Document:

Transition Agreement

 Exhibit 10.2 
 TRANSITION AGREEMENT 
 This Transition Agreement (this
“Agreement”) is made and entered into as of July 30, 2012, by and between Gary J. Skidmore (the “Executive”) and Harte-Hanks, Inc., a Delaware corporation (the “Company”). The Executive and the
Company desire to provide for an orderly transition to the Executive’s successors, and therefore, for good and valuable consideration, the parties hereto agree as follows: 
 1. Employment Transition. Except as hereinafter otherwise provided, the Executive will remain employed as Executive Vice President and President, Direct Marketing through July 31, 2012 (the
“Transition Date”), on which date the Executive’s employment with the Company shall terminate. The parties agree that the Executive’s “Separation from Service” as defined in section 409A (“Section
409A”) of the Internal Revenue Code (the “Code”) shall occur on the Transition Date. The Executive hereby resigns from his positions as officer, director, manager and/or member of all Company subsidiaries and affiliates,
and all fiduciary positions that he may hold with respect to any Company, subsidiary, or affiliate employee benefit plans, effective on the Transition Date. 
 2. Transition Compensation. 
 (a) Transition Payments. Provided that
the Executive has executed and delivered the Additional Release (as defined in Section 7) the Company shall pay the Executive (i) $486,000 in 26 substantially equal fortnightly payments beginning on or about the Transition Date and
(ii) $35,000 on the regularly scheduled payroll date next following each of September 1, 2012, December 1, 2012, March 1, 2013 and June 1, 2013 (together, the “Transition Payments”). The Transition
Payments are subject to applicable statutory and legal withholding requirements. The Executive shall not be eligible for a bonus or any other incentive compensation for the Executive’s services to the Company in 2012 or thereafter. 

(b) Equity Awards. This Agreement does not supersede or modify the terms of outstanding long-term incentive plan awards issued to
the Executive prior to the termination of his employment, which shall continue to be governed in all respects by the terms of the applicable long-term incentive plan of the Company, including the Harte-Hanks, Inc. Amended and Restated 1991 Stock
Option Plan and the Harte-Hanks, Inc. 2005 Omnibus Incentive Plan, and by the terms of the applicable award agreements thereunder. For the avoidance of doubt, the shares of restricted stock issued to the Executive as “Bonus Restricted
Stock” shall vest in full on the Transition Date, but all other unvested equity grants held by the Executive shall terminate on the Transition Date. 
 (c) COBRA. From the Transition Date through the earliest to occur of (i) the eligibility of Executive to participate in an another employer’s employer-sponsored health plan or
(ii) August 31, 2013, the Company and the Executive agree that if the Executive elects COBRA coverage consistent with his current healthcare elections, (x) the Company may deduct from the Transition payments the amount the Executive
currently pays for his healthcare coverage to be applied to the Executive’s COBRA premium, and (y) the Company shall pay the balance of the Executive’s COBRA premium consistent with his current healthcare elections. 

 3. Consulting Arrangement. For six months following the Transition Date (the
“Consulting Period”) and upon mutual written agreement as to the scope of engagement, the Parties agree that the Company may engage the Executive as a consultant from time-to-time on an as-needed basis for a consulting fee of $200
per hour worked, payable in arrears promptly after the end of each calendar month upon submission of a suitably detailed invoice for the work performed, and in each case subject to the prior written approval of the Chief Executive Officer. The
Executive will be reimbursed for all reasonable travel and travel-related expenses that he incurs at the request of the Company in performing services for the Company during the Consulting Period in accordance with the Company’s reimbursement
policies and prior written approval of the Chief Executive Officer of the Company. The Company and the Executive reasonably anticipate that the amount of services the Executive will perform for the Company after the Transition Date will permanently
decrease to no more than 20% of the average level of services performed by the Executive for the Company during the 36-month period immediately preceding the Transition Date. The Executive will perform such consulting services as an independent
contractor during the Consulting Period, and not as an employee or officer of the Company. The Executive will be responsible for all taxes and non-reimbursable expenses attributable to the rendition of his consulting services. This consulting
arrangement shall not be deemed to constitute a partnership or joint venture between the Company and the Executive, nor shall this consulting arrangement be deemed to make the Executive an agent of the Company. The Executive acknowledges and agrees
that he will have no authority to enter into contracts, commitments, or obligations of any kind, or to make any representations, on behalf of the Company, unless expressly authorized to do so in writing by an authorized representative of the
Company. Nor will he have or exercise the authority to supervise or direct the activities of any employee of the Company. For the avoidance of doubt, the Company and the Executive agree that Executive is under no obligation to accept consulting
assignments and can decline or accept them as the Executive, in his sole discretion, sees fit. 
 4. Restrictive
Covenants. The Executive shall continue to be bound by his Employment Restrictions Agreement dated on or about March 15, 2011, which is made part of, and incorporated by reference into, this Agreement (the “ERA”),
including the non-competition, non-solicitation and confidentiality provisions thereof. Except as modified in this Section 4, the Restrictive Covenants will survive the termination of this Agreement to the extent provided in such
agreements. The Executive expressly acknowledges that the compensation and benefits provided to him by the Company pursuant to this Agreement, and the consideration provided to the Executive by the Company during his employment (including the
confidential information provided to the Executive during his employment) are sufficient to justify the restrictions imposed upon him in the ERA. The Executive waives any argument to the contrary, and agrees not to challenge the enforceability of
the ERA or this Section 4 of this Agreement. 
 5. Termination of Agreement. 

(a) Death or Disability. This Agreement shall automatically terminate upon the death or the “Disability” of the
Executive. Under the terms of this Agreement, “Disability” means disability as defined for purposes of Section 409A. In the event of the termination of this Agreement due to the Executive’s death or Disability during the
12-month period following the Transition Date, the Executive’s conservator or guardian or the Executive’s estate (as the case may be) shall be entitled to receive (x) the Transition Payments, (y) any unpaid consulting fees earned
pursuant to Section 3 and (z) payment for any unreimbursed consulting expenses incurred pursuant to Section 3. 

  
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 (b) Termination by the Company for Cause. The Company may terminate this Agreement at
any time for “Cause.” For purposes of this Agreement, termination of this Agreement for “Cause” means 
 (i) that the Company’s Board of Directors has determined in good faith that the Executive committed an act of fraud, dishonesty, gross misconduct or other unethical practices while employed by the
Company, and/or 
 (ii) that the Executive has violated the ERA or has communicated to any other person (x) any statement
which directly or indirectly impugns the quality or integrity of the Company’s or any of the other Released Parties’ business or employment practices, or (y) any other disparaging or derogatory remark about the Company or any of the
other Released Parties, their officers, directors, managerial personnel, or other employees, except as may be compelled by law or judicial process. 
 If the Company terminates this Agreement for Cause, the Company shall only be obligated to pay the Executive (1) expenses incurred in accordance with Section 3 and (2) any benefits owed
under any Company-sponsored pension or retirement plan (but subject to and in accordance with the terms and limitations of such plans). 
 (c) Effect of Termination of Agreement. Notwithstanding anything to the contrary in this Agreement, the rights and obligations of the parties described in Sections 4 (Restrictive Covenants), 7
(Release of Claims) and 8 (Cooperation), of this Agreement shall survive the termination of this Agreement. 
 6. Certain Tax
Matters. The parties acknowledge and agree that: (i) Section 409A would subject the Executive to penalty taxes and interest if he receives payments from a “nonqualified deferred compensation plan” which is subject to 409A
before the date that is six months after the date of the Executive’s “separation from service” from the Company, or if earlier, his death or Disability; (ii) the end Transition Date will be treated as the Executive’s date of
separation from service for purposes of Section 409A; (iii) the reimbursement of consulting expenses under Section 3 hereof is intended to be a reimbursement of deductible business expenses that is exempt under 409A; (iv) the
Transition Payments are intended to be exempted from Section 409A under the short term deferral or separation pay exceptions, and may not be accelerated except as provided in Section 5(a) in the case of death or Disability of the
Executive; and (v) no subsequent elections to defer receipt of the Transition Payments will be permitted. All payments provided under this Agreement shall either be exempt from or comply with the requirements of Section 409A of the Code
and the Treasury Regulations thereunder. All payments and benefits provided under this Agreement or otherwise are subject to applicable tax withholding. 

  
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 7. Releases of Claims. 

(a) Current Release. The Executive hereby voluntarily, completely and fully releases, remises, acquits and forever discharges the
Company and its respective parents, affiliates, subsidiaries, divisions, branches, units and related entities, and its or their present and former officers, directors, employees, agents, successors and assigns (the “Released
Parties”), of and from any and all claims, demands, debts, suits, actions, causes of action, obligations, damages, costs, losses, interest, expenses and liabilities, of any kind or nature whatsoever, whether legal, equitable or statutory,
liquidated or unliquidated, known or unknown, suspected or unsuspected, reasonably discoverable or not, present, fixed or contingent (collectively, “Claims”), that the Executive, his heirs, executors, administrators, successors, and
assigns, have or may have as of the date of his execution of this Agreement including, but not limited to, Claims arising out of or resulting from: 
  

	 	(i)	any violation of 

  

	 	•	 	 The National Labor Relations Act, as amended; 

  

	 	•	 	 Title VII of the Civil Rights Act of 1964, as amended; 

 

	 	•	 	 The Civil Rights Act of 1991; 

  

	 	•	 	 Sections 1981 through 1988 of Title 42 of the United States Code, as amended; 

 

	 	•	 	 The Employee Retirement Income Security Act of 1974, as amended; 

 

	 	•	 	 The Immigration Reform and Control Act of 1986, as amended; 

 

	 	•	 	 Claims of retaliation under the Fair Labor Standards Act, as amended; 

 

	 	•	 	 The Occupational Safety and Health Act, as amended; 

  

	 	•	 	 The Family and Medical Leave Act of 1993, as amended; 

 

	 	•	 	 The Americans with Disabilities Act; 

  

	 	•	 	 The Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621, et seq.; 

 

	 	•	 	 The Fair Credit Reporting Act; 

  

	 	•	 	 The Equal Pay Act; 

  

	 	•	 	 The Texas Commission on Human Rights Act, TEX. LAB. CODE ANN. § 21.001, et
seq., and the anti-retaliatory provisions of the Texas Workers’ Compensation Act, TEX. LAB. CODE ANN. § 451.001, et seq.; 

 

	 	•	 	 Any other federal, state or local civil or human rights law or any other local, state or federal law, regulation or ordinance (including those related
to taxes); and 

  

	 	•	 	 Any public policy, contract, tort, or common law; 

  
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 (ii) the Executive’s employment or the Company’s decision, if any, to terminate
the Executive’s employment and to enter into this Agreement, or the circumstances of the Executive’s departure, including without limitation, Claims based upon race, national origin, gender, age, religion, sexual orientation, or disability
discrimination, retaliation, contract or quasi-contract claims, tax payments or withholdings or severance practices; 
 (iii) any
tax payments, liabilities or obligations, withholding obligations, excise taxes, interest payments or penalties; 
 (iv)
NEGLIGENCE OF ANY KIND, INCLUDING WITHOUT LIMITATION GROSS NEGLIGENCE, AGAINST THE RELEASED PARTIES BASED UPON THE ACTION OR INACTION OF THE RELEASED PARTIES; or 
 (v) any claim for costs, fees, or other expenses including attorney’s fees (collectively, the “General Release”); provided, however, that nothing in this General Release shall be
deemed to be a waiver or release of the Company’s obligations to provide payments and/or benefits under the terms of this Agreement. 
 By
signing this General Release, the Executive affirms that he has read this entire General Release; that he fully understands the meaning and effect of his action in executing this General Release; and that his execution of this General Release is
knowing and voluntary. The Executive further acknowledges that neither the Company nor any of the other Released Parties has made any promise or representation to him that is not expressed in this General Release, and that in entering this General
Release, he is not relying on any statement or representation by the Company or any of the other Released Parties, but is instead relying solely on his judgment in consultation with his attorneys, if he chooses to retain counsel. 

(b) Consideration & Revocation. The General Release above does not act to waive any rights or claims that may arise after
the date this Agreement is executed. By executing this Agreement, the Executive acknowledges and agrees that the Company has no legal obligation to provide the compensation and benefits being provided to him hereunder absent this Agreement, and such
compensation and benefits are in addition to anything of value to which the Executive is already entitled. The Executive has been advised to consult with his attorney to obtain advice about his rights and obligations under this Agreement. The
Executive represents that he has carefully read this Agreement and finds that it has been written in language that he understands. The Executive has been given at least 21 days to consider whether to accept this Agreement, and has signed it only
after reading, considering and understanding it. If the Executive signs this Agreement before the expiration of the 21 days, he is expressly waiving his right to consider this Agreement for any remaining portion of that period. The parties agree
that any changes made to this Agreement from the version originally presented to the Executive, whether those changes are deemed material or non-material, do not extend the 21-day period the Executive has been given to consider this Agreement. The
Executive may revoke this Agreement for a period of seven days following the day he executes this Agreement. Any revocation within this period must be submitted, in writing, to Robert L. R. Munden, Senior Vice President, General Counsel and
Secretary, Harte-Hanks, Inc., 9601 McAllister Freeway, Suite 610, San Antonio, Texas 78216, and state, “I hereby revoke my Agreement.” The revocation must 

  
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 be personally delivered to Robert L. R. Munden or his designee, or mailed to Robert L. R. Munden and
postmarked on or before the date seven days after the Executive’s execution of this Agreement (and if mailed, concurrently sent via facsimile and/or electronic transmission to Robert L. R. Munden at (210) 829-9139 or
Robert_Munden@harte-hanks.com). The Executive understands that he has the right to revoke this Agreement at any time during the seven calendar day period following the date on which he first signs this Agreement. Should Executive revoke this
Agreement, the Company shall be relieved of any and all obligations to provide any further payments or benefits under the Transition Agreement to the Executive, his heirs, executors, administrators, successors, and assigns. 

(c) Additional Release. In addition to the General Release above, the Executive (or, in the event of his death or his incapacity
due to Disability, his surviving spouse, his conservator or guardian, or his estate, as the case may be) agrees to execute and deliver to the Company an additional release of Claims in favor of the Company (in the form attached hereto as
Exhibit A, the “Additional Release”) as of the last day of the Employment Term as a condition to receipt of the payments and benefits described in Section 2. 

Although this Agreement cannot prevent the Executive from filing a charge of discrimination or retaliation with the Equal Employment
Opportunity Commission with regard to the Executive’s employment (or the termination thereof), knowing that the compensation and benefits provided to the Executive under this Agreement is mutually intended by both the Company and the Executive
to provide the full and only compensation to the Executive for all claims, damages, or other demands that the Executive might have or make against the Company or any of the other Released Parties with respect to the Executive’s employment (or
the termination thereof), the Executive agrees to forever waive any right to monetary recovery should any administrative agency or other individual or group of individuals pursue any claim on the Executive’s behalf. The Executive further agrees
that the Executive will not request or accept anything of value from the Company or the other Released Parties not provided for in this Agreement as compensation or damages related to the Executive’s employment or the termination of the
Executive’s employment with the Company. Therefore, should the Executive file a charge of discrimination or retaliation or pursue any other similar action with regard to the Executive’s employment with the Company (or the termination
thereof), the Executive acknowledges and agrees that this Agreement will bar the Executive from receiving any compensation or personal relief in the event of such a charge or action. 

8. Cooperation. During the Consulting Period and continuing thereafter, if requested by the Company the Executive shall cooperate
and assist the Company and its subsidiaries and affiliates in any dispute, proceeding, or investigation in which the Company or any subsidiary or affiliate is involved and in which the Executive has been involved, or which involves facts or events
that existed or arose during the period of the Executive’s employment or consultancy with the Company relating to the business of the Company. This obligation includes the Executive’s promptly meeting with counsel for the Company or the
other Released Parties at reasonable times upon their request; providing testimony in court, upon deposition, or by affidavit, that is truthful, accurate, and complete, according to information known to the Executive; and providing to the Company or
the other Released Parties, or their counsel, truthful, accurate, and complete information known to the Executive, in connection with the prosecution or defense of 

  
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 the Company or any of the other Released Parties in such litigation or claims. If the Executive appear as a
witness in any pending or future litigation at the request of the Company or any of the other Released Parties, the Company agrees to reimburse the Executive, upon submission of substantiating documentation, for necessary and reasonable expenses
incurred by the Executive as a result of the Executive’s fulfilling his obligations under this Section 8. 
 9.
Conditions Applying to Payment of Benefits. The Executive understands and agrees that the payments and benefits to be provided to the Executive under this Agreement are subject to the Executive’s compliance with the terms and conditions
set forth in this Agreement including, without limitation, the Restrictive Covenants. The Company agrees that if it believes the Executive is or may be violating his obligations under the Agreement such that Company intends to withhold payment(s) to
the Executive, the Company will give the Executive written notice of the Company’s intent at least 14 days prior to the withholding of any such payment(s) so that the Executive can explain or cure the conduct, if appropriate. 

10. Communications. Any notice, request or other communication required or permitted by this Agreement to be mailed, given or
delivered to the Executive shall be in writing, addressed to him at his address as reflected on Company payroll records, or such address as he may furnish from time to time to the Company for the purposes hereof; and any payment to the Executive
under this Agreement may be made by check delivered to him or mailed to or delivered at such address, or by wire transfer to an account designated by the Executive. Any notice, request or other communication required or permitted by this Agreement
to be given to the Company is to be in writing, addressed to the Company, for the attention of the Chief Executive Officer (with a copy to the General Counsel), Harte-Hanks, Inc., 9601 McAllister Freeway, Suite 610, San Antonio, Texas 78216, or at
such other address as the Company shall have furnished to the Executive for the purposes hereof. 
 11. Assignment; Binding
Effect. This Agreement is binding upon, and inures to the benefit of, the Executive; the obligations of the Executive hereunder are personal and this Agreement may not be assigned by the Executive. This Agreement is binding upon, and inures to
the benefit of, the Company and shall also bind and inure to the benefit of any successor of the Company by merger or consolidation or any assignee of all or substantially all of its properties, but, except to any such successor or assignor of the
Company, this Agreement may not be assigned by the Company. 
 12. Governing Law and Interpretation. This Agreement shall
be governed by and construed in accordance with the laws of the State of Texas without regard to its conflict of laws provision. The parties consent to the exclusive jurisdiction of the courts of and for Bexar County, Texas, for resolution of any
dispute involving this Agreement. Should any provision of the Agreement be declared illegal or unenforceable by a court of competent jurisdiction and cannot be modified to be enforceable, excluding Section 4 (Restrictive Covenants) or
Section 7 (Released Claims), such provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect. If Sections 4 or 7, or any portion thereof, is found by a court of competent jurisdiction to
be unenforceable, the Executive agrees that the Company may rewrite this Agreement to cure the defect, and the Executive shall execute the rewritten agreement upon request of the Company without any additional monies, benefits and/or compensation
thereof. The Executive and the Company affirm that either may institute an action to specifically enforce any term or terms of this Agreement. 

  
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 13. Counterparts. This Agreement may be executed in multiple counterparts, each of
which is to be deemed an original, but all of which, together, constitute one and the same instrument. 
 14. Entire
Agreement and Modification. This Agreement constitutes the entire agreement and understanding between the Company and the Executive concerning the subject matters contained herein. This Agreement supersedes any and all prior understandings and
agreements between the parties concerning these subject matters except for the ERA and the Amended & Restated Severance Agreement dated on or about March 15, 2011. This Agreement may not be modified, terminated, waived, altered, or
amended, except in a writing signed by the Executive, and a duly authorized officer of the Company (other than the Executive). 

IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this Agreement as of the date first set forth above.

  

			
	/s/ Gary J. Skidmore            7/27/12
	Gary J. Skidmore
	
	HARTE-HANKS, INC.
		
	By:	 	/s/ Larry D. Franklin            7/30/12
		 	Larry D. Franklin
		 	Chairman, President & Chief Executive Officer
		 	

  
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 EXHIBIT A—ADDITIONAL RELEASE 

General Release 
 This General Release (“Release”) is made and entered into as of                
        , 2012, by and between Gary J. Skidmore (“Former Executive”) and Harte-Hanks, Inc., a Delaware corporation (“Company”). 

RECITALS: 
 For
good and valuable consideration set forth in the parties’ Transition Agreement, dated July 30, 2012 (the “Transition Agreement”), and in accordance with Section 7 of the Transition Agreement, the parties hereto agree
as follows: 
 1. General Release of Claims. The Former Executive hereby voluntarily, completely and fully releases, remises, acquits and
forever discharges the Company and its respective parents, affiliates, subsidiaries, divisions, branches, units and related entities, and its or their present and former officers, directors, employees, agents, successors and assigns
(“Released Parties”), of and from any and all claims, demands, debts, suits, actions, causes of action, obligations, damages, costs, losses, interest, expenses and liabilities, of any kind or nature whatsoever, whether legal,
equitable or statutory, liquidated or unliquidated, known or unknown, suspected or unsuspected, reasonably discoverable or not, present, fixed or contingent (collectively, “Claims”), that the Former Executive, his heirs, executors,
administrators, successors, and assigns, have or may have as of the date of his execution of this Release including, but not limited to, Claims arising out of or resulting from: 

 

	 	(a)	any violation of 

  

	 	•	 	 The National Labor Relations Act, as amended; 

  

	 	•	 	 Title VII of the Civil Rights Act of 1964, as amended; 

 

	 	•	 	 The Civil Rights Act of 1991; 

  

	 	•	 	 Sections 1981 through 1988 of Title 42 of the United States Code, as amended; 

 

	 	•	 	 The Employee Retirement Income Security Act of 1974, as amended; 

 

	 	•	 	 The Immigration Reform and Control Act of 1986, as amended; 

 

	 	•	 	 Claims of retaliation under the Fair Labor Standards Act, as amended; 

 

	 	•	 	 The Occupational Safety and Health Act, as amended; 

  

	 	•	 	 The Family and Medical Leave Act of 1993, as amended; 

 

	 	•	 	 The Americans with Disabilities Act; 

  

	 	•	 	 The Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621, et seq.; 

  
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	 	•	 	 The Fair Credit Reporting Act; 

  

	 	•	 	 The Equal Pay Act; 

  

	 	•	 	 The Texas Commission on Human Rights Act, TEX. LAB. CODE ANN. § 21.001, et
seq., and the anti-retaliatory provisions of the Texas Workers’ Compensation Act, TEX. LAB. CODE ANN. § 451.001, et seq.; 

 

	 	•	 	 Any other federal, state or local civil or human rights law, or any other local, state or federal law, regulation or ordinance (including those related
to taxes); and 

  

	 	•	 	 Any public policy, contract, tort, or common law; 

 (b) the Former Executive’s employment, the Company’s decision, if any, to terminate the Former Executive’s employment or to enter into the Transition Agreement; or the circumstances of the
Former Executive’s departure, including, without limitation, Claims based upon race, national origin, gender, age, religion, sexual orientation, or disability discrimination, retaliation, contract or quasi-contract claims, or tax payments or
withholdings or severance practices; 
 (c) any tax payments, liabilities or obligations, withholding obligations, excise taxes,
interest payments or penalties; 
 (d) NEGLIGENCE OF ANY KIND, INCLUDING WITHOUT LIMITATION GROSS NEGLIGENCE, AGAINST THE
RELEASED PARTIES BASED UPON THE ACTION OR INACTION OF THE RELEASED PARTIES; or 
 (e) any claim for costs, fees, or other
expenses including attorney’s fees; provided, however, that nothing in this Release shall be deemed to be a waiver or release of the Company’s obligations to provide payments and/or benefits under the terms of the Transition Agreement.

 Although this Release cannot prevent the Former Executive from filing a charge of discrimination or retaliation with the
Equal Employment Opportunity Commission with regard to the Former Executive’s employment with the Company, knowing that the compensation and benefits provided to the Former Executive under this Release is mutually intended by both the Company
and the Former Executive to provide the full and only compensation to the Former Executive for all claims, damages, or other demands that the Former Executive might have or make against the Company or any of the other Released Parties with respect
to the Former Executive’s employment or the termination of the Former Executive’s employment, the Former Executive agrees to forever waive any right to monetary recovery should any administrative agency or other individual or group of
individuals pursue any claim on the Former Executive’s behalf. The Former Executive further agrees that the Former Executive will not request or accept anything of value from the Company or the other Released Parties not provided for in this
Release as compensation or damages related to the Former Executive’s employment or the termination of the Former Executive’s employment with the Company. Therefore, should the Former Executive file a charge of discrimination or retaliation
or pursue any 

  
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other similar action with regard to the Former Executive’s employment with the Company (or the termination thereof), the Former Executive acknowledges and agrees that this Release will bar
the Former Executive from receiving any compensation or personal relief in the event of such a charge or action. 
 This General
Release does not act to waive any rights or claims that may arise after the date this Release is executed. 
 By executing this
Release, the Former Executive acknowledges and agrees that the Company has no legal obligation to provide the compensation and benefits being provided to him pursuant to the Transition Agreement (other than by virtue of such agreement), and such
compensation and benefits are in addition to anything of value to which the Former Executive is already entitled. 
 2. No Admission of
Wrongdoing. Each of the parties agrees that this Release shall not be deemed or construed at any time for any purpose as an admission by either party of any liability or unlawful conduct of any kind. 

3. Time to Consider; ADEA Disclosure. The Former Executive has been advised to consult with his attorney to obtain advice about his rights and
obligations under this Release. The Former Executive represents that he has carefully read this Release and finds that it has been written in language that he understands. The Former Executive has been given at least 21 days to consider whether to
accept this Release, and has signed it only after reading, considering and understanding it. If the Former Executive signs this Release before the expiration of the 21 days, he is expressly waiving his right to consider this Release for any
remaining portion of that period. The parties agree that any changes made to this Release from the version originally presented to the Former Executive, whether those changes are deemed material or non-material, do not extend the 21-day period the
Former Executive has been given to consider this Release. 
 4. Right to Revoke. The Former Executive may revoke this Release for a
period of seven days following the day the Former Executive executes this Release. Any revocation within this period must be submitted, in writing, to Robert L. R. Munden, Senior Vice President, General Counsel and Secretary, Harte-Hanks, Inc., 9601
McAllister Freeway, Suite 610, San Antonio, Texas 78216, and state, “I hereby revoke my Release.” The revocation must be personally delivered to Robert L. R. Munden or his designee, or mailed to Robert L. R. Munden and postmarked on or
before the date seven days after the Former Executive’s execution of this Release (and if mailed, concurrently sent via facsimile and/or electronic transmission to Robert L. R. Munden at (210) 829-9139 or Robert_Munden@harte-hanks.com).
The Former Executive understands that he has the right to revoke this Release at any time during the seven calendar day period following the date on which he first signs this Release. Should Former Executive revoke this Release, the Company shall be
relieved of any and all obligations to provide any further payments or benefits under the Transition Agreement to the Former Executive, his heirs, executors, administrators, successors, and assigns. 

  
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 5. Effective Date. This Release shall not become effective or enforceable until the expiration of the
seven-day revocation period described in Section 4 above (“Effective Date”). Upon the Effective Date, this Release shall automatically become effective without any further affirmative action on the part of the Former Executive
or the Company. 
 6. Counterparts. This Release may be executed in multiple counterparts, each of which is to be deemed an original, but
all of which, together, constitute one and the same instrument. 
 7. Understanding. By signing this Release, the Former Executive
affirms that he has read this entire Release; that he fully understands the meaning and effect of his action in executing this Release; and that his execution of this Release is knowing and voluntary. The Former Executive further acknowledges that
neither the Company nor any of the other Released Parties has made any promise or representation to him that is not expressed in this Release, and that in entering this Release, he is not relying on any statement or representation by the Company or
any of the other Released Parties, but is instead relying solely on his judgment in consultation with his attorneys, if he chooses to retain counsel. 
 IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this Release as of the date first set forth above. 

 

			
	 
	Gary J. Skidmore
	
	Harte-Hanks, Inc.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 12EX-10.1

 Exhibit 10.1 
 Execution Version 
  

			
	J.P. MORGAN SECURITIES LLC	  	GOLDMAN SACHS LENDING PARTNERS LLC
	 383 Madison Avenue
 New York, New York 10179
	  	 200 West Street
 New York, New York 10282

		
	 JPMORGAN CHASE BANK, N.A. 
 270 Park Avenue
 New York, New York 10017
	  	

 July 31, 2012 
 Navistar International Corporation 
 2701 Navistar Drive 

Lisle, IL 60532 
 Attention: Jim Moran

 Navistar International Corporation/Navistar, Inc. 

Commitment Letter 
 Ladies
and Gentlemen: 
 You have advised JPMorgan Chase Bank, N.A. (“JPMorgan Chase Bank”), J.P. Morgan Securities LLC
(“JPMorgan”) and Goldman Sachs Lending Partners LLC (“Goldman Sachs”, and together with JPMorgan Chase Bank and JPMorgan, the “Commitment Parties”, “us” or “we”)
that Navistar International Corporation, a Delaware corporation (“Parent”), and Navistar, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (the “Borrower” and, together with Parent,
“you”), would like (i) JPMorgan and Goldman Sachs to act as lead arrangers and bookrunners (acting in such capacities, the “Lead Arrangers”) in connection with, (ii) JPMorgan Chase Bank and Goldman Sachs
to commit to provide the financing for (acting in such capacities, the “Initial Lenders”) and (iii) JPMorgan Chase Bank to act as administrative agent for, the senior secured credit facility described herein (the
“Facility”), in each case on the terms and subject to the conditions set forth in this letter and the attached Exhibits A and B hereto (such Exhibits (collectively, the “Term Sheet”), together with this letter
and Exhibit C, collectively, as amended, modified or supplemented from time to time, the “Commitment Letter”). Capitalized terms used but not defined in this letter are used with the meanings assigned to them in the Exhibits
attached hereto. 
 1. Commitments 
 Each Initial Lender is pleased to advise you of its commitment, severally and not jointly, to provide 50% of the amount of the Facility upon the terms and subject solely to the conditions set forth or
expressly referred to in this letter and the Term Sheet. 
 In addition, if the amendment to the Existing ABL Credit Agreement
conforms to the requirements set forth in paragraph 1 of Exhibit B and is otherwise in form and substance reasonably satisfactory to JPMorgan Chase Bank, JPMorgan Chase Bank will consent to such amendment in connection with the initial funding under
the Facility. 

 2. Titles and Roles 
 It is agreed that (i) the Lead Arrangers will act as lead arrangers and bookrunners for the Facility, (ii) JPMorgan Chase Bank will act as sole administrative agent for the Facility and
(iii) Goldman Sachs will act as syndication agent for the Facility. 
 It is further agreed that JPMorgan will have
“left” placement in any marketing materials or other documentation used in connection with the Facility. Except as otherwise provided herein, you agree that no other agents, co-agents, arrangers, co-arrangers, bookrunners, co-bookrunners,
managers or co-managers will be appointed, no other titles will be awarded and no compensation (other than that expressly contemplated by the Term Sheet and Fee Letters referred to below) will be paid in connection with the Facility unless you and
we shall so reasonably agree (it being understood and agreed that no other agent, co-agent, arranger, co-arranger, bookrunner, co-bookrunner, manager or co-manager shall be entitled to greater economics in respect of the Facility than the Commitment
Parties). It is understood that you shall have the right to appoint, with up to 40% of the economics and commitment amounts for the Facility, up to 2 additional financial institutions as bookrunners and up to an additional 3 financial institutions
as co-agents or co-managers (or such other number of financial institutions as mutually agreed) (the “Additional Lenders”); provided that any such institution has provided its commitment to the Facility no later than the
earlier of the public announcement of the Facility or 5 p.m., New York City time, on August 1, 2012. The commitments of the Initial Lenders hereunder shall be reduced on a pro rata basis as and when corresponding commitments with respect to the
Facility have been received from the Additional Lenders. 
 3. Syndication 

We intend to syndicate the Facility to a group of lenders (other than Disqualified Lenders) identified by us in consultation with you
(together with the Initial Lenders, the “Lenders”). The Commitment Parties intend to commence syndication efforts promptly, and you agree actively to assist the Commitment Parties in completing a syndication reasonably satisfactory
to the Commitment Parties and you. Such assistance shall include (A) your using commercially reasonable efforts to ensure that the syndication efforts benefit from your existing banking relationships, (B) direct contact between your senior
management and advisors and the proposed Lenders, (C) your preparing and providing to the Commitment Parties all customary or reasonably available or producible information with respect to you and your subsidiaries, including all customary
financial information, Projections (as defined below), and collateral-related information, as the Commitment Parties may reasonably request in connection with the arrangement and syndication of the Facility and your assistance in the preparation of
one or more confidential information memoranda (each, a “Confidential Information Memorandum”) and other customary marketing materials to be used in connection with the syndication (all such information, memoranda and material,
“Information Materials”), (D) your hosting, with the Commitment Parties, of one meeting of prospective Lenders at a time and location to be mutually agreed (and additional teleconference calls as reasonably requested),
(E) your using your commercially reasonable efforts to obtain ratings for the Facility from each of Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Financial Services LLC
(“S&P”) as soon as practicable, and (F) your ensuring that, until the earlier of achieving a Successful Syndication (as defined in the Syndication Fee Letter) and 60 days following the Closing Date, there is no competing
offering, placement, arrangement or syndication of any debt securities or bank financing or announcement thereof by or on behalf of you or your domestic Restricted Subsidiaries (other than (i) the Facility or any refinancing thereof,
(ii) any amendment of the Existing ABL Credit Agreement, so long as such amendment is consistent with the provisions of Exhibit B attached hereto, (iii) debt disclosed to the Lead Arrangers on or prior to the date hereof and (iv) debt
incurred in the ordinary course of business). Without limiting your obligations to assist with syndication efforts as set forth above, notwithstanding anything to the contrary contained in this Commitment Letter or the Fee Letters or any other
letter agreement or undertaking concerning the financing of the transactions to the contrary, each 

  
 2 

 
Commitment Party agrees that, so long as the conditions set forth in Section 6 of this Commitment Letter and in the Term Sheet are satisfied (or, as the case may be, waived), neither the
commencement nor completion of such syndication, nor the obtaining of the ratings referenced above, is a condition to its commitments hereunder or the initial funding of the Facility on the Closing Date. 

The Commitment Parties will manage, in consultation with you, all aspects of the syndication, including decisions as to the selection of
institutions (other than Disqualified Lenders) to be approached and when they will be approached, when commitments will be accepted, which institutions will participate, the allocation of the commitments among the Lenders and the amount and
distribution of fees among the Lenders; provided, that notwithstanding the Commitment Parties’ right to syndicate the Facility and receive commitments with respect thereto, (i) no Initial Lender shall be relieved, released or
novated from its obligations hereunder (including its obligation to fund the Facility on the Closing Date in accordance with the terms and conditions of this Commitment Letter) in connection with any syndication, assignment or participation of the
Facility (other than assignment to Additional Lenders), including its commitment in respect thereof, until after the Closing Date has occurred, (ii) no assignment or novation by any Initial Lender (other than assignment or novation to
Additional Lenders) shall become effective as between you and such Initial Lender with respect to all or any portion of such Initial Lender’s commitment in respect of the Facility until the initial funding of the Facility and (iii) unless
you otherwise agree in writing, each Initial Lender shall retain exclusive control over all rights and obligations with respect to its commitment in respect of the Facility (other than commitments reduced pursuant to the accession of the Additional
Lenders), including all rights with respect to consents, modifications, supplements, waivers and amendments, until the Closing Date has occurred. In no event shall the Commitment Parties be subject to any fiduciary or other implied duties in
connection with the transactions contemplated hereby. 
 At the request of the Commitment Parties, you agree to assist in the
preparation of a version of each Confidential Information Memorandum or other Information Material (a “Public Version”) consisting exclusively of information with respect to you and your subsidiaries that is either publicly
available or not material with respect to you and your subsidiaries or any of your securities for purposes of United States federal and state securities laws (such information, “Non-MNPI”). Such Public Version, together with any
other information prepared by you or your subsidiaries or representatives and conspicuously marked “Public” (collectively, the “Public Information”), which at a minimum means that the word “Public” will appear
prominently on the first page of any such information, may be distributed by us to prospective Lenders who have advised us that they wish to receive only Non-MNPI (“Public Side Lenders”). You acknowledge and agree that, in addition
to Public Information, (a) drafts and final definitive documentation with respect to the Facility (other than schedules identified by you), (b) administrative materials prepared by the Commitment Parties for prospective Lenders (such as a
lender meeting invitation, allocations and funding and closing memoranda), (c) certain information related to collateral or guarantors (including information to be attached hereto as Exhibit C, the contents of which shall be reasonably
satisfactory to the Arrangers and the Delaware opinion referenced in paragraph 3 of Exhibit B) and (d) notifications of changes in the terms of the Facility may be distributed to Public Side Lenders. You acknowledge that Commitment Party
public-side employees and representatives who are publishing debt analysts may participate in any meetings held pursuant to clause (D) of the second preceding paragraph; provided that such analysts shall not publish any information
obtained from such meetings (i) until the syndication of the Facility has been completed upon the making of allocations by the Lead Arrangers and the Lead Arrangers freeing the Facility to trade or (ii) in violation of any confidentiality
agreement between you and the relevant Commitment Party. 
 In connection with our distribution to prospective Lenders of any
Confidential Information Memorandum and, promptly following our request, any other Information Materials, you will execute and deliver to us a customary authorization letter authorizing such distribution and, in the case of any Public Version
thereof or other Public Information, representing that, as of the date of distribution, it only contains Non-MNPI. Each Confidential Information Memorandum will be accompanied by a disclaimer exculpating you and us with respect to any use thereof
and of any related Information Materials by the recipients thereof. 

  
 3 

 4. Information 
 You hereby represent and warrant that (a) all written information (including all Information Materials), other than the Projections, budgets, estimates and information of a general economic or
industry specific nature (the “Information”), that has been or will be made available to us by you or any of your representatives in connection with the transactions contemplated hereby, when taken as a whole and as supplemented,
does not or will not, when furnished to us, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under
which such statements are made (giving effect to all supplements thereto) and (b) the financial projections and other forward-looking information about you and your subsidiaries (the “Projections”), budgets and estimates that
have been or will be made available to us by you or any of your representatives in connection with the transactions contemplated hereby have been or will be prepared in good faith based upon assumptions believed by you to be reasonable at the time
furnished to us (it being recognized by the Commitment Parties that such Projections, budgets and estimates are not to be viewed as a guarantee of performance or facts and that actual results during the period or periods covered by any such
Projections may differ from the projected results, and such differences may be material). You agree that if, at any time until the earlier of achieving a Successful Syndication and 60 days following the Closing Date, you become aware that any of the
representations in the preceding sentence would be incorrect, in any material respect if the same were remade, then you will promptly supplement the Information and the Projections so that such representations when remade would be correct, in all
material respects, under those circumstances. You understand that in arranging and syndicating the Facility we may use and rely on the Information and Projections without independent verification thereof. 

5. Fees 
 As consideration for
the commitments and agreements of the Commitment Parties hereunder, you agree to pay or cause to be paid the nonrefundable fees described in the (i) fee letter dated the date hereof and delivered herewith by the Commitment Parties to you (the
“Syndication Fee Letter”), (ii) fee letter dated the date hereof and delivered herewith by the Commitment Parties to you relating to the arrangement of the Facilities (the “Arranger Fee Letter”) and
(iii) fee letter dated the date hereof and delivered herewith by JPMorgan Chase Bank to you (the “Administrative Agent Fee Letter” and together with the Syndication Fee Letter and the Arranger Fee Letter, the “Fee
Letters”) on the terms and subject to the conditions set forth therein. 
 6. Conditions 

Each Commitment Party’s commitments and agreements hereunder are subject to the express conditions set forth in this Section 6
and in the Term Sheet. 
 Each Commitment Party’s commitments and agreements hereunder are further subject to
(a) since the date hereof, there not having been any change, development or event that, individually or in the aggregate, has had or would reasonably be expected to have a material adverse effect on the business, financial condition, or results
of operations of Parent and its subsidiaries, taken as a whole other than in respect of Excluded Matters, (b) such Commitment Party’s not becoming aware after the date hereof of any information or other matter (including any matter
relating to assumptions for the Projections) affecting Parent or its subsidiaries that is inconsistent in a material and adverse manner with any such information or other matter of which such Commitment Party was aware prior to the date hereof or
could reasonably be 

  
 4 

 
expected to materially impair the syndication of the Facility and (c) your performance in all material respects of all your obligations hereunder and under the Fee Letters. “Excluded
Matters” means (i) any regulatory action by the U.S. Environmental Protection Agency (the “EPA”) or the California Air Resources Board (“CARB”) with respect to the NOx emissions standards for the 15L
and 13L heavy-duty diesel engines (including, without limitation, any such action resulting from the decision of the United States Court of Appeals for the District of Columbia Circuit in Mack Trucks, Inc. and Volvo Group North America, LLC v.
Environmental Protection Agency decided June 12, 2012) and events and conditions arising in connection therewith (the “Regulatory Actions”) but only so long as, notwithstanding any such Regulatory Actions, Parent and its
subsidiaries shall (at all times on and after the date hereof and, in the case of the 15L heavy-duty diesel engines, prior to Parent and its subsidiaries commencing to sell trucks in the United States containing 15L heavy-duty diesel engines
purchased from Cummins Inc. (“Cummins”) that have been certified by the EPA as complying with the NOx emissions standards for the 15L heavy-duty diesel engines and, in the case of the 13L heavy-duty diesel engines, prior to Parent
and its subsidiaries having developed a 13L heavy-duty ICT+ diesel engine and such engine having been certified by the EPA as complying with the NOx emissions standards for the 13L heavy-duty diesel engines) be permitted to sell noncompliant 15L and
13L heavy-duty diesel engines (and trucks containing such engines) in the United States) and (ii) any adverse effect on the general affairs, assets, liabilities, financial position or results of operations of Parent and its subsidiaries, taken
as a whole, on account of or related to the Regulatory Actions. 
 7. Indemnification and Expenses 

You agree (a) to indemnify and hold harmless the Commitment Parties, their affiliates and their respective directors, officers,
employees, advisors, agents and other representatives (each, an “indemnified person”) from and against any and all actual losses, claims, damages and liabilities to which any such indemnified person may become subject arising out of
or in connection with this Commitment Letter, the Fee Letters, the Facility or the use of the proceeds thereof or any claim, litigation, investigation or proceeding (a “Proceeding”) relating to any of the foregoing, regardless of
whether any indemnified person is a party thereto, whether or not such Proceedings are brought by you, your equity holders, affiliates, creditors or any other person, and to reimburse each indemnified person promptly following written demand
(including documentation reasonably supporting such request) for any reasonable legal or other out-of-pocket expenses incurred in connection with investigating or defending any of the foregoing, provided that the foregoing indemnity will not,
as to any indemnified person, apply to losses, claims, damages, liabilities or related expenses to the extent they are found by a final, nonappealable judgment of a court of competent jurisdiction to arise from (i) the willful misconduct or
gross negligence of such indemnified person or its directors, officers or employees (collectively, the “Related Parties”) or (ii) from a material breach in bad faith of the obligations of such indemnified person (or its Related
Parties) under this Commitment Letter, and (b) regardless of whether the Closing Date occurs, to reimburse each Commitment Party and its affiliates for all reasonable out-of-pocket expenses that have been invoiced prior to the Closing Date or
following termination or expiration of the commitments hereunder (including reasonable due diligence expenses, syndication expenses, travel expenses, and the reasonable fees, charges and disbursements of counsel) incurred in connection with the
Facility and any related documentation (including this Commitment Letter and the definitive financing documentation) or the administration, amendment, modification or waiver thereof. It is further agreed that each Commitment Party shall only have
liability to you (as opposed to any other person) and that each Commitment Party shall be liable solely in respect of its own commitment to the Facility on a several, and not joint, basis with any other Commitment Party. No indemnified person shall
be liable for any damages arising from the use by others of Information or other materials obtained through electronic, telecommunications or other information transmission systems, except to the extent any such damages are found by a final,
nonappealable judgment of a court of competent jurisdiction to arise from the gross negligence, material breach or willful misconduct of such indemnified person (or any of its Related Parties). None of the indemnified persons or

  
 5 

 
you, or any of your or their respective affiliates or the respective directors, officers, employees, advisors, and agents of the foregoing shall be liable for any indirect, special, punitive or
consequential damages in connection with this Commitment Letter, the Fee Letters, the Facility or the transactions contemplated hereby, provided that nothing contained in this sentence shall limit your indemnity obligations to the extent set
forth in this Section 7. 
 8. Sharing of Information, Absence of Fiduciary Relationship, Affiliate Activities 

You acknowledge that each Commitment Party (or an affiliate) is a full service securities firm and such person may from time to time
effect transactions, for its own or its affiliates’ account or the account of customers, and hold positions in loans, securities or options on loans or securities of you, your affiliates and of other companies that may be the subject of the
transactions contemplated by this Commitment Letter. In addition, each Commitment Party and its affiliates will not use confidential information obtained from you or your affiliates or on your or their behalf by virtue of the transactions
contemplated hereby in connection with the performance by such Commitment Party and its affiliates of services for other companies or persons and the Commitment Party and its affiliates will not furnish any such information to any of their other
customers. You also acknowledge that the Commitment Parties and their respective affiliates have no obligation to use in connection with the transactions contemplated hereby, or to furnish to you, confidential information obtained from other
companies or persons. 
 You further acknowledge and agree that (a) no fiduciary, advisory or agency relationship between
you and the Commitment Parties is intended to be or has been created in respect of any of the transactions contemplated by this Commitment Letter, irrespective of whether the Commitment Parties have advised or are advising you on other matters,
(b) the Commitment Parties, on the one hand, and you, on the other hand, have an arm’s length business relationship that does not directly or indirectly give rise to, nor do you rely on, any fiduciary duty to you or your affiliates on the
part of the Commitment Parties as a result of the transactions contemplated by this commitment letter, (c) you are capable of evaluating and understanding, and you understand and accept, the terms, risks and conditions of the transactions
contemplated by this Commitment Letter, (d) you have been advised that the Commitment Parties are engaged in a broad range of transactions that may involve interests that differ from your interests and that the Commitment Parties have no
obligation to disclose such interests and transactions to you, (e) you have consulted your own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate, (f) each Commitment Party has been, is, and will be
acting solely as a principal and, except as otherwise expressly agreed in writing by it and the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for you, any of your affiliates and (g) none of the
Commitment Parties has any obligation to you or your affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein or in any other express writing executed and delivered by such Commitment Party
and you or any such affiliate. 
 9. Confidentiality 
 This Commitment Letter is delivered to you on the understanding that neither this Commitment Letter nor the Fee Letters nor any of their terms or substance shall be disclosed by you, to any other person
except (a) you and your officers, directors, employees, affiliates, members, partners, attorneys, accountants, agents and advisors, in each case on a confidential and need-to-know basis, (b) in any legal, judicial or administrative
proceeding or as otherwise required by law or regulation or as requested by a governmental authority (in which case you agree, to the extent permitted by law, to inform us promptly in advance thereof), (c) this Commitment Letter and the
existence and contents hereof (but not the Fee Letters or the contents thereof other than the existence thereof and the contents thereof as part of projections, pro forma information and a generic disclosure of aggregate sources and uses to the
extent customary in marketing materials and other required filings) may be disclosed in any syndication or other marketing material in connection with the Facility or in connection with any public filing requirement, (d) the Term Sheet may be
disclosed to potential Lenders and to any rating agency in connection with the Facility and (e) in connection with any remedy or enforcement of any right under this Commitment Letter. 

  
 6 

 The Commitment Parties shall use all nonpublic information received by them in connection
with the Facility solely for the purposes of providing the services that are the subject of this Commitment Letter and shall treat confidentially all such information; provided, however, that nothing herein shall prevent any Commitment
Party from disclosing any such information (a) to rating agencies, (b) to any Lenders or participants or prospective Lenders or participants (other than Disqualified Lenders), (c) in any legal, judicial, administrative proceeding or
other compulsory process or as required by applicable law or regulations (in which case such Commitment Party shall promptly notify you, in advance, to the extent permitted by law), (d) upon the request or demand of any regulatory authority
having jurisdiction over such Commitment Party or its affiliates, (e) to the employees, legal counsel, independent auditors, professionals and other experts or agents of such Commitment Party (collectively, “Representatives”)
on a “need to know” basis who are informed of the confidential nature of such information and are or have been advised of their obligation to keep information of this type confidential, (f) to any of its respective affiliates
(provided that any such affiliate is advised of its obligation to retain such information as confidential, and such Commitment Party shall be responsible for its controlled affiliates’ compliance with this paragraph) solely in connection
with the Facility and any related transactions, (g) to the extent any such information becomes publicly available other than by reason of disclosure by such Commitment Party, its affiliates or Representatives in breach of this Commitment Letter
or other confidentiality obligations owed to you or your affiliates and (h) for purposes of establishing a “due diligence” defense or in connection with any remedy or enforcement of any right under this Commitment Letter or the Fee
Letters; provided that the disclosure of any such information to any Lenders or prospective Lenders or participants or prospective participants referred to above shall be made subject to the acknowledgment and acceptance by such Lender or
prospective Lender or participant or prospective participant that such information is being disseminated on a confidential basis in accordance with standard syndication processes of such Commitment Party or customary market standards for
dissemination of such type of information. The provisions of this paragraph shall automatically terminate one year following the date of this Commitment Letter. 
 10. Miscellaneous 
 This Commitment Letter shall not be assignable by you without
the prior written consent of each Commitment Party (and any purported assignment without such consent shall be null and void), is intended to be solely for the benefit of the parties hereto and the indemnified persons and is not intended to and does
not confer any benefits upon, or create any rights in favor of, any person other than the parties hereto and the indemnified persons to the extent expressly set forth herein. The Commitment Parties reserve the right to employ the services of their
affiliates in providing services contemplated hereby and to allocate, in whole or in part, to their affiliates certain fees payable to the Commitment Parties in such manner as the Commitment Parties and their affiliates may agree in their sole
discretion. This Commitment Letter may not be amended or waived except by an instrument in writing signed by you and each Commitment Party. This Commitment Letter may be executed in any number of counterparts, each of which shall be an original, and
all of which, when taken together, shall constitute one agreement. Delivery of an executed signature page of this Commitment Letter by facsimile or electronic transmission (e.g., “pdf” or “tif”) shall be effective as delivery of
a manually executed counterpart hereof. This Commitment Letter and the Fee Letters are the only agreements that have been entered into among us and you with respect to the Facility and set forth the entire understanding of the parties with respect
thereto. This Commitment Letter and any claim or controversy arising hereunder or related hereto shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York. 

  
 7 

 You and we hereby irrevocably and unconditionally submit to the exclusive jurisdiction of
any state or Federal court sitting in the Borough of Manhattan in the City of New York over any suit, action or proceeding arising out of or relating to the transactions contemplated hereby, this Commitment Letter or the Fee Letters or the
performance of services hereunder or thereunder. You and we agree that service of any process, summons, notice or document by registered mail addressed to you or us shall be effective service of process for any suit, action or proceeding brought in
any such court. You and we hereby irrevocably and unconditionally waive (to the extent permitted by applicable law) any objection to the laying of venue of any such suit, action or proceeding brought in any such court and any claim that any such
suit, action or proceeding has been brought in any inconvenient forum. You and we hereby irrevocably waive (to the extent permitted by applicable law) trial by jury in any suit, action, proceeding, claim or counterclaim brought by or on behalf of
any party related to or arising out of the transactions contemplated hereby, this Commitment Letter or the Fee Letters or the performance of services hereunder or thereunder. 
 Each of the Commitment Parties hereby notifies you that, pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law on October 26, 2001) (the “PATRIOT
Act”), it is required to obtain, verify and record information that identifies the Borrower and each Guarantor, which information includes names, addresses, tax identification numbers and other information that will allow such Lender to
identify the Borrower and each Guarantor in accordance with the PATRIOT Act. This notice is given in accordance with the requirements of the PATRIOT Act and is effective for the Commitment Parties and each Lender. 

The indemnification, expense, choice of law, jurisdiction, waiver of jury trial, syndication and confidentiality provisions contained
herein and in the Fee Letters shall remain in full force and effect regardless of whether definitive financing documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or the commitments hereunder;
provided that your obligations under this Commitment Letter (other than your obligations with respect to (a) assistance to be provided in connection with the syndication thereof (including as to the provision of information and
representations with respect thereto) and (b) confidentiality) shall automatically terminate and be superseded, to the extent comparable, by the provisions of the Facility Documentation upon the initial funding thereunder, and you shall
automatically be released from all liability in connection therewith at such time, in each case to the extent the Facility Documentation has comparable provisions with comparable coverage. You may terminate this Commitment Letter and the Fee Letters
by written notice to the Commitment Parties. 
 If the foregoing correctly sets forth our agreement, please indicate your
acceptance of the terms of this Commitment Letter and the Fee Letters by returning to us executed counterparts of this Commitment Letter and the Fee Letters not later than 5:00 p.m., New York City time, on July 31, 2012. This offer will
automatically expire at such time if we have not received (i) such executed counterparts in accordance with the preceding sentence and (ii) fees contemplated by the Syndication Fee Letter and the Arranger Fee Letter due and payable to the
Arrangers on the date hereof. In the event that you and the Lenders have not entered into a definitive credit agreement in respect of the Facility on or before September 15, 2012, then this Commitment Letter and the commitments hereunder shall
automatically terminate unless we shall, in our discretion, agree to an extension. 
 [REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK] 

  
 8 

 We are pleased to have been given the opportunity to assist you in connection with this
important financing. 
  

			
	Very truly yours,
	
	JPMORGAN CHASE BANK, N.A.
		
	 By:
	 	/s/ Richard W. Duker
		 	 Name: Richard W. Duker

		 	 Title:   Managing Director

  

			
	J.P. MORGAN SECURITIES LLC
		
	 By:
	 	/s/ Geoffrey Kirles
		 	 Name: Geoffrey Kirles

		 	 Title: Executive Director

  

			
	GOLDMAN SACHS LENDING PARTNERS LLC
		
	 By:
	 	/s/ Anna Ostrovsky
		 	 Name: Anna Ostrovsky

		 	 Title: Authorized Signatory

 Commitment Letter Signature Page 

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

 

			
	NAVISTAR INTERNATIONAL CORPORATION
		
	By:	 	/s/ Andrew J. Cederoth
		 	Name: Andrew J. Cederoth
		 	 Title: Executive Vice President and
          Chief Financial Officer

  

			
	NAVISTAR, INC.
		
	By:	 	/s/ Andrew J. Cederoth
		 	Name: Andrew J. Cederoth
		 	 Title: Executive Vice President and
          Chief Financial Officer

 Commitment Letter Signature Page 

 EXECUTION VERSION 

EXHIBIT A 

CONFIDENTIAL 

Navistar International Corporation 
 Navistar, Inc. 
 $1,000,000,000 Senior Secured Term Loan 

Summary of Principal Terms and Conditions 
 This Summary outlines certain terms of the Facility referred to in the Commitment Letter, of which this Exhibit A is a part. 

 

			
	Borrower:	  	Navistar, Inc., a Delaware corporation (the “Borrower”) that is a direct wholly owned subsidiary of Navistar International Corporation, a Delaware corporation
(“Parent”).
		
	Guarantors:	  	Parent and each of its existing and certain subsequently acquired or organized domestic (other than NC2 Global LLC (“NC2”) and International of Mexico Holding
Corporation (“IMHC” and, together with NC2, the “CFC Holding Companies”)) Restricted Subsidiaries (as defined under “Unrestricted Subsidiaries” below), other than certain immaterial subsidiaries to be
agreed, will unconditionally, jointly and severally, guarantee all obligations of the Borrower and each other Guarantor (other than, in the case of a Subsidiary Guarantor, Parent) under the Facility (as defined below). The foregoing guarantor
subsidiaries are collectively referred to as the “Subsidiary Guarantors”; the Subsidiary Guarantors and Parent are collectively referred to as the “Guarantors”; and all such guarantees are referred to as the
“Guarantees”. The Guarantors and the Borrower are collectively referred to as the “Loan Parties.” Each CFC Holding Company will provide a limited guarantee (the “Limited Guarantees”) of the
obligations of the Loan Parties, secured by, and (subject to the further assurances covenant) with sole recourse to, (a) in the case of IMHC, the pledge of 65% of the equity interests owned by IMHC in Navistar International Mexico S. de R.L. de
C.V. and (b) in the case of NC2, the pledge of 65% of the equity interests owned by NC2 in NC2 Global (Gibraltar) Ltd. (such pledges, the “Limited Guarantee Pledges”). For the avoidance of doubt, no Unrestricted Subsidiary (as
defined under “Unrestricted Subsidiaries” below), including Navistar Financial Corporation (“NFC”), shall be a Subsidiary Guarantor.
		
	Purpose/Use of Proceeds:	  	The proceeds of loans under the Facility will be used (a) to repay in part or in full the loans outstanding under the ABL Credit Agreement dated as of October 18, 2011 (as amended,
modified or supplemented from time to time on or prior to the date of the Commitment Letter, the “Existing ABL Credit Agreement”), by and among the Borrower, certain subsidiaries of the Borrower party thereto, the lenders party
thereto, Bank of America, N.A., as administrative agent, and certain other agents party thereto, (b) to pay fees and expenses incurred in connection with the Facility and the other transactions contemplated hereby and (c) to the extent of the
remaining proceeds thereof, for ongoing working capital requirements and other general corporate purposes of Parent and the Restricted Subsidiaries.

  
 Exhibit A-1

			
		
	Lead Arrangers and Bookrunners:	  	J.P. Morgan Securities LLC and Goldman Sachs Lending Partners LLC (collectively, the “Arrangers”).
		
	Syndication Agent:	  	Goldman Sachs Lending Partners LLC.
		
	Administrative Agent:	  	JPMorgan Chase Bank, N.A. (in such capacity and together with its permitted successors and assigns, the “Administrative Agent”).
		
	Lenders:	  	Banks and other financial institutions selected by the Arrangers and reasonably acceptable to the Parent (the “Lenders”); provided that no
Disqualified Lenders may become Lenders.
		
		  	“Disqualified Lenders” shall mean competitors (and affiliates thereof) of Parent and its subsidiaries and certain financial institutions and lenders, each
identified in writing by Parent to the Arrangers prior to the execution of the Commitment Letter.
		
	Facility:	  	A senior secured term loan facility in an aggregate principal amount of up to $750,000,000 (the “Term Facility”) and a senior secured delayed draw term loan
facility in an aggregate principal amount of up to $250,000,000 (the “Delayed Draw Facility” and together with the Term Facility, the “Facility”). Loans under the Facility will be available in U.S.
dollars.
		
	Term Facility Availability:	  	A single drawing may be made under the Term Facility on the date of the effectiveness thereof (the “Closing Date”). Amounts repaid or prepaid under the Facility may
not be reborrowed.
		
	Delayed Draw Facility Availability:	  	Up to three drawings may be made under the Delayed Draw Facility on and from the Closing Date until the 90th day after the Closing Date (the “Delayed Draw Availability Period”); provided that each
drawing shall be in a minimum principal amount of $75,000,000.
		
	Unused Commitment Fee:	  	During the Delayed Draw Availability Period, the Borrower shall pay a commitment fee, calculated at a rate per annum equal to 50% of the then applicable Eurodollar Applicable Margin
for the period for which payment is being made, on the average daily unused portion of the Delayed Draw Facility, payable on the earlier of (i) the date of drawing (with respect to the portion drawn on such date) and (ii) the last day of the Delayed
Draw Availability Period.
		
	Maturity:	  	The Facility will mature on, as applicable, the five year anniversary of the Closing Date or if, as of July 16, 2014, more than $100,000,000 of the 3.00% Senior Subordinated
Convertible Notes due 2014 of Parent (the “Convertible Notes”) shall remain outstanding (having not been redeemed, repurchased and cancelled or defeased in full, or refinanced in full with Convertible Notes Permitted Refinancing
Indebtedness (to be defined, but in any event to require a maturity at least 91 days after the five-year anniversary of the Closing Date and not to be subject to any mandatory prepayment, repurchase or redemption prior to the final maturity
thereof)), the Facility will mature on July 16, 2014.

  
 Exhibit A-2

			
		
	Amortization:	  	The outstanding principal amount of the Facility will be payable, prior to the maturity thereof, in equal quarterly installments in an aggregate annual amount equal to 1.00% of the
original principal amount of the Facility, commencing with the first full fiscal quarter ending after the Closing Date. The remaining balance of the Facility will be due on the maturity date therefor.
		
	Interest Rate:	  	Loans outstanding under the Facility will bear interest, at the Borrower’s option, at (a) the Base Rate plus (the Eurodollar Applicable Margin minus 1.00%) or (b) the reserve
adjusted Eurodollar Rate plus the applicable margin set forth in the Syndication Fee Letter (such interest rate margin for the Eurodollar Rate, the “Eurodollar Applicable Margin”).
		
		  	The terms “Base Rate” and “reserve adjusted Eurodollar Rate” will have meanings customary and appropriate for financings of this type, and the
basis for calculating accrued interest and the interest periods for loans bearing interest at the reserve adjusted Eurodollar Rate will be customary and appropriate for financings of this type, subject to a reserve adjusted Eurodollar Rate
“floor” as set forth in the Syndication Fee Letter. In no event shall the Base Rate be less than the one month reserve adjusted Eurodollar Rate (after giving effect to any reserve adjusted Eurodollar Rate “floor”) plus 1.00%
per annum.
		
		  	After the occurrence and during the continuance of any event of default in respect of any payment default or any bankruptcy or insolvency event, interest on amounts then outstanding
will accrue at a rate equal to (a) in the case of the principal of loans, the rate then applicable thereto, (b) in the case of other amounts, the rate then applicable to loans under the Facility bearing interest by reference to the Base Rate, in
each case plus 2.00% per annum. Such interest will be payable on written demand.
		
	Interest Payments:	  	Quarterly for loans under the Facility bearing interest by reference to the Base Rate; except as set forth below, on the last day of selected interest periods (which will be one,
two, three and six months) for loans under the Facility bearing interest by reference to the reserve adjusted Eurodollar Rate (and at the end of every three months, in the case of interest periods of longer than three months); and upon prepayment,
in each case payable in arrears and computed on the basis of a 360-day year (365/366-day year with respect to loans bearing interest by reference to the Base Rate).
		
	Voluntary Prepayments:	  	Loans under the Facility may be prepaid, in whole or in part, without premium or penalty (other than as expressly provided under “Call Premium” below);
provided that prepayment of loans under the

  
 Exhibit A-3

			
		  	Facility bearing interest determined by reference to the reserve adjusted Eurodollar Rate shall be subject to reimbursement for any related customary breakage costs. Voluntary
prepayments will be applied as directed by the Borrower (or, absent direction by the Borrower, in direct order of maturity) and pro rata between the Term Facility and the Delayed Draw Facility.
		
	Mandatory Prepayments:	  	Subject to the terms of an intercreditor agreement (which shall be in form and substance reasonably satisfactory to the Arrangers) with lenders under the Amended ABL Credit
Agreement, Loans under the Facility will be required to be prepaid with:
		
		  	 1.       Asset Sales: 100% of the net cash proceeds of the sale or other
disposition of any assets of any Loan Party, subject to exceptions and thresholds to be agreed, including exceptions for (a) net cash proceeds of sales or other dispositions of assets in the ordinary course of business, (b) net cash proceeds of
sales of retail and wholesale accounts receivable in the ordinary course of business (including such sales to NFC) or otherwise pursuant to a Master Intercompany Agreement (to be defined consistently with the Existing ABL Credit Agreement),
(c) certain internal restructuring with respect to the Borrower’s Canadian subsidiaries and Mexican subsidiaries to be mutually agreed (the “Integrated Global Structuring”) and (d) so long as no default or event of default
shall have occurred, net cash proceeds that are reinvested or contractually committed to be reinvested in assets useful in the business of the Borrower and the other Loan Parties (which assets, in the case of sales or other dispositions of any
assets constituting Collateral (as defined below), shall also constitute Collateral) within one year of receipt thereof (or an additional 180 days if a commitment to reinvest is entered into within the initial one year period).

		
		  	 2.       Insurance/Condemnation Proceeds: 100% of the net cash proceeds of insurance
paid on account of any loss, or compensation paid in respect of any taking, of any assets of any Loan Party, subject to exceptions to be agreed, including an exception for net cash proceeds that are reinvested or contractually committed to be
reinvested (including through the repair or restoration of the damaged or destroyed assets) in assets useful in the business of the Borrower and the other Loan Parties (which assets, in the case of casualty or condemnation affecting assets
constituting Collateral, shall also constitute Collateral) within one year of receipt thereof (or an additional 180 days if a commitment to reinvest is entered into within the initial one year period).

		
		  	 3.       Incurrence of Indebtedness: 100% of the net cash proceeds received from the
incurrence of indebtedness by any Loan Party (other than indebtedness otherwise permitted under the credit agreement for the Facility), payable no later than the third business day following the date of receipt.

  
 Exhibit A-4

			
		
		  	Mandatory prepayments will be without premium or penalty (other than as provided under “Call Premium” below); provided that prepayment of loans bearing
interest by reference to the reserve adjusted Eurodollar Rate shall be subject to reimbursement for any related breakage costs. Mandatory prepayments will be applied pro rata to the remaining scheduled amortization installments and the payment due
at final maturity of the Facility and between the Term Facility and the Delayed Draw Facility.
		
	Call Premium:	  	In the event all or any portion of the Facility is prepaid for any reason (including payment at maturity but other than, for the avoidance of doubt, any payment of scheduled
amortization installments as set forth above) or is subject to any amendment that reduces the weighted average yield thereof, in each case, prior to the third anniversary of the Closing Date, then each Lender whose loans under the Facility are
prepaid or are subject to such amendment (or which is required to assign any of its loans under the Facility pursuant to a “yank-a-bank” or similar provision in the credit agreement for the Facility in connection with such prepayment or
amendment) shall be paid a prepayment fee equal to (a) 1.00% of the aggregate principal amount prepaid or subject to such amendment (or such assignment), if such prepayment or amendment (or such assignment) occurs on or prior to the first
anniversary of the Closing Date, (b) 2.00% of the aggregate principal amount prepaid or subject to such amendment (or such assignment) if such prepayment or amendment (or such assignment) occurs after the first anniversary of the Closing Date
but on or prior to the second anniversary of the Closing Date and (c) 1.00% of the aggregate principal amount prepaid or subject to such amendment (or such assignment) if such prepayment or amendment (or such assignment) occurs after the second
anniversary of the Closing Date but on or prior to the third anniversary of the Closing Date.
		
		  	For purposes hereof, “weighted average yield” of loans under the Facility will be determined as weighted average yield to stated maturity of such loans (which shall
be assumed to be, solely for purposes of this paragraph, the five-year anniversary of the Closing Date) based on the interest rate or rates applicable thereto and giving effect to all upfront or similar fees or original issue discount payable to the
Lenders advancing such loans with respect thereto (in each case, with upfront or similar fees or original issue discount being deemed to constitute like amounts of original issue discount, and such fees and original discount being equated to
interest margins in a manner consistent with generally accepted financial practice based on an assumed life to maturity of the lesser of four years and the tenor of such loans) and to any interest rate “floor” (and, in the case of any
floating rate indebtedness, the rate of interest applicable to such indebtedness at the time of determination shall be assumed to be the rate applicable at all times prior to stated maturity, provided that appropriate adjustments shall
be made for any scheduled changes in rates of interest provided for in the definitive documentation).

  
 Exhibit A-5

			
		
	Security:	  	The Facility and the Guarantees will be secured by the following assets of the Borrower and each Guarantor, in each case, whether owned on the Closing Date or thereafter acquired
(collectively, the “Collateral”): (a) a perfected first-priority pledge of all the equity interests owned by the Borrower or any Guarantor (provided that (i) no pledges shall be required of (A) equity
interests in any subsidiary of Parent constituting a “Restricted Subsidiary” under the Settlement Agreement dated as of March 30, 1993, as amended and restated as of June 30, 1993, between Parent and the class representatives in the class
action of Shy et al. v. Navistar, Civil Action No. C-3-92-333 (S.D. Ohio) (the “Shy Agreement”), (B) equity interests in any person that is not a wholly owned subsidiary of Parent to the extent that and for so long as a
pledge thereof would be prohibited under the organizational documents (including any equityholders’ or joint venture operating agreement) of such person without the consent of a person other than Parent or an affiliate thereof, (C) equity
interests in any CFC Holding Company or (D) equity interests in any Unrestricted Subsidiary to the extent that and for so long as a pledge thereof would be prohibited under the definitive documents governing third party indebtedness of such
Unrestricted Subsidiary existing on the date hereof or captive insurance company and (ii) pledges by the Borrower or any Guarantor of voting stock of any “controlled foreign corporation” will be limited to 65% thereof) and (b) perfected
first-priority (subject to, with respect to priority, certain permitted liens) security interests in, and mortgages on, accounts receivable, inventory (other than inventory constituting ABL Collateral (as defined below)) and goods, equipment,
general intangibles (including intellectual property and contract rights), instruments, investment property, real property (excluding any plant that constitutes a “Principal Property” under the Shy Agreement), cash, deposit and securities
accounts, commercial tort claims, letter of credit rights, chattel paper, documents, intercompany indebtedness (other than indebtedness for borrowed money issued by any subsidiary of Parent constituting a “Restricted Subsidiary” under the
Shy Agreement), which shall be evidenced by a note and, in the case of any indebtedness owing by the Borrower or any Guarantor, subordinated to their obligations under the Facility and the Guarantees, books and records pertaining to the foregoing
and proceeds of any the foregoing; provided that no assets of the Subsidiary Guarantors shall secure the Guarantee provided by Parent. The Limited Guarantees will be secured by the Limited Guarantee
Pledges.

  
 Exhibit A-6

			
		
		  	Notwithstanding the foregoing, the Collateral shall not include (a) any fee-owned real property that has a value less than an amount to be agreed, (b) any motor vehicles and
other assets subject to certificates of title, except to the extent perfection of a security interest therein may be accomplished by the filing of financing statements or an equivalent thereof in appropriate form in the applicable jurisdiction, (c)
letter of credit rights and commercial tort claims that have value less than an amount to be agreed, (d) certain excluded deposit accounts to be agreed, including zero balance payroll disbursement accounts and accounts that hold de minimis amounts
to be mutually agreed upon, (e)(i) any assets to the extent a security interest may not be granted in such assets as a matter of applicable law and (ii) any lease, license, contract or agreement or any rights or interests thereunder if and for so
long as the grant of a security interest therein would constitute or result in (A) the unenforceability of any right, title or interest of the Borrower or any Guarantor in or (B) a breach or termination pursuant to the terms of, or a default under,
any such lease, license, contract or agreement (other than to the extent that any such law or term would be rendered ineffective pursuant to the Uniform Commercial Code (“UCC”) or any other applicable law or principles of equity),
(f) any “intent to use” trademark application for which a statement of use has not been filed with the U.S. Patent and Trademark Office, but only to the extent that the grant of a security interest and lien would invalidate such
trademark application, (g) any asset subject to a capital lease or PMSI arrangement which prohibits the grants of security therein and (h) for the avoidance of doubt, deferred taxes, prepaid expenses and goodwill, as such terms are defined under the
U.S. GAAP. In addition, the Administrative Agent may agree to exclude particular assets from the Collateral if it determines, in consultation with Parent, that the cost of obtaining or perfecting a pledge, security interest or mortgage therein is
excessive in relation to the benefit afforded to the Lenders thereby. No foreign law pledge agreements shall be required.
		
		  	All the above-described pledges, security interests and mortgages shall be created on terms, and pursuant to documentation, reasonably satisfactory to the Administrative Agent and
the Borrower (including, in the case of real property, customary items such as reasonably satisfactory title insurance and, with respect to certain material real properties to be agreed, surveys).
		
		  	Obligations under the Amended ABL Credit Agreement (as defined in Exhibit B to the Commitment Letter) will be secured by inventory in the form of aftermarket parts sold to customers
through any parts distribution centers of the Borrowers (as defined therein) and certain limited assets relating thereto reasonably acceptable to the Arrangers and the Borrower (including certain accounts receivable arising therefrom) (the
“ABL Collateral”), but shall not be secured by any other assets of Parent and the Restricted Subsidiaries. There will be no comingling of cash between the Collateral and the ABL
Collateral.

  
 Exhibit A-7

			
		
	Representations and Warranties:	  	The credit agreement for the Facility will contain the following representations and warranties (with respect to Parent, the Borrower and the other Restricted Subsidiaries and, in
the case of certain representations and warranties as specified under “Unrestricted Subsidiaries” below, the Unrestricted Subsidiaries), subject to exceptions, qualifications and materiality qualifiers to be agreed: due organization;
requisite power and authority; qualification; equity interests and ownership; due authorization, execution, delivery and enforceability of the Loan Documents (as defined in Exhibit B); no conflicts with respect to organizational documents, the Shy
Agreement, the existing indentures, the other principal debt documents and certain other material agreements and, subject to a materiality qualifier, applicable law; governmental consents; historical, pro forma and projected financial statements and
condition (including representations with respect to financial information and other assumptions underlying the legal opinions delivered on the Closing Date); no material adverse change (subject to qualifications consistent with those set forth in
Section 6 of the Commitment Letter); no pending or threatened litigation or proceedings that could reasonably be expected to be material and adverse to Parent and its subsidiaries (taken as a whole) or that involve the Loan Documents or the
financing contemplated thereby; payment of material taxes; maintenance of material properties; environmental matters; absence of events of defaults under material agreements; Investment Company Act and other governmental regulation; Federal Reserve
Regulations and Exchange Act; ERISA and other employee and labor matters; solvency of (i) Parent and its subsidiaries (taken as a whole) and (ii) NFC and its subsidiaries (taken as a whole); compliance with laws; full disclosure; collateral matters;
adequate insurance; status as first lien senior debt and as “Senior Indebtedness” and “Designated Senior Indebtedness” under the indenture governing the Convertible Notes; the Shy Agreement; OFAC matters; and Patriot Act and
other related matters.
		
	Documentation Principles:	  	The credit documentation for the Facility shall be negotiated in good faith and shall contain terms consistent with the terms set forth in the Term Sheet. To the extent reasonably
practicable, the affirmative and negative covenants and events of default (including the defined terms used therein) as specified in the Term Sheet shall be based on the Existing ABL Credit Agreement and the indenture, dated as of October 28, 2009,
by and among the Borrower, the Parent and The Bank of New York Mellon Trust Company, N.A., governing the Parent’s 8.25% Senior Notes due 2021 (the “Indenture”) and modified to reflect the differences in size, structure and type
of financing (e.g., the Facility is secured by different assets than the Existing ABL Credit Agreement, and the Indenture is unsecured; the Facility does not have any financial covenants but the Existing ABL Credit Agreement and the Indenture do;
the Lenders will rely on the preservation of the structural seniority of the Guarantees) and market conditions. This paragraph and the provisions herein shall be collectively referred to as the “Documentation
Principles”.

  
 Exhibit A-8

			
		
	Covenants:	  	The credit agreement for the Facility will contain the following financial, affirmative and negative covenants (with respect to Parent, the Borrower and the other Restricted
Subsidiaries and, in the case of certain affirmative covenants as specified under “Unrestricted Subsidiaries” below, the Unrestricted Subsidiaries), subject to exceptions and baskets to be agreed consistent with the Documentation
Principles but subject to any specific provisions noted below:
		
	- financial covenants:	  	none;
		
	- affirmative covenants:	  	delivery of financial statements and other reports, notices and information (including the identification of information as suitable for distribution to public-side lenders);
maintenance of existence; payment of taxes and claims; maintenance of properties; maintenance of insurance and customary endorsements; books and records; inspections; compliance with laws; environmental matters; additional collateral and guarantors
(including with respect to Integrated Global Structuring); to the extent not obtained prior to the Closing Date, obtaining of a public credit rating for the Facility from each of Moody’s Investor Services, Inc. and Standard & Poor’s
Ratings Group, a division of The McGraw Hill Corporation, within six months following the Closing Date; maintenance of corporate level and facility level ratings; cooperation with syndication efforts; and further assurances; and
		
	- negative covenants:	  	limitations with respect to indebtedness; liens; negative pledges; restricted junior payments; restrictions on subsidiary distributions; acquisitions and other investments, loans,
advances and guarantees; mergers and other fundamental changes; sales and other dispositions of assets (including equity interests); sale/leaseback transactions; transactions with affiliates; conduct of business; hedge agreements; amendments and
waivers of organizational documents, agreements governing certain indebtedness and other material agreements; changes to fiscal year; sales of receivables; and designations as “Designated Senior Indebtedness” under the Convertible Notes or
any other subordinated indebtedness.
		
		  	Parent shall not, and shall not permit any subsidiary (including any Unrestricted Subsidiary) to, (a) create any liens on any “Principal Property” (as defined in the Shy
Agreement), except certain liens otherwise permitted under the credit agreement for the Facility and mutually agreed or (b) create any liens on any equity interests of NFC as collateral for any obligation of Parent or any Restricted Subsidiary
(other than liens created under the Loan Documents).

  
 Exhibit A-9

			
		
		  	The negative covenants will include exceptions permitting compliance with the Support Agreement (as defined in the Existing ABL Credit Agreement), as in effect on the date
hereof.
		
	Unrestricted Subsidiaries:	  	The credit agreement for the Facility will contain provisions pursuant to which, subject to conditions and limitations to be agreed (including limitations on the amount of loans and
advances to, and other investments in and transactions with, Unrestricted Subsidiaries), Parent will be permitted to designate certain existing subsidiaries (including NFC and its subsidiaries) and, subject to additional conditions to be agreed,
certain subsequently acquired or organized subsidiaries as unrestricted subsidiaries (each such subsidiary being referred to as an “Unrestricted Subsidiary”, and each other subsidiary of Parent being referred to as a
“Restricted Subsidiary”) consistent with the Documentation Principles; provided that no subsidiary of Parent may be designated as an Unrestricted Subsidiary unless such subsidiary also constitutes an “Unrestricted
Subsidiary” (however defined) under all the material indebtedness of Parent and the Restricted Subsidiaries, including the indenture governing the Senior Notes, the Cook County Loan Agreement and the IFA Loan Agreement (as each such term is
defined in Exhibit B attached to the Commitment Letter). Unrestricted Subsidiaries will not be subject to certain representations and warranties to be agreed, certain affirmative covenants to be agreed or negative covenants (other than as expressly
set forth under “Covenants—negative covenants” above) under the credit agreement for the Facility and will not be required to provide Guarantees or any Collateral, and the results of operations and indebtedness of any Unrestricted
Subsidiary will be disregarded for purposes of determining compliance with any financial metric contained in the credit agreement for the Facility. Special purpose securitization entities that are not subsidiaries but that are required to be
consolidated by Parent in its financial statements solely as a result of the application of SFAS 167 (as codified) will not be treated as subsidiaries of Parent for purposes of the credit agreement for the Facility.
		
	Events of Default:	  	The credit agreement for the Facility will contain the following events of default with respect to Parent and its subsidiaries (subject to materiality thresholds, exceptions and
grace periods to be agreed consistent with the Documentation Principles): failure to make payments when due; noncompliance with covenants; inaccuracy of representations and warranties in any material respect; cross-default and cross-acceleration
with respect to material indebtedness, including material hedge agreements and securitizations; bankruptcy and insolvency events; material judgments; ERISA matters; impairment or actual or asserted invalidity of guarantees or security interests; and
Change of Control (to be defined).

  
 Exhibit A-10

			
		
	Conditions Precedent to Effectiveness:	  	The several obligations of the Lenders to make loans under the Facility will be subject to the conditions precedent referred to in the Commitment Letter (including those set forth
below and in Exhibit B attached to the Commitment Letter).
		
	Conditions to Extension of Credit on the Closing Date:	  	The making of the loans on the Closing Date under the Term Facility shall be conditioned upon (a) the receipt of a borrowing notice therefor, (b) the accuracy of representations and
warranties in all material respects (in all respects in the case of representations and warranties qualified by materiality) and (c) there being no default or event of default in existence at the time of, or immediately after giving effect to the
making of, such loans.
		
	Conditions to Extension of Credit of the Delayed Draw Facility:	  	To be mutually agreed.
		
	Assignments and Participations:	  	The Lenders may assign all or, in an amount not less than $1,000,000, any portion of their loans and commitments under the Facility to their affiliates (other than natural persons),
approved funds or, one or more banks, financial institutions or other entities that are Eligible Assignees (to be defined, but which shall exclude Disqualified Lenders), subject to (other than in the case of assignments made by or to the Arrangers
during the primary syndication) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed); provided that assignments made to affiliates and other Lenders will not be subject to the above
described consent or minimum assignment amount requirements. Upon such assignment, such affiliate, approved fund, bank, financial institution or entity will become a Lender for all purposes under the Loan Documents. A $3,500 processing fee will be
required in connection with any such assignment, with exceptions to be agreed. The Lenders will also have the right to sell participations without restriction, subject to customary limitations on voting rights, in their loans and commitments under
the Facility; provided that no participations may be sold to any Disqualified Lender.
		
	 Requisite Lenders:
	  	Amendments and waivers will require the approval of Lenders holding more than 50% of unused commitments and outstanding loans under the Facility (“Requisite
Lenders”), provided that, in addition to the approval of Requisite Lenders, the consent of each Lender directly and adversely affected thereby will be required with respect to customary matters (subject to customary exceptions
to be agreed), including (a) increases in the commitment of such Lender, (b) reductions of principal, interest, fees or premium, (c) extensions of final maturity or the due date of any amortization, interest, fee or premium payment, (d)
releases of liens on all or substantially all of the Collateral or of all or substantially all of the Guarantees and (e) amendments to the

  
 Exhibit A-11

			
		
		  	definition of Requisite Lenders. The credit agreement for the Facility will contain customary provisions for replacing non-consenting Lenders in connection with amendments and
waivers that require the consent of all adversely affected Lenders so long as the Requisite Lenders have consented thereto.
		
	 Defaulting Lenders:
	  	The credit agreement for the Facility shall contain provisions relating to “defaulting” Lenders (including provisions relating to the suspension of voting rights and
rights to receive certain fees, and to termination or assignment of the Delayed Draw Facility commitments or loans of such Lenders).
		
	Amend and Extend Provisions:	  	The credit agreement for the Facility will permit the Borrower to make offers to Lenders to extend the maturity date of the loans under the Facility and otherwise to modify certain
terms of such loans (including by increasing interest rates or fees payable in respect of such loans or extending the weighted average life to maturity of such loans) subject only to the consent of such Lenders, subject to procedures and
requirements to be agreed, including that (a) the offer to extend is made available to all Lenders on the same terms and conditions and (b) no default or event of default shall have occurred and be continuing at the time of such
extension.
		
	Refinancing Term Facility Provisions:	  	The credit agreement for the Facility will permit the Borrower to refinance the loans under the Facility, in whole or in part, with one or more new term facilities, subject to
procedures and requirements to be agreed, including that (a) the amount of any such new term facility shall not exceed the amount of indebtedness being refinanced (plus any accrued interest, fees, premium or expenses in respect thereof), (b) no
default or event of default under the Loan Documents shall have occurred and be continuing or would result therefrom, (c) the representations and warranties set forth in the Loan Documents shall be true and correct in all material respects (in all
respects in the case of any representations and warranties qualified by materiality), (d) the maturity date applicable to such new refinancing facility shall not be earlier than the maturity date of the Facility (which shall be assumed to be, solely
for purposes of this paragraph, the five-year anniversary of the Closing Date), (e) the weighted average life to maturity thereof shall not be shorter than the remaining weighted average life to maturity of the Facility (determined in accordance
with the foregoing assumption) and such new term facility may participate in any mandatory prepayments on a pro rata basis (or on a basis that is less than pro rata) with the Facility, but may not provide for mandatory prepayment requirements that
are more favorable than those applicable to the Facility and (f) other than as set forth above and other than with respect to amortization (including the effect thereon of any prepayment), interest rates, fees, original issue discount or any
voluntary or mandatory prepayments (including prepayment

  
 Exhibit A-12

			
		
		  	premiums and other restrictions thereon) and other immaterial terms, all other terms of such new term facility shall be substantially the same as those of the Facility. All
prepayments under the Facility in connection with any such refinancing shall be subject to the provisions under “Call Premium” above and shall be applied pro rata to the remaining scheduled amortization installments and the payment due at
final maturity of the Facility and between the Term Facility and the Delayed Draw Facility.
		
	Yield Protection:	  	The credit agreement for the Facility will contain customary provisions (a) protecting the Administrative Agent and the Lenders against increased costs or loss of yield resulting
from changes in reserve, capital adequacy and capital or liquidity requirements (or their interpretation), illegality, unavailability and other requirements of law and from the imposition of or changes in certain withholding or other taxes and (b)
indemnifying the Lenders for “breakage costs” incurred in connection with, among other things, any prepayment of a loan bearing interest by reference to the reserve adjusted Eurodollar Rate on a day other than the last day of an interest
period with respect thereto. For all purposes of the Loan Documents, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines and directives promulgated thereunder and (ii) all requests, rules, guidelines
or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States regulatory authorities, in each case, pursuant to Basel III, shall be deemed
introduced or adopted after the Closing Date. The credit agreement for the Facility will provide that all payments by the Borrower and the Guarantors will be made free and clear of any taxes (other than franchise taxes and taxes on overall net
income), imposts, assessments, withholdings or other deductions whatsoever. Lenders will furnish to the Administrative Agent appropriate certificates or other evidence of exemption from U.S. federal tax withholding.
		
	Indemnity and Expense Reimbursement:	  	The Loan Documents will contain customary and appropriate provisions relating to indemnity, reimbursement, exculpation and related matters in a form reasonably satisfactory to the
Administrative Agent, the Arrangers and the Borrower.
		
	Governing Law and Jurisdiction:	  	The Borrower and the Guarantors will submit to the jurisdiction and venue of the federal and state courts of the State of New York, will agree that any action, suit or proceeding
brought by them or any of their affiliates in connection with the Loan Documents shall be brought exclusively in any such federal or state court and will waive any right to trial by jury. New York law will govern the Loan Documents, except with
respect to certain security documents where applicable local US law is necessary for enforceability or perfection.

  
 Exhibit A-13

 EXHIBIT B 
 CONFIDENTIAL 
 Navistar International Corporation 

Navistar, Inc. 
 $1,000,000,000 Senior Secured Term Loan 
 Summary of Conditions Precedent
to the Facility 
 This Summary of Conditions Precedent outlines certain of the conditions precedent to the Facility referred to in the
term sheet to which this Exhibit B is attached. Capitalized terms used but not defined herein shall have the meanings given to them in the term sheet. 
  

	1.	Existing ABL Credit Agreement. The Existing ABL Credit Agreement shall have been, or substantially concurrently with the effectiveness of the Facility shall be,
either (a) amended (the Existing ABL Credit Agreement, as so amended, being referred to as the “Amended ABL Credit Agreement”) to, among other things, permit incurrence of indebtedness under the Facility and the creation of
liens as set forth herein and extend the maturity date thereof, and the terms and conditions of the Amended ABL Credit Agreement shall be reasonably satisfactory to the Arrangers and the Borrower or (b) repaid in full and the commitments
thereunder terminated. 

  

	2.	Other Indebtedness. After giving effect to the transactions contemplated hereby, Parent and the Restricted Subsidiaries shall have outstanding no indebtedness or
preferred or preference equity interests, other than (a) the loans under the Facility, (b) indebtedness under the Amended ABL Credit Agreement, (c) the Convertible Notes, (d) the 8.25% Senior Notes due 2021 of Parent (the
“Senior Notes”), (e) indebtedness under the Loan Agreement dated as of October 1, 2010, between Parent and the County of Cook, Illinois (the “Cook County Loan Agreement”), (f) indebtedness under the
Loan Agreement dated as of October 1, 2010, between Parent and the Illinois Finance Authority (the “IFA Loan Agreement”), (g) the Convertible Junior Preference Stock, Series D of Parent, (h) the Nonconvertible Junior
Preference Stock, Series B of Parent and (i) other limited indebtedness to be mutually agreed upon. 

  

	3.	Delaware “Substantially All” Opinion. The Arrangers and Lenders shall have received an opinion from Morris, Nichols, Arsht & Tunnell LLP to
the effect that the creation of the security interest in the Collateral as set forth herein does not, in their opinion, constitute a pledge of all or substantially all of the assets of Parent and its subsidiaries on a consolidated basis or the
Borrower and its subsidiaries on a consolidated basis, which opinion shall be satisfactory to the Arrangers and shall be permitted to be disclosed to prospective Lenders. 

 

	4.	Designated Senior Indebtedness. The obligations of Parent guaranteeing the indebtedness of the Borrower under the Facility shall constitute “Senior
Indebtedness” and shall have been designated as “Designated Senior Indebtedness” under and as defined in the indenture governing the Convertible Notes, and the Administrative Agent shall have received evidence thereof reasonably
satisfactory to it. 

  

	5.	Performance of Obligations. All costs, fees, expenses (including legal fees and expenses, title premiums, survey charges and recording taxes and fees) and other
compensation contemplated by the Commitment Letter and the Fee Letter to be payable to the Arrangers, the Administrative Agent or the Lenders shall have been paid to the extent due on or prior to the Closing Date, and each of Parent and the Borrower
shall have complied in all material respects with all of its other obligations under the Commitment Letter and the Fee Letter. 

  
 Exhibit B-1

	6.	Guarantee and Collateral Matters. The Arrangers shall have received a completed perfection certificate in form reasonably satisfactory to the Arrangers and UCC,
tax and judgment lien searches with respect to the Borrower and the Guarantors. The Guarantees shall have been executed and be in full force and effect. To the extent requested by the Administrative Agent, all documents and instruments required to
create and perfect the pledges of, and security interest and mortgages in, the Collateral as set forth in the Commitment Letter shall have been executed and delivered and, if applicable, be in proper form for filing (it being understood that to the
extent any Collateral (other than the pledge and perfection of security interests in assets with respect to which a lien may be perfected by the filing of a financing statement under the UCC and the delivery of stock certificates for stock of the
domestic subsidiaries of the Loan Parties that is part of the Collateral) is not provided on the Closing Date after the use of commercially reasonable efforts by the Loan Parties to do so, the delivery of such Collateral shall not constitute a
condition precedent to the availability of the Facility on the Closing Date but shall be required to be delivered within 90 days after the Closing Date (or such later date as agreed by the Administrative Agent) pursuant to arrangements to be
agreed). 

  

	7.	Loan Documents. Subject to clause 6 above, customary definitive loan documents for the Facility, including a credit agreement, a pledge and security agreement
and other collateral documents (collectively, the “Loan Documents”) have been executed. 

  

	8.	Customary Closing Documents. The Arrangers shall be satisfied that Parent and the Borrower have complied with all other customary closing conditions, including:
(a) the delivery of legal opinions reasonably satisfactory to the Arrangers (including legal opinions as to the absence of conflicts from Kirkland & Ellis, LLP (including as to the indentures governing the Convertibles Notes and the
Senior Notes), the general counsel of Parent (including as to the Shy Agreement) and Morris, Nichols, Arsht & Tunnell LLP (including as to the certificate of incorporation of Parent); (b) the delivery of organizational documents,
evidence of authority, documents from public officials and secretary’s certificates; (c) absence of any pending or threatened litigation or proceedings that involve the Loan Documents or the financing contemplated thereby;
(e) evidence of insurance and customary insurance endorsements reasonably satisfactory to the Arrangers; (g) delivery of a customary solvency certificate from the chief financial officer of Parent, certifying that the Borrower and the
Guarantors are, on a consolidated basis, solvent; and (h) other customary officer’s certificates. The Arrangers will have received at least 10 days prior to the Closing Date all documentation and other information required by bank
regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the Patriot Act. 

  

	9.	 Material Documents. Parent shall or shall have caused to publicly disclose the following documents at least 15 days (or such shorter time as
agreed by the Arrangers) prior to the Closing Date: (a) Memorandum of Understanding between Parent and/or its subsidiaries, on the one hand, and Cummins Inc. (“Cummins”) and/or its subsidiaries, on the other hand, reasonably
satisfactory to the Arrangers regarding the purchase by Parent or its applicable subsidiaries from Cummins or its subsidiaries of (i) 15L heavy-duty diesel engines that comply with the NOx emissions standards for such engines and (ii) SCR
after-treatment devices for the 15L and 13L heavy-duty diesel engines, and the Arrangers being otherwise reasonably satisfied with the operational plan of Parent and its subsidiaries with respect to NOx emissions standards compliance for the 15L and
13L heavy-duty diesel engines (with the Arrangers hereby acknowledging that they are 

  
 Exhibit B-2

 
satisfied with (x) such Memorandum of Understanding in the form submitted to them prior to the execution by the Arrangers of this Commitment Letter and (y) the operational plan
discussed in the draft press release of Parent (which Parent has advised the Arrangers will be made public on the date hereof) most recently furnished by Parent to the Arrangers prior to the execution by the Arrangers of this Commitment Letter),
(b) quarterly guidance for Parent and its subsidiaries for the fiscal quarter ending July 31, 2012 and (c) the contents of the letters dated June 20, 2012 and the subpoena dated July 16, 2012, each from the Division of
Enforcement of the Securities and Exchange Commission to the attention of Parent, and the actions of Parent in response thereto. 
  

	10.	Marketing Period. The Arrangers shall have been afforded a syndication period of at least 15 consecutive days (or such shorter time as agreed by the Arrangers)
following the execution of the Commitment Letter by both parties thereto. 

  
 Exhibit B-3

  
	

	 

 As
of 4/30/2012
 Navistar collateral coverage

Hard Assets of Navistar and the Subsidiary Guarantors

$ millions 

Accounts receivable

$383

Inventory (ex Aftermarket Parts

1

)

$820

Net book value of Land & Buildings

2

$166

Machinery & equipment 

3

$325

Tooling/Construction in progress/Short lived assets

$329

Total Hard Assets

$2,023

Total Hard Assets coverage

4

2.0x

Stock of foreign subsidiaries

5

$263

Intellectual property

Confidential

Total Assets

$2,286

Total collateral coverage

4

2.3x

1

Aftermarket

Parts Inventory is pledged to the ABL facility 

2

Excludes

Principal 

Properties as defined in the Shy Agreement

3

Excludes Fixtures

4 

Total Hard Assets over $1 billion Term Loan 

5 

Valued

as

total

assets

less

total

liabilities, (including

3

rd

party

debt

of

$0

and

InterCompany

debt

of

$0),

at

a

65%

pledge  value

EXHIBIT C

CONFIDENTIAL

Exhibit C-1
 

  
	

	 

1

Excludes

Principal Properties as defined in the Shy Agreement

2

Excludes Fixtures

Collateral / Assets Description

Collateral

Description

Comments

Accounts Receivable

•

Includes:

$383             
            
 Inventory
(ex. 
 Aftermarket Parts)

–

Raw

material,

finished

goods

and

used

trucks,

WIP,

“Red

Tag”

and

Sold

Inventory

–

Inventory includes truck inventory in Defense, Dealcor, and Export

$820

Reported at book value 

Net book value of  Land 

&

Buildings1

Includes non manufacturing facilities, such as the Lisle, IL World Headquarters,

 datacenters, sales and repair centers

$166

Principal Properties are excluded; 

reported at book value

Machinery & 

Equipment

Comprised of heavy machinery such as metal bending equipment, presses, 

powder coat and paint apparatus, rollers and assembly line equipment

$325

Reported at book value 

Tooling  & Patterns

Dies, forms, lathes and templates for proprietary parts and component 

fabrication

$106

Reported at book value 

Construction in 

Progress

Varies from capital improvements to installations of equipment within
factories
 $155

Other

Short lived assets not carried for depreciation

$68

Reported at book value

Total Hard Mfg. Assets

$2,023

As of 4/30/2012

Intellectual Property

Medium / Bus / Severe

Confidential

Intellectual Property

Vehicle Trademark

Confidential

Intellectual Property

Engine

Confidential

Exhibit C-2

These

accounts

receivable

are

not 

securitized; reported at book value

Know

how,

design,

and

patents

for

Medium, Bus, and Severe

Reported

at

book

value

on 

percentage of completion basis

Defense

and

Parts

(Non

ABL

parts

A/R)

segments

comprising

75%

of

A/R

Truck and Engine  A/R account for the remaining  25% of A/R

2

Know how, design, and patents for 

engine technology

International, IC Bus, Monaco and 

other trademark names

Value ($ mm)

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