Navistar, Inc. 4201 Winfield Road Warrenville, IL 60555 USA P: 630-753-5000 W: navistar.com

EXHIBIT 10.103

Navistar, Inc. 0000 Xxxxxxxx Xxxx Xxxxxxxxxxx, XX 00000 XXX   P: 000-000-0000 W: xxxxxxxx.xxx

October 20, 2009

Xx. Xxxxxxx X. Xxxxx

000 Xxxxxxxx Xxxxx

Xxxxxxx, XX 00000

Dear Xxxx:

As approved by Navistar International Corporation’s Compensation Committee of the Board of Directors on October 19, 2009, this letter confirms an additional agreement item beyond what was agreed to in your July 2, 2008 letter from Xxxxxx Xxxxx and me and your Amendment of Executive Severance Agreement (ESA) effective June 17, 2008.

Your Amendment of ESA provided you with “continued healthcare coverage for the 36 month period immediately after the date of Termination, with the same coverage option as in effect immediately before the date of Termination…” If after this 36 month period of continued coverage, you are not able to purchase comparable healthcare coverage for you and your spouse, Navistar will provide you with the opportunity to purchase Navistar’s coverage at the 100% cost of coverage rate, in affect at the time, until which time you and/or your spouse, Xxxxx, are eligible for Medicare benefits.

Sincerely,

/S/    XXXX X. XXXXXXX        

Xxxx X. Xxxxxxx

Senior VP, HR and Administration

E-18