Document:

Exhibit 10.31
   
  	  ZAOZHUANG BANK
 	  
  
 Contract No.: 2013 Zao Yin Jie Zi 09100602 No. 00003
 

 
  
 Working Capital Loan Contract
  
 Lender: Zaozhuang Bank Co., Ltd. Junshan Road Sub-branch
  
 Borrower:  Synthesis Energy Systems (Zaozhuang) New Gas Co., Ltd.
  
  
   
 
  
 Special notes: This Contract is entered into by and between the Lender and the Borrower through consultation based on equality and free will, and all terms and conditions hereof are genuine intentions of both the Lender and the Borrower. In order to protect the legitimate rights and interests of the Borrower, the Lender hereby asks the Borrower to give full attention to the contents of all terms regarding the rights and obligations of both parties.
  
  	 Borrower (Party A):
 	 Synthesis Energy Systems (Zaozhuang) New Gas Co., Ltd.
 

 
  	 Domicile:
 	 No. 2 Hengshan Road, Xuecheng District
 

 
  	 Legal representative:
 	 John Winter
 

 
  	 Account-opening financial institution and account No.:
 	  
 

 
  	 Tel or fax:
 	 0632-4161799
 

 
  	 Postal code:
 	 277000
 

 
  	 Lender (Party B):
 	 Zaozhuang Bank Co., Ltd. Junshan Road Sub-branch
 

 
  	 Domicile:
 	 No. 67 North Zhenxing Road
 

 
  	 Legal representative:
 	 Zhou Changtao
 

 
  	 Tel or fax:
 	 3398035
 

 
  	 Postal code:
 	 277100
 

 
  
 Upon the equal consultation of both parties, the Lender and the Borrower, in order to specify the rights and obligations of both parties, hereby sign and enter into this Contract after reaching an agreement in respect of the Lender’s granting of loans to the Borrower in accordance with relevant national laws and regulations.
  
  Article 1      Definitions and interpretation
  
 1.1     Unless otherwise provided in this Contract, the following terms herein shall have the following meanings: 
  
 1.1.1   Loan amount: the total amount of loans provided by the Lender to the Borrower pursuant to this Contract. 
  
 1.1.2   Loan term: the period of time extending from the granting date of the first loan to the day when the Borrower pay off all the loan principal and interest as provided herein.
  
 1.1.3   Available period: the period of time that the Borrower withdraws loans as agreed herein, including the period of time that both parties agree to postpone the withdrawal through consultation.
  
 1.1.4   Eligible withdrawal period: the period of time extending from the effective date of this Contract to the day when the Borrower specified in this Contract makes the first withdrawal.
  
 1.1.5   Date of withdrawal: the day when each loan hereunder is transferred to the account of the Borrower.
  
 1.1.6   Repayment period: the period of time extending from the time when the Borrower specified in this Contract repays the loan principal and interest the first time to the time when the Borrower pays off all the loan principal and interest, including the period of repayment decided anew by both parties through consultation.
  
 1.1.7   Grace period: the period of time extending from the first loan granting date agreed in this Contract to the day when the Borrower repays the loan principal the first time.
  
  
  
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 1.1.8   Shareholder: investor of the Borrower holding the equity of the Borrower, including the successor and assignee of equity.
  
 1.1.9   Workday: working days of the Lender excluding the legal festivals/holidays and public holidays set by the state. 
  
 1.1.10 Guarantee-related document: legal documents and relevant materials signed for the purpose of assuring the performance of this Contract, including letter of guarantee/standby letter of credit, contract of guarantee, mortgage contract, pledge contract, and letter of commitment, etc.
  
 1.2     Unless otherwise provided herein, this Contract shall be interpreted in accordance with the following rules: 
  
 1.2.1   Loan ratio of the Lender: the proportion of loans provided by the Lender herein to all of its loans. 
  
  1.2.2   “Maturity” includes the circumstances where the Lender announces the early maturity of debts in accordance with the provisions of this Contract or national laws and regulations.
  
 1.2.3   “Substantially unfavorable circumstances” include but not limited to the following ones: the Borrower has fully or partly loses its repayment capacity; the guarantor’s guaranteeing capacity decreases significantly due to its deteriorated financial situation or other causes; the decrease in the value, destruction, loss, or expropriation of the guaranties or dispute over their ownership is enough to have an impact over the Lender’s exercise of hypothec; the decrease in the value of the pledge is enough to have impact over the Lender’s exercise of  the right of pledge.
  
 1.2.4   The term “include” does not contain restrictive meaning under this Contract.
  
 1.2.5   “Laws and regulations” include laws, administrative regulations, local regulations, rules, judicial interpretation and any provisions of legal effect of the People’s Republic of China.
  
  Article 2       Loan purpose
  
 The loans hereunder may be used for the following purpose, and without the written consents of the Lender, the Borrower shall not use them for any other purposes. The Lender has the right to supervise the use of the funds concerned.
  
 Loan purpose: purchase of raw materials.
  
  Article 3      Loan amount, term and type
  
 3.1     The loan currency hereunder is RMB, and the amount is  RMB 20,000,000.00 (in words: Renminbi twenty million) (should there be any inconsistency between the amounts represented in numbers and words, the latter shall prevail).
  
 3.2     The loan term hereunder extends from September 10, 2013 to September 9, 2014, starting from the actual date of withdrawal (starting from the date of first withdrawal if withdrawal is made in installments), and the actual date of withdrawal is subject to the IOU.
  
 3.3     The loan type hereunder is short-term loan.
  
  
  
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  Article 4      Guarantee
  
 Except the credit loan, the Borrower shall provide legitimate and valid guarantee recognized by the Lender for the performance of its obligations hereunder. The contract of guarantee shall be signed separately.
  
 4.1     Where the loan hereunder is guarantee-based, the guarantee shall be a  joint and several liability guarantee. 
  
 4.2     Where the loan guarantee hereunder is provided in the mode of ceiling amount guarantee, the corresponding contract of ceiling amount guarantee shall be made as below:
  
  	 No. of the contract of ceiling amount guarantee:
 	  
 	  
 

 
  
  	 Guarantor:
 	  
 	  
 

 
  
 4.3     Where the loan hereunder is mortgage or pledge based, the corresponding mortgage or pledge contract shall be made as follows: 
  
 No. of mortgage or pledge contract:  2013 Zao Yin Di Zi 09100602 No. 00003
  
 Mortgager or pledger: Synthesis Energy Systems (Zaozhuang) New Gas Co., Ltd.
  
 4.3.1   Should the guaranties hereunder are damaged, depreciated, involved in any ownership dispute, impounded or sealed up, or the mortgager disposes the guaranties without authorization, or the guarantor providing the assurance guarantee encounters unfavorable changes in its financial situation or other changes harmful to the creditor’s right of the Lender, the Borrower shall lose no time to notify the Lender and otherwise provide other guarantee recognized by the Lender.
  
 4.3.2   Where the loan hereunder is guaranteed by pledging the accounts receivable, within the effective period of this Contract, the Lender is entitled to announce the early maturity of the loans in question and ask the Borrower to repay the loan principal and interest immediately in part or in whole, or to add legitimate, valid and sufficient guarantee recognized by the Lender, under any of the following circumstances:
  
 (1) The bad debt rate of the accounts receivable payable to the payee of accounts receivable (the pledger) by the payer keeps rising continuously for 2 months;
  
 (2) The amount of accounts receivable from the payer which are mature but not collected by the payee of accounts receivable (the pledger) accounts for more than 5% of the remaining amount of accounts receivable from the payer;
  
 (3) The payee of accounts receivable (the pledger) has any trade dispute (including, without limitation, disputes over quality, technology and service) or debt dispute with the payer or any other third party, resulting in that the accounts receivable cannot be paid as scheduled upon maturity.
  
  Article 5      Interest rate and the interest accruing and settling methods 
  
 5.1      Loan interest rate
  
 5.1.1   The  first of the following methods shall be adopted to determine the interest rate of the loan in RMB:
  
 (1) Fixed interest rate: The loan rate floats (up√/down) 80% based on the benchmark interest rate of the same level in the same period published by the People’s Bank of China that corresponds to the date of withdrawal of each loan September 10, 2013 (the term of the loan/the loan term specified in Article 3.2 hereof), till the date of loan maturity. The specified interest rate adopted shall be subject to the corresponding loan certificate. 
  
  
  
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 (2) Floating interest rate: The loan rate floats (up/down) __/__% based on the benchmark interest rate of the same level in the same period published by the People’s Bank of China that corresponds to the date of withdrawal of each loan _____/______ (the term of the loan/the loan term specified in Article 3.2 hereof). The specified interest rate shall be subject to the corresponding loan certificate in line with the interest rate floating rules as agreed in this Contract.
  
 The interest rate shall be adjusted every_____/____ (in words) month(s). During the repayment period, in the event that the People’s Bank of China adjusts the benchmark interest rate of loan, from the loan corresponding date in the first month of the next period after the adjustment of benchmark interest rate, the Lender may determine the new loan interest rate according to the benchmark interest rate of the same level for the corresponding period after adjustment and the floating extent agreed in this Contract without a separate notice to the Borrower. In the event the adjustment date of benchmark interest rate falls on the loan granting date or the loan corresponding date in the first month of such adjustment period, the new loan interest rate shall be determined since the adjustment date of benchmark interest rate. Where there is no such loan corresponding date, the last day in the first month of the period shall be deemed as the loan corresponding date.
  
 5.1.2   The        /        of the following methods shall be adopted to determine the interest rate of loan in a foreign currency:
  
 (1) The interest rate formed by    /    (in words)-month     /    (LIBOR/HIBOR) + /   % of spread shall be adjusted every      /     (in words) month(s). LIBOR/HIBOR here refers to the London Interbank Offer Rate / Hong Kong Interbank Offer Rate for the corresponding term two workdays immediately prior to the value date announced by Reuters.
  
 (2) The adopted monthly interest rate is    /   ‰, valid till the loan maturity date.
  
 (3) Other methods _________________/____________________________.
  
  5.2      Punitive interest rate
  
 5.2.1   In the event that the Borrower fails to use the loan for the purposes as stipulated herein, the Lender shall, from the default date, collect the punitive interest for the default part at the rate of  80% of the adopted loan interest rate agreed herein to the extent that all principal and interest have been paid off. During the default period, in the event that the benchmark interest rate for RMB loan of the same period is raised by the People’s Bank of China, the rate for such punitive interest shall be raised from the adjustment date of the benchmark interest rate accordingly.
  
 5.2.2   In the event that the Borrower fails to repay the loan principal in accordance with the term stipulated herein, the Lender shall, from the overdue date, collect the punitive interest for the overdue part at the rate of 40% of the adopted loan interest rate stipulated herein to the extent that all principal and interest have been satisfied. During the overdue period, in the event that the benchmark interest rate for RMB loan of the same period is raised by the People’s Bank of China, the rate for such punitive interest shall be raised from the adjustment date of the benchmark interest rate accordingly.
  
  5.3      Compound interest
  
 For the interest that the Borrower does not pay as scheduled, the Lender shall collect the compound interest from the day when the interest is not paid as scheduled on a    /  (quarterly/monthly) basis. For the interest not paid as scheduled within the loan term, compound interest will be collected at the loan interest rate as agreed in this Contract, but starting from the loan maturity date, compound interest will be collected at the overdue punitive interest rate as agreed herein. For the interest not paid as scheduled in the period of overdue or default use of loan, compound interest will be collected at the  punitive interest rate as agreed herein.
  
  5.4      Interest accruing and settling methods
  
  
  
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  5.4.1   The interest of loan hereunder shall be settled on a      monthly     (monthly/quarterly) basis, and the settlement date shall be the 20th day of every      month    (month/last month of every quarter).
  
 5.4.2   The loan interest hereunder shall, on the basis of 360 days a year, be collected according to the actual loan balance and the number of days used from the day when the Borrower withdraws the loan.
  
 5.4.3   The Borrower shall, prior to the settlement date, transfer the payable interest into the account stipulated in Article 10.1 of this Contract, and irrevocably entrust the Lender to deduct such interest from the account directly. If the last repayment date of the loan principle does not fall on the interest settlement date, the unpaid interest shall be paid off with the principal.
  
 5.4.4   For the loan to which a fixed interest rate is applied, the interest shall be calculated at the agreed interest rate upon the settlement of interest. For the loan to which a floating interest rate is applied, the interest rate shall be calculated at the interest rate determined in each floating period. Where the interest rate floats more than once within a single interest settlement period, the interest in each floating period shall be calculated first, and then the interest within the interest settlement period shall be calculated by summing the interest in all floating periods on the date of interest settlement.
  
  Article 6       Revolving loan
  
 6.1     Where the loan hereunder may be used in a revolving manner, within the use term of revolving loan line, the loan balance of the Borrower at any time may not exceed the revolving loan line; the loan term for each withdrawal of the Borrower shall extend from the actual withdrawal date to the agreed repayment date, subject to what is written on the IOU, and the repayment date of each withdrawal may not exceed the use term of revolving loan line.
  
 6.2     Where the loan hereunder may be used in a revolving manner, the Lender is entitled to cancel the revolving loan line if the Borrower fails to make any withdrawal for three consecutive months starting from the execution of this Agreement.
  
  Article 7       Special provisions on revolving loan (optional clause, this article is  ̈ applicable  ̈ not applicable)
  
 7.1     Where the loan hereunder may be used in a revolving manner, the loan amount and loan term set out in Article 3 above shall be the revolving loan line and use term of revolving loan line. Specifically, the use term of revolving loan line shall start from the effective date of this Contract.
  
 7.2     For the RMB revolving loan to which a floating interest rate is applied, the benchmark interest rate shall be determined according to the benchmark interest rate of the People’s Bank of China for the level corresponding to each loan term.
  
 7.3     In addition to interest, the Borrower shall also pay commitment charges to the Lender. The commitment charges shall be paid in the __/__ of the following methods: 
  
 (1) to be paid to the Lender in a lump sum upon the effective date of this Contract at __/_% of the revolving loan line. 
  
  
  
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 (2) after this Contract comes into effect, to be paid to the Lender in installments on the 20th day of each __/__(month/quarter/half year) according to the difference between the revolving loan line and the amount withdrawn by the Borrower (daily mean balance within the charging period) and the annual fee rate of __/__%, until the day when the use term of the revolving loan line expires.
  
 (3)   ___________________/___________________________
  
  Article 8      Terms of withdrawal
  
  8.1      Prior to the first withdrawal, the Borrower has provided the documents, including articles of incorporation, duplicate of business license, identity certificate of the legal representative, as required by the Lender. If copies are provided, the corresponding originals shall be ensured to be true, complete and valid.
  
  8.2      Prior to the first and each withdrawal, the Lender shall meet the following requirements:
  
 8.2.1   An account has been opened as provided in Article 10.1 of this Contract.
  
 8.2.2   The Borrower presents to the Lender the “application of withdrawal” conforming with the provisions of this Agreement, indicating the information including the reason, purpose and amount of withdrawal, method of payment, and name and account number of the counterparty, provides duplicates of relevant transaction certificates and other materials, and go through relevant withdrawal formalities in accordance with relevant provisions and requirements of the Lender.
  
 8.2.3   Where the loan hereunder is borrowed in a foreign currency, the Borrower has properly completed the formalities of approval, registration, delivery and other statutory formalities related to the said loan hereunder in accordance with the provisions of relevant laws and regulations.
  
 8.2.4   Where the loan hereunder involves mortgage or pledge, relevant formalities for guarantee and insurance needed before the withdrawal as may be required by the Lender have been duly completed, and such guarantee and insurance shall continuously remain effective. In the event that the loan hereunder involves an assurance guarantee, the contract of guarantee shall have been executed and come into force.
  
 8.2.5   No event of default specified herein has happened, nor has any other event which may constitute a default occurred. 
  
 8.2.6   Not any substantially unfavorable circumstance as defined herein has occurred.
  
 8.2.7   Any and all representations and warranties made by the Borrower upon the execution of this Contract shall still keep effective upon the date of withdrawal, and no any substantially unfavorable change has occurred thereto.
  
 8.2.8   If the Borrower borrows money from any shareholder, the shareholder shall have made a written promise that the principal, interest and payable fees of the borrowed money will not be collected from the Borrower in part or in whole until the Borrower has paid all the loan principal, interest and payable fees hereunder. 
  
 8.2.9   Other requirements for withdrawal agreed by both parties:
  
  	  
 

 
  	  
 	  
 

 
  
  
   
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  Article 9      Withdrawal
  
 9.1     The Borrower of the loan hereunder shall withdraw loan according its actual needs. The withdrawal period shall extend from  September 10, 2013 to September 12, 2013. Specifically, the first withdrawal must be made prior to  September 10, 2013, and the last withdrawal prior to  September 12, 2013. Otherwise, the Lender is entitled to cancel the loans in part or in whole. (This article is not applicable to revolving loan) 
  
  9.2      Procedure of withdrawal
  
 9.2.1   The Borrower shall open a special account for working capital loan with the Lender, which shall be specially used for loan granting and payment, as well as capital recovery (see Article 10.1 for details).
  
 9.2.2   The Borrower shall make withdrawal according to its capital turnover needs for day-to-day production and operation. Upon withdrawal, the Borrower shall submit an “Application of Withdrawal” (in duplicate) to the business department of our bank and provide corresponding transaction certification. The written documents provided shall be original; if any original cannot be provided, a copy with the corporate seal of the Borrower may be provided with the consent of the Lender.
  
 9.2.3   The Lender may decide whether to grant the loan or not after examining the materials provided by the Borrower in line with its internal procedure. 
  
 9.3      If the Borrower fails to go through the formalities for withdrawal within the withdrawal period as agreed, nor applies for postponing the withdrawal, the Lender may notify the Borrower, requesting it to go through relevant formalities within five workdays. Should the Borrower still fail to completing such formalities, the Lender is entitled to cancel or partly cancel the loan not withdrawn, and collect compensations at the rate of 1% of cancelled amount. 
  
  Article 10      Account supervision
  
 10.1   The Borrower shall, prior to withdrawal, open a general settlement account with the Lender and keep such account until the accounts payable hereunder are all paid off and all obligations and responsibilities of the Borrower hereunder are completely performed. 
  
 10.2   The Borrower shall deposit the amounts, including but not limited to the following money, into the account agreed in Article 10.1 of this Contract:
  
 (1) Loan under this Contract;
  
 (2) The Borrower’s corresponding sales income or money planned for repayment. If the corresponding sales income is settled in a non-cash manner, the Borrower shall ensure that the money can be transferred into the said account in a timely manner.
  
 (3) Income of the Borrower obtained during the process of production and operation;
  
 (4) Other money related to operating income required by the Lender.
  
 10.3   In order to the ensure the exercise of the rights hereunder and the performance of the obligations hereunder, the Lender has the right to supervise the account opened by the Borrower in accordance with Article 10.1 of this Contract within the effective term hereof in accordance with relevant provisions on the administration of bank settlement accounts and stipulations hereof.
  
 10.4     The account supervision includes, without limitation: 
  
 10.4.1   The withdrawal of loan and supervision over the use of loan
  
  
  
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 (1) When using the funds borrowed, the Borrower must provide materials including the application of withdrawal as required by the Lender, and the fund will be granted to the account with the consent of the Lender after examination and paid externally in the method of payment as stipulated herein;
  
 (2) Where the Borrower’s application for the use of loan fails to conform to the fund use plan or purpose, the Lender is entitled to refuse the granting of the loan, but it shall give written notice to the Borrower, indicating the reason for refusal.
  
 10.4.2 The Borrower shall cooperate with the inquiry and supervision over the incomes and expenses of the account. Upon the request of the Lender, the Borrower shall sign a special account supervision agreement with the Lender. 
  
 10.4.3 Supervision over production and operating incomes
  
 (1) The incomes made by the Borrower during its day-to-day production and operation, shall be deposited into the account stipulated in Article 10.1 of this Contract __/__ (fully/at the amount not less than the loan ratio of the Lender).
  
 (2) Supervision over the repayment of loan with incomes. Except some necessary expenses, the Borrower shall use the operating income first for repaying the loan hereunder.
  
 10.5   The Borrower undertakes that all the money withdrawn and transferred out of the account stipulated in Article 10.1 of this Contract shall only be used for the following payments:
  
 (1) The loan principal, interest, penalty, compensation, payable expenses and other money hereunder;
  
 (2) Other necessary expenses that the Borrower shall pay for its business operation.
  
 10.6   The Lender will not assume any legal liabilities for such measures as refusal of granting loan and restriction over expenditure taken for the purpose of implementing account supervision as agreed in this Contract.
  
  Article 11      Loan granting and payment
  
 11.1   To withdraw the loan hereunder, the Borrower must satisfy the following preconditions, otherwise the Lender is not obligated to grant any funds to the Borrower, excluding those funds that the Lender agrees to grant in advance:
  
 (1) Except the credit-based loan, the Borrower has, as required by the Lender, provided corresponding guarantee and gone through relevant formalities for guarantee;
  
 (2) No event of default under the Contract or other contracts signed by the Borrower and the Lender has happened; 
  
 (3) The certification for the loan purpose provided conforms to the agreed purpose.
  
 11.2   If the Borrower meets the preconditions for withdrawal, or with the consent of the Lender to grant loan in advance, the Lender transfers the loan into the designated account of the Borrower, it shall be deemed that the Borrower has granted the loan to the Borrower as provided herein.
  
 11.3   The Borrower shall pay the loan externally by way of “payment by the Lender upon entrustment” or “payment by the Borrower itself”. In accordance with relevant regulatory provisions and management requirements of the Lender, the loan exceeding certain amount or meeting other conditions shall be paid in the manner of “payment by the Lender upon entrustment”, and the Lender will, according to the Borrower’s application of withdrawal and payment entrustment, pay the loan to the payee conforming to the purpose agreed herein. For this reason, the Borrower shall sign a separate agreement on entrustment-based payment with the Lender as an annex hereto, and open or designate a special account with the Lender to handle the matters concerning the entrustment-based payment.
  
  
  
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 11.4    Payment by the Lender upon entrustment: It means that the Lender pays the loan funds to the counterparty of the Borrower conforming to the purpose as stipulated herein according to the Borrower’s application of withdrawal and payment entrustment.
  
 11.4.1 In the case of “payment by the Lender upon entrustment”, the Lender shall submit a “letter of payment entrustment” (in duplicate) to the Lender while submitting the “application of withdrawal”, expressing its intention to entrust the Lender to make external payment. 
  
 11.4.2 The Lender may decide whether to make external payment as entrusted after examining the contents of entrusted payment in line with its own internal procedure. If accepting the entrustment, the Lender shall lose no time to pay the money concerned externally in line with the “letter of payment entrustment” after the funds are granted to the special account of the Borrower.
  
 11.5    Payment by the Borrower itself: It means that the Borrower, on its own, pays the loan funds to the counterparty thereof meeting the purpose as agreed herein after the said funds are granted by the Lender to the Borrower’s account upon its application for withdrawal. 
  
 11.5.1 In the case of “payment by the Borrower itself”, the Borrower shall, after the loan funds are granted to the special account of the Borrower, lose no time to pay the said money to counterparty thereof determined for the payment concerned, and the Lender has the right to supervise the payment act of the Borrower. If it is required to withdraw cash, the Borrower shall lose no time to transfer the funds from the special account into the basic account.
  
  Article 12   Repayment 
  
 12.1    Source of repayment
  
 12.1.1 The financial source of the Borrower for repaying the loan principal and interest hereunder include, without limitation:
  
  	 (1)
 	 Operating incomes
 	 ;
 
	  
 	  
 	  
 
	 (2)
 	  
 	 ;
 
	  
 	  
 	  
 
	 (3)
 	  
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 12.2    Sequence of repayment
  
 12.2.1 Any repayment of the Borrower hereunder shall be made in the sequence to the repay the previous loans first and then the current loans. That is to say, the sequence of repayment is based on date of maturity: first the loans which become mature earlier, and then those which become mature later.
  
 12.2.2 In case that the amount repaid by the Borrower is not sufficient to discharge the payables hereunder, the Lender may elect to use such amount to repay the principal, interest, punitive interest, compound interest or relevant fees. 
  
 12.3    Repayment schedule
  
  
  
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 12.3.1 The grace period hereunder is ___/____(in words, year/month), starting from the day the first loan is granted. During the grace period, the Borrower is not required to repay the loan principal.
  
 12.3.2 The Borrower shall fully pay the interest as provided herein, and repay the loan principal as agreed in the first of the following methods: (optional)
  
 (1) Repayment of loan principal in a lump sum on September 9, 2014. 
  
 (2) Repayment of loan principal in installments in a period extending from __/__(date) to __/__(date). The specific repayment schedule is shown as follows:
  
  	 Time of repayment
 	  
 	 Amount of repayment
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	  
 	  
 	  
 

 
  
 (Notes: 1 The time of repayment in the table may be based on time point and time range. 2 A sheet added due to the limited space of the table shall constitute a part hereto, and shall have articles linking hereto.) 
  
 12.4    Method of repayment
  
 The Borrower shall fully repay the loan principal, interest, and other payables on schedule as agreed herein. The payables in the current period shall, at a banking workday prior to the repayment date and each interest settlement date, be deposited into the account as agreed in Article 10.1 hereof, and the Lender is entitled to deduct such money on its own on the repayment date or interest settlement date, or require the Borrower to provide cooperation in going through relevant formalities for such funds transfer so that it may perform its repayment obligations in full. If the money in the repayment account is not enough to pay all the Borrower’s mature payables, the Lender is entitled to decide the sequence of repayment. 
  
 12.5    Early repayment
  
 12.5.1 In the event of early repayment, the Borrower shall submit a written application to the Lender 10 workdays in advance, and make the early repayment after reaching an agreement with Lender upon consultation.
  
 12.5.2 Upon the early repayment of the Borrower, the interest for the early-repaid part shall be collected in the __/_ of the following methods, with interest being paid off with the principal.
  
 (1) to collect the interest according to the actual loan term and the interest rate agreed herein;
  
 (2) to collect the interest according to the loan term and interest rate agreed herein;
  
 (3) to collect the interest in accordance with actual loan term at the interest rate stipulated herein plus__/___(in words) percent (but the actual amount of interest collected may not exceed the amount of interest accrued according to the loan term and interest rate stipulated herein.
  
 (4) other method
  
  	  
 	  
 
	  
 	  
 
	  
 	  
 

 
  
  
  
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 12.5.3 Where the Borrower makes early repayment, the principal repaid may not be less than RMB ____/___ and shall also be integral multiple of RMB 100,000.
  
 12.5.4 If the Lender agrees with the early repayment, the Borrower shall, upon the early repayment date, also pay off the payable loan principal, interest and other money accrued until the early repayment date as stipulated herein.
  
 12.5.5 Where the actual loan term is shortened because the Borrower makes early repayment or the Lender takes back loans as provided herein, the corresponding level of interest rate will not be adjusted and the original loan interest rate shall still be adopted. 
  
  12.6    Extension
  
 Where the Borrower cannot repay loans in line with the repayment schedule as agreed herein, it may apply to the Lender for extension. The Borrower shall submit the application for extension to the Lender at least 15 workdays prior to the loan maturity date, and after the Lender’s examination and approval, the Lender may enter into a loan extension agreement with the Borrower.
  
 12.7   The Lender has the right to take back loans according to the capital recovery situation of the Borrower.
  
  Article 13      Inspection over the use of loan funds
  
 13.1   After granting loans, the Lender is entitled to inspect the use of loan funds hereunder either in an on-site or off-site manner. The Borrower shall, as required by the Lender, submit the report on use of loan funds, corresponding certificates for payment of funds, and performance of trading contract, etc. in a timely manner. The Lender’s inspection and supervision shall cover the following areas, including without limitation:
  
 (1) Whether the Borrower has used the loans for the purposes stipulated herein, and whether the loans have been used for engaging in speculation in the areas, including equity capital investment, marketable securities, and futures, which are prohibited by the state explicitly; 
  
 (2) Other circumstances over which the Lender deems it necessary to carry out inspection.
  
 13.2   Where the Lender, during its inspection, discovers that the production and operation of the Borrower is affected by the improper use of funds, it may request the Borrower to make corrections with a given period. If the Borrower fails to make corrections within the given period, the Lender may require the Borrower to assume the liability for breach of contract as provided in Article 17 hereof.
  
 13.3   The Lender may visit the Borrower on a regular or irregular basis, to learn relevant information in the following ways:
  
 (1) listening to the report of the Borrower on its business scope, core businesses, production and operation, business plan and major investment plans within the loan term, etc.;
  
 (2) introduction about the Borrower’ industry made by the Borrower; 
  
 (3) the Borrower’s total need of working capital and current financing liabilities;
  
 (4) real financial situation of the Borrower in respect of accounts receivable, accounts payable, and stock-in-trade, etc. 
  
 (5) Information on the related parties and related transactions of the Borrower;
  
 (6) Information on the specific loan purposes and capital usage of the counterparty related to the loan purposes; 
  
  
  
 12
 
  
 (7) Information on the source of repayment, including the cash flow, consolidated incomes and other legitimate incomes generated from production and operation;
  
 (8) Checking the financial and accounting data of the Borrower such as financial statement, accounting documents, and account books, as well as other relevant information, and checking the financial and capital situation of the Borrower.
  
  Article 14      Representations and warranties of the Borrower
  
 The Borrower makes the following representations and warranties to the Lender and keeps them valid throughout the effective term of this Contract: 
  
 14.1   It lawfully has the right as principal of a Borrower, and is qualified and able to sign and perform this Contract. 
  
 14.2   It has obtained all necessary authorizations or approvals to sign this Contract, and the execution and performance hereof will not go against the provisions of its articles of incorporation and relevant laws and regulations, nor be in conflict with the obligations that it shall assume under other contracts. 
  
 14.3   Other payable debts have been paid off on schedule and it does not have any malicious act to default on the loan principal and interest of any bank. 
  
 14.4   It has well-established organizational structure and financial management rules. In the latest year, no substantial breaching behavior has occurred during its production and operation, and none of the current senior executives has any substantially bad record.
  
 14.5   All the documents and data provided to the Lender are true, accurate, complete and valid, free of any falsified record, material omissions or misleading information.
  
 14.6   The financial accounting reports provided to the Lender are compiled in accordance with the Chinese Accounting Standards, reflecting the operation conditions and liabilities of the Borrower truthfully, fairly and completely, and no substantially unfavorable changes have occurred to the financial situation of the Borrower since the closing date for the latest financial accounting report.
  
 14.7   It has not concealed any litigation, arbitration or claim for compensation that it has got involved in.
  
  Article 15      Undertakings of the Borrower
  
 15.1   It shall withdraw and use the loans in line with the term and purposes agreed herein, and the funds borrowed will not be used for investment in fixed assets and equity, nor flow into the securities market and futures market in any ways, nor be used for other purposes that are prohibited or restricted by relevant laws and regulations in any ways.
  
 15.2   It shall pay off the loan principal, interest and other payables as stipulated in this Contract.
  
 15.3   It will accept and actively cooperate with the inspection and supervision of the Lender over the use of loan funds (including the purpose) by way of account analysis, inspection of certificates, and on-site investigation, and report the use of loan funds as required by the Lender on a regular basis.
  
 15.4   It will accept the credit investigation of the Lender, provide financial and accounting data including balance sheet and income statement and other materials which may reflect the solvency of the Borrower as required by the Lender, and actively provide assistance and cooperation to the Lender to investigate, understand and supervise its production, operation, and financial situation.
  
  
  
 13
 
  
 15.5   It will not distribute any dividends and bonus in any form before paying off the loan principal and interest and other payables hereunder.
  
 15.6   When launching any action that may cause unfavorable impact to the rights and interests of the Lender, such as merger, split-off, capital reduction, changes in equity, substantial transfer of assets and creditor’s rights, substantial foreign investment, substantial increase in debt financing, the Borrower shall first get the written consent of the Lender or make arrangement regarding the realization of creditor’s rights of the Lender that is satisfactory to the Lender. 
  
 15.7   Under any of the following circumstances, the Borrower shall send a timely notice to the Lender: 
  
 (1) Change in articles of incorporation, business scope, registered capital, and legal representative;
  
 (2) Shutdown, dissolution, liquidation, business suspension for rectification, and revocation of business license, cancellation, or application (being applied) for bankruptcy;
  
 (3) Involvement or possible involvement in substantial economic dispute, litigation, arbitration, or sealing-up, sequestration or control of assets under law;
  
 (4) Involvement of any shareholder, director or current senior executive in any major cases or economic disputes. 
  
 15.8   It shall disclose the relations with any related parties and the related transactions to the Lender in a timely, comprehensive and accurate manner. 
  
 15.9   It shall sign and receive the relevant notices sent or served in other ways by the Lender in a timely manner. 
  
 15.10  It may not dispose its own assets by reducing its solvency, nor provide any guarantee for any third party that will impair the rights and interests of the Lender.
  
 15.11  Where the loans hereunder are granted in a credit-based manner, it shall regularly report the external guarantee information to the Lender fully, truthfully, and accurately, and sign an account supervision agreement as required by the Lender. Where the external guarantee may affect its performance of obligations hereunder, it shall obtain the written consent of the Lender.
  
 15.12  It shall bear all the costs for the execution and performance of this Contract and the expenses that have been paid or are payable by the Lender with a view to realizing the creditor’s right hereunder, including, without limitation, litigation or arbitration fees, property preservation fees, lawyer’s fees, execution cost, assessment charges, auction fees, and announcement expenses.
  
 15.13  The debts hereunder shall be paid off in an order taking priority over those debts owed to shareholders, and remain at least at an equal level compared with other similar debts of the Borrower to other creditors.
  
  Article 16      Undertakings of the Lender
  
 16.1   It shall grant the loans to the Borrower as agreed herein.
  
 16.2   It shall keep all the non-public information and data provided by the Borrower confidential, except for those as otherwise provided in relevant laws and regulations and in this Contract.
  
  
  
 14
 
   
  Article 17      Liability for breach of Contract
  
 17.1   Any of the following circumstances shall constitute the default of the Borrower:
  
 (1) The Borrower fails to repay the loan principal and interest as well as other payables hereunder as agreed herein, or fails to perform any other obligations hereunder, or breaches any representation, warranty or undertaking hereunder;
  
 (2) In the event of any change in the guarantee hereunder which is unfavorable to the creditor’s rights of the Lender, the Borrower fails to otherwise provide other guarantee acceptable to the Lender;
  
 (3) The Borrower fails to pay off any other mature debts (including those about which an early maturity are announced), or fails to perform or goes against the obligations under other agreements, which has affected or may affect its performance of the obligations hereunder; 
  
 (4) The financial indicators of the Borrower such as profit-making capacity, solvency, operating capacity and cash flow break the stipulated criteria, or become deteriorated, which has impaired or may impair its performance of obligations hereunder;
  
 (5) A substantially unfavorable change happens to the shareholding structure, production and operation, and foreign investment of the Borrower, which has impaired or may impair its performance of obligations hereunder;
  
 (6) The Borrower gets involved or is likely to get involved in any substantial economic dispute, litigation, arbitration, or has its assets sealed up, sequestrated or under any specific performance, or it is investigated in a case placed on file or imposed punitive measures by any judicial authority or administrative authority under law, or it is exposed by media as a result of violating relevant national provisions or policies, which has impaired or may impair its performance of obligations hereunder; 
  
 (7) The main individual investors and key executives of the Borrower undergo abnormal change, get lost, or are investigated or have their freedom restricted by any judicial authority pursuant to laws, which has impaired or may impair its performance of obligations hereunder;
  
 (8) The Borrower fraudulently obtains the funds or credit from the Lender by making use of false contracts with the related parties and transactions without real trading background, or intentionally evades the creditor’s rights of the Lender relying on related transactions;
  
 (9) The Borrower has got or may get involved in shutdown, dissolution, liquidation, business suspension for rectification, and revocation of business license, cancellation, or application (being applied) for bankruptcy;
  
 (10) The Borrower has caused any negligent accident due to its violation of relevant laws and regulations, regulatory provisions or industrial standards on food safety, production safety and environmental protection, which has impaired or may impair its performance of obligations hereunder;
  
 (11) Where the loans hereunder are granted in a credit-based manner, the indicators of the Borrower, including credit rating, profitability, asset-liability ratio, and net cash flow from business activities, fail to meet the credit-based loan requirements of the Lender; or without the written consent of the Lender, the Borrower sets its effective business assets as mortgage/pledge guarantee for others, or provides external guarantee, which has impaired or may impair its performance of obligations hereunder;
  
 (12) Other circumstances that may result in unfavorable impact to the Lender in realizing its creditor’s right hereunder. 
  
  
  
 15
 
  
 17.2   Upon the default of the Borrower, the Lender is entitled to take one or more of the following measures: 
  
 (1) Requiring the Borrower to correct its breaching behavior within a time limit;
  
 (2) Stopping extending to the Borrower loans or other financing funds under this Contract or other contracts reached by and between the Lender and the Borrower, and canceling in part or in whole the loans and other financing funds that the Borrower has not withdrawn;
  
 (3) Announcing that the unpaid loans under this Contract or other contracts reached by and between the Lender and the Borrower become mature immediately and take back the unpaid money immediately;
  
 (4) Requiring the Borrower to compensate all losses suffered by the Lender owing to the former’s breach of contract; 
  
 (5) Other measures provided in relevant laws and regulation, stipulated in this Contract, or deemed to be necessary by the Lender. 
  
 17.3   Where the Borrower fails to make repayment as agreed upon the loan maturity (including the early maturity announced), the Lender is entitled to collect any punitive interest at the overdue punitive interest rate stipulated in this Contract since the overdue date. For the interest not paid by the Borrower on schedule, compound interest will be collected at the overdue punitive interest rate.
  
 17.4   Where the Borrower fails to use the loans for the purposes stipulated herein, the Lender is entitled to collect punitive interest for the misappropriated part at the punitive interest rate for misappropriation of loans as stipulated herein since the date when the loan is misappropriated, and for the interest not paid on schedule within the period of misappropriation, compound interest will be collected at the punitive interest rate for misappropriation of loans.
  
 17.5   Where the Borrower gets involved in the circumstances as mentioned both in Articles 17.3 and 17.4 above, the higher punitive interest rate rather than the superposed rate will be adopted.
  
 17.6   Where the Borrower fails to repay the loan principal, interest (including punitive interest and compound interest) or other payables, the Lender is entitled to expedite the collection via announcement on media.
  
 17.7   Where there is any change in relations of controlling and being controlled between the related parties of the Borrower and the Borrower, or the related parties of the Borrower get involved in circumstances other than those mentioned in Items (1) and (2) of Article 17.1 above, which has or may have affected the performance of the obligations hereunder by the Borrower, the Lender is entitled to take various measures as stipulated herein.
  
  Article 18   Deduction
  
 18.1   Where the Borrower fails to repay the mature debts hereunder (including those which are announced to be mature immediately) as agreed in this Contract, the Lender is entitled to deduct the corresponding funds from all the accounts both in home and foreign currencies opened by the Borrower with other sub-braches of our bank for repayment till all the debts of the Borrower hereunder are paid off completely.
  
 18.2   When the deducted funds are not of the same currency as that provided herein, the said money will be converted at the applicable exchange rate of the Lender upon the date of deduction. The interest and other fees accruing during the period from the date of deduction to the date of clearance (the day when the Lender converts the deducted funds into the currency hereunder in accordance with national policies on administration of foreign exchange and has the debts hereunder cleared actually), as well as the difference arising from the fluctuation in foreign exchange rate during this period shall all be borne by the Borrower.
  
  
  
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 18.3   Where the funds deducted by the Lender are not enough to clear all debts of the Borrower, the Lender is entitled to decide the sequence of clearance.
  
  Article 19      Rights and obligations of the Borrower
  
 19.1   It may withdraw and use the loans in line with the terms agreed herein.
  
 19.2   It shall repay the loan principal and interest in full on schedule.
  
 19.3   It shall deal with the settlement of account current and deposits related to the loans hereunder through the account stipulated in Article 10 hereof.
  
 19.4   Where the loan hereunder is borrowed in a foreign currency, it shall duly go through the formalities of approval and registration as well as other statutory formalities related to the said loan in accordance with relevant provisions; for the loan in foreign currency, the Borrower cannot use it for foreign exchange settlement.
  
 19.5   The Borrower shall accept and actively cooperate with the inspection and supervision carried out by the Lender and the entities or individuals entrusted thereby over its financial activities and the use of loan funds hereunder.
  
 19.6   Where the Borrower has any of the following acts within the effective term of this Contract, it shall send a prior written notice to the Lender, and with the consent of the Lender, implement the measures for paying off debts or pay off debts in advance:
  
 (1) acts enough to result in change in the relation between creditor’s rights and liabilities hereunder or affect the realization of creditor’s rights by the Lender, including contracting, lease, joint-stock transformation, joint operation, consolidation, merger, split-off, reduction in registered capital, joint venture, transfer of assets, foreign investment, application for business suspension for rectification, application for  dissolution, application for bankruptcy;
  
 (2) acts that may affect its solvency hereunder, such as providing guarantee for debts of others, or mortgaging and pledging its primary assets for a third person;
  
 (3) acts to mortgage and pledge the project assets formed with the loan hereunder for any third party. 
  
 19.8   Where the Borrower gets involved in any of the following events, it shall, within five workdays after the occurrence of such events, notify the Lender in writing and implement the measures for preserving the creditor’s rights acceptable to the Lender:
  
 (1) Its legal representative or chief executive involving in any illegal activities;
  
 (2) Production halt, shutdown, cancellation of registration, revocation of business license, being cancelled, or being applied for bankruptcy; 
  
 (3) Deterioration of financial situation or serious difficulty in production and operation, or involvement in substantial litigation or arbitration event; 
  
 (4) Other events that are of substantially unfavorable impact to the realization of creditor’s rights by the Lender. 
  
 19.9   Upon any of the following events, the Borrower shall, within five workdays after the occurrence of such event, notify the Lender in writing: 
  
 (1) Change in subordination relation and top management members, as well as adjustment in organizational structure;
  
  
  
 17
 
  
 (2) Alteration to matters regarding industrial and commercial registration such as its name, domicile, legal representative, and business scope; 
  
 (3) Increase in registered capital and modification to articles of incorporation; 
  
 (4) Change in other major matters of the Borrower.
  
 19.10   The Borrower and its investors shall not draw out their capital illegally, transfer their assets or assign their shares without permission to evade the Borrower’s debts owed to the Lender. 
  
 19.11   The Borrower may not sign any agreement or document that is enough to impair the interests of the Lender, or engage in any matter that is enough to damage the interests of the Lender.
  
 19.12   The Borrower shall timely report to the Lender any breaching behavior specified herein that has happened or will happen.
  
 19.13   Where the guarantor for the loans hereunder gets involved in the circumstances including production halt, shutdown, cancellation of registration, revocation of business license, bankruptcy or being cancelled and business losses, which makes the guarantor lose its guaranteeing capacity related to the loans hereunder in part or in whole, or the value of the guaranties or pledged assets as a security for the loans hereunder is reduced, damaged or lost accidentally, the Borrower shall forthwith provide other guarantee acceptable to the Lender.
  
 19.14   The Borrower shall bear all the charges and expenses for legal service, insurance, transport, assessment, registration, safe-keeping, authentication, and notarization, etc. related to this Contract and the guarantee hereunder.
  
  Article 20      Rights and obligations of the Lender
  
 20.1   It is entitled to inspect and supervise the Borrower’s financial situation, inventory and use of loan funds, and demand the Borrower to provide the documents, materials and information such as financial statement periodically.
  
 20.2   Where the Borrower has any unfavorable acts or gets involved in any unfavorable situation which is enough to endanger the safety of the loans hereunder, including but not limited to those specified in Article 18 hereof, the Lender may stop granting loans and take back the part granted in advance.
  
 20.3   When taking back or taking back in advance the loan principal, interest, punitive interest, compound interest and other payables from the Borrower in accordance with the terms hereunder, the Lender may make direct deduction from any account of the Borrower.
  
 20.4   The Lender shall grant loans to the Borrower in full and on schedule in accordance with the terms stipulated herein, but excluding the postponement owing to the fault of the Borrower or other persons rather than the Lender.
  
 20.5   The Lender shall give a reply to the application of the Borrower within the time limit as agreed in this Contract. In the event that it fails to do so, it shall be deemed that the Lender reject the application of the Borrower unless otherwise provided herein.
  
 20.6   For any substantial breaching behavior of the Borrower such as escaping the supervision of the Lender, and default on the loan principal and interest, the Lender is entitled to impose credit sanction, report to relevant authorities or entities, and disclose the said behavior to the public.
  
  
  
 18
 
  
 20.7   The Lender has the right to transfer its rights hereunder in part or in whole to any third party, and such transfer does not need the consent of the Borrower. Without the written consent of the Lender, the Borrower may not transfer any of its rights and obligations hereunder.
  
  Article 21      Confidentiality
  
 21.1   Either party is obligated to keep confidential the business secrets or other interest-related information of the other party known in the execution and performance of this Contract. Unless otherwise provided in laws and administrative regulations, without the permission of the other party, none of the aforesaid information may be disclosed or divulged to a third party.
  
 21.2   Unless otherwise provided herein, without the consent of the other party, either party may not disclose any information of this Contract and non-public information related hereto to any third party.
  
 To extent permitted by relevant laws and regulations, the Lender may disclose data or information related hereto to the regulatory authorities, its superior bank, branches, and assignee of the creditor’s right.
  
  Article 22      Effectiveness, alteration, and rescinding of Contract
  
 22.1   This Contract shall come into effect as from the date of execution and keep effective till the day when the Borrower performs all obligations hereunder.
  
 22.2   Any alteration to this Contract shall be made in a writing based on an agreement reached by both parties through consultation. The altered clauses or agreements shall constitute a part hereto and be of the same legal effect as that of this Contract. Except the altered part, the remaining part of this Contract shall remain effective, and the original clauses remain effective before the altered part comes into effect.
  
 22.3   The alteration and rescinding of this Contract shall have no impact on the rights of either party to claim compensations for losses. The rescinding of this Contract will not affect the effect of the clauses on dispute settlement.
  
 22.4   This Contract is made in two counterparts of the equal legal effect, with the Borrower, the Lender and     /      holding one copy respectively.
  
  Article 23      Governing laws and settlement of dispute
  
 The execution, effect, interpretation, performance and dispute settlement of this Contract shall be subject to the laws of the People’s Republic of China. For all disputes and dissensions arising out of this Contract or related hereto, both Party A and Party B shall try to settle them through consultation. Shall such consultation fail, they shall be settled in the method stipulated herein.
  
  Article 24      Notification
  
 24.1   All notices hereunder shall be sent in a written form. Unless otherwise provided, the domiciles specified herein by both parties shall be the addresses for communication and correspondence. Where either party’s address for communication or other contact method changes, it shall write to notify the other party in a timely manner.
  
  
  
 19
 
  
 24.2   Where either party hereto refuses to sign a notice or there is any notice failing to be served, the notifying party may have the notice in question served by way of notarization or announcement.
  
  Article 25      Miscellaneous
  
 25.1   If the Lender fails to exercise, or exercise in part, or delay its exercise of any right hereunder, it shall not constitute its waiver or change of the right concerned or other rights, nor shall it affect its further exercise of such right or other rights.
  
 25.2   The ineffectiveness or unenforceability of any clause hereof may not affect the effectiveness and enforceability of other clauses hereof, nor the effect of this Contract as a whole.
  
 25.3   The Lender is, in accordance with the provisions of relevant laws and regulations and the requirements of financial regulatory authorities, entitled to provide information related hereto and other relevant information of the Borrower to the credit reference system established by the People’s Bank of China and other credit information databases established under law for inquiry and use by entities and individuals with appropriate qualifications. The Lender also has the right to inquire relevant information of the Borrower through the credit reference system established by the People’s Bank of China and other credit information databases established under law for purposes of executing and performing this Contract.
  
 25.4   The terms mentioned herein, including “related party”, “relation with related party”, “related transaction”, “main individual investor”, and “key executive”, are of the same meanings as the identical terms defined in the Accounting Standards for Business Enterprises No. 36 – Disclosure of Related Parties (Cai Kuai [2006] No. 3) promulgated by the Ministry of Finance of the PRC and the revised versions thereof. 
  
 25.5   The documents and certificates of loans hereunder prepared and kept by the Lender according to its business rules shall constitute effective evidences for proving the relation of creditor’s rights and liabilities between the Lender and Borrower, and have a binding force to the Borrower.
  
 25.6   In this contract, (1) the references to this Contract shall also cover the alteration or supplementation hereto; (2) the titles of articles are only for reference, not constituting any interpretation to this Contract, nor restricting the contents under such titles or the scope thereof; (3) if the withdrawal date or repayment date is not a banking workday, it shall be postponed to the next banking workday accordingly.
  
  Article 26   Settlement of dispute
  
 26.1   In the event of any dispute arising during the performance of this Contract, the parties shall try to settle it through consultation. Shall such consultation fail, either party is entitled to lodge a lawsuit with the people’s court where the Lender is located for settlement through litigation. 
  
 26.2   During any litigation, other clauses herein unrelated to the dispute shall be performed as normal.
  
  Article 27   Other matters as agreed upon by both parties
   
  	  
 

 
  	  
 	  
 

 
  
  
  
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  Article 28      Notes
  
 The Lender has asked the Borrower to understand the clauses specified herein completely and accurately, and has made explanations on certain clauses as requested by the Borrower. Both parties hereto have reached agreement on the meaning of this Contract.
  
 In addition, the Borrower hereby represents that it has given special attention to its obligations and those clauses unfavorable to itself and confirmed to accept the same. 
  
  	 Party A: (corporate seal):
 	 Party B: (corporate seal):
 
	   
 	   
 
	  
 	  
 
	 Legal representative (signature or seal):
 	 Legal representative (signature or seal):
 
	   
 	   
 
	  
 	  
 
	  September 10, 2013
 	  September 10, 2013
 

 
  
   
 21EXECUTION VERSION

 

CONTRIBUTION AGREEMENT

 

by and among

 

AEP RAIL CORP.,

 

IRL HOLDING LLC,

 

AMERICAN RAILCAR
LEASING, LLC, and

 

For the purposes
of Article 7, IEP ENERGY HOLDING LLC

 

Dated September 20,
2013

 

    	 

    	 

    

 

CONTRIBUTION AGREEMENT

Table of Contents

 

	 	 	Page
	 	 	 
	Article 1 DEFINITIONS	1
	1.1	“Affiliate”	1
	1.2	“Agreed Value”	1
	1.3	“Agreement”	2
	1.4	“Business Day”	2
	1.5	“Capital Account”	2
	1.6	“Cash Contribution”	2
	1.7	“Closing”	2
	1.8	“Closing Date”	2
	1.9	“Code”	2
	1.10	“Company”	2
	1.11	“Company Debtor”	2
	1.12	“Confidential Information”	2
	1.13	“Contract”	2
	1.14	“Financial Statements”	2
	1.15	“Fifth Amended and Restated Operating Agreement”	2
	1.16	“GAAP”	2
	1.17	“Government”	2
	1.18	“Governmental Entity”	3
	1.19	“HoldCo Deductible”	3
	1.20	“IEP Energy”	3
	1.21	“Indemnified Losses”	3
	1.22	“Indemnified Party”	3
	1.23	“Indemnifying Party”	3
	1.24	“IRS”	3
	1.25	“Knowledge” or “knowledge”	3
	1.26	“Law”	3
	1.27	“Leasing LLC”	3
	1.28	“Leasing LLC Interest”	3
	1.29	“Leasing LLC Railcars”	3
	1.30	“Liability” or “Liabilities”	3
	1.31	“Lien”	4
	1.32	“Losses”	4
	1.33	“Material Adverse Change”	4

  

    	 

    	 

    

  

	1.34	“NewCo”	4
	1.35	“NewCo Deductible”	4
	1.36	“NewCo Indemnified Persons”	4
	1.37	“New Transferred Interest Debt”	4
	1.38	“Order”	4
	1.39	“Party”	4
	1.40	“Percentage Interest”	4
	1.41	“Permitted Liens”	4
	1.42	“Person”	5
	1.43	“Pre-Closing Cash Contribution”	5
	1.44	“Railcars”	5
	1.45	“Tax” or “Taxes”	5
	1.46	“Tax Purposes”	5
	1.47	“Tax Returns”	5
	1.48	“Transfer Date”	5
	1.49	“Transferred Interest”	5
	1.50	“Treasury Regulations”	5
	Article 2 CAPITAL CONTRIBUTIONS AND PERCENTAGE INTERESTS GRANTED	5
	2.1	NewCo’s Capital Contribution	5
	2.2	Closing	6
	Article 3 REPRESENTATIONS AND WARRANTIES OF NEWCO	6
	3.1	Corporate Existence and Power	6
	3.2	Valid and Enforceable Agreement; Authorization; Non-contravention	7
	3.3	Capitalization and Ownership	7
	3.4	Title, Condition of Transferred Interest	7
	3.5	No Operating History	7
	3.6	Brokers, Finders	8
	Article 4 REPRESENTATIONS AND WARRANTIES OF THE COMPANY	8
	4.1	Corporate Existence and Power	8
	4.2	Capitalization	8
	4.3	Valid and Enforceable Agreement; Authorization	8
	4.4	Non-Contravention	9
	4.5	Taxes	9
	4.6	Financial Statements	9
	4.7	Absence of Changes	10
	4.8	Brokers, Finders	10
	4.9	Title to Assets	10

  

    	ii

    	 

    

  

	4.10	Railcars	10
	4.11	Leases	10
	4.12	Liabilities	10
	4.13	Insurance	11
	Article 5 ADDITIONAL COVENANTS OF THE PARTIES	11
	5.1	Transferred Interest.	11
	5.2	Company Financing	12
	5.3	Further Assurances; Cooperation	12
	5.4	Confidentiality	13
	5.5	Public Disclosure	13
	5.6	Tax Treatment of the Transactions	13
	Article 6 CLOSING DELIVERABLES OF THE PARTIES	13
	6.1	Deliveries of NewCo at Closing	13
	6.2	Deliveries of HoldCo at Closing	14
	6.3	Deliveries of the Company at Closing	14
	Article 7 INDEMNIFICATION	14
	7.1	Indemnification by HoldCo	14
	7.2	Indemnification by NewCo	15
	7.3	Notice of Claim	15
	Article 8 MISCELLANEOUS PROVISIONS	16
	8.1	Notice	16
	8.2	Entire Agreement	17
	8.3	Amendment and Modification	17
	8.4	Assignment; Binding Agreement	17
	8.5	Waiver of Compliance; Consents	17
	8.6	Expenses	17
	8.7	Counterparts	17
	8.8	Severability	18
	8.9	Remedies Cumulative	18
	8.10	Governing Law	18
	8.11	No Third Party Beneficiaries or Other Rights	18
	8.12	Submission to Jurisdiction	18
	8.13	Waiver of Jury Trial	18
	8.14	Disclosure Schedules	19
	8.15	Headings; Interpretation	19

 

    	iii

    	 

    

 

CONTRIBUTION AGREEMENT

 

This CONTRIBUTION AGREEMENT
(this “Agreement”) is entered into as of this 20th day of September, 2013, by and among AEP Rail
Corp.,  a Delaware corporation (“NewCo”), IRL Holding LLC, a Delaware limited liability company (“HoldCo”),
American Railcar Leasing, LLC, a Delaware limited liability Company (the “Company), and, for the purposes of Article
7, IEP Energy Holding LLC, a Delaware limited liability company. NewCo, HoldCo and the Company are each referred to herein
as a “Party” and together as the “Parties”. Capitalized terms not otherwise defined herein
are defined in Article 1.

 

RECITALS

 

WHEREAS, HoldCo is
the sole member of the Company; and

 

WHEREAS, HoldCo wishes
to amend and restate the operating agreement of the Company in the form of the Fifth Amended and Restated Operating Agreement attached
hereto as Exhibit A (the “Fifth Amended and Restated Operating Agreement”); and

 

WHEREAS, in exchange
for the Cash Contribution and the fulfillment of the covenants contained in Section 5.1 of this Agreement, NewCo desires to acquire
and the Company wishes to grant a 75% Percentage Interest and a related Capital Account in the Company to NewCo.

 

NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual covenants, representations, warranties, conditions, and agreements contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound, the Parties agree as follows:

 

Article
1

DEFINITIONS

 

The following terms
shall have the meanings set forth below in this Article 1.

 

1.1           
“Affiliate” means with respect to any Person, any other Person which is controlling, controlled by, or
under common control with, directly or indirectly through any Person, the Person referred to, and, if the Person referred to
is a natural person, any member of such Person’s immediate family. The term “control” (including, with
correlative meaning, the terms “controlled by” and “under common control with”) as used with respect
to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

   

1.2           “Agreed
Value” shall mean $458,336,000.

  

    	 

    	 

    

 

1.3           “Agreement”
means this Contribution Agreement as executed on the date hereof and as amended or supplemented in accordance with the terms
hereof, including the Disclosure Schedules and Exhibits hereto.

 

1.4           “Business
Day” means any day which is not a Saturday, Sunday or legal holiday in the State of Missouri, United States of
America.  

 

1.5           “Capital
Account” shall have the meaning set forth in the Fifth Amended and Restated Operating Agreement.

 

1.6           “Cash
Contribution” means two hundred seventy eight million eight hundred fifty two thousand dollars ($278,852,000).

 

1.7           “Closing”
means the consummation of the transactions contemplated by this Agreement, as provided for in Section 2.2.

 

1.8           “Closing
Date” means October 2, 2013.

 

1.9           
“Code” means the Internal Revenue Code of 1986 as amended from time to time.

 

1.10         “Company”
has the meaning set forth in the first paragraph hereof, except that references to the Company in Article 4 and any
related definitions shall be deemed to include the Company and its majority-owned subsidiaries; provided, however,
that references to the Company in Section 4.1(a) and Section 4.2(a) shall not include such subsidiaries.

 

1.11         “Company
Debtor” has the meaning set forth in the Section 5.2(a).

 

1.12         “Confidential
Information” has the meaning set forth in Section 5.4.

 

1.13         “Contract”
means any contract, agreement, understanding, lease, indenture, mortgage, deed of trust, evidence of indebtedness, binding
commitment or instrument, open purchase order, or offer, written or oral, express or implied.

 

1.14         
“Financial Statements” has the meaning set forth in Section 4.6.

 

1.15         “Fifth
Amended and Restated Operating Agreement” has the meaning set forth in the Recitals.

 

1.16         
“GAAP” means the accounting principles generally accepted in the U.S., including as set forth in the
opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board, and applied consistently throughout the periods
involved.

 

1.17         “Government”
means the United States of America, any other nation or state, any U.S. State, any federal, bilateral or multilateral
governmental authority, any possession, territory, local, county, district, city or other governmental unit or subdivision,
and any branch, entity, agency, or judicial body of any of the foregoing.

 

    	2

    	 

    

  

1.18         “Governmental
Entity”  means any entity or body exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to federal, state or local government or international, multinational or other government and any
bodies exercising powers derived from the authority of those entities, including any department, commission, board, agency,
court, bureau, official or other self-regulatory, regulatory, administrative, quasi-governmental or judicial authority
thereof.

 

1.19         “HoldCo
Deductible” has the meaning set forth in Section 7.2(b).

 

1.20         “IEP
Energy” has the meaning set forth in Section 7.2(a).

 

1.21         “Indemnified
Losses” has the meaning set forth in Section 7.1(a).

 

1.22         “Indemnified
Party” has the meaning set forth in Section 7.3.

 

1.23         “Indemnifying
Party” has the meaning set forth in Section 7.3.

 

1.24         “IRS”
means the United States Internal Revenue Service.

 

1.25         “Knowledge”
or “knowledge” means (i) the actual awareness of a particular fact, and (ii) knowledge that would have
been acquired by an officer or director of NewCo or the Company, as applicable, upon due inquiry and investigation, including
to the extent that a known fact or matter would motivate a reasonably prudent individual to investigate, the awareness of a
fact that a prudent individual could be expected to discover or otherwise become aware of in the course of conducting a
reasonably comprehensive investigation and due inquiry concerning that actually known fact or matter. The words
“know,” “knowing” and “known” shall be construed accordingly.

 

1.26         “Law”
means any statute, law, ordinance, decree, order, injunction, rule, directive, or regulation of any Government or
quasi-governmental authority, and includes rules and regulations of any regulatory or self-regulatory authority compliance
with which is required by Law.

 

1.27         “Leasing
LLC” means AEP Leasing LLC.

 

1.28         “Leasing
LLC Interest” has the meaning set forth in Section 3.4.

 

1.29         “Leasing
LLC Railcars” means all railcars owned by Leasing LLC

 

1.30         “Liability”
or “Liabilities” means all debts, adverse claims, liabilities and/or obligations, direct, indirect,
absolute or contingent, whether accrued, vested or otherwise and whether or not reflected or required to be reflected on the
financial statements of a Person.

 

    	3

    	 

    

  

1.31         “Lien”
means any lien, security interest, mortgage, indenture, deed of trust, pledge, charge, adverse claim, easement, restriction
or other encumbrance.

 

1.32         “Losses”
has the meaning set forth in Section 7.1(a).

 

1.33         “Material
Adverse Change” means any effect or change materially adverse to the business, assets, financial condition, or
results of operations of the Company; provided that none of the following shall be deemed to constitute, and none of
the following shall be taken into account in determining whether there has been, a Material Adverse Change: any adverse
change or effect arising from or relating to (i) general business or economic conditions (ii) acts of God, natural disasters,
or national or international political or social conditions, including riots, insurrections, the engagement by the United
States in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any
military or terrorist attack upon the United States (iii) financial, banking, or securities markets disruption (iv) changes
in GAAP or accounting principles (or interpretations thereof), (v) changes in Laws or (vi) the taking of any action by the
Company contemplated by this Agreement; provided that in the cases of clauses (i) through (v), such changes do not
disproportionately affect the Company relative to other companies in the industries in which the Company operates.

 

1.34         “NewCo”
has the meaning set forth in the first paragraph hereof.

 

1.35         “NewCo
Deductible” has the meaning set forth in Section 7.1(b).

 

1.36         “NewCo
Indemnified Persons” has the meaning set forth in Section 7.1(a).

 

1.37         “New
Transferred Interest Debt” has the meaning set forth in Section 5.2(a).

 

1.38         “Order”
means an order, writ, injunction, or decree of any court or Government.

 

1.39         
“Party” has the meaning set forth in the first paragraph hereof.

 

1.40         “Percentage
Interest” has the meaning set forth in the Fifth Amended and Restated Operating Agreement.

 

1.41         
“Permitted Liens” means (a) all Liens for Taxes and other governmental charges and assessments that are
not yet due and payable or which are being contested in good faith by appropriate proceeds (provided required payment have
been made in connection with any such contest and for which adequate reserves reflected in the Financial Statements under
GAAP have been made), (b) Liens of carriers, warehousemen, mechanics and materialmen and other like Liens arising in the
ordinary course of business, (c) easements, rights of way and restrictions, zoning ordinances and other similar Liens
affecting the real property and disclosed in policies of title insurance, and (d) statutory Liens in favor of lessors arising
in connection with any property leased to the Company.

 

    	4

    	 

    

  

1.42         “Person”
means and shall include a natural person, a partnership, a corporation, a limited liability company, an association, a joint
stock company, a trust, a joint venture, an unincorporated organization or a governmental entity (or any department, agency
or political subdivision thereof) and shall be construed broadly.

 

1.43         “Pre-Closing
Cash Distribution” has the meaning set forth in Section 4.7.

 

1.44         “Railcars”
has the meaning set forth in Section 4.9.

 

1.45         
“Tax” or “Taxes” means all taxes, charges, fees, levies, or other like assessments,
including without limitation, all federal, possession, state, city, county and foreign (or governmental unit, agency, or
political subdivision of any of the foregoing) income, profits, employment (including Social Security, unemployment insurance
and withholding), franchise, gross receipts, sales, use, transfer, stamp, occupation, real and personal property, unclaimed
property, capital, severance, premium, windfall profits, customs, duties, ad valorem, recapture, alternative minimum, value
added and excise taxes; and any other Government charges of the same or similar nature, including any interest, penalty or
addition thereto. Any one of the foregoing Taxes shall be referred to sometimes as a “Tax.”

 

1.46         “Tax
Purposes” has the meaning set forth in Section 5.6.

 

1.47         “Tax
Returns” means all reports, estimates, declarations, claims for refund, information statements and returns relating
to or required by Law to be filed in connection with any Taxes, and all information returns (e.g., Form W-2, Form 1099) and
reports relating to Taxes and Taxes payable by, pursuant to or in connection with any Plans, including any amendment or
supplement thereof. Any one of the foregoing Tax Returns shall be referred to sometimes as a “Tax
Return.” 

 

1.48         “Transfer
Date” has the meaning set forth in Section 5.1(a).

 

1.49         “Transferred
Interest” has the meaning set forth in Section 5.1(a).

 

1.50         “Treasury
Regulations” means the rules and regulations promulgated under the Code issued by the U.S. Department of
Treasury.

 

Article
2

CAPITAL CONTRIBUTIONS AND PERCENTAGE INTERESTS GRANTED

 

2.1           NewCo’s
Capital Contribution.

 

(a)          Subject
to the terms and conditions stated herein, at the Closing on the Closing Date, NewCo agrees to contribute, convey, transfer and
assign to the Company, the Cash Contribution, in the manner set forth in this Agreement.

 

    	5

    	 

    

  

(b)          In
consideration of the contribution, conveyance, transfer and assignment of the Cash Contribution by NewCo to the Company, in reliance
upon the representations, warranties and covenants made herein by NewCo, the Company, in full payment for the Cash Contribution,
agrees to grant NewCo all right, title and interest to 75% of the Percentage Interests in the Company pursuant and subject to the
terms of the current operating agreement of the Company and the Fifth Amended and Restated Operating Agreement and shall credit
NewCo’s Capital Account with the Cash Contribution.

 

2.2           Closing.
    The Closing shall take place at 9:00 a.m. on the Closing Date, at the offices of Bryan Cave LLP, 211 N. Broadway, Suite 3600,
St. Louis, Missouri, 63102, or at such other place as the Parties may agree in writing. At Closing, NewCo shall deliver or cause
to be delivered to the Company or to such account(s) as shall be designated by the Company (it being agreed that any payment to
an account or accounts for the benefit of Persons other than the Company shall be for convenience only and shall be deemed to
have been paid to the Company and then distributed by the Company to such Persons), by wire transfer of immediately available
funds, in accordance with the wire transfer instructions set forth on Disclosure Schedule 2.2, the Cash Contribution and
shall deliver or cause to be delivered to the Company and/or HoldCo, as applicable, the other deliverables identified in Section
6.1. At Closing, HoldCo shall deliver or cause to be delivered to the Company and/or NewCo, as applicable, the deliverables
identified in Section 6.2. At Closing, the Company shall cause to be delivered to NewCo and/or HoldCo, as applicable, the
deliverables identified in Section 6.3. 

 

Article
3

REPRESENTATIONS AND WARRANTIES OF NEWCO

 

NewCo hereby makes the
following representations and warranties, each of which is true and correct on the Closing Date and shall survive the Closing and
the transactions contemplated hereby to the extent set forth herein.

 

3.1           Corporate
Existence and Power.

 

(a)          NewCo
is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.

 

(b)          NewCo
has all requisite corporate power and authority to own, lease and use its assets and to transact the business in which it is engaged,
and holds all authorizations, franchises, licenses and permits required therefor and all such authorizations, franchises, licenses
and permits are valid and subsisting. 

 

(c)          NewCo
has the full power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to
consummate the transactions contemplated hereby. 

 

    	6

    	 

    

  

3.2           Valid
and Enforceable Agreement; Authorization; Non-contravention.

 

(a)          This
Agreement has been duly executed and delivered by NewCo and constitutes a legal, valid and binding obligation of NewCo, enforceable
against NewCo in accordance with its terms, except that such enforcement may be subject to (i) bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (ii) general principles
of equity. 

 

(b)          The
execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized,
approved and ratified by all necessary corporate actions on the part of NewCo. 

 

(c)          NewCo
is not a party to, subject to or bound by any Contract, Law or Order which does or would (i) conflict with or be breached or violated
or the obligations thereunder accelerated or increased (whether or not with notice or lapse of time, or both) by the execution,
delivery or performance by NewCo of this Agreement, or (ii) prevent the carrying out of the transactions contemplated hereby. Except
as set forth on Disclosure Schedule 3.2, no permit, consent, waiver, approval or authorization of, or declaration to or
filing or registration with, any Government or third party is required in connection with the execution, delivery or performance
of this Agreement or the LLC Agreement by NewCo or the consummation by NewCo of the transactions contemplated hereby and thereby,
except for any such permits, consents, waivers, approvals, authorizations, declarations, filings or registrations the failure of
which to obtain would not have a material adverse effect with respect to NewCo. The transactions contemplated hereby will not result
in the creation of any Lien against the Company, NewCo or any of their respective properties or assets.

 

3.3           Capitalization
and Ownership.   The authorized shares of NewCo and the names, addresses and holdings of the record holders thereof are set
forth in Disclosure Schedule 3.3. Such shares constitute the only issued and outstanding capital stock of NewCo.

 

3.4            Title,
Condition of Transferred Interest.

 

On the Transfer Date, NewCo will have good, marketable and indefeasible title to
all of the ownership interests of Leasing LLC (the “Leasing LLC Interest”), free and clear of
any encumbrances. On the Transfer Date, NewCo will have the full power and authority to convey, transfer and assign the
Leasing LLC Interest, free and clear of all encumbrances, pursuant to the covenants of this Agreement. To the knowledge of
NewCo, the tangible assets of Leasing LLC, including the Leasing LLC Railcars, and are in good operating condition and repair
and have been maintained in accordance with normal industry practice. Leasing LLC has good, marketable and indefeasible title
to the Leasing LLC Railcars.

 

3.5           No
Operating History.   Except for the assets used to make the Cash Contribution and the contribution of the Leasing LLC
Interest, NewCo has no assets or Liabilities.

 

    	7

    	 

    

  

3.6           Brokers,
Finders.   No finder, broker, agent, or other intermediary, acting on behalf of any Seller or the Company, is entitled
to a commission, fee, or other compensation or obligation in connection with the negotiation or consummation of this Agreement
or any of the transactions contemplated hereby.

 

Article
4

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company hereby
makes the following representations and warranties, each of which is true and correct on the Closing Date and shall survive the
Closing Date and the transactions contemplated hereby to the extent set forth herein.

 

4.1           Corporate
Existence and Power.

 

(a)          The
Company is a limited liability company, validly existing and in good standing under the laws of the State of Delaware. 

 

(b)          The
Company has all requisite corporate power and authority to own, lease and use its assets and to transact the business in which
it is engaged, and holds all authorizations, franchises, licenses and permits required therefor. 

 

(c)          The
Company has the full power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder,
and to consummate the transactions contemplated hereby.

 

4.2           Capitalization

 

(a)          HoldCo
is the sole member of the Company and holds all of the Percentage Interests in the Company.

 

(b)          The
issuance of Percentage Interests in the Company to NewCo has been duly authorized by the Company and, when issued and delivered
to NewCo in accordance with the terms of this Agreement, will be validly issued in accordance with the Fifth Amended and Restated
Operating Agreement of the Company.

 

4.3           Valid
and Enforceable Agreement; Authorization.

 

This Agreement constitutes
a legal, valid and binding obligation of the Company, enforceable against it in accordance with its terms, except that such enforcement
may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement
of creditors’ rights generally, and (ii) general principles of equity. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized, approved and ratified by all necessary action on
the part of the Company. The Company has full authority to enter into and deliver this Agreement, to perform its obligations hereunder,
and to consummate the transactions contemplated hereby.

 

    	8

    	 

    

  

4.4           Non-Contravention.

 

The Company is not
a party to, subject to or bound by any Contract, Law or Order which would (i) be breached or violated or its obligations thereunder
accelerated or increased (whether or not with notice or lapse of time, or both) by the execution or delivery by the Company of
this Agreement or the performance by the Company of the transactions contemplated by this Agreement except for any necessary consents
under Contracts which have been obtained, or (ii) prevent the carrying out of the transactions contemplated hereby. Except as otherwise
provided for herein and except for any necessary consents under Contracts which have been obtained, no waiver or consent of any
third person or governmental authority is required for the execution of this Agreement by the Company or the consummation by the
Company of the transactions contemplated hereby. The transactions contemplated hereby will not result in the creation of any Lien
against the Company or any of its properties or assets. The Company has all approvals, permits, licenses and any similar authority
necessary to own the Railcars and conduct its business as is now being conducted.

 

4.5           Taxes.

 

(a)          The
Company has filed, or caused to be filed, on a timely basis all material Tax Returns, and such Tax Returns are true, correct and
complete in all material respects. 

 

(b)          All
material Taxes due and owing by the Company (whether or not reflected on any Tax Return) have been timely and fully paid.

 

(c)          The
Company has timely and properly withheld and paid all material Taxes required to have been withheld and paid in connection with
any amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party.

 

(d)          There
are no Liens for Taxes (other than Permitted Liens) upon any assets of the Company.

 

(e)          The
Company has not received from any federal, state, local or foreign Tax authority (including jurisdictions where the Company has
not filed a Tax Return) any (i) notice indicating an intent to open an audit or other review; (ii) request for information
related to Tax matters; or (iii) notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed
by any Tax authority against the Company.

 

4.6           Financial
Statements.

 

(a)          Attached
as Disclosure Schedule 4.6 are the audited balance sheets of the Company as of December 31, 2011 and 2012, and the
interim unaudited balance sheet of the Company as of March 31, 2013 and the related statements of income, retained earnings and
cash flows together with notes and schedules thereto (collectively, the “Financial Statements”).

 

    	9

    	 

    

 

The Financial Statements
were derived from the books and records of the Company and (i) are true, complete and correct, (ii) present fairly the financial
position and results of operations and cash flows of the Company at the dates and for the periods indicated, and (iii) except as
set forth on Disclosure Schedule 4.6, have been prepared in accordance with GAAP, applied on a consistent basis, subject
in the case of the interim Financial Statements, to normal year-end adjustments and the absence of footnotes.

 

4.7           Absence
of Changes.  Except as set forth in this Section 4.7, since December 31, 2012, the Company has operated only in the
ordinary course of business and there has been (a) no Material Adverse Change, (b) no material loss, destruction or damage to,
or disruption in the use of, any material property or material asset of the Company, and (c) no change in accounting methods (resulting
in a material amount of Taxes due and payable) or annual Tax accounting period. After March 31, 2013 and on or before the date
hereof, the Company distributed to HoldCo (i) Seventy One Million One Hundred Forty Eight Thousand Dollars ($71,148,000) in cash
(the “Pre-Closing Cash Distribution”) and (ii) the certain Secured Promissory Note issued by Carl C. Icahn
with a principal amount of One Hundred Sixty Five Million Dollars ($165,000,000), together with accrued interest thereon, dated
October 28, 2004, as amended.

 

4.8           Brokers,
Finders.   No finder, broker, agent, or other intermediary, acting on behalf of any Seller or the Company, is entitled to a
commission, fee, or other compensation or obligation in connection with the negotiation or consummation of this Agreement or any
of the transactions contemplated hereby.

 

4.9           Title
to Assets.   Except as set forth on Disclosure Schedule 4.9, the Company has all legal and beneficial title to the railcars
set forth in the Financial Statements (the “Railcars”), free and clear of all Liens, other than Permitted Liens.

 

4.10         Railcars.
The Railcars are free from material defects and in good order and repair, subject to normal wear and tear. The Railcars are in
compliance with all applicable Laws governing the use and maintenance thereof and are in material compliance with manufacturer’s
warranties (to the extent such warranties are or should be available other than due to the passage of time). There are no known
claims or liabilities arising as a result of the operation or use of any Railcar, as to which the Company would be or become liable.

 

4.11         Leases.
The Company is not in material default of its obligations as “lessor” (or other comparable capacity) under any lease
related to any Railcar and, to the Knowledge of the Company, there are no defaults by any lessee under any such lease. To the
Knowledge of the Company, each such lease is valid and in full force and effect.

 

4.12         Liabilities.
The Company does not have any material Liabilities other than Liabilities that are set forth in the Financial Statements.

 

    	10

    	 

    

  

4.13         Insurance.
The Company currently maintains insurance policies relating to its business and covering property, fire, casualty, liability,
workers’ compensation and all other forms of insurance customarily obtained by businesses in the same industry (the “Insurance
Policies”). The Company has paid all premiums due under the Insurance Policies, is not in default regarding any provision
of any Insurance Policy and has not failed to present any notice or claim thereunder in a timely fashion. The Insurance Policies
(a) are in full force and effect; (b) insure against risks of the kind customarily insured against and in amounts customarily
carried by similarly situated businesses and (c) provide adequate insurance coverage for the activities of the Company.

 

Article
5

ADDITIONAL COVENANTS OF THE PARTIES

 

5.1           Transferred
Interest.

  

(a)          On
or after January 1, 2014, but in no event later than January 15, 2014 (the “Transfer Date”), NewCo will
transfer all of its right, title and interest in Leasing LLC to the Company (the “Transferred Interest”). The
fair market value of the Transferred Interest on the Transfer Date shall be equal to or greater than the Agreed Value. The Company
shall credit Newco’s Capital Account by the fair market value of the Transferred Interest. 

 

(b)          Except
in the ordinary course of business, during the period between the Closing Date and the Transfer Date, NewCo shall ensure and direct
that Leasing LLC shall not distribute any property other than cash to its members, including without limitation any income earned
during the period between the Closing Date and the Transfer Date.

 

(c)          NewCo
shall be responsible for all Liabilities incurred or accrued, or arising out of events occurring, prior to the Transfer Date, or
as a result of the transactions contemplated by this Agreement with respect to all Transferred Interest. NewCo, or an Affiliate
thereof, shall be responsible for providing or causing to be provided insurance coverage for the Leasing LLC Railcars prior to
the Transfer Date.

 

(d)          In
the event that NewCo fails to Complete the transfer of the Transferred Interest prior to the Transfer Date, then, in addition to
any other remedies available to the Company and HoldCo under this Agreement, at law or in equity, the Percentage Interest held
by NewCo shall be reduced to 37.5% Percentage Interest.

 

    	11

    	 

    

  

5.2           Company
Financing.

 

(a)          Promptly
following the Transfer Date, NewCo shall cause the Company or a subsidiary thereof (in either case, the “Company Debtor”),
to obtain financing from third party lenders in an amount of three hundred eighty one million three hundred forty nine thousand
dollars ($381,349,000) (the “New Transferred Interest Debt”). HoldCo shall deliver a guaranty of ACF Industries
Holdings LLC (“ACF Industries”) of all amounts due under the New Transferred Interest Debt; provided that the
terms of such guarantee, including the minimum amount of assets maintained by ACF Industries, shall be reasonably sufficient to
ensure Holdco complies with the intent set forth in Section 5.2(c) and ACF Industries shall at all times maintain a net worth at
least equal to the amount of the New Transferred Interest Debt.

 

(b)          Upon
receipt of the New Transferred Interest Debt, NewCo shall cause the Company Debtor to distribute to HoldCo cash equal to $381,349,000,
provided that ACF Industries has guaranteed the New Transferred Interest Debt in accordance with Section 5.2(a).

 

(c)          The
Parties intend that (i) the distribution of borrowed funds to HoldCo shall qualify as a “debt-financed transfer” under
Treasury Regulations Section 1.707-5(b), and (ii) HoldCo’s share of the Company’s liabilities under the New Interest
Railcar Debt with respect to the borrowed funds under Section 1.752-2 and 1.707-5(a)(2)(i) of the Treasury Regulations shall be
the entire amount of the Company’s liabilities under the New Transferred Interest Debt with respect to the borrowed funds.
The Parties agree to act at all times in a manner consistent with the provisions of this Section 5.2(c), except with the
prior written consent of HoldCo. Except for amounts that must be prepaid pursuant to the loan agreements and documents governing
the New Transferred Interest Debt, for a period of 3 years, the Company Debtor will not make any payment that would reduce the
outstanding principal balance of the Company Debtor’s liabilities under the New Transferred Interest Debt, other than with
the proceeds of a successor debt that (i) qualifies as, and is treated by the Company Debtor as, a continuation of the debt repaid
under Section 1.707-5(c) of the Treasury Regulations, and (ii) is treated as allocable entirely to HoldCo under the principles
of the debt-financed transfer exception to the disguised sale rules provided in Section 1.707-5(b) of the Treasury Regulations.

 

(d)          Promptly
following the Transfer Date, NewCo shall cause the Company to make a cash distribution to HoldCo in an amount equal to three million
dollars ($3,000,000). Such distribution shall be deemed to be a guaranteed payment within the meaning of section 707(c). 

 

5.3           Further
Assurances; Cooperation. From and after the Closing, the Parties shall do such acts and execute such documents and instruments
as may be reasonably required to make effective the transactions contemplated hereby. On or after the Closing Date, the Parties
shall, on request, cooperate with one another by furnishing any additional information, executing and delivering any additional
documents and instruments, including contract assignments, and doing any and all such other things as may be reasonably required
by the Parties or their counsel to consummate or otherwise implement the transactions contemplated by this Agreement.

 

    	12

    	 

    

  

5.4           Confidentiality.
The Parties acknowledge that the Confidential Information of the other Party is valuable and proprietary to the Party and agrees
not to, directly or indirectly, publish, disseminate or otherwise disclose any Confidential Information or developments of the
Company without the prior written consent of the other Party. For purposes of this Agreement, the term “Confidential
Information” means any and all information not publicly available or generally available to the industry, which relates
to specific matters concerning the Party.

 

5.5           Public
Disclosure. The Parties to this Agreement shall consult with each other as to the form, substance and timing of any press
release or other public disclosure related to this Agreement or the transactions contemplated hereby and no such press release
or other public disclosure shall be made without the consent of the other Parties hereto, which consent shall not be unreasonably
withheld or delayed; provided, however, that the Parties may make such disclosure to the extent permitted above or to the
extent required by applicable law, including the requirements of the NASDAQ Stock Exchange or the United States Securities and
Exchange Commission.

 

5.6           
Tax Treatment of the Transactions. The Parties agree and acknowledge that the transactions contemplated by this Agreement,
taken together, are intended to be treated, for purposes of federal income taxation and for purposes of certain state income tax
laws that incorporate or follow federal income tax principles (“Tax Purposes”), as contributions by HoldCo
of its interests in the Company assets and liabilities and by NewCo of the Cash Contribution to a partnership under Code
Section 721(a). The Parties shall file all Tax Returns in a manner consistent with this intended Tax treatment.

 

Article
6

CLOSING DELIVERABLES OF THE PARTIES

 

6.1           Deliveries
of NewCo at Closing . At the Closing, NewCo shall make or tender, or cause to be made or tendered, delivery of the following:

 

(a)          to
the Company or to such account(s) as shall be designed by the Company (it being agreed that any payment to an account or accounts
for the benefit of Persons other than the Company shall be for convenience only and shall be deemed to have been paid to the Company
and then distributed by the Company to such Persons), by cash or wire transfer, the Cash Contribution, in accordance with the wire
transfer instructions set forth on Disclosure Schedule 2.2;

 

(b)          The
Fifth Amended and Restated Operating Agreement, the form of which is attached hereto as Exhibit A, duly executed by NewCo;

 

(c)          a
properly completed and executed IRS Form W-9; 

 

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(d)          such
other customary documents, instruments or certificates as shall be reasonably requested by the Company or HoldCo and as shall be
consistent with the terms of this Agreement.

 

6.2           Deliveries
of HoldCo at Closing. At the Closing, HoldCo shall make or tender, or cause to be made or tendered, delivery of the following
to the Company and NewCo:

 

(a)          The
Fifth Amended and Restated Operating Agreement. the form of which is attached hereto as Exhibit A, duly executed by HoldCo;

 

(b)          such
other customary documents, instruments or certificates as shall be reasonably requested by the Company or NewCo and as shall be
consistent with the terms of this Agreement.

 

6.3           Deliveries
of the Company at Closing . At the Closing, the Company shall make or tender, or cause to be made or tendered (and NewCo
shall cause the Company to make or tender, or cause to be made or tendered), delivery of the following:

 

(a)          to
NewCo, Percentage Interests and a related Capital Account representing 75% of the Percentage Interests in the Company;

 

(b)          to
HoldCo, Percentage Interests and a related Capital Account representing 25% of the Percentage Interests in the Company; and

 

(c)          such
other customary documents, instruments or certificates as shall be reasonably requested by NewCo or HoldCo and as shall be consistent
with the terms of this Agreement.

 

Article
7

INDEMNIFICATION

 

7.1           Indemnification
by HoldCo.

 

(a)          Subject
to the terms and conditions of this Article 7, HoldCo shall indemnify and hold harmless NewCo and its Affiliates (including,
but not limited to the Company, NewCo and any direct or indirect parent of NewCo, including, but not limited to, American Entertainment
Properties Corp. and Icahn Enterprises L.P.) and the members, stockholders, directors, officers, partners, employees, successors,
assigns, representatives and agents of each of them in their capacities as such (collectively, the “NewCo Indemnified
Persons”), from and against any and all claims, losses, monetary damages, liabilities, fines, fees, penalties, expenses,
taxes net of any present or future tax benefits, or costs (“Losses”), plus reasonable attorneys’ fees
and expenses, including court costs and expert witness fees and costs, incurred in connection with Losses and/or enforcement of
this Agreement (in all, “Indemnified Losses”) incurred or to be incurred by any of them resulting from or arising
out of (i) any breach or violation of a representation or warranty made by the Company in Article 4 of this Agreement, (ii)
any breach or violation of a covenant or agreement made by HoldCo or the Company in this Agreement, including the provisions of
Article 5 of this Agreement, or (iii) any adjustment or recharacterization with respect to income Taxes by any federal or state
taxing authority, including but not limited to the IRS, to the income tax treatment of the transactions contemplated by this Agreement
as reported on the income tax returns of any NewCo Indemnified Person provided, however, such indemnification pursuant to (iii)
shall not apply to the contribution of Leasing LLC contemplated by Section 5.1. 

 

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(b)          HoldCo
shall not be liable under Section 7.1(a) until the NewCo Indemnified Persons have incurred Indemnified Losses equal to or exceeding
Six Million Dollars ($6,000,000.00) (the “NewCo Deductible”); and then HoldCo shall be liable only for such
Indemnified Losses in excess of the NewCo Deductible. The aggregate amount of Indemnified Losses that HoldCo shall be liable for
under Section 7.1(a) above shall not exceed Three Hundred Million Dollars ($300,000,000.00); provided, that the limitations
set forth in this Section 7.1(b) shall not apply to Indemnified Losses arising from fraud.

 

7.2           Indemnification
by NewCo.

 

(a)          Subject
to the terms and conditions of this Article 7, IEP Energy Holding LLC (“IEP Energy”) shall indemnify
and hold harmless each of HoldCo, the Company and its Affiliates, and the members, directors, officers, partners, employees, successors,
assigns, representatives and agents of each of them in their capacities as such (the “Company Indemnified Persons”)
from and against any and all Indemnified Losses incurred or to be incurred by any of them resulting from or arising out of (i)
any breach or violation of a representation or warranty made by NewCo in Article 3 of this Agreement or (ii) any breach
or violation of a covenant or agreement made by NewCo in this Agreement.

 

(b)          IEP
Energy shall not be liable under Section 7.2(a) until the HoldCo Indemnified Persons have incurred Indemnified Losses equal to
or exceeding Two Million Dollars ($2,000,000.00) (the “HoldCo Deductible”); and then IEP Energy shall be liable
only for such Indemnified Losses in excess of the HoldCo Deductible. The aggregate amount of Indemnified Losses that IEP Energy
shall be liable for under Section 7.2(a) above shall not exceed One Hundred Million Dollars ($100,000,000.00); provided,
that the limitations set forth in this Section 7.2(b) shall not apply to Indemnified Losses arising from fraud.

 

7.3           Notice
of Claim. In the event that NewCo seeks indemnification on behalf of a NewCo Indemnified Person, or the Company seeks indemnification
on behalf of a Company Indemnified Person, such Party seeking indemnification (the “Indemnified Party”) shall
give reasonably prompt written notice to the indemnifying Party (the “Indemnifying Party”) specifying the facts
constituting the basis for such claim and the amount, to the extent known, of the claim asserted; provided, however, that the
right of a Person to be indemnified hereunder shall not be adversely affected by a failure to give such notice unless, and then
only to the extent that, an Indemnifying Party is actually irrevocably and materially prejudiced thereby. Subject to the terms
hereof, the Indemnifying Party shall pay the amount of any valid claim not more than ten (10) days after the Indemnified Party
provides notice to the Indemnifying Party of such amount.

 

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Article
8

MISCELLANEOUS PROVISIONS

 

8.1           Notice .
All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall
be deemed to have been duly given (a) when delivered in person, (b) by facsimile, when receipt is confirmed, (c) on the next Business
Day when sent by overnight courier, or (d) on the second succeeding Business Day when sent by registered or certified mail (postage
prepaid, return receipt requested), to the respective Parties at the following addresses (or at such other address for a Party
as shall be specified by like notice):

 

If to NewCo:

 

AEP Rail Corp.

100 Clark Street, Suite
201

St. Charles, MO 63301

Telephone: (636) 940-5000

Facsimile: (636) 940-5024

Attn: Umesh Choksi

 

If to HoldCo:

 

IRL Holding LLC

767 Fifth Avenue, 47th
Floor

New York, NY 10153

Telephone: (212) 702-4300

Facsimile: (212) 750-5815

Attn: Keith Cozza

 

If to the Company:

 

American Railcar Leasing,
LLC

100 Clark Street, Suite
201

St. Charles, MO 63301

Telephone: 636-940-5000

Facsimile: 636-940-5024

Attn: Umesh Choksi

 

With a copy to:

 

Bryan Cave LLP

211 N. Broadway, Suite
3600

 

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St. Louis, MO 63102

Telephone: 314-259-2545

Facsimile: 314-552-8545

Attn: John Welge

 

8.2           Entire
Agreement. This Agreement and the Disclosure Schedules and Exhibits hereto embody the entire agreement and understanding of
the Parties hereto with respect to the subject matter hereof, and supersede all prior and contemporaneous agreements and understandings
relative to such subject matter.

 

8.3           Amendment
and Modification. To the extent permitted by applicable Law, this Agreement shall be amended, modified or supplemented only
by a written agreement among NewCo, HoldCo and the Company.

 

8.4           Assignment;
Binding Agreement. This Agreement and various rights and obligations arising hereunder shall inure to the benefit of and be
binding upon the Parties hereto and their successors, and permitted assigns. Neither this Agreement nor any of the rights, interests,
or obligations hereunder shall be transferred, delegated, or assigned (by operation of law or otherwise), by the Parties hereto
without the prior written consent of the other Parties, except that NewCo shall have the right to transfer and assign any or all
of its rights and obligations hereunder to any entity which at the time of such transfer and assignment is controlled by NewCo
or by the Affiliates of NewCo provided that NewCo shall not be relieved of its obligations hereunder.

 

8.5           Waiver
of Compliance; Consents. Any failure of any Party to comply with any obligation, covenant, agreement or condition herein may
be waived by the other Parties, only by a written instrument signed by the Parties granting such waiver, but such waiver or failure
to insist upon strict compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure. Whenever this Agreement requires or permits consent by or on behalf of any Party
hereto, such consent shall be given in writing in a manner consistent with the requirements for a waiver of compliance as set
forth in this Section 8.5.

 

8.6           Expenses.
All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the
Party incurring such costs or expenses.

 

8.7           Counterparts.
This Agreement may be executed in multiple counterparts, and on separate counterparts, each of which shall be deemed an original,
but all of which taken together shall constitute one and the same instrument.

 

    	17

    	 

    

  

8.8           Severability.
If any other provision of this Agreement shall be determined to be contrary to Law and unenforceable by any court of law, all
other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby are not affected in any manner materially adverse to any Party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate
in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable
manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

 

8.9           Remedies
Cumulative. Except as otherwise provided herein, all rights and remedies of the Parties under this Agreement are cumulative
and without prejudice to any other rights or remedies under Law. Nothing contained herein shall be construed as limiting the Parties’
rights to redress for fraud.

 

8.10         Governing
Law. This Agreement shall in all respects be construed in accordance with and governed by the substantive laws of the State
of Delaware, without reference to its choice of law rules.

 

8.11         No
Third Party Beneficiaries or Other Rights. Nothing herein shall grant to or create in any Person not a Party hereto, or any
such Person’s successors or assigns, any right to any benefits hereunder, and no such party shall be entitled to sue any
Party to this Agreement with respect thereto. The representations and warranties contained in this Agreement are made for purposes
of this Agreement only and shall not be construed to confer any additional rights on the Parties under applicable state and federal
securities Laws.

 

8.12         Submission
to Jurisdiction. Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this
Agreement shall be brought against any of the Parties in the courts of the State of Missouri, County of St. Louis, or, if it has
or can acquire jurisdiction, the United States District Court for the Eastern District of Missouri and each of the Parties consents
to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection
to venue laid therein. Process in any action of proceeding referred to in the preceding sentence may be served on any Party anywhere
in the world. 

 

8.13         Waiver
of Jury Trial.     EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY
WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES
AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS
AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY
HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS IN THIS SECTION 8.13.

 

    	18

    	 

    

  

8.14         Disclosure
Schedules. The sections of the Disclosure Schedules shall be arranged in separate parts corresponding to the numbered and
lettered sections, and the disclosure in any numbered or lettered part shall be deemed to relate to and to qualify only the particular
representation or warranty set forth in the corresponding numbered or lettered section, and not any other representation or warranty
(unless an express and specific reference to any other Disclosure Schedule which clearly identifies the particular item being
referred is set forth therein).

 

8.15         Headings;
Interpretation. The article and section headings contained in this Agreement are inserted for convenience only and shall not
affect in any way the meaning or interpretation of this Agreement. Each reference in this Agreement to an Article, Section, Disclosure
Schedule or Exhibit, unless otherwise indicated, shall mean an Article or a Section of this Agreement or a Disclosure Schedule
or Exhibit attached to this Agreement, respectively. Unless the context of this Agreement otherwise requires, (i) words of any
gender include each other gender; (ii) words using the singular or plural number also include the plural or singular number, respectively;
(iii) the terms “hereof,” “herein,” “hereby” and derivative or similar
words refer to this entire Agreement; (iv) the terms “include,” “includes,” “including,”
and derivative or similar words shall be construed to be followed by the phrase “without limitation”; and (v)
references herein to “days” are to consecutive calendar days unless Business Days are specified. All accounting
terms used herein and not expressly defined herein shall have the meanings given to them under generally accepted accounting principles.
All Parties have participated substantially in the negotiation and drafting of this Agreement and agree that no ambiguity herein
should be construed against the draftsman.

 

[Remainder of page
intentionally left blank; signature page follows.]

 

    	19

    	 

    

 

IN WITNESS WHEREOF,
each of the Parties hereto has caused this Agreement to be executed as of the date first above written.

 

	 	AEP RAIL CORP. 
	 	 
	 	By:	/s/
Sung Hwan Cho
	 	Name: Sung Hwan Cho 
	 	Title: Chief Financial Officer & Vice President
	 	 
	 	IRL HOLDING LLC 
	 	 
	 	By:	/s/ Keith
    Cozza
	 	Name: Keith Cozza 
	 	Title: Vice President & Treasurer 
	 	 
	 	AMERICAN RAILCAR LEASING, LLC
	 	 
	 	By:	/s/ Umesh
    Choski
	 	Name: Umesh Choski 
	 	Title: President 
	 	 
	 	For the purposes of Article 7:
	 	 
	 	IEP ENERGY HOLDING LLC
	 	 
	 	By:	/s/ Sung
    Hwan Cho
	 	Name: Sung Hwan Cho 
	 	Title: Chief Financial Officer

 

Signature Page to Contribution
Agreement

 

    	 

    	 

    

 

TABLE OF DISCLOSURE
SCHEDULES AND EXHIBITS

 

	Disclosure Schedule 2.2	Wire Transfer Instructions
	Disclosure Schedule 3.2	Governmental Approvals
	Disclosure Schedule 3.3	NewCo Capitalization
	Disclosure Schedule 4.6	Financial Statements
	Disclosure Schedule 4.9	Title to Assets

 

Exhibit A             Form
of Fifth Amended and Restated Operating Agreement

 

    	 

    	 

    

 

Exhibit A

 

Form of Fifth Amended
and Restated Operating Agreement

 

Please see attached.

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