistar Change of Control 

 A Navistar change of control event (“Navistar Change of
Control Event”) occurs (i) if any person / entity group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof) (except VW T&B and
its Affiliates) holds or acquires directly or indirectly at least 35% of the shares in Navistar International Corporation or (ii) if Navistar International Corporation (x) divests all or substantial portions of its truck and bus assets or
(y) sells such substantial portions to a competitor of the VW T&B Group (e.g. transaction with *** or ***), it being understood that for purposes of determining whether a Navistar Change of Control Event has occurred, ***. Substantial
portions is being understood as divestitures reasonably expected to effect a loss in market shares by Navistar International Corporation in the relevant markets in the NAFTA-region in the amount of *** of the then-current market share in the total
bus and truck market. 
 In case of a Navistar Change of Control Event, Navistar shall inform immediately VW T&B, by notice in writing
that such an event has occurred. VW T&B has to notify Navistar within *** upon receipt of the written notice whether or not VW T&B wishes to make use of any of the rights set out in this Section 5.7.1. 

In case of a Navistar Change of Control Event, VW T&B and its Affiliates shall have the right to terminate this Agreement and any
Individual Contract with the following effects: 

  
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	 	•	 	If the Navistar Change of Control Event occurs within the *** as of execution of an Individual Contract, VW T&B and its Affiliates shall have the right to terminate such Individual Contract ***. 

 

	 	•	 	If the Navistar Change of Control Event occurs after *** but prior to *** as of execution of an Individual Contract, VW T&B and its Affiliates shall have the right to terminate such Individual Contract after
expiration of a transition period of ***. 

  

	 	•	 	If the Navistar Change of Control Event occurs after *** as of execution of an Individual Contract, VW T&B and its Affiliates shall have the right to terminate such Individual Contract after expiration of a
transition period of ***. 

  

	 	•	 	In case of a Navistar Change of Control Event prior to the start of production of ***, the cooperation between the Parties in respect of *** (or an equivalent product) ***. 

 

	 	•	 	For the avoidance of doubt, all or any portion of the subsequent supply and license period described in this section shall be at *** option. 

During any transition period, VW T&B and its Affiliates shall bear upgrade and development responsibility such that its products, when
supplied to Navistar, comply with applicable laws and regulation and reflect upgrades in technology, provided Navistar or its respective Affiliate pays any costs incurred by VW T&B and its Affiliates (which shall be reviewed by Navistar prior to
incurrence, and if Navistar does not agree to pay such costs, VW T&B’s obligations in respect of such upgrade shall be discharged) for such upgrades and developments upfront. 

 

	5.7.1.2	Convenience by VW T&B 

 Upon written notice to Navistar, VW T&B and its
Affiliates shall have the right to terminate any Individual Contract after expiration of a notice period of *** with the following effects: 
  

	 	•	 	If the termination occurs within *** after the latest change of applicable Emissions Requirements has become effective, the termination shall become effective following *** of subsequent supply and license on the same
terms following the *** notice period (it being understood that all or any portion of the subsequent supply and license period shall be at *** option), as set forth in the respective Individual Contracts. 

 

	 	•	 	If the termination occurs *** after the latest change of Emissions Requirements has become effective, the termination shall become effective following *** of subsequent supply and license on the same terms following the
*** notice period (it being understood that all or any portion of the subsequent supply and license period shall be at *** option), as set forth in the respective Individual Contracts. 

  
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 During any transition period, VW T&B and its Affiliates shall bear upgrade and
development responsibility such that its products, when supplied to Navistar, comply with applicable laws and regulations and reflect upgrades in technology, provided Navistar or its respective Affiliate pays any costs incurred by VW T&B and its
Affiliates (which shall be reviewed by Navistar prior to incurrence, and if Navistar does not agree to pay such costs, VW T&B’s obligations in respect of such upgrade shall be discharged) for such upgrades and developments in accordance
with the payment schedule contemplated by Section 5.1.2. 
  

	5.7.1.3	Material Breach by Navistar 

 In case of a Material Breach by Navistar, VW T&B shall
inform Navistar by notice in writing and request Navistar and/or its Affiliates to cure the breach. 
 Unless otherwise agreed by the Parties
in an Individual Contract, in case of a Material Breach of any of the Individual Contracts by Navistar or its Affiliates that remains uncured following notice and a reasonable opportunity to cure for 

 

	 	•	 	*** if the Material Breach is payment-related; or 

  

	 	•	 	*** if the Material Breach is related to technical issues, 

 VW T&B and its Affiliates shall
have the right to terminate the Individual Contract under which the Material Breach occurred, with the following effects: 
  

	 	•	 	If the Material Breach occurs within *** as of execution of such Individual Contract, VW T&B and its Affiliates shall have the right to terminate the Individual Contract ***. 

 

	 	•	 	If the Material Breach occurs after *** but prior to *** as of the execution of such Individual Contract, VW T&B and its Affiliates shall have the right to terminate the Individual Contract after expiration of a
transition period of ***. 

  

	 	•	 	If the Material Breach occurs after *** as of execution of such Individual Contract, VW T&B and its Affiliates shall have the right to terminate the Individual Contract after expiration of a transition period of ***
in respect of Engines and Technology. 

  

	 	•	 	For the avoidance of doubt, all or any portion of the subsequent supply and license period described in this section shall be at *** option. 

During any transition period, VW T&B and its Affiliates shall bear upgrade and development responsibility such that its products, when
supplied to Navistar, comply with applicable laws and regulations and reflect upgrades in technology, 

  
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provided Navistar or its respective Affiliate pays upfront any costs incurred by VW T&B and its Affiliates (which shall be reviewed by Navistar prior to incurrence, and if Navistar does not
agree to pay such costs, VW T&B’s obligations in respect of such upgrade shall be discharged) for such upgrades and developments. 

VW T&B and its Affiliates shall have the right to refuse the supply of Engines and the licensing of Technology under an Individual Contract
and the undertaking of any upgrade and development work if Navistar is in default with regard to substantial undisputed payments due under such Individual Contract. The non-payment of an amount to be agreed upon in the respective Individual
Contracts for a period of *** under an Individual Contract, following notice to Navistar and an opportunity to cure, is considered to be a material breach giving VW T&B and its Affiliates the right to terminate such Individual Contracts
immediately. 
  

	5.7.2	Termination by Navistar of the Individual Contracts 

  

	5.7.2.1	Change of Control VW T&B 

 A VW T&B change of control event (“VW T&B
Change of Control Event”) occurs: 
  

	 	•	 	if VW T&B (i) divests all or substantial portions of its truck and bus assets or (ii) sells such substantial portions to a direct competitor of Navistar in N.A. (e.g., sale of Scania or MAN, sale of
substantial portion of product portfolio, transaction with *** or ***). Substantial portions is being understood as divestitures reasonably expected to effect a loss in market shares by VW T&B in the relevant markets in Western Europe in the
amount of *** of the then-current market share in the total bus and truck market. 

  

	 	•	 	in case of a substantial change in investment or *** that may have a negative impact on the cooperation (e.g., outsourcing of substantial portion of development and/or manufacturing); or 

 

	 	•	 	if a substantial change in current strategy of truck and bus unit in the NAFTA region that may have a negative impact on the cooperation (e.g., public announcement reversing desire to expand in N.A.) is publicly
announced, or if VW T&B has taken significant actions to effect such a substantial change in current strategy notwithstanding the lack of a public announcement. 

In case of a VW T&B Change of Control Event, VW T&B shall inform immediately Navistar, by notice in writing that such an event has
occurred. Navistar has to notify VW T&B within *** upon receipt of the written notice whether or not Navistar wishes to make use of any of the rights set out in this Section 5.7.2. 

  
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 In case of a VW T&B Change of Control Event, Navistar and its Affiliates shall have the
right to terminate this Agreement and an Individual Contract with the following effects: 
  

	 	•	 	If the VW T&B Change of Control Event occurs within *** as of execution of an Individual Contract, Navistar and its Affiliates shall have the right to terminate such Individual Contract at their sole discretion
either *** (in which case the exclusivity as granted in accordance with clause 5.6 hereof shall cease ***) or with a transition period of *** (in which case the exclusivity as granted in accordance with clause 5.6 hereof shall continue ***).

  

	 	•	 	If the VW T&B Change of Control Event occurs after *** but prior to *** as of execution of an Individual Contract, Navistar and its Affiliates shall have the right to terminate such Individual Contract after
expiration of a transition period of ***. 

  

	 	•	 	If the VW T&B Change of Control Event occurs after *** as of execution of an Individual Contract, Navistar and its Affiliates shall have the right to terminate such Individual Contract after expiration of a
transition period of *** in respect of Engines and Technology. 

  

	 	•	 	For the avoidance of doubt, all or any portion of the subsequent supply and license period described in this section shall be at *** option. 

During any transition period, VW T&B and its Affiliates shall bear upgrade and development responsibility such that its products, when
supplied to Navistar, comply with applicable laws and regulations and reflect upgrades in technology, provided Navistar or its respective Affiliate pays upfront any costs incurred by VW T&B and its Affiliates (which shall be reviewed by Navistar
prior to incurrence, and if Navistar does not agree to pay such costs, VW T&B’s obligations in respect of such upgrade shall be discharged) for such upgrades and developments. 

 

	5.7.2.2	Convenience by Navistar 

 Upon written notice to VW T&B, Navistar and its Affiliates
shall have the right to terminate an Individual Contract Agreement after expiration of a notice period of *** with the following effects: 
  

	 	•	 	If the termination occurs within *** after the latest change of applicable Emissions Requirements has become effective, the termination shall become effective following *** of subsequent supply and license on the same
terms following the *** notice period (it being understood that all or any portion of the subsequent supply and license period shall be at *** option), as set forth in the respective Individual Contracts. 

  
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	 	•	 	If the termination occurs more than *** after the latest change of Emissions Requirements has become effective, the termination shall become effective following *** of subsequent supply and license on the same terms
following the *** notice period (it being understood that all or any portion of the subsequent supply and license period shall be at *** option), as set forth in the respective Individual Contracts. 

 

	5.7.2.3	Material breach by VW T&B 

 In case of a Material Breach by VW T&B, Navistar
shall inform VW T&B by notice in writing and request VW T&B and/or its Affiliates to cure the breach. 
 In case of a Material Breach
of any of the Individual Contracts by VW T&B that remains uncured after notice and a reasonable opportunity to cure for ***, Navistar and its Affiliates shall have the right to terminate the Individual Contract under which the Material Breach
occurred with the following effects: 
  

	 	•	 	If the termination occurs within *** after the latest change of applicable Emissions Requirements has become effective, the termination shall become effective following *** of subsequent supply and license on the same
terms following the *** notice period (it being understood that all or any portion of the subsequent supply and license period shall be at *** option), as set forth in the respective Individual Contracts. 

 

	 	•	 	If the termination occurs more than *** after the latest change of Emissions Requirements has become effective, the termination shall become effective following *** of subsequent supply and license on the same terms
following the *** notice period (it being understood that all or any portion of the subsequent supply and license period shall be at *** option), as set forth in the respective Individual Contracts. 

 

	 	•	 	For the avoidance of doubt, all or any portion of the subsequent supply and license period described in this section shall be at *** option. 

During any transition period, VW T&B and its Affiliates shall bear upgrade and development responsibility such that its products, when
supplied to Navistar, comply with applicable laws and regulations and reflect upgrades in technology, provided Navistar or its respective Affiliate pays upfront any costs incurred by VW T&B and its Affiliates (which shall be reviewed by Navistar
prior to incurrence, and if Navistar does not agree to pay such costs, VW T&B’s obligations in respect of such upgrade shall be discharged) for such upgrades and developments. 

 

	5.7.3	Effects of Termination of the Individual Contracts 

 Upon termination of one or more
Individual Contracts, any and all IP Rights under the terminated Individual Contracts shall, as far as re-transferable, return in full to VW T&B; in any event, Navistar shall not be entitled to continue any use of any IP Right, ***. 

  
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 In any event of termination of an Individual Contract a transition period of 10 years shall
apply in respect of spare parts. 
 Further effects of termination of an Individual Contract shall be implemented and specified by the
Parties in the Individual Contracts. 
  

	5.7.4	Term and Termination of this Agreement 

 This Agreement is concluded for an unlimited
period of time. It shall automatically expire upon the execution of all Individual Contracts required by Section 4.1 and completion or abandonment of the feasibility studies and/or discussions of the items provided in Section 4.2 and
Section 4.3, provided that upon the execution of any Individual Contract, the terms of such Individual Contract shall supersede the provisions in this Agreement related to the Engines, *** and components and Technologies covered by such
Individual Contract. Subject to Section 5.9, this Agreement may be terminated by either Party with *** notice, provided such notice may not be given by either Party prior to ***. 

 

	5.8	Keep Competitive 

 Without affecting the upgrade obligations in respect of compliance
with Emissions Requirements set forth in Section 5.7 above, each Individual Contract shall contain a “keep competitive” provision that is consistent with the below: 

 

	 	(A)	VW T&B will, for the duration of any Individual Contract (but not during any transition period), provide to Navistar to the extent possible on financially reasonable terms ***. 

 

	 	(B)	 The Parties (or the relevant Affiliates) will mutually agree on an action plan to cure any material deficiencies
in competitiveness compared to engines marketed in the NAFTA region by competitors as reasonably identified by Navistar. If such action plan does not adequately correct the deficiencies in any Engines, *** and related components, Navistar may
exclude the non-competitive products from the applicable Individual Contract or terminate the applicable Individual Contract without any liability for VW T&B or any of its 

  
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Affiliates. If such action plan does not adequately correct the deficiencies in Technologies covered by an Individual Contract, the Parties (or the relevant Affiliates) shall negotiate a reduced
license fee. 

  

	5.9	Competition law clearance and closing of SPA 

 This Agreement and any Individual Contract
shall be terminated upon the termination of the Stock Purchase Agreement in accordance with its terms, and the Parties hereto shall not have any liability other than liability that has accrued prior to such termination. 

This agreement shall become effective upon all competition law consents and authorizations, in form and substance satisfactory to the Parties,
as well as all necessary governmental or regulatory approvals as may be required have been obtained and all required filings, notifications or requests with relevant competition, merger control or other relevant competent authorities have been made
and if any filing, notification or request for governmental approval is required under any applicable law or regulation, any applicable waiting period shall have expired or any required approval thereunder shall have been received in form and
substance satisfactory to the Parties. 
  

	5.10	Confidentiality 

 The initial announcement regarding this Agreement shall be press
releases by each Party as preagreed between the Parties. The Parties shall consult with each other prior to issuing any further press releases or otherwise making public announcements with respect to this Agreement. and prior to making any filings
with any third party and/or any governmental entity with respect thereto, except as may be required by law or by obligations pursuant to any listing agreement with or rules of any national securities exchange or interdealer quotation service or by
the request of any governmental entity. 
 Without limiting the foregoing the content of this Agreement shall be treated confidential, in
accordance and in full compliance with the Confidentiality Agreement of 17 March 2016. 
  

	5.11	Non-Assignment 

 Without limiting Sections 5.7.1.1 and 5.7.2.1, neither this Agreement,
any Individual Contract, nor any rights or obligations hereunder or thereunder may be assigned or otherwise transferred by either Party, in whole or in part, whether voluntarily or by operation of law, without the prior written consent of the other
Party; provided that either Party may, without the consent of the other Party, assign this Agreement or any Individual Contract in its entirety to any of such Party’s Affiliates. For the avoidance of doubt, and notwithstanding anything in this
Agreement or any Individual Contract to the contrary, in recognition of the unique nature of the relationship between the Parties, the Parties acknowledge and 

  
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agree that the rights, obligations and benefits of this Agreement and each Individual Contract shall be personal to Navistar and its Affiliates, and VW T&B shall not be required to accept
performance from, or render performance to, any person or entity other than Navistar and its Affiliates. Pursuant to 11 U.S.C. Section 365(c)(1)(A) (as it may be amended from time to time, and including any successor to such provision), in the
event of any Bankruptcy of Navistar International Corporation, Navistar or any of its Affiliates that are party to any Individual Contract, this Agreement and any such Individual Contract may not be assigned or assumed by Navistar or any of its
Affiliates (or any of its or their respective successors, including any trustee or debtor-in-possession) and VW T&B shall be excused from rendering performance to, or accepting performance from, Navistar and its Affiliates or any such
successors. Additionally, in the event of any Bankruptcy of any Affiliate of Navistar that is not party to any Individual Contract but that has otherwise been granted rights to any IP Rights under any Individual Contract, this Agreement and any such
Individual Contract may not be assigned or assumed by any such Affiliate or any of its subsidiaries (or any of its or their respective successors, including any trustee or debtor-in-possession) and VW T&B shall be excused from rendering
performance to, or accepting performance from, such Affiliate and its subsidiaries or any such successors. Any purported assumption or assignment in contravention of this Section 5.11 shall be null and void. 

“Bankruptcy” means, with respect to any person or entity, (i) the filing by such person or entity of a voluntary petition
seeking liquidation, dissolution, reorganization, rearrangement or readjustment, in any form, of its debts, under the United States Bankruptcy Code (or corresponding provisions of future laws) or any other bankruptcy or insolvency law, or such
person’s or entity’s filing an answer consenting to, or failing to oppose in any such petition; (ii) the making by such person or entity of an assignment of all or a material portion of its assets for the benefit of its creditors;
(iii) an application for the appointment of a receiver for the assets of such person or entity, or an involuntary petition seeking liquidation, dissolution, reorganization, rearrangement or readjustment of its debts or similar relief under any
bankruptcy or insolvency law, in the event of such an application by a third party or such an involuntary petition, that is not dismissed within 60 days of the filing thereof; or (iv) the entry of an order for relief against such person or
entity under the United States Bankruptcy Code. 
  

	5.12	General Provisions 

 Except as otherwise set forth in this Agreement, each Party shall
pay its own cost and expenses (including also legal, accounting and other adviser’s fees) relating to this Agreement. 
 This Agreement
constitutes the entire understanding among the Parties with respect to the subject matter hereof, superseding all negotiations, prior discussions and preliminary agreements, it being understood that this Agreement does not supersede the Stock
Purchase Agreement, the Shareholder Agreement, the Procurement JV Framework Agreement, 

  
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and the Delaware General Corporation Law Section 203 Agreement. 
 This Agreement
shall not be amended or modified except by a document in writing duly executed by the Parties hereto. This undertaking itself may only be modified by an agreement in writing. 

The waiver of any provision of this Agreement by any Party hereto shall not be deemed a waiver of any other provision hereof, and no waiver
shall be effective unless such waiver is expressly made in writing to the Party claiming the benefit thereof. 
 Should any provision of this
Agreement be held wholly or in part invalid or unenforceable, or should there be stated a gap, the validity or enforceability of the other parts shall not be affected thereby. The invalid or unenforceable provision or the gap shall be deemed
replaced by such valid and enforceable provision which is the most similar to the will of the Parties or which the Parties would have wanted in accordance of the spirit and purpose of this Agreement if they had been aware of it. 

Any notices or other communication made or to be made in connection with this agreement shall be effective upon receipt if delivered by
post-mail or certified courier to the addresses as indicated on the front page of this Agreement. Each party may at any time change its address by giving notice to the other party in the manner as described above. 

 

	5.13	Governing Law 

 This Agreement and any Individual Contracts shall be governed by and
construed under the substantive laws of Switzerland to the exclusion of the provisions on the conflict of laws, and in so far it should be considered as applicable, to the exclusion of the UN convention on contracts for International Sale of Goods.
For the avoidance of doubt, the Parties stipulate that Swiss competition laws shall not apply simply by the virtue of this provision. 
  

	5.14	Arbitration 

 Any dispute, controversy, or claim arising out of, or in relation to, this
Agreement, including the validity, invalidity, breach, or termination thereof, shall be finally and bindingly resolved by arbitration in accordance with the Arbitration Rules of the International Chamber of Commerce International Court of
Arbitration (“ICC”) in force on the date on which the Request for Arbitration is submitted in accordance with these Rules. 
 The
number of arbitrators shall be 3, one of whom shall be appointed by each of the Parties and the third of whom shall be selected by mutual agreement of the co-arbitrators with the input of the Parties, if possible, within 30 days of the selection of
the second arbitrator and thereafter by the ICC. 

  
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 The seat of arbitration shall be in London, England. 

The arbitral proceedings shall be conducted in English. 
  

	5.15	Audit 

 All costs and amounts to be charged by VW T&B or any of its Affiliates to
Navistar shall be subject to audit by Navistar, provided that the audit shall be conducted by a clean team from an independent third party auditor appointed by Navistar and reasonably acceptable to VW T&B. VW T&B shall provide reasonable
access requested by such clean team in order to carry out the audit. 
 Signatures on next page 

  
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 Signatures 

 

					
	Naperville, Illinois, this 5 September 2016
	
	Volkswagen Truck & Bus GmbH
			
	 /s/ Andreas Renschler
	 		 	 /s/ Matthias Gründler

	 Name: Andreas Renschler
 Title:
  Chief Executive Officer
	 		 	 Name: Matthias Gründler
 Title:
  Chief Financial Officer

			
	Naperville, Illinois, this 5 September 2016	 		 	
			
	Navistar, Inc.	 		 	
			
	 /s/ Troy A. Clarke
	 		 	 /s/ Walter G. Borst

	 Name: Troy A. Clarke
 Title:
  President and Chief Executive Officer
	 		 	 Name: Walter G. Borst

Title:   Executive Vice President and Chief Financial Officer

  
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 Schedule A 

*** 

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 Schedule B 

*** 

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 Annex I 

VW T&B and/or its Affiliates currently sell to customers *** which may contain Engines and/or Technologies described in Section 4.1
of the Agreement.

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