Document:

EX-10.2

 Exhibit 10.2 
 AMENDED AND RESTATED 
 1998 MOODY’S CORPORATION 

NON-EMPLOYEE DIRECTORS’ STOCK INCENTIVE PLAN 
 (Adopted September 8, 2000; Amended and Restated as of December 11, 2012) 
 1.
Purpose of the Plan 
 The purpose of the Plan is to aid the Company in attracting, retaining and compensating non-employee
directors and to enable them to increase their ownership of Shares. The Plan will be beneficial to the Company and its stockholders since it will allow non-employee directors of the Board to have a greater personal financial stake in the Company
through the ownership of Shares, in addition to underscoring their common interest with stockholders in increasing the value of the Shares on a long-term basis. 
 2. Definitions 
 The following capitalized terms used in the Plan have the
respective meanings set forth in this Section: 
  

	 	(a)	Act: The Securities Exchange Act of 1934, as amended, or any successor thereto. 

 

	 	(b)	Award: An Option, Share of Restricted Stock or Performance Share granted pursuant to the Plan. 

 

	 	(c)	Beneficial Owner: As such term is defined in Rule 13d-3 under the Act (or any successor rule thereto). 

 

	 	(d)	Board: The Board of Directors of the Company. 

  

	 	(e)	Change in Control: The occurrence of a change in ownership of Moody’s Corporation, a change in the effective control of Moody’s Corporation, or a
change in the ownership of a substantial portion of the assets of Moody’s Corporation. For this purpose, a change in the ownership of Moody’s Corporation occurs on the date that any one person, or more than one person acting as a group (as
determined pursuant to the regulations under Section 409A), acquires ownership of stock of Moody’s Corporation that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total
voting power of the stock of Moody’s Corporation. A change in effective control of Moody’s Corporation occurs on either of the following dates: (1) the date any one person, or more than one person acting as a group acquires (or has
acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of Moody’s Corporation possessing 50 percent or more of the total voting power of the stock of Moody’s
Corporation, or (2) the date a majority of members of the Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or
election. A change in the ownership of a substantial portion of the assets of Moody’s Corporation occurs on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on
the date of the most recent acquisition by such person or persons) assets from Moody’s Corporation that have a total gross fair market value (as determined pursuant to the regulations under Section 409A) equal to or more than 40 percent of
the total gross fair market value of all of the assets of Moody’s Corporation immediately before such acquisition or acquisitions. 

  

	 	(f)	Code: The Internal Revenue Code of 1986 and the regulations thereunder, as amended from time to time. 

 

	 	(g)	Committee: The Governance and Compensation Committee of the Board, or any successor thereto or other committee designated by the Board to assume the obligations
of the Committee hereunder. 

  

	 	(h)	Company: Moody’s Corporation. 

  

	 	(i)	Disability: Inability to continue to serve as a non-employee director due to a medically determinable physical or mental impairment which constitutes a permanent
and total disability, as determined by the Committee (excluding any member thereof whose own Disability is at issue in a given case) based upon such evidence as it deems necessary and appropriate. 

 

	 	(j)	Effective Date: The date on which the Plan takes effect, as defined pursuant to Section 14 of the Plan. 

 

	 	(k)	 Fair Market Value: On a given date, the arithmetic mean of the high and low prices of the Shares as reported on such date on the Composite Tape
of the principal national securities exchange on which such Shares are listed or admitted to trading, or, if no Composite Tape exists for such national securities 

  
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exchange on such date, then on the principal national securities exchange on which such Shares are listed or admitted to trading, or, if the Shares are not listed or admitted on a national
securities exchange, the arithmetic mean of the per Share closing bid price and per Share closing asked price on such date as quoted on the National Association of Securities Dealers Automated Quotation System (or such market in which such prices
are regularly quoted), or, if there is no market on which the Shares are regularly quoted, the Fair Market Value shall be the value established by the Committee in good faith. If no sale of Shares shall have been reported on such Composite Tape or
such national securities exchange on such date or quoted on the National Association of Securities Dealers Automated Quotation System on such date, then the immediately preceding date on which sales of the Shares have been so reported or quoted
shall be used. 

  

	(l)	Option: A stock option granted pursuant to Section 6 of the Plan. 

 

	(m)	Option Price: The purchase price per Share of an Option, as determined pursuant to Section 6(b) of the Plan. 

 

	(n)	Participant: Any director of the Company who is not an employee of the Company or any Subsidiary of the Company as of the date that an Award is granted.

  

	(o)	Performance Period: The calendar year or such other period of at least 12 consecutive months as shall be designated by the Committee from time to time.

  

	(p)	Performance Share: A periodic bonus award, payable in unrestricted Shares, granted pursuant to Section 8(a) of the Plan. 

 

	(q)	Person: As such term is used for purposes of Section 13(d) or 14(d) of the Act (or any successor section thereto). 

 

	(r)	Plan: The 1998 Moody’s Corporation Non-Employee Directors’ Stock Incentive Plan, as amended and restated. 

 

	(s)	Restricted Stock: A Share of restricted stock granted pursuant to Section 7 of the Plan. 

 

	(t)	Retirement: Termination of service with the Company after such Participant has attained age 70, regardless of the length of such Participant’s service; or,
with the prior written consent of the Committee (excluding any member thereof whose own Retirement is at issue in a given case), termination of service at an earlier age after the Participant has completed six or more years of service with the
Company. 

  

	(u)	Section 409A: Section 409A of the Code and applicable guidance issued thereunder. 

 

	(v)	Service Period: The period of time designated by the Committee from time to time during which services must be rendered and at the end of which Restricted Stock
grants shall vest. 

  

	(w)	Shares: Shares of common stock, par value $0.01 per share, of the Company. 

 

	(x)	Subsidiary: A subsidiary corporation, as defined in Section 424(f) of the Code (or any successor section thereto). 

 

	(y)	Termination of Service: A Participant’s “separation from service” with the Company as determined pursuant to Section 409A.

 3. Shares Subject to the Plan 
 The total number of Shares which may be issued under the Plan is 1,700,000 (subject to adjustment in accordance with the provisions of Section 9 hereof). The Shares may consist, in whole or in part,
of unissued Shares or treasury Shares. The issuance of Awards shall reduce the total number of Shares available under the Plan. Shares which are subject to Awards which terminate or lapse may be granted again under the Plan. 

4. Administration 
 The
Plan shall be administered by the Committee, which may delegate its duties and powers in whole or in part to any subcommittee thereof consisting solely of at least two “non-employee directors” within the meaning of Rule 16b-3 under the Act
(or any successor rule thereto); provided, however, that any action permitted to be taken by the Committee may be taken by the Board, in its discretion. The Committee is authorized to interpret the Plan, to establish, amend and rescind
any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan. The Committee may correct any defect or

  
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omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or desirable. Any decision of the Committee in the interpretation and
administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries or
successors). 
 5. Eligibility/Annual Limitation on Grants 
 All Participants shall be eligible to participate under this Plan. In no event shall the number of Shares subject to Awards granted to any Participant in a calendar year exceed 20,000 Shares. 

6. Terms and Conditions of Options 
 Options granted under the Plan shall be non-qualified stock options for federal income tax purposes, as evidenced by the related Option agreements, and shall be subject to the foregoing and the following
terms and conditions and to such other terms and conditions, not inconsistent therewith, as the Committee shall determine: 

(a) Grants. A Participant may receive, on such dates as determined by the Committee in its sole discretion, grants consisting of
such number of Options as determined by the Committee in its sole discretion. 
 (b) Option Price. The Option Price per
Share shall be determined by the Committee, but shall not be less than 100% of the Fair Market Value of the Shares on the date an Option is granted. 
 (c) Exercisability. Options granted under the Plan shall be exercisable at such time and upon such terms and conditions as may be determined by the Committee, but in no event shall an Option be
exercisable more than ten years after the date it is granted. 
 (d) Exercise of Options. Except as otherwise provided in
the Plan or in a related Option agreement, an Option may be exercised for all, or from time to time any part, of the Shares for which it is then exercisable. For purposes of Section 6 of the Plan, the exercise date of an Option shall be the
later of the date a notice of exercise is received by the Company and, if applicable, the date payment is received by the Company pursuant to clauses (i), (ii) or (iii) in the following sentence. The purchase price for the Shares as to
which an Option is exercised shall be paid to the Company in full at the time of exercise at the election of the Participant (i) in cash, (ii) in Shares, having a Fair Market Value equal to the aggregate Option Price for the Shares being
purchased and satisfying such other requirements as may be imposed by the Committee, (iii) partly in cash and partly in such Shares, or (iv) through the delivery of irrevocable instructions to a broker to deliver promptly to the Company an
amount equal to the aggregate Option Price for the Shares being purchased. No Participant shall have any rights to dividends or other rights of a stockholder with respect to Shares subject to an Option until the occurrence of the exercise date
(determined as set forth above) and, if applicable, the satisfaction of any other conditions imposed by the Committee pursuant to the Plan. 
 (e) Exercisability Upon Termination of Service by Death. Upon a Termination of Service by reason of death after the first anniversary of the date on which an Option is granted, the unexercised
portion of such Option shall immediately vest in full and may thereafter be exercised during the shorter of the remaining term of the Option or five years after the date of death. 

(f) Exercisability Upon Termination of Service by Disability or Retirement. Upon a Termination of Service by reason of Disability
or Retirement after the first anniversary of the date on which an Option is granted, the unexercised portion of such Option may thereafter be exercised during the shorter of the remaining term of the Option or five years after the date of such
Termination of Service; provided, however, that if a Participant dies within a period of five years after such Termination of Service, the unexercised portion of the Option shall immediately vest in full and may thereafter be
exercised, during the shorter of the remaining term of the Option or the period that is the longer of five years after the date of such Termination of Service or one year after the date of death. 

(g) Effect of Other Termination of Service. Upon a Termination of Service by reason of Disability or Retirement prior to the first
anniversary of the date on which an Option is granted (as described above), then, a pro rata portion of such Option shall immediately vest in full and may be exercised thereafter, during the shorter of (A) the remaining term of such Option or
(B) five years after the date of such Termination of Service, for a prorated number of Shares (rounded down to the nearest whole number of Shares), equal to (i) the number of Shares subject

  
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to such Option multiplied by (ii) a fraction the numerator of which is the number of days the Participant served on the Board subsequent to the date on which such Option was granted and the
denominator of which is 365. The portion of such Option which is not so exercisable shall terminate as of the date of Disability or Retirement. Upon a Termination of Service for any other reason prior to the first anniversary of the date on which an
Option is granted, such Option shall thereupon terminate. Upon a Termination of Service for any reason other than death, Disability or Retirement after the first anniversary of the date on which an Option is granted, the unexercised portion of such
Option shall thereupon terminate. 
 (h) Nontransferability of Stock Options. Except as otherwise provided in this
Section 6(h), an Option shall not be transferable by the optionee otherwise than by will or by the laws of descent and distribution and during the lifetime of an optionee an Option shall be exercisable only by the optionee. An Option
exercisable after the death of an optionee or a transferee pursuant to the following sentence may be exercised by the legatees, personal representatives or distributees of the optionee or such transferee. The Committee may, in its discretion,
authorize all or a portion of the Options previously granted or to be granted to an optionee to be on terms which permit irrevocable transfer for no consideration by such optionee to any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of the optionee, trusts for the exclusive benefit of these persons, and any other entity owned solely by
these persons (“Eligible Transferees”), provided that (x) the stock option agreement pursuant to which such Options are granted must be approved by the Committee, and must expressly provide for transferability in a manner consistent
with this Section and (y) subsequent transfers of transferred Options shall be prohibited except those in accordance with the first sentence of this Section 6(h). The Committee may, in its discretion, amend the definition of Eligible
Transferees to conform to the coverage rules of Form S-8 under the Securities Act of 1933 or any comparable Form from time to time in effect. Following transfer, any such Options shall continue to be subject to the same terms and conditions as were
applicable immediately prior to transfer. The events of Termination of Service of Sections 6(e), 6(f) and 6(g) hereof shall continue to be applied with respect to the original optionee, following which the Options shall be exercisable by the
transferee only to the extent, and for the periods specified, in Sections 6(e), 6(f) and 6(g). The Committee may delegate to a committee consisting of employees of the Company the authority to authorize transfers, establish terms and conditions upon
which transfers may be made and establish classes of Options eligible to transfer Options, as well as to make other determinations with respect to Option transfers. 
 7. Terms and Conditions of Restricted Stock 
 Restricted Stock granted under
the Plan shall be subject to the foregoing and the following terms and conditions and to such other terms and conditions, not inconsistent therewith, as the Committee shall determine: 

(a) Grants. A Participant may receive, on such dates as determined by the Committee in its sole discretion, grants consisting of
such amounts of Restricted Stock as determined by the Committee in its sole discretion. 
 (b) Restrictions. Restricted
Stock granted under the Plan may not be sold, transferred, pledged, assigned or otherwise disposed of under any circumstances; provided, however, that the foregoing restrictions shall lapse at such time and upon such terms and
conditions as may be specified by the Committee in the related Award agreement(s). 
 (c) Vesting. Any grant of
Restricted Stock under the Plan shall be subject to a minimum one-year vesting requirement. 
 (d) Forfeiture of Grants.
Except to the extent otherwise specified by the Committee in a related Award agreement(s), all Shares of Restricted Stock as to which restrictions have not previously lapsed pursuant to Section 7(b) of the Plan shall be forfeited upon a
Participant’s Termination of Service for any reason (including, without limitation, by reason of death, Disability or Retirement). 
 (e) Other Provisions. During the period prior to the date on which the foregoing restrictions lapse, Shares of Restricted Stock shall be registered in the Participant’s name and such
Participant shall have voting rights and receive dividends with respect to such Restricted Stock. 
 (f) Authorization for
Committee to Permit Deferral. Notwithstanding anything in this Section 7 to the contrary, a Participant may, if and to the extent permitted by the Committee, elect to defer receipt of any Restricted Stock

  
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granted under the Plan; provided, however, that any such election must be made and become irrevocable not later than the close of the calendar year next preceding the year in which
the Service Period commences; and further provided, that any Restricted Stock for which a deferral election has been made shall be distributed to the Participant, to the extent vested, as soon as administratively practicable following
such Participant’s Termination of Service, but in no event later than the later of (i) the end of the calendar year in which such Termination of Service occurs or (ii) 2 1/2 months after such Termination of Service occurs. Any and all
Restricted Stock for which a deferral election is made shall be contributed to a grantor “rabbi” trust established by the Company prior to the date on which the restrictions on such Restricted Stock lapse, which trust shall be administered
by an independent trustee; provided, however, that distributions of Restricted Stock by such a trust to a Participant following the Participant’s Termination of Service will satisfy the Company’s obligations to the
Participant with respect to Restricted Stock awarded under this Plan to the extent of such distributions. 
 8. Terms and Conditions of
Performance Shares 
 (a) Establishment of Annual Performance Target Levels and Number of Performance Shares. Prior to
the commencement of a given Performance Period, the Committee shall establish organizational or individual performance criteria within the meaning of Section 409A relating to such Performance Period (“Performance Goals”). The
Committee shall also establish the number of Performance Shares that would be payable to Participants upon the attainment of various Performance Goals during such Performance Period. 

(b) Payment in Unrestricted Shares. As soon as practicable following a given Performance Period, but in no event later than 30
days after the end of such Performance Period, Participants shall receive unrestricted Shares equal to the number of Performance Shares earned by such Participant during such Performance Period. A Participant who did not serve on the Board during an
entire Performance Period shall receive a prorated number of Shares (rounded down to the nearest whole number of Shares) based upon (i) the number of days during the Performance Period during which such Participant served on the Board and
(ii) the actual performance results. 
 (c) Authorization for Committee to Permit Deferral. Notwithstanding
Section 8(b) of the Plan, a Participant may, if and to the extent permitted by the Committee, elect to defer payment of any unrestricted Shares payable as a result of any Performance Shares earned by such Participant; provided,
however, that any such election must be made and become irrevocable (i) on or before the date that is six months before the end of the Performance Period, provided that the Participant performs services continuously from the later of the
beginning of the Performance Period or the date the Performance Goals are established through the date an election is made pursuant to this Section 8(c), and (ii) in accordance with such terms and conditions as are established by the
Committee in its sole discretion. Any and all Shares earned pursuant to Section 8(b) and the receipt of which is deferred by election pursuant to this Section 8(c) shall be distributed to the Participant as soon as administratively
practicable following Participant’s Termination of Service, but in no event later than the later of the end of the calendar year in which such Termination of Service occurs or 2 1/2 months after such Termination of Service occurs. 

(d) Vesting. Any grant of Performance Shares under the Plan shall be subject to a minimum one-year vesting requirement.

 9. Adjustments Upon Certain Events 
 Notwithstanding any other provisions in the Plan to the contrary, the following provisions shall apply to all Awards granted under the Plan: 

(a) Generally. In the event of any change in the outstanding Shares after the Effective Date by reason of any Share dividend or
split, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of Shares or other corporate exchange or similar transaction, or any distribution to stockholders of Shares other than regular cash dividends, the
Committee shall adjust the following to the extent necessary to achieve an equitable result: (i) the number or kind of Shares or other securities issued or reserved for issuance pursuant to the Plan or pursuant to outstanding Awards,
(ii) the Option Price, and/or (iii) any other affected terms of such Awards. 
 (b) Change in Control. Upon the
occurrence of a Change in Control, (i) all restrictions on Shares of Restricted Stock shall lapse, (ii) each Participant shall receive the target number of Performance Shares for the Performance Period in which the Change in Control occurs
(or, if no target number has been established for such Performance Period, the target number for the immediately preceding Performance Period shall be used), and (iii) all Stock Options shall vest and become exercisable. 

  
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 10. Successors and Assigns 
 The Plan shall be binding on all successors and assigns of the Company and a Participant, including, without limitation, the estate of such Participant and the executor, administrator or trustee of such
estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors. 
 11. Amendments or Termination

 The Committee may amend, alter or discontinue the Plan, but no amendment, alteration or discontinuation shall be made
which would impair the rights of any Participant under any Award theretofore granted without such Participant’s consent. 
 12.
Nontransferability of Awards 
 Except as provided in Section 6(h) of the Plan, an Award shall not be transferable or
assignable by the Participant otherwise than by will or by the laws of descent and distribution. During the lifetime of a Participant, an Award shall be exercisable only by such Participant. An Award exercisable after the death of a Participant may
be exercised by the legatees, personal representatives or distributees of the Participant. Notwithstanding anything to the contrary herein, the Committee, in its sole discretion, shall have the authority to waive this Section 12 (or any part
thereof) to the extent that this Section 12 (or any part thereof) is not required under the rules promulgated under any law, rule or regulation applicable to the Company. 
 13. Choice of Law 
 The Plan shall be governed by and construed in
accordance with the laws of the State of Delaware applicable to contracts made and to be performed in the State of Delaware. 
 14.
Effectiveness of the Plan 
 The amendment and restatement of the Plan shall be effective as of December 11, 2012.

 15. Section 409A 
 The Plan is intended to comply with the provisions of Section 409A in order to avoid taxation of amounts deferred hereunder before such amounts are distributed from the Plan, and the Plan will be
interpreted accordingly. 

  
 6Employment and Services Agreement

 EXHIBIT 10.1 
 NAVISTAR INTERNATIONAL CORPORATION 
 EMPLOYMENT AND SERVICES AGREEMENT 

This Employment and Services Agreement (the “Agreement”) is entered into on April 22, 2013 by and among Navistar
International Corporation, a Delaware corporation (the “Company”), its principal operating subsidiary, Navistar, Inc., a Delaware corporation (“NAVISTAR, INC.”) and Troy A. Clarke (“Executive”) (each a “Party”
and collectively, the “Parties”). For purposes of this Agreement, “NIC” shall mean the Company and all of its direct or indirect, wholly- owned subsidiaries, including NAVISTAR, INC., and “NAVISTAR, INC.” shall mean
only Navistar, Inc., unless the context clearly indicates the contrary. 
 1. Duties and Scope of Employment. 

(a) Position, Duties and Term. Effective from April 15, 2013 (the “Effective Date”), Executive will serve as Chief
Executive Officer and President (“CEO”) of the Company, reporting exclusively to the Company’s Board of Directors (the “Board”). Executive will render such business and professional services in the performance of his duties
as are consistent with Executive’s position within the Company. As CEO, Executive will have the status of the highest ranking executive officer of the Company, with the full powers, responsibilities and authorities customary for the chief
executive officer of publicly traded corporations of the size, type and nature of the Company, together with such other powers, authorities and responsibilities as may reasonably be assigned to him by the Board. The term of employment of Executive
pursuant to this Agreement (the “Services Term”) shall commence effective as of the Effective Date and shall end on April 14, 2016, unless earlier terminated pursuant to Section 2 hereof. 

(b) Board Membership. Executive will be appointed to serve as a member of the Board. At each annual meeting of the Company’s
stockholders during the Services Term, the Company will nominate Executive to serve as a member of the Board. Executive’s service as a member of the Board will be subject to any required stockholder approval. Upon the termination of
Executive’s service as CEO for any reason, unless otherwise determined by the Board, Executive will be deemed to have resigned from the Board (and any boards of subsidiaries) and any other positions held at the Company or any of its
subsidiaries or affiliates voluntarily, without any further required action by Executive, as of the cessation of Executive’s services, and Executive, at the Board’s request, will execute any documents deemed in the discretion of the
Company to be reasonably necessary to reflect his resignation(s). 
 (c) Obligations. During the Services Term, Executive will
use good faith efforts to discharge Executive’s obligations under this Agreement to the best of Executive’s ability. As CEO, Executive will devote his full business efforts and time to the Company. For the duration of the Services Term,
Executive agrees not to engage actively in any other employment, occupation, or consulting activity for any direct or indirect remuneration without the prior approval of the Non-Executive Chairman of the Board (the “Non-Executive
Chairman”) or, if there should be no Non-Executive Chairman, the Lead Director of the Board (which approval will not be unreasonably withheld, conditioned or delayed); provided, however, that Executive may, without such approval, serve in any
capacity with any civic, educational, or charitable organization, participate in industry affairs and manage his and his family’s personal passive investments, provided that such services do not materially interfere with Executive’s
obligations to the Company. Executive may retain any compensation or benefits received as a result of consented to service as a director without any offset in respect of any compensation or benefits to be provided hereunder. Executive represents
that Executive’s employment by the Company and the performance by Executive of his obligations under this Agreement do not, and shall not, breach any agreement that obligates him to keep in confidence any trade secrets or confidential or
proprietary information of his or of any other party, or to refrain from competing, directly or indirectly, with the business of any other party. 
 2. Termination of Services. Executive and the Company acknowledge that this Agreement and Executive’s employment and service relationship with the Company may be terminated at any time, upon
written notice to the other Party, with or without Cause (as defined below) or for any or no Cause, at the 

 
option of the Company, or due to Constructive Termination (as defined below), at the option of Executive. For the avoidance of doubt, each of the Company or Executive may in its discretion
terminate Executive’s employment and service as CEO. Further, Executive and the Company acknowledge that this Agreement and Executive’s employment and service relationship with the Company will terminate upon Executive’s death and the
Company may terminate Executive in the event of Executive’s Disability, as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended, and the Treasury regulations and other applicable authorities thereunder (the
“Code”). 
 (a) For purposes of this Agreement, “Cause” means, with respect to Executive: (i) willful
misconduct involving an offense of a serious nature that is demonstrably and materially injurious to NIC, monetarily or otherwise; (ii) conviction of a felony or the plea of guilty or nolo contendere to a felony, as defined by the laws of the
United States of America or by the laws of the State or other jurisdiction in which Executive is so convicted (in each case other than (y) a traffic infraction or (z) vicarious liability solely as a result of his position); or
(iii) continued failure to substantially perform required duties for NIC that is not cured by Executive within fifteen (15) days after written demand to so perform by the Company (other than a failure due to physical or mental disability).
In the event Executive fails to cure under Section 2(a)(iii), Executive shall not be deemed to have been involuntarily terminated for Cause unless and until the occurrence of the following two events: (y) Executive has been given notice
from the Board that identifies the grounds for the proposed involuntary termination for Cause under Section 2(a)(iii) and notifies Executive that he, along with his legal counsel, shall have an opportunity to address the Board with respect to
the alleged grounds for termination at a meeting of the Board called and held for the purpose of determining whether Executive engaged in the conduct described under Section 2(a)(iii), such meeting to be held no earlier than fifteen
(15) days after Executive is given such notice (unless Executive consents to an earlier meeting), and (z) Executive has been given a copy of the resolutions, duly adopted by the affirmative vote of not less than a majority of the entire
membership of the Board (excluding Executive) called and held for the purpose of finding that, in the opinion of the majority of the Board (excluding Executive), Executive was guilty of conduct set forth in Section 2(a)(iii), that specify the
grounds and evidence for termination and indicate the grounds for termination have not been cured within the specified time limits. For purposes of determining whether “Cause” exists, no act, or failure to act, on Executive’s part
will be deemed “willful” unless done, or omitted to be done, by Executive not in good faith and without reasonable belief that Executive’s act, or failure to act, was in the best interest of the Company. 

(b) For purposes of this Agreement, “Constructive Termination” means the occurrence of any of the following events or
conditions without Executive’s written consent: (i) a material diminution in Executive’s authority (including the budget over which Executive retains authority), duties, or responsibilities within NIC (including a change by the
Company so that Executive no longer reports directly to the Board (or the board of directors of an acquirer or successor), except in connection with the involuntary termination of Executive’s employment for Cause; (ii) the Company reduces
Executive’s base salary or total incentive compensation opportunity (including annual incentive compensation) by five percent (5%) or more (either upon one reduction or during a series of reductions over a period of time) as compared to
(y) with respect to base salary, the highest base salary in effect for Executive during the six-month period immediately before such reduction, and (z) with respect to annual incentive compensation opportunity, the highest annual incentive
compensation opportunity as in effect for Executive in the six-month period immediately before such reduction; (iii) the action or inaction of NIC or successor or assign hereto that constitutes a material breach of this Agreement, including the
failure of any such successor or assign to assume, and to perform under, this Agreement as contemplated in Section 10 below; or (iv) the Company requires Executive to be based anywhere more than forty-five (45) miles from the location
of the Company’s headquartered offices immediately before such relocation, which relocation is adverse to Executive, except for required business travel. 
 (c) A termination for Constructive Termination shall occur if any event or circumstance constituting Constructive Termination occurs and Executive both provides notice to the Company or NAVISTAR, INC. of
the existence of the Constructive Termination within ninety (90) days of its initial existence and, to the extent the Company or NAVISTAR, INC. either does not remedy such Constructive Termination within thirty (30) days of receiving such
notice from Executive of the initial existence of such 

  
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Constructive Termination (for purposes of this Section 2(c), the “Cure Period”) or notifies the Executive in writing prior to the expiration of the Cure Period of its unwillingness
to remedy such event or condition, terminates his employment with the Company within ten (10) days after either the expiration of such Cure Period or such earlier date prior to the expiration of the Cure Period on which Executive was so
notified in writing, as the case may be. 
 3. Compensation. 

(a) Base Salary. As of the Effective Date, the Company will pay Executive an annual salary of $900,000 as compensation for his services to
the Company (such annual salary, as is then effective, to be referred to herein as “Base Salary”) during the Services Term. The Base Salary will be paid periodically in accordance with the Company’s normal payroll practices and be
subject to any required withholdings. The Board will review such Base Salary not less than annually and may increase (but not decrease) Executive’s Base Salary from the level in effect immediately prior to such review. 

(b) Annual Incentive. Executive will participate in the Company’s Annual Incentive Plan for each fiscal year during the Services
Term and will be eligible to earn an annual incentive bonus (payable 50% in cash and 50% in restricted stock or restricted stock units to be issued under the Company’s 2013 Performance Incentive Plan or the Company’s stock incentive plan
in effect at the time of grant) based upon the attainment of performance goals established by the Board. Executive’s target annual incentive for each fiscal year will be 90% of Executive’s Base Salary during such fiscal year, based upon
Board-specified levels of performance goals being achieved (the “Target Annual Incentive”). Executive’s maximum annual incentive bonus for each fiscal year will be two times Executive’s Target Annual Incentive for such fiscal
year. The annual incentive bonus will be subject to the terms and conditions of the Company’s Annual Incentive Plan or other annual incentive program, on the same terms and conditions that apply to other senior executives generally. 

(c) Stock Option Grant. 
 (i) Effective as of April 22, 2013 (for purposes of this Section 3(c)(i), the “Grant Date”), Executive will be granted the following nonqualified stock options to purchase shares of
the Company’s common stock (the “2013 Options”): (A) 373,333 at-the-money time-vested options, (B) 224,000 premium-priced time-vested options, (C) a target award of 74,666 at-the-money performance-vested options, with a
maximum award equal to 149,332 at-the-money performance-vested options, and (D) a target award of 74,666 premium-priced performance-vested options, with a maximum award equal to 149,332 premium-priced performance-vested options. The
at-the-money 2013 Options will have an exercise price equal to the fair market value of the Company’s common stock as of the close of trading on the last trading day prior to the Grant Date (i.e., the fair market value of the Company’s
common stock as of the close of business, Friday, April 19, 2013). The premium-priced 2013 Options will have an exercise price equal to 125% of the exercise price of the at-the-money 2013 Options. The time-vested 2013 Options will vest at the
rate of 33-1/3% on each of the first three anniversaries of the Grant Date. The performance-vested 2013 Options will vest as the performance goals established by the Compensation Committee and included in the option award forms related to such
performance-vested 2013 Options are satisfied. Each date on which 2013 Options are to become vested shall be referred to herein as a “Vesting Date”. Except as otherwise provided below, in order for 2013 Options to become vested on a
Vesting Date, Executive must be continuously employed by and provide services to the Company as CEO from the Grant Date until the Vesting Date. All 2013 Options shall expire, unless earlier terminated as provided below, on the seventh (7th) anniversary of the Grant Date. 

Notwithstanding the immediately preceding sentence, in the event that prior to any Vesting Date (A) the Company terminates
Executive’s employment and service to the Company as CEO without Cause or (B) Executive terminates employment and service due to a Constructive Termination; (each such termination, a “Vesting Termination”), the outstanding
unvested time-vested and performance-vested 2013 Options shall be treated as described in Section 6 of this Agreement. In all other respects, including with respect to the treatment of the Options upon terminations that are not Vesting

  
 3 

 
Terminations, the 2013 Options will be subject to the terms and conditions of stock option award agreements to be entered into by and between the Company and Executive in the forms attached as
Exhibits A-B. For the avoidance of doubt, (i) the 2013 Options will be subject to the Company’s 2013 Performance Incentive Plan, and (ii) Executive and the Company both acknowledge that, except as otherwise expressly provided for
herein, it is expected that Executive will not otherwise participate in the Company’s equity compensation program during the Services Term. 
 (ii) As promptly as is legally permissible following the Company’s release of fiscal year 2013 financial results, Executive will be granted nonqualified stock options to purchase shares of the
Company’s common stock (the “2014 Options”), with an aggregate grant date value of $3,659,358 calculated based on the Company’s Black Scholes option pricing methodology; provided, however, such grant shall be
conditioned on Executive remaining continuously employed with the Company through the grant date. The 2014 Options shall be allocated among at-the-money time-vested options, premium-priced time-vested options, at-the-money performance-vested
options, and premium-priced performance-vested options in the same proportion as set forth in Section 3(c)(i) and shall be subject to the same terms and conditions (including, the time-based and performance-based vesting conditions) set forth
in Section 3(c)(i) and the Option Award Agreements with respect to the 2013 Options; provided, however, the grant date for purposes of determining the vesting terms and exercise prices of such 2014 Options shall be the grant date
determined in accordance with applicable accounting rules and Section 409A of the Code. 
 (iii) Notwithstanding anything
herein to the contrary, the options and performance stock units granted to Executive on February 21, 2013 shall remain in place in accordance with their terms. 
 (d) Executive Stock Ownership Guidelines. For the avoidance of doubt, Executive shall be subject to the Company’s Executive Stock Ownership Guidelines during the Services Term. 

4. Employee Benefits and Perquisites. Executive will be eligible to participate in accordance with the terms of all Company
employee benefit plans, policies, perquisites and arrangements that are applicable to other senior executive officers of the Company, as such plans, policies, perquisites and arrangements may exist from time to time during the period that Executive
is employed as CEO. 
 5. Expenses. The Company will reimburse Executive for reasonable travel, entertainment, and other
expenses incurred by Executive in the furtherance of the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time. 

6. Severance Benefits. 
 (a) In the event Executive’s employment and service with the Company terminates for any reason, including due to the Executive’s death or disability (such date of termination of employment and
service, the “Date of Termination”), Executive will be entitled to (i) unpaid Base Salary accrued up to the Date of Termination, (ii) any unpaid, but earned, annual incentive for any completed fiscal year as of the Date of
Termination, (iii) pay for accrued but unused vacation, (iv) benefits or compensation as provided under the terms of any employee benefit and compensation agreements or plans applicable to Executive and under which he has a vested right
(including any right that vests in connection with the termination of his employment), and (v) reimbursement for any unreimbursed business expenses to which Executive is entitled to reimbursement under the Company’s expense reimbursement
policy (collectively, the “Accrued Obligations”). 
 (b) In the event that Executive’s employment and service
with the Company is terminated (i) by the Company without Cause, or (ii) by Executive due to Constructive Termination, then in addition to the Accrued Obligations, subject to Executive’s execution (without revocation) of a
commercially reasonable written release agreement in a form acceptable to the Company (the “Release”), Executive shall be entitled to (and the Company and NAVISTAR, INC. shall be jointly and severally obligated to provide to Executive):

  
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 (i) Severance pay in an amount equal to two-hundred percent (200%) of the sum of the
Executive’s Base Salary in effect at the time of termination and Target Annual Incentive payable in a lump sum on the Payment Date (as defined below); 
 (ii)(A) Continued healthcare coverage for the 24-month period immediately after the Date of Termination, with the same coverage option as in effect immediately before the Date of Termination (or
substantially similar coverage option in the event such prior coverage option is eliminated or unavailable) and under the same terms and conditions such coverage is otherwise made available to active employees of NIC after the Executive’s
termination, with such coverage being provided in lieu of any post-termination healthcare continuation coverage which Executive and his covered spouse and dependents would otherwise have been entitled to receive on account of said termination under
applicable federal and state law (“COBRA Coverage”); provided that for the first 12-month period, Executive shall pay for such coverage at no greater after tax cost to the Executive than the after tax cost to the Executive immediately
prior to the Date of Termination and for the remaining 12-month period, Executive shall pay for such coverage on a monthly Cost of Coverage basis (as defined below); (B) continued life insurance coverage for the 24-month period immediately
after the Date of Termination, in the same amount as in effect immediately before the Date of Termination and under the same terms and conditions such coverage is otherwise made available to active employees of NIC following the Executive’s
termination; (C) the same Company-paid outplacement services that were then normally provided to Executive’s then-current peers (determined as of the date immediately before the Date of Termination) and initiated within sixty
(60) days after the Date of Termination; provided that the payment for such outplacement services shall in no event extend beyond the last day of the second taxable year of Executive following the taxable year of Executive in which the Date of
Termination occurred; (D) any flexible perquisite allowance actually paid to Executive at or before the Date of Termination shall be retained by the Executive; (E) such post- retirement health and life insurance benefits due to Executive
upon his termination pursuant to and in accordance with the respective Company-sponsored benefit plans, programs, or policies under which they are accrued or provided (including grow-in rights as provided under the terms of the applicable plan,
program or policy); and (F) the same Company-paid tax counseling and tax forms preparation services that were normally provided to Executive’s then-current peers (determined as of the Date of Termination) for all taxable years up to and
including the taxable year of Executive in which the Date of Termination occurred; provided that the payment for such tax counseling and tax form preparation services shall in no event extend beyond the last day of the second taxable year of
Executive following the taxable year of Executive in which the Date of Termination occurred. For purposes of this Agreement, “Cost of Coverage” means the amount equal to 100% of the “applicable premium” as defined under
Section 4980B(f)(4) of the Code. For purposes of this Agreement, the “Payment Date” means within thirty (30) days immediately following the expiration of the applicable revocation period following the execution of the Release;
provided that payment shall be made no later than 2 1/2 months following the end of the calendar year in which the termination occurs; provided, however, that in the event a payment is administratively impracticable to make by the end of the 2 1/2
month period, then such payment shall be made as soon as administratively practicable in accordance with Section 409A of the Code and the regulations thereunder (collectively, “Section 409A”). 

(iii) An amount equal to a Pro Rata (as defined below) portion of the Executive’s Actual Annual Incentive (as defined below), which
payment shall be in lieu of any payment to which the Executive may otherwise have been entitled to receive under a Company-sponsored incentive or bonus plan (the “Pro Rata Bonus”). The Pro Rata Bonus shall be paid in lump sum as soon as
feasible following the completion of the incentive calculations for the plan year; provided, however, that no amount shall be paid with respect to an award designed to qualify under Section 162(m) of the Code until such award has been
appropriately certified in accordance with Section 162(m) of the Code; provided, further, that payment shall be made no later than 2 1/2 months following the end of the calendar year in which such plan year ends. For purposes of this Agreement,
“Pro Rata” means a fraction the numerator of which is the number of whole months from the beginning of the Company’s fiscal year in which the termination occurred through the Date of Termination (including the month in which the
termination occurs if such termination occurs on or after the 15th day of that month) and the denominator of which is equal to 12. For purposes of this Section 6(b)(iii), “Actual Annual Incentive” means the annual incentive amount
that would have been payable to the Executive for the Company’s fiscal year in which the termination occurred under the Company’s Annual Incentive Plan, based on actual performance achieved for such fiscal year of termination. 

  
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 (iv)(A) The outstanding unvested time-vested 2013 Options and 2014 Options will vest pro
rata, which, for this purpose, means a fraction the numerator of which is the number of whole months from the applicable Grant Date through the Date of Termination, or if one or more Vesting Dates has occurred, the number of whole months from the
most recent Vesting Date through the Date of Termination (in each case including the month in which the termination occurs if such termination occurs on or after the 15th day of that month) and the denominator of which is (1) 36, if the
termination occurs prior to the first anniversary of the applicable Grant Date, (2) 24, if the termination occurs on or after the first anniversary of the applicable Grant Date but prior to the second anniversary of the applicable Grant Date or
(3) 12, if the termination occurs on or after the second anniversary of the applicable Grant Date but prior to the third anniversary of the applicable Grant Date and (B) A pro rata portion of the outstanding unvested performance-vested
2013 Options and 2014 Options will remain eligible for vesting upon the conclusion of the applicable performance period, if and only to the extent that the performance conditions applicable to such 2013 Options and 2014 Options are satisfied;
provided that for purposes of this Section 6(iv)(B), pro rata means a fraction the numerator of which is the number of whole months from the applicable Grant Date through the Date of Termination, including the month in which the termination
occurs if such termination occurs on or after the 15th day of that month, and the denominator of which is the total number of months from the applicable Grant Date through the end of the applicable performance period. Upon becoming vested and
exercisable the 2013 Options and 2014 Options will remain exercisable until the date set forth in the applicable stock option award agreement, and any unexercised portion of the 2013 Options and 2014 Options shall thereupon expire. 

(c) In the event that Executive’s employment and service with the Company is terminated (i) by the Company without Cause, or
(ii) by Executive due to Constructive Termination, in either case during the 24 months after the date of the then-most recent Change in Control (or during the 90 days preceding the date of a Change in Control if Executive’s employment and
service with the Company is terminated by the Company without Cause in contemplation of such Change in Control), then in addition to the Accrued Obligations, subject to Executive’s execution (without revocation) of the Release, Executive shall
be entitled to (and the Company and NAVISTAR, INC. shall be jointly and severally obligated to provide to Executive): 
 (i) An
amount equal to two-hundred percent (200%) of the sum of the Executive’s Base Salary in effect at the time of termination and Target Annual Incentive payable in a lump sum on the Payment Date; 

(ii)(A) Continued COBRA Coverage for the 24-month period immediately after the Date of Termination; provided that for the first 12-month
period, Executive shall pay for such coverage at no greater after tax cost to the Executive than the after tax cost to the Executive immediately prior to the Date of Termination and for the remaining 12-month period, Executive shall pay for such
coverage on a monthly Cost of Coverage basis; (B) continued life insurance coverage for the 24-month period immediately after the Date of Termination, in the same amount as in effect immediately before the Date of Termination and under the same
terms and conditions such coverage is otherwise made available to active employees of NIC following the Executive’s termination; (C) the same Company-paid outplacement services that were then normally provided to Executive’s
then-current peers (determined as of the date immediately before the Date of Termination) and initiated within sixty (60) days after the Date of Termination; provided that the payment for such outplacement services shall in no event extend
beyond the last day of the second taxable year of Executive following the taxable year of Executive in which the Date of Termination occurred; (D) any flexible perquisite allowance actually paid to Executive at or before the Date of Termination
shall be retained by the Executive; (E) such post- retirement health and life insurance benefits due to Executive upon his termination pursuant to and in accordance with the respective Company-sponsored benefit plans, programs, or policies
under which they are accrued or provided (including grow-in rights as provided under the terms of the applicable plan, program or policy); and (F) the same Company-paid tax counseling and tax forms preparation services that were normally
provided to Executive’s then-current peers (determined as of the date immediately before the Change in 

  
 6 

 
Control) for all taxable years up to and including the taxable year of Executive in which the Date of Termination occurred; provided that the payment for such tax counseling and tax form
preparation services shall in no event extend beyond the last day of the second taxable year of Executive following the taxable year of Executive in which the Date of Termination occurred. 

(iii) An amount equal to a Pro Rata portion of the Executive’s Target Annual Incentive, which payment shall be in lieu of any
payment to which the Executive may otherwise have been entitled to receive under a Company-sponsored incentive or bonus plan, payable in a lump sum on the Payment Date. 
 (iv) All outstanding unvested time-vested 2013 Options and 2014 Options will vest and all outstanding unvested performance-vested 2013 Options and 2014 Options will vest at target (except with respect to
portions of such unvested performance-vested 2013 Options and 2014 Options that relate to performance periods that have been completed, which portions shall not vest). Upon becoming vested and exercisable the 2013 Options and 2014 Options will
remain exercisable until the date set forth in the applicable stock option award agreement, and any unexercised portion of the 2013 Options and 2014 Options shall thereupon expire. 

(d) For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if (i) any “person”
or “group” (as such terms are used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than (A) Mark H. Rachesky and Carl C. Icahn (including each of their respective affiliates) and
(B) employee or retiree benefit plans or trusts sponsored or established by the Company or Navistar, Inc., is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly
or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities, (ii) the following individuals cease for any reason to constitute at least 50% of the number of
directors then serving on the Board of Directors: individuals who, on the date hereof, constitute the Board of Directors and any new director whose appointment or election by the Board of Directors or nomination for election by the Company’s
stockholders was approved by the vote of at least two-thirds (2/3) of the directors then still in office or whose appointment, election or nomination was previously so approved or recommended; (iii) any dissolution or liquidation of the
Company or Navistar, Inc. or sale or disposition of all or substantially all (more than 50%) of the assets of the Company or of Navistar, Inc. occurs; or (iv) as the result of, or in connection with, any cash tender offer, exchange offer,
merger or other business combination, sale of assets, proxy or consent solicitation, contested election or substantial stock accumulation (a “Control Transaction”), the members of the Board of Directors immediately prior to the first
public announcement relating to such Control Transaction shall immediately thereafter, or within two (2) years, cease to constitute a majority of the Board of Directors. Notwithstanding the foregoing, the sale or disposition of any or all of
the assets or stock of Navistar Financial Corporation shall not be deemed a Change in Control. 
 7. Confidentiality;
Non-Disparagement; Non-Solicitation; Non-Competition; Cooperation. Executive agrees to be bound by the covenants of this Section 7 and acknowledges that the covenants contained within this Section 7 are essential elements of this
Agreement. As such, Executive agrees that he shall: 
 (a) at all times during the Services Term and following termination of
employment and service for any reason, hold in the strictest confidence and not disclose, divulge or appropriate, directly or indirectly, for personal use or the use of others, except as may be required in Executive’s work for the Company, any
confidential, secret, proprietary or privileged information pertaining to the business of NIC obtained during Executive’s employment by NIC (collectively, “Confidential Information”), including but not limited to (i) information
related to all relationships of NIC with its customers or clients which Executive would not, but for his relationship with NIC, have had contact with (collectively, “Customers”) (including the identities of NIC’s primary contacts at
such Customers), trade secrets, inventions, ideas, processes, formulas, source and object codes, data, programs, other works of authorship, know-how, improvements, discoveries, developments, designs and techniques; (ii) information regarding
plans for research, trade secrets, development, new products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices and costs, investors and Customers; and (iii) information regarding the skills
and compensation of other employees of NIC; 

  
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 (b) at all times during the Services Term and following a termination of employment and
service for any reason, refrain from publishing, providing, or soliciting, directly or indirectly, any oral or written statements about NIC or any of its respective officers, directors, employees, agents, representatives, products, or practices that
may be considered disparaging, slanderous, libelous, derogatory, or defamatory, or which may reasonably be expected to tend to injure the reputation or business of NIC or any of its respective officers, directors, employees, agents, representatives,
products, or practices; provided that such restriction shall not limit Executive’s ability to provide truthful testimony as required by law or any judicial or administrative process; 

(c) at all times during the Services Term and for a period of twenty-four (24) months immediately following termination of
employment and service for any reason, not, directly or indirectly (whether as owner, principal, agent, partner, officer, director, employee, consultant, investor, lender or otherwise), provide services to any other business or organization anywhere
in the United States of America or its territories, Canada, Mexico, Brazil, United Kingdom, Germany, South Africa, United Arab Emirates, India and the People’s Republic of China, or any other country in which NIC, directly or indirectly
including through a joint venture, strategic alliance or other similar arrangement, conducts business at the time of Executive’s termination of employment and service that competes with the business of NIC by (i) manufacturing, selling or
servicing medium or heavy duty automotive vehicles with diesel powered engines (including commercial trucks, commercial buses, school buses, recreational vehicles, and military vehicles), parts or components for such vehicles, diesel powered engines
for such vehicles, parts or components for diesel powered engines for such vehicles; (ii) providing financing or financing- related services related to any of the business activities listed in Section 7(c)(i) above; or (iii) providing
other services or products which are the same as or substantially similar to those provided by NIC at the time of Executive’s termination of employment and service; provided, however, that such restriction shall not prohibit Executive’s
purchase or ownership of less than five percent (5%) of the outstanding voting stock of a publicly-held company so long as such ownership is passive in nature; provided, further, notwithstanding anything in this Agreement to the contrary,
(y) the ownership by Executive of a dealership (or group of dealerships) for the retail sale and service of medium or heavy duty automotive vehicles with diesel powered engines (including commercial trucks, commercial buses, school buses,
recreational vehicles, and military vehicles), parts or components for such vehicles, diesel powered engines for such vehicles, and parts or components for diesel powered engines for such vehicles, and (z) the providing of financing or
financing related services to customers in connection with the business described in above clause (y), shall not be deemed to be a violation of this Agreement and particularly, of this Section 7(c); 

(d) at all times during the Services Term and for a period of twenty-four (24) months immediately following a termination of
employment and service for any reason, refrain, without the written consent of the Company or NAVISTAR, INC., from, directly or indirectly, (i) recruiting or soliciting any employee, consultant, contractor, agent, or representative of NIC for
employment or for retention as a consultant or service provider for any entity other than NIC; (ii) encouraging any employee, consultant, contractor, agent, or representative of NIC to leave its employ or cease his relationship with NIC;
(iii) hiring any person who is then an employee, consultant, contractor, agent, or representative of NIC for any entity other than NIC, or providing names or other information about such employee, consultant, contractor, agent, or
representative to any person or business under circumstances which could lead to the use of that information for purposes of recruiting or hiring for any entity other than NIC; (iv) interfering with the relationship of NIC with any of its
employees, consultants, contractors, agents, or representatives; (v) soliciting or inducing, or in any manner attempting to solicit or induce, any Customer, or prospect of NIC (1) to cease being, or not to become, a client or customer of
NIC; or (2) to divert any business of such Customer or prospect from NIC, or (vi) otherwise interfering with, disrupting, or attempting to interfere with or disrupt, the relationship, contractual or otherwise, between NIC and any of its
Customers, prospects, suppliers, employees, consultants, contractors, agents, or representatives; and 

  
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 (e) at all times during the Services Term and for a period of twenty-four (24) months
immediately following termination of employment and service for any reason, cooperate with and provide assistance to NIC at any time and in any manner reasonably required by NIC or its respective counsel in connection with any litigation or other
legal process affecting NIC, or in answering questions concerning any other matter, in which Executive was involved or had knowledge of during the course of his employment and service (other than any dispute between the Parties concerning this
Agreement); provided that (i) the Company and NAVISTAR, INC. shall have provided Executive with advance written notice of the request to cooperate or assist; (ii) the Company and NAVISTAR, INC. shall reimburse Executive’s reasonable
attorneys’ fees and costs and such other expenses in connection with said cooperation and assistance promptly after Executive submits a written request therefor together with copies of the invoices substantiating such expenses, but in no event
shall payment of any such fees, costs, and expenses be made after the last day of Executive’s taxable year following the taxable year in which the expense was incurred; provided that prior to reimbursement Executive first delivers a written
undertaking to the Company and NAVISTAR, INC. to repay all such attorneys’ fees and costs and expenses paid to Executive prior to the final disposition of the litigation or other legal process affecting NIC if it ultimately be determined by
final judicial decision from which there is no further right to appeal that Executive is not entitled to reimbursement of such attorneys’ fees and costs and expenses; and (iii) that after the termination of employment and service for any
reason, such cooperation and assistance shall not require Executive to forgo or significantly interrupt any professional or personal commitment that he reasonably deems significant or to take any action that, in his reasonable judgment, could impair
his ability to perform the responsibilities of or could jeopardize the continuation of his then current employment or self-employment. 
 (f) Executive acknowledges and agrees that NIC’s businesses is intensively competitive, Executive’s employment and service required Executive to have access to and knowledge of NIC’s
confidential information and trade secrets, the Customers have required a significant degree of difficulty, number of years, an amount of money by NIC to acquire and develop, Executive has had significant personal contact with and knowledge of the
Customers, and the duration of the Customer’s association with NIC and the continuity of the Customer-NIC relationships are of the utmost importance to the success of NIC’s business. Executive also acknowledges and agrees that the business
of NIC is conducted nationally and internationally and agrees that the provisions in the foregoing sentence will operate throughout the United States of America or its territories, Canada, Mexico, Brazil, United Kingdom, Germany, South Africa,
United Arab Emirates, India and the People’s Republic of China, and any other country in which NIC conducts business at the time of Executive’s termination of employment and service with NIC. Executive further acknowledges and agrees that
Executive holds a senior management role at NIC and that, if Executive were to hold a management position with a competitor of NIC, Executive would be able to exploit unfairly Confidential Information or Customer-NIC relationships. Accordingly,
Executive acknowledges and agrees that the foregoing covenants set forth in this Section 7 are reasonable, including as to scope, activity, subject, geography and duration, and that irreparable injury will result to NIC in the event of any
violation by Executive of these covenants, and that said covenants are a condition precedent to the Company’s and NAVISTAR, INC.’s willingness to enter into this Agreement. In the event that any of the foregoing covenants are violated, the
Company and NAVISTAR, INC. shall be entitled, in addition to any other remedies and damages available under law, equity, or otherwise, to recoup, offset, suspend, or terminate any or all separation payments and benefits previously paid or otherwise
subsequently owed to Executive under this Agreement, to injunctive relief from any court of competent jurisdiction to restrain the violation of such covenants, and/or to prevent any threatened violation by Executive, and/or by any person or persons
acting for, or in concert with, Executive in any capacity whatsoever, without posting a bond or other security. In addition, if such a court deems that any of the foregoing covenants are unreasonable, the Parties agree that the maximum permissible
period and scope prescribed by such court shall be substituted for the stated period and scope. 
 8. Non-Disparagement.
At all times during the Services Term and following termination of employment and service for any reason, members of the Board and executive officers of each of the Company and NAVISTAR, INC. shall refrain from publishing, providing or soliciting,
directly or indirectly, any oral or written statements about Executive that may be considered disparaging, slanderous, libelous, derogatory or defamatory, or that may reasonably be expected to injure the reputation of Executive, provided that such
restriction shall not limit such persons’ ability to provide truthful testimony as required by law or any judicial or administrative process. 

  
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 9. Limitation on Payments. 

(a) Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit received or to be received by
Executive (including any payment or benefit received in connection with a Change in Control or the termination of the Executive’s employment or service, whether pursuant to the terms of this Agreement or any other plan, arrangement or
agreement) (all such payments and benefits, including the payments and benefits under Sections 3 or 6 of this Agreement, being hereinafter referred to as the “Total Payments”) would be subject (in whole or part), to the excise tax imposed
under Section 4999 of the Code (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, arrangement or agreement, the cash
severance payments shall first be reduced, and the noncash severance payments shall thereafter be reduced, to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such
Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to
such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of
Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments). The Total Payments
shall be reduced by the Company in its reasonable discretion in the following order: (A) reduction of any cash payment, excluding any cash payment with respect to the acceleration of equity awards, that is otherwise payable to Executive that is
exempt from Section 409A, (B) reduction of any other payments or benefits otherwise payable to Executive on a pro-rata basis or such other manner that complies with Section 409A and (C) reduction of any payment with respect to
the acceleration of equity awards that is otherwise payable to Executive that is exempt from Section 409A. 
 (b) For
purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as
not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account, (ii) no portion of the Total Payments shall be taken into account which, in the written opinion of independent auditors
of nationally recognized standing (“Independent Advisors”) selected by the Company, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of
Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually
rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the Base Amount (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation, and (iii) the value of any non cash benefit or
any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. 

10. No Mitigation/Offset. In the event of any termination of employment and service hereunder, Executive shall be under no
obligation to seek other employment, and there shall be no offset against any amounts due Executive under this Agreement on account of any remuneration attributable to any subsequent employment that Executive may obtain. The amounts payable
hereunder shall not be subject to set off, counterclaim, recoupment or defense. The preceding sentence shall not limit the Company’s right to enforce the recoupment, offset, suspension and termination provisions set forth in Section 7
(c) above or the repayment provision in Section 15 below. 
 11. Indemnification. Subject to applicable law,
Executive will be provided indemnification to the maximum extent permitted by the Company’s bylaws and Certificate of Incorporation, including coverage, if applicable, under any directors and officers insurance policies, with such
indemnification to be determined by the Board or any of its committees in good faith based on principles consistently applied (subject to such limited exceptions as the Board may approve in cases of hardship) and on terms no less favorable than
provided to any other Company executive officer or director. 

  
 10 

 12. Assignment. This Agreement will be binding upon and inure to the benefit of
(a) the heirs, executors, and legal representatives of Executive upon Executive’s death as well as any beneficiaries duly designated by Executive prior to his death in accordance with the terms hereof, and (b) any successor of the
Company and NAVISTAR, INC. Any such successor of the Company and NAVISTAR, INC. will be deemed substituted for the Company and NAVISTAR, INC. under the terms of this Agreement for all purposes. For this purpose, “successor” means any
person, firm, corporation, or other business entity which at any time, whether by purchase, merger, or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company or NAVISTAR, INC. The Company and
NAVISTAR, INC. shall require their respective successors to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company and NAVISTAR, INC. would be required to perform it if no such succession had
taken place. Notwithstanding the foregoing, the Company and NAVISTAR shall remain, with such successor, jointly and severally liable for all of their obligations hereunder. Except as herein provided, this Agreement may not otherwise be assigned by
the Company or NAVISTAR, INC. and any attempted assignment in contravention hereof will be null and void. Executive may designate one or more persons or entities as the primary or contingent beneficiaries of any amounts to be received under this
Agreement. Such designation must be in the form of a signed writing reasonably acceptable to the Board or the Board’s designee. Executive may make or change such designation at any time. Except as approved by the Board or the Board’s
designee, none of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. Any other attempted assignment, transfer,
conveyance, or other disposition of Executive’s right to compensation or other benefits will be null and void. 
 13.
Notices. All notices, requests, demands, and other communications called for hereunder will be in writing and will be deemed given (a) on the date of delivery if delivered personally, (b) one (1) day after being sent overnight
by a well established commercial overnight service, or (c) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the Parties or their successors at the following addresses, or
at such other addresses as the Parties may later designate in writing in accordance with the terms of this Section 13: 
  

	
	If to the Company, NIC, or NAVISTAR, INC.:
	
	 2706 Navistar Drive
 Lisle,
Illinois 60532
 Attn: General Counsel

	
	With a copy (not constituting notice) to:
	
	 Thomas A. Cole
 Sidley Austin
LLP
 One South Dearborn
 Chicago,
Illinois 60603

	
	If to Executive:
	
	 at the last residential address known by
 the Company. 
  
 With
a copy (not constituting notice) to:

	
	 Edward C. Dawda
 Dawda, Mann,
Mulcahy & Sadler, PLC
 39533 Woodward Avenue, Suite 200
 Bloomfield Hills, Michigan 48304

  
 11 

 14. Severability. If any provision hereof becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable, or void, this Agreement will continue in full force and effect without said provision, unless such omission would substantially impair the rights or benefits of any Party hereto. 

15. Enforcement. Each Party agrees that any controversy or claim arising out of or relating to this Agreement or the alleged
breach hereof shall be instituted in the United States District Court for the Northern District of Illinois, or if that court does not have or will not accept jurisdiction, in any court of general jurisdiction in the State of Illinois, and Executive
and the Company and NAVISTAR, INC. hereby consent to the personal and exclusive jurisdiction of such court(s) and hereby waive any objection(s) that any such Party may have to personal jurisdiction, the laying of venue of any such proceedings and
any claim or defense of inconvenient forum. 
 Any award shall be payable to Executive no later than the end of the
Executive’s first taxable year in which the Company and NAVISTAR, INC. either concede the amount (or portion of the amount) payable or is required to make payment pursuant to a judgment by a court, and shall include interest on any amounts due
and payable to Executive from the date due to the date of payment, calculated at one hundred and ten percent (110%) of the prime rate in effect at the Northern Trust Company (or any successor thereto) in the first of each month. 

If it is necessary or desirable for Executive to retain legal counsel or incur other costs and expenses in connection with the
enforcement of any or all of Executive’s rights under this Agreement, the Company and NAVISTAR, INC. shall, within thirty (30) days after receipt of an invoice certifying payment by Executive of such attorney fees, or payment of such other
costs and expenses, reimburse Executive’s reasonable attorneys’ fees and costs and such other expenses, including expenses of any expert witnesses, in connection with the enforcement of said rights; provided, that to the extent (and only
to the extent) such expenses are subject to Section 409A, in no event shall any payment of Executive’s fees, costs, and expenses be made after the last day of Executive’s taxable year following the taxable year in which the expense
was incurred; provided, further, that Executive shall repay any such advance of fees, costs, and expenses (and no additional advances or reimbursements shall be made) (i) if there is a specific judicial finding that Executive’s request to
litigate was frivolous, unreasonable or without foundation; (ii) if it has been finally determined that Executive’s termination of employment for Cause was proper; or (iii) if the Board determines in good faith that as of the date of
Executive’s termination of employment and service, grounds for an involuntary termination for Cause had existed. 
 16.
Integration; Modification; Waiver. This Agreement, together with the option award agreements described in Section 3(c) hereof, represents the entire agreement and understanding between the parties as to the subject matter herein and
supersedes all prior or contemporaneous agreements whether written or oral. For the avoidance of doubt, upon the execution of this Agreement by the Parties, Executive’s Executive Severance Agreement shall be terminated and of no further effect.
No waiver, alteration, or modification of any of the provisions of this Agreement or the option award agreements will be binding unless in a writing that is signed by duly authorized representatives of the Parties. In entering into this Agreement,
no Party has relied on or made any representation, warranty, inducement, promise or understanding that is not in this Agreement. 
 17. Waiver of Breach. The waiver of a breach of any term or provision of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or
subsequent breach of this Agreement. 
 18. Headings; Construction. All captions and Section headings used in this
Agreement are for convenient reference only and do not form a part of this Agreement and shall not be applied to the construction of this Agreement. No provision of this Agreement shall be interpreted or construed against any Party because that
Party or its legal representative drafted that provision. Unless the context of this Agreement clearly requires otherwise: (a) references to the plural include the singular, the singular the plural, and the part the whole, (b) references
to one gender include all genders, (c) “or” has the inclusive 

  
 12 

 
meaning frequently identified with the phrase “and/or,” (d) “including” has the inclusive meaning frequently identified with the phrase “including but not limited
to” or “including without limitation,” (e) references to “hereunder,” “herein” or “hereof” relate to this Agreement as a whole, and (f) the terms “dollars” and “$” refer to
United States dollars. Section, subsection, exhibit and schedule references are to this Agreement as originally executed unless otherwise specified. Any reference herein to any statute, rule, regulation or agreement, including this Agreement, shall
be deemed to include such statute, rule, regulation or agreement as it may be modified, varied, amended or supplemented from time to time. Any reference herein to any person shall be deemed to include the heirs, personal representatives, successors
and permitted assigns of such person. 
 19. Tax Withholding. All payments made pursuant to this Agreement will be
subject to any required withholding of applicable taxes. 
 20. 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 Agreement, payable upon submission of the billing statement or paid receipt for such services rendered by Executive’s counsel. 

21. Governing Law. This Agreement 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. 
 22. Acknowledgment. Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully
read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement. 

23. Internal Revenue Code Section 409A. Notwithstanding any provision of this Agreement, this Agreement shall be construed
and interpreted to comply with Section 409A. For purposes of the limitations on nonqualified deferred compensation under Section 409A, each payment of compensation under the Agreement shall be treated as a separate payment of compensation
for purposes of applying the Section 409A deferral election rules and the exclusion from Section 409A for certain short-term deferral amounts. Notwithstanding anything contained herein to the contrary, Executive shall not be considered to
have terminated employment and service with the Company for purposes of entitlement to any payments under this Agreement which are subject to Section 409A until the Executive would be considered to have incurred a “separation from
service” from the Company within the meaning of Section 409A. Any amounts payable solely on account of an involuntary separation from service within the meaning of Section 409A shall be excludible from the requirements of
Section 409A, either as involuntary separation pay or as short-term deferral amounts (e.g., amounts payable under the schedule prior to March 15 of the calendar year following the calendar year of involuntary separation) to the maximum
possible extent. If, as of the Date of Termination, Executive is a “specified employee” as determined by the Company, then to the extent that any amount or benefit that would be paid or provided to Executive under this Agreement within six
(6) months of his “separation from service” (as determined under Section 409A) constitutes an amount of deferred compensation for purposes of Section 409A and is considered for purposes of Section 409A to be owed to
Executive by virtue of his separation from service, then to the extent necessary to avoid the imposition of taxes under Section 409A, such amount or benefit will not be paid or provided during the six-month period following the date of
Executive’s separation from service and instead shall be paid or provided on the first business day that is at least seven (7) months following the date of Executive’s separation from service, together with interest thereon from the
date(s) originally due. Further, any reimbursements or in-kind benefits provided under the Agreement shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (i) any
reimbursement is for expenses incurred during the period of time specified in the Agreement, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided during a calendar year may not affect the expenses eligible for
reimbursement, or in-kind benefits to be provided, in any other 

  
 13 

 
calendar year, (iii) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred, and
(iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. For purposes of this Agreement, notwithstanding any other provision of this Agreement to the contrary, the Executive’s
employment and service shall be deemed to have terminated only if (i) Executive is not, immediately after such event, employed by the Company, or any other person with whom Executive’s legal employer would be considered a single employer
under Section 414(b) or 414(c) of the Code (collectively the “Controlled Group”), and (ii) to the extent (and only to the extent) that a “payment” (as defined in Section 409A) provided to Executive under this
Agreement is subject to Section 409A, Executive shall not be considered to have terminated employment with the Company for purposes of this Agreement until Executive would be considered to have incurred a “separation from service”
within the meaning of Section 409A. The termination of Executive’s employment by any member within the Controlled Group shall be deemed to be a termination by the Company for purposes of this Agreement if the conditions imposed by the
immediately preceding sentence are met. 
 24. Counterparts. This Agreement 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.

 [Signature Page Follows] 

  
 14 

 IN WITNESS WHEREOF, each of the Parties has executed this Agreement, in the case of the Company and
NAVISTAR, INC. by a duly authorized officer, on the day and year written below. 
  

					
	NAVISTAR INTERNATIONAL CORPORATION	 		  	
			
	 /s/ Andrew J. Cederoth
	 		  	
			
	 By: Andrew J. Cederoth
 Title:
Executive Vice President and
           Chief Financial Officer
	 		  	Date: April 22, 2013
			
	NAVISTAR, INC.	 		  	
			
	 /s/ Andrew J. Cederoth
	 		  	
			
	 By: Andrew J. Cederoth
 Title:
Executive Vice President and
           Chief Financial Officer
	 		  	Date: April 22, 2013
			
	EXECUTIVE:	 		  	
			
	 /s/ Troy A. Clarke
	 		  	
	Troy A. Clarke	 		  	Date: April 22, 2013

  
 15 

 EXHIBIT A 
 Form of Navistar International Corporation 2013 Performance Incentive Plan 
 Stock Option Agreement 
  

	1.	Grant of Option. Pursuant to the terms of that certain Employment and Services Agreement (the “Employment Agreement”), effective April 15,
2013, by and among you, Navistar International Corporation, a Delaware corporation (the “Corporation”), and Navistar, Inc., a Delaware corporation and the principal operating subsidiary of the Corporation, the Corporation hereby grants to
the Optionee named in the Notice of Stock Option Grant (the “Notice of Grant”) the right and option (this “Option”) to purchase all or any part of an aggregate of the total number of shares of Common Stock (the
“Shares”) set forth in the Notice of Grant at the exercise price per share set forth in the Notice of Grant (the “Exercise Price”) subject to the terms, definitions, restrictions, and conditions of the 2013 Performance Incentive
Plan, as amended (the “Plan”) or any successor plan, which is incorporated into this Stock Option Agreement (the “Agreement”) by reference. Capitalized terms used but not otherwise defined herein shall have the meaning ascribed
to them in the Plan. 

 As designated in the Notice of Grant this Option is a Non-Qualified Stock Option
(“NQO”) and is not intended to be treated as a stock option described in subsection (b) of Section 422 of the Code. 
  

	2.	Acceptance of Terms and Conditions. By accepting this Option, the Optionee agrees to be bound by the terms and conditions of this Agreement, the Plan and
any and all conditions established by the Corporation in connection with Stock Options issued under the Plan, and understands that this Option does not confer any legal or equitable right (other than those constituting the Option itself) against the
Corporation or any of its subsidiaries (collectively, the “Navistar Companies”), directly, or indirectly, or give rise to any cause of action at law or in equity against the Navistar Companies. 

 

	3.	Term of Option. The term of this Option shall be for a period of (7) seven years from the Date of Grant set forth in the Notice of Grant and, subject
to the terms and conditions of the Plan, provided, however that this Option shall expire on the Expiration Date set forth in the Notice of Grant and must be exercised, if at all, on or before the Expiration Date. 

 

	4.	Exercise of Option. 

  

	 	a.	Right to Exercise. This Option may be exercised, at any time or from time to time during said term, in accordance with the Vesting Schedule set out in the
Notice of Grant and the applicable provisions of the Plan and this Agreement as to all full shares that have become so purchasable. Except as otherwise provided in the Plan or this Agreement, the Option may not be exercised unless the Optionee
shall, at the time of exercise be an Employee of the Navistar Companies. 

  
 A-1

	 	b.	Method of Exercise. Subject to the terms and conditions contained in this Agreement and the Plan, the Option may be exercised by giving notice as provided
in instructions issued by the Corporate Secretary for the exercise of options generally, which instructions may provide for the use of agents, including stock brokers, to effect exercise of options, or in the absence of such instructions, by written
notice to the Corporate Secretary of the Corporation at the location of its principal office at the time of exercise, which is currently located at 2701 Navistar Drive, Lisle, Illinois 60532. Such notice shall state the election to exercise the
Option and the number of Shares in respect of which it is being exercised, shall be signed by the person or persons so exercising the Option and shall be accompanied by instructions to the Corporate Secretary to exercise, in whole or in part,
through a cashless exercise, net-exercise (as defined in the Plan), or other arrangements through agents, including stockbrokers, under arrangements established by the Corporation for the exercise of the Option, or, if not covered by such
instructions, for payment of the full purchase price of said Shares by cash, including a personal check made payable to the Corporation, or by delivering at Fair Market Value on the date of exercise unrestricted Common Stock already owned by the
Optionee, or by any combination of cash and Common Stock, and in either case, by payment to the Corporation of any withholding tax. In the event that the Option shall be exercised, pursuant to Section 4 hereof, by any person or persons other
than the Optionee, such notice shall be accompanied by appropriate proof of the right of such person or the persons to exercise the Option. The date of exercise of the Option shall be the date on which the aforesaid written notice, properly executed
and accompanied as aforesaid, is received under the Corporate Secretary’s instructions or by the Corporate Secretary. The payment due to the Optionee upon exercise of the Option will be settled solely in Common Stock. All Shares that shall be
purchased upon the exercise of the Option as provided herein shall be fully paid and non-assessable. 

  

	 	c.	Method of Payment. Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee:
(i) cash; (ii) check; (iii) consideration received by the Corporation under a cashless exercise program; or (iv) surrender of other shares of Common Stock of the Corporation which (x) in the case of shares acquired upon
exercise of an option or otherwise, have been owned by the Optionee for such period of time (if any) as may be required to avoid a charge to the Corporations earnings, and (y) have a Fair Market Value on the date of surrender equal to the
aggregate exercise price of the exercised Shares. 

  

	 	d.	Tax Withholding Obligations. As a condition to the exercise of this Option, the Optionee agrees to make adequate provision for federal, state, local
statute, ordinance, rule, regulation or any other tax withholding obligations, if any, which arise upon the exercise of the Option or disposition of Shares subject to the Option, whether by withholding, direct payment to the Corporation, or
otherwise. Shares which otherwise would be delivered to the holder of the Option may be delivered, at the election of the holder, to the Corporation in payment of federal, state and/or local withholding taxes due in connection with an exercise.

  
 A-2

	 	e.	Transfer of Shares. No Shares will be issued pursuant to the exercise of this Option unless such issuance and exercise compiles with relevant provisions
of law (including the Federal and State securities laws) and the requirements of any stock exchange upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the exercised Shares shall be considered transferred to
the Optionee on the date the Option is exercised with respect to such exercised Shares. 

  

	5.	Termination of Option and Vesting and Exercise of Option Following Termination of Employment. 

 

	 	a.	Maximum Term of Option. In no event may the Option be exercised, in whole or in part, after the expiration date set forth in the Notice of Grant (the
“Expiration Date”). 

  

	 	b.	Termination of Employment by the Navistar Companies without Cause or by Optionee for Constructive Termination. If Optionee’s employment with the
Navistar Companies terminates by reason of (i) the Navistar Companies’ termination of Optionee’s employment other than for Cause (as defined in the Employment Agreement), death, or Disability (as defined in Section 5(c) below) or
(ii) by Optionee due to Constructive Termination (as defined in the Employment Agreement), then, in any such case, a pro rata portion of the Option shall vest, which for this purpose shall be determined based on a fraction, the numerator of
which is the number of whole months from the Date of Grant through the Date of Termination (as defined in the Employment Agreement), or if one or more Vesting Dates has occurred, the number of whole months from the most recent Vesting Date through
the Date of Termination (in each case including the month in which the termination occurs if such termination occurs on or after the 15th day of that month) and the denominator of which is (1) 36, if the termination occurs prior to the first
anniversary of the Grant Date, (2) 24, if the termination occurs on or after the first anniversary of the Grant Date but prior to the second anniversary of the Grant Date or (3) 12, if the termination occurs on or after the second
anniversary of the Grant Date but prior to the third anniversary of the Grant Date. The Shares, to the extent vested on the Date of Termination or which become vested pursuant to this Section 5(b), may be exercised by the Optionee until and
including the earlier to occur of (i) the date which is twelve (12) months after the Date of Termination and (ii) the Expiration Date. 

  

	 	c.	Termination of Employment Due to Disability. In the event of a termination of employment due to total and permanent disability, as defined by the
Corporation’s long term disability programs (“Disability”), the Optionee, may exercise the Option, to the extent the Option is exercisable or becomes exercisable under its terms, at any time within (3) three years after such
termination or, if later, the date on which the Option becomes exercisable with respect to such Shares, but not after the Expiration Date. 

  

	 	d.	Termination of Employment Due to Death. In the event of the death of the Optionee, any Option exercisable under this Agreement may be exercised by a
legatee, or by the personal representatives or distributees, until and including the 

  
 A-3

 earlier to occur of (i) the date which is two (2) years after the date of
Optionee’s death and (ii) the Expiration Date. If death occurs while employed by the Navistar Companies or during the (3) three year period specified in Section 5(c) above, the Option may be exercised to the extent of the
remaining Shares covered by the Option whether or not such Shares were exercisable at the date of death. If death occurs during the (12) twelve month period specified in Sections 5(b), 5(e) or 5(g), the Option may be exercised to the extent of
the number of Shares that were exercisable at the date of death. 
  

	 	e.	Termination of Employment by Optionee Other Than Due to Constructive Termination. In the event the Optionee terminates his employment with the Navistar
Companies for any reason other than Constructive Termination, then the Option, to the extent vested on the Date of Termination, may be exercised by the Optionee until and including the earlier to occur of (i) the date which is twelve
(12) months after the Date of Termination and (ii) the Expiration Date. 

  

	 	f.	Termination of Employment by the Navistar Companies for Cause. In the event the Optionee’s employment is terminated by the Navistar Companies due to
Cause, the Option, whether or not vested, shall terminate immediately upon such termination of employment. 

  

	 	g.	Change in Control. In the event of the termination of the Optionee’s employment by the Navistar Companies without Cause or by the Optionee for
Constructive Termination, in either case, during the twenty-four (24) months after the date of the then-most recent Change in Control (or during the ninety (90) days preceding the date of a Change in Control if Executive’s employment
and service with the Navistar Companies is terminated by the Navistar Companies without Cause in contemplation of such Change in Control), then the Option shall be 100% vested upon such termination of employment and the Option may thereafter be
exercised by Optionee until and including the earlier to occur of (i) the date which is twelve (12) months after the Date of Termination and (ii) the Expiration Date. Change in Control shall have the meaning ascribed to such term in
the Employment Agreement. 

  

	6.	Non Transferability of Option. The Option shall not be transferable otherwise than by will or the laws of descent and distribution, and the Option shall
be exercisable, during the lifetime of the Optionee, only by the Optionee. The designation of a beneficiary does not constitute a transfer. Without limiting the generality of the foregoing, the Option may not be assigned, transferred (except as
aforesaid), pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the
Option contrary to the provisions hereof, and the levy of any execution, attachment, or similar process upon the Option shall be null and void and without effect. The terms of the Option shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee. 

  

	7.	Rights of a Stockholder. The Optionee shall have none of the rights of a stockholder with respect to any of the Shares of Common Stock subject to the
Option until such Shares shall be issued upon the exercise of the Option. 

  
 A-4

	8.	Extraordinary Item; Coordination with Local Law. By voluntarily acknowledging and accepting this Agreement, the Optionee acknowledges and understands that
(a) the Option is an extraordinary item relating to compensation for future services to the Navistar Companies and are not under any circumstances to be considered compensation for past services; (b) the Option is not part of normal or
expected compensation or salary for any purposes, including, without limitation, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, service-based awards, pension or retirement benefits or similar
payments; and (c) notwithstanding any terms or conditions of the Plan or this Agreement to the contrary, in the event of the Optionee’s involuntary termination of employment with the Navistar Companies, the Optionee’s right to receive
future Options under the Plan and to vest in the Options shall terminate as of the date that the Optionee is no longer actively employed and will not be extended by any notice period under local law (e.g., active employment would not include a
period of “garden leave” or similar period pursuant to local law); provided, however, that to the extent the Optionee retains any right to continue to vest in the Options and to exercise the Options pursuant to and in accordance with the
Plan and this Agreement following such termination, the right to so vest and exercise shall be measured from the date the Optionee terminates active employment with the Navistar Companies and shall not be extended by any notice period under local
law. 

  

	9.	No Guarantee of Continued Service. Optionee acknowledges and agrees that the vesting of Shares pursuant to the vesting schedule in the Notice of Grant is
earned only by continuing employment as CEO at the will of the Corporation (not through the act of being hired, being granted this Option or acquiring Shares under this Agreement). The Optionee further acknowledges and agrees that nothing in the
Agreement, nor in the Plan which is incorporated in this Agreement by reference, shall confer upon the Optionee any right with respect to continuation as the Corporation’s CEO, nor shall it interfere in any way with his right or the Navistar
Companies right to terminate his employment relationship at any time, with or without cause. 

  

	10.	Non-Competition. In consideration of the Option granted under this Agreement which may become exercisable pursuant to the Vesting Schedule set out in the
Notice of Grant above, the Optionee agrees to be bound by the covenants of this Section 10. The Optionee acknowledges that the covenants contained within this Section 10 are essential elements of this Agreement, and that, but for the
agreement of the Optionee to comply with such covenants, the Corporation would not have entered into this Agreement. The right to exercise this Option shall be made with respect to the covenants of this Section 10 at such time(s) when all other
terms and conditions of the Agreement and the Plan have been satisfied. The Optionee agrees that he shall: 

 At
all times during the vesting period and for a period of twenty-four (24) months immediately following termination of employment and service for any reason, not, directly or indirectly (whether as owner, principal, agent, partner, officer,
director, employee, consultant, investor, lender or otherwise), provide services to any other business or organization anywhere in the United States of America or its territories, Canada, Mexico, Brazil, United Kingdom, Germany, South Africa, United
Arab Emirates, India and the People’s Republic of China, or any other country in which the Navistar Companies, directly or indirectly, including through a joint venture, strategic alliance or other similar arrangement, conducts business at the
time of the Optionee’s termination of employment and service that competes with the business of the Navistar Companies by (1) manufacturing, selling or servicing medium or heavy duty automotive vehicles with diesel powered engines
(including commercial trucks, commercial buses, school buses, recreational vehicles, and military vehicles), parts or components for such vehicles, diesel 

  
 A-5

 powered engines for such vehicles, parts or components for diesel powered engines for such
vehicles, (2) providing financing or financing-related services related to any such manufacturing, selling or servicing activities specified in clause (1), or (3) providing other services or products which are the same as or substantially
similar to those provided by the Navistar Companies at the time of the Optionee’s termination of employment and service; provided, however, that such restriction shall not prohibit Optionee’s purchase or ownership of less than five percent
(5%) of the outstanding voting stock of a publicly-held company so long as such ownership is passive in nature; provided, further, notwithstanding anything in this Agreement to the contrary, (y) the ownership by Optionee of a dealership
(or group of dealerships) for the retail sale and service of medium or heavy duty automotive vehicles with diesel powered engines (including commercial trucks, commercial buses, school buses, recreational vehicles, and military vehicles), parts or
components for such vehicles, diesel powered engines for such vehicles, and parts or components for diesel powered engines for such vehicles, and (z) the providing of financing or financing related services to customers in connection with the
business described in above clause (y), shall not be deemed to be a violation of this Agreement and particularly, of this Section 10. 
 The Optionee acknowledges and agrees that the foregoing covenants set forth in this Section 10 are reasonable, including without limitation, as to scope, activity, subject, geography and duration,
and that irreparable injury will result to the Navistar Companies in the event of any violation by the Optionee of these covenants, and that said covenants are a condition precedent to the Corporation and the Navistar Companies willingness to enter
into this Agreement and grant the Option set forth in this Agreement. In the event that any of the foregoing covenants are violated, the Corporation and the Navistar Companies shall be entitled, in addition to any other remedies and damages
available under law, equity, or otherwise, to recoup, offset, suspend, or terminate this Option and benefits previously paid or otherwise subsequently owed to the Optionee under this Agreement, to injunctive relief from any court of competent
jurisdiction to restrain the violation of such covenants, and/or to prevent any threatened violation by the Optionee, and/or by any person or persons acting for, or in concert with, the Optionee in any capacity whatsoever, without posting a bond or
other security. In addition, if such a court deems that any of the foregoing covenants are unreasonable, the Corporation and Optionee agree that the maximum permissible period and scope prescribed by such court shall be substituted for the stated
period and scope. 
  

	11.	Consent to Transfer Personal Data. By accepting this Agreement, the Optionee voluntarily acknowledges and consents to the collection, use, processing and
transfer of personal data as described in this Section 11. The Optionee is not obliged to consent to such collection, use, processing and transfer of personal data. However, failure to provide the consent may affect the Optionee’s ability
to participate in the Plan. The Corporation holds certain personal information about the Optionee, which may include the Optionee’s name, home address and telephone number, facsimile number, e-mail address, family size, marital status, sex,
beneficiary information, emergency contacts, passport/visa information, age, language skills, drivers license information, date of birth, birth certificate, social security number or other employee identification number, nationality, C.V. (or
resume), wage history, employment references, job title, employment or severance contract, current wage and benefit information, personal bank account number, tax related information, plan or benefit enrollment forms and elections, equity or benefit
statements, any shares of stock or directorships in the Corporation, details of all options, RSUs, or any other entitlements to shares of stock awarded, canceled, purchased, vested, unvested or outstanding in the Optionee’s favor, for the
purpose of managing and administering the Plan 

  
 A-6

 (“Data”). The Navistar Companies will transfer Data amongst themselves as
necessary for the purpose of implementation, administration and management of the Optionee’s participation in the Plan, and the Corporation may further transfer Data to any third parties assisting the Corporation in the implementation,
administration and management of the Plan. These recipients may be located throughout the world, including the United States of America. The Optionee authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or
other form, for the purposes of implementing, administering and managing the Optionee’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding
of shares of Common Stock or cash on the Optionee’s behalf to a broker or other third party with whom the Optionee may elect to deposit any lump sum cash payment or shares of Common Stock acquired pursuant to the Plan. The Optionee may, at any
time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting the Corporate Secretary for the Corporation; however, withdrawing the Optionee’s consent may affect the Optionee’s ability
to participate in the Plan. 
  

	12.	Electronic Delivery. The Corporation may, in its sole discretion decide to deliver any documents related to Stock Options awarded under the Plan or future
Stock Options that may be awarded under the Plan by electronic means or request Optionee’s consent to participate in the Plan by electronic means. Optionee hereby consents to receive such documents by electronic delivery and agrees to
participate in the Plan through an on-line or electronic system established and maintained by the Corporation or another third party designated by the Corporation. 

 

	13.	Amendment. Except as otherwise specified in this Agreement, this Agreement may be amended only by a writing executed by the Corporation and the Optionee
that specifically states that it is so amending this Agreement. Notwithstanding the foregoing, this Agreement may be amended by the Committee, without the consent of the Optionee, by a writing that specifically states that it is so amending this
Agreement, so long as a copy of such amendment is delivered to the Optionee, and provided that no such amendment that eliminates or adversely affects any right or obligation of the Optionee hereunder may be made without the Optionee’s consent.
Without limiting the foregoing, the Committee reserves the right to change, by written notice to the Optionee, the provisions of the this Agreement in any way it may deem necessary or advisable to carry out the purpose of the Agreement as a result
of a mistake of fact or any change in applicable laws or regulations or any future law, regulation, ruling or judicial decisions, provided that any such change shall be applicable only to the Options that are then subject to terms or conditions of
this Agreement. 

  

	14.	Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable by appropriate authority under the law of any
jurisdiction applicable to this Agreement, the same shall not affect, in any respect whatsoever, the validity, legality, or enforceability of any other provision of this Agreement, and this Agreement shall continue, to the fullest extent permitted
by law, as if such invalid, illegal, or unenforceable provision were omitted and/or modified by such appropriate authority so as to preserve its validity, legality, or enforceability, unless such omission or modification would substantially impair
the rights or benefits under this Agreement of the Optionee or the Corporation. 

  

	15.	Construction. A copy of the Plan has been given to the Optionee and additional copies of the Plan are available upon request during normal business hours
at the principal executive offices of the Corporation or can be requested in writing sent to the Corporate Secretary, Navistar International Corporation, 2701 Navistar Drive, Lisle, Illinois 60532. To the extent that any 

  
 A-7

 provisions of this Agreement violate or are inconsistent with any provisions of the Plan,
this Agreement shall govern and any inconsistent provision in the Plan shall be of no force or effect. Optionee acknowledges that the Plan may be amended, prospectively or retroactively in order to comply with the requirements of the Internal
Revenue Code, and Optionee agrees to comply with the terms of the Plan as so amended from time to time. 
  

	16.	Interpretations. Any dispute, disagreement or question which arises under, or as a result of, or in any way relates to the interpretation, construction or
application of the terms of this Agreement or the Plan will be determined and resolved by the Committee or its authorized delegate. Such determination or resolution by the Committee or its authorized delegate will be final, binding and conclusive on
all persons for all purposes. 

  

	17.	Successors and Assigns. This Agreement shall be binding upon and, subject to the conditions hereof, inure to the benefit of the Corporation, its
successors and assigns, and the Optionee and their successors and assigns. 

  

	18.	Entire Understanding. This Agreement embodies the entire understanding and agreement of the parties in relation to the subject matter hereof, and no
promise, condition, representation or warranty, expressed or implied, not herein stated, shall bind either party hereto. 

  

	19.	Governing Law. Subject to the terms of the Plan, all matters arising under this Agreement including matters of validity, construction and interpretation,
shall be governed by the internal laws of the State of Illinois, without regard to the conflicts of law provisions of that State or any other jurisdiction. The Optionee and the Corporation agree that all claims in respect of any action or proceeding
arising out of or relating to this Agreement shall be heard or determined in any state or federal court sitting in Illinois, and the Optionee agrees to submit to the jurisdiction of such courts, to bring all such actions or proceedings in such
courts and to waive any defense of inconvenient forum to such actions or proceedings. A final judgment in any action or proceeding so brought shall be conclusive and may be enforced in any manner provided by law. 

 

	20.	Signature. This Agreement shall be deemed executed by the Corporation and the Optionee upon execution by such parties (or upon the Optionee’s online
acceptance) of the Notice of Grant. 

  
 A-8

 EXHIBIT B 
 Form of Navistar International Corporation 2013 Performance Incentive Plan 
 Non-Qualified Performance-Based Stock Option Agreement 
  

	1.	Grant of Option. Pursuant to the terms of that certain Employment and Services Agreement (the “Employment Agreement”), effective April 15,
2013, by and among you, Navistar International Corporation, a Delaware corporation (the “Corporation”), and Navistar, Inc., a Delaware corporation and the principal operating subsidiary of the Corporation, the Corporation hereby grants to
the Optionee named in the Notice of Performance Stock Option Grant (the “Notice of Grant”) the right and option (this “Option”) to purchase all or any part of the maximum number of shares of Common Stock (the “Shares”)
set forth in the Notice of Grant at the exercise price per share set forth in the Notice of Grant (the “Exercise Price”) subject to satisfying the vesting and performance conditions set forth on Exhibit A attached hereto and the
terms, definitions, restrictions, and conditions of the 2013 Performance Incentive Plan (the “Plan”) or any successor plan, which is incorporated into this Non-Qualified Performance-Based Stock Option Agreement (the “Agreement”)
by reference. Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Plan. 

 As designated in the Notice of Grant this Option is a Non-Qualified Stock Option (“NQO”) and is not intended to be treated as a stock option described in subsection (b) of Section 422
of the Code. 
  

	2.	Acceptance of Terms and Conditions. By accepting this Option, the Optionee agrees to be bound by the terms and conditions of this Agreement, the Plan and
any and all conditions established by the Corporation in connection with Stock Options issued under the Plan, and understands that this Option does not confer any legal or equitable right (other than those constituting the Option itself) against the
Corporation or any of its subsidiaries (collectively, the “Navistar Companies”), directly, or indirectly, or give rise to any cause of action at law or in equity against the Navistar Companies. 

 

	3.	Term of Option. Subject to the Option satisfying the vesting and performance conditions set forth on Exhibit A attached hereto, and all other terms
and conditions of the Plan and this Agreement, the term of this Option shall be for a period of (7) seven years from the Date of Grant set forth in the Notice of Grant and shall expire on the Expiration Date set forth in the Notice of Grant and
must be exercised, if at all, on or before the Expiration Date. Notwithstanding any other provisions governing expiration of the Option provided in the Plan and this Agreement, if any of the performance conditions set forth on Exhibit A are
not satisfied, then the portion of this Option subject to such performance conditions shall expire at the end of the corresponding Performance Period. 

  

	4.	Vesting. Except as otherwise provided herein, the right of the Optionee to exercise this Option, if any, shall become vested based on the certification by
the Compensation Committee of the Board of Directors of the Corporation of the achievement of the performance conditions set forth in Exhibit A attached hereto, provided, however, that vesting shall occur only if the Optionee remains
continuously employed by and provides services to the Corporation as CEO from the Date of Grant of the Option until the applicable Vesting Date. Subject to Section 6 below, at the end of each Performance Period, the Corporation will calculate
the actual number of Options that vested pursuant to the Agreement, if any, based on actual performance during the applicable Performance Period and notify Optionee. 

 

	5.	Exercise of Option.  

  

	 	a.	Right to Exercise. Subject to the Option satisfying the vesting and performance conditions set forth in this Agreement and Exhibit A, this Option
may be exercised at any time prior to its expiration, after the end of the applicable Performance Period and pursuant to the applicable provisions of the Plan and this Agreement as to all full shares that have become so exercisable. Except as
otherwise provided in the Plan or this Agreement, the Option may not be exercised unless the Optionee shall, at the time of exercise, be an Employee of the Navistar Companies. 

  
 B-1

	 	b.	Method of Exercise. Subject to the terms and conditions contained in this Agreement and the Plan, the Option may be exercised by giving notice as provided
in instructions issued by the Corporate Secretary for the exercise of options generally, which instructions may provide for the use of agents, including stock brokers, to effect exercise of options, or in the absence of such instructions, by written
notice to the Corporate Secretary of the Corporation at the location of its principal office at the time of exercise, which is currently located at 2701 Navistar Drive, Lisle, Illinois 60532. Such notice shall state the election to exercise the
Option and the number of Shares in respect of which it is being exercised, shall be signed by the person or persons so exercising the Option and shall be accompanied by instructions to the Corporate Secretary to exercise, in whole or in part,
through a cashless exercise, net-exercise (as defined in the Plan), or other arrangements through agents, including stockbrokers, under arrangements established by the Corporation for the exercise of the Option, or, if not covered by such
instructions, for payment of the full purchase price of said Shares by cash, including a personal check made payable to the Corporation, or by delivering at Fair Market Value on the date of exercise unrestricted Common Stock already owned by the
Optionee, or by any combination of cash and Common Stock, and in either case, by payment to the Corporation of any withholding tax. In the event that the Option shall be exercised, pursuant to Section 5 hereof, by any person or persons other
than the Optionee, such notice shall be accompanied by appropriate proof of the right of such person or the persons to exercise the Option. The date of exercise of the Option shall be the date on which the aforesaid written notice, properly executed
and accompanied as aforesaid, is received under the Corporate Secretary’s instructions or by the Corporate Secretary. The payment due to the Optionee upon exercise of the Option will be settled solely in Common Stock. All Shares that shall be
purchased upon the exercise of the Option as provided herein shall be fully paid and non-assessable. 

  

	 	c.	Method of Payment. Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee:
(i) cash; (ii) check; (iii) consideration received by the Corporation under a cashless exercise program; or (iv) surrender of other shares of Common Stock of the Corporation which (x) in the case of shares acquired upon
exercise of an option or otherwise, have been owned by the Optionee for such period of time (if any) as may be required to avoid a charge to the Corporations earnings, and (y) have a Fair Market Value on the date of surrender equal to the
aggregate exercise price of the exercised Shares. 

  

	 	d.	Tax Withholding Obligations. As a condition to the exercise of this Option, the Optionee agrees to make adequate provision for federal, state, local
statute, ordinance, rule, regulation or any other tax withholding obligations, if any, which arise upon the exercise of the Option or disposition of Shares subject to the Option, whether by withholding, direct payment to the Corporation, or
otherwise. Shares which otherwise would be delivered to the holder of the Option may be delivered, at the election of the holder, to the Corporation in payment of federal, state and/or local withholding taxes due in connection with an exercise.

  

	 	e.	Transfer of Shares. No Shares will be issued pursuant to the exercise of this Option unless such issuance and exercise compiles with relevant provisions
of law (including the Federal and State securities laws) and the requirements of any stock exchange upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the exercised Shares shall be considered transferred to
the Optionee on the date the Option is exercised with respect to such exercised Shares. 

  
 B-2

	6.	Termination of Option and Vesting and Exercise of Option Following Termination of Employment. 

 

	 	a.	Termination of Employment by the Navistar Companies without Cause or by Optionee for Constructive Termination. If Optionee’s employment with the
Navistar Companies terminates by reason of (i) the Navistar Companies’ termination of Optionee’s employment other than for Cause (as defined in the Employment Agreement), death, or Disability (as defined in Section 6(b) below) or
(ii) by Optionee due to Constructive Termination (as defined in the Employment Agreement), then, in any such case, a pro rata portion of the unvested portion of the Option shall vest, which for this purpose shall be determined based on actual
performance at the end of the applicable Performance Period and a fraction, the numerator of which is the number of whole months from the Date of Grant through the Date of Termination (as defined in the Employment Agreement) (in each case including
the month in which the termination occurs if such termination occurs on or after the 15th day of that month) and the denominator of which is the number of months from the Date of Grant through the end of the applicable Performance Period. The
Shares, to the extent vested on the Date of Termination or which become vested pursuant to this Section 6(a), may be exercised by the Optionee until and including the earlier to occur of (i) the date which is twelve (12) months after
the end of the applicable Performance Period and (ii) the Expiration Date. 

  

	 	b.	Termination of Employment Due to Disability. In the event of a termination of employment due to total and permanent disability, as defined by the
Corporation’s long term disability programs (“Disability”), the Optionee, may exercise the Option, to the extent the Option is exercisable or becomes exercisable under its terms, at any time within (3) three years after such
termination or, if later, the date on which the Option becomes exercisable with respect to such Shares, but not after the Expiration Date. 

  

	 	c.	Termination of Employment Due to Death. In the event of the death of the Optionee, any Option exercisable under this Agreement may be exercised by a
legatee, or by the personal representatives or distributees, until and including the earlier to occur of (i) the date which is two (2) years after the date of Optionee’s death and (ii) the Expiration Date. If death occurs while
employed by the Navistar Companies or during the (3) three year period specified in Section 6(b) above, the unvested portion of the Option may be exercised with respect to the target remaining Shares covered by the unvested portion of the
Option. If death occurs during the (12) twelve month period specified in Sections 6(a), 6(d) or 6(f), the Option may be exercised to the extent of the number of Shares that were exercisable at the date of death. 

 

	 	d.	Termination of Employment by Optionee Other Than Due to Constructive Termination. In the event the Optionee terminates his employment with the Navistar
Companies for any reason other than Constructive Termination, then the Option, to the extent vested on the Date of Termination, may be exercised by the Optionee until and including the earlier to occur of (i) the date which is twelve
(12) months after the Date of Termination and (ii) the Expiration Date. 

  

	 	e.	Termination of Employment by the Navistar Companies for Cause. In the event the Optionee’s employment is terminated by the Navistar Companies due to
Cause, the Option, whether or not vested, shall terminate immediately upon such termination of employment. 

  

	 	f.	Change in Control. In the event of the termination of the Optionee’s employment by the Navistar Companies without Cause or by the Optionee for
Constructive Termination, in either case, during the twenty-four (24) months after the date of the then-most recent Change in Control (or during the ninety (90) days preceding the date of a Change in Control if Executive’s employment
and service with the Navistar Companies is terminated by the 

  
 B-3

 Navistar Companies without Cause in contemplation of such Change in Control), then the
unvested Options shall be 100% vested, at the target level, upon such termination of employment (except with respect to any portion of the unvested Option that relates to Performance Periods that have completed, which portion shall not vest) and the
Option may thereafter be exercised by Optionee until and including the earlier to occur of (i) the date which is twelve (12) months after the Date of Termination and (ii) the Expiration Date. Change in Control shall have the meaning
ascribed to such term in the Employment Agreement. 
  

	7.	Non Transferability of Option. The Option shall not be transferable otherwise than by will or the laws of descent and distribution, and the Option
shall be exercisable, during the lifetime of the Optionee, only by the Optionee. The designation of a beneficiary does not constitute a transfer. Without limiting the generality of the foregoing, the Option may not be assigned, transferred (except
as aforesaid), pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the
Option contrary to the provisions hereof, and the levy of any execution, attachment, or similar process upon the Option shall be null and void and without effect. The terms of the Option shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee. 

  

	8.	Rights of a Stockholder. The Optionee shall have none of the rights of a stockholder with respect to any of the Shares of Common Stock subject to the
Option until such Shares shall be issued upon the exercise of the Option. 

  

	9.	Extraordinary Item; Coordination with Local Law. By voluntarily acknowledging and accepting this Agreement, the Optionee acknowledges and understands
that (a) the Option is an extraordinary item relating to compensation for future services to the Navistar Companies and are not under any circumstances to be considered compensation for past services; (b) the Option is not part of normal
or expected compensation or salary for any purposes, including, without limitation, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, service-based awards, pension or retirement benefits or similar
payments; and (c) notwithstanding any terms or conditions of the Plan or this Agreement to the contrary, in the event of the Optionee’s involuntary termination of employment with the Navistar Companies, the Optionee’s right to receive
future Options under the Plan and to vest in the Options shall terminate as of the date that the Optionee is no longer actively employed and will not be extended by any notice period under local law (e.g., active employment would not include
a period of “garden leave” or similar period pursuant to local law); provided, however, that to the extent the Optionee retains any right to continue to vest in the Options and to exercise the Options pursuant to and in accordance with the
Plan and this Agreement following such termination, the right to so vest and exercise shall be measured from the date the Optionee terminates active employment with the Navistar Companies and shall not be extended by any notice period under local
law. 

  

	10.	No Guarantee of Continued Service. Optionee acknowledges and agrees that the vesting of Shares pursuant to the vesting schedule in the Notice of Grant is
earned only by continuing employment as CEO at the will of the Corporation (not through the act of being hired, being granted this Option or acquiring Shares under this Agreement). The Optionee further acknowledges and agrees that nothing in the
Agreement, nor in the Plan which is incorporated in this Agreement by reference, shall confer upon the Optionee any right with respect to continuation as the Corporation’s CEO, nor shall it interfere in any way with his right or the Navistar
Companies right to terminate his employment relationship at any time, with or without cause. 

  

	11.	Non-Competition. In consideration of the Option granted under this Agreement which may become exercisable pursuant to Sections 4 and 6 above, the Optionee
agrees to be bound by the covenants of this Section 11. The Optionee acknowledges that the covenants contained within this Section 11 are essential elements of this Agreement, and that, but for the agreement of the

  
 B-4

 Optionee to comply with such covenants, the Corporation would not have entered into this
Agreement. The right to exercise this Option shall be made with respect to the covenants of this Section 11 at such time(s) when all other terms and conditions of the Agreement and the Plan have been satisfied. The Optionee agrees that he
shall: 
 At all times during the Performance Period and for a period of twenty-four (24) months immediately following
termination of employment and service for any reason, not, directly or indirectly (whether as owner, principal, agent, partner, officer, director, employee, consultant, investor, lender or otherwise), provide services to any other business or
organization anywhere in the United States of America or its territories, Canada, Mexico, Brazil, United Kingdom, Germany, South Africa, United Arab Emirates, India and the People’s Republic of China, or any other country in which the Navistar
Companies, directly or indirectly, including through a joint venture, strategic alliance or other similar arrangement, conducts business at the time of the Optionee’s termination of employment and service that competes with the business of the
Navistar Companies by (1) manufacturing, selling or servicing medium or heavy duty automotive vehicles with diesel powered engines (including commercial trucks, commercial buses, school buses, recreational vehicles, and military vehicles),
parts or components for such vehicles, diesel powered engines for such vehicles, parts or components for diesel powered engines for such vehicles, (2) providing financing or financing-related services related to any such manufacturing, selling
or servicing activities specified in clause (1), or (3) providing other services or products which are the same as or substantially similar to those provided by the Navistar Companies at the time of the Optionee’s termination of employment
and service; provided, however, that such restriction shall not prohibit the Optionee’s purchase or ownership of less than five-percent (5%) of the outstanding voting stock of a publicly-held company so long as such ownership
is passive in nature; provided, further, notwithstanding anything in this Agreement to the contrary, (y) the ownership by Optionee of a dealership (or group of dealerships) for the retail sale and service of medium or heavy duty automotive
vehicles with diesel powered engines (including commercial trucks, commercial buses, school buses, recreational vehicles, and military vehicles), parts or components for such vehicles, diesel powered engines for such vehicles, and parts or
components for diesel powered engines for such vehicles, and (z) the providing of financing or financing related services to customers in connection with the business described in above clause (y), shall not be deemed to be a violation of this
Agreement and particularly, of this Section 11. 
 The Optionee acknowledges and agrees that the foregoing covenants set
forth in this Section 11 are reasonable, including without limitation, as to scope, activity, subject, geography and duration, and that irreparable injury will result to the Navistar Companies in the event of any violation by the Optionee of
these covenants, and that said covenants are a condition precedent to the Corporation and the Navistar Companies willingness to enter into this Agreement and grant the Option set forth in this Agreement. In the event that any of the foregoing
covenants are violated, the Corporation and the Navistar Companies shall be entitled, in addition to any other remedies and damages available under law, equity, or otherwise, to recoup, offset, suspend, or terminate this Option and benefits
previously paid or otherwise subsequently owed to the Optionee under this Agreement, to injunctive relief from any court of competent jurisdiction to restrain the violation of such covenants, and/or to prevent any threatened violation by the
Optionee, and/or by any person or persons acting for, or in concert with, the Optionee in any capacity whatsoever, without posting a bond or other security. In addition, if such a court deems that any of the foregoing covenants are unreasonable, the
Corporation and Optionee agree that the maximum permissible period and scope prescribed by such court shall be substituted for the stated period and scope. 
  

	12.	Consent to Transfer Personal Data. By accepting this Agreement, the Optionee voluntarily acknowledges and consents to the collection, use, processing and
transfer of personal data as described in this Section 12. The Optionee is not obliged to consent to such collection, use, processing and transfer of personal data. However, failure to provide the consent may affect the Optionee’s ability
to participate in the Plan. The Corporation holds certain personal information 

  
 B-5

	 	
about the Optionee, which may include the Optionee’s name, home address and telephone number, facsimile number, e-mail address, family size, marital status, sex, beneficiary information,
emergency contacts, passport/visa information, age, language skills, drivers license information, date of birth, birth certificate, social security number or other employee identification number, nationality, C.V. (or resume), wage history,
employment references, job title, employment or severance contract, current wage and benefit information, personal bank account number, tax related information, plan or benefit enrollment forms and elections, equity or benefit statements, any shares
of stock or directorships in the Corporation, details of all options, RSUs, or any other entitlements to shares of stock awarded, canceled, purchased, vested, unvested or outstanding in the Optionee’s favor, for the purpose of managing and
administering the Plan (“Data”). The Navistar Companies will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of the Optionee’s participation in the Plan, and the
Corporation may further transfer Data to any third parties assisting the Corporation in the implementation, administration and management of the Plan. These recipients may be located throughout the world, including the United States of America. The
Optionee authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Optionee’s participation in the Plan, including any
requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of Common Stock or cash on the Optionee’s behalf to a broker or other third party with whom the Optionee may elect to
deposit any lump sum cash payment or shares of Common Stock acquired pursuant to the Plan. The Optionee may, at any time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting the Corporate
Secretary for the Corporation; however, withdrawing the Optionee’s consent may affect the Optionee’s ability to participate in the Plan. 

  

	13.	Electronic Delivery. The Corporation may, in its sole discretion decide to deliver any documents related to Stock Options awarded under the Plan or future
Stock Options that may be awarded under the Plan by electronic means or request Optionee’s consent to participate in the Plan by electronic means. Optionee hereby consents to receive such documents by electronic delivery and agrees to
participate in the Plan through an on-line or electronic system established and maintained by the Corporation or another third party designated by the Corporation. 

 

	14.	Amendment. Except as otherwise specified in this Agreement, this Agreement may be amended only by a writing executed by the Corporation and the
Optionee that specifically states that it is so amending this Agreement. Notwithstanding the foregoing, this Agreement may be amended by the Committee, without the consent of the Optionee, by a writing that specifically states that it is so
amending this Agreement, so long as a copy of such amendment is delivered to the Optionee, and provided that no such amendment that eliminates or adversely affects any right or obligation of the Optionee hereunder may be made without the
Optionee’s consent. Without limiting the foregoing, the Committee reserves the right to change, by written notice to the Optionee, the provisions of the this Agreement in any way it may deem necessary or advisable to carry out the purpose
of the Agreement as a result of a mistake of fact or any change in applicable laws or regulations or any future law, regulation, ruling or judicial decisions, provided that any such change shall be applicable only to the Options that are then
subject to terms or conditions of this Agreement. 

  

	15.	Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable by appropriate authority under the law of any
jurisdiction applicable to this Agreement, the same shall not affect, in any respect whatsoever, the validity, legality, or enforceability of any other provision of this Agreement, and this Agreement shall continue, to the fullest extent permitted
by law, as if such invalid, illegal, or unenforceable provision were omitted and/or modified by such appropriate authority so as to preserve its validity, legality, or enforceability, unless such omission or modification would substantially impair
the rights or benefits under this Agreement of the Optionee or the Corporation. 

  
 B-6

	16.	Construction. A copy of the Plan has been given to the Optionee and additional copies of the Plan are available upon request during normal business
hours at the principal executive offices of the Corporation or can be requested in writing sent to the Corporate Secretary, Navistar International Corporation, 2701 Navistar Drive, Lisle, Illinois 60532. To the extent that any provisions of this
Agreement violate or are inconsistent with any provisions of the Plan, this Agreement shall govern and any inconsistent provision in the Plan shall be of no force or effect. Optionee acknowledges that the Plan may be amended, prospectively or
retroactively in order to comply with the requirements of the Internal Revenue Code, and Optionee agrees to comply with the terms of the Plan as so amended from time to time. 

 

	17.	Interpretations. Any dispute, disagreement or question which arises under, or as a result of, or in any way relates to the interpretation, construction or
application of the terms of this Agreement or the Plan will be determined and resolved by the Committee or its authorized delegate. Such determination or resolution by the Committee or its authorized delegate will be final, binding and conclusive on
all persons for all purposes. 

  

	18.	Successors and Assigns. This Agreement shall be binding upon and, subject to the conditions hereof, inure to the benefit of the Corporation, its
successors and assigns, and the Optionee and their successors and assigns. 

  

	19.	Entire Understanding. This Agreement embodies the entire understanding and agreement of the parties in relation to the subject matter hereof, and no
promise, condition, representation or warranty, expressed or implied, not herein stated, shall bind either party hereto. 

  

	20.	Governing Law. Subject to the terms of the Plan, all matters arising under this Agreement including matters of validity, construction and
interpretation, shall be governed by the internal laws of the State of Illinois, without regard to the conflicts of law provisions of that State or any other jurisdiction. The Optionee and the Corporation agree that all claims in respect of any
action or proceeding arising out of or relating to this Agreement shall be heard or determined in any state or federal court sitting in Illinois, and the Optionee agrees to submit to the jurisdiction of such courts, to bring all such actions or
proceedings in such courts and to waive any defense of inconvenient forum to such actions or proceedings. A final judgment in any action or proceeding so brought shall be conclusive and may be enforced in any manner provided by law.

  

	21.	Signature. This Agreement shall be deemed executed by the Corporation and the Optionee upon execution by such parties (or upon the Optionee’s online
acceptance) of the Notice of Grant. 

  
 B-7

 EXHIBIT A 
 Vesting and Performance Conditions 
 To 

Form of Navistar International Corporation 2013 Performance Incentive Plan 

Non-Qualified Performance-Based Stock Option Agreement

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