Document:

Joint Venture Operating Agreement among Caterpillar and Navistar

 Exhibit 10.1 
 EXECUTION VERSION 
 AMENDED AND RESTATED 
 JOINT VENTURE 
 OPERATING AGREEMENT

 by and among 
 CATERPILLAR INC., 
 NAVISTAR, INC. 
 and 
 NC2 GLOBAL LLC 
 Dated as of September 9, 2009 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	PAGE
	  1.	  	GENERAL	  	1
				
		  	1.1	  	Definitions	  	1
				
		  	1.2	  	Effective Date	  	1
				
		  	1.3	  	Formation of the Company	  	2
				
		  	1.4	  	Offices	  	2
				
		  	1.5	  	Term of Existence	  	2
				
		  	1.6	  	Related Agreements	  	2
				
		  	1.7	  	Registered Office/Agent	  	3
			
	  2.	  	BUSINESS	  	4
				
		  	2.1	  	Business Generally	  	4
				
		  	2.2	  	Business Plans	  	4
				
		  	2.3	  	Operations in Core ROW Countries, Legacy Countries, and other Non-Core ROW Countries	  	7
				
		  	2.4	  	Formation of Subsidiaries	  	20
				
		  	2.5	  	Modifications to Structure	  	20
			
	  3.	  	CAPITAL STRUCTURE; FINANCING; DISTRIBUTION POLICY	  	20
				
		  	3.1	  	Initial Contributions; Percentage Interests	  	20
				
		  	3.2	  	Additional Contributions and Funding	  	21
			
	  4.	  	MEMBERS	  	25
				
		  	4.1	  	No Management by Members	  	25
				
		  	4.2	  	Limited Liability	  	25
				
		  	4.3	  	Withdrawal or Resignation	  	25
				
		  	4.4	  	Meetings	  	25
				
		  	4.5	  	Proxies	  	25
				
		  	4.6	  	Action by Members without a Meeting	  	26
				
		  	4.7	  	Waiver of Notice	  	26
				
		  	4.8	  	Actions Requiring Unanimous Member Consent	  	26
				
		  	4.9	  	Other Activities	  	27
				
		  	4.10	  	Deficit Upon Liquidation	  	27
				
		  	4.11	  	Company Property; Membership Interests	  	27

 TABLE OF CONTENTS 
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	  5.	  	BOARD OF REPRESENTATIVES	  	27
				
		  	5.1	  	Board	  	27
				
		  	5.2	  	Chairman	  	27
				
		  	5.3	  	Required Vote	  	28
				
		  	5.4	  	Term and Removal; Resignation of Representatives	  	28
				
		  	5.5	  	Vacancies	  	28
				
		  	5.6	  	Authority of the Representatives	  	28
				
		  	5.7	  	No Reimbursement for Expenses or Compensation	  	28
				
		  	5.8	  	Meetings	  	28
				
		  	5.9	  	Action by Written Consent	  	29
				
		  	5.10	  	Waiver of Notice	  	29
				
		  	5.11	  	Committees	  	29
				
		  	5.12	  	Limitation of Liability of Representatives	  	29
				
		  	5.13	  	Actions Requiring Majority Consent of Board	  	30
				
		  	5.14	  	Indemnification of Representatives, Officers, Employees and Other Agents	  	34
				
		  	5.15	  	Control of Certain Legal Proceedings	  	34
			
	  6.	  	OFFICERS	  	35
				
		  	6.1	  	Qualifications	  	35
				
		  	6.2	  	Nomination and Appointment	  	35
				
		  	6.3	  	President	  	35
				
		  	6.4	  	Chief Financial Officer	  	35
				
		  	6.5	  	Vice Presidents	  	36
				
		  	6.6	  	Secretary	  	36
				
		  	6.7	  	Treasurer	  	36
				
		  	6.8	  	Other Officers	  	36
				
		  	6.9	  	Compensation; Reimbursement of Expenses	  	36
				
		  	6.10	  	General Counsel	  	37
			
	  7.	  	SECONDED PERSONNEL AND EMPLOYEES	  	37
				
		  	7.1	  	Initial Staffing Plan	  	37

  

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		  	7.2	  	Seconded Personnel	  	37
				
		  	7.3	  	Employees	  	37
				
		  	7.4	  	Compensation	  	38
				
		  	7.5	  	Management Positions	  	38
				
		  	7.6	  	Labor and Union Issues	  	38
				
		  	7.7	  	Non-Hire	  	38
			
	  8.	  	PRODUCTS AND SERVICES SOLD BY MEMBERS TO THE COMPANY	  	39
				
		  	8.1	  	Generally	  	39
				
		  	8.2	  	Certain Principles	  	39
			
	  9.	  	JV TRUCK MODELS; MANUFACTURE AND ASSEMBLY OF JV TRUCKS	  	40
				
		  	9.1	  	JV Truck Models	  	40
				
		  	9.2	  	Manufacture of JV Trucks by Navistar	  	41
				
		  	9.3	  	Establishment of JV Truck Assembly Facility	  	41
				
		  	9.4	  	JV Truck Components	  	41
				
		  	9.5	  	Sales of Certain Medium Duty Trucks and Heavy Duty Trucks in North America	  	42
			
	10.	  	JV TRUCK REPLACEMENT PARTS	  	42
				
		  	10.1	  	Generally	  	42
				
		  	10.2	  	Organization and Management	  	45
				
		  	10.3	  	Purchase and Distribution of JV Truck Replacement Parts	  	46
				
		  	10.4	  	Remanufacturing Services	  	48
				
		  	10.5	  	Allocation of JV Truck Replacement Parts Sold by the Company	  	49
				
		  	10.6	  	Allocation of JV Truck Components and JV Truck Replacement Parts that are Sourced by the Company from a Member	  	49
			
	11.	  	DISTRIBUTION AND SALES; JV DEALERS	  	49
				
		  	11.1	  	Truck Sales	  	49
				
		  	11.2	  	Branding Strategy; Selection of JV Truck Models	  	56
				
		  	11.3	  	Selection of JV Dealers; Agreements with JV Dealers	  	56
				
		  	11.4	  	Marketing, Sales, and Dealer Support and Administrative Services	  	59
				
		  	11.5	  	Product Support Responsibilities	  	59
				
		  	11.6	  	Financing	  	60

  

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	12.	  	SERVICE	  	60
				
		  	12.1	  	Certification as Service Providers	  	60
				
		  	12.2	  	Training of JV Dealers	  	61
				
		  	12.3	  	Service Campaigns and Guidelines for Repair	  	61
				
		  	12.4	  	Service Publications and Technical Information	  	61
			
	13.	  	WARRANTY	  	61
				
		  	13.1	  	Generally	  	61
				
		  	13.2	  	Sales by the Members to the Company	  	61
				
		  	13.3	  	Legacy Warranties	  	62
				
		  	13.4	  	Goodwill Policy	  	62
				
		  	13.5	  	Warranty Administration	  	63
				
		  	13.6	  	Extended Warranty or Service Coverage	  	64
			
	14.	  	INTELLECTUAL PROPERTY RIGHTS	  	64
				
		  	14.1	  	Members’ Intellectual Property Licenses	  	64
				
		  	14.2	  	Members’ Background Intellectual Property	  	64
				
		  	14.3	  	Company Intellectual Property	  	64
				
		  	14.4	  	R&D; Development	  	65
				
		  	14.5	  	Third Party Infringement Claims	  	65
				
		  	14.6	  	Post-Termination Ownership of Certain Intellectual Property	  	65
			
	15.	  	NON-COMPETITION COVENANTS	  	66
				
		  	15.1	  	Business	  	66
				
		  	15.2	  	Contracts Restricting the Company	  	67
				
		  	15.3	  	Certain Exceptions to Non-Competition Covenants	  	67
				
		  	15.4	  	Acquisition of Publicly-Traded Securities	  	73
				
		  	15.5	  	Member Acquisition	  	73
				
		  	15.6	  	Additional Agreements	  	75
			
	16.	  	INDEMNIFICATION FOR DEALER LIABILITY	  	75
				
		  	16.1	  	Dealer Liability Indemnities	  	75
				
		  	16.2	  	Indemnification Procedures	  	75
				
		  	16.3	  	Liability Insurance	  	76

  

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	17.	  	REPRESENTATIONS AND WARRANTIES	  	76
				
		  	17.1	  	Representations and Warranties of Members	  	76
				
		  	17.2	  	Survival of Warranties	  	78
			
	18.	  	CAPITAL ACCOUNTS; DISTRIBUTIONS; TAX MATTERS; RECORDS	  	78
				
		  	18.1	  	Capital Account Maintenance	  	78
				
		  	18.2	  	Capital Account Balances	  	78
				
		  	18.3	  	Allocation of Profits and Losses	  	79
				
		  	18.4	  	Distributions	  	79
				
		  	18.5	  	Regulatory Allocations	  	80
				
		  	18.6	  	Section 704(c) of the Code; Other Tax Allocation Rules	  	82
				
		  	18.7	  	Allocation of Nonrecourse Liabilities	  	82
				
		  	18.8	  	Partnership Treatment	  	83
				
		  	18.9	  	Tax Return	  	83
				
		  	18.10	  	Tax Matters Partner; Tax Elections	  	83
				
		  	18.11	  	Accounting Records	  	84
				
		  	18.12	  	Reports	  	84
				
		  	18.13	  	Other Tax Information	  	85
				
		  	18.14	  	Sarbanes-Oxley Act; Internal Controls	  	85
				
		  	18.15	  	Tax Decisions by the Members	  	85
			
	19.	  	TRANSFER OF MEMBERSHIP INTERESTS	  	85
				
		  	19.1	  	Restriction on Transfers	  	85
				
		  	19.2	  	Permitted Transfers to Subsidiaries	  	88
				
		  	19.3	  	Absolute Prohibitions on Transfers	  	88
			
	20.	  	DISPUTES AND DEADLOCKS	  	88
			
	21.	  	TERM; TERMINATION; DISTRIBUTIONS ON TERMINATION	  	89
				
		  	21.1	  	Term	  	89
				
		  	21.2	  	Termination	  	89
				
		  	21.3	  	Dissolution and Liquidation	  	91
				
		  	21.4	  	Proceeds in Liquidation	  	91
				
		  	21.5	  	Distribution of Assets on Dissolution of the Company	  	92

  

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		  	21.6	  	Buy-Out Interest Option and Buy/Sell Option	  	94
				
		  	21.7	  	Post-Termination Commercial Arrangements	  	99
				
		  	21.8	  	Additional Rights	  	106
			
	22.	  	CONFIDENTIALITY; PUBLIC ANNOUNCEMENTS	  	106
				
		  	22.1	  	Treatment of Confidential Information	  	106
				
		  	22.2	  	Permitted Disclosures	  	106
				
		  	22.3	  	Disclosure Pursuant to Applicable Law	  	106
				
		  	22.4	  	Survival of Confidentiality Obligations	  	106
				
		  	22.5	  	Non-Disclosure of Agreement; Publicity	  	107
				
		  	22.6	  	No License	  	107
			
	23.	  	MISCELLANEOUS	  	107
				
		  	23.1	  	Disclaimer	  	107
				
		  	23.2	  	Limitation of Damages	  	107
				
		  	23.3	  	Expenses	  	107
				
		  	23.4	  	Force Majeure	  	107
				
		  	23.5	  	Survival	  	108
				
		  	23.6	  	Further Actions and Assurances	  	108
				
		  	23.7	  	Good Faith Reliance on Terms of Agreement	  	108
				
		  	23.8	  	Counterparts	  	108
				
		  	23.9	  	Entire Agreement	  	108
				
		  	23.10	  	Succession and Assignment	  	108
				
		  	23.11	  	Amendments and Waiver	  	108
				
		  	23.12	  	Applicable Law	  	109
				
		  	23.13	  	Venue	  	109
				
		  	23.14	  	WAIVER OF JURY TRIAL	  	109
				
		  	23.15	  	Specific Performance	  	109
				
		  	23.16	  	Determination of Fair Market Value	  	109
				
		  	23.17	  	Remedies Cumulative	  	110
				
		  	23.18	  	Severability	  	110
				
		  	23.19	  	No Third Party Beneficiaries	  	110

  

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		  	23.20	  	Construction	  	110
				
		  	23.21	  	Headings	  	111
				
		  	23.22	  	Notices	  	111
				
		  	23.23	  	Partition	  	112
				
		  	23.24	  	Incorporation of Exhibits	  	112
			
	24.	  	DEFINITIONS	  	112

  

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 EXHIBITS 
  

			
	Exhibit A	  	Certificate of Formation
	Exhibit B	  	Navistar Legacy Profit Amount Calculation and Indexing Methodology

 SCHEDULES 
  

			
	Schedule 2.3.5	  	Legacy Countries
	Schedule 3.1.2	  	Percentage Interest of each Member
	Schedule 15.3.3.2	  	Existing Arrangements for Sales of Engine Parts

  

 viii 

 AMENDED AND RESTATED JOINT VENTURE OPERATING AGREEMENT 
 This Amended and Restated Joint Venture Operating Agreement (this “Agreement”) is entered into as of
September 9, 2009 (the “Effective Date”), by and among Caterpillar Inc., a corporation incorporated under the laws of the State of Delaware and having its principal place of business at 100 N.E. Adams Street, Peoria,
Illinois 61629 (“Caterpillar”), Navistar, Inc., a corporation incorporated under the laws of the State of Delaware and having its principal place of business at 4201 Winfield Road, Warrenville, Illinois 60555
(“Navistar”) (each of Caterpillar and Navistar, a “Member” and collectively the “Members”), NC2 Global LLC, a limited liability company organized under the laws of the State of Delaware and having its principal place of business
at 27501 Bella Vista Parkway, Warrenville, Illinois 60555 (the “Company”) (each of Caterpillar, Navistar, and the Company, a “Party” and collectively the “Parties”). 
 RECITALS 
 WHEREAS, on April 3,
2009, Caterpillar and Navistar entered into a Truck Business Relationship Agreement (together with the exhibits thereto, the “Truck Business Relationship Agreement”), pursuant to which, among other things, Caterpillar and Navistar
agreed to form a joint venture company to conduct the Business; 
 WHEREAS, pursuant to the Truck Business Relationship Agreement, on
July 24, 2009, Caterpillar and Navistar caused there to be filed a Certificate of Formation with the Secretary of State of the State of Delaware to form the Company as a Delaware limited liability company under and pursuant to the Act, and
Caterpillar and Navistar were the sole members of the Company at the time of its formation; 
 WHEREAS, the Company is currently governed by
that certain Limited Liability Company Operating Agreement of the Company, dated July 24, 2009 (the “Initial Operating Agreement”), by and among the Company and the Members; and 
 WHEREAS, pursuant to the authority under Section 10.1 of the Initial Operating Agreement and the Truck Business Relationship Agreement, the Parties
desire to enter into this Agreement for the purpose of amending and restating the Initial Operating Agreement, setting forth the respective rights, powers and interests of the Members with respect to the Company and providing for the operation of
the Company from and after the Effective Date. 
 NOW, THEREFORE, in consideration of the foregoing and the respective representations,
warranties, covenants and agreements set forth herein, and intending to be legally bound hereby, the Parties hereby agree as follows: 
 1. GENERAL

 1.1 Definitions. Unless otherwise defined herein, capitalized terms used in this Agreement are defined in Section 24. 
 1.2 Effective Date. The provisions of this Agreement shall take effect on the Effective Date. 

 1.3 Formation of the Company. On July 24, 2009, Caterpillar and Navistar caused the
Company to be formed under the laws of the State of Delaware as a limited liability company named NC2 Global LLC. All business of the Company shall be conducted under that name or any fictitious name selected by the Board from time to time upon Majority Consent; provided, that any such name reflects the
Company’s status as a limited liability company and is otherwise permitted by applicable law. A copy of the Certificate of Formation of the Company is attached as Exhibit A. 
 1.4 Offices. From and after the Effective Date, the principal office of the Company shall be located at 27501 Bella Vista Parkway, Warrenville, Illinois 60555 or any other location or locations approved by the
Board from time to time upon Majority Consent. The Company shall qualify to do business or register as a foreign limited liability company in each jurisdiction in which the Board deems such qualification or registration to be necessary. 

1.5 Term of Existence. The term of the existence of the Company shall be as provided in Section 21. 
 1.6 Related Agreements. Each Party, as applicable, has executed and delivered, as of the Effective Date, or has agreed upon the final form of, the agreements or
documents set forth in this Section 1.6 (collectively, the “Related Agreements”) to which it is or shall be a party. Each Related Agreement that is not executed and delivered on the Effective Date shall be executed and
delivered by the parties thereto, in the form thereof heretofore agreed to by the Parties, at such time as is provided for under the terms of this Agreement. 
  

	 	1.6.1	(i) a Master Component Supply Agreement between the Company (on the one hand) and Caterpillar or Navistar (on the other hand), in each case, whereby the Company agrees to purchase
and such Member agrees to sell the JV Truck Components, JV Truck Replacement Parts and other products described therein; (ii) a Master Component Supply Agreement between Navistar and Caterpillar, whereby Navistar agrees to purchase and
Caterpillar agrees to sell the JV Truck Components, JV Truck Replacement Parts and other products described therein; (iii) a Master Component Supply Agreement between the Company (on the one hand) and Caterpillar or Navistar (on the other
hand), in each case, whereby the Company agrees to sell and such Member agrees to purchase the replacement parts described therein; and (iv) a Master Component Supply Agreement between the Company (on the one hand) and Caterpillar and Navistar
(on the other hand), in each case, whereby the Company agrees to sell and such Member agrees to purchase the components, replacement parts and other products described therein (each such agreement, a “Master Component Supply
Agreement”); 

  

	 	1.6.2	the Master Terms for Purchased Services between the Company (on the one hand) and Caterpillar or Navistar (on the other hand), in each case, whereby such Member agrees to provide
certain services to the Company (each such agreement, a “Master Terms for Purchased Services”); 

  

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	 	1.6.3	an Intellectual Property License Agreement between the Company (on the one hand) and Navistar or Caterpillar or any of their Affiliates (on the other hand), in each case, whereby
such Member agrees to license the Intellectual Property described therein to the Company (each such agreement, an “Intellectual Property License Agreement”); 

  

	 	1.6.4	a Trademark License Agreement between the Company (on the one hand) and Navistar or Caterpillar (on the other hand), in each case, whereby such Member agrees to license the
trademarks described therein to the Company (each such agreement, a “Trademark License Agreement”); 

  

	 	1.6.5	an Intellectual Property License Agreement between the Company or one of its direct or indirect wholly owned subsidiaries (on the one hand) and Navistar or Caterpillar or any of
their Affiliates (on the other hand), in each case, whereby the Company or such subsidiary grants such Member a royalty-bearing license to utilize the Intellectual Property described therein (each such agreement, a “Royalty-Bearing IP
License Agreement”); 

  

	 	1.6.6	a Master Development Services Agreement between the Company (on the one hand) and Navistar or Caterpillar (on the other hand), in each case, whereby such Member agrees to perform
development work that is funded in its entirety by the Company (each such agreement, a “Master Development Services Agreement”); 

  

	 	1.6.7	a Truck Sales Agreement between Navistar and the Company setting forth terms and conditions of the production and sale of JV Trucks by Navistar to the Company (the “Truck
Sales Agreement”); 

  

	 	1.6.8	an Employee Secondment Agreement between the Company (on the one hand) and Caterpillar or Navistar (on the other hand), in each case, whereby such Member agrees to second certain
employees to the Company (each such agreement, an “Employee Secondment Agreement”); 

  

	 	1.6.9	an Intercompany Promissory Note between the Company (on the one hand) and Caterpillar or Navistar (on the other hand), in each case, setting forth terms and conditions of any
intercompany loans by such Member to the Company (each such agreement, an “Intercompany Promissory Note”); and 

  

	 	1.6.10	a Sharing Agreement between Caterpillar and Navistar (the “Sharing Agreement”). 

 1.7 Registered Office/Agent. The registered office of the Company in the State of Delaware is located at 1209 Orange Street, New Castle County, Wilmington, Delaware 19801. The registered agent of the Company
for service of process at such address is The Corporation Trust Company. The registered office and registered agent of the Company may be changed by the Board at any time in accordance with the Act upon Majority Consent. 
  

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 2. BUSINESS 
 2.1
Business Generally. Subject to the terms and conditions of this Agreement, the scope of the business of the Company shall be (a) developing, designing, testing, manufacturing, assembly, branding, marketing, selling (including providing
purchase financing to customers), and distributing and providing product support for (including providing JV Truck Replacement Parts and service for) JV Trucks, in each case for all market segments (including Governmental COE Customers and
Governmental Conventional Customers as set forth in Section 11.1.3; provided, however, that the scope of the business shall not include the sale of vehicles (including military vehicles, tactical vehicles, COTS vehicles
with military features, COTS vehicles and related parts, and Mine Resistant Ambush Protected vehicles) to military customers (including sales through sales and resale agents, procurement agents, prime contractors, and subcontractors where such sales
are for use exclusively by military customers), (b) all things incidental thereto or connected therewith to the extent permitted under the Act and not in conflict with the terms of this Agreement (the activities described in clauses
(a) and (b), collectively, the “Business”), and (c) to the extent approved by the Board upon Majority Consent such other business that a limited liability company organized in Delaware may lawfully conduct and
that is not otherwise in conflict with the terms of this Agreement. Except as set forth in Sections 2.3.7, 2.3.8 and 10.1.12 of this Agreement or as approved by the Board upon Majority Consent, the Company shall sell JV Trucks
and JV Truck Replacement Parts solely in the ROW. It is the intent of each of the Parties that the Business be conducted in accordance with the timetables and schedules set forth in this Agreement (including the Annual Business Plans and the Rolling
Business Plans of the Company, as such plans are described in Section 2.2). The Company shall conduct the Business in full compliance with all applicable laws, Caterpillar’s Worldwide Code of Conduct, Navistar’s Code of Conduct
and the terms and conditions of this Agreement and the Related Agreements. For purposes of the preceding sentence, if there is any inconsistency between Caterpillar’s Worldwide Code of Conduct and Navistar’s Code of Conduct, the Board
shall resolve such discrepancy. 
 2.2 Business Plans. 
  

	 	2.2.1	 Annual Business Plan. The Parties have heretofore agreed to the initial Annual Business Plan (covering the period from the Effective Date through and until
October 31, 2010) (as may be modified, amended or supplemented by the Members in accordance with this Agreement, the “Initial Annual Business Plan”). The Parties agree and acknowledge that although the Initial Annual
Business Plan covers the remaining portion of the 2009 Fiscal Year and the 2010 Fiscal Year, all subsequent Annual Business Plans shall cover one (1) full Fiscal Year. Not later than sixty (60) calendar days prior to the end of each Fiscal
Year (other than the 2009 Fiscal Year), the President shall cause to be prepared and shall present to the Board a business plan (the “Annual Business Plan”) for the succeeding Fiscal Year. Each Annual Business Plan (including both
the Initial Annual Business Plan and each subsequent Annual Business Plan) shall contain, inter alia, (a) pro forma financial statements (projected profit and loss, balance sheet, and changes in financial position) for the succeeding Fiscal
Year, (b) projected expenditures (expense and capital) for the succeeding Fiscal Year, (c) financing plans, cash requirements, loan commitments (each, an “Annual Business Plan Loan Commitment”) and Capital Contribution
commitments (each, an “Annual 

  

 4 

	 	 
Business Plan Capital Contribution Commitment”) for the succeeding Fiscal Year, (d) projected distributions for the succeeding Fiscal
Year, (e) the amount of money to be spent by the Company on research and development and Intellectual Property development activities for the succeeding Fiscal Year, (f) decision rules regarding the timing and allocation of resources of
Navistar or the Company, as applicable (in the case of Navistar, subject to Section 9.2.2), for the manufacture or assembly by Navistar or the Company, as applicable, of (i) Caterpillar Truck Models and (ii) Navistar Truck
Models, which shall be consistent with achieving the timelines and milestones set forth in such Annual Business Plan, and (g) such other relevant reports and topics as are set forth in the Initial Annual Business Plan. The Members shall be
obligated to fund the Annual Business Plan Loan Commitments and the Annual Business Plan Capital Contribution Commitments in proportion to their respective Percentage Interests at the time such loan or Capital Contribution is required to be funded
by such Annual Business Plan, except to the extent the Board determines by Majority Consent that such Annual Business Plan Loan Commitments or Annual Business Plan Capital Contribution Commitments shall be funded in a different proportion. Other
than with regard to the Initial Annual Business Plan, each Annual Business Plan shall be subject to the approval of the Board upon Majority Consent. If Caterpillar, Navistar and their respective Representatives, as applicable, fail to mutually agree
upon and adopt an Annual Business Plan for the Company and a Rolling Business Plan for the Company prior to the first day of the Fiscal Year to be covered by such plans, the Company shall continue operating under this Agreement under that portion of
the Rolling Business Plan most recently approved by the Board upon Majority Consent that relates to such Fiscal Year (and such portion of the Rolling Business Plan most recently approved by the Board shall be deemed to be the Annual Business Plan
for such Fiscal Year). Any approved Annual Business Plan shall not be changed, except upon Majority Consent of the Board. The President shall analyze any variance between the actual and planned performance under the Annual Business Plan, and report
to the Board the results of such analysis, promptly after the end of each fiscal quarter. 

  

	 	2.2.2	 Five-Year Business Plan. Concurrently with the preparation of the Annual Business Plan for each Fiscal Year, the President shall cause to be prepared and
shall present to the Board a five (5) year rolling business plan (the “Rolling Business Plan”) of which the first year shall be the Annual Business Plan for such Fiscal Year. Each Rolling Business Plan shall contain, inter
alia, (a) pro forma financial statements (projected profit and loss, balance sheet, and changes in financial position) for the succeeding five (5) Fiscal Year period, (b) projected expenditures (expense and capital) for the succeeding
five (5) Fiscal Year period, (c) financing plans, cash requirements, loan commitments and Capital Contribution commitments for the succeeding five (5) Fiscal Year period, (d) projected distributions for the succeeding five
(5) Fiscal Year period, (e) the amount of money to be spent by the Company on research and development and Intellectual Property development activities 

  

 5 

	 	 
for each Fiscal Year in the succeeding five (5) Fiscal Year period, and (f) such other relevant reports and topics as are set forth in the initial
Rolling Business Plan (as may be modified, amended or supplemented by the Members in accordance with this Agreement, the “Initial Rolling Business Plan”). The Members shall be obligated to fund (i) (A) the loan commitments
scheduled to occur during the first thirty-six (36) months in the Initial Rolling Business Plan and (B) the loan commitments scheduled to occur during the first three (3) Fiscal Years in each other Rolling Business Plan approved by
Majority Consent of the Board (each such loan, a “Three-Year Business Plan Loan Commitment”) and (ii) (A) the Capital Contribution commitments scheduled to occur during the first thirty-six (36) months in the Initial
Rolling Business Plan and (B) the Capital Contribution commitments scheduled to occur during the first three (3) Fiscal Years in each other Rolling Business Plan approved by Majority Consent of the Board (each such Capital Contribution, a
“Three-Year Business Plan Capital Contribution Commitment”), in the case of each of clauses (i) and (ii), in proportion to their respective Percentage Interests at the time such loan or Capital Contribution is
required to be funded by such Rolling Business Plan, except to the extent the Board determines by Majority Consent such Three-Year Business Plan Loan Commitments or Three-Year Business Plan Capital Contribution Commitments shall be funded in a
different proportion. Other than with regard to the Initial Rolling Business Plan adopted by the Parties concurrent with the execution of this Agreement, each Rolling Business Plan shall be subject to the approval of the Board upon Majority Consent.
If the Board fails to adopt a new Rolling Business Plan upon Majority Consent prior to the first day of the five (5) Fiscal Year period to be covered by such Rolling Business Plan, the Company shall continue operating under the Rolling Business
Plan most recently approved by the Board upon Majority Consent (i.e., the existing Rolling Business Plan shall continue as a four (4) year rolling business plan, with the first year being deemed (but not for purposes of determining whether a
Company Deadlock exists with respect to Section 5.13.1 or for purposes of Section 21.2.5(a)) to be the Annual Business Plan, and so forth for subsequent years), it being understood that only the funding amounts for the first
thirty-six (36) months of a Rolling Business Plan will be binding on the Members. Any approved Rolling Business Plan shall not be changed, except upon Majority Consent of the Board. The Parties have heretofore agreed to the Initial Rolling
Business Plan (covering the period from the Effective Date until October 31, 2013). The Parties agree and acknowledge that although the Initial Rolling Business Plan covers both the remaining portion of the 2009 Fiscal Year and the
succeeding four (4) Fiscal Year period ending on October 31, 2013, all subsequent Rolling Business Plans shall cover five (5) full Fiscal Year periods. For the avoidance of doubt, the Members shall be obligated to fund the loan
commitments and the Capital Contribution commitments set forth in the Initial Rolling Business Plan for the period from the Effective Date through the date that is thirty-six (36) months after the Effective Date. 

 

 6 

	 	2.2.3	Efforts to Adopt Annual Business Plan and Rolling Business Plan. Each of Caterpillar and Navistar shall cause its respective Representatives to, subject to the second and
third sentences of Section 5.12, meet and seek in good faith to adopt, prior to the commencement of each Fiscal Year, an Annual Business Plan for such Fiscal Year and a Rolling Business Plan of which the first year shall be the Annual
Business Plan, as provided in Section 2.2.2. 

 2.3 Operations in Core ROW Countries, Legacy Countries, and other Non-Core ROW
Countries. 
  

	 	2.3.1	Commencement of Operations; Required Governmental Filings and Consents. Notwithstanding anything to the contrary in this Agreement, the Company shall not commence sales or
other operations in any ROW country unless and until all notices, reports, applications, and other filings required to be made prior to the commencement of such operations by the Company in such ROW country with, and all consents, registrations,
approvals, permits, clearances and authorizations required to be obtained prior to the commencement of such operations by the Company from, any governmental authority having jurisdiction in such ROW country in connection with the transactions and
other matters contemplated by this Agreement and the Related Agreements shall have been made or obtained (as the case may be). 

  

	 	2.3.2	Branding Strategy; JV Truck Models; JV Dealer Selection. As noted in greater particularity in this Section 2.3, and subject to the terms of
Sections 2.3.5 and 2.3.6, the Company shall not commence the sale of JV Trucks or JV Truck Replacement Parts in any ROW country unless the Board has approved, by Majority Consent, (a) the Company’s branding strategy with
respect to such ROW country, (b) a list of those particular Navistar Truck Models (if any) and Caterpillar Truck Models (if any) to be sold by the Company in such ROW country (together with an introduction date for each such model) and
(c) the selection of the JV Dealer(s) with respect to such ROW country. 

  

	 	2.3.3	Core ROW Countries. 

  

	 	2.3.3.1	 Notwithstanding anything in this Agreement to the contrary, the Members agree and acknowledge that between the Effective Date and the Core ROW Country Launch Date
Navistar shall be entitled to sell Medium Duty Trucks, Heavy Duty Trucks, and replacement parts therefor in the Core ROW Countries pursuant to Section 15.3.8.5 and all profits and losses arising from such business operations from the
Effective Date through the Core ROW Country Launch Date shall remain with and be for the account of Navistar. Accordingly, following the Effective Date, the Company shall concentrate on preparing to sell JV Trucks and JV Truck Replacement Parts in
Russia, Australia (including sales of replacement parts to Nationwide Hire in Australia solely for use 

  

 7 

	 	 
in Medium Duty Trucks and Heavy Duty Trucks sold by Navistar to Nationwide Hire prior to the Core ROW Country Launch Date), and, subject to
Section 2.3.3.3, South Africa beginning on the Core ROW Country Launch Date. 

  

	 	2.3.3.2	Immediately following the Core ROW Country Launch Date, (i) the Company shall begin to conduct the Business in the Core ROW Countries, except as provided in
Section 2.3.3.3 and Sections 15.3.8.6 through 15.3.8.9, and (ii) the Company shall begin to sell replacement parts to Nationwide Hire in Australia solely for use in Medium Duty Trucks and Heavy Duty Trucks sold by
Navistar to Nationwide Hire prior to the Core ROW Country Launch Date. 

  

	 	2.3.3.3	The Company shall not commence the sale of any JV Trucks or JV Truck Replacement Parts in South Africa until the closing of the transactions contemplated by that certain Stock
Purchase Agreement by and among the Company, International of Mexico Holding Corporation, Caterpillar and Navistar, dated as of the Effective Date (the “NITSA Acquisition Agreement”). In the event the NITSA Acquisition Agreement is
terminated for any reason, the Company shall, and Navistar shall cause Navistar International Trucks South Africa (Proprietary) Limited (“NITSA”) to, as soon as reasonably practicable thereafter, negotiate and seek to enter into a
mutually-acceptable asset purchase agreement between NITSA and a newly-formed, wholly-owned direct or indirect subsidiary of the Company to purchase the agreed NITSA assets (the “NITSA Asset Acquisition Alternative”), for a purchase
price equal to (i) such assets’ book value, less the amount of the aggregate profit, if any, earned by NITSA from the conduct of its business during the period from the signing of such asset purchase agreement until the closing of the
NITSA Asset Acquisition Alternative, or, alternatively, (ii) such assets’ book value, plus the amount of the aggregate loss, if any, incurred by NITSA from the conduct of its business during the period from the signing of such asset
purchase agreement until the closing of the NITSA Asset Acquisition Alternative. Until the closing of the NITSA Asset Acquisition Alternative, NITSA will continue to conduct the Business in South Africa pursuant to Section 15.3.8.6 and,
subject to the purchase price provision in the immediately preceding sentence, all profits and losses arising from such business operations shall remain with and be for the account of NITSA and shall not be transferred to the Company. The Company
shall not commence the sale of any JV Trucks or JV Truck Replacement Parts in South Africa until the date (the “NITSA Business Acquisition Date”) that is the earlier of (a) closing of the transactions contemplated by the NITSA
Acquisition Agreement and (b) the closing of the NITSA Asset Acquisition Alternative. 

  

 8 

	 	2.3.3.4	The Company shall not commence the sale of any JV Trucks or JV Truck Replacement Parts in Brazil, Turkey or China (other than sales in Turkey or China similar to those conducted by
Navistar prior to the Core ROW Country Launch Date) until the Board has finalized and adopted, by Majority Consent, (a) the Company’s branding strategy with respect to such Core ROW Country, (b) a list of those particular Navistar
Truck Models (if any) and Caterpillar Truck Models (if any) to be sold by the Company in such Core ROW Country (together with an introduction date for each such model), and (c) the selection of the JV Dealer(s) with respect to such Core ROW
Country. The Members and the Representatives shall meet and seek in good faith to, in cooperation with the President and other management personnel of the Company, as soon as practicable after the Effective Date and before the Core ROW Country
Launch Date, agree upon updated, more detailed versions of the Initial Annual Business Plan and the Initial Rolling Business Plan incorporating the items described in the immediately preceding sentence with respect to Brazil, Turkey and China, which
versions shall supersede and replace the Initial Annual Business Plan and the Initial Rolling Business Plan in the forms agreed to by the Members on the Effective Date. Notwithstanding the foregoing, (i) the Company shall operate in accordance
with the Initial Annual Business Plan and the Initial Rolling Business Plan, and (ii) the Members shall be obligated to fund the Capital Contribution Commitments and Loan Commitments set forth in the Initial Annual Business Plan and in the
Initial Rolling Business Plan for the period from the Effective Date through the date that is thirty-six (36) months after the Effective Date unless and until such commitments are superseded and replaced by more detailed versions of such plans.

  

	 	2.3.3.5	Within six (6) months following the NITSA Business Acquisition Date, the Company shall, or it shall cause one of its direct or indirect wholly owned subsidiaries to, purchase
from Navistar and its Affiliates pursuant to the applicable Master Component Supply Agreement all new and unused inventory owned by Navistar or its Affiliates and then held for use in connection with NITSA’s business at (i) International
Industria Automotiva da America do Sul Ltd. (IIAA), up to a maximum aggregate book value of $4,500,000 U.S. Dollars, or (ii) Rollins Moving and Storage, Inc., with a principal place of business at 1900 E. Leffel Lane, Springfield, OH 45505, or
its subcontractors, up to a maximum aggregate book value of $1,200,000 U.S. Dollars, but in both cases, excluding any inventory that is in excess of NITSA’s twelve (12) month demand forecast (excluding all-time buys or runs) or that is
Obsolete, damaged or defective. 

  

 9 

	 	2.3.4	China. Without limiting the generality of Section 2.3.3, the Members and the Representatives shall meet and seek in good faith to, in cooperation with the
President and other management personnel of the Company, as soon as practicable after the Effective Date, prepare and agree upon a business plan for the Company for the development, manufacture, sale, and distribution of Medium Duty Trucks, Heavy
Duty Trucks, and replacement parts therefor in China and the export of such products from China to other ROW countries (the “China Business Plan”) that (a) is based on reasonable assumptions and thorough, reliable market
research, (b) identifies a Chinese truck manufacturer with which the Company shall seek to cooperate in executing such business plan, (c) contains, inter alia, (i) pro forma financial statements (projected profit and loss, balance
sheet, and changes in financial position) for the succeeding five (5) Fiscal Year period and (ii) projected expenditures (expense and capital) for the succeeding five (5) Fiscal Year period, and (d) can reasonably be expected to
yield an internal rate of return for the Company that is mutually agreeable to each of the Members in its sole discretion. Once the China Business Plan is adopted by the Board by Majority Consent, the Members and the Representatives will meet and
seek in good faith to, in cooperation with the President and other management personnel of the Company, incorporate and expand upon such plan in the next Annual Business Plan and Rolling Business Plan of the Company (such that the next Annual
Business Plan and Rolling Business Plan of the Company contain Capital Contribution Commitments and Loan Commitments pertaining to the Company’s contemplated operations in China). 

  

	 	2.3.5	 Legacy Countries. Notwithstanding anything to the contrary in this Agreement, following the Effective Date Navistar shall be entitled to continue to sell
Medium Duty Trucks, Heavy Duty Trucks, and replacement parts therefor in each Legacy Country consistent with past practice prior to the Effective Date (but subject to Navistar’s export parts policy to be implemented on October 1, 2009);
provided, however, that Navistar shall cease all such sales in each Legacy Country, and the Company shall commence sales of JV Trucks and JV Truck Replacement Parts in such Legacy Country, upon the earlier to occur of the following
dates (such date, the “Legacy Country Commencement Date”): (a) the second (2nd) anniversary of the Core ROW Country Launch Date, and (b) such date as determined by the Board by Majority Consent. For the avoidance of doubt, if, on or before the Legacy Country Commencement Date with
respect to any Legacy Country, the Board has not yet adopted by Majority Consent a version of that portion of the Initial Rolling Business Plan pertaining to such Legacy Country (including the Company’s branding strategy for such Legacy
Country, a list of those particular Navistar Truck Models (if any) and Caterpillar Truck Models (if any) to be sold by the Company in such Legacy Country (together with an introduction date for each such model), and the selection of the JV Dealer(s)

  

 10 

	 	 
with respect to such Legacy Country) that is more detailed than as set forth in the Initial Rolling Business Plan, the Company shall adhere to the plan set
forth in the Initial Rolling Business Plan. Notwithstanding the foregoing or any other provision of this Agreement (including Section 11.3), if, on or before the Legacy Country Commencement Date with respect to any Legacy Country, the
Board has not yet selected, by Majority Consent, the JV Dealer(s) for such Legacy Country, the Company shall seek to enter into JV Dealer sales and service agreements with the existing Navistar dealers in such Legacy Country to sell in such Legacy
Country all JV Trucks and JV Truck Replacement Parts sold by Navistar in such Legacy Country immediately prior to the Legacy Country Commencement Date until such selection is made. From and after the Legacy Country Commencement Date, neither
Navistar nor its 5% Affiliates (excluding the Mahindra JV) shall sell any Medium Duty Trucks, Heavy Duty Trucks or replacement parts therefor in such Legacy Country; provided, however, that until such time as the Rolling Business Plan
adopted by the Board provides for the sale of JV Trucks and JV Truck Replacement Parts in such Legacy Country, the Company shall be required to sell to the former Navistar dealers in such Legacy Country, Medium Duty Trucks, Heavy Duty Trucks, and
replacement parts therefor consistent with past practice prior to the Legacy Country Commencement Date. 

  

	 	2.3.5.1	 The Members have agreed to an aggregate baseline amount of profits for the Legacy Countries equal to $37,437,000, which amount shall be indexed in accordance with
the procedures and methodologies set forth in Part I of Exhibit B for each Fiscal Year (or portion thereof) occurring during the period from the Core ROW Country Launch Date to (and including) the fifth (5th) anniversary of the Core ROW Country Launch Date (such amount, as indexed, the “Baseline Legacy Profit
Amount”). 

  

	 	2.3.5.2	 For the Legacy Countries, during the period from the Core ROW Country Launch Date to (but not including) the Legacy Country Commencement Date with respect to each
such Legacy Country, the Company shall provide Navistar with Marketing Services in support of sales by Navistar of Medium Duty Trucks, Heavy Duty Trucks, and replacement parts therefor in such Legacy Country. In exchange for such Marketing Services,
with respect to each Fiscal Year (or portion thereof) occurring during the period from the Core ROW Country Launch Date to (but not including) the earlier of (x) the second (2nd) anniversary of the Core ROW Country Launch Date, and (y) the date on which the Company has commenced sales of JV Trucks
and JV Truck Replacement Parts in all of the Legacy Countries, if the Company Legacy Profit Amount is more than zero (i.e., a Company profit), and 

  

 11 

	 	2.3.5.2.1	if the Navistar Legacy Profit Amount exceeds the Baseline Legacy Profit Amount, the Company shall be entitled to receive from Navistar a payment of cash equal to the amount by which
the Navistar Legacy Profit Amount exceeds the Baseline Legacy Profit Amount; 

  

	 	2.3.5.2.2	if the Navistar Legacy Profit Amount is lower than the Baseline Legacy Profit Amount, but the sum of the Navistar Legacy Profit Amount plus the Company Legacy Profit Amount
exceeds the Baseline Legacy Profit Amount, then Navistar shall be entitled to receive from the Company distributions in an amount equal to the difference between (x) the Baseline Legacy Profit Amount, minus (y) the Navistar Legacy
Profit Amount; 

  

	 	2.3.5.2.3	if the sum of the Navistar Legacy Profit Amount plus the Company Legacy Profit Amount is equal to or lower than the Baseline Legacy Profit Amount, then Navistar shall be
entitled to receive from the Company distributions in an amount equal to the Company Legacy Profit Amount; or 

  

	 	2.3.5.2.4	notwithstanding the foregoing, if the Navistar Legacy Profit Amount is less than zero (i.e., a Navistar loss), then only this Section 2.3.5.2.4 shall apply, and Navistar
shall be entitled to receive from the Company distributions in an amount equal to the Company Legacy Profit Amount but not to exceed the Baseline Legacy Profit Amount. 

  

	 	2.3.5.3	 With respect to each Fiscal Year (or portion thereof) occurring during the period from the Core ROW Country Launch Date to (but not including) the earlier of
(x) the second (2nd) anniversary of the Core ROW Country Launch Date, and
(y) the date on which the Company has commenced sales of JV Trucks and JV Truck Replacement Parts in all of the Legacy Countries, if the Company Legacy Profit Amount is less than zero (i.e., a Company loss), and 

  

	 	2.3.5.3.1	 if the sum of the Navistar Legacy Profit Amount plus the Company Legacy Profit Amount exceeds the Baseline Legacy Profit Amount, then the Company shall be
entitled to receive from Navistar a payment of cash equal to (x) the amount by which the Navistar Legacy Profit Amount plus the 

  

 12 

	 	 
Company Legacy Profit Amount exceeds the Baseline Legacy Profit Amount, plus (y) the amount by which the Company Legacy Profit Amount is less
than zero (i.e., the amount of the Company loss); or 

  

	 	2.3.5.3.2	if the sum of the Navistar Legacy Profit Amount plus the Company Legacy Profit Amount is equal to or lower than the Baseline Legacy Profit Amount, then the Company shall be
entitled to receive from Navistar a payment of cash equal to the amount by which the Company Legacy Profit Amount is less than zero (i.e., the amount of the Company loss). 

  

	 	2.3.5.4	 With respect to each Fiscal Year (or portion thereof) occurring during the period from the earlier of (x) the second (2nd) anniversary of the Core ROW Country Launch Date, and (y) the date on which the Company has commenced sales
of JV Trucks and JV Truck Replacement Parts in all of the Legacy Countries to (but not including) the tenth (10th) anniversary of the Core ROW Country Launch Date, if the Company Legacy Profit Amount 

  

	 	2.3.5.4.1	is equal to or less than the Baseline Legacy Profit Amount, then (subject to Sections 2.3.5.6 and 2.3.5.7) Navistar shall be entitled to receive from the Company
distributions in an amount equal to the Company Legacy Profit Amount; 

  

	 	2.3.5.4.2	exceeds the Baseline Legacy Profit Amount, then (subject to Sections 2.3.5.6 and 2.3.5.7) Navistar shall be entitled to receive from the Company distributions in an
amount equal to the Baseline Legacy Profit Amount, and the Company shall retain all profits in excess of the Baseline Legacy Profit Amount; or 

  

	 	2.3.5.4.3	is less than zero, then such loss shall be borne by the Company. 

  

	 	2.3.5.5	 For purposes of Sections 2.3.5.2, 2.3.5.3 and 2.3.5.4, with respect to each Fiscal Year (or portion thereof) occurring during the period from the Core ROW
Country Launch Date to (but not including) the tenth (10th) anniversary of the
Core ROW Country Launch Date, the Members shall determine, in accordance with the procedures and methodologies set forth in Part III of Exhibit B, (a) no later than thirty (30) calendar days following the issuance of 

  

 13 

	 	 
unaudited financial statements for each fiscal quarter in such Fiscal Year, the actual Navistar Legacy Profit Amount (if any) and the actual Company Legacy
Profit Amount (if any, the “Actual Quarterly Company Legacy Profit Amount”) during such quarter period from sales of JV Trucks and JV Truck Replacement Parts in the Legacy Countries during such quarter period and (b) no later
than ninety (90) calendar days following the end of such Fiscal Year (or portion thereof), the actual Navistar Legacy Profit Amount (if any, the “Actual Annual Navistar Legacy Profit Amount”) and the actual Company Legacy
Profit Amount (if any, the “Actual Annual Company Legacy Profit Amount”) during such Fiscal Year (or portion thereof) from sales of JV Trucks and JV Truck Replacement Parts in the Legacy Countries during such Fiscal Year (or portion
thereof). Subject to Section 2.3.5.6, all distributions and payments required by Sections 2.3.5.2, 2.3.5.3, and 2.3.5.4 shall be made no later than fifteen (15) days from the receipt of an invoice following the
determination of the Actual Annual Navistar Legacy Profit Amount and the Actual Annual Company Legacy Profit Amount. 

  

	 	2.3.5.6	 With respect to each fiscal quarter (other than the last fiscal quarter) in each Fiscal Year (or portion thereof) occurring during the period from the earlier of
(x) the second (2nd) anniversary of the Core ROW Country Launch Date, and
(y) the date on which the Company has commenced sales of JV Trucks and JV Truck Replacement Parts in all of the Legacy Countries to (but not including) the tenth (10th) anniversary of the Core ROW Country Launch Date, if the Actual
Quarterly Company Legacy Profit Amount for such quarter period plus any Actual Quarterly Company Legacy Profit Amounts for prior quarter periods in such Fiscal Year that were not distributed to Navistar pursuant to this
Section 2.3.5.6 (such amount, the “Aggregate Actual Quarterly Company Legacy Profit Amount”) equals or exceeds $10,000,000, then within fifteen (15) days from the Company’s receipt of Navistar’s invoice
following the determination of such Actual Quarterly Company Legacy Profit Amount the Company shall distribute to Navistar the Aggregate Actual Quarterly Company Legacy Profit Amount (any such distribution, a “Quarterly
Distribution”); provided, however, that the amount of such Quarterly Distribution shall be reduced by an amount so that when such Quarterly Distribution is aggregated with any prior Quarterly Distributions to Navistar in such
Fiscal Year such Quarterly Distribution will not result in Navistar receiving from the Company an aggregate amount of Quarterly Distributions in such Fiscal Year in excess of the Baseline Legacy Profit Amount. 

  

 14 

	 	2.3.5.7	For purposes of this paragraph, the amount equal to the Actual Annual Company Legacy Profit Amount less the sum of all Quarterly Distributions to Navistar pursuant to
Section 2.3.5.6 in a Fiscal Year, if any, shall hereinafter be referred to as the “Adjusted Annual Company Legacy Profit Amount”. Notwithstanding anything to the contrary in this Agreement, all annual distributions to
Navistar required by Sections 2.3.5.4 and 2.3.5.5 shall be determined using the Adjusted Annual Company Legacy Profit Amount; provided, however, that if the Adjusted Annual Company Legacy Profit Amount is a negative
number, then the Company shall be entitled to receive from Navistar, and Navistar shall be required to make to the Company no later than fifteen (15) days from Navistar’s receipt of the Company’s invoice following such determination,
a payment of cash equal to the absolute value of the Adjusted Annual Company Legacy Profit Amount. 

  

	 	2.3.6	Non-Core ROW Countries other than Legacy Countries. 

  

	 	2.3.6.1	The Company shall not commence the sale of JV Trucks or JV Truck Replacement Parts in any Non-Core ROW Country other than the Legacy Countries until the Board approves, by Majority
Consent, (a) the Company’s branding strategy with respect to such ROW country, (b) a list of those particular Navistar Truck Models (if any) and Caterpillar Truck Models (if any) to be sold by the Company in such ROW country (together
with an introduction date for each such model), and (c) the selection of the JV Dealer(s) with respect to such ROW country. 

  

	 	2.3.6.2	Notwithstanding Section 2.3.6.1, if the Company has an opportunity to make a one-time sale of JV Trucks or JV Truck Replacement Parts in any ROW country in which the
Company is not otherwise systematically conducting any operations or sales, the Company may make such sale; provided, however, that Majority Consent of the Board shall be required for the Company to make such sale if doing so would
require the incurrence of costs and expenses (other than expenditures to purchase inventory of JV Trucks and JV Truck Replacement Parts) of more than $100,000 and such costs and expenses are not already specifically provided for in an Annual
Business Plan (it being understood that, for purposes of this proviso, the amount of such costs and expenses shall be deemed to include all costs and expenses incurred by the Company with respect to all one-time sales made by the Company in any ROW
country pursuant to this Section 2.3.6.2 during the twelve (12) month period preceding the date on which the Board is presented with the subject one-time sale opportunity); provided, further, however, that, for
the avoidance of doubt, if such sale occurs in a Legacy Country, such sale shall be included in the Company Legacy Profit Amount for the quarterly period in which such sale was made. 

  

 15 

	 	2.3.7	Sales of Medium Duty COE Trucks. 

 2.3.7.1 It is
the intention of the Members that the Company be in the business of developing, designing, testing, manufacturing, assembly, branding, marketing, selling (including providing purchase financing to customers), and distributing and providing product
support for (including providing JV Truck Replacement Parts and service for), Medium Duty COE Trucks throughout the ROW. Each Member will use its good faith efforts to make this a successful segment of the Company’s Business throughout the ROW.
Notwithstanding the foregoing, on or about four (4) years following the Effective Date, Caterpillar will declare its intention, determined in its sole discretion, as to whether Caterpillar desires the Company to remain in or exit the Medium
Duty COE Truck Business in the ROW. If Caterpillar declares that it wants the Company to remain in the Medium Duty COE Truck Business in the ROW, then the Company shall continue in such business. If Caterpillar declares that it wants the Company to
exit the Medium Duty COE Truck Business in the ROW, then the Company’s Medium Duty COE Truck Business shall continue for an additional two (2) years, during which time the Members will (i) continue to explore ways to make the
Company’s Medium Duty COE Truck Business acceptable to both Members, determined in their sole discretion, and (ii) develop and implement strategies to exit such business. Unless the Board agrees otherwise by Majority Consent, upon the
expiration of such two (2) year period, (i) the Company shall cease being in the Medium Duty COE Truck Business in the ROW, (ii) the non-competition and exclusivity provisions of this Agreement, including Sections 9.5,
11.1 and 15.1, shall cease and be of no further force or effect with respect to the Medium Duty COE Truck Business, (iii) Navistar and its Affiliates shall be permitted to sell Navistar-branded Medium Duty COE Trucks through
Navistar-branded JV Dealers, including those Affiliated with Caterpillar dealers (provided that Navistar pays Caterpillar a marketing services fee (not to exceed 3% of dealer net sales) as determined by Caterpillar solely in connection with sales of
Navistar-branded Medium Duty COE Trucks through Navistar-branded JV Dealers Affiliated with Caterpillar dealers), and (iv) the Board by Majority Consent may determine to sell, distribute or dispose of all Company Intellectual Property and other
assets solely to the extent related to the Company’s Medium Duty COE Truck Business. 
 2.3.7.2 Notwithstanding anything in this
Agreement to the contrary, until such time as the Mahindra JV Agreement is amended to permit the Company to market, sell and distribute Medium Duty COE Trucks in regions of the ROW other than COE China, Central America and South America, the Company
shall not be permitted to market, sell or distribute, or provide product support for, Medium Duty COE Trucks anywhere in the world other than COE China, Central America and South America. Prior to commencing sales of Medium Duty COE Trucks in COE
China, Central America or South America, the President shall prepare and present to the Board a separate business case for the sale of such trucks in such territories. The commencement of sales of Medium Duty COE Trucks in COE China, Central America
or South America shall require the Majority Consent of the Board; provided, however, that, notwithstanding anything to the contrary in this Agreement, Navistar may, following notice to and discussion by the Board (but without a
requirement for Board approval), commence developing, designing, testing, manufacturing, assembly, branding, marketing, selling, and 

  

 16 

 
distributing and providing product support for (including providing replacement parts and service for), Navistar-branded (but not Mahindra-branded or
Mahindra JV-branded) Medium Duty COE Trucks for sale solely through Navistar dealers and Navistar-branded JV Dealers that are not Affiliated with Caterpillar dealers in those Legacy Countries listed on Schedule 2.3.5 that are located in
Central America or South America and may continue such activities for the period of time permitted under Section 2.3.5 (provided that such Navistar-branded Medium Duty COE Trucks may not use a cab developed or designed by JAC Co. Ltd or
its Affiliates or any other Chinese company that enters into a joint venture or similar relationship with the Company, without prior approval by the Board with Majority Consent). 
 2.3.7.3 Caterpillar shall not be permitted to develop, design, test, manufacture, assemble, brand, market, sell or distribute, or provide product
support for, North American Medium Duty COE Trucks in North America except through the Company. 
 2.3.7.4 Navistar shall be permitted to
engage, for its own account, in developing, designing, testing, servicing, manufacturing, assembly, branding, marketing, selling and distributing, and providing product support for, and managing the replacement parts business relating to, North
American Medium Duty COE Trucks sold in North America (either, at its option, directly or indirectly by contracting with any Person, including the Company, to perform one or more of such activities), it being understood that, irrespective of whether
Navistar performs any or all of such activities directly or indirectly by contracting with another Person, (i) such North American Medium Duty COE Trucks shall not constitute a JV Truck Model, such related replacement parts shall not constitute
JV Truck Replacement Parts and such activities to the extent relating to such North American Medium Duty COE Trucks or related replacement parts shall not be deemed to be included in the Business, and (ii) all revenues, expenses, profits and
losses arising from such North American Medium Duty COE Trucks or related replacement parts sold in North America and the conduct of such activities by Navistar shall be entirely for the account of Navistar (and not for the Company or Caterpillar).
Navistar may, at its option, require the Company to perform some or all of the development, designing, testing, manufacturing, and assembly of such North American Medium Duty COE Trucks pursuant to a development services agreement and a truck sales
agreement (as applicable), in the forms to be agreed to by both Members, which forms shall be substantially similar to the Master Development Services Agreement and the Post-Termination Truck Sales Agreement respectively, as well as a
post-termination North America COE development services agreement and a post-termination North America COE truck sales agreement, and the Parties hereby agree to negotiate in good faith regarding the pricing terms thereof; provided,
however, that the terms of any such development services agreement shall provide that Navistar shall own all rights to any Intellectual Property developed thereunder. 
 2.3.7.5 Neither Member shall sell unique replacement parts for the other Member’s brand of Heavy Duty COE Trucks in North America to any Navistar
or Caterpillar (as applicable) dealer. Navistar shall adopt and implement policies, processes, and systems to (i) monitor, to the extent practicable, the end-user customers to which replacement parts for Navistar-branded North American Medium
Duty COE Trucks are sold, and (ii) encourage Navistar’s dealers to sell such replacement parts to end-user customers for use only in trucks other than Caterpillar-branded Vocational Heavy Duty COE Trucks in North America. If, at any time
during the term of this Agreement, Caterpillar reasonably believes in good faith that 

  

 17 

 
Navistar’s dealers have, in fact, sold such replacement parts to end-user customers for use in Caterpillar-branded Vocational Heavy Duty COE Trucks in
North America, (A) the Members shall cooperate with each other in furtherance of investigating such matter and, subject to applicable law, taking appropriate corrective actions, and (B) in the event that a material amount of such sales
did, in fact, occur, bring such matter to the Board to determine any appropriate remediation action it deems necessary. 
  

	 	2.3.8	Sales of Heavy Duty COE Trucks. 

 2.3.8.1 Subject
to the terms set forth in this Section 2.3.8, Navistar may at anytime require the Company to develop, design, test, manufacture, and assemble Heavy Duty COE Trucks and replacement parts therefor for, and sell to, Navistar for re-sale in
North America. In such event, subject to the terms set forth in this Section 2.3.8, Caterpillar may at anytime thereafter require the Company to develop, design, test, manufacture, and assemble Vocational Heavy Duty COE Trucks and
replacement parts therefor for, and sell to, Caterpillar for re-sale in North America; provided, however, that such Vocational Heavy Duty COE Trucks must be appropriately brand differentiated from the Heavy Duty COE Trucks being sold
by Navistar in North America. Notwithstanding the foregoing, (i) upon Board approval with Majority Consent or (ii) in the event that the market share of Vocational Heavy Duty COE Trucks (but only with respect to the high cab over engine
segment) is equal to or greater than ten percent (10%) of the total market share of Vocational Heavy Duty Trucks in North America (as determined using independent third party market share data), subject to the terms set forth in this
Section 2.3.8, Caterpillar may at anytime thereafter require the Company to develop, design, test, manufacture, and assemble Vocational Heavy Duty COE Trucks and replacement parts therefor for, and sell to, Caterpillar for re-sale in
North America; provided, however, that such Vocational Heavy Duty COE Trucks must be appropriately brand differentiated from any Heavy Duty COE Trucks being sold by Navistar in North America. Notwithstanding anything to the contrary in
this Agreement, Caterpillar and its Affiliates shall not sell any Vocational Heavy Duty COE Truck to military customers (including sales through sales and resale agents, procurement agents, prime contractors, and subcontractors where such sales are
for use exclusively by military customers) anywhere in the world. 
 2.3.8.2 None of Navistar, Caterpillar or any of their 5% Affiliates may
(i) develop or design Heavy Duty COE Trucks for sale in North America except through the Company or (ii) manufacture, assemble, brand, market, sell, distribute, or provide product support for, any Heavy Duty COE Trucks in North America
that were not developed and designed by or through the Company. Such Heavy Duty COE Trucks shall not constitute a JV Truck Model and related replacement parts therefor shall not constitute JV Truck Replacement Parts and such activities to the extent
relating to such Heavy Duty COE Trucks or related replacement parts shall not be deemed to be included in the Business, and (ii) all revenues, expenses, profits and losses arising from such Heavy Duty COE Trucks or related replacement parts
sold in North America and the conduct of such activities by such Member shall be entirely for the account of such Member (and not for the Company or the other Member). 
 2.3.8.3 In addition to the development and designing of such Heavy Duty COE Trucks, such Member may, at its option, require the Company to also perform some or all of the testing, manufacturing, and assembly of such
Heavy Duty COE Trucks pursuant to a 

  

 18 

 
development services agreement and a truck sales agreement (as applicable), in the forms to be agreed to by the Members, which forms shall be substantially
similar to the Master Development Services Agreement and the Post-Termination Truck Sales Agreement, respectively, as well as a post-termination North America COE development services agreement and a post-termination North America COE truck sales
agreement, and shall provide pricing terms of Cost-plus-2.5% (except for development services, which shall be priced at Cost-plus-5%); provided, however, that the terms of any such development services agreement shall provide that such
Member shall own all rights to any Intellectual Property developed thereunder; provided, further, however, that the Company may perform such services for Caterpillar only for Vocational Heavy Duty COE Trucks. If such Member
requires the Company to perform some or all of the testing, manufacturing, and assembly of such Heavy Duty COE Trucks pursuant to this Section 2.3.8, and such activities require the use of any machinery, equipment or tooling that is not
already owned by the Company, then at the option of such Member, (a) the Company shall lease such machinery, equipment and tooling from a third party, and such Member shall reimburse the Company for all costs and expenses incurred in connection
with such lease or (b) such Member shall lease such machinery, equipment and tooling to the Company (at no cost or expense to the Company). 
 2.3.8.4 In the event that the Company desires to sell or distribute a Caterpillar Truck in the ROW that has been developed and designed for Caterpillar in North America, Navistar shall sell such Caterpillar Trucks to the Company for re-sale
in the ROW pursuant to and upon the terms (including price) set forth in the Truck Sales Agreement. 
 2.3.8.5 Notwithstanding any other
provision of this Agreement, without the Majority Consent of the Board, Navistar shall not sell, contribute, license or otherwise provide any Intellectual Property related exclusively to the Global Eagle cab (or any successor cab) to any third party
(including the Mahindra JV) for use in connection with developing, designing, testing, manufacturing, assembly, branding, marketing, selling, or distributing any Medium Duty COE Trucks or Heavy Duty COE Trucks in the ROW. 
 2.3.9 Mahindra JV Royalties. If Navistar or any of its Affiliates is contractually obligated pursuant to the Mahindra JV Agreement and actually
pays the Mahindra JV royalties as a direct result of the sale and distribution by the Company of Medium Duty COE Trucks in the ROW, the Company shall reimburse Navistar on an annual basis (within thirty (30) calendar days following the
Company’s receipt of reasonably satisfactory evidence from Navistar verifying such payment) for fifty-one percent (51%) of such royalties actually paid by Navistar to the Mahindra JV during the prior fiscal year of the Mahindra JV.

 2.3.10 Mahindra JV Replacement Parts. Navistar shall use its commercially reasonable efforts to (i) limit the Mahindra
JV’s sales of replacement parts for Medium Duty Trucks and Heavy Duty Trucks in the ROW to those that are reasonable in relation to the volume of Medium Duty Trucks and Heavy Duty Trucks sold by the Mahindra JV prior to such replacement parts
sales, and (ii) cause the Mahindra JV to adopt and implement policies, processes and systems to (x) monitor, to the extent practicable, the end-user customers to which such replacement parts are sold, and (y) encourage the Mahindra
JV’s dealers to sell such replacement parts to end-user customers for use only in Medium Duty Trucks and Heavy Duty Trucks sold by the Mahindra JV in the ROW. If, at any time during the term of this Agreement, Caterpillar reasonably believes in

  

 19 

 
good faith that the Mahindra JV’s dealers have, in fact, sold such replacement parts to end-user customers for use in trucks other than as permitted
above, (A) the Members shall cooperate with each other, and Navistar shall use its commercially reasonable efforts to cause the Mahindra JV to cooperate with the Members, in furtherance of investigating such matter and, subject to applicable
law, taking appropriate corrective actions, and (B) in the event that a material amount of such sales did, in fact, occur, bring such matter to the Board to determine any appropriate remediation action it deems necessary. 
 2.4 Formation of Subsidiaries. The Parties agree and acknowledge that, under certain circumstances, upon Majority Consent of the Board in accordance with
Section 5.13.25, the Company may cause direct or indirect wholly owned subsidiaries of the Company to be organized under the laws of the United States or any other jurisdiction. For purposes of this Agreement, the business and affairs of
the Company shall be deemed to include the business and affairs of each such subsidiary, and any reference in this Agreement to the Company shall be deemed to include all of its direct and indirect wholly owned subsidiaries (unless the context
explicitly requires a different interpretation). The governing documents of each such subsidiary shall be drafted in such a manner so as to effectively provide that the business and affairs of such subsidiary shall be managed in accordance with the
provisions of this Agreement as if such business and affairs were the business and affairs of the Company. 
 2.5 Modifications to Structure. In
determining the scope of the Business under Section 2.1 and in preparing any Annual Business Plan or any Rolling Business Plan under Section 2.2, each of Caterpillar and Navistar shall cause its respective Representatives to
use their commercially reasonable efforts to adapt the structure and manner in which the Company does business to take into account evolving legal, regulatory, and business considerations affecting the Company or either Member, including changes
that are needed by either Member, so long as the costs of any such change are borne (a) solely by either Member, as applicable (in the case of a benefit to only such Member) or (b) proportionately by both Members (in the case of a benefit
to both Members), and the aggregate economic interests of the Members are not altered as a result of such structure. Without limiting the generality of the foregoing, the Parties shall cooperate in determining whether, in certain circumstances, the
Company should arrange for separate and distinct legal entities to conduct (i) that portion of the Business relating to all or any part of developing, designing, testing, manufacturing, assembly, branding, marketing, selling, and distributing
JV Trucks (on the one hand) and (ii) the provision of product support and other services relating to JV Trucks (on the other hand). 
 3. CAPITAL
STRUCTURE; FINANCING; DISTRIBUTION POLICY 
  

	3.1	Initial Contributions; Percentage Interests. 

  

	 	3.1.1	Each of Caterpillar and Navistar (i) shall be obligated to make a cash Capital Contribution to the Company on September 10, 2009, in an amount equal to one-half of all
Annual Business Plan Capital Contribution Commitments scheduled to occur on such date, and (ii) shall be obligated to make an additional cash Capital Contribution to the Company on the Core ROW Country Launch Date in an amount equal to one-half
of all Annual Business Plan Capital Contribution Commitments scheduled to occur on such date (or such other amount as may be agreed by the Unanimous Consent of the Members). 

  

 20 

	 	3.1.2	Each Member’s percentage interest (the “Percentage Interest”) in the Company, calculated based solely on such Member’s Capital Contribution (excluding any
Capital Contribution made by Navistar pursuant to Section 2.3.5.3), shall initially be the amount set forth opposite such Member’s name on Schedule 3.1.2, as may be amended, modified, or supplemented from time to time pursuant to
the terms of this Agreement with Unanimous Consent of the Members. 

  

	3.2	Additional Contributions and Funding. 

  

	 	3.2.1	No Obligation. Except (a) as set forth in Section 2.2, this Section 3.2, Section 5.13.34, or the Initial Annual Business Plan,
(b) for any Capital Contribution Commitments or Loan Commitments for the period from the Effective Date through the first thirty-six (36) months following the Effective Date, (c) for any Capital Contribution Commitments or Loan
Commitments set forth in any Annual Business Plan, or (d) for any Capital Contribution Commitments or Loan Commitments set forth in any Rolling Business Plan (in the case of each of clauses (c) and (d), as approved by the
Board upon Majority Consent), or as approved by the Board upon Majority Consent, no Member shall be obligated or permitted to make any additional Capital Contribution or to loan any funds to the Company. 

  

	 	3.2.2	Majority Consent; Annual Business Plan. The Board, upon Majority Consent, may require the Members to make a Capital Contribution to the Company or loan funds (pursuant to the
terms of the Intercompany Promissory Note) to the Company on a pro rata basis in accordance with the Percentage Interest of each Member or, as applicable, on some other basis as determined by the Board by Majority Consent. Furthermore, any amount
that is required to be provided to the Company as a Capital Contribution Commitment or Loan Commitment pursuant to an Annual Business Plan or a Rolling Business Plan shall be funded by the Members on a pro rata basis in accordance with the
Percentage Interest of each Member at the time such funding is required by such Annual Business Plan or such Rolling Business Plan, except to the extent the Board determines by Majority Consent such amount shall be funded in a different proportion
(it being understood that such amount shall be funded as a Capital Contribution unless the Board determines by Majority Consent that such amount shall be funded as a loan). 

  

	 	3.2.3	Failure to Fund Approved Capital Contribution Commitment or Loan Commitment. If a Member fails to fund a Capital Contribution Commitment or a Loan Commitment that is required
to be funded by such Member pursuant to this Agreement, then the following provisions of this Section 3.2.3 shall apply: 

  

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 3.2.3.1 with regard to the non-defaulting Member’s Capital Contribution Commitment or Loan
Commitment, no later than the date that is ten (10) calendar days following the date on which such Capital Contribution Commitment or Loan Commitment was required to be funded (the “Required Funding Date”), the non-defaulting
Member shall have the option, exercisable in its sole discretion, to take any of the following actions: 
 3.2.3.1.1 in the
case of a Loan Commitment, requiring the Company to return to such non-defaulting Member the amount of such Loan Commitment that such non-defaulting Member so funded to the Company pursuant to the terms of this Agreement, it being understood that
the amount so returned shall include both the principal amount of the loan and the interest accrued under the terms of applicable Intercompany Promissory Note through the date of payment, and such Intercompany Promissory Note shall be cancelled upon
the receipt of such amount by such non-defaulting Member; 
 3.2.3.1.2 in the case of a Loan Commitment, leaving in the
Company the entire amount of such Loan Commitment already funded to the Company pursuant to the terms of this Agreement (in which case each of the Intercompany Promissory Notes pertaining to such Loan Commitment shall remain in full force and effect
in accordance with their terms); 
 3.2.3.1.3 in the case of a Capital Contribution Commitment, requiring the Company to
return to such non-defaulting Member the entire amount of such Capital Contribution Commitment that it so funded to the Company; and 
 3.2.3.1.4 in the case of a Capital Contribution Commitment, leaving in the Company the entire amount of any portion of such Capital Contribution Commitment already funded to the Company by such non-defaulting Member,
for credit to such non-defaulting Member’s Capital Account, and the Percentage Interests of each Member shall be adjusted in the manner described in Section 3.2.6 based on the Fair Value of the Company as of the Required Funding
Date; and 
 3.2.3.2 with regard to the defaulting Member’s Capital Contribution Commitment or Loan Commitment, at any time following
the date that is ten (10) calendar days following the Required Funding Date, the non-defaulting Member shall have the option, exercisable in its sole discretion, to take one or none of the following actions (it being understood that the
non-defaulting Member shall not be entitled to take any of the following actions if such non-defaulting Member took any of the actions described in Section 3.2.3.1.1 or Section 3.2.3.1.3): 
 3.2.3.2.1 with the consent of the defaulting Member, making a loan (a “Member Loan”) to the defaulting Member (in an
amount equal to the defaulting Member’s Capital Contribution Commitment or Loan Commitment), which such loan shall bear an interest rate of fifteen percent (15%), mature on the two-year anniversary of the Required Funding Date and otherwise
contain terms that are substantially similar to the terms set forth in the Intercompany Promissory Note in order 

  

 22 

 
to enable the defaulting Member to make such required Capital Contribution Commitment or Loan Commitment to the Company, and if the defaulting Member does
not repay such loan in accordance with its terms, at the lending Member’s option, (a) the lending Member shall be entitled to terminate this Agreement in accordance with Section 21.2.4, or (b) such loan shall convert into
a Capital Contribution by the lending Member to the Company, creditable to such lending Member’s Capital Account, and the Percentage Interests of each Member shall be adjusted in the manner described in Section 3.2.6 based on the
Fair Value of the Company as of the maturity date of such Member Loan; and 
 3.2.3.2.2 making directly to the Company, for
credit to such non-defaulting Member’s Capital Account, a Capital Contribution in the amount of such defaulting Member’s required Capital Contribution Commitment or Loan Commitment, and the Percentage Interests of each Member shall be
adjusted in the manner described in Section 3.2.6 based on the Fair Value of the Company as of the time at which such Capital Contribution is made (such contributing Member referred to as the “Contributing Member” and
each such contribution, a “Substitute Contribution”); provided, however, if the non-Contributing Member (the “Non-Contributing Member”) fails to, within two (2) years following the Required
Funding Date pertaining to such Capital Contribution Commitment or Loan Commitment, exercise its option to purchase, pursuant to Section 3.2.5, that portion of the Membership Interest of the Contributing Member pertaining to such
Contributing Member’s Substitute Contribution, then the Contributing Member shall be entitled to terminate this Agreement in accordance with Section 21.2.4. 
 For the avoidance of doubt, a defaulting Member’s failure to fund a Capital Contribution Commitment or a Loan Commitment that is required pursuant to this Agreement shall not, in and of itself, constitute a
Material Breach, and the non-defaulting Member shall not be entitled to terminate this Agreement in accordance with Section 21.2.4 with respect to such failure to fund such particular Capital Contribution Commitment or Loan Commitment;
provided, that the foregoing shall not prohibit the non-defaulting Member from exercising its rights under, as applicable, (i) clause (a) or clause (b) of Section 3.2.3.2.1 above, or (ii) the
proviso in Section 3.2.3.2.2 above. 
  

	 	3.2.4	Funding Methodology. Each Member required under Sections 3.2.2 or 5.13.34, any Annual Business Plan or Rolling Business Plan (in each case as approved by
the Board upon Majority Consent, other than with regard to the Initial Annual Business Plan and the Initial Rolling Business Plan, in each case as of the Effective Date), or otherwise by the Board upon Majority Consent to make a contribution of cash
to the capital of the Company or to loan funds to the Company, as applicable, shall transfer to the Company’s account an amount in cash (by wire transfer of immediately available funds) equal to the Percentage Interest of such Member (or such
other amount determined by Majority Consent of the Board expressed as a percentage), multiplied by the aggregate amount required to be contributed or loaned, as applicable, to the Company on the date specified in the applicable Annual
Business Plan, the Rolling Business Plan, or otherwise by the Board upon Majority Consent. 

  

 23 

	 	3.2.5	Purchase Option. If a Contributing Member makes a Capital Contribution pursuant to Section 3.2.3.2.2, the Non-Contributing Member shall have the right to, at any
time prior to the two-year anniversary of the Required Funding Date associated with such Substitute Contribution, exercisable by giving written notice to the Company and the Contributing Member (the “Exercise Notice”), elect to
purchase that portion of the Contributing Member’s Membership Interest pertaining to such Contributing Member’s Substitute Contribution for the Repurchase Price on the terms and conditions set forth in this Section 3.2.5 (the
“Purchase Option”). If the Non-Contributing Member does not exercise the Purchase Option within the time period set forth in the preceding sentence and then consummate such Purchase Option in accordance with this
Section 3.2.5, the Contributing Member shall be entitled to terminate this Agreement in accordance with Section 21.2.4. If the Non-Contributing Member exercises the Purchase Option, the Members shall use commercially
reasonable efforts to consummate the closing of the transactions contemplated by such Purchase Option no later than thirty (30) calendar days following the date of delivery of the Exercise Notice, at which such closing the Non-Contributing
Member shall pay to the Contributing Member an amount in cash equal to the Repurchase Price and automatically and without any action on the part of the Members or the Company, the Contributing Member’s Substitute Contribution shall be cancelled
and deleted from such Contributing Member’s Capital Account. 

  

	 	3.2.6	Percentage Interest Adjustment. For purposes of adjusting the Percentage Interest of each Member under Section 3.2.3: 

 3.2.6.1 the defaulting Member shall have a Percentage Interest immediately following such adjustment equal to the percentage determined by dividing
(a) the product of (i) its Percentage Interest immediately prior to such adjustment and (ii) the Fair Value of the Company immediately prior to such adjustment, by (b) the sum of (i) Fair Value of the Company immediately
prior to such adjustment and (ii) the amount of the Capital Contribution made by the non-defaulting Member at the time of such adjustment; and 
 3.2.6.2 the non-defaulting Member shall have a Percentage Interest equal to one hundred percent (100%) less the amount determined in Section 3.2.6.1. 
 Upon the consummation of an exercise of the Purchase Option pursuant to Section 3.2.5, if applicable, the defaulting Member’s Percentage
Interest shall be adjusted to reflect such purchase, and the non-defaulting Member’s Percentage Interest shall be adjusted to reflect the deletion of the Substitute Contribution from the non-defaulting Member’s Capital Account as provided
in Section 3.2.5. 
  

 24 

 4. MEMBERS 
 4.1 No
Management by Members. Except as expressly set forth in the Act or this Agreement, the Members shall not have any vote or take any part in the control or management of the Business or have any authority or power to act for or on behalf of the
Company in any manner whatsoever. 
 4.2 Limited Liability. No Member shall be obligated or liable to the Company, any creditor of the Company, or any
other Person, for any Liabilities or debts of the Company, whether arising in contract, tort, or otherwise, solely by reason of being a Member, except as specifically set forth herein or as otherwise agreed to in writing by such Member. Except as
required by law, no Member shall be liable to the Company, any other Member, any creditor of the Company, or any other Person for the repayment of amounts received from the Company. The failure of the Company to observe any formalities or
requirements relating to the exercise of its powers or management of its Business or affairs under this Agreement or the Act shall not be grounds for imposing personal liability on the Members or the Representatives for Liabilities or debts of the
Company, whether arising in contract, tort, or otherwise, solely by reason of being a Member or Representative. 
 4.3 Withdrawal or Resignation.
Except as provided in Section 19 or 21, no Member shall have the right to withdraw or resign as a Member. No Member shall take any voluntary action that would result in dissolution of the Company pursuant to the Act. 

4.4 Meetings. Regular meetings of the Members may be held without notice at such time and at such place as shall from time to time be determined by the Members
by Unanimous Consent. The Company may, but shall not be required to, hold an annual meeting of the Members. The President or any Representative, unless otherwise prescribed by law, may call special meetings of the Members for any purpose. Unless
otherwise determined by the Members by Unanimous Consent, all meetings of the Members shall be held at the Company’s principal place of business. Members may participate in any regular or special meeting of the Members by means of conference
telephone or similar communications equipment pursuant to which all Persons participating in the meeting can hear each other or by any other means permitted by the Act, and such participation shall constitute presence in person at such meeting.
Except as provided herein, written notice stating the place, day, and hour of a special meeting of the Members and the purpose or purposes for which the meeting is called shall be delivered not less than ten (10) or more than sixty
(60) calendar days before the date of a special meeting to each Member, subject to such shorter notice as an emergency situation shall reasonably dictate. No actions other than those specified in the notice may be considered at a special
meeting of the Members unless such consideration is approved by Unanimous Consent of the Members. Notwithstanding anything to the contrary in this Agreement, if all of the Members shall meet at any time and place and determine by Unanimous Consent
to hold a meeting at such time and place, such meeting shall be valid without call or notice, and at such meeting any lawful action may be taken. Accurate minutes of any meeting of the Members shall be taken and filed with the minute books or other
records of the Company. Promptly thereafter, the Secretary shall provide a copy of such minutes to the Members. 
 4.5 Proxies. At all meetings of the
Members, a Member may vote in person or by proxy executed in writing by the Member or by a duly authorized attorney-in-fact. Such proxy shall be filed with the Secretary of the Company before or at the time of the meeting. 
  

 25 

 4.6 Action by Members without a Meeting. Any action required or permitted to be taken at a meeting of the Members
may be taken without a meeting if the action is authorized or approved by a written consent describing the action taken, signed by all Members, and delivered to the Company for inclusion in the minute books or for filing with the Company records. A
written consent may be delivered by fax or other electronic means and there shall be no requirement for maintaining original executed counterparts in the minute books or other records of the Company. Any such action by written consent shall be sent
to each Member within five (5) calendar days after the consent is executed and filed in the minute books or with the Company records. 
 4.7 Waiver
of Notice. When any notice of a meeting of the Members is required to be given to any Member, a waiver thereof in writing signed by or on behalf of the Member entitled to such notice, whether before, at, or after such meeting, or such
Member’s presence at such meeting, shall be equivalent to the giving of such notice. 
 4.8 Actions Requiring Unanimous Member Consent.
Notwithstanding anything to the contrary in this Agreement, no decisions or actions involving the Company as enumerated below shall be made or taken, as applicable, without Unanimous Consent of the Members: 
  

	 	4.8.1	except as otherwise set forth in this Agreement, (a) the sale or issuance to any Person (including any Member or its Affiliates) of any equity interests in the Company or
options to purchase equity interests in the Company (or any other securities, options, warrants, debentures, or other rights to acquire, or that are convertible into, equity interests in the Company), or (b) the adjustment of the Percentage
Interests held by the Members; 

  

	 	4.8.2	except as provided in Section 19.2, the admittance of new Members; 

  

	 	4.8.3	the place and time of Member meetings held without notice; 

  

	 	4.8.4	except as provided in Section 21, the voluntary liquidation, dissolution, or winding up of the Company or the initiation of any bankruptcy proceedings involving the
Company; 

  

	 	4.8.5	any merger, consolidation, or conversion of the Company with or into any other Person, or, except as provided in Section 21, the Transfer (by lease, assignment, sale, or
otherwise), or proposal to Transfer, all or substantially all of the Company’s assets in a single transaction or through a series of related transactions; 

  

	 	4.8.6	any change in the size of the Board; 

  

	 	4.8.7	any amendment of this Agreement or the Certificate of Formation of the Company attached as Exhibit A; 

  

	 	4.8.8	any action by the Company to modify, amend, terminate, or replace, or grant any waiver under, any of the Related Agreements; 

  

 26 

	 	4.8.9	the registration of any securities of the Company with the U.S. Securities and Exchange Commission or the listing of any securities of the Company on any stock exchange or
over-the-counter market; 

  

	 	4.8.10	any action by the Members taken without a meeting of the Members; 

  

	 	4.8.11	the extension of the term of this Agreement pursuant to Section 21.1; 

  

	 	4.8.12	any other decision of the Company set forth in this Agreement expressly requiring Unanimous Consent of the Members; and 

  

	 	4.8.13	the agreement or commitment to do any of the foregoing. 

 4.9 Other
Activities. Subject to Section 15, each Member and its Affiliates may engage in or possess an interest in all business ventures of every nature and description, independently or with others, even if such activities compete directly
with the business of the other Member and its Affiliates, and neither the Company nor the other Member shall have any rights by virtue of this Agreement in and to such independent ventures or the income or profits derived from them. 
 4.10 Deficit Upon Liquidation. Upon liquidation as provided in Section 21, none of the Members shall be liable to the Company for any deficit in its
Capital Account, nor shall such deficits be deemed assets of the Company. 
 4.11 Company Property; Membership Interests. All property owned by the
Company, whether real or personal, tangible or intangible, and wherever located, shall be deemed to be owned by the Company and no Member, individually, shall have any ownership of such property. The Membership Interests shall constitute personal
property. 
 5. BOARD OF REPRESENTATIVES 
 5.1
Board. Except as otherwise set forth in this Agreement, the Business and affairs of the Company shall be managed by or under the exclusive direction of the Board. The Board shall consist of eight (8) Representatives, four (4) of
whom shall be appointed by Caterpillar (which appointees shall not be an officer or employee of the Company or an employee of Caterpillar or one of its Affiliates who is seconded to the Company), and four (4) of whom shall be appointed by
Navistar (which appointees shall not be an officer or employee of the Company or an employee of Navistar or one of its Affiliates who is seconded to the Company). Each Representative shall be authorized to act on behalf of the Member appointing such
Representative for all purposes of this Agreement, and all actions taken by such Representative shall be binding on such Member. Caterpillar’s initial appointees shall be George Harold Taylor, Jr., Douglas Ray Oberhelman, Bradley L. Halverson
and Gary Albert Stroup. Navistar’s initial appointees shall be Dee Kapur, Philip Christman, Matthew Foulston and Eric Tech. Each of the Representatives shall be authorized to appoint a proxy to participate for him or her on all actions of the
Board. Any such proxy shall be filed with the Secretary at or prior to the meeting at which any action is taken pursuant to such proxy. 
 5.2
Chairman. The initial chairman of the Board shall serve from the Effective Date through (but not including) the one (1) year anniversary of the Core ROW Country Launch Date. Each 

  

 27 

 
subsequent chairman of the Board shall serve a twelve (12) month term. The initial chairman of the Board shall be Douglas Ray Oberhelman. The next
chairman of the Board shall be, in Navistar’s discretion, one of the four (4) Representatives appointed by Navistar with respect to such period. Caterpillar and Navistar shall thereafter rotate each twelve (12) month term in
determining which of its respective four (4) Representatives shall serve as chairman of the Board. The role of the chairman is to chair the meetings of the Board. 
 5.3 Required Vote. The affirmative vote of a majority of all of the Representatives comprising the Board (and not, for the avoidance of doubt, a majority only of the Representatives in attendance at a
particular Board meeting) shall be the act of the Board, unless the vote of a greater proportion of the Representatives comprising the Board is otherwise required by this Agreement or the Act. 
 5.4 Term and Removal; Resignation of Representatives. 
  

	 	5.4.1	Term and Removal. Representatives shall serve in such capacity until their death, disability, resignation, or removal. The Member appointing a Representative shall at any
time be entitled to remove and replace such Representative, with or without cause. The Member replacing such Representative shall promptly deliver a copy of the notice of such removal and replacement to such Representative, the Board and the other
Member. Removal shall be effective upon receipt of the written notice of such removal by each of such Representative, the Board and the other Member. 

  

	 	5.4.2	Resignation. Any Representative may resign at any time by giving written notice to the Board and each Member. The resignation of any Representative shall take effect upon
receipt of such notice by the Board and each Member or at such later time as shall be specified in the notice. 

 5.5 Vacancies. If a
vacancy occurs as a result of the death, disability, resignation, or removal of a Representative, the Member appointing such Representative shall promptly, and in any event no later than the next regularly scheduled meeting, appoint a replacement
Representative. 
 5.6 Authority of the Representatives. Unless authorized to do so by this Agreement or by the Board in accordance with the
provisions of this Agreement, no Representative shall have any power or authority to bind the Company in any way, to act as an agent of the Company, to pledge the Company’s credit, or to render the Company liable for any purpose. 
 5.7 No Reimbursement for Expenses or Compensation. The Representatives shall not be entitled to reimbursement from the Company for costs and expenses incurred in
connection with the management of the Company and in attending Board meetings. Such expenses may be reimbursed by the Member appointing such Representatives, in the sole discretion of such Member. The Representatives shall not receive any
compensation or salaries from the Company for performing their duties. 
 5.8 Meetings. Unless otherwise agreed to by the Board by Majority Consent,
regular meetings of the Board shall be held bi-monthly, and all such meetings shall be held at the Company’s principal place of business or at such other place determined by the Board by 

  

 28 

 
Majority Consent. Representatives may participate in any regular or special meeting of the Board by means of conference telephone or similar communications
equipment pursuant to which all Persons participating in the meeting can hear each other or by any other means permitted by the Act, and such participation shall constitute presence in person at such meeting. Unless otherwise prescribed by law,
special meetings of the Board shall be held whenever called by any Representative. Written notice stating the place, day, and hour of a special meeting and the purpose or purposes for which the meeting is called shall be delivered not less than
forty-eight (48) hours before the time of a special meeting to each Representative, subject to such shorter notice as an emergency situation shall reasonably dictate. No actions other than those specified in the notice may be considered at a
special meeting of the Board unless such consideration is approved by Majority Consent of the Board. Notwithstanding anything to the contrary in this Agreement, if all of the Representatives shall meet at any time and place and determine by Majority
Consent to hold a meeting at such time and place, such meeting shall be valid without call or notice, and at such meeting any lawful action may be taken. Accurate minutes of any meeting of the Board shall be taken and filed with the minute books or
other records of the Company. Promptly thereafter, the Secretary shall provide a copy of such minutes to the Members. 
 5.9 Action by Written
Consent. Any action required or permitted to be taken at a meeting of the Board, or of any committee thereof, may be taken without a meeting if the action is authorized or approved by a written consent describing the action taken, signed by all
of the Representatives comprising the Board, and delivered to the Company for inclusion in the minute books or for filing with the Company records. A written consent may be delivered by fax or other electronic means and there shall be no requirement
for maintaining original executed counterparts in the minute books or other records of the Company. 
 5.10 Waiver of Notice. When any notice of a
meeting of the Board is required to be given to any Representative, a waiver thereof in writing signed by the Representative entitled to such notice, whether before, at, or after such meeting, or such Representative’s presence at such meeting,
shall be equivalent to the giving of such notice. 
 5.11 Committees. By a resolution adopted with Majority Consent of the Board, the Board may
designate such committees as the Board shall determine and shall prescribe the manner in which proceedings of such committees shall be conducted. The provisions of this Agreement with respect to notice and conduct of meetings of the Board shall
govern meetings of committees of the Board. In resolutions adopted with Majority Consent of the Board authorizing any committee, the Board shall specify the authority of any such committee, subject to any limitations imposed by the Act. 

5.12 Limitation of Liability of Representatives. The Liabilities and debts of the Company, whether arising in contract, tort, or otherwise, shall be solely the
Liabilities and debts of the Company, and no Representative shall be obligated personally for any such Liability or debt of the Company solely by reason of being a Representative, except as otherwise required by law. No Representatives shall owe a
fiduciary duty to the Company or to a Member not appointing such Representative, except for the implied contractual covenant of good faith and fair dealing provided for under the Act. Without limiting the generality of the foregoing, except as
otherwise required by the Act or any other applicable law, in taking any action with respect to the 

  

 29 

 
Company (including determining whether to vote in favor of or against a matter requiring Majority Consent of the Board), each Representative is obligated to
consider only the interests of the Member that appointed such Representative to the Board. 
 5.13 Actions Requiring Majority Consent of Board.
Notwithstanding anything to the contrary in this Agreement, no decisions or actions involving the Company enumerated below (other than any such decision that is already provided for in this Agreement or in any Related Agreement) shall be made or
taken, as applicable, without Majority Consent of the Board: 
  

	 	5.13.1	other than with regard to the Initial Annual Business Plan and the Initial Rolling Business Plan, in each case as of the Effective Date, adoption of each Annual Business Plan and
each Rolling Business Plan and all changes thereto, including all changes to the Initial Annual Business Plan and the Initial Rolling Business Plan contemplated by Section 2.3.3; 

  

	 	5.13.2	any change in the policy of the Company relating to distributions to the Members, including any amendment to or modification of Section 18; 

  

	 	5.13.3	the declaration of any distribution to the Members not in accordance with the Company’s policy relating to distributions to the Members or any of the provisions of this
Agreement; 

  

	 	5.13.4	other than with respect to Related Agreements, which are addressed in Section 4.8.8, any transaction or series of related transactions between the Company (on the one
hand) and Caterpillar or Navistar or one of their respective Affiliates (on the other hand) (including the entering into, amendment or modification of any agreement between the Company and Caterpillar, Navistar, or one of their respective
Affiliates); 

  

	 	5.13.5	except as set forth in Section 5.14, any transaction or series of related transactions between the Company (on the one hand) and any Representative or officer or
employee of the Company (on the other hand) (including the entering into, amendment or modification of any agreement between the Company and any Representative or officer or employee of the Company), except, with respect to officers and employees of
the Company, for any employment agreement, employee benefit plan or any other arrangement relating to their employment; 

  

	 	5.13.6	capital expenditures that would result (together with any prior capital expenditures in any Fiscal Year) in the relevant amount set forth in the Annual Business Plan being exceeded
by more than ten percent (10%) of such amount in such Fiscal Year; 

  

	 	5.13.7	any lease of personal property by the Company that would result (together with any prior leases in any Fiscal Year) in the relevant amount set forth in the Annual Business Plan
being exceeded by more than ten percent (10%) of such amount in such Fiscal Year; 

  

 30 

	 	5.13.8	except as set forth in Section 21, any disposition of assets by the Company (including by lease from the Company), other than the sale or lease of JV Trucks and JV Truck
Replacement Parts in the ordinary course of business, that would result (together with any prior dispositions in any Fiscal Year) in the relevant amount set forth in the Annual Business Plan being exceeded by more than ten percent (10%) of such
amount in such Fiscal Year; 

  

	 	5.13.9	any pledge or hypothecation of, or grant of any lien or other encumbrance on, assets of the Company (together with any such prior pledges, hypothecations, liens, or other
encumbrances) for an aggregate consideration in excess of $100,000; 

  

	 	5.13.10	except as set forth in Sections 3.2 and 5.13.34, any arrangement relating to the creation of indebtedness of the Company for borrowed money (other than trade payables
in the ordinary course of business) (a) that (together with any prior indebtedness) would result in the relevant aggregate indebtedness amount set forth in the Annual Business Plan being exceeded, or (b) on terms materially different than
the terms for such indebtedness contemplated by the Annual Business Plan; 

  

	 	5.13.11	any real property leasehold commitment, contract, agreement, or other arrangement involving consideration or the creation of a liability, contingent or otherwise, that (together
with any prior payments of consideration or incurrence of liability in any Fiscal Year under any such commitment, contract, agreement, or other arrangement) would result in the relevant amount set forth in the Annual Business Plan being exceeded by
more than ten percent (10%) of such amount in such Fiscal Year; 

  

	 	5.13.12	except as expressly provided in this Agreement (including Section 14), the entering into of any contract by the Company relating to the licensing or transfer of
ownership of, or granting of rights to, any Intellectual Property of the Company to another Person (other than a direct or indirect wholly owned subsidiary of the Company); 

  

	 	5.13.13	subject to Section 6, the appointment or removal of the President, the CFO, the Secretary, or any other officer designated by the Board (which designation, in any case,
shall be pursuant to Section 6.2); 

  

	 	5.13.14	any guarantee of the payment of any money by or debt of, or the performance of any other obligation of, another Person, in excess of $50,000, individually or in the aggregate;

  

	 	5.13.15	except as set forth in Section 5.15, the waiver, release, or abandonment of any legitimate right or claim against any Person (including any Member or Affiliate thereof)
potentially liable to the Company for an amount in excess of $250,000; 

  

 31 

	 	5.13.16	except as set forth in Section 5.15, the initiation or settlement, or any material decision relating to the prosecution or defense, of any lawsuit, arbitration,
administrative proceeding, or other legal claim involving an amount at issue in excess of $250,000; 

  

	 	5.13.17	the grant of any general power of attorney or other unlimited authority to act on behalf of or in the name of the Company; 

  

	 	5.13.18	the Gross Asset Value of any in-kind contribution made in lieu of cash as consideration for an equity interest in the Company; 

  

	 	5.13.19	the redemption, purchase, or other acquisition of any outstanding equity interest in the Company; 

  

	 	5.13.20	the execution, modification, extension, renewal, or termination of any material contract, lease, or other agreement outside the ordinary course of business of the Company;

  

	 	5.13.21	any material change in the nature or scope of the Business conducted by the Company, including the commencement of any new line of business or the conduct of any business not
contemplated by this Agreement; 

  

	 	5.13.22	the delegation by the Board of any of its powers (provided, that such delegation shall not relieve the Board of its obligations with respect thereto);

  

	 	5.13.23	other than with respect to the consummation of the transactions contemplated by the NITSA Acquisition Agreement, the purchase or other acquisition or the sale or other disposition
of any equity or debt securities of another Person, or the entering into of a joint venture, partnership, or similar arrangement between the Company and another Person; 

  

	 	5.13.24	other than with respect to the NITSA Asset Acquisition Alternative, the purchase or other acquisition of all or substantially all of the assets, or any line of business, of another
Person; 

  

	 	5.13.25	the establishment of any direct or indirect subsidiary of the Company, or the issuance, Transfer, pledge, or encumbrance of any equity or debt securities of any direct or indirect
subsidiary of the Company; 

  

	 	5.13.26	any change in the Company’s name or use of a fictitious name; 

  

	 	5.13.27	the establishment, approval, or material modification of any benefit or incentive plans for employees of the Company; 

  

	 	5.13.28	any decision related to the compensation of any officer set forth in Section 6 who is an employee of the Company (and not an employee of Caterpillar, Navistar, or one of
their Affiliates who is seconded to the Company); 

  

 32 

	 	5.13.29	except as set forth in Section 11.1, the direct sale of JV Trucks by the Company to any Person other than JV Dealers and, to the extent permitted pursuant to
Section 11.1.3, Governmental COE Customers and Governmental Conventional Customers; 

  

	 	5.13.30	any loans or advances made by the Company in excess of $50,000, individually or in the aggregate, including intercompany loans and advances to Caterpillar or Navistar;

  

	 	5.13.31	except as provided in this Agreement, in the Initial Annual Business Plan, in the Initial Rolling Business Plan, or in any subsequent Annual Business Plan or any subsequent Rolling
Business Plan adopted by Majority Consent of the Board, the commencement of the manufacture or assembly of any JV Trucks by the Company and the selection of any location for any JV Truck Assembly Facility; 

  

	 	5.13.32	the establishment or modification of JV Truck product development plans (including the attributes and characteristics of current and potential JV Trucks and the objectives relating
thereto, the timing of the development of such JV Trucks, and the funding and other resources necessary for the development of such JV Trucks); 

  

	 	5.13.33	the establishment or material modification of the terms of the Company’s standard warranties; 

  

	 	5.13.34	any requirement that the Members make loans or additional Capital Contributions to the Company in addition to those Capital Contribution Commitments and Loan Commitments set forth
in the Initial Annual Business Plan, the Initial Rolling Business Plan, or any subsequent Annual Business Plan or any subsequent Rolling Business Plan adopted by Majority Consent of the Board; 

  

	 	5.13.35	the entering into of any futures trading, swap, financial derivative, or other hedging arrangement; 

  

	 	5.13.36	subject to Section 18.12, (a) the selection, change or termination of the Company’s independent auditor, (b) the selection or material change of the
accounting methods, methodologies, practices, procedures, or policies utilized by the Company (except for those changes that are required by any new accounting standards or any regulatory requirements), and (c) the approval of the annual
financial statements for the twelve (12) month period ended at the end of each Fiscal Year and the financial statements for the twelve (12) month period ended each December 31; 

  

	 	5.13.37	any action, decision, or election made by the Members in connection with taxes (including the preparation and filing of the Company’s federal and state income tax returns, or
in directing the actions of the Tax Matters Partner) to the extent the Members do not otherwise agree pursuant to Section 8.2.10 and Article 18; 

  

 33 

	 	5.13.38	the establishment of any account with any bank or other financial institution to hold the funds and securities of the Company; 

  

	 	5.13.39	any other decisions of the Company set forth in this Agreement expressly requiring Majority Consent of the Board; 

  

	 	5.13.40	take any action expressly prohibited to be taken by the Company under the Mahindra Waiver; and 

  

	 	5.13.41	the agreement or commitment to do any of the foregoing. 

 5.14
Indemnification of Representatives, Officers, Employees and Other Agents. The Company shall indemnify and hold harmless the Representatives, officers, employees (including employees of Caterpillar, Navistar, or one of their Affiliates who are
seconded to the Company), and other agents of the Company (each an “Indemnitee”) against any Liabilities arising out of any claim, demand, action, suit, or proceeding related to the performance or non-performance of any act
concerning the Business or the activities of the Company, if (a) such Indemnitee acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company (subject to the provisions of
Section 5.12), (b) such Indemnitee’s action or inaction does not constitute recklessness, and (c) with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful.
The termination of any action, suit, or proceeding by judgment, order, settlement, or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption (i) that such Indemnitee did not act in
good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company, (ii) that such Indemnitee’s action or inaction constitutes recklessness, or (iii) with respect to any
criminal action or proceeding, that such Indemnitee had reasonable cause to believe that his or her conduct was unlawful. Any expenses covered by the foregoing indemnification shall be paid by the Company in advance of the final disposition of such
action, suit, or proceeding; provided, that it appears reasonably likely in the good faith judgment of the Board (as determined by Majority Consent) that such Indemnitee is or shall be entitled to indemnification, and provided further that
such Indemnitee agrees to repay such amounts if it is ultimately determined that he or she is not entitled to be indemnified. 
 5.15 Control of Certain
Legal Proceedings. Notwithstanding anything to the contrary in this Agreement (including Section 5.13.15 and Section 5.13.16), the initiation, prosecution, settlement, and defense of any lawsuit, arbitration,
administrative proceeding, or other legal claim by a Member or any of its Affiliates against or involving the Company or any of its direct or indirect wholly owned subsidiaries or by the Company or any of its direct or indirect wholly owned
subsidiaries against or involving a Member or any of its Affiliates shall be controlled solely by the Representatives appointed to the Board by the other Member. Such Representatives shall have the right, to the exclusion of the other
Representatives, (a) to manage and control any such lawsuit, arbitration, administrative proceeding, or other legal claim, and (b) to direct the officers and employees of the Company with respect to any such lawsuit, arbitration,
administrative proceeding, or other legal claim. 
  

 34 

 6. OFFICERS 
 6.1
Qualifications. Each officer of the Company shall be a natural person. An officer need not be a resident of the State of Delaware. No officer of the Company shall be a Representative. Each of the President and the Chief Financial Officer
(“CFO”) shall dedicate all of his business time and attention to the business and affairs of the Company. 
 6.2 Nomination and
Appointment. The officers of the Company shall consist of a President, a CFO, a Secretary, and such other officers as determined by the Board by Majority Consent. Subject to the selection process set forth in this Section 6.2 with
respect to the President, the CFO, and the Secretary, all officers shall be appointed by the Board by Majority Consent. The initial President, and each subsequent President, shall be nominated by the Representatives appointed by Navistar. The
initial CFO and Secretary, and each subsequent CFO and Secretary, shall be nominated by the Representatives appointed by Caterpillar. Each nominee for President, CFO and Secretary may be (a) an employee of Navistar, Caterpillar, or the Company,
or (b) any other person. The appointment of a nominee to any officer position of the Company (including any nominee for President, CFO or Secretary) shall be subject to the Majority Consent of the Board, it being understood that each
Representative may withhold his approval in his discretion for the appointment of such nominee. Except as otherwise determined by the Board by Majority Consent, each of the President, the CFO and the Secretary shall serve in such office for a term
of three (3) years, or until his or her earlier death, disability, resignation, or, upon the request of the Member nominating such officer, removal by the Board by Majority Consent (it being understood that each Representative may withhold his
approval in his discretion for the removal of such officer). At the end of the three (3) year term of service of each of the President, CFO and Secretary, the Member’s Representatives responsible for selecting the nominee for such office
shall designate as the nominee for such office, in their discretion, either the individual who then holds such office or another individual. If any individual’s term of service as an officer expires prior to the approval of the reinstatement of
such individual to such office or the replacement of such individual with another individual for such office, in each case, by the Board by Majority Consent, all management vested in such office pursuant to this Agreement or otherwise by the Board
shall be vested in the Board until such reinstatement or replacement is approved by the Board by Majority Consent. 
 6.3 President. The President
shall be the chief executive officer of the Company, and, under the direction and subject to the control of the Board, the President in general shall, subject to Section 5, manage the Business and affairs of the Company and shall see
that all orders and resolutions of the Board are carried into effect. 
 6.4 Chief Financial Officer. The CFO shall have the care and custody of all
the funds and securities of the Company. Subject to Section 5 and as may be otherwise limited by the Board, the CFO may endorse checks, drafts, and other instruments for the payment of money for deposit or collection when necessary or
proper and may deposit the same to the credit of the Company in such banks or depositories as the Board may designate from time to time, and the CFO may endorse all financial documents requiring endorsements for or on behalf of the Company. The CFO
may sign all receipts and vouchers for payments made to the Company. The CFO shall render an account of his or her transactions to the Board or President as the Board or President shall require from time to time. The CFO shall enter regularly in the
books to be kept by him or 

  

 35 

 
her for that purpose, a full and adequate account of all monies received and paid by him or her on account of the Company. The CFO shall also perform, under
the direction and subject to the control of the Board and the President, such other duties as may be assigned to him or her from time to time. 
 6.5 Vice
Presidents. Any Vice President nominated and appointed by the Board shall act subject to the direction and control of the President. Subject to Section 5, each Vice President may execute and deliver any deeds, mortgages, bonds,
contracts, or other instruments that the Board or the President has authorized to be executed and delivered, except in cases where the execution and delivery thereof shall be expressly and exclusively delegated to another officer of the Company by
the Board or this Agreement, or where the execution and delivery thereof shall be required by law to be executed and delivered by another Person. In general, each Vice President shall perform all duties as may be prescribed from time to time by the
Board. Each Vice President shall consult with the President in connection with the performance of his or her duties. 
 6.6 Secretary. The Secretary
shall attend all meetings of the Members and of the Board and record correctly the proceedings of such meetings and record all votes in a minute book suitable for such purposes. The Secretary shall give, or cause to be given, notice of all meetings
of the Members and of the Board. The Secretary shall attest with his or her signature all deeds, conveyances, or other instruments requiring the seal of the Company. The Secretary shall keep in safe custody the seal, if any, of the Company. The
Secretary shall also perform, under the direction and subject to the control of the Board, such other duties as may be assigned to him or her from time to time. 
 6.7 Treasurer. Any Treasurer designated and appointed by the Board shall be subject to the direction of the CFO and shall assist the CFO in the performance of his or her duties. At the direction of the CFO or in the event of his or
her absence or disability, the Treasurer shall perform the duties of the CFO. The Treasurer shall have custody of the Company funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the
Company and shall deposit all moneys and other valuable effects in the name and to the credit of the Company in such banks or depositories as may be designated by the CFO or the Board. The Treasurer shall disburse the funds of the Company as may be
ordered by the President, the CFO or the Board, taking proper vouchers for such disbursements, and shall render to the Board at its regular meetings or when the Board so requires, an account of all of the Treasurer’s transactions and of the
financial condition of the Company. The Treasurer shall also perform such other duties as may be assigned to him or her from time to time by the CFO or the Board. 
 6.8 Other Officers. In general, any other officer nominated and appointed by the Board and not otherwise described in Sections 6.3 through 6.7 shall perform all duties as may be prescribed from time to time by the
Board and shall be subject to the direction and control of the President in connection with the performance of his or her duties. 
 6.9 Compensation;
Reimbursement of Expenses. The salaries or other compensation of each officer of the Company who is an employee of the Company (and not an employee of Caterpillar, Navistar, or one of their Affiliates who is seconded to the Company) shall be
fixed 

  

 36 

 
from time to time by the Board, upon Majority Consent, as part of the Annual Business Plan. The officers of the Company shall be entitled to prompt
reimbursement from the Company of all reasonable out-of-pocket expenses incurred in the course of the performance of their duties. 
 6.10 General
Counsel. The initial General Counsel, and each subsequent General Counsel, shall be appointed by the Board by Majority Consent, it being understood that each Representative may withhold his approval in his discretion for any candidate for such
position. The General Counsel may be an employee of Navistar, Caterpillar or the Company. The initial General Counsel, and each subsequent General Counsel, may be removed for cause by the Representatives appointed by either Member, in which case the
Board and the President shall cause the General Counsel to be promptly removed. If the General Counsel is an employee of Navistar or Caterpillar, the Board will establish guidelines with respect to communications with legal counsel (whether outside
or in-house) for the Members. 
 7. SECONDED PERSONNEL AND EMPLOYEES 
 7.1 Initial Staffing Plan. The Company shall be staffed with personnel in accordance with the Initial Staffing Plan agreed to by the Members (the “Initial Staffing Plan”), which sets forth the
name and job title of each salaried or management seconded personnel of the Company. All subsequent staffing plans for the Company (each a “Subsequent Staffing Plan”) shall be incorporated into the Annual Business Plan and the
Rolling Business Plan of the Company and shall include (i) each salaried or management direct employee of the Company, (ii) each salaried or management seconded personnel of the Company, and (iii) the approximate number of hourly
direct employees of the Company. 
 7.2 Seconded Personnel. Caterpillar and Navistar shall second, or cause their respective Affiliates to second, to
the Company such salaried and management personnel in accordance with the Initial Staffing Plan and all Subsequent Staffing Plans and pursuant to the terms of the applicable Employee Secondment Agreement between the Company (on the one hand) and
each of Caterpillar or its Affiliates and Navistar or its Affiliates (on the other hand). All decisions relating to the identification of any Member employee to be seconded to the Company and the significant terms of such secondment arrangement
(including the date on which such employee’s secondment to the Company commences and the duration of such secondment period), to the extent not already set forth in the Initial Staffing Plan or a Subsequent Staffing Plan, or in the applicable
Employee Secondment Agreement, shall be determined by the Board by Majority Consent. 
 7.3 Employees. The Company shall hire such employees in
accordance with a Subsequent Staffing Plan, as may be amended by the Board by Majority Consent. No current employees of either Member shall become direct employees of the Company on the Effective Date. All decisions relating to the hiring and
employment terms of the President or any Company employee who reports directly to the President or whose annual base salary exceeds $150,000, to the extent not set forth in a Subsequent Staffing Plan, shall be determined by the Board by Majority
Consent. The Board, by Majority Consent, shall develop rules and regulations pertaining to its internal affairs and operations and the conduct of employees that shall be compatible with those of Caterpillar and Navistar, and which rules and
regulations shall also 

  

 37 

 
apply to the seconded personnel. From and after the commencement of the secondment period provided for in each Employee Secondment Agreement, if the Company
advertises any job opening that an employee of Caterpillar or Navistar voluntarily applies for and fills, then upon filling such job opening, such employee shall cease being an employee of Caterpillar or Navistar (as applicable) and shall become a
Company employee (it being understood, for the avoidance of doubt, that any employee transfers described in this sentence shall be separate and distinct from the secondment arrangement described in Section 7.2). 
 7.4 Compensation. The Board shall, upon Majority Consent, develop and implement the initial compensation plans applicable to Company employees and the initial
incentive compensation plans applicable to Company employees and Company seconded personnel. All subsequent compensation plans for the Company shall be incorporated into the Annual Business Plan and the Rolling Business Plan of the Company. The
compensation plans and the incentive compensation plans for the Company employees shall be designed to focus Company employees on achieving the business objectives of the Company. The incentive compensation plans for the Company seconded personnel
shall be designed to focus each seconded individual on achieving both the business objectives of such individual’s employer (i.e., Caterpillar or Navistar, as applicable) and the business objectives of the Company. 
 7.5 Management Positions. The Members agree to allocate certain initial Company management positions in accordance with Section 6.2 and the Initial
Staffing Plan. Subject to Section 6.2, for subsequent appointments, the President shall nominate replacements for these positions due to death, disability, resignation, retirement, or termination, without regard to Member alignments,
which nominations shall be subject to the approval of the Board by Majority Consent. 
 7.6 Labor and Union Issues. Caterpillar and Navistar shall
work to minimize the influence of third parties in the Company work force. Neither Caterpillar nor Navistar shall agree to any union agreement provisions that limit the ability of either Member or the Company to operate independently. Caterpillar
and Navistar shall work together to coordinate all communication with unions that are related to the formation of the Company. 
 7.7 Non-Hire.

  

	 	7.7.1	Without the prior written consent of Navistar, neither Caterpillar nor any of its Affiliates shall, directly or indirectly, employ (a) any Navistar employee who is seconded to
the Company pursuant to the applicable Employee Secondment Agreement during the period that such Navistar employee is seconded to the Company, or (b) any Company employee during the period that such individual is a Company employee;
provided that, in the case of each of clauses (a) and (b), neither Caterpillar nor any of its Affiliates shall be precluded from hiring any such individual who (A) initiates discussions regarding such employment, or
(B) responds to any public advertisement, unless the advertisement is undertaken with the intention of violating this Section 7.7.1, placed by Caterpillar or one of its Affiliates. 

  

 38 

	 	7.7.2	Without the prior written consent of Caterpillar, neither Navistar nor any of its Affiliates shall, directly or indirectly, employ (a) any Caterpillar employee who is seconded
to the Company pursuant to the applicable Employee Secondment Agreement during the period that such Caterpillar employee is seconded to the Company, or (b) any Company employee during the period that such individual is a Company employee;
provided that, in the case of each of clauses (a) and (b), neither Navistar nor any of its Affiliates shall be precluded from hiring any such individual who (A) initiates discussions regarding such employment, or
(B) responds to any public advertisement, unless the advertisement is undertaken with the intention of violating this Section 7.7.2, placed by Navistar or one of its Affiliates. 

 8. PRODUCTS AND SERVICES SOLD BY MEMBERS TO THE COMPANY 
 8.1
Generally. Each Member shall provide the Company with certain products and services pursuant to the terms of one or more sales agreements and service agreements. Certain of such agreements are being entered into by the Members and the Company
simultaneously with the execution and delivery of this Agreement pursuant to Section 1.6, and certain of such agreements shall be entered into by the Members and the Company following the Effective Date as and when approved by the Board
by Majority Consent. All such agreements shall follow the general principles set forth in Section 8.2. 
 8.2 Certain Principles.

  

	 	8.2.1	The Company may purchase, in its discretion, completely built JV Trucks and JV Truck Components that are part of knock-down kits for JV Trucks. 

  

	 	8.2.2	Completely built JV Trucks shall be sold by Navistar to the Company pursuant to the Truck Sales Agreement. 

  

	 	8.2.3	JV Truck Components (whether or not part of a knock-down kit) and JV Truck Replacement Parts shall be sold by each Member to the Company pursuant to the applicable Master Component
Supply Agreements, and the Company shall be permitted to source components and parts from any Person, including third parties or the Members. 

  

	 	8.2.4	Costs and expenses associated with kitting a knock-down kit shall be paid for by the Company. 

  

	 	8.2.5	All research and development services and Mark-Up Engineering Services, in each case, relating to product design and product development provided by a Member shall be sold to the
Company at Cost–plus-5%. 

  

	 	8.2.6	 Logistics services to be provided by Caterpillar Logistics Services, Inc. or its subsidiaries (if and to the extent retained by the Company to perform such
services) shall be sold to the Company at prices that are negotiated by Caterpillar Logistics Services, Inc. or its subsidiaries and the Company. If the 

  

 39 

	 	 
Company does not retain Caterpillar Logistics Services, Inc. or its subsidiaries to provide such services, the Company shall be permitted with the Majority
Consent of the Board to retain any other Person, including third parties, to provide logistics services related to Caterpillar Brand JV Truck Replacement Parts or Navistar Brand JV Truck Replacement Parts. 

  

	 	8.2.7	The terms on which Caterpillar Financial shall provide financing services in connection with the Company’s Business, if Caterpillar Financial is retained by the Company to
provide such services, will be negotiated by Caterpillar Financial and the Company. The Company, with the Majority Consent of the Board, may also retain other Persons, including third parties or Navistar or one of its Affiliates, to provide
financing services to or on behalf of the Company or with respect to JV Trucks or JV Truck Replacement Parts. 

  

	 	8.2.8	Any service not described in Sections 8.2.1 through 8.2.7 that is rendered directly by a Member or any of its Affiliates to the Company shall be sold to the Company at
Cost-plus-2.5% to the extent permissible under applicable law. 

  

	 	8.2.9	All services that are purchased by a Member or any of its Affiliates from a third party and then re-sold to the Company shall be so sold to the Company on a pass-through basis
without mark-up. 

  

	 	8.2.10	Each of the principles set forth in this Section 8.2 and any dealings or arrangements between the Members or any of their Affiliates and the Company shall conform to the
transfer pricing rules and guidelines (when applicable) and any other applicable tax law. The Members jointly shall decide whether such dealings and arrangements conform and shall provide recommendations to meet the requirements of such rules and
guidelines. The Parties will use their commercially reasonable efforts to source services and goods in such a manner as to reduce or eliminate intercompany mark-ups for cross border services and goods. 

 9. JV TRUCK MODELS; MANUFACTURE AND ASSEMBLY OF JV TRUCKS 
 9.1 JV
Truck Models. JV Truck Models shall include all of Navistar’s models for Medium Duty Trucks and Heavy Duty Trucks set forth in the Initial Rolling Business Plan. JV Truck Models may also include (a) any and all of Navistar’s
models for Medium Duty Trucks and Heavy Duty Trucks existing as of the Effective Date (irrespective of where in the world such models are sold by Navistar or any of its Affiliates) and, to the extent not included in clause (a), (b) any
model for Medium Duty Trucks or Heavy Duty Trucks developed by Navistar or the Company after the Effective Date, and (c) any truck model sold by Navistar or any of its Affiliates to Caterpillar or any of its Affiliates in the U.S., Canada or
Mexico under the North American Severe Service Truck Sales Agreement, in each of clauses (a), (b) and (c) as approved by the Board by Majority Consent. 
  

 40 

 9.2 Manufacture of JV Trucks by Navistar. 
  

	 	9.2.1	Generally. At any time following the Effective Date, subject to the terms and conditions of this Agreement and the Truck Sales Agreement, Navistar (or, with the Majority
Consent of the Board, any third party) shall manufacture, assemble and sell to the Company, and the Company shall purchase from Navistar (or such third-party manufacturer, if applicable), finished Navistar Truck Models and Caterpillar Truck Models
pursuant to the Truck Sales Agreement or a truck sales agreement with such third-party manufacturer. 

  

	 	9.2.2	Allocation of Production Resources. Navistar’s obligation to supply Navistar Truck Models and Caterpillar Truck Models to the Company under the Truck Sales Agreement
shall be subject to the terms, conditions and allocation methodologies agreed to by the Members. 

  

	 	9.2.3	Company Engine Strategy. The Parties agree to pursue the Company’s engine strategy heretofore agreed to and initialed by the Members. 

 9.3 Establishment of JV Truck Assembly Facility. At any time following the Effective Date, upon the determination of the Board by Majority Consent, the Company
may establish a JV Truck Assembly Facility for the manufacture or assembly of JV Truck Models. The Company, upon the determination of the Board by Majority Consent, may establish a separate direct or indirect wholly owned subsidiary in each country
in which the Company intends to manufacture or assemble JV Trucks. 
 9.4 JV Truck Components. 
  

	 	9.4.1	After any JV Truck Assembly Facility commences the assembly of a JV Truck model (or any JV Truck Component relating thereto), the Company may purchase JV Truck Components directly
from Navistar or Caterpillar pursuant to Master Component Supply Agreements or from any third party. Notwithstanding the foregoing, the Members agree and acknowledge that (a) differences may arise in the pricing, terms, and availability with
respect to direct material purchases by the Company (on the one hand) and the Members (on the other hand) if and when the Company chooses suppliers or JV Truck Components that differ from what is consistent with the Members’ then-current
sourcing strategies, and (b) other factors, including loss of scale, logistics, country duties, and taxes, may impact the pricing, terms, and availability of direct material purchases by the Company. Accordingly, in order to facilitate the
identification of market-competitive opportunities for direct material purchases, the Company shall form a sourcing council (the “Sourcing Council”). The Sourcing Council shall include, at a minimum, one Company executive member and
a representative from each Member’s global purchasing organization, with such three (3) members being the sole voting members. All strategic sourcing decisions, including any decisions to source from a Member’s internal division(s),
must be approved (i) by a unanimous vote of the Sourcing Council, or (ii) in the absence of a unanimous vote of the Sourcing Council on any strategic sourcing decision, by Majority Consent of the Board. 

  

 41 

	 	9.4.2	The Company, upon Majority Consent by the Board, may contract with the Members to provide JV Truck Component purchasing services, which allocation of services between the Members
shall be determined by the Board by Majority Consent. 

  

	 	9.4.3	Notwithstanding Sections 9.4.1 and 9.4.2, unless the Board agrees otherwise by Majority Consent, any JV Truck manufactured or assembled by Navistar or the Company on
or prior to December 31, 2010 and containing an automatic transmission shall be manufactured or assembled to include exclusively automatic transmissions manufactured or assembled by Allison Transmission, Inc. Navistar shall not, without the
Majority Consent of the Board, amend or renew its purchase agreement with Allison Transmission, Inc. in any manner that would restrict any activities of the Company. 

  

	 	9.4.4	Furthermore, as part of the ongoing efforts by Navistar or any of its Affiliates to develop its transmission strategy for vehicles that are not JV Truck Models, Caterpillar will be
given the opportunity and a reasonable period of time to be included among the consideration set of potential suppliers for new transmission business prior to Navistar materially amending or renewing its purchase agreement with Allison Transmission,
Inc., or prior to executing any new transmission purchase agreement between Navistar or any of its Affiliates (on the one hand) and any other Person (on the other hand), in any case, with respect to any trucks or other vehicles to be sold by
Navistar or its Affiliates anywhere in the world. If Caterpillar makes a bona fide offer for such new transmission business, Navistar shall consider, and shall cause its Affiliates to consider and discuss, such offer in good faith, but is not
required to accept or negotiate such offer and is free to amend or renew such purchase agreement with Allison Transmission, Inc. or execute a new transmission purchase agreement with any third party. 

 9.5 Sales of Certain Medium Duty Trucks and Heavy Duty Trucks in North America. Subject to the terms and conditions of this Agreement and the Related Agreements
and except as otherwise provided herein, including Section 15.3, during the period commencing on the Effective Date and ending upon the occurrence of the Triggering Event, neither Member nor its respective 5% Affiliates shall, directly
or indirectly, sell in North America any Medium Duty Trucks or Heavy Duty Trucks, or truck kits (including SKD’s and CKD’s) therefor, to any Person (whether to a dealer, distributor, OEM, end user or other Person) if such Member or its 5%
Affiliate reasonably expects any such truck or kit will be used in the ROW. For purposes of the immediately preceding sentence, the Members agree that any such truck having non-North American specifications shall be presumed to be sold for use in
the ROW. 
 10. JV TRUCK REPLACEMENT PARTS 
 10.1
Generally. The Company shall be accountable for all JV Truck Replacement Parts and shall manage the JV Truck Replacement Parts business according to the following general principles: 
  

	 	10.1.1	Profits from the sales of JV Truck Replacement Parts shall be for the account of the Company; 

  

 42 

	 	10.1.2	The overall goal of the Company shall be to focus and grow the JV Truck Replacement Parts revenue, profitability, and market share; 

  

	 	10.1.3	Pricing for all JV Truck Replacement Parts shall be established by the Company. In determining such pricing, the Company shall (a) consider pricing between similar Caterpillar
Brand parts, Navistar Brand parts, and Common Parts, and (b) seek to encourage JV Dealers to source parts solely from the Company’s intended distribution channels for such parts. Navistar may provide pricing research and recommendations to
the Company as a service pursuant to the Master Terms for Purchased Services. Caterpillar and Navistar may provide engine pricing research and recommendations to the Company as a service pursuant to the Master Terms for Purchased Services;

  

	 	10.1.4	The Caterpillar Brand and Navistar Brand JV Truck Replacement Parts business shall be managed by the Company in a manner consistent with the brand management strategy of Caterpillar
and Navistar, respectively, including new product introduction and support activities; 

  

	 	10.1.5	Caterpillar Brand parts (e.g., Caterpillar filters, belts, batteries, oil, coolant, etc.) shall be used on Caterpillar Truck Models and engines where possible;

  

	 	10.1.6	Navistar Brand parts (e.g., Navistar filters, belts, batteries, oil, coolant, etc.) shall be used on Navistar Truck Models and engines where possible; 

  

	 	10.1.7	Caterpillar, in its sole discretion, shall determine whether All-Makes Parts shall be distributed to JV Dealers that sell Caterpillar Truck Models or Caterpillar Brand JV Truck
Replacement Parts unless such JV Dealer also sells Navistar Truck Models, in which event such determination shall be made by the Board upon Majority Consent; 

  

	 	10.1.8	Navistar, in its sole discretion, shall determine whether All-Makes Parts shall be distributed to JV Dealers that sell only Navistar Truck Models or only Navistar Brand JV Truck
Replacement Parts unless such JV Dealer also sells Caterpillar Truck Models, in which event such determination shall be made by the Board upon Majority Consent; 

  

	 	10.1.9	Except for sales to military customers and certain Governmental Conventional Customers by Navistar and its Affiliates pursuant to the provisions of Section 11.1.3.2 or
otherwise pursuant to the provisions of Section 15.3.4, none of the Company, Caterpillar, Navistar or their respective 5% Affiliates (excluding the Mahindra JV) shall sell Will-Fit Parts for JV Trucks in the ROW (it being understood and
agreed that Navistar will use its commercially reasonable efforts to prevent the Mahindra JV from selling Will-Fit Parts for JV Trucks in the ROW); 

  

 43 

	 	10.1.10	Caterpillar or Navistar, as applicable, shall seek to obtain for the Company or seek to pass on to the Company any supplier incentives or rebates in connection with the
Company’s purchase of JV Truck Components and JV Truck Replacement Parts; 

  

	 	10.1.11	The Company and each Member shall seek to avoid public disclosure of JV Truck Replacement Parts revenues and profits, except as may be required by applicable law or securities
regulatory authorities; and 

  

	 	10.1.12	Replacement Parts and Components Sold by the Company to the Members. 

 10.1.12.1 Pursuant to Master Component Supply Agreement No. 6, Caterpillar shall have the right to purchase all replacement parts from the Company for re-sale by Caterpillar in North America solely for use in
connection with Caterpillar Trucks and Caterpillar-branded Vocational Heavy Duty COE Trucks sold in North America. Navistar shall sell such replacement parts that are produced by Navistar or its direct or indirect wholly owned subsidiaries or that
are sourced by Navistar or its direct or indirect wholly owned subsidiaries from a third party supplier to the Company (for re-sale to Caterpillar) pursuant to the terms (including price) and subject to the conditions set forth in Master Component
Supply Agreement No. 2. Pursuant to Master Component Supply Agreement No. 7, Navistar shall have the right to purchase (i) all JV Truck Replacement Parts (but only to the extent that the Company has used or is using that replacement
part on JV Trucks) and (ii) all replacement parts for North American Medium Duty COE Trucks and Heavy Duty COE Trucks that are manufactured or assembled by the Company for Navistar, in the case of each of clauses (i) and (ii), from the
Company for re-sale by Navistar in North America solely for use in connection with any Navistar Vehicles sold in North America. Caterpillar shall sell such replacement parts that are produced by Caterpillar or its direct or indirect wholly owned
subsidiaries or that are sourced by Caterpillar or its direct or indirect wholly owned subsidiaries from a third party supplier to the Company (for re-sale to Navistar) pursuant to the terms (including price) and subject to the conditions set forth
in Master Component Supply Agreement No. 1. The selling Member under each applicable Master Component Supply Agreement will not unreasonably withhold its agreement to, or attach unreasonable conditions in, the negotiation or execution of any
purchase schedule under any Master Component Supply Agreement. The Members will use good faith efforts to act reasonably in negotiating to enter into each purchase schedule under any Master Component Supply Agreement. 
 10.1.12.2 Pursuant to Master Component Supply Agreement No. 9, Caterpillar shall have the right to purchase from the Company all replacement parts
and components produced by the Company or sourced by the Company from third party suppliers (other than from Navistar), but only to the extent that the Company is using that replacement part or component on JV Trucks. Subject to any other provision
in this Agreement, including Section 15, Caterpillar may purchase (i) components solely for use in connection with Caterpillar components or Caterpillar products (including heavy equipment) sold anywhere in the world, and
(ii) replacement parts solely for use in connection with (A) Caterpillar Trucks and Caterpillar-branded Vocational Heavy Duty COE Trucks sold in North America and (B) Caterpillar products (including heavy equipment) sold anywhere in
the world, in the case of both clauses (A) and (B) above, subject to the applicable purchase schedule under Master Component 

  

 44 

 
Supply Agreement No. 9; provided, however, that the components and replacement parts purchased by Caterpillar under clauses
(i) and (ii) above may not be used in connection with JV Trucks sold in ROW. Pursuant to Master Component Supply Agreement No. 8, Navistar shall have the right to purchase from the Company all replacement parts and
components produced by the Company or sourced by the Company from third party suppliers (other than Caterpillar), but only to the extent that the Company is using that replacement part or component on JV Trucks. Subject to any other provision in
this Agreement, including Section 15, Navistar may purchase (x) components solely for use in connection with the manufacture or assembly by Navistar of Navistar Vehicles, Navistar-branded North American Medium Duty COE Trucks and
Heavy Duty COE Trucks, JV Trucks, Caterpillar Trucks, and Caterpillar-branded Vocational Heavy Duty COE Trucks sold anywhere in the world subject to the applicable purchase schedule under Master Component Supply Agreement No. 8, and
(y) replacement parts solely for use in connection with Navistar Vehicles sold anywhere in the world or Navistar-branded North American Medium Duty COE Trucks or Heavy Duty COE Trucks sold in North America subject to the applicable purchase
schedule under Master Component Supply Agreement No. 8; provided, however, that the components and replacement parts purchased by Navistar under clauses (x) and (y) above may not be used in connection with
JV Trucks sold in ROW. 
 10.1.12.3 The Company shall sell the replacement parts and components described in Sections 10.1.12.1 and
10.1.12.2 above to Caterpillar and Navistar on the terms (including price) and subject to the conditions set forth in the applicable Master Component Supply Agreements. Sales of such replacement parts by the Company to a Member shall be made
only to the extent that the volume of such replacement parts is reasonable in relation to the volume of trucks or other products (as applicable) sold by such Member prior to such replacement parts sales. The Members shall adopt and implement
policies, processes, and systems to (i) monitor, to the extent practicable, the end-user customers to which such replacement parts are sold, (ii) encourage Caterpillar’s dealers to sell such replacement parts to end-user customers for
use only in (x) Caterpillar Trucks and Caterpillar-branded Vocational Heavy Duty COE Trucks sold in North America or (y) Caterpillar components and Caterpillar products (including heavy equipment but excluding JV Trucks sold by the Company
or its direct or indirect subsidiaries in the ROW) sold anywhere in the world, and (iii) encourage Navistar’s dealers to sell such replacement parts to end-user customers for use only in (x) Navistar Vehicles sold anywhere in the
world (excluding JV Trucks sold by the Company or its direct or indirect subsidiaries in the ROW) or (y) Navistar-branded North American Medium Duty COE Trucks or Heavy Duty COE Trucks sold in North America. If, at any time during the term of
this Agreement, a Member reasonably believes in good faith that the other Member’s dealers have, in fact, sold such replacement parts to end-user customers for use in trucks or other products (as applicable) other than as permitted above,
(A) the Members shall cooperate with each other in furtherance of investigating such matter and, subject to applicable law, taking appropriate corrective actions, and (B) in the event that a material amount of such sales did, in fact,
occur, bring such matter to the Board to determine any appropriate remediation action it deems necessary. 
 10.2 Organization and Management. The JV
Truck Replacement Parts business shall be managed by the Company’s Parts and Service Manager, who shall report to the President. The Company’s Parts and Service Manager shall have the following parts and product support responsibilities,
provided, that (a) as applicable, such responsibilities shall be subject to each 

  

 45 

 
Member’s brand requirements, and (b) the Company, with the Majority Consent of the Board, may engage Caterpillar or Navistar to perform any or all
of such responsibilities pursuant to the Master Terms for Purchased Services: (i) establishing service standards, including time allowed for providing parts and product support; (ii) pricing of JV Truck Replacement Parts for JV Dealers;
(iii) developing parts business plans (including profit and loss); (iv) providing forecasted JV Truck Replacement Parts requirements; (v) managing JV Truck Replacement Parts and product support related needs associated with the
introduction of new JV Trucks models; (vi) providing parts stock, service tooling, technical information, suggested parts stocking list, training, and related matters; (vii) acquiring parts distribution and logistics services;
(viii) providing critical technical marketing support (including application and installation) and field service support (including service engineering) functions for both Caterpillar Truck Models and Navistar Truck Models; and
(ix) acquiring parts and service publications (parts books, service manuals, operation and maintenance manuals, SIS Web, and related documents) for both Caterpillar Truck Models and Navistar Truck Models, per brand requirements. 
 10.3 Purchase and Distribution of JV Truck Replacement Parts. 
  

	 	10.3.1	Generally. Subject to Sections 10.3.2 and 10.3.3 and unless otherwise determined by the Board by Majority Consent, the Company shall be responsible for
purchasing, owning, managing the inventory of, and reselling and distributing to JV Dealers both Caterpillar Brand JV Truck Replacement Parts and Navistar Brand JV Truck Replacement Parts. The Company shall, and shall cause any purchasing agent it
retains to, use commercially reasonable efforts to purchase JV Truck Replacement Parts from the Members to the extent commercially practicable, but may also purchase JV Truck Replacement Parts from suppliers of Caterpillar and Navistar and other
third parties. All such purchases shall be in accordance with sourcing decisions by the Sourcing Council and certain branding guidelines agreed to by the Members. Neither the Company nor either Member shall sell JV Truck Replacement Parts of one
Member’s brand to any JV Dealer that is not selling JV Truck Models of such Member’s brand. No document setting forth a part number cross-reference between Navistar Brand parts and Caterpillar Brand parts shall exist for JV Dealers or be
published externally. The Parties agree that the Company should utilize common parts logistics services for Navistar Brand parts and Caterpillar Brand parts whenever practicable and minimize duplication of inventory and logistics costs.

  

	 	10.3.2	 Caterpillar Brand. The Company may retain, upon the determination of the Board by Majority Consent, either Member (pursuant to the terms of the Master Terms
for Purchased Services between the Company and such Member) to serve as the purchasing agent for the Company for Caterpillar Brand JV Truck Replacement Parts using such Member’s Purchasing Group in accordance with sourcing decisions made by the
Sourcing Council. The systems utilized by the purchasing agent shall be configured to handle Caterpillar’s numbering or nomenclature for Caterpillar Brand JV Truck Replacement Parts. The Company may retain, upon the determination of the Board
by Majority Consent, the appropriate logistics services provider 

  

 46 

	 	 
(including Caterpillar) for the distribution of Caterpillar Brand JV Truck Replacement Parts. If the Company retains Caterpillar to provide distribution and
other logistics services with respect to Caterpillar Brand JV Truck Replacement Parts, then, in exchange for a services fee to be paid by the Company to Caterpillar, Caterpillar or its Affiliates shall use their respective parts distribution systems
and processes to sell and distribute Caterpillar Brand JV Truck Replacement Parts (including engine parts) to JV Dealers. This arrangement may, under certain circumstances, require Caterpillar to purchase certain Caterpillar Brand JV Truck
Replacement Parts from the Company or a third-party supplier and resell such parts to certain JV Dealers or, alternatively, to sell to certain JV Dealers Caterpillar’s own inventory of Caterpillar Brand replacement parts for Medium Duty Trucks
and Heavy Duty Trucks. The profits from such sales, less the aforementioned services fee for Caterpillar’s services, shall be for the account of the Company. Caterpillar shall determine its JV Truck Replacement Parts brand strategy and
numbering requirements. All Caterpillar Brand JV Truck Replacement Parts shall have Caterpillar part numbering nomenclature and be packaged in a Caterpillar container per Caterpillar guidelines, unless otherwise approved by Caterpillar, and any JV
Dealer that distributes Caterpillar Brand parts shall abide by Caterpillar Brand guidelines as set forth by Caterpillar from time to time. 

  

	 	10.3.3	Navistar Brand. The Company may retain, upon the determination of the Board by Majority Consent, either Member (pursuant to the terms of the Master Terms for Purchased
Services between the Company and such Member) to serve as the purchasing agent for the Company for Navistar Brand JV Truck Replacement Parts using such Member’s Purchasing Group in accordance with sourcing decisions made by the Sourcing
Council. The systems utilized by the purchasing agent shall be configured to handle Navistar’s numbering or nomenclature for Navistar Brand JV Truck Replacement Parts. The Company may retain, upon the determination of the Board by Majority
Consent, the appropriate logistics services provider (including Caterpillar Logistics Services, Inc.) for the distribution of Navistar Brand JV Truck Replacement Parts. Navistar shall determine its JV Truck Replacement Parts brand strategy
and numbering requirements. The Company shall use its commercially reasonable efforts to include in its sales and service agreements with the applicable JV Dealers in the relevant territories a provision authorizing such JV Dealers to sell Navistar
Brand JV Truck Replacement Parts to any former Navistar dealer solely to enable such former Navistar dealer to service any products utilizing a Navistar brand sold by such dealer prior to the Core ROW Country Launch Date. 

 

	 	10.3.4	Exclusivity and Common Parts. 

  

	 	10.3.4.1	 Subject to applicable law and except for sales to military customers and certain Governmental Conventional Customers by Navistar and its Affiliates pursuant to the
provisions of Section 11.1.3.2 or otherwise pursuant to the provisions of Sections 15.3.4 or 15.3.8, 

  

 47 

	 	 
the Members and the Company shall implement policies, processes and systems to cause JV Truck Replacement Parts, other than Common Parts, to be sold in the
ROW exclusively through the JV Dealers (except where required for the sale of JV Truck Replacement Parts to certain Governmental COE Customers or Governmental Conventional Customers in the ROW as permitted by Section 11.1.3). For
example, a Member may assign separate dealer codes to help track and manage the Business. 

  

	 	10.3.4.2	The Company shall endeavor with each Member to offer competitive parts pricing for Common Parts to maximize opportunities with JV Dealers to order such Common Parts from the
Company. 

  

	 	10.3.4.3	Notwithstanding anything to the contrary in this Agreement, (a) each Member and its Affiliates may market and sell at any time in any ROW country Common Parts except to the
extent that such Member or such Affiliate reasonably believes that such Common Parts will ultimately be used in a JV Truck sold by the Company, and (b) if any of such sales of Common Parts by a Member or its Affiliates that such Member or such
Affiliate reasonably believes will not ultimately be used in a JV Truck sold by the Company, as permitted by clause (a), are made by the Company (rather than by Caterpillar, Navistar, or their respective Affiliates, as applicable), all
profits or losses arising from the Company’s sale shall be entirely for the account of Caterpillar or Navistar, respectively, and shall be transferred to Caterpillar or Navistar, respectively. The Company and each Member shall adopt and
implement policies, processes, and systems to monitor, to the extent reasonably practicable, the end-user customers to which Common Parts are sold. If, at any time during the term of this Agreement, either Member reasonably believes in good faith
that the other Member is selling in any ROW country Common Parts that are ultimately being used in a JV Truck sold by the Company, (A) the Company and the Members shall investigate such matter and, (B) in the event that a material amount
of such sales did occur, bring such matter to the Board to determine any appropriate remediation action it deems necessary. 

 10.4
Remanufacturing Services. The Company shall consider Caterpillar’s Remanufacturing Division as its lead remanufacturing provider (i.e., preferred source of remanufactured products and services) and shall invite Caterpillar to bid on
remanufacturing services and product supply on terms to be negotiated by the Sourcing Council and Caterpillar on an arms’ length basis. Navistar and the Company shall grant, and shall cause each of their Affiliates to grant, to the Person
retained by the Company to provide remanufacturing services (and any Affiliates or subcontractors of such entity) a nonexclusive, royalty-free license under any Intellectual Property owned prior to, on or after the Effective Date by Navistar or the
Company, or any of their 

  

 48 

 
Affiliates, or to which Navistar or the Company, or any of their Affiliates, prior to, on or after the Effective Date holds rights to for the purpose of
providing or arranging to be provided remanufactured products or remanufacturing services to the Company. For the avoidance of doubt, the Master Plan of Cooperation for Remanufacturing Services, dated August 24, 2006, between Navistar and
Caterpillar (the “MPC”), the Master Reman Supply Agreement and Reman Product Development Agreement (as defined in the MPC) shall not be deemed to be superseded or otherwise amended by this Agreement. 
 10.5 Allocation of JV Truck Replacement Parts Sold by the Company. In the event of any shortage in the supply of JV Truck Replacement Parts, the Company shall
determine the allocation of the available supply, in accordance with the following order of priority: 
  

	 	10.5.1	In compliance with applicable law or the requirements of any governmental authority; 

  

	 	10.5.2	JV Truck Replacement Parts for emergency and truck down situations (based on the date the order is received) where the JV Truck is under warranty; 

  

	 	10.5.3	JV Truck Replacement Parts for emergency and truck down situations (based on the date the order is received) where the JV Truck is not under warranty; 

  

	 	10.5.4	JV Truck Replacement Parts for JV Truck production as set forth in the Annual Business Plan; and 

  

	 	10.5.5	JV Truck Replacement Parts to JV Truck Replacement Part stock needs. 

 Whether and when to put particular JV Truck Replacement Parts on allocation or remove such JV Truck Replacement Parts from allocation shall be decided by the Company. 
 10.6 Allocation of JV Truck Components and JV Truck Replacement Parts that are Sourced by the Company from a Member. The Company shall have access to each
Member’s inventory as a source of JV Truck Components and JV Truck Replacement Parts. If either Member is on allocation with respect to JV Truck Components or JV Truck Replacement Parts, the Company shall have priority according to such
Member’s allocation guidelines, as agreed to by the Members. Each Member may amend, modify or revise such guidelines and such amended, modified or revised guidelines shall replace any previous version of the applicable guidelines;
provided, however, that Unanimous Consent of the Members shall be required for a Member to amend, modify or revise such guidelines to the extent such amendment, modification or revision adversely affects the Company’s priority
under such allocation guidelines. 
 11. DISTRIBUTION AND SALES; JV DEALERS 
 11.1 Truck Sales. 
  

	 	11.1.1	 To JV Dealers. Unless otherwise approved by the Board by Majority Consent, except where required for the sale of JV Trucks and JV Truck Replacement Parts to
certain Governmental COE Customers or Governmental Conventional Customers in the ROW pursuant to Section 11.1.3, the 

  

 49 

	 	 
Company shall distribute and sell JV Trucks and JV Truck Replacement Parts solely through direct sales to JV Dealers, and the Company shall not sell any JV
Trucks or JV Truck Replacement Parts directly to any Caterpillar dealers, Navistar dealers, or any retail customers other than major accounts or end-user customers pursuant to the Fleet Sale Policy heretofore agreed by the Members as the same may be
amended by the Board by Majority Consent from time to time. The Company shall apply the Fleet Sale Policy in the same manner with respect to all JV Dealers. 

  

	 	11.1.2	Sales to Military Customers. Notwithstanding anything to the contrary in this Agreement, Navistar and its Affiliates shall be permitted, in their discretion, and shall have
the exclusive right to develop, design, test, manufacture, assemble, brand, market, sell (including providing purchase financing to customers), and distribute and provide product support for (including providing replacement parts and service for),
Medium Duty Trucks and Heavy Duty Trucks (other than Caterpillar-branded Medium Duty Trucks and Heavy Duty Trucks) and replacement parts therefor (including military vehicles, tactical vehicles, COTS vehicles with military features, COTS vehicles
and related parts, and Mine Resistant Ambush Protected vehicles) for and to military customers (including sales through sales and resale agents, procurement agents, prime contractors, and subcontractors where such sales are for use exclusively by
military customers), anywhere in the world, including the ROW. Navistar and its Affiliates are permitted to make such sales through any JV Dealer without Board approval and without paying the Company any fee therefor. In the event Navistar and its
Affiliates desire to conduct their parts and service business to the extent related to providing product support for such sales through any dealer or distributor, Navistar and its Affiliates shall use commercially reasonable efforts (but shall not
be obligated) to conduct such parts and service business through JV Dealers; provided, however, that in the event Navistar and its Affiliates source JV Trucks from the Company for such sales, Navistar and its Affiliates shall
(x) be required to source unique JV Truck Replacement Parts from the Company and (y) use commercially reasonable efforts (but shall not be obligated) to source other replacement parts from the Company, in the case of each of clauses
(x) and (y), solely to the extent related to providing product support for such sales. Navistar and its Affiliates shall adopt and implement policies, processes, and systems to (i) monitor, to the extent practicable, the
end-user customers to which such replacement parts are sold, and (ii) encourage such military customers to sell such replacement parts to end-user customers for use only in the trucks sold by Navistar and its Affiliates to such military
customers. If, at any time during the term of this Agreement, Caterpillar reasonably believes in good faith that the such military customers have, in fact, sold such replacement parts to end-user customers for use in trucks other than the trucks
sold by Navistar and its Affiliates to such military customers, (A) the Members shall cooperate with each other in furtherance of investigating such matter and, subject to applicable law, taking appropriate corrective actions, and (B) in
the event that a material amount of such sales did, in fact, occur, bring such matter to the Board to determine any appropriate remediation action it deems necessary. 

  

 50 

	 	11.1.3	Sales to Governmental COE Customers and Governmental Conventional Customers. 

 11.1.3.1 Governmental COE Customers. The Company and its direct and indirect subsidiaries shall be permitted, in their discretion, and shall have the exclusive right to develop, design, test, manufacture,
assemble, brand, market, sell (including providing purchase financing to customers), and distribute and provide product support for (including providing replacement parts and service for), cab over engine JV Trucks and cab over engine JV Truck
Replacement Parts for and to Governmental COE Customers (including sales through sales and resale agents, procurement agents, prime contractors, and subcontractors where such sales are for use exclusively by Governmental COE Customers), anywhere in
the ROW. Without the express written Majority Consent of the Board, Navistar and its 5% Affiliates (excluding the Mahindra JV) shall not be permitted to market or sell cab over engine Medium Duty Trucks or cab over engine Heavy Duty Trucks or cab
over engine truck replacement parts therefor to Governmental COE Customers (including sales through sales and resale agents, procurement agents, prime contractors, and subcontractors where such sales are for use exclusively by Governmental COE
Customers), anywhere in the ROW. 
 11.1.3.2 Governmental Conventional Customers. 
 11.1.3.2.1 Core ROW Countries. The Company and its direct and indirect subsidiaries shall be permitted, in their discretion, and
shall have the exclusive right to develop, design, test, manufacture, assemble, brand, market, sell (including providing purchase financing to customers), and distribute and provide product support for (including providing replacement parts and
service for), conventional (non-cab over engine) JV Trucks and conventional (non-cab over engine) JV Truck Replacement Parts for and to Governmental Conventional Customers (including sales through sales and resale agents, procurement agents, prime
contractors, and subcontractors where such sales are for use exclusively by Governmental Conventional Customers) in the Core ROW Countries. 
 11.1.3.2.2 Navistar Conventional Countries. Notwithstanding anything to the contrary in this Agreement, Navistar and its Affiliates shall be permitted, in their discretion, and shall have the exclusive right to
develop, design, test, manufacture, assemble, brand, market, sell (including providing purchase financing to customers), and distribute and provide product support for (including providing replacement parts and service for), conventional (non-cab
over engine) Medium Duty Trucks and Heavy Duty Trucks (other than Caterpillar-branded Medium Duty Trucks and Heavy Duty Trucks) and conventional (non-cab over engine) replacement parts therefor for and to Governmental Conventional Customers
(including sales through sales and resale agents, procurement agents, prime contractors, and subcontractors where such sales are for use exclusively by Governmental Conventional Customers) in Navistar Conventional Countries. Navistar and its
Affiliates are permitted to make such sales through any JV Dealer without Board approval and without paying 

  

 51 

 
the Company any fee therefor. In the event Navistar and its Affiliates desire to conduct their parts and service business to the extent related to providing
product support for such sales through any dealer or distributor, Navistar and its Affiliates shall use commercially reasonable efforts (but shall not be obligated) to conduct such parts and service business through JV Dealers; provided,
however, that in the event Navistar and its Affiliates source JV Trucks from the Company for such sales, Navistar and its Affiliates shall (x) be required to source unique JV Truck Replacement Parts from the Company and (y) use
commercially reasonable efforts (but shall not be obligated) to source other replacement parts from the Company, in the case of each of clauses (x) and (y), solely to the extent related to providing product support for such sales.
Navistar and its Affiliates shall adopt and implement policies, processes, and systems to (i) monitor, to the extent practicable, the end-user customers to which such replacement parts are sold, and (ii) encourage such Governmental
Conventional Customers to sell such replacement parts to end-user customers for use only in the trucks sold by Navistar and its Affiliates to such Governmental Conventional Customers. If, at any time during the term of this Agreement, Caterpillar
reasonably believes in good faith that the such Governmental Conventional Customers have, in fact, sold such replacement parts to end-user customers for use in trucks other than the trucks sold by Navistar and its Affiliates to such Governmental
Conventional Customers, (A) the Members shall cooperate with each other in furtherance of investigating such matter and, subject to applicable law, taking appropriate corrective actions, and (B) in the event that a material amount of such
sales did, in fact, occur, bring such matter to the Board to determine any appropriate remediation action it deems necessary. 
 11.1.3.2.3 Non-Core ROW Conventional Countries. 
 (a) Notwithstanding anything to the contrary in this Agreement, but
subject to Section 11.1.3.2.3(c), Navistar and its Affiliates shall be permitted, in their discretion, to develop, design, test, manufacture, assemble, brand, market, sell (including providing purchase financing to customers), and
distribute and provide product support for (including providing replacement parts and service for), in each case for all market segments, conventional (non-cab over engine) Medium Duty Trucks and Heavy Duty Trucks (other than Caterpillar-branded
Medium Duty Trucks and Heavy Duty Trucks) and conventional (non-cab over engine) replacement parts therefor for and to Governmental Conventional Customers (including sales through sales and resale agents, procurement agents, prime contractors, and
subcontractors where such sales are for use exclusively by Governmental Conventional Customers) in the Non-Core ROW Conventional Countries. Navistar and its Affiliates are not permitted to make such sales through any JV Dealer or use any JV Dealer
to assist with or facilitate any such sales without the Majority Consent of the Board. In the event Navistar and its Affiliates source JV Trucks from the Company for such sales, Navistar and its Affiliates shall be required to source unique
JV Truck Replacement Parts from the Company. Navistar and its Affiliates shall adopt and implement policies, processes, and systems to (i) monitor, to the extent practicable, the end-user customers to which such replacement parts are sold, and
(ii) encourage such Governmental Conventional Customers to sell such replacement parts to end-user customers for use only in the trucks sold by Navistar and its Affiliates to such Governmental Conventional Customers. If, at any time during the
term of this Agreement, Caterpillar reasonably believes in good faith that the such Governmental Conventional 

  

 52 

 
Customers have, in fact, sold such replacement parts to end-user customers for use in trucks other than the trucks sold by Navistar and its Affiliates to
such Governmental Conventional Customers, (A) the Members shall cooperate with each other in furtherance of investigating such matter and, subject to applicable law, taking appropriate corrective actions, and (B) in the event that a
material amount of such sales did, in fact, occur, bring such matter to the Board to determine any appropriate remediation action it deems necessary. 
 (b) Notwithstanding anything to the contrary in this Agreement, but subject to Section 11.1.3.2.3(c), the Company and its direct and indirect subsidiaries shall be permitted, in their discretion, to
develop, design, test, manufacture, assemble, brand, market, sell (including providing purchase financing to customers), and distribute and provide product support for (including providing replacement parts and service for), conventional (non-cab
over engine) JV Trucks and conventional (non-cab over engine) JV Truck Replacement Parts for and to Governmental Conventional Customers (including sales through sales and resale agents, procurement agents, prime contractors, and subcontractors where
such sales are for use exclusively by Governmental Conventional Customers) in the Non-Core ROW Conventional Countries. 
 (c) At such time
as the Company or any of its direct and indirect subsidiaries resolves to market and sell such JV Trucks and JV Truck Replacement Parts in one of the Non-Core ROW Conventional Countries, the Members shall develop a marketing strategy for such
Non-Core ROW Conventional Country with respect to the marketing and sale of such JV Trucks and JV Truck Replacement Parts in such Non-Core ROW Conventional Country. Such marketing strategy may provide for (i) the Company and its direct and
indirect subsidiaries to exclusively make such sales in such Non-Core ROW Conventional Country, (ii) Navistar and its Affiliates to exclusively make such sales in such Non-Core ROW Conventional Country, or (iii) both the Company and its
direct and indirect subsidiaries and Navistar and its Affiliates to make such sales in such Non-Core ROW Conventional Country on a non-exclusive basis. Until such time as the Members have mutually agreed to such marketing strategy for a particular
Non-Core ROW Conventional Country, both the Company and its direct and indirect subsidiaries, on the one hand, and Navistar and its Affiliates, on the other hand, shall be permitted to market and sell such JV Trucks and JV Truck Replacement Parts
and Medium Duty Trucks, Heavy Duty Trucks and replacement parts therefor, respectively, for and to Governmental Conventional Customers in such Non-Core ROW Conventional Country on a non-exclusive basis in accordance with Sections
11.1.3.2.3(b) and 11.1.3.2.3(a), respectively. 
  

	 	11.1.4	Export Guidelines. 

 11.1.4.1 Subject to applicable
law, Caterpillar and Navistar shall establish and implement, on October 1, 2009, export guidelines for Caterpillar dealers anywhere in the world and Navistar dealers anywhere in the world, respectively, in the forms thereof heretofore agreed to
by Caterpillar and Navistar with respect to trucks and replacement parts competitive with JV Trucks and JV Truck Replacement Parts in order to discourage export sales of such products by (i) dealers in countries outside the European Union and
the European Free Trade Association into any country other than the country assigned to such dealer or (ii) dealers in countries inside the European Union or the European Free Trade Association into countries outside the European Union and the
European Free Trade Association. 
  

 53 

 11.1.4.2 Subject to applicable law, the Company shall establish and implement (a) exclusive sales
territories, or (b) export guidelines for JV Dealers with respect to JV Trucks and JV Truck Replacement Parts in order to discourage export sales of such products by (i) JV Dealers in countries outside the European Union and the European
Free Trade Association into any country other than the country assigned to such dealer, (ii) JV Dealers in countries inside the European Union or the European Free Trade Association into countries outside the European Union and the European
Free Trade Association, or (iii) JV Dealers into non-ROW countries. Subject to applicable law, JV Dealers will be required to respect their sales territories and adhere to the export guidelines as a condition of their sales and service
agreement. 
 11.1.4.3 The Company and each Member shall adopt and implement policies, processes, and systems to monitor, to the extent
reasonably practicable, a Member’s dealers’ and JV Dealers’ compliance with the export guidelines. If, at any time during the term of this Agreement, a Member’s dealer or a JV Dealer claims that another dealer has made export
sales of trucks or replacement parts competitive with JV Trucks or JV Truck Replacement Parts (i) in the case of such export sales by such dealer in a country outside the European Union and the European Free Trade Association, into any country
other than the country assigned to such dealer or (ii) in the case of such export sales by such dealer inside the European Union or the European Free Trade Association, into any country outside the European Union and the European Free Trade
Association, (A) the Company and the Members shall investigate such matter and, (B) in the event that a material amount of such sales did occur, bring such matter to the Board to determine any appropriate remediation action it deems
necessary. 
  

	 	11.1.5	Alternative Branded JV Trucks; Will-Fit Parts. If the Company decides to sell any JV Trucks that are not Caterpillar Brand or Navistar Brand or any Will-Fit Parts, the Board
shall determine the appropriate distribution channel; provided, that unless the Board decides otherwise by Majority Consent, such JV Trucks and Will-Fit Parts shall not be sold through either (a) any JV Dealer Affiliated with a
Caterpillar dealer, or (b) any JV Dealer Affiliated with a Navistar dealer. 

  

	 	11.1.6	 Other Products. Except as otherwise provided in this Agreement and subject to the immediately following two (2) sentences in this
Section 11.1.6, each Member and its Affiliates are permitted to sell (provided such sales are not in violation of any provision of this Agreement, including Section 15) any of their commercial vehicles through any JV Dealer
without Board approval and without paying the Company any fee therefor; provided, however, that subject to clause (iii) of the last sentence of Section 2.3.7.1, without the Majority Consent of the Board,
Navistar and its 5% Affiliates are not permitted to sell any Medium Duty Truck or Heavy Duty Truck through any Caterpillar-branded JV Dealer or any Navistar-branded JV Dealer Affiliated with a Caterpillar dealer. Except as otherwise provided in this
Agreement, if a Member (the “Triggering Member”) desires to sell its commercial vehicles in the ROW through any JV Dealer that (x) is Affiliated with one of non-Triggering Member’s dealers or (y) sells the
non-Triggering Member’s brand of JV Trucks, the Triggering Member and its Affiliates may, following notice 

  

 54 

	 	 
to and discussion by the Board (but without a requirement for Board approval), in their sole discretion, sell such commercial vehicles through such JV Dealer
subject to the following: 

 11.1.6.1 such sales are not in violation of any provision of this Agreement, including
Section 15; 
 11.1.6.2 if such JV Dealer is located in a country in which the Company sells both Caterpillar Truck Models and
Navistar Truck Models, the Triggering Member and its Affiliates may make such sales through such JV Dealer only if such JV Dealer sells the Triggering Member’s brand of JV Trucks (it being understood and agreed that the Triggering Member and
its Affiliates may also make such sales through any other JV Dealer in such country that sells the Triggering Member’s brand of JV Trucks); and 
 11.1.6.3 if such JV Dealer is located in a country in which the Company sells only one Member’s brand of JV Trucks, the Triggering Member and its Affiliates may make such sales through such JV Dealer, including
any other JV Dealer in such country, regardless of the brand of JV Trucks sold by such JV Dealer. 
 In the event that the Triggering Member
makes any such sales of commercial vehicles in the ROW through such a JV Dealer, except as otherwise provided in this Agreement, the non-Triggering Member and its Affiliates may, following notice to and discussion by the Board (but without a
requirement for Board approval), in their sole discretion, sell such commercial vehicles through any JV Dealer that (x) is Affiliated with one of Triggering Member’s dealers or (y) sells the Triggering Member’s brand of JV Trucks
subject to the following: 
 11.1.6.4 such sales are not in violation of any provision of this Agreement, including Section 15;

 11.1.6.5 if such JV Dealer is located in a country in which the Company sells both Caterpillar Truck Models and Navistar Truck Models, the
non-Triggering Member and its Affiliates may make such sales through such JV Dealer only if such JV Dealer sells the non-Triggering Member’s brand of JV Trucks (it being understood and agreed that the non-Triggering Member and its Affiliates
may also make such sales through any other the JV Dealer in such country that sells the non-Triggering Member’s brand of JV Trucks); and 
 11.1.6.6 if such JV Dealer is located in a country in which the Company sells only one Member’s brand of JV Trucks, the non-Triggering Member and its Affiliates may make such sales through such JV Dealer, including any other JV Dealer
in such country, regardless of the brand of JV Trucks sold by such JV Dealer. 
  

 55 

 11.2 Branding Strategy; Selection of JV Truck Models. 
  

	 	11.2.1	The Company’s branding strategy with respect to each ROW country shall be subject to the approval of the Board by Majority Consent. Without limiting the generality of the
preceding sentence, for each country in which the Company determines to sell JV Trucks, the Board shall determine by Majority Consent if the Company shall sell in such country (a) solely Caterpillar Truck Models, (b) solely Navistar Truck
Models, or (c) both Caterpillar and Navistar Truck Models. 

  

	 	11.2.2	The Company’s branding strategy with respect to each ROW country shall be designed to (a) maximize commercial opportunities for the Company in such country,
(b) achieve the maximum potential profit for the Company, and (c) expand each of the Navistar Brand and the Caterpillar Brand presence globally, consistent with the worldwide positioning of each of the Navistar Brand and the Caterpillar
Brand. 

  

	 	11.2.3	In preparing a branding strategy for each ROW country, the Company shall take into account, among other things, (a) market research regarding brand value, customer preferences
and suitability in such country, (b) a reasonable estimate of the incremental cost for maintaining multiple brands in such country, (c) a strategic and financial evaluation of alternative branding strategies, and (d) the potential
distribution strategies in such country. 

  

	 	11.2.4	All specifications for each Caterpillar Truck Model, including upgrades, shall be approved by (a) the Board by Majority Consent and (b) Caterpillar. All specifications for
each Navistar Truck Model, including upgrades, shall be approved by (i) the Board by Majority Consent and (ii) Navistar. 

  

	 	11.2.5	All decisions with respect to the use of a Member’s brand in the conduct of the Company’s Business shall be subject to the consent of such Member in its sole discretion.

 11.3 Selection of JV Dealers; Agreements with JV Dealers. 
  

	 	11.3.1	Subject to the other provisions of this Section 11.3, the Company (not the Members) shall have the exclusive right to manage its JV Dealer relationships and, with
Majority Consent of the Board, to appoint or terminate any JV Dealer selling or servicing JV Trucks and JV Truck Replacement Parts pursuant to sales and service agreements that the Company or any of its Affiliates enters into with such JV Dealers.

  

	 	11.3.2	 If the Board determines by Majority Consent that the Company shall sell solely Caterpillar Truck Models in a given country, the JV Dealer in such country shall be
an Affiliate of a Caterpillar dealer in such country; provided, that such Affiliate submits an application to the Company. If a Caterpillar dealer declines to form an Affiliate to sell JV Trucks or the Board determines by Majority Consent not
to enter into a sales and service agreement with an 

  

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Affiliate of such Caterpillar dealer, the Board may, by Majority Consent, determine to seek applications to form an Affiliate to serve as the JV Dealer in
such country from another Caterpillar dealer. 

  

	 	11.3.3	If the Board determines by Majority Consent that the Company shall sell solely Navistar Truck Models in a given country, the JV Dealer in such country shall be an Affiliate of a
Navistar dealer in such country; provided, that such dealer submits an application to the Company. If a Navistar dealer declines to form an Affiliate to sell JV Trucks or the Board determines by Majority Consent not to enter into a sales and
service agreement with an Affiliate of such Navistar dealer, the Board shall seek applications to form an Affiliate to serve as the JV Dealer in such country from both Navistar dealers and Caterpillar dealers. 

  

	 	11.3.4	If the Board determines by Majority Consent that the Company shall sell both Caterpillar Truck Models and Navistar Truck Models in a given country: 

  

	 	11.3.4.1	A current Navistar dealer in such country, if any, shall be given a first right of refusal to form an Affiliate to serve as the JV Dealer in such country with respect to Navistar
Truck Models; provided, that such dealer submits an application to the Company. If such Navistar dealer declines to form an Affiliate to sell JV Trucks or the Board determines by Majority Consent not to enter into a sales and service
agreement with an Affiliate of such Navistar dealer as the JV Dealer with respect to Navistar Truck Models in such country, a Caterpillar dealer in such country, as selected by the Board by Majority Consent, shall be given an opportunity to submit
an application to the Company, as a preferred dealer, to form an Affiliate to serve as the JV Dealer with respect to Navistar Truck Models in such country. Notwithstanding the foregoing, in the event the Caterpillar dealer selected by the Board as a
preferred dealer declines to form an Affiliate to sell JV Trucks or the Board determines by Majority Consent not to enter into a sales and service agreement with an Affiliate of such Caterpillar dealer as the JV Dealer with respect to Navistar Truck
Models in such country, the Board shall seek applications to form an Affiliate to serve as the JV Dealer with respect to Navistar Truck Models in such country from both Navistar dealers and Caterpillar dealers. 

  

	 	11.3.4.2	 A current Caterpillar dealer in such country, if any, shall be given a first right of refusal to form an Affiliate to serve as the JV Dealer in such country with
respect to Caterpillar Truck Models; provided, that such dealer submits an application to the Company. If such Caterpillar dealer declines to form an Affiliate to sell JV Trucks or the Board determines by Majority Consent not to enter into a
sales and service agreement with an Affiliate of such Caterpillar dealer as the JV Dealer with respect to Caterpillar 

  

 57 

	 	 
Truck Models in such country, the Company shall seek applications to form an Affiliate to serve as the JV Dealer with respect to Caterpillar Truck Models in
such country from another Caterpillar dealer (either in another territory of such country or in another country). 

  

	 	11.3.5	If the Board determines by Majority Consent that the Company shall sell both Caterpillar Truck Models and Navistar Truck Models in a given country in which there are no existing
Navistar dealers at such time, no Caterpillar dealer (or any subsidiary or Affiliate thereof) shall be permitted to sell Caterpillar Truck Models unless such Caterpillar dealer also forms an Affiliate, which Affiliate agrees to serve as the JV
Dealer in such country for Navistar Truck Models pursuant to the Company’s standard sales and service agreement. If such Caterpillar dealer declines to form an Affiliate to serve as the JV Dealer in such country for Navistar Truck Models, the
Company shall seek applications from a Caterpillar dealer in another country to form an Affiliate to serve as such JV Dealer with respect to both Caterpillar Truck Models and Navistar Truck Models in such country. 

  

	 	11.3.6	Subject to applicable law, (a) the Company shall not select as a JV Dealer any Person in a given territory (other than an existing Navistar or Caterpillar dealer, as
applicable, located in such territory) that serves as, or whose Affiliate serves as, a dealer of any third-party original equipment manufacturer (other than the Company) (a “Competitive OEM”) whose products and services are in
competition with the products and services of the Company in such territory (such dealer, a “Competitive OEM Dealer”) without the Majority Consent of the Board, (b) in each instance where a Person selected by the Board as a JV
Dealer, at the time of such selection, is not, and none of such Person’s Affiliates is, a Competitive OEM Dealer, the Board shall endeavor to include in the Company’s sales and service agreement with such Person a prohibition on such
Person and its Affiliates from ever forming or acquiring a Competitive OEM Dealer, and (c) if the Board does, in fact, upon Majority Consent or pursuant to Sections 11.3.2, 11.3.3, 11.3.4, or 11.3.5, select as a JV
Dealer a Person that serves as, or whose Affiliate serves as, a Competitive OEM Dealer, the Board shall endeavor to include in the Company’s sales and service agreement with such Person provisions that provide that such Person and its
Affiliates sell the products of the Company (on the one hand) and the products of the Competitive OEM (on the other hand) in different locations and through different legal entities. 

  

	 	11.3.7	 To the extent requested by the Company, each of Caterpillar and Navistar shall use its commercially reasonable efforts to encourage those of its existing dealers
that demonstrate compliance with certain standards set by the Company to establish (a) an Affiliate to serve as a JV Dealer and (b) cause such JV Dealer to enter into sales and service agreements with the Company or one of its Affiliates
to distribute JV Trucks and JV Truck Replacement Parts. In any instance in which the Company appoints a single dealer to be a 

  

 58 

	 	 
JV Dealer with respect to both Caterpillar Truck Models and Navistar Truck Models, the Company shall enter into separate sales and service agreements with
such JV Dealer for the sale and service of Caterpillar Truck Models (on the one hand) and Navistar Truck Models (on the other hand). 

  

	 	11.3.8	 The Company shall use its reasonable best efforts to enter into with each JV Dealer that sells Navistar Truck Models sales and service agreements in the forms
heretofore agreed to by the Members (it being understood that each such agreement will permit sales and servicing of either (i) Medium Duty COE Trucks or (ii) conventional (non-cab over engine) Medium Duty Trucks and all Heavy Duty Trucks,
but not both). The Company will use its reasonable best efforts to enter into with each JV Dealer that sells Caterpillar Truck Models sales and service agreements in the forms heretofore agreed to by the Members (it being understood that each such
agreement will permit sales and servicing of either (i) Medium Duty COE Trucks or (ii) conventional (non-cab over engine) Medium Duty Trucks and all Heavy Duty Trucks, but not both). Without limiting the generality of the preceding
sentence, each JV Dealer sales and service agreement shall contain provisions stipulating that (a) such agreement may be assigned by the Company to the Member whose branded JV Truck models are sold pursuant to such agreement without the consent
of the JV Dealer, (b) such agreement may be terminated unilaterally by the Company with or without cause to the extent permitted, and pursuant to the process required, if any, under applicable law, (c) such JV Dealer shall be prohibited
from selling (i) JV Trucks or JV Truck Replacement Parts to any military customer (without Navistar’s prior written consent) and (ii) JV Trucks or JV Truck Replacement Parts in contravention of the exclusivity and non-competition
provisions of this Agreement, and (d) subject to applicable law, with respect to each such agreement with a Navistar-branded JV Dealer Affiliated with a Caterpillar dealer, such agreement will automatically terminate upon the seventh
(7th) anniversary of the occurrence of the Triggering Event.

 11.4 Marketing, Sales, and Dealer Support and Administrative Services. In each ROW country in which the Company sells JV Trucks
or JV Truck Replacement Parts, the Company and the JV Dealers in such country may receive (pursuant to the terms of the Master Terms for Purchased Services) traditional marketing, sales, pricing, administrative, and traditional dealer relations and
support services in connection with the sale of the JV Trucks and JV Truck Replacement Parts in such country, in each case, from a Member selected by the Board by Majority Consent. The Board shall make such selection for each such service based on
the Members’ comparative level of expertise with respect to such service. To enable the applicable Member to provide such services, the Company shall provide, at no charge to such Member, technical marketing support (e.g., application and
installation) and application engineering support to such Member for the applicable JV Trucks and JV Truck Replacement Parts at such levels agreed upon by the Board by Majority Consent. 
 11.5 Product Support Responsibilities. The Company shall perform, or shall retain one or both of the Members or a third party to perform (in each case, at prices that are negotiated by 

  

 59 

 
such Person and the Company), the following product support functions (collectively, the “Product Support Services”) in support of the
Company’s branding strategy, distribution channels, and brand requirements with respect to each Navistar Truck Model and each Caterpillar Truck Model: 
  

	 	11.5.1	Parts delivery and return policies, 

  

	 	11.5.2	Establishment of parts service performance levels, 

  

	 	11.5.3	Parts pricing publications, 

  

	 	11.5.4	Export parts policy and enforcement, 

  

	 	11.5.5	Dealer management and traditional marketing functions, 

  

	 	11.5.6	Parts marketing and support, 

  

	 	11.5.7	Technical service and support, 

  

	 	11.5.8	Service engineering services, and 

  

	 	11.5.9	Technical training. 

 11.6 Financing. In evaluating financing
options for the Company and its sales, Caterpillar Financial shall be evaluated as the preferred source of working capital financing for the Company and all wholesale and retail sales financing of JV Trucks (both Caterpillar Truck Models and
Navistar Truck Models) by the Company. If the Company and Caterpillar Financial agree to have Caterpillar Financial provide financing services in one or more ROW countries, or, if Caterpillar Financial provides financing services to a JV Dealer in
an ROW country, Caterpillar Financial shall make financing services similar to those offered to such JV Dealer available to all JV Dealers in such ROW country, including any JV Dealers selling Navistar Truck Models (it being understood that the
particular pricing for such services offered by Caterpillar Financial to any given JV Dealer may differ from the pricing offered by Caterpillar Financial to a Caterpillar dealer or to another JV Dealer based on the creditworthiness and other
objective characteristics of such dealers customarily utilized in evaluating the extension and pricing of credit). Further evaluation of the Company’s marketing strategy and associated costs and revenues is required before Caterpillar Financial
participation can be evaluated and understood. 
 12. SERVICE 
 12.1 Certification as Service Providers. Consistent with applicable law, the Company shall establish requirements for JV Dealers to become certified service providers. Caterpillar and Navistar shall assist the Company with the
determination of certification requirements pursuant to the Master Terms for Purchased Services. To the extent consistent with applicable law, JV Dealers shall be required to participate in certified service training programs as a precondition to
selling, and being certified as a warranty and service provider for, JV Trucks. 
  

 60 

 12.2 Training of JV Dealers. The Company shall have responsibility for training JV Dealers and their respective
service providers; provided, however, that the Company may utilize Navistar and Caterpillar to provide JV Dealers with appropriate training pursuant to the Master Terms for Purchased Services (e.g., Navistar may provide truck related
sales and service training to JV Dealers and Caterpillar may provide powertrain sales and service training to JV Dealers). 
 12.3 Service Campaigns and
Guidelines for Repair. Caterpillar and Navistar shall, pursuant to the Master Terms for Purchased Services, jointly assist the Company with the determination of all truck service campaigns and guidelines for repair, subject to appropriate
Caterpillar and Navistar policies. The Company may engage Caterpillar or Navistar, as appropriate, pursuant to the Master Terms for Purchased Services, to administer such service campaigns or guidelines for repair (e.g., supplier recovery,
distribution logistics, etc.); provided, however, that the Company shall be responsible for the costs of such service campaigns or guidelines for repair. 
 12.4 Service Publications and Technical Information. The Company shall be responsible for publishing and distributing appropriate service publications and technical and tooling information. Navistar and
Caterpillar shall, for a fee and pursuant to the Master Terms for Purchased Services, jointly assist the Company with the preparation of such publications and information. The portion of such publications and information pertaining to
(a) Caterpillar Truck Models shall conform with the current Caterpillar Brand guidelines, and (b) Navistar Truck Models shall conform with the current Navistar Brand guidelines, in each case to the fullest extent possible. 
 13. WARRANTY 
 13.1 Generally. The Company shall issue
Caterpillar Brand or Navistar Brand warranties (as applicable) for JV Trucks and JV Truck Replacement Parts sold or distributed by the Company and shall be liable for truck and service parts claims made thereunder. Warranties shall be JV Truck-brand
specific to allow for differentiation between claims attributable to Caterpillar Truck Models and Navistar Truck Models. 
 13.2 Sales by the Members to
the Company. 
  

	 	13.2.1	Navistar shall provide the Company with the product warranties for those JV Trucks, JV Truck Components, and JV Truck Replacement Parts sold by Navistar to the Company as set forth
in the Truck Sales Agreement, the Master Component Supply Agreement and any other relevant agreement. 

  

	 	13.2.2	Caterpillar shall provide the Company with the product warranties for those JV Truck Components and JV Truck Replacement Parts sold by Caterpillar to the Company as set forth in the
Master Component Supply Agreement and any other relevant agreement. 

  

	 	13.2.3	The Company shall endeavor to provide in its agreements with its other suppliers (beside the Members) that recalls of any product purchased by the Company that are or were subject
to such supplier’s warranty and generate an amount of liabilities in excess of the amount attributable to the regular warranty for such product shall be the responsibility of such supplier. 

  

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 13.3 Legacy Warranties. 
  

	 	13.3.1	Core ROW Countries. Subject to Section 13.3.1.1, on the Core ROW Country Launch Date the Company shall assume all liabilities arising from the Standard Warranty
with respect to JV Trucks and JV Truck Replacement Parts sold prior to the Core ROW Country Launch Date by Navistar or any of its direct or indirect wholly-owned subsidiaries in the Core ROW Countries (other than sales to IVECO, customers located in
Brazil and military customers (including sales through sales and resale agents, procurement agents, prime contractors, and subcontractors where such sales are for use exclusively by military customers)) pursuant to an assumption agreement in a
customary form; provided, however, that, for the avoidance of doubt, no liabilities arising from any recall, extended service contract, or any Goodwill Policy relating to any such truck or part shall be transferred to or otherwise
assumed by the Company. 

  

	 	13.3.1.1	NITSA. Notwithstanding anything to the contrary in this Section 13.3.1, the Company shall not assume the liabilities arising from the Standard Warranty with
respect to Medium Duty Trucks, Heavy Duty Trucks, and replacement parts therefor sold by NITSA until the NITSA Business Acquisition Date, at which time the Company shall assume such liabilities from Navistar either directly pursuant to an assumption
agreement in a customary form or indirectly through the Company’s acquisition of all of the capital stock of NITSA. 

  

	 	13.3.2	Non-Core ROW Countries (except Legacy Countries). With respect to each Non-Core ROW Country (except the Legacy Countries), the Company shall not assume any legacy warranties
with respect to any Medium Duty Trucks, Heavy Duty Trucks or replacement parts therefor sold in such country by any Person other than the Company or one of its direct or indirect wholly owned subsidiaries. 

  

	 	13.3.3	Legacy Countries. With respect to each Legacy Country, the Company shall not assume the legacy warranties with respect to any Medium Duty Trucks, Heavy Duty Trucks or
replacement parts therefor sold in such country by any Person other than the Company or one of its direct or indirect wholly owned subsidiaries prior to the Legacy Country Commencement Date with respect to such country. 

 13.4 Goodwill Policy. To the extent the costs for Goodwill Policy are reflected in the Annual Business Plan, the Company shall abide by the Goodwill Policy of
Caterpillar for Caterpillar Truck Models and the Goodwill Policy of Navistar for Navistar Truck Models, which Goodwill Policies shall compensate customers for certain non-warranty servicing of JV Trucks. The Goodwill Policy for Caterpillar Truck
Models shall be a differentiating factor compared to the Goodwill Policy for Navistar Truck Models, and the Company sales prices pertaining to Caterpillar Truck Models and Navistar Truck Models shall reflect this differentiating factor. 

 

 62 

 
Caterpillar and Navistar, when acting on behalf of the Company pursuant to the Master Terms for Purchased Services, shall cause their respective sales and
service personnel for JV Trucks to abide by the applicable Goodwill Policy. The Company shall bear the costs and expenses associated with the Goodwill Policies; provided, however, that each Member shall be responsible for all expenses
arising from the Goodwill Policy of such Member’s JV Truck models incurred by the Company in excess of the relevant, accrued, budgeted amount set forth in the Annual Business Plan. 
 13.5 Warranty Administration. 
  

	 	13.5.1	The Company shall be responsible for warranty administration with respect to JV Trucks and JV Truck Replacement Parts for which the Company has assumed the corresponding warranty
liability. 

  

	 	13.5.2	JV Dealers that sell Caterpillar Truck Models or Caterpillar Brand JV Truck Replacement Parts may submit all claims related thereto via the Caterpillar warranty systems.
Caterpillar’s accounting function shall regularly invoice the Company for reimbursement with respect to such warranty claims and applicable expenses. 

  

	 	13.5.3	JV Dealers that sell Navistar Truck Models or Navistar Brand JV Truck Replacement Parts may submit all claims related thereto via the Navistar warranty systems. Navistar’s
accounting function shall regularly invoice the Company for reimbursement with respect to such claims and applicable expenses. 

  

	 	13.5.4	The Company may engage either Member, pursuant to the Master Terms for Purchased Services, to provide additional services with respect to warranty administration related to such
Member’s JV Truck Models and such Member’s brand JV Truck Replacement Parts. 

  

	 	13.5.5	JV Dealers that sell Caterpillar Truck Models (and their respective service providers) and JV Dealers that sell Navistar Truck Models (and their respective service providers) shall
perform warranty administration, including administration of extended warranties and extended service coverage, on all warranty claims tendered by any end-user on Caterpillar Truck Models sold by the Company or by any end-user on Navistar Truck
Models sold by the Company, respectively, in each case whether or not sold by such JV Dealer. Exceptions to the rules set forth in the immediately preceding sentence shall be handled on a case-by-case basis in order to minimize the downtime of JV
Trucks sold by the Company and enhance the Company’s customer service. 

  

	 	13.5.6	The Company shall be responsible for, and shall reimburse JV Dealers and their service providers for, defined costs and expenses incurred by such Persons in connection with warranty
administration on JV Trucks. 

  

	 	13.5.7	In the case of any third-party suppliers offering warranties directly to the customer, such suppliers shall be responsible for administering their own warranty, and financial
liability shall be predetermined by the contractual relationship with such suppliers. 

  

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 13.6 Extended Warranty or Service Coverage. All extended warranty or service coverage (“ESC”)
with respect to JV Trucks shall be offered through a designated ESC service provider (which may be a Member) and sold pursuant to the following provisions: (a) the Company shall select any ESC provider to be engaged; (b) the Company shall
negotiate and approve all ESC terms and conditions to develop a market competitive ESC package with input from the Members; and (c) the Members may, as a service to the Company pursuant to the Master Terms for Purchased Services, provide for
purchasing ESC from the designated ESC provider at market-based prices. 
 14. INTELLECTUAL PROPERTY RIGHTS 
 14.1 Members’ Intellectual Property Licenses. 
  

	 	14.1.1	Each Member shall license (or shall cause its designated Affiliate to license) to the Company, on a royalty-free basis, certain Intellectual Property of such Member and its
Affiliates pursuant to the applicable Intellectual Property License Agreement and the applicable Trademark License Agreement. If necessary, the Company shall, in turn, sublicense such Intellectual Property, on a royalty-bearing basis, to one or more
direct or indirect wholly owned subsidiaries of the Company established outside of the U.S.; provided, however, that (a) the Company shall not sublicense any trademarks of either Member to any direct or indirect wholly owned
subsidiary of the Company and (b) each Member shall license (or shall cause its designated Affiliate to license), on a royalty-bearing basis, directly to each applicable direct or indirect wholly owned subsidiary of the Company established
outside of the U.S., the applicable trademarks of such Member. 

  

	 	14.1.2	For the avoidance of doubt, except as otherwise set forth in the Intellectual Property License Agreements, neither Member shall be required to license to the Company any
Intellectual Property for the purpose of manufacturing or selling any JV Truck Components. 

 14.2 Members’ Background Intellectual
Property. For the avoidance of doubt, subject to the terms of the Intellectual Property License Agreements referenced in Section 14.1, all Background Intellectual Property of a Member shall remain the property solely of such Member.

 14.3 Company Intellectual Property. Except as otherwise agreed by the Members, the Company (or an Affiliate designated by the Company) shall own
any and all Intellectual Property that is developed by the Company or by a Member retained for such purpose on the Company’s behalf. The Company shall grant (or shall cause the applicable Affiliates of the Company to grant) each Member a
royalty-bearing license to utilize the Intellectual Property owned by the Company or its Affiliates, subject to Section 15, pursuant to the applicable Royalty-Bearing IP License Agreement. 
  

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 14.4 R&D; Development. The Company shall determine the extent to which it conducts the research and
development and Intellectual Property activities set forth in the Annual Business Plan and the Rolling Business Plan with internal resources or by retaining one or both Members or a third party to provide product development services on a contract
basis (in the case of the Members, pursuant to the applicable Master Development Services Agreement), and in such event, Navistar shall be evaluated as the preferred source of such product development services. 
 14.5 Third Party Infringement Claims. If any activity in connection with the conduct of the Business is alleged by a third party to infringe a third party’s
Intellectual Property rights, the Party becoming aware of such allegation shall promptly notify the other Parties thereof in writing, reasonably detailing the claim. 
 14.6 Post-Termination Ownership of Certain Intellectual Property. The provisions in this Section 14.6 shall apply to any Intellectual Property of the Company (a) that is distributed to both
Members as joint owners pursuant to Section 21.5.1, such provisions to take effect from and after the date of such distribution, or (b) joint ownership of which is distributed to the Seller Member and retained by the Company
pursuant to Section 21.6.5, such provisions to take effect simultaneously with the closing of the sale and purchase of the Membership Interest pursuant to the Buy-Out Interest Option or pursuant to the Buy/Sell Option (as provided in
Section 21.6.4). For purposes of this Section 14.6, such Intellectual Property shall be referred to as the “Jointly Owned Intellectual Property”, and each of the two joint owners of the Jointly Owned
Intellectual Property shall be referred to as a “Joint Owner”. 
  

	 	14.6.1	Prosecution and Maintenance; Enforcement. 

  

	 	14.6.1.1	Subject to the other provisions of this Section 14.6, the Joint Owners shall mutually agree on all decisions relating to the procurement, prosecution, and maintenance of
all Jointly Owned Intellectual Property. 

  

	 	14.6.1.2	If either Joint Owner wishes to commence proceedings against a third party for infringement of any Jointly Owned Intellectual Property, the non-enforcing Joint Owner shall cooperate
in good faith to facilitate the commencement of those proceedings by voluntarily joining as a plaintiff in such lawsuit, unless the non-enforcing Joint Owner has a reasonable business justification for not cooperating (e.g., the alleged infringer is
a customer of such Joint Owner). In that event, the non-enforcing Joint Owner hereby grants to the enforcing Joint Owner (a) the unilateral right to sue such third party for infringement of such Jointly Owned Intellectual Property, and
(b) the right to seek joinder of the non-cooperating party as an involuntary plaintiff. The non-enforcing Joint Owner hereby agrees not to contest any attempted joinder as an involuntary plaintiff by the enforcing Joint Owner in any proceeding
against a third party for infringement of any Jointly Owned Intellectual Property. 

  

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	 	14.6.1.3	The enforcing Joint Owner shall indemnify the non-enforcing Joint Owner with respect to any Liabilities (including liability for costs or assessment of attorney fees) arising from
the proceedings, and the enforcing Joint Owner may conduct the proceedings as it wishes, for its own benefit. The non-enforcing Joint Owner may, at the enforcing Joint Owner’s expense and subject to the enforcing Joint Owner’s consent, not
to be unreasonably withheld, retain counsel to represent it in any proceedings against a third party for infringement of any Jointly Owned Intellectual Property. 

  

	 	14.6.1.4	If both Joint Owners wish to take part in proceedings against a third party for infringement of any Jointly Owned Intellectual Property, the Joint Owners shall cooperate in good
faith with respect to the conduct of the proceedings, including voluntarily joining as plaintiffs in the suit and agreeing in writing to the manner in which the costs of the proceedings will be shared. The costs of the proceedings shall be paid
first with any amounts recovered, with the remaining costs being shared equally by the Joint Owners, or as otherwise agreed by the Joint Owners in writing. 

 14.6.2 Licensing. Notwithstanding any statutes, rules or regulations of any ROW country to the contrary, each Joint Owner shall have the right to license any Jointly Owned Intellectual Property for use anywhere
in the ROW to any Person (including any Affiliate) without the consent of the other Joint Owner; provided, however, that (a) any such license to a Person that is not an Affiliate of such Joint Owner shall be in exchange for a
commercially reasonable royalty to be paid by the licensee, and (b) the Joint Owner licensor shall be required to account to and pay over to, promptly upon receipt, the other Joint Owner fifty percent (50%) of any such royalty
consideration actually received by such Joint Owner licensor. For the avoidance of doubt, each Joint Owner shall have the right to license any Jointly Owned Intellectual Property for use anywhere in the ROW to any Affiliate of such Joint Owner on a
royalty-free basis. 
 15. NON-COMPETITION COVENANTS 
 15.1 Business. Subject to the terms and conditions of this Agreement and the Related Agreements and except as otherwise provided herein, during the period commencing on the Effective Date and ending upon the occurrence of the
Triggering Event, neither Member nor its respective 5% Affiliates shall, directly or indirectly, (a) engage in, or own any ownership interest equal to or greater than five percent (5%) in, any business substantially similar to or in
competition with the Business or any part thereof, in each case, anywhere in the ROW, or (b) grant any license or sublicense of Intellectual Property of Caterpillar, Navistar, the Company or their respective 5% Affiliates to any person for any
use within the scope of the Business anywhere in the ROW, except in each case as otherwise agreed to in writing by both Members. Without limiting the generality of the foregoing, subject to the terms and conditions of this Agreement and the Related
Agreements and except as otherwise provided herein, neither Member nor its respective 5% Affiliates shall, independent of the Company, market or sell in the 

  

 66 

 
ROW any JV Truck Replacement Parts (including, for the avoidance of doubt, Will-Fit Parts) in connection with Medium Duty Trucks or Heavy Duty Trucks.
Notwithstanding the foregoing, neither Member nor any of its 5% Affiliates shall be prohibited from licensing or sublicensing any of the Intellectual Property of such Member or any of its 5% Affiliates to any Person for purposes of settling a bona
fide Intellectual Property dispute. Notwithstanding the foregoing, in the event of a Change in Control of either Member after the date hereof by a Person that is a competitor of any or all of the Business, the non-competition provisions and the
exclusivity provisions of this Agreement, including Sections 9.5 and 11.1 and this Section 15.1, shall cease upon and be of no further force or effect following such Change in Control. 
 15.2 Contracts Restricting the Company. Without the Majority Consent of the Board, and except as otherwise provided in this Agreement, neither Member shall, and
each Member shall cause its respective 5% Affiliates not to, enter into any contract that would restrict the activities of the Company contemplated by this Agreement, including (a) any contract for the purchase of JV Truck Components or JV
Truck Replacement Parts that would restrict the activities of the Company contemplated by this Agreement or (b) any contract pursuant to which such Member or 5% Affiliate incurs indebtedness for borrowed money or becomes a guarantor or surety
or pledged its credit for or otherwise becomes responsible with respect to any undertaking of another Person that would restrict the activities of the Company contemplated by this Agreement, including the Company becoming a “Restricted
Subsidiary” as defined in the Credit Agreement, dated as of January 19, 2007, as may be amended from time to time, among Navistar International Corporation, as Borrower, the Subsidiary Guarantors Party thereto, the lenders party thereto,
JPMorgan Chase Bank, N.A., as Administrative Agent, Credit Suisse Securities (USA) LLC, as Syndication Agent, and Banc of America Securities LLC and Citigroup Global Markets Inc., as Co-Documentation Agents (the “Credit Agreement”)
or any similar agreement or arrangement; provided, however, that no amendment to the Credit Agreement or any similar agreement or arrangement will restrict the activities of the Company contemplated by this Agreement; and provided
further that nothing shall prohibit the Company from becoming a Restricted Subsidiary of Navistar in the event Navistar’s Percentage Interest increases beyond fifty percent (50%) pursuant to Article 3, nor impact Navistar’s
obligations under the Credit Agreement or any similar agreement or arrangement as a result thereof. 
 15.3 Certain Exceptions to Non-Competition
Covenants. 
  

	 	15.3.1	Development, Manufacture and Assembly. Nothing contained in this Agreement shall prohibit a Member from developing, manufacturing or assembling Medium Duty Trucks, Heavy Duty
Trucks, JV Truck Components and replacement parts therefor anywhere in the ROW on its own or from developing JV Truck Replacement Parts for Legacy Trucks; provided, that, subject to Sections 2.3.5 and 10.3.4.3 and this
Section 15.3, such Member shall not market or sell any such Medium Duty Trucks, Heavy Duty Trucks, JV Truck Components or replacement parts (other than Common Parts or JV Truck Components utilized by other products in addition to Medium
Duty Trucks or Heavy Duty Trucks; provided, that the volume of such Common Part or JV Truck Component sales made by such Member must be reasonable in relation to the volume of such other products sold by such Member prior to such Common Part
or JV Truck Component sales in the relevant geographic area) anywhere in the ROW. 

  

 67 

	 	15.3.2	Sales of Loose Engines and Transmissions by Members. Notwithstanding anything to the contrary in this Agreement, each Member and its 5% Affiliates shall be permitted to
market and sell at any time to any Person engines and transmissions for use in Medium Duty Trucks, Heavy Duty Trucks or any other applications anywhere in the world, including the ROW (whether or not in competition with the Company);
provided, however, that neither Member nor its 5% Affiliates shall be entitled to use any resources of the Company or any JV Dealers to facilitate any such sales, except with the express written Majority Consent of the Board.
Notwithstanding the foregoing, Navistar and its 5% Affiliates may sell such engines and replacement parts therefor (to the extent permitted pursuant to Section 15.3.3) through Navistar dealers and JV Dealers Affiliated with Navistar
dealers without Board approval and without paying the Company any fee therefor; provided, however, that Navistar and its 5% Affiliates may not sell such engines or replacement parts therefor through Caterpillar dealers or JV Dealers
Affiliated with Caterpillar dealers. 

  

	 	15.3.3	Sales of Engine and Transmission Parts by Members. 

  

	 	15.3.3.1	Notwithstanding anything to the contrary in this Agreement: 

 15.3.3.1.1 Caterpillar and its 5% Affiliates may market and sell at any time in any ROW country Caterpillar Brand engine and transmission parts except to the extent that (x) Caterpillar reasonably believes that
such engine or transmission parts will ultimately be used in an engine or transmission included in a JV Truck sold by the Company or (y) the volume of engine or transmission part sales made by Caterpillar and its 5% Affiliates is not reasonable
in relation to the volume of engines or transmissions sold by Caterpillar and its 5% Affiliates prior to such engine or transmission part sales in the relevant geographic area; 
 15.3.3.1.2 Navistar and its 5% Affiliates may market and sell at any time in any ROW country Navistar Brand engine and transmission parts
except to the extent that (x) Navistar reasonably believes that such engine or transmission parts will ultimately be used in an engine or transmission included in a JV Truck sold by the Company or (y) the volume of engine or transmission
part sales made by Navistar and its 5% Affiliates is not reasonable in relation to the volume of engines or transmissions sold by Navistar and its 5% Affiliates prior to such engine or transmission part sales in the relevant geographic area; and

 15.3.3.1.3 if any of the permitted sales by Caterpillar and Navistar, as described in Sections 15.3.3.1.1 and
15.3.3.1.2, are made by the Company (rather than by Caterpillar, Navistar, or their respective 5% Affiliates, as applicable), and the Company reasonably believes that such engine or transmission parts will ultimately be used in an engine or
transmission not used in a JV Truck, all profits or losses arising from the Company’s sale shall be entirely for the account of Caterpillar or Navistar, respectively, and shall be transferred to Caterpillar or Navistar, respectively.

  

 68 

	 	15.3.3.2	Other than existing arrangements set forth on Schedule 15.3.3.2, Caterpillar, Navistar and their 5% Affiliates shall not market or sell any engine or transmission parts to
any third party at any price that is lower than the price at which Caterpillar, Navistar or their 5% Affiliates has sold such engine or transmission parts to the Company within the immediately prior one hundred and eighty (180) days from such
sale. 

  

	 	15.3.3.3	The Company and each Member shall adopt and implement policies, processes, and systems to (i) monitor, to the extent practicable, the end-user customers to which Caterpillar
Brand engine or transmission parts and Navistar Brand engine or transmission parts (as applicable) are sold, and (ii) encourage such Member’s dealers to sell Caterpillar Brand engine or transmission parts or Navistar Brand engine or
transmission parts (as applicable) to end-user customers for use only in trucks other than JV Trucks sold by the Company. If, at any time during the term of this Agreement, either Member reasonably believes in good faith that the other Member’s
dealers have, in fact, sold engine or transmission parts to end-user customers for use in JV Trucks sold by the Company, (A) the other Member shall cooperate with such Member in furtherance of investigating such matter and, subject to
applicable law, taking appropriate corrective actions, and (B) in the event that a material amount of such sales did, in fact, occur, bring such matter to the Board to determine any appropriate remediation action it deems necessary.

  

	 	15.3.3.4	Caterpillar and its 5% Affiliates and Navistar and its 5% Affiliates shall not promote or market actions, programs, or tools specifically designed to take business away from a JV
Dealer. 

  

	 	15.3.4	Legacy Warranty Obligations. Notwithstanding anything to the contrary in this Agreement, each Member shall be permitted to fulfill its legacy warranty obligations with
respect to any Medium Duty Trucks, Heavy Duty Trucks and replacement parts therefor sold by such Member in any Non-Core ROW Country prior to the Legacy Country Commencement Date with respect to such country. Such Member may engage the Company
pursuant to a sales and service agreement to supply replacement parts to assist such Member in fulfilling its legacy warranty obligations. 

  

	 	15.3.5	 Certain Ancillary Functions. Notwithstanding anything to the contrary in this Agreement, none of remanufacturing products and services, logistics services or
financing services shall be deemed to be subject to any of the restrictions contained in this Section 15, and each Member and its 5% Affiliates shall be 

  

 69 

	 	 
permitted to engage in any and all such activities, and provide any and all such products and services to any third party, for its own account;
provided, however, that during any period while Caterpillar Financial or Navistar Financial is retained by the Company to provide any financing services in connection with the Business, such Person shall be permitted to provide
financing in connection with products and services of any third party (other than the Company) that are in competition with the products and services of the Company only to the extent that (a) such financing is not systematically offered as
part of a formal, ongoing finance program of such Person but instead is provided on an ad hoc basis, and (b) such type of financing is also made available by such Person to JV Dealers and end-user customers of the Company in connection with
products and services of the Company, including both Caterpillar Truck Models and Navistar Truck Models and JV Truck Replacement Parts therefor. 

  

	 	15.3.6	Notwithstanding anything to the contrary in this Agreement, each of Caterpillar and Navistar shall be permitted to develop, design, test, manufacture, assemble, brand, market, sell
(including providing purchase financing to customers for), and distribute and provide product support for (including providing replacement parts for), vehicles that are not Medium Duty Trucks or Heavy Duty Trucks. 

  

	 	15.3.7	Notwithstanding anything to the contrary in this Agreement, Blue Diamond will be permitted to continue to develop and manufacture anywhere in the world and, as set forth below,
market and sell in the ROW Medium Duty Trucks of the types marketed and sold by Blue Diamond as of January 1, 2009, or replacement models of such types of Medium Duty Trucks and replacement parts therefor; provided, that such Medium Duty
Trucks and replacement parts therefor are sold exclusively to (i) Navistar, or its 5% Affiliates, for subsequent resale in the ROW only to the Company; or (ii) Ford Motor Company, or its 5% Affiliates, which shall be permitted to sell such
trucks and parts anywhere in the world (provided that such trucks are not Navistar Brand); and provided further that the volume of replacement parts sales made by Blue Diamond in the ROW is reasonable in relation to the volume of Medium Duty Trucks
sold by Blue Diamond. 

  

	 	15.3.8	Notwithstanding anything to the contrary in this Agreement, Navistar and its 5% Affiliates will be permitted to: 

  

	 	15.3.8.1	 solely through the Mahindra JV or any of its direct or indirect wholly owned subsidiaries, develop, design, test, manufacture, assemble, brand, market, sell, and
distribute and provide product support for (including providing replacement parts and service for), Medium Duty Trucks and Heavy Duty Trucks in the ROW (including granting a license or sublicense of Intellectual Property of Navistar or its
Affiliates to the Mahindra JV in connection therewith) solely to the extent expressly permitted pursuant to the 

  

 70 

	 	 
Mahindra JV Agreement as in effect on the date of the Mahindra Waiver; provided, however, that without the Majority Consent of the Board, no
such activities shall be assisted by or made through a JV Dealer Affiliated with a Caterpillar dealer or a Caterpillar dealer; provided, further, however, that Navistar and its Affiliates hereby covenant and agree not to consent
to any amendment to the Mahindra JV Agreement that would adversely effect the Company in any manner, unless the Board by Majority Consent agrees to such amendment; 

  

	 	15.3.8.2	begin or continue (as applicable) to develop, manufacture, market and sell a low-cab over engine truck anywhere in the ROW through a joint venture with American LaFrance, LLC;
provided, that the Company will (without a requirement for Board approval), unless the Board otherwise determines, distribute such trucks in the ROW and earn and retain all profits in connection with such distribution, other than such
countries in which American LaFrance, LLC has distribution capabilities as of the date of this Agreement; and provided further that the Company shall also have the right to develop, manufacture, market and sell a low-cab over engine truck anywhere
in the ROW, which truck may compete with such American LaFrance, LLC joint venture truck; 

  

	 	15.3.8.3	other than with respect to Navistar components and replacement parts for sale or assembly in the ROW, continue to perform kitting services through Newstream Enterprises, LLC to the
extent such services are permitted to be performed under the Operating Agreement for Newstream Enterprises, LLC, dated January 28, 2003, by and among Remanufacturing Sales Company and International Truck and Engine Corporation in effect as of
January 1, 2009; 

  

	 	15.3.8.4	engage in any of the activities described in the last sentence of Section 2.3.7.2 in accordance with the terms and conditions thereof; 

  

	 	15.3.8.5	until the Core ROW Country Launch Date, continue to sell Medium Duty Trucks, Heavy Duty Trucks, and replacement parts therefor in each of the Core ROW Countries consistent with past
practice prior to the Effective Date (but subject to Navistar’s export parts policy to be implemented on October 1, 2009); 

  

	 	15.3.8.6	 until the NITSA Business Acquisition Date, continue to conduct NITSA’s business (including with respect to the sale of Medium Duty Trucks, Heavy Duty Trucks,
and replacement parts therefor in South Africa, Swaziland, Mozambique, Namibia and the Democratic Republic of Congo) in accordance with the NITSA 

  

 71 

	 	 
Acquisition Agreement for so long as such agreement remains in effect and following such time, if any, that the NITSA Acquisition Agreement is terminated for
any reason, in a manner consistent with past practice prior to the Effective Date (but subject to Navistar’s export parts policy to be implemented on October 1, 2009); 

  

	 	15.3.8.7	 following the Core ROW Country Launch Date, continue to sell to IVECO, solely for resale in Australia, (A) Navistar 7600, 9200, and 9900 truck models, and kits
and first fit components therefor, solely to the extent such sales are required to continue under the Supply, Technical Assistance and License Agreement as in effect on January 1, 2009, and (B) Navistar replacement parts for such truck
models (but such replacement parts shall only be sold in quantities commensurate with the quantity of such truck models sold by Navistar to IVECO through October 9, 2010); provided that, in no event shall sales of (x) Navistar 7600
truck models or kits or first fit components therefor continue beyond December 31, 2009, (y) Navistar 9200 and 9900 truck models or kits or first fit components therefor continue beyond October 9, 2010, or (z) replacement parts
for such truck models continue beyond the earlier of the tenth (10th) anniversary of the Effective Date or such shorter period as Navistar may negotiate with IVECO. Navistar and the Company shall enter into either a mutually-acceptable sales and service agreement pursuant to which the Company shall
supply replacement parts to assist Navistar in fulfilling its warranty and other contractual obligations to IVECO or a mutually-acceptable arrangement for the Company to sell replacement parts to IVECO; 

  

	 	15.3.8.8	 following the Core ROW Country Launch Date, continue to sell replacement parts for Medium Duty Trucks and Heavy Duty Trucks (but, for the avoidance of doubt, not
Medium Duty Trucks or Heavy Duty Trucks) to each Navistar dealer in Brazil as of the Effective Date solely to the extent such sales are required to continue under applicable Brazilian law. Navistar and its 5% Affiliates shall adopt and implement
policies, processes, and systems to (i) monitor, to the extent practicable, the end-user customers to which such replacement parts are sold, and (ii) encourage Navistar’s dealers in Brazil to sell such replacement parts to end-user
customers for use only in trucks other than JV Trucks sold by the Company or its direct or indirect wholly owned subsidiaries. If, at any time during the term of this Agreement, Caterpillar or the Company reasonably believes in good faith that
Navistar’s dealers in Brazil have, in fact, sold such replacement parts to end-user customers for use in JV Trucks sold by the Company or its direct or indirect wholly owned subsidiaries, (A)

  

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the Members shall cooperate with each other in furtherance of investigating such matter and, subject to applicable law, taking appropriate corrective
actions, and (B) in the event that a material amount of such sales did, in fact, occur, bring such matter to the Board to determine any appropriate remediation action it deems necessary; and 

  

	 	15.3.8.9	sell Medium Duty Trucks, Heavy Duty Trucks, and replacement parts therefor to customers in the Core Countries but only to the extent the order for any such truck or part
(i) was received prior to the Core ROW Country Launch Date or, with respect to South Africa, the NITSA Business Acquisition Date and specified delivery following the Core ROW Country Launch Date or the NITSA Business Acquisition Date, as
applicable, and (ii) is consistent with Navistar’s past practice prior to the Effective Date (but subject to Navistar’s export parts policy to be implemented on October 1, 2009). 

 15.4 Acquisition of Publicly-Traded Securities. Notwithstanding anything to the contrary in this Agreement, the acquisition by a Member or its 5% Affiliates of
the publicly-traded equity securities or debt securities of any Person that competes with the Business shall be permitted to the extent that (a) such acquisition does not result, directly or indirectly, in the ownership by such Member or its 5%
Affiliates of five percent (5%) or more of any class of publicly-traded equity securities or debt securities of such Person, and (b) the investment in such Person held by such Member is purely passive, and such Member has no governance or
control rights in such Person (including any right to appoint any member of the board of such Person, the right to appoint any officer of such Person, or the right to veto any significant decision of such Person) other than the right to cast votes
(on a one share, one vote basis) with respect to the publicly traded equity securities or debt securities of such Person held by such Member. 
 15.5
Member Acquisition. Notwithstanding anything to the contrary in this Agreement, if a Member or any of its 5% Affiliates desires to acquire a business or operation of any Person that competes with the Business, whether through the purchase of
stock or other voting securities, merger, consolidation, or other similar corporate transformation, or through the purchase of assets (a “Member Acquisition”), and the operation of the business acquired by reason of the Member
Acquisition is not otherwise permitted by the provisions of this Agreement, such Member may make the Member Acquisition so long as, no later than the consummation of the Member Acquisition, such Member sends the Company a written offer to sell to
the Company that portion of the business acquired through the Member Acquisition that competes with the Business (the “Competing Operations”). For purposes of this Section 15.5, all decisions of the Company shall be made
by the other Member’s Representatives (acting and deciding on behalf of the Company). If the Company desires to pursue such offer, the Company must so notify such Member in writing no later than twenty (20) calendar days after receiving
such written offer. If the Company submits such written notice to such Member in accordance with the immediately preceding sentence, the Company and such Member shall attempt in good faith to agree upon, no later than twenty (20) calendar days
after the Company submits such written notice to such Member, (a) those particular assets, liabilities and operations of the business acquired through 

  

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the Member Acquisition that constitute the Competing Operations, and (b) a purchase price for the Competing Operations. If the Company and such Member
agree in writing upon the items referenced in the immediately preceding sentence within such twenty (20) calendar day period, the Company shall be deemed to have accepted such offer on the date such agreement is reached. If the Company and such
Member fail to so agree upon such items within such twenty (20) calendar day period, the Company and such Member shall seek to agree upon and retain an Independent Valuation Firm pursuant to the selection procedures set forth in
Section 23.16 to (i) identify those particular assets, liabilities and operations of the business acquired through the Member Acquisition that constitute the Competing Operations, and (ii) determine a purchase price that is
equal to the Fair Market Value of the Competing Operations taking into account, among other factors that are relevant to the Independent Valuation Firm’s determination of such Fair Market Value, the purchase price of the Member Acquisition. The
decision of the Independent Valuation Firm shall be final and binding on, and nonappealable by, the Company and such Member. The Independent Valuation Firm shall act as an expert and not as an arbitrator. The fees and expenses of the Independent
Valuation Firm shall be paid one half by each Member (and not, for the avoidance of doubt, one half by the Company and such Member). No later than thirty (30) calendar days after the Company and such Member receive written notice from the
Independent Valuation Firm setting forth its determination of the items referenced in clauses (i) and (ii) above, the Company must send a written notice to such Member indicating if the Company desires to accept such offer at
the purchase price stipulated by the Independent Valuation Firm. If the Company decides to accept such offer, either at the purchase price that is agreed upon by the Company and such Member or at the purchase price determined by the Independent
Valuation Firm, the sale of the Competing Operations by such Member to the Company shall be consummated no later than forty-five (45) calendar days after the date on which the Company is deemed to have accepted such offer; provided, that
the closing shall in no event occur earlier than three (3) Business Days after receipt of all approvals required from, and expiration of all waiting periods (including waiting periods under the Hart-Scott-Rodino Act) imposed by, any
governmental authorities in connection with the purchase and sale. If the Company decides not to accept such offer, then (A) if the Competing Operations did not generate greater than $300,000,000 in revenues during the calendar year preceding
the year in which the Member Acquisition was consummated, then such Member shall be permitted to retain, own, and operate the Competing Operations (provided, that the Competing Operations shall not be permitted to use, and shall not be
provided access to, any Intellectual Property of the Company), and (B) if the Competing Operations generated greater than $300,000,000 in revenues during the calendar year preceding the year in which the Member Acquisition was consummated, then
such Member shall divest the Competing Operations no later than six (6) months after the date on which such Member receives notice that the Company decided to not accept such offer. If such Member retains the Competing Operations in accordance
with clause (A) of the immediately preceding sentence and continues to own and operate such Competing Operations on the third (3rd) anniversary of the consummation of the Member Acquisition, the Company shall have the option (but not the obligation) to
purchase the Competing Operations from such Member. If the Company desires to pursue such option, the Company must so notify such Member in writing no later than twenty (20) calendar days after the third (3rd) anniversary of the consummation of the Member Acquisition. The terms of such option shall be the same as the
terms of the first option set forth above in this Section 15.5. 
  

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 15.6 Additional Agreements. The Members agree and acknowledge that the restrictions contained in this
Section 15 are reasonable in scope and duration in light of the nature, size and location of the Business. The Members further agree and acknowledge that the restrictions contained in this Section 15 are necessary to protect
each Member’s significant investment in the Business, including its goodwill. The Members are of equal bargaining power. It is the desire and intent of the Members that the provisions of this Section 15 be enforced to the fullest
extent permissible under applicable law. If all or part of this Section 15 is held invalid, illegal, or incapable of being enforced by any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain
in full force and effect. If any part of this Section 15 is held to be excessively broad as to duration, scope, activity, or subject, such part shall be construed by limiting and reducing it so as to be enforceable to the maximum extent
permissible under applicable law. 
 16. INDEMNIFICATION FOR DEALER LIABILITY 
 16.1 Dealer Liability Indemnities. Navistar shall defend, indemnify, and hold harmless each Company Indemnified Person and each Caterpillar Indemnified Person against any and all claims made by any dealer or
distributor of Navistar or its Affiliates, in such Person’s capacity as a dealer or distributor of Navistar or its Affiliates, against any Company Indemnified Person or Caterpillar Indemnified Person for lost revenues, lost profits, injunctive
relief, or any other damages arising from business activities related to this Agreement (and the Related Agreements); except for claims for product liability related to the safety or performance of a particular product, the defense and indemnity of
which, if any, shall be handled pursuant to the terms of the applicable Related Agreements or otherwise shall be negotiated by the relevant parties on a case-by-case basis. Caterpillar shall defend, indemnify and hold harmless each Company
Indemnified Person and each Navistar Indemnified Person against any and all claims made by any dealer or distributor of Caterpillar or its Affiliates, in such Person’s capacity as a dealer or distributor of Caterpillar or its Affiliates,
against any Company Indemnified Person or Navistar Indemnified Person for lost revenues, lost profits, injunctive relief, or any other damages arising from business activities related to this Agreement (and the Related Agreements); except for claims
for product liability related to the safety or performance of a particular product, the defense and indemnity of which, if any, shall be handled pursuant to the terms of the applicable Related Agreements or otherwise shall be negotiated by the
relevant parties on a case-by-case basis. 
 16.2 Indemnification Procedures. 
  

	 	16.2.1	 Notice of Dealer Claims; Assumption of Defense. The Indemnified Person shall give notice as promptly as is reasonably practicable, but in any event no later
than ten (10) Business Days after receiving notice thereof, to the Indemnifying Person of the assertion of any claim, or the commencement of any suit, action, or proceeding, by any Person not a party hereto in respect of which indemnity may be
sought under the terms of Section 16.1 (which notice shall specify in reasonable detail the nature and amount of such claim); provided, that the failure of the Indemnified Person to give such notice shall not relieve the
Indemnifying Person of its obligations under this Section 16 except to the extent (if any) that the Indemnifying Person shall have been 

  

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prejudiced thereby. The Indemnifying Person may, at its own expense, (a) participate in the defense of any such claim, suit, action, or proceeding, and
(b) upon notice to the Indemnified Person, at any time during the course of any such claim, suit, action, or proceeding, assume the defense thereof with counsel of its own choice and in the event of such assumption, shall have the exclusive
right, subject to clause (a) in the proviso in Section 16.2.2, to settle or compromise such claim, suit, action, or proceeding. If the Indemnifying Person assumes such defense, the Indemnified Person shall have the right (but
not the duty) to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by the Indemnifying Person. Whether or not the Indemnifying Person chooses to defend or prosecute any such claim, suit,
action, or proceeding, all of the Parties shall cooperate, at the Indemnifying Person’s cost and expense, in the defense or prosecution thereof. 

  

	 	16.2.2	Settlement or Compromise. Any settlement or compromise made or caused to be made by the Indemnified Person (unless the Indemnifying Person has the exclusive right to settle
or compromise under clause (b) of Section 16.2.1) or the Indemnifying Person, as the case may be, of any such claim, suit, action, or proceeding of the kind referred to in Section 16.2.1 shall also be binding upon
the Indemnifying Person or the Indemnified Person, as the case may be, in the same manner as if a final judgment or decree had been entered by a court of competent jurisdiction in the amount of such settlement or compromise; provided, that
(a) no obligation, restriction, or Liability shall be imposed on the Indemnified Person as a result of such settlement or compromise without its prior written consent, which consent shall not be unreasonably withheld, conditioned, or delayed,
and (b) the Indemnified Person shall not compromise or settle any claim, suit, action, or proceeding without the prior written consent of the Indemnifying Person, which consent shall not be unreasonably withheld, conditioned, or delayed.

 16.3 Liability Insurance. The Company shall maintain in effect during the term of this Agreement and for a period of no less than
five (5) years after the occurrence of the Triggering Event, appropriate liability (including product liability) insurance policies with products and completed operations coverage with an internationally recognized carrier. The Company’s
purchase of any such liability insurance policy shall be subject to the approval of the Board by Majority Consent. Such policies shall require the Company to receive not less than thirty (30) calendar days’ prior written notice of any
modification or cancellation of such policies. 
 17. REPRESENTATIONS AND WARRANTIES 
 17.1 Representations and Warranties of Members. As of the Effective Date, each Member hereby represents and warrants to the Company and to the other Member that: 
  

	 	17.1.1	Such Member understands and acknowledges that its Membership Interest has not been, and shall not be, registered under the Securities Act or any state securities laws;

  

 76 

	 	17.1.2	Such Member understands and acknowledges that its Membership Interest may not be sold or otherwise assigned unless it is registered under the Securities Act and applicable state
securities laws, or unless such sale or assignment is offered pursuant to an exemption from such registration requirements; 

  

	 	17.1.3	The obligations and restrictions contained in this Agreement regarding the purchase, sale, transfer, or assignment of Membership Interests create an economic risk that such Member
is capable of bearing; 

  

	 	17.1.4	Such Member is acquiring its Membership Interest for investment and not with a view to the resale or distribution thereof; 

  

	 	17.1.5	Such Member has the full power and authority to enter into this Agreement, to subscribe for and purchase or otherwise hold the Membership Interest to be issued to or held by it, to
perform its obligations hereunder, and to consummate the transactions contemplated hereby; 

  

	 	17.1.6	Such Member’s purchase of its Membership Interest and its execution and delivery of this Agreement have been duly authorized by all necessary corporate action on its behalf,
and this Agreement shall be, upon execution and delivery on behalf of such Member, its legal, valid, and binding obligation, enforceable in accordance with its terms, except as such enforceability may be affected by (a) applicable bankruptcy,
reorganization, insolvency, moratorium, and other similar laws and court decisions of general application, including statutory and other laws regarding fraudulent or preferential transfers relating to, limiting, or affecting the enforcement of
creditors’ rights generally, and (b) general principles of equity, including the effect of such general principles of equity upon the specific enforceability of any of the remedies, covenants, or other provisions contained herein and
therein, and their application (regardless of whether enforcement is considered in a proceeding at law or in equity) as such principles relate to, limit, or affect the enforcement of creditors’ rights generally; 

  

	 	17.1.7	The execution and delivery by such Member of this Agreement, the consummation of the transactions contemplated in accordance with the terms of this Agreement, and the performance of
such Member’s obligations hereunder shall not conflict with, or result in any violation of or default under, any provision of any governing instrument applicable to such Member, or any agreement or other instrument to which such Member is a
party or by which such Member or any of its properties are bound, or any permit, franchise, judgment, decree, statute, rule, or regulation applicable to such Member or its properties; 

  

	 	17.1.8	 Such Member has such knowledge and experience in financial affairs that it is capable of evaluating the merits and risks of purchasing and holding its Membership
Interest, and it has not relied in connection with this investment 

  

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upon the identity of or advice from the other Member or upon any representations, warranties or agreements other than those set forth in this Agreement and
the Related Agreements; 

  

	 	17.1.9	Such Member’s financial situation is such that it can afford to bear the economic risk of holding its Membership Interest for an indefinite period of time, and it can afford to
suffer the complete loss of its investment in the Company; and 

  

	 	17.1.10	Such Member is not relying on the Company, the other Member, any Representative, or any director, officer, employee, manager, agent, or Affiliate of any of such Person, with respect
to the United States and foreign income tax considerations involved in purchasing, holding, and disposing of Membership Interests. 

 17.2
Survival of Warranties. All representations and warranties contained in Section 17.1 shall survive the execution and delivery of this Agreement. 
 18. CAPITAL ACCOUNTS; DISTRIBUTIONS; TAX MATTERS; RECORDS 
 18.1 Capital Account Maintenance. A separate “Capital
Account” shall be maintained for each Member under Section 18.2 for the full term of this Agreement in accordance with the requirements of Section 704(b) of the Code and the Treasury Regulations thereunder. A Member’s
Capital Account shall be determined as provided in Section 18.2. 
 18.2 Capital Account Balances. Pursuant to the basic rules of
Section 1.704-1(b)(2)(iv) of the Treasury Regulations, the balance of the Capital Account of each Member shall be: 
  

	 	18.2.1	initially, the amount of such Member’s initial Capital Contribution described in Section 3.1.1; 

  

	 	18.2.2	increased by the amount of any additional money contributed by such Member to the capital of the Company; 

  

	 	18.2.3	increased by the Gross Asset Value (determined without regard to Section 7701(g) of the Code) of each property contributed by such Member to the capital of the Company and
decreased by the Gross Asset Value (determined without regard to Section 7701(g) of the Code) of each property distributed to such Member by the Company; 

  

	 	18.2.4	increased by the amount of any Company liabilities assumed by such Member or that are secured by any property distributed to such Member; 

  

	 	18.2.5	increased by the amount of each item of Profit allocated to such Member pursuant to this Agreement; 

  

	 	18.2.6	decreased by the amount of each item of Loss allocated to such Member pursuant to this Agreement; 

  

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	 	18.2.7	decreased by the amount of any liabilities of such Member assumed by the Company or that are secured by any property contributed by such Member to the Company; and

  

	 	18.2.8	otherwise adjusted in accordance with the other capital account maintenance rules of Section 1.704-1(b)(2)(iv) of the Treasury Regulations. 

  

	 	18.2.9	If any interest in the Company is transferred in accordance with the terms of this Agreement, the transferee will succeed to the Capital Account of the transferor to the extent it
relates to the transferred interest. 

 18.3 Allocation of Profits and Losses. 
  

	 	18.3.1	A special allocation of gross income (e.g., gross sales revenues) shall be allocated to Navistar in an amount equal to the cumulative cash distributions to which Navistar is
entitled pursuant to Section 18.4.1, less any amount of gross income previously allocated to Navistar pursuant to this Section 18.3.1. Any prior allocation of gross income allocated pursuant to this Section 18.3.1
that is later offset by Losses, deductions or other specially allocated losses pursuant to Section 18.5 shall be replenished dollar-for-dollar with subsequent allocations of gross income. 

  

	 	18.3.2	A special allocation of Losses shall be made to Navistar in an amount equal to the cumulative cash contributions which Navistar paid pursuant to Section 2.3.5.3.

  

	 	18.3.3	After taking into account Sections 18.3.1 and 18.3.2 in calculating Profits and Losses, Profits and Losses shall be allocated to the Members in proportion to their
respective Percentage Interests. 

 18.4 Distributions. The Company shall, no later than thirty (30) calendar days following the
end of each fiscal half year (unless the Board determines by Majority Consent that a distribution shall be at another time), distribute to the Members any cash of the Company not necessary for its financial obligations or working capital needs or
for funding its then current Annual Business Plan and its then current Rolling Business Plan, unless the Board determines otherwise by Majority Consent. Except as otherwise provided elsewhere in this Agreement or as otherwise determined by the Board
by Majority Consent, each distribution of cash by the Company shall be made to the Members in accordance with the provisions of this Section 18.4. 
  

	 	18.4.1	Distributions of cash by the Company to Navistar in accordance with Section 2.3.5 shall be allocated to Navistar (and not to Caterpillar). Any U.S. or non-U.S.
withholding tax liability resulting from such distributions will be considered withholding on behalf of Navistar and will reduce such distributions by the amount of the associated withholding tax liability; provided, however, that to
the extent the Company or any of its subsidiaries receives a refund of any such withholding taxes paid, such refund shall be promptly remitted to Navistar. 

  

 79 

	 	18.4.2	All other distributions shall be made to the Members in proportion to their respective Percentage Interests at the time of such distribution (without preference to any Member).

 18.5 Regulatory Allocations. 
  

	 	18.5.1	Limit on Allocation of Losses. Notwithstanding anything to the contrary in Section 18.3, Losses allocated pursuant to Section 18.3 shall not exceed
the maximum amount that can be so allocated without causing any Member to have an Adjusted Capital Account Deficit at the end of any allocation period. In the event that some but not all of the Members would have Adjusted Capital Account Deficits as
a consequence of an allocation pursuant to Section 18.3, the limitation set forth in this Section 18.5.1 shall be applied on a Member-by-Member basis so as to allocate the maximum permissible Losses to each Member under
Treasury Regulations Section 1.704-1(b)(2)(ii)(d). 

  

	 	18.5.2	Partnership Minimum Gain Chargeback. If there is a net decrease in Partnership Minimum Gain during any taxable year or other period for which allocations are made, before any
other allocation under this Agreement, each Member will be specially allocated items of Company income and gain for that period (and, if necessary, subsequent periods) in proportion to, and to the extent of, an amount equal to such Member’s
share of the net decrease in Partnership Minimum Gain during such year determined in accordance with Treasury Regulations Section 1.704-2(g)(2). The items to be allocated will be determined in accordance with Treasury Regulations
Section 1.704-2(g). This Section 18.5.2 is intended to comply with the Minimum Gain chargeback requirements of the Treasury Regulations, shall be interpreted consistently therewith. 

  

	 	18.5.3	Member Minimum Gain Chargeback. Notwithstanding any other provision of this Section 18.5, if during a Fiscal Year there is a net decrease in any Member Minimum
Gain, each Member with a share of such Member Minimum Gain, determined in accordance with Treasury Regulation Section 1.704-2(i)(5) as of the beginning of such Fiscal Year, shall be allocated items of income and gain for the Fiscal Year (and,
if necessary, succeeding Fiscal Years) in the manner and to the extent provided in Treasury Regulation Section 1.704-2(i)(4). This Section 18.5.3 is intended to comply with the partner nonrecourse debt minimum gain chargeback
requirement of Treasury Regulation Section 1.704-2(i)(4) and shall be interpreted consistently therewith. 

  

	 	18.5.4	 Qualified Income Offset. After applying Sections 18.5.2 and 18.5.3, if a Member unexpectedly receives any adjustment, allocation or
distribution described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4) through 1.704-1(b)(2)(ii)(d)(6), items of income and gain of the Company shall be specially allocated to the Member in an amount sufficient to eliminate, to the

  

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extent required by Treasury Regulations, the Adjusted Capital Account Deficit of such Member as quickly as possible. This Section 18.5.4 is
intended to constitute a “qualified income offset” provision within the meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. If a Member otherwise has an Adjusted Capital Account
Deficit, the Member shall be allocated items of income and gain of the Company in an amount sufficient to eliminate such deficit as quickly as possible. 

  

	 	18.5.5	Nonrecourse Deductions. Nonrecourse Deductions for any taxable year or other period for which allocations are made will be allocated among the Members in proportion to their
relative Capital Contributions. 

  

	 	18.5.6	Partner Nonrecourse Deductions. Notwithstanding anything to the contrary in this Agreement, any Partner Nonrecourse Deductions for any taxable year or other period for which
allocations are made will be allocated to the Member who bears the economic risk of loss with respect to the Partner Nonrecourse Debt to which the Partner Nonrecourse Deductions are attributable in accordance with Regulations
Section 1.704-2(i). 

  

	 	18.5.7	Code Section 754 Adjustments. To the extent an adjustment to the adjusted tax basis of any Company asset under Code Sections 734(b) or 743(b) is required to be taken
into account in determining Capital Accounts under Treasury Regulations Section 1.704-1(b)(2)(iv)(m), the amount of the adjustment to the Capital Accounts will be treated as an item of gain (if the adjustment increases the basis of the
asset) or loss (if the adjustment decreases the basis), and the gain or loss will be specially allocated to the Members in a manner consistent with the manner in which their Capital Accounts are required to be adjusted under Treasury Regulations
Section 1.704-1(b)(2(iv)(m). 

  

	 	18.5.8	Interpretation. The foregoing provisions of this Section 18.5 are intended to comply with Treasury Regulations Section 1.704-1(b) and 1.704-2 and any
successor Treasury Regulations, and shall be interpreted consistently with this intention. Any terms used in such provisions that are not specifically defined in this Agreement shall have the meaning, if any, given such terms in the Treasury
Regulations cited above. 

  

	 	18.5.9	Curative Allocations. If any allocation of income, gain, loss, deduction, or any other item is made pursuant to this Section 18.5 (the “Regulatory
Allocations”), then, to the extent consistent with Section 704 of the Code and the Treasury Regulations thereunder, the Regulatory Allocations shall be taken into account in allocating other items of income, gain, loss, and deduction
among the Members, if any (in the current and all subsequent Fiscal Years), so that, to the extent possible, the net effect of such allocations of other items and the Regulatory Allocations to each Member shall be to implement the allocation scheme
described in Section 18.3. 

  

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 18.6 Section 704(c) of the Code; Other Tax Allocation Rules. 
  

	 	18.6.1	In accordance with Section 704(c) of the Code and the Treasury Regulations thereunder, items of taxable income, gain, loss, and deduction with respect to any property
contributed to the capital of the Company shall, solely for income tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such property to the Company for federal income tax purposes and the
property’s Gross Asset Value on the date of its contribution to the Company, using any method selected by the Members under Treasury Regulations Section 1.704-3. 

  

	 	18.6.2	In the event the book value of any Company asset is adjusted pursuant to clauses (b) or (d) of the definition of Gross Asset Value in Section 24,
subsequent allocations of items of taxable income, gain, loss, and deduction with respect to such asset shall, solely for income tax purposes, take account of any variation between the adjusted basis of such asset for federal income tax purposes and
its book value in the same manner as under Section 704(c) of the Code and the Treasury Regulations thereunder. 

  

	 	18.6.3	The Profits, Losses and other items of the Company shall be allocated according to the Members’ varying Percentage Interests during the Fiscal Year, using the daily proration
method except that such items arising from transactions outside the ordinary course of business shall be allocated to the date on which such transactions occur. 

  

	 	18.6.4	Except as otherwise provided in this Agreement, each item of Company income, gain, loss, deduction, or credit shall be allocated among the Members for tax purposes in the same
manner that the corresponding items of Profits and Losses have been allocated among the Members’ respective Capital Accounts for the Fiscal Year in question. 

  

	 	18.6.5	The Parties intend that all transactions between the Company and another Party shall be conducted on an arm’s-length basis. 

  

	 	18.6.6	Upon the distribution to the Members of property other than cash, the difference between the Gross Asset Value of such property and its book value shall be treated as an item of
gain or loss, as the case may be, and shall be allocated pursuant to the provisions of Section 18.3 and 18.5 in the same manner that gain or loss on a sale of such property would have been allocated. 

  

	 	18.6.7	The Members may vary the allocations set forth in this Section 18 as determined to be necessary or appropriate to cause the allocations set forth herein to be consistent
with applicable provisions of the Code and the Treasury Regulations; provided, that such variance does not affect distributions. 

 18.7
Allocation of Nonrecourse Liabilities. Solely for the purpose of allocating excess Nonrecourse Liabilities of the Company among the Members in connection with the 

  

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determination of the Members’ adjusted tax bases in their respective Membership Interests in accordance with Section 752 of the Code and the
Treasury Regulations from time to time promulgated thereunder, the Members shall allocate excess Nonrecourse Liabilities in the manner determined by the Members. 
 18.8 Partnership Treatment. No election shall be made by the Company to be excluded from the application of the provisions of Subchapter K of the Code, or to be treated as an association taxable as a corporation, and all Members
agree to treat the Company as a partnership for all federal, state, and local income tax purposes unless otherwise specifically required by law. 
 18.9
Tax Return. The Company shall prepare at the expense of the Company and shall, no later than April 30 of each Fiscal Year, provide to each Member a draft of the Company’s federal and state income tax returns for the Company’s
prior Fiscal Year for (a) review and comment by each Member, and (b) approval by each Member. The Members (i) agree to prepare their federal and state income tax returns in a manner consistent with the Company’s federal and state
income tax returns approved by both Members, and (ii) shall agree on the establishment or material modification of tax reporting positions, including making, revoking or declining to make tax elections in connection with the preparation and
filing of the Company’s or any subsidiary’s federal, state, local or applicable foreign tax returns. 
 18.10 Tax Matters Partner; Tax
Elections. 
  

	 	18.10.1	 Navistar is hereby appointed the “Tax Matters Partner” of the Company for all purposes pursuant to Sections 6221 through 6231 of the Code. Subject
to the immediately following sentence, the Tax Matters Partner shall (a) furnish to each Member affected by an audit of the Company income tax returns a complete copy of each notice or other communication received from the Internal Revenue
Service or applicable state authority within five (5) calendar days of receipt (except such notices or communications as are sent directly to such Member), (b) keep such Member reasonably informed of any administrative or judicial
proceedings, as required by Section 6623(g) of the Code, (c) allow each Member an opportunity to participate in all such administrative and judicial proceedings, and (d) advise and consult with each Member (and assignee) as to
proposed adjustments to the federal or state income tax returns of the Company. The Tax Matters Partner shall act at the direction of the Members and in any event shall not have the authority, unless such action has been approved by the Members, to
take any material action or make any material decision, including (i) entering into a settlement agreement with the Internal Revenue Service which purports to bind Members other than the Tax Matters Partner, (ii) filing a petition as
contemplated in Section 6226(a) or 6228 of the Code, (iii) intervening in any action as contemplated in Section 6226(b) of the Code, (iv) filing any request contemplated in Section 6227(b) of the Code, or (v) entering
into an agreement extending the period of limitations as contemplated in Section 6229(b)(1)(B) of the Code. The Company shall not be obligated to pay any fees or other compensation to the Tax Matters Partner in its capacity as such, but the
Company shall reimburse the Tax Matters Partner for all reasonable out-of-pocket costs and expenses 

  

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(including attorneys’ and other professional fees) incurred by it in its capacity as Tax Matters Partner. The Company shall defend, indemnify, and hold
harmless the Tax Matters Partner against any and all Liabilities sustained or incurred as a result of any act or decision concerning Company tax matters and within the scope of such Member’s responsibilities as Tax Matters Partner, so long as
such act or decision was done or made in good faith and does not constitute gross negligence or willful misconduct. 

  

	 	18.10.2	If there is a distribution of Company property as described in Code Section 734 or if there is a transfer of a Company interest as described in Code Section 743 then, upon
the written request of any Member, the Company shall file an election pursuant to Code Section 754, in accordance with the procedures set forth in the applicable Treasury Regulations to adjust the basis of Company properties. Upon the request
of the Company, each Member shall provide the Company with all the information not then possessed by the Company necessary to give effect to any election under Code Section 754. 

 18.11 Accounting Records. The Company shall maintain true and accurate business and accounting records of all of its operations in accordance with GAAP, and, to
the extent applicable, the specific, reasonable requirements of the Members. Each Member, and its duly authorized representatives, shall have the right, at any time, to inspect, copy, and audit all of the business records and accounts of the
Company. 
 18.12 Reports. The Company shall have monthly unaudited financial statements prepared in accordance with GAAP no later than fifteen
(15) Business Days after the end of each month. Unless otherwise determined by the Board by Majority Consent, the Company shall arrange for its annual financial statements to be audited by an independent auditor no later than sixty
(60) calendar days after the end of each Fiscal Year. Furthermore, upon Caterpillar’s request prior to October 1 of each year, the Company shall arrange for its financial statements relating to the twelve (12) month period ended
each December 31 to be audited by an independent auditor no later than sixty (60) calendar days following such December 31. All of the financial statements described in the two immediately preceding sentences shall include all
year-end accruals required by GAAP. All of the financial statements of the Company shall be prepared so as to enable each Member to satisfy all of the financial reporting requirements to which such Member is subject. From and after the Effective
Date until such time as the Board changes the independent auditor of the Company pursuant to the next sentence, the initial independent auditor of the Company shall be KPMG LLP. The Company and Navistar will instruct KPMG LLP to permit
Caterpillar’s independent auditor, at Caterpillar’s sole cost and expense, to review KPMG LLP’s audit records for the Company. The selection, change, or termination of the Company’s independent auditor shall require the Majority
Consent of the Board. Furthermore, the selection or change of the accounting methods, methodologies, practices, procedures, or policies utilized by the Company (except for those changes that are required by any new accounting standards or any
regulatory requirements), and the approval of the annual financial statements for the twelve (12) month period ended at the end of each Fiscal Year and the financial statements for the twelve (12) month period ended each December 31,
in each case, shall require the Majority Consent of the Board. 
  

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 18.13 Other Tax Information. The Company shall provide to each Member such other information as is reasonably
necessary or reasonably requested by such Member to enable such Member to comply with such Member’s tax obligations. In addition, each Member shall provide to the Company such information as is reasonably necessary by the Company to enable the
Company to comply with its tax obligations. 
 18.14 Sarbanes-Oxley Act; Internal Controls. The Company shall employ internal controls and related
processes that are no less rigorous than the internal controls and related processes that are required in order for each Member to be in full compliance with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002. 
 18.15 Tax Decisions by the Members. Representatives selected by Navistar and Caterpillar from their respective tax departments shall act on behalf of the Members
with respect to tax decisions that are expressly to be made by the Members under this Agreement. Pursuant to Section 5.13.37, the Board is authorized to resolve any disputes regarding such tax decisions. 
 19. TRANSFER OF MEMBERSHIP INTERESTS 
 19.1 Restriction on
Transfers. 
  

	 	19.1.1	Generally. 

 19.1.1.1 Except as set forth in
Section 3.2.5 and Section 19.2, neither Member shall, without the prior written consent of the other Member, which consent may be withheld in the sole discretion of the other Member, Transfer, pledge, or in any manner
encumber its Membership Interest, and any Transfer, pledge, or encumbrance of a Membership Interest by a Member made without such consent shall be null and void and of no effect whatsoever and shall not be recorded upon the books of the Company.

 19.1.1.2 If a Transfer of all or part of a Member’s Membership Interest results in the termination of the Company under Code
Section 708, then such new or resulting Member shall have indemnified each remaining Member (or agreed to indemnify each such remaining Member in writing reasonably acceptable to such remaining Member), in an amount equal to the Net Present
Value of Increased Tax Liability, if any, applicable to such remaining Member, as determined by the Board in its reasonable discretion. 
  

	 	19.1.2	Restrictions on Transfers to Certain Competing Persons; Right of First Refusal. If Section 19.1.1 is determined to be invalid or unenforceable in any situation,
then except as set forth in Section 3.2.5 and Section 19.2, the Parties instead shall adhere to this Section 19.1.2 with respect to such situation. 

 19.1.2.1 Restriction on Transfers to Certain Competing Persons. Caterpillar shall not, without the prior written consent of Navistar, which
consent may be withheld in the sole discretion of Navistar, Transfer its Membership Interest to, or pledge or in any manner encumber its Membership Interest in favor of, any Navistar Competing Person. Navistar shall not, without the prior written
consent of Caterpillar, which consent may be withheld in the sole discretion of Caterpillar, Transfer its Membership Interest to, or pledge or in any manner encumber its Membership Interest in favor of, any Caterpillar Competing Person. 

  

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Any Transfer, pledge or encumbrance of a Membership Interest by a Member made without such consent shall be null and void and of no effect whatsoever and
shall not be recorded upon the books of the Company. 
 19.1.2.2 Right of First Refusal for all other Transfers. If at any time a
Member (the “Offeror”) desires to Transfer or offer for a bona fide sale any or all of such Member’s Membership Interest to any third party or receives a bona fide offer from a prospective purchaser to purchase any or all of
such Member’s Membership Interest and such Member desires to Transfer such portion or all of such Membership Interest (the “Offered Membership Interest”), and such Transfer or offer is not otherwise subject to
Section 19.1.2.1, the other Member (the “Beneficiary”) shall have the right of first refusal with respect to the Offered Membership Interest as provided by this Section 19.1.2.2 (the “Right of First
Refusal”). 
  

	 	A.	Offer. The Offeror shall first furnish to the Beneficiary a document setting forth the proposed price for the applicable Membership Interest and other material terms and
conditions of the proposed Transfer or sale, together with an irrevocable offer to sell to the Beneficiary all and not less than all of the Offered Membership Interest on such price, terms and conditions (the “Offer”). If the
Offeror receives a bona fide offer to purchase the Offered Membership Interest from a proposed purchaser, the Offer shall also include the name and address of the proposed purchaser of the Offered Membership Interest. If the Offer specifies
consideration other than cash, the Beneficiary shall be entitled to pay the Fair Market Value of such consideration in cash, which Fair Market Value shall be determined by the Board by Majority Consent. 

  

	 	B.	Exercise of Right of First Refusal. For a period of thirty (30) calendar days after the receipt by the Beneficiary of the Offer, the Beneficiary shall have the right, at
its option, to purchase all, but not less than all, of the Offered Membership Interest. To validly exercise the Right of First Refusal, the Beneficiary shall notify the Offeror in writing of such exercise within such thirty (30) calendar day
period. 

  

	 	C.	 Closing. If the Beneficiary validly exercises its Right of First Refusal, the closing of the sale and purchase of the Offered Membership Interest shall take
place at the offices of the Beneficiary’s counsel forty-five (45) calendar days after the date of the Beneficiary’s acceptance of the Offer; provided, that the closing shall in no event occur earlier than three
(3) Business Days after receipt of all approvals required from, and expiration of all waiting periods (including waiting periods under the Hart-Scott-Rodino 

  

 86 

	 	 
Act) imposed by, any governmental authorities in connection with the purchase and sale. At closing, (a) the Offeror shall represent and warrant to the
Beneficiary that the Beneficiary is receiving good and marketable legal and beneficial title to such Offered Membership Interest, free and clear of any liens, pledges, claims, security interests, encumbrances, and similar interests of any kind
whatsoever (other than restrictions imposed by the Securities Act, applicable state securities laws, and this Agreement), which representations and warranties shall be the sole representations and warranties required of the Offeror, and (b) the
Beneficiary shall deliver to the Offeror the purchase price specified in the Offer in immediately available funds. Notwithstanding anything to the contrary in this Section 19.1.2.2, if the Beneficiary exercises its Right of First Refusal
and, in connection therewith, a governmental authority whose approval is required to consummate the purchase of the Offered Membership Interest fails to approve such transaction or imposes a condition on its approval that, in the reasonable
discretion of the Beneficiary, would make the purchase by it of the Offered Membership Interest impractical or not otherwise in the best interests of the Beneficiary, then the Beneficiary may terminate the purchase of the Offered Membership
Interest, and upon such termination, the Beneficiary shall have no further obligation with respect thereto. 

  

	 	D.	 Failure to Exercise Right of First Refusal. If the Beneficiary does not exercise the Right of First Refusal within the thirty (30) calendar day period
described in Section 19.1.2.2(B), or if the Beneficiary terminates the purchase and sale of the Offered Membership Interest pursuant to the last sentence of Section 19.1.2.2(C), the Offeror shall then have a period of sixty
(60) calendar days from the later of (a) the date on which the Right of First Refusal shall have expired, and (b) if applicable, the date on which the Beneficiary terminates the purchase and sale of the Offered Membership Interest
pursuant to the last sentence of Section 19.1.2.2(C), to consummate the sale of all, but not less than all, of the Offered Membership Interest. Such sale shall be at a price and on other terms that are in the aggregate no more favorable
to the proposed purchaser than as set forth in the Offer. Any third party purchasing such Offered Membership Interest must agree in writing to be bound by all of the terms and conditions of this Agreement. If such sale is not consummated within such
sixty (60) calendar day period, the Offeror shall then 

  

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be required to offer the Offered Membership Interest to the Beneficiary pursuant to the Right of First Refusal before making such sale to any Person.

  

	 	19.1.3	Right of First Refusal for all Transfers. If both Sections 19.1.1 and 19.1.2 are determined to be invalid or unenforceable in any situation, then except as
set forth in Section 3.2.5 and Section 19.2, the Parties shall adhere to Section 19.1.2.2 with respect to such situation, it being understood that the Parties shall so adhere to Section 19.1.2.2
irrespective of whether or not the relevant third party or prospective purchaser is a Caterpillar Competing Person or a Navistar Competing Person. 

  

	 	19.1.4	Right of First Refusal for Transfers to Certain Competing Persons. If each of Sections 19.1.1, 19.1.2, and 19.1.3 are determined to be invalid or
unenforceable in any situation, then except as set forth in Section 3.2.5 and Section 19.2, the Parties shall adhere to Section 19.1.2.2 with respect to such situation, it being understood that the Parties shall
so adhere to Section 19.1.2.2 only if, (a) where the Offeror is Caterpillar, the relevant third party or prospective purchaser is a Navistar Competing Person, and (b) where the Offeror is Navistar, the relevant third party or
prospective purchaser is a Caterpillar Competing Person. 

 19.2 Permitted Transfers to Subsidiaries. Notwithstanding
Section 19.1, any Member may Transfer all, but not less than all, of its Membership Interest to any one of its direct or indirect wholly owned subsidiaries without the consent of the other Member; provided, that (a) such
transferred Membership Interest shall remain subject to all of the terms and conditions of this Agreement, (b) such direct or indirect wholly owned subsidiary shall become liable for all of the transferring Member’s obligations under this
Agreement and shall agree in writing to be bound by all of the terms and conditions of this Agreement, (c) unless the transferee has a net worth equal to or greater than the net worth of the transferring Member, the transferring Member
guarantees all financial obligations of the transferee, (d) such transferee is obligated to Transfer such Membership Interest back to the transferring Member if the transferee ceases to be a direct or indirect wholly owned subsidiary of the
transferring Member, and (e) no further Transfer of such transferred Membership Interest shall be permitted unless such Transfer complies with all of the terms and conditions of this Agreement. 
 19.3 Absolute Prohibitions on Transfers. Notwithstanding anything to the contrary in this Agreement, a Member may not Transfer, pledge, or in any manner encumber
its Membership Interest during any period while such Member is in Material Breach. 
 20. DISPUTES AND DEADLOCKS 
 In the event (a) of a dispute, controversy, or claim between the Members under or in any manner related to this Agreement other than a Company Deadlock (a
“Company Dispute”), or (b) that any matter that is submitted to a vote by the Members or the Board, after good faith discussion and negotiation among the Members or the Representatives, as applicable, does not receive the
required vote to approve such matter and is not withdrawn from consideration by the Member or 

  

 88 

 
the Representative(s) submitting such matter to a vote upon the failure to receive such approval (a “Company Deadlock”), the Members shall
meet and work together in good faith and use commercially reasonable efforts to expeditiously resolve the Company Dispute or the Company Deadlock internally by reference to their respective senior management promptly following written notice given
by either Member to the other Member; provided, however, that the foregoing requirement to use commercially reasonable efforts shall not apply to any Company Dispute or Company Deadlock over matters relating to the adoption or
amendment of an Annual Business Plan or a Rolling Business Plan. If the Members are unable to internally resolve the Company Dispute or the Company Deadlock within thirty (30) calendar days after such notice, then at anytime thereafter:

 In the event of any Company Dispute, each Party shall be entitled to exercise any and all rights and remedies available to such Party under law, in equity
or otherwise, subject to the terms of Sections 23.12, 23.13, 23.14 and 23.15. 
 In the event of a Company Deadlock the
matter shall be deemed not approved and withdrawn from consideration (it being understood that with respect to Section 5.13.18, such in-kind contribution shall not be made) and the Company shall continue operating in the ordinary course
of business. 
 In the event of a Company Deadlock with respect to an Annual Business Plan pursuant to Section 5.13.1, the Company shall continue
operating under the Rolling Business Plan most recently approved by the Board. If, after the date that is sixty (60) months following the Effective Date, upon the expiration of the then current Rolling Business Plan, the Board shall not have
adopted a new Annual Business Plan for the following Fiscal Year or a new Rolling Business Plan to commence the following Fiscal Year, this Agreement shall be deemed terminated (as provided in Section 21.2.5). For the avoidance of doubt,
if the Board shall not have adopted a new Rolling Business Plan covering the Fiscal Year ending October 31, 2014, the Company shall operate under the final ten (10) months of the Initial Rolling Business Plan during the period from
November 1, 2013, through the date that is sixty (60) months following the Effective Date. 
 21. TERM; TERMINATION; DISTRIBUTIONS ON
TERMINATION 
 21.1 Term. This Agreement shall become effective on the Effective Date and shall continue in full force and effect, unless earlier
terminated in accordance with this Agreement, for a period of twenty-five (25) years from the Effective Date; provided, that (a) upon the twenty (20) year anniversary of the Effective Date, the Members may agree in writing to
extend the term of this Agreement by another five (5) years beyond the initial twenty five (25) year term, and (b) every five (5) years after such twenty (20) year anniversary, the Members may agree in writing to further
extend the term of this Agreement for another five (5) years beyond the then extended term. 
 21.2 Termination. This Agreement shall be
terminated: 
  

	 	21.2.1	at any time by the mutual written consent of the Members; 

  

 89 

	 	21.2.2	at the option of a Member, if the continued membership of the other Member in the Company is terminated under applicable law; 

  

	 	21.2.3	at the option of a Member, if a final and non-appealable decree of judicial dissolution is entered against the other Member or against the Company by a court of competent
jurisdiction, in each case, under applicable law; 

  

	 	21.2.4	at the option of a Member, if the other Member is in Material Breach and has failed to cure such Material Breach within ninety (90) calendar days of notice thereof from the
non-breaching Member, provided, that such notice is delivered in writing by the non-breaching Member within ninety (90) calendar days of the date such Member first obtains knowledge that the other Member is in Material Breach;
provided, that such ninety (90) calendar day cure period shall be extended by an additional ninety (90) calendar days if (a) such Material Breach does not arise out of clause (a), clause (b) or clause
(c) of the definition of “Material Breach,” (b) such Material Breach by its nature cannot be cured within ninety (90) calendar days but is capable of being cured within one hundred eighty (180) calendar days,
(c) the breaching Member is using and continues to use best efforts to effect a cure, and (d) the non-breaching Member reasonably believes that such Material Breach shall be cured within the ninety (90) calendar day extension period;
and provided further that, notwithstanding the foregoing, if such Material Breach arises out of clause (c) of the definition of “Material Breach,” the Member that is in Material Breach shall be entitled to cure such Material
Breach only within ten (10) calendar days of notice thereof from the non-breaching Member; and provided further that, if the other Member is in Material Breach and such Material Breach by its nature cannot be cured, the non-breaching Member may
terminate this Agreement at any time without the lapse of any cure period; 

  

	 	21.2.5	after the date that is sixty (60) months following the Effective Date, automatically in the event that (a) there is a Company Deadlock with respect to
Section 5.13.1, (b) the three (3) year period of committed funding set forth in the then current Rolling Business Plan has expired, as applicable, and (c) the Board has not adopted, by Majority Consent, a new Annual
Business Plan for the following Fiscal Year or a new Rolling Business Plan to commence the following Fiscal Year; 

  

	 	21.2.6	at the option of either Member, if the Percentage Interest in the Company held by either Member is less than twenty-five percent (25%); or 

  

	 	21.2.7	at the option of a Member, if the other Member undergoes a Change in Control. 

 (the exercise of any of the foregoing, a “Termination Event”). Notwithstanding anything to the contrary in this Agreement, and for the avoidance of doubt, a breach of any provision of this Agreement by a Party shall not
entitle such breaching Party to terminate this Agreement. 
  

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 21.3 Dissolution and Liquidation. 
  

	 	21.3.1	Subject to Section 21.6, upon the expiration or termination of this Agreement, the President, as liquidating trustee, shall immediately commence to wind up the
Company’s affairs and liquidate the assets of the Company. In the event the President is unable to perform in the capacity of liquidating trustee or in the case of a dissolution of the Company pursuant to Section 21.2.3, the
liquidating trustee shall be a Person approved by the Members 

  

	 	21.3.2	Profits and Losses from an event causing dissolution pursuant to Section 21.2 shall be allocated among the Members so that after such allocations and the other
allocations under this Agreement, to the maximum extent possible the final Capital Account balances of the Members are at levels which would permit liquidating distributions, if made in accordance with such final Capital Account balances, to be
equal to the distributions that will occur under Section 21.4.3. To the extent that the allocation provisions of this Agreement would not produce such target Capital Account balances, the Members agree to take such actions as are
reasonably necessary to amend such allocation provisions to produce such balances so long as such amendments are permissible under the applicable tax law. 

  

	 	21.3.3	Upon the occurrence of the Triggering Event, the Company shall assign and transfer to each Member, and each Member shall assume from the Company, fifty percent (50%) of the
Company’s outstanding warranty liability provided pursuant to the terms and conditions of sale with respect to any JV Truck Model or any JV Truck Replacement Part (in each case, regardless of brand). For the avoidance of doubt, in addition to a
dissolution of the Company, this Section 21.3.3 applies to the closing of any sale and purchase of the Membership Interest pursuant to the Buy/Sell Option or the Buy-Out Interest Option pursuant to Section 21.6.4.

 21.4 Proceeds in Liquidation. Subject to Section 21.5, proceeds in liquidation shall be applied: 
  

	 	21.4.1	First, to the payment and discharge of all of the Company’s debts and liabilities to creditors other than the Members and their Affiliates; 

  

	 	21.4.2	Second, to the payment and discharge of any debts owed by the Company to the Members and their Affiliates; and 

  

	 	21.4.3	 Finally, between the Members in accordance with Section 18.4; provided, that if the Fair Market Value of all assets that are to be
distributed to a Member pursuant to Sections 18.4 and 21.5 (other than Sections 21.5.1 and 21.5.2) exceeds the Fair Market Value of all assets that would have been distributed to such Member pursuant to
Section 18.4 (other than assets described in Sections 21.5.1 and 21.5.2), such Member shall make a Capital Contribution to the Company in an amount equal to the Fair Market Value of assets (other 

  

 91 

	 	 
than assets described in Sections 21.5.1 and 21.5.2) to be distributed to such Member over the Fair Market Value of such assets that would have
been received under Section 18.4 and such Capital Contribution shall be distributed to the other Member in liquidation of the other Member’s Membership Interest. For convenience of the Members and the Company, the Member obligated
to make a Capital Contribution shall make the payment directly to the other Member. 

 21.5 Distribution of Assets on Dissolution of the
Company. In the event of a dissolution of the Company, to the extent permitted by applicable law, the assets of the Company shall be used to satisfy the Company’s obligations under Section 21.4 in the following order of
precedence: (a) first, money, accounts receivable, chattel paper, documents, instruments, and investment property shall be used to satisfy amounts owing under Sections 21.4.1 and 21.4.2, (b) second, to the
extent amounts remain owing under Sections 21.4.1 and 21.4.2, the remaining assets of the Company (other than Intellectual Property and the agreements between the Company and JV Dealers) shall be used to satisfy amounts owing
under Sections 21.4.1 and 21.4.2, and (c) third, to the extent amounts remain owing under Sections 21.4.1 and 21.4.2, the Company owned Intellectual Property and the agreements between the Company and JV
Dealers shall be used to satisfy amounts owing under Sections 21.4.1 and 21.4.2. To the extent assets of the Company remain after satisfying all amounts owing under Sections 21.4.1 and 21.4.2, such assets shall be
distributed pursuant to Section 21.4.3 as follows: 
  

	 	21.5.1	Intellectual Property. The Company shall distribute (a) the Company-owned trademarks, service marks and trade dress unique to Caterpillar Truck Models to Caterpillar,
(b) the Company-owned trademarks, service marks and trade dress unique to Navistar Truck Models to Navistar, and (c) all other Company-owned Intellectual Property to both Members as joint owners (it being understood the terms of such joint
ownership are set forth in Section 14.6). 

  

	 	21.5.2	 JV Dealer Agreements. The Company shall distribute (a) each JV Dealer agreement pertaining to the sale of Caterpillar Truck Models to Caterpillar and
(b) each JV Dealer agreement pertaining to the sale of Navistar Truck Models to Navistar (in each case, irrespective of whether the JV Dealer party to such agreement is Affiliated with a Caterpillar dealer or a Navistar dealer). For the
avoidance of doubt, the Company shall distribute all JV Dealer agreements to the Members in accordance with the immediately preceding sentence, and the Company shall not be required to terminate any JV Dealer agreement prior to making such
distribution. Notwithstanding the preceding two (2) sentences in this Section 21.5.2, if a Termination Event occurs prior to the third (3rd) anniversary of the Effective Date, then the Company shall not distribute its JV Dealer agreements to the Members but instead
shall cause each of its JV Dealer agreements to be terminated in connection with the dissolution of the Company; provided, however, that (i) if the Termination Event occurs pursuant to Section 21.2.4 (in connection
with a Material Breach by a Member), Section 21.2.6 (in connection with a decrease of the Percentage Interest held by a Member) or Section 21.2.7 (in connection with a 

  

 92 

	 	 
Change in Control of a Member), then each JV Dealer agreement pertaining to the sale of JV Truck models of the other Member’s brand (irrespective of
whether the JV Dealer party to such agreement is Affiliated with a Caterpillar dealer or a Navistar dealer) shall not be terminated by the Company but instead shall be distributed to such other Member (it being understood, for the avoidance of
doubt, that in each of the circumstances described in this clause (i), the JV Dealer agreements pertaining to the sale of JV Truck models of the brand of the Member that committed such Material Breach, whose Percentage Interest decreased or
that underwent such a Change in Control (irrespective of whether the JV Dealer party to such agreement is Affiliated with a Caterpillar dealer or a Navistar dealer) shall be terminated by the Company in connection with the dissolution of the Company
and shall not be distributed to such Member), and (ii) in any event, each JV Dealer agreement pertaining to the sale of Navistar Truck Models with a JV Dealer that is Affiliated with a Navistar dealer that was serving as a Navistar dealer as of
the Effective Date shall not be terminated by the Company but instead shall be distributed to Navistar. 

  

	 	21.5.3	Assets other than Intellectual Property and JV Dealer Agreements. 

  

	 	21.5.3.1	The Members shall use their commercially reasonable efforts to agree, as promptly as practicable after the occurrence of a Termination Event, on an allocation between the Members of
the remaining assets of the Company other than the Intellectual Property of the Company and the agreements between the Company and JV Dealers (the “Remaining Assets”). If the Members agree on an allocation between the Members of any
of the Remaining Assets within forty (40) calendar days after the occurrence of a Termination Event, such assets (the “Non-Disputed Remaining Assets”) shall be so distributed to the Members as so agreed.

  

	 	21.5.3.2	 If the Members cannot agree on an allocation of all of the Remaining Assets between the Members within forty (40) calendar days after the occurrence of a
Termination Event, the Members shall promptly retain an Independent Valuation Firm. If the Members cannot agree on an Independent Valuation Firm within forty five (45) calendar days after the occurrence of a Termination Event, the Members shall
cause an Independent Valuation Firm to be appointed pursuant to the procedures set forth in Section 23.16. The Independent Valuation Firm shall determine, in accordance with the procedures set forth in Section 23.16, the Fair
Market Value of each of (a) the Non-Disputed Remaining Assets and (b) those Remaining Assets for which the Members cannot agree on an allocation between the Members (the “Disputed Remaining Assets”). No later than ten
(10) calendar days after the Independent Valuation Firm renders its decision as to the Fair 

  

 93 

	 	 
Market Value of the items set forth in the preceding sentence, each Member shall deliver a written notice to the Company indicating if such Member offers to
make a Capital Contribution in order to receive a distribution of all, but not less than all, of the Disputed Remaining Assets from the Company based on the Fair Market Value of such assets (as determined pursuant to the preceding sentence).

  

	 	21.5.3.3	If one Member (but not the other Member) offers to make a Capital Contribution in order to receive a distribution of all, but not less than all, of the Disputed Remaining Assets
from the Company based on the Fair Market Value of such assets, the Company shall distribute such assets to such Member and, if applicable, the Member shall make a Capital Contribution determined under Section 21.4.3.

  

	 	21.5.3.4	If both Members offer to make a Capital Contribution in order to receive a distribution of all, but not less than all, of the Disputed Remaining Assets from the Company based on the
Fair Market Value set forth in Section 21.5.3.2, then on the day that is ten (10) calendar days after the end of the aforementioned ten (10) calendar day period, the Independent Valuation Firm shall determine the value of the
Disputed Remaining Assets to the Members pursuant to a one (1) bid, sealed first price reserve auction in which each Member shall submit a bid and the winning, highest-bidding Member shall be obligated to make a Capital Contribution based on
the price of the Disputed Remaining Assets equal to the winning, highest bid (it being understood that the reserve price in such auction shall be deemed to be equal to such Fair Market Value). The Company shall distribute the Disputed Remaining
Assets to the winning, highest- bidding Member and, if applicable, such Member shall make a Capital Contribution determined under Section 21.4.3. 

  

	 	21.5.3.5	If neither Member offers to acquire all (but not less than all) of the Disputed Remaining Assets at such Fair Market Value, the Company shall sell such assets to the highest bidding
third party (which such third party may not be an Affiliate of either Member) and shall thereafter distribute the proceeds of such sale in accordance with Section 21.4.3 (taking into account (a) the Fair Market Value of the
Non-Disputed Remaining Assets and (b) the distribution of such assets to the Members in accordance with Section 21.4.3). 

 21.6 Buy-Out Interest Option and Buy/Sell Option. 
  

	 	21.6.1	Buy-Out Interest Option on Termination Event. 

  

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 21.6.1.1 Determination of Fair Value of Company. Notwithstanding anything to the contrary in this
Agreement, if a Termination Event occurs pursuant to Section 21.2.4 (in connection with a Material Breach by a Member) or Section 21.2.6 (in connection with a decrease of the Percentage Interest held by a Member), the other
Member (the “Buy-Out Member”) may, by delivering written notice to such Member (the “Termination Event Member”) within thirty (30) calendar days of the occurrence of the Termination Event, require that
(a) the process of dissolving and liquidating the Company pursuant to Sections 21.3, 21.4, and 21.5 be suspended pending the implementation of the terms of this Section 21.6, and (b) the Members attempt in
good faith to agree on the Fair Value of the Company. If the Members have not agreed on the Fair Value of the Company within thirty (30) calendar days after the date on which the Buy-Out Member delivers such written notice to the Termination
Event Member, the Members shall promptly retain a nationally recognized investment banking firm. In the absence of mutual agreement on an investment banking firm within forty (40) calendar days after the date on which the Buy-Out Member
delivers such written notice to the Termination Event Member, each Member shall designate within five (5) calendar days thereafter a nationally recognized investment banking firm for the sole purpose of selecting an investment banking firm to
determine the Fair Value of the Company pursuant to this Section 21.6.1.1. If a Member fails to designate such an investment banking firm within such five (5) calendar day period, then the other Member’s designated investment
banking firm shall be deemed the mutually agreed investment banking firm to serve for all purposes of this Section 21.6.1.1. If each Member designates an investment banking firm within such five (5) calendar day period, then the two
(2) such designated firms shall promptly select a nationally recognized investment banking firm to determine the Fair Value of the Company pursuant to this Section 21.6.1.1, which investment banking firm shall be independent from
the two (2) designated investment banking firms and the Members. The investment banking firm selected pursuant to this Section 21.6.1.1 is referred to as the “Investment Banker.” After the selection of the
Investment Banker, (a) each Member shall submit to the Investment Banker in writing, not later than ten (10) calendar days after the Investment Banker is retained, its position with respect to the Fair Value of the Company, together with
such supporting documentation as it deems necessary or as the Investment Banker requests, (b) the Company shall promptly make available to the Investment Banker such financial and other information and documentation as is requested by the
Investment Banker to make its determination, and (c) the Investment Banker shall, within fifteen (15) calendar days after receiving the positions of the Members and the information and documentation requested by the Investment Banker (or
if a Member or the Company fails or refuses to provide such information and documentation within a reasonable period of time, upon the expiration of a reasonable period of time), render its decision as to the Fair Value of the Company, which
decision shall be final and binding on, and nonappealable by, the Members. The Investment Banker shall act as an expert and not as an arbitrator. The fees and expenses of the Investment Banker shall be paid one half by each Member. 
 21.6.1.2 Exercise of Buy-Out Interest Option. The Buy-Out Member shall have the option, but not the obligation (the “Buy-Out Interest
Option”), to purchase from the Termination Event Member, and to require the Termination Event Member to sell to the Buy-Out Member, all (but not less than all) of the Termination Event Member’s Membership Interest in the Company (the
“Buy-Out Interest”) for a purchase price (the “Buy-Out Interest Purchase Price”) equal to the Termination Event Member’s Percentage Interest multiplied by the Fair Value of the Company (as finally
determined pursuant to Section 21.6.1.1). The Buy-Out 

  

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Interest Option shall be exercisable by the Buy-Out Member, in its sole discretion and at its sole option, by delivering written notice (which written notice
shall be irrevocable except as provided in Section 21.6.4) to the Termination Event Member at any time during the period commencing on the date on which the Fair Value of the Company is finally determined pursuant to
Section 21.6.1.1 and ending thirty (30) calendar days after such date (the “Buy-Out Interest Option Period”). Such written notice shall obligate the Termination Event Member to sell and the Buy-Out Member to
purchase the Buy-Out Interest as herein provided. The failure of the Buy-Out Member to deliver the written notice in accordance with the second previous sentence (or the delivery of a written notice by the Buy-Out Member declining to exercise the
Buy-Out Interest Option) shall result in the termination of the Buy-Out Interest Option, and the Termination Event Member shall continue to own the Buy-Out Interest and the Members shall recommence the process of dissolving and liquidating the
Company pursuant to Sections 21.3, 21.4, and 21.5. If the Buy-Out Member validly exercises the Buy-Out Interest Option, (a) the Members shall not recommence the process of dissolving and liquidating the Company pursuant to
Sections 21.3, 21.4, and 21.5, and (b) the Termination Event Member shall sell, and the Buy-Out Member shall purchase, the Buy-Out Interest for the Buy-Out Interest Purchase Price, and an agreement for the sale and purchase
of the Buy-Out Interest shall automatically be deemed to exist between the Termination Event Member and the Buy-Out Member as set forth in this Section 21.6.1.2. 
  

	 	21.6.2	Buy/Sell Option on Change in Control. 

 21.6.2.1
Determination of Value. No later than ten (10) days after a Member undergoes a Change in Control, the Member undergoing such Change in Control (the “Change in Control Member”) shall deliver written notice (a
“Change in Control Notice”) to the other Member (the “Buy/Sell Member”). For a period not to exceed thirty (30) days following the ninety (90) day anniversary of the Change in Control of the Change in
Control Member if the Buy/Sell Member has not yet triggered a termination of this Agreement pursuant to Section 21.2.7, the Buy/Sell Member shall have the option, but not the obligation, to deliver to the Change in Control Member a
written notice (the “Valuation Notice”), indicating a valuation of one hundred percent (100%) of the equity of the Company (the “Valuation Price”) based on which the Buy/Sell Member is committed to either
(i) purchase all (but not less than all) of the Change in Control Member’s Membership Interest in the Company, or (ii) sell all (but not less than all) of the Buy/Sell Member’s Membership Interest in the Company, each transaction
to be effected at the Valuation Price multiplied by the Seller Member’s Percentage Interest. If the Buy/Sell Member fails to provide a Valuation Notice within the thirty (30) day period set forth herein, the Buy/Sell Member shall forever
waive its right to deliver a Valuation Notice or to establish a Valuation Price. For the avoidance of doubt, nothing in this Section 21.6.2 is intended to limit or restrict the Buy/Sell Member’s right to terminate this Agreement
pursuant to Section 21.2.7; provided, however, that from and after the delivery of the Valuation Notice until such time of a termination of the Buy/Sell Option, the Buy/Sell Member shall not be permitted to exercise its
termination rights pursuant to Section 21.2.7. 
 21.6.2.2 Option of Change in Control Member. No later than ninety
(90) days following the Change in Control Member’s receipt of a Valuation Notice, the Change in Control Member shall deliver written notice (the “Buy/Sell Notice”) to the Buy/Sell Member of its decision whether, at its
sole option (but it must select to either purchase or sell), to (i) purchase all (but not less than all) of the Buy/Sell Member’s Membership Interest in the 

  

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Company, or (ii) sell all (but not less than all) of the Change in Control Member’s Membership Interest in the Company, each transaction to be
effected at a purchase price (the “Buy/Sell Purchase Price”) equal to the Valuation Price multiplied by the Seller Member’s Percentage Interest (the “Buy/Sell Option”). 
 21.6.2.3 Agreement for the Sale and Purchase of Membership Interest. If the Change in Control Member elects to purchase the Buy/Sell
Member’s Membership Interest, the Buy/Sell Member shall be required to sell, and the Change in Control Member shall be required to purchase, all of the Buy/Sell Member’s Membership Interest at the Buy/Sell Purchase Price, pursuant to
Section 21.6.4. If the Change in Control Member (i) elects to sell all of its Membership Interest to the Buy/Sell Member or (ii) fails to deliver the Buy/Sell Notice to the Buy/Sell Member within such ninety (90) day
period, the Buy/Sell Member shall be required to purchase, and the Change in Control Member shall be required to sell, all of the Change in Control Member’s Membership Interest at the Buy/Sell Purchase Price, pursuant to
Section 21.6.4. In either event, an agreement for the sale and purchase of the Membership Interest shall be deemed to exist between the Change in Control Member and the Buy/Sell Member as a result of the Buy/Sell Option. 
  

	 	21.6.3	Actions of the Company. During the period (a) commencing on the date on which the Buy-Out Member requires the Members to determine the Fair Value of the Company pursuant
to Section 21.6.1.1 and ending on either (i) the date on which the Buy-Out Interest Option Period lapses (if the Buy-Out Interest Option is not exercised) or (ii) the date on which the closing of the sale and purchase of the
Buy-Out Interest pursuant to a valid exercise of the Buy-Out Interest Option occurs (if the Buy-Out Interest Option is exercised) or (b) commencing on the date of the Change in Control of the Change in Control Member and ending on the earlier
to occur of (i) the date on which the closing of the sale and purchase of the Membership Interest pursuant to the Buy/Sell Option occurs and (ii) if the Buy/Sell Member fails to properly deliver the Valuation Notice, the date that is
thirty (30) days after the ninety (90) day anniversary of the Change in Control of the Change in Control Member, the Members shall cause the Company to (a) operate in the ordinary course of business, (b) not take any action that
would have the primary purpose of altering the Fair Value of the Company, and (c) not incur any additional indebtedness for borrowed money (other than trade payables in the ordinary course of business). 

  

	 	21.6.4	 Closing. The closing of the sale and purchase of the Membership Interest pursuant to the Buy/Sell Option or pursuant to the Buy-Out Interest Option shall
take place at the offices of the Purchaser Member’s counsel forty-five (45) calendar days after either (i) the date of the exercise of the Buy-Out Interest Option or (ii) the date of the exercise of the Buy/Sell Option (or the
date the Buy/Sell Option was to be exercised if the Change in Control Member failed to timely exercise the Buy/Sell Option); provided, that the closing shall in no event occur earlier than three (3) Business Days after receipt of all
approvals required from, and expiration of all waiting periods (including waiting periods under the Hart-Scott-Rodino Act) imposed by, any 

  

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governmental authorities in connection with the purchase and sale. At closing, (a) the Member selling its Membership Interest (the “Seller
Member”) shall represent and warrant to the Member purchasing such Membership Interest (the “Purchaser Member”) that the Purchaser Member is receiving good and marketable legal and beneficial title to the Seller
Member’s Membership Interest, free and clear of any Liens (other than restrictions imposed by the Securities Act, applicable state securities laws, and this Agreement), which representations and warranties shall be the sole representations and
warranties required of the Seller Member, (b) the Seller Member shall deliver to the Purchaser Member resignations from those Representatives the Seller Member has appointed to the Board, and (c) the Purchaser Member shall deliver to the
Seller Member an amount equal to either the Buy-Out Interest Purchase Price (in the case of the purchase of the Membership Interest pursuant to the Buy-Out Interest Option) or the Buy/Sell Purchase Price (in the case of the purchase of the
Membership Interest pursuant to the Buy/Sell Option) in immediately available funds. Subject to the provisions of Section 21.6.5, if the closing occurs, the Members shall not be required to recommence the process of dissolving and
liquidating the Company pursuant to Sections 21.3, 21.4, and 21.5. Notwithstanding anything to the contrary in this Section 21.6.4, if a governmental authority whose approval is required to consummate the
purchase of the Membership Interest fails to approve such transaction or imposes a condition on its approval that, in the sole discretion of the Purchaser Member, would make the purchase by it of the Membership Interest pursuant to the Buy-Out
Interest Option or pursuant to the Buy/Sell Option impractical or not otherwise in the best interests of the Purchaser Member, then the Purchaser Member may terminate the purchase of the Membership Interest by and upon delivery of written notice to
the Seller Member and, solely in the case of the Buy/Sell Option, the Seller Member’s receipt of payment in an amount equal to the Seller Member’s reasonable expenses (or share of the Company’s reasonable expenses) incurred in
connection with the Purchaser Member’s exercise of the Buy/Sell Option, and upon such termination, (i) neither Member shall have any further obligation under this Section 21.6 with respect thereto, (ii) the Seller Member
shall continue to own its Membership Interest, (iii) in the case of a termination of the Buy-Out Interest Option, the Members shall recommence the process of dissolving and liquidating the Company pursuant to Sections 21.3, 21.4,
and 21.5 and (iv) in the case of a termination of the Buy/Sell Option, the Buy/Sell Member shall have the right within thirty (30) days of such termination to trigger a termination of this Agreement pursuant to
Section 21.2.7. 

  

	 	21.6.5	Certain Transactions in Connection with Closing. The following shall occur simultaneously with the closing of the sale and purchase of the Membership Interest pursuant to the
Buy-Out Interest Option or pursuant to the Buy/Sell Option (as provided in Section 21.6.4): 

  

	 	21.6.5.1	The Company shall distribute (a) the Company-owned trademarks, service marks and trade dress unique to the Seller Member’s branded JV Truck Models to the Seller Member,
and (b) joint ownership of all other Company-owned Intellectual Property (other than trademarks, service marks and trade dress unique to the Purchaser Member’s branded JV Truck Models) to the Seller Member as a joint owner with the
Company, all in accordance with the provisions of Section 21.5.1, as if the Company were being dissolved and liquidated (it being understood the terms of such joint ownership are set forth in Section 14.6).

  

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	 	21.6.5.2	Each JV Dealer agreement pertaining to the sale of Seller Member branded JV Truck Models (irrespective of whether the JV Dealer party to such agreement is Affiliated with a
Caterpillar dealer or a Navistar dealer) shall be terminated or distributed to the Seller Member in accordance with the provisions of Section 21.5.2, as if the Company were being dissolved and liquidated. 

  

	 	21.6.5.3	For the avoidance of doubt, all of the non-competition and exclusivity provisions contained in this Agreement (including the provisions of Sections 9.5, 11.1
and 15) shall terminate and be of no further force or effect. 

  

	 	21.6.6	Further Actions by Members. The Members shall take all necessary actions required to give effect to the provisions of this Section 21.6, including (a) the
passing of such Member and Board resolutions of the Company as may be reasonably necessary to facilitate the relevant transaction, and (b) the filing of all necessary notices to and requests for consent of any governmental authorities, and the
Members shall equally share any filing fees required in connection therewith. 

  

	 	21.6.7	Related Agreements. From and after the closing of any sale and purchase of the Membership Interest pursuant to the Buy-Out Interest Option or pursuant to the Buy/Sell Option
(as provided in Section 21.6.4), each Related Agreement between the Seller Member, on the one hand, and the Company or the Purchaser Member, on the other hand, shall be deemed terminated and the Seller Member and the other relevant
Persons shall enter into the applicable Post-Termination Agreements pursuant to Section 21.7. 

 21.7 Post-Termination
Commercial Arrangements. 
  

	 	21.7.1	 Following the distributions provided in Sections 21.4 and 21.5 or the closing of any purchase of the Seller Member’s Membership Interest by
the Purchaser Member pursuant to Section 21.6, Caterpillar, Navistar and, in the case of an exercise of the Buy-Out Interest Option or the Buy/Sell Option, the Company shall execute and deliver to the appropriate counterparty, in the
form thereof heretofore agreed to by the Parties, each agreement in the applicable 

  

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subsection described below, in each case, upon the delivery of a written demand within ninety (90) days following the occurrence of the Triggering Event
by the relevant Member to the other Member that the relevant Persons enter into such agreements (such agreements, collectively, together with those certain post-termination North America COE master development services agreements and
post-termination North America COE truck sales agreements described in Sections 2.3.7.4 and 2.3.8.3 in the forms to be agreed to by both Members, the “Post-Termination Agreements”): 

  

	 	21.7.1.1	If the Company is liquidated pursuant to Section 21.3 at a time when the Company is not manufacturing, assembling or sourcing from third party suppliers JV Trucks, JV
Truck Components or JV Truck Replacement Parts, (a) the Post-Termination License Agreements (subject to the terms of Sections 21.7.2 and 21.7.3), (b) the Post-Termination Master Development Services Agreement,
(c) the Post-Termination Truck Sales Agreement by and between Navistar, as seller, and Caterpillar, as buyer, (d)(i) Post-Termination Master Component Supply Agreement No. 1.5 by and between Caterpillar, as seller, and Navistar, as buyer,
and (ii) Post-Termination Master Component Supply Agreement No. 2.5 by and between Navistar, as seller, and Caterpillar, as buyer, (e)(i) the Post-Termination Master Terms for Purchased Services by and between Caterpillar, as service
provider, and Navistar, as buyer, and (ii) the Post-Termination Master Terms for Purchased Services by and between Navistar, as service provider, and Caterpillar, as buyer, and (f) the Post-Termination Marketing Support Agreement by and
between Navistar and Caterpillar whereby Navistar agrees to pay Caterpillar a marketing support fee; 

  

	 	21.7.1.2	 If the Company is liquidated pursuant to Section 21.3 at a time when the Company is manufacturing, assembling or sourcing from third party suppliers JV
Trucks, JV Truck Components or JV Truck Replacement Parts and all of the Company’s assets to manufacture, assemble or source JV Trucks, JV Truck Components or JV Truck Replacement Parts are distributed to Caterpillar, (a) the
Post-Termination License Agreements (subject to the terms of Sections 21.7.2 and 21.7.3), (b) the Post-Termination Master Development Services Agreement, (c)(i) the Post-Termination Truck Sales Agreement by and between
Navistar, as seller, and Caterpillar, as buyer, if Navistar sold JV Trucks to the Company in the twelve (12) month period immediately prior to the Triggering Event, and (ii) the Post-Termination Truck Sales Agreement by and between
Caterpillar, as seller, and Navistar, as buyer (provided that Caterpillar has acquired a Company production facility producing JV Trucks in the twelve (12) month period immediately prior to the occurrence 

  

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of the Triggering Event), (d)(i) Post-Termination Master Component Supply Agreement No. 1.5 by and between Caterpillar, as seller, and Navistar, as
buyer, (ii) Post-Termination Master Component Supply Agreement No. 2.5 by and between Navistar, as seller, and Caterpillar, as buyer, and (iii) Post-Termination Master Component Supply Agreement No. 8.5 by and between
Caterpillar, as seller, and Navistar, as buyer, if the Company was manufacturing, assembling or sourcing from a third party supplier JV Truck Components or JV Truck Replacement Parts prior to the occurrence of the Triggering Event, and a purchase
schedule for such JV Truck Components or JV Truck Replacement Parts under Master Component Supply Agreement No. 8 was in effect on the date of the Triggering Event, (e)(i) the Post-Termination Master Terms for Purchased Services by and between
Caterpillar, as service provider, and Navistar, as buyer, and (ii) the Post-Termination Master Terms for Purchased Services by and between Navistar, as service provider, and Caterpillar, as buyer, and (f) the Post-Termination Marketing
Support Agreement by and between Navistar and Caterpillar whereby Navistar agrees to pay Caterpillar a marketing support fee; 

  

	 	21.7.1.3	 If the Company is liquidated pursuant to Section 21.3 at a time when the Company is manufacturing, assembling or sourcing from third party suppliers JV
Trucks, JV Truck Components or JV Truck Replacement Parts and all of the Company’s assets to manufacture, assemble or source JV Trucks, JV Truck Components or JV Truck Replacement Parts are distributed to Navistar, (a) the Post-Termination
License Agreements (subject to the terms of Sections 21.7.2 and 21.7.3), (b) the Post-Termination Master Development Services Agreement, (c) the Post-Termination Truck Sales Agreement by and between Navistar, as seller,
and Caterpillar, as buyer, (d)(i) Post-Termination Master Component Supply Agreement No. 1.5 by and between Caterpillar, as seller, and Navistar, as buyer, (ii) Post-Termination Master Component Supply Agreement No. 2.5 by and between
Navistar, as seller, and Caterpillar, as buyer, and (iii) Post-Termination Master Component Supply Agreement No. 9.5 by and between Navistar, as seller, and Caterpillar, as buyer, if the Company was manufacturing, assembling or sourcing
from a third party supplier JV Truck Components or JV Truck Replacement Parts prior to the occurrence of the Triggering Event, and a purchase schedule for such JV Truck Components or JV Truck Replacement Parts under Master Component Supply Agreement
No. 9 was in effect on the date of the Triggering Event, (e)(i) the Post-Termination Master Terms for Purchased Services by and between Caterpillar, as service provider, and Navistar, as buyer, and (ii) the Post-Termination Master Terms
for Purchased Services by and between 

  

 101 

	 	 
Navistar, as service provider, and Caterpillar, as buyer, and (f) the Post-Termination Marketing Support Agreement by and between Navistar and
Caterpillar whereby Navistar agrees to pay Caterpillar a marketing support fee; 

  

	 	21.7.1.4	 If the Company is liquidated pursuant to Section 21.3 at a time when the Company is manufacturing, assembling or sourcing from third party suppliers JV
Trucks, JV Truck Components or JV Truck Replacement Parts and the Company’s assets to manufacture, assemble or source JV Trucks, JV Truck Components or JV Truck Replacement Parts are distributed between both Caterpillar and Navistar,
(a) the Post-Termination License Agreements (subject to the terms of Sections 21.7.2 and 21.7.3), (b) the Post-Termination Master Development Services Agreement, (c)(i) the Post-Termination Truck Sales Agreement by and
between Navistar, as seller, and Caterpillar, as buyer, if (X) Navistar sold JV Trucks to the Company in the twelve (12) month period immediately prior to the Triggering Event or (Y) Navistar has acquired a Company production facility
producing JV Trucks in the twelve (12) month period immediately prior to the occurrence of the Triggering Event, and (ii) the Post-Termination Truck Sales Agreement by and between Caterpillar, as seller, and Navistar, as buyer, if
Caterpillar has acquired a Company production facility producing JV Trucks in the twelve (12) month period immediately prior to the occurrence of the Triggering Event, (d)(i) Post-Termination Master Component Supply Agreement No. 1.5 by
and between Caterpillar, as seller, and Navistar, as buyer, (ii) Post-Termination Master Component Supply Agreement No. 2.5 by and between Navistar, as seller, and Caterpillar, as buyer, and (iii) one of the following:
(x) Post-Termination Master Component Supply Agreement No. 8.5 by and between Caterpillar, as seller, and Navistar, as buyer, if Caterpillar has acquired from the Company the applicable assets necessary to assemble, or source from a third
party supplier, JV Truck Components or JV Truck Replacement Parts; (y) Post-Termination Master Component Supply Agreement No. 9.5 by and between Navistar, as seller, and Caterpillar, as buyer, if Navistar has acquired from the Company the
applicable assets necessary to assemble, or source from a third party supplier, JV Truck Components or JV Truck Replacement Parts; or (z) both Post-Termination Master Component Supply Agreement No. 8.5 and Post-Termination Master Component
Supply Agreement No. 9.5 if Caterpillar and Navistar have each acquired from the Company the applicable assets necessary to assemble, or source from a third party supplier, JV Truck Components or JV Truck Replacement Parts (provided,
however, that in the case of each of clauses (x), (y) and (z), a purchase schedule for such JV Truck Components or 

  

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JV Truck Replacement Parts under Master Component Supply Agreement No. 8 or Master Component Supply Agreement No. 9, as applicable, was in effect
on the date of the Triggering Event), (e)(i) the Post-Termination Master Terms for Purchased Services by and between Caterpillar, as service provider, and Navistar, as buyer, and (ii) the Post-Termination Master Terms for Purchased Services by
and between Navistar, as service provider, and Caterpillar, as buyer, and (f) the Post-Termination Marketing Support Agreement by and between Navistar and Caterpillar whereby Navistar agrees to pay Caterpillar a marketing support fee;

  

	 	21.7.1.5	If Caterpillar is the Purchaser Member pursuant to Section 21.6 at a time when the Company is not manufacturing or assembling JV Trucks, (a) the Post-Termination
License Agreements (subject to the terms of Sections 21.7.2 and 21.7.3), (b) the Post-Termination Master Development Services Agreement, (c) the Post-Termination Truck Sales Agreement by and between Navistar, as seller,
and the Company, as buyer, (d)(i) Post-Termination Master Component Supply Agreement No. 1.5 by and between Caterpillar, as seller, and Navistar, as buyer, (ii) Post-Termination Master Component Supply Agreement No. 2 by and between
Navistar, as seller, and Company, as buyer, (iii) and Post-Termination Master Component Supply Agreement No. 8 by and between Company, as seller, and Navistar, as buyer, if a purchase schedule for such JV Truck Components or JV Truck
Replacement Parts under Master Component Supply Agreement No. 8 was in effect on the date of the Triggering Event, (e)(i) the Post-Termination Master Terms for Purchased Services by and between Company, as service provider, and Navistar, as
buyer, and (ii) the Post-Termination Master Terms for Purchased Services by and between Navistar, as service provider, and Company, as buyer, and (f) the Post-Termination Marketing Support Agreement by and between Navistar and the Company
whereby Navistar agrees to pay the Company a marketing support fee; 

  

	 	21.7.1.6	 If Caterpillar is the Purchaser Member pursuant to Section 21.6 at a time when the Company is manufacturing or assembling JV Trucks, (a) the
Post-Termination License Agreements (subject to the terms of Sections 21.7.2 and 21.7.3), (b) the Post-Termination Master Development Services Agreement, (c)(i) the Post-Termination Truck Sales Agreement by and between
Navistar, as seller, and the Company, as buyer, if Navistar sold JV Trucks to the Company in the twelve (12) month period immediately prior to the Triggering Event, and (ii) the Post-Termination Truck Sales Agreement by and between the
Company, as seller, and Navistar, as buyer, (d)(i) Post-Termination Master Component Supply 

  

 103 

	 	 
Agreement No. 1.5 by and between Caterpillar, as seller, and Navistar, as buyer, (ii) Post-Termination Master Component Supply Agreement No. 2
by and between Navistar, as seller, and Company, as buyer, and (iii) and Post-Termination Master Component Supply Agreement No. 8 by and between Company, as seller, and Navistar, as buyer, if a purchase schedule for such JV Truck
Components or JV Truck Replacement Parts under Master Component Supply Agreement No. 8 was in effect on the date of the Triggering Event, (e)(i) the Post-Termination Master Terms for Purchased Services by and between Company, as service
provider, and Navistar, as buyer, and (ii) the Post-Termination Master Terms for Purchased Services by and between Navistar, as service provider, and Company, as buyer, and (f) the Post-Termination Marketing Support Agreement by and
between Navistar and the Company whereby Navistar agrees to pay the Company a marketing support fee; 

  

	 	21.7.1.7	If Navistar is the Purchaser Member pursuant to Section 21.6 at a time when the Company is not manufacturing or assembling JV Trucks, (a) the Post-Termination
License Agreements (subject to the terms of Sections 21.7.2 and 21.7.3), (b) the Post-Termination Master Development Services Agreement, (c) the Post-Termination Truck Sales Agreement by and between Navistar, as seller,
and Caterpillar, as buyer, (d)(i) Post-Termination Master Component Supply Agreement No. 1 by and between Caterpillar, as seller, and Company, as buyer, (ii) Post-Termination Master Component Supply Agreement No. 2.5 by and between
Navistar, as seller, and Caterpillar, as buyer, and (iii) Post-Termination Master Component Supply Agreement No. 9 by and between Company, as seller, and Caterpillar, as buyer, if a purchase schedule for such JV Truck Components or JV
Truck Replacement Parts under Master Component Supply Agreement No. 9 was in effect on the date of the Triggering Event, (e)(i) the Post-Termination Master Terms for Purchased Services by and between Company, as service provider, and
Caterpillar, as buyer, and (ii) the Post-Termination Master Terms for Purchased Services by and between Caterpillar, as service provider, and Company, as buyer, and (f) at Navistar’s sole option either (X) the Post-Termination
Marketing Support Agreement by and between the Company and Caterpillar whereby the Company agrees to pay Caterpillar a marketing support fee or (Y) the Post-Termination Marketing Support Agreement by and between Navistar and Caterpillar whereby
Navistar agrees to pay Caterpillar a marketing support fee; 

  

	 	21.7.1.8	 If Navistar is the Purchaser Member pursuant to Section 21.6 at a time when the Company is manufacturing or assembling JV 

  

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Trucks, (a) the Post-Termination License Agreements (subject to the terms of Sections 21.7.2 and 21.7.3), (b) the
Post-Termination Master Development Services Agreement, (c)(i) the Post-Termination Truck Sales Agreement by and between Navistar, as seller, and the Caterpillar, as buyer, if Navistar sold JV Trucks to the Company in the twelve (12) month
period immediately prior to the Triggering Event, and (ii) the Post-Termination Truck Sales Agreement by and between the Company, as seller, and Caterpillar, as buyer, (d)(i) Post-Termination Master Component Supply Agreement No. 1 by and
between Caterpillar, as seller, and Company, as buyer, (ii) Post-Termination Master Component Supply Agreement No. 2.5 by and between Navistar, as seller, and Caterpillar, as buyer, and (iii) Post-Termination Master Component Supply
Agreement No. 9 by and between Company, as seller, and Caterpillar, as buyer, if a purchase schedule for such JV Truck Components or JV Truck Replacement Parts under Master Component Supply Agreement No. 9 was in effect on the date of the
Triggering Event, (e)(i) the Post-Termination Master Terms for Purchased Services by and between Company, as service provider, and Caterpillar, as buyer, and (ii) the Post-Termination Master Terms for Purchased Services by and between
Caterpillar, as service provider, and Company, as buyer, and (f) at Navistar’s sole option either (X) the Post-Termination Marketing Support Agreement by and between the Company and Caterpillar whereby the Company agrees to pay
Caterpillar a marketing support fee or (Y) the Post-Termination Marketing Support Agreement by and between Navistar and Caterpillar whereby Navistar agrees to pay Caterpillar a marketing support fee; and 

  

	 	21.7.1.9	In all other events the Members will negotiate in good faith to determine which Post-Termination Agreements the Members and, if applicable, the Company will enter into so as to
effect the original intent of the Members as closely as possible to the end that the transactions contemplated by the Post-Termination Agreements, in the forms thereof heretofore agreed to by the Parties, are fulfilled to the extent possible.

  

	 	21.7.2	 If a Termination Event (other than a Termination Event that occurs pursuant to Section 21.2.7) occurs prior to the third (3rd) anniversary of the Effective Date, the licensee Member requesting that the other Member
enter into a Post-Termination License Agreement shall not be entitled to receive such license unless such Termination Event occurs pursuant to Section 21.2.4 (in connection with a Material Breach by the licensor Member) or
Section 21.2.6 (in connection with a decrease of the Percentage Interest held by the licensor Member). 

  

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	 	21.7.3	 If (i) a Termination Event occurs pursuant to Section 21.2.7 (in connection with a Change in Control of the licensor Member) or (ii) an
exercise of the Buy/Sell Option occurs, in either case prior to the second (2nd) anniversary of the Effective Date, the licensee Member requesting that the other Member enter into a Post-Termination License Agreement shall not be entitled to receive such license. 

 21.8 Additional Rights. Without limiting the generality of Section 23.17, the right of termination and other rights provided in this
Section 21 are in addition to, and not in lieu of, any other rights or remedies a Party may have under this Agreement or applicable law, including the right to damages for breach with or without exercising a right to terminate this
Agreement. 
 22. CONFIDENTIALITY; PUBLIC ANNOUNCEMENTS 
 22.1 Treatment of Confidential Information. The Receiving Party shall (a) accord Confidential Information received by it from the Furnishing Party with the same degree of confidential treatment that it accords its similar
proprietary and confidential business and technical information, which shall not be less than the care a reasonable business person would exercise under similar circumstances, (b) use such Confidential Information only in connection with this
Agreement or the Business, and (c) not disclose any of such Confidential Information to any Person other than its Affiliates and its and their directors, officers, employees, contractors, subcontractors, agents, advisors and licensees who have
a need to know in connection with this Agreement or the Business. 
 22.2 Permitted Disclosures. Notwithstanding any other provision of this
Agreement, the Receiving Party may disclose Confidential Information of the Furnishing Party, without liability for such disclosure, to the extent that such disclosure is (a) required to be made pursuant to applicable law, stock exchange rule,
government authority, duly authorized subpoena, or court order, (b) required to be made to a court or other tribunal in connection with the enforcement of the Receiving Party’s rights under this Agreement, or (c) approved by the prior
written consent of the Furnishing Party. 
 22.3 Disclosure Pursuant to Applicable Law. In the event that a Party receives a subpoena or otherwise
becomes aware of events which may legally require it to disclose Confidential Information, it shall promptly notify the Party that owns the Confidential Information, and cooperate with that Party (at the expense of that Party) to obtain an order
quashing or otherwise modifying the scope of said subpoena or legal requirement in an effort to prevent or limit the disclosure of such Confidential Information. In the event that such efforts are unsuccessful, a Party’s disclosure as required
by applicable law shall not constitute a breach of this Agreement. 
 22.4 Survival of Confidentiality Obligations. All obligations of confidentiality
and all restrictions on the use of Confidential Information under this Agreement shall remain in effect during the term of this Agreement and thereafter until the date that is two (2) years following the occurrence of the Triggering Event. Upon
the request of the Furnishing Party following the occurrence of the Triggering Event, the Receiving Party shall, at the Furnishing Party’s option and expense, return all of the Furnishing Party’s Confidential Information or destroy the
same, except that the Receiving Party may retain but must keep confidential (except as provided in 

  

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Section 22.2) Confidential Information of the Furnishing Party that is necessary in connection with the enforcement of the Receiving Party’s
rights under this Agreement. 
 22.5 Non-Disclosure of Agreement; Publicity. Except as may be required by applicable law, securities regulatory
authorities, stock exchange rule, government authorities, or as provided in Section 22.2, no Party shall make public the existence or content of this Agreement or the negotiations leading to or pursuant to this Agreement without the
written consent of the other Parties; provided, that no Party shall be prohibited from disclosing the general nature of the business relationship established hereby at any time. Caterpillar acknowledges and agrees that Navistar will file a
copy of this Agreement with the Securities and Exchange Commission and will file a Form 8-K with the Securities and Exchange Commission which will summarize the materials terms of this Agreement. 
 22.6 No License. Other than the express licenses granted in this Agreement, no license, express or implied, by estoppel or otherwise, is granted to any
Intellectual Property that is now or may hereafter be owned by a Party by virtue of the disclosure of Confidential Information under this Agreement. 
 23. MISCELLANEOUS 
 23.1 Disclaimer. THE WARRANTIES OF EACH PARTY CONTAINED HEREIN ARE IN LIEU OF ANY OTHER WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, ALL OF WHICH ARE HEREBY SPECIFICALLY EXCLUDED AND DISCLAIMED. 
 23.2 Limitation of Damages. IN NO EVENT SHALL A PARTY BE LIABLE FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL, INDIRECT OR PUNITIVE DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER,
INCLUDING ANY LOSS OF FUTURE REVENUE OR INCOME OR LOSS OF BUSINESS REPUTATION OR OPPORTUNITY ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES. NOTHING IN THIS SECTION 23.2 IS INTENDED TO LIMIT
OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF A PARTY PURSUANT TO SECTIONS 5.14 or 16 IN REGARD TO AMOUNTS PAYABLE TO THIRD PARTIES. 
 23.3 Expenses. Each Party shall bear all of its own costs and expenses incurred in negotiating this Agreement. No Party may make any offset against amounts due to another Party or any of such other Party’s Affiliates pursuant to
this Agreement or otherwise. 
 23.4 Force Majeure. A Party shall be excused for any failure or delay in the performance of any of its obligations
under this Agreement (other than for the payment of money) if such failure or delay is due to a strike, lockout, work stoppage, labor dispute, material shortage, utility outage, delay in transportation, fire, flood, earthquake, severe weather, act
of God, accident, trade sanction, embargo, act of war, terrorism or threats of same, condition caused by national emergency, new or changed law, or any other act or cause beyond the reasonable control or without the fault of such Party, whether
similar to or different from the causes above 

  

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enumerated, and whether affecting such Party or its agents, subcontractors, or suppliers, for as long as such circumstances prevail. The affected Party shall
as soon as practicable notify the other Parties of any actual or anticipated failure or delay, and such affected Party shall use its commercially reasonable efforts to mitigate any force majeure event and its consequences on performance hereunder.
The Parties shall remain liable for those obligations under this Agreement that are not affected by the force majeure event. 
 23.5 Survival.
Irrespective of the expiration or termination of this Agreement, the rights and obligations set forth in Sections 4.2, 4.10, 5.7, 5.12, 5.14, 5.15, 10.1.12, 13, 14, 15.2,
15.6, 16, 17, 18, 19, 21, 22, 23, and 24 shall remain in full force and effect to the extent required for their full observance and performance. The transfer of a Member’s
Membership Interest pursuant to Sections 19 or 21 or the expiration or termination of this Agreement pursuant to Section 21 shall not affect any right or obligation of a Party which shall have accrued prior to the
effective date of such transfer, expiration, or termination. 
 23.6 Further Actions and Assurances. The Parties shall execute and deliver any and all
documents, and shall cause any and all other reasonable action to be taken, which may be necessary or proper to effect or evidence the provisions of this Agreement and the transactions contemplated hereby. 
 23.7 Good Faith Reliance on Terms of Agreement. The Parties hereby agree that each Party shall be entitled to rely on the provisions of this Agreement, and no
Party shall be liable to any other Party for any action or refusal to act taken in good faith based on the terms of this Agreement. 
 23.8
Counterparts. This Agreement may be executed in one or more counterparts (including by means of facsimile), each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
 23.9 Entire Agreement. This Agreement (including the Related Agreements and other documents referred to herein and therein) constitutes the entire agreement
between the Parties and supersedes any prior understandings, agreements, or representations by the Parties, written or oral, to the extent they relate in any way to the subject matter hereof. 
 23.10 Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted
assigns. Except as provided in Section 19.2, no Party may assign any of its rights or obligations hereunder, directly or indirectly, without the prior written consent of the other Parties. 
 23.11 Amendments and Waiver. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by each Party. No
waiver by a Party of any provision of this Agreement or any default, misrepresentation, or breach of warranty hereunder, whether intentional or not, shall be valid unless the same shall be in writing and signed by the Party making such waiver nor
shall such waiver be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty hereunder or affect in any way any rights arising by virtue of any prior or subsequent such default, misrepresentation, or breach of
warranty. 
  

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 23.12 Applicable Law. This Agreement shall be governed by and construed and enforced in accordance with the
domestic laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether the State of Delaware or any other jurisdiction) that would cause the application of laws of any jurisdiction other than the
State of Delaware. 
 23.13 Venue. All suits, actions, or proceedings brought by a Party arising out of or relating to this Agreement or any matters
contemplated hereby shall be heard and determined in a state or federal court sitting in New Castle County, Delaware, U.S.A., and the Parties hereby irrevocably submit to the exclusive jurisdiction of such courts in any such suit, action, or
proceeding and irrevocably waive the defense of an inconvenient forum to the maintenance of any such suit, action, or proceeding; provided, that the foregoing shall not limit the rights of the Parties to obtain judgment in any other
jurisdiction or to serve process in any manner permitted by law. 
 23.14 WAIVER OF JURY TRIAL. EACH PARTY IRREVOCABLY AND ABSOLUTELY WAIVES THE RIGHT
TO A TRIAL BY JURY IN ANY SUIT, ACTION, OR PROCEEDING BROUGHT BY A PARTY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY MATTERS CONTEMPLATED HEREBY, AND AGREES TO TAKE ANY AND ALL ACTION NECESSARY OR APPROPRIATE TO EFFECT SUCH WAIVER.

 23.15 Specific Performance. Notwithstanding any other provision of this Agreement, the Parties agree that irreparable harm will occur if any of the
provisions of this Agreement is not performed in accordance with its specific terms or is otherwise breached. The Parties further agree in the event of a breach there will be no adequate remedy at law. Without limiting the foregoing, the Parties
specifically agree such would be the case for a breach of any of the provisions of Sections 11.1 and 15. It is accordingly agreed that each Party shall be entitled to a preliminary and/or permanent injunction or injunctions to remedy
breaches of this Agreement and to enforce specifically the terms and provisions hereof, in addition to any other remedy to which they are entitled at law or in equity. The Party seeking an injunction shall not be obligated to post a bond or other
security in connection therewith, and the non-seeking Party will not dispute irreparable harm or request a bond or other security. 
 23.16 Determination
of Fair Market Value. If the Members or the Board (as applicable) fail to unanimously agree on the Fair Market Value of any property or assets under any provision of this Agreement, within twenty (20) calendar days after delivery of a
notice from a Member requesting a determination, the Members or the Board (as applicable) shall promptly retain a nationally recognized independent valuation firm to determine such Fair Market Value. In the absence of mutual agreement by the Members
or Majority Consent of the Board (as applicable) on a valuation firm within five (5) calendar days of the expiration of such twenty (20) calendar day period, each Member shall designate within five (5) calendar days thereafter a
nationally recognized valuation firm for the sole purpose of selecting a valuation firm to determine such Fair Market Value. If a Member fails to designate such a valuation firm within such five (5) calendar day period, then the other
Member’s designated valuation firm shall be deemed the mutually agreed accounting firm to serve for all purposes of this Section 23.16. If each Member designates a valuation firm within such five (5) calendar day period, then
the two (2) such designated firms shall promptly select a nationally recognized valuation firm to determine such Fair Market Value pursuant to this Section 23.16, which valuation firm shall be independent from the two
(2) designated valuation firms, the Members and the Company. The valuation firm 

  

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selected pursuant to this Section 23.16 is referred to as the “Independent Valuation Firm.” After the selection of the
Independent Valuation Firm, (a) each Member shall submit to the Independent Valuation Firm in writing, not later than ten (10) calendar days after the Independent Valuation Firm is retained, its position with respect to such Fair Market
Value, together with such supporting documentation as it deems necessary or as the Independent Valuation Firm requests, and (b) the Independent Valuation Firm shall, within fifteen (15) calendar days after receiving the positions of the
Members and all supplementary supporting documentation requested by the Independent Valuation Firm (or if a Member fails or refuses to provide such information and documentation within a reasonable period of time, upon the expiration of a reasonable
period of time), render its decision as to such Fair Market Value, which decision shall be final and binding on, and nonappealable by, the Members and the Company. The Independent Valuation Firm shall act as an expert and not as an arbitrator. The
fees and expenses of the Independent Valuation Firm shall be paid one half by each Member. 
 23.17 Remedies Cumulative. The remedies provided in this
Agreement shall be cumulative and, except as expressly limited in this Agreement, shall not preclude the assertion or exercise of any other rights or remedies available under law, in equity, or otherwise. 
 23.18 Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or
enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. The Parties agree to attempt in good faith to replace any such
invalid or unenforceable provision with a valid and enforceable provision designed to achieve, to the extent possible under applicable law, the business purpose and intent of such invalid or unenforceable provision. 
 23.19 No Third Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person other than the Parties and, to the extent expressly set
forth herein, their Affiliates, the Indemnitees, the Navistar Indemnified Persons, the Caterpillar Indemnified Persons, and the Company Indemnified Persons, and all of their respective successors and permitted assigns. 
 23.20 Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this
Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. Any reference to the consent or approval of
the Board shall be deemed to mean the consent or approval of a simple majority of the Representatives unless such reference expressly refers to Majority Consent. Unless the context requires otherwise, singular includes plural and vice versa and any
gender includes every gender, and where any word or phrase is given a defined meaning, any other grammatical form of that word or phrase shall have a corresponding meaning. The word “including” shall mean “including without
limitation.” Unless the context requires otherwise, the words “hereof,” “herein,” “hereunder,” “hereby,” or words of similar import refer to this Agreement as a whole and not to any particular Section,
subsection, clause or other subdivision hereof. The word “or” shall be disjunctive but not 
  

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exclusive. Unless otherwise expressly provided herein, all decisions, elections and other actions to be made by the Company hereunder shall be made by the
officers of the Company at the direction and control of the President and in accordance with Section 6. 
 23.21 Headings. The 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. 
 23.22 Notices. Any notice, request, instruction, or other document to be given hereunder by a Party shall be in writing and shall be deemed to have been given (a) when received, if given in person or by courier or a courier
service, (b) on the date of transmission, if sent by facsimile or other wire transmission (receipt confirmed), or (c) five (5) Business Days after being deposited in the mail, certified or registered, postage prepaid: 
 If to Caterpillar: 
 Caterpillar Inc. 
 100 N.E. Adams St. 
 Peoria, Illinois 61629-9600 
 Attn: Deputy General Counsel 
 Facsimile: (309) 675-1795 
 If to Navistar: 
 Navistar,
Inc. 
 4201 Winfield Road 
 Warrenville, Illinois 60555 
 Attn: General Counsel 
 Facsimile: (630) 753-2261 
 With a copy (which shall not constitute notice) to: 
 Latham & Watkins LLP 
 233 South Wacker Drive, Suite 5800 
 Chicago, Illinois 60606 
 Attn: Cary R. Perlman 
 Facsimile: (312) 993-9767 
 If to the Company: 
 NC2 Global LLC 
 27501 Bella Vista Parkway 
 Warrenville, IL 60555 
 Attn: President 
 Facsimile: (630) 753-2261 
                   (309) 675-1795 
  

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 23.23 Partition. Each of the Members hereby irrevocably waives, to the extent it may lawfully do so, any right
that such Member may have to maintain any action for partition with respect to Company property. 
 23.24 Incorporation of Exhibits. The Exhibits
identified in this Agreement are incorporated herein by reference and made a part hereof. 
 24. DEFINITIONS 
 The following terms when set forth in initial capital letters in this Agreement shall have the respective meanings: 
 “5% Affiliates” shall mean, as to any Person, any other Person in which the specified Person owns, directly or indirectly through one or
more intermediaries, any equity interest equal to or greater than five percent (5%); provided, however, that, with respect to Navistar, 5% Affiliates shall not include DealCor Dealers. 
 “Act” shall mean the Delaware Limited Liability Company Act, Title 6, Sections 18-101, et. seq. of the Delaware Code, and any successor
statute, as the same may be amended from time to time. 
 “Actual Annual Company Legacy Profit Amount” is defined in
Section 2.3.5.3. 
 “Actual Annual Navistar Legacy Profit Amount” is defined in Section 2.3.5.3.

 “Actual Quarterly Company Legacy Profit Amount” is defined in Section 2.3.5.3. 
 “Adjusted Annual Company Legacy Profit Amount” is defined in Section 2.3.5.5. 
 “Adjusted Capital Account Deficit” shall mean, with respect to any Member, the deficit balance, if any, in such Member’s Capital
Account, maintained pursuant to Section 18.1, as of the end of the relevant Fiscal Year, after giving effect to the following adjustments: (a) credit to such Capital Account any amounts which such Member is obligated to restore,
because of a promissory note to the Company or otherwise, or is deemed to be obligated to restore pursuant to the penultimate sentence in each of Treasury Regulations Sections 1.704-2(g)(1) (ii) and 1.704-2(i)(5), and (b) debit to such
Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), and 1.704-1(b)(2)(ii)(d)(6) of the Treasury Regulations. 
 “Affiliate” shall mean, as to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the specified
Person. For purposes of this Agreement, the term “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract, or otherwise; and the terms “Affiliated,” “controlling,” and “controlled” have the meanings correlative to the foregoing. A Person shall be deemed to control another Person if such first Person
owns (a) greater than 50% of the total combined voting power of all classes of stock or other equity interests of such other Person entitled to vote or (b) greater than 50% of the total value of all 

  

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stock or other equity interests of such other Person. For purposes of this Agreement, the term “Affiliate,” as it relates to either Caterpillar or
Navistar, shall be defined so as to not include the Company or any of its direct or indirect wholly owned subsidiaries, irrespective of the Percentage Interest held by either Member at any given time. 
 “Aggregate Actual Quarterly Company Legacy Profit Amount” is defined in Section 2.3.5.3. 
 “Agreement” is defined in the preamble. 
 “All-Makes Parts” shall mean any part for a Medium Duty Truck or a Heavy Duty Truck, other than Navistar Brand parts and Caterpillar Brand parts, that is produced by an OEM supplier to meet OEM
specifications for such Medium Duty Truck or Heavy Duty Truck. 
 “Annual Business Plan” is defined in
Section 2.2.1. 
 “Annual Business Plan Capital Contribution Commitment” is defined in
Section 2.2.1. 
 “Annual Business Plan Loan Commitment” is defined in Section 2.2.1. 
 “Auditor” is defined in Section 15.3.8.1. 
 “Background Intellectual Property” shall mean all Intellectual Property that (a) was the property of, is jointly owned or is licensed from a third party by, one Member or its Affiliates prior to
the Effective Date, or (b) is independently developed by a Member or its Affiliates. 
 “Baseline Legacy Profit Amount”
is defined in Section 2.3.5.1. 
 “Beneficiary” is defined in Section 19.1.2.2. 
 “Blue Diamond” shall mean, collectively, Blue Diamond Truck S.R.L. de C.V. and Blue Diamond Parts, LLC. 
 “Board” shall mean the Board of Representatives of the Company elected in accordance with Section 5. 
 “Business” is defined in Section 2.1. 
 “Business Day” shall mean any day that is not a Saturday, a Sunday, a legal holiday, or a day on which banking institutions or trust companies in Illinois are authorized or obligated by law to close.

 “Buy-Out Interest” is defined in Section 21.6.1.2. 
 “Buy-Out Interest Option” is defined in Section 21.6.1.2. 
 “Buy-Out Interest Option Period” is defined in Section 21.6.1.2. 
 “Buy-Out Interest Purchase Price” is defined in Section 21.6.1.2. 
  

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 “Buy-Out Member” is defined in Section 21.6.1.1. 
 “Buy/Sell Member” is defined in Section 21.6.2.1. 
 “Buy/Sell Notice” is defined in Section 21.6.2.2. 
 “Buy/Sell Option” is defined in Section 21.6.2.2. 
 “Buy/Sell Purchase Price” is defined in Section 21.6.2.2. 
 “Capital Account” is defined in Section 18.1. 
 “Capital Contribution” shall mean, with respect to any Member, the amount of cash or the Gross Asset Value of any other property (net of the amount of any liabilities to which such property is
subject) contributed to the Company with respect to such Member’s Membership Interest. 
 “Capital Contribution
Commitment” shall mean (a) an Annual Business Plan Capital Contribution Commitment, or (b) a Three-Year Business Plan Capital Contribution Commitment. 
 “Caterpillar” is defined in the preamble. 
 “Caterpillar Brand” shall mean
any brand maintained or used by Caterpillar or any of its Affiliates for use or in connection with JV Trucks (including any engines, parts and components used in JV Trucks). 
 “Caterpillar Competing Person” shall mean, as to any particular time, (a) a Person that is a competitor of any or all of the
Business and any business of Caterpillar at such time, or (b) any Affiliate of such Person (provided, however, that neither Navistar nor any Affiliate of Navistar shall be deemed to be a Caterpillar Competing Person). 

“Caterpillar Financial” shall mean Caterpillar Financial Services Corporation and its Affiliates. 
 “Caterpillar Indemnified Person” shall mean Caterpillar and its Affiliates and their respective successors, assigns, agents, employees,
officers, and directors. 
 “Caterpillar Truck” shall have the meaning set forth in the Strategic Alliance Agreement.

 “Caterpillar Truck Model” shall mean any JV Truck Model that, upon the determination of the Board by Majority Consent and
the determination of Caterpillar in its discretion, shall be sold under the Caterpillar Brand by the Company from time to time. 
 “CFO” is defined in Section 6.1. 
 “Change in Control” of a Member shall mean, with
respect to such Member’s ultimate parent company, any of the following: (a) a sale of all or substantially all of such Person’s assets (whether directly or indirectly through one or more of such Person’s subsidiaries or
Affiliates) to 

  

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one or more Competing Persons, (b) a sale of more than 50% of all of the outstanding voting equity interests in such Person to one or more Competing
Persons acting individually or as a “group” under Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and (c) a merger or consolidation of such Person with one or more Competing Persons in which the stockholders
of such Competing Persons as of immediately prior to the record date pertaining to such merger or consolidation are in control of the Person surviving such merger or consolidation, in the case of each of clauses (a), (b), and
(c), in a single transaction or through a series of related transactions. For purposes of clause (c) of the immediately preceding sentence, the term “control” when used with respect to any Person means the ownership of
more than fifty percent (50%) of the outstanding equity interests in such Person. 
 “Change in Control Member” is
defined in Section 21.6.2.1. 
 “Change in Control Notice” is defined in Section 21.6.2.1.

 “China” shall mean the People’s Republic of China. 
 “China Business Plan” is defined in Section 2.3.4. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 
 “Common Parts” shall mean replacement parts that are used in both JV Truck Models and in vehicles and machines that are not JV Truck
Models. 
 “Company” is defined in the preamble. 
 “Company Deadlock” is defined in Section 20. 
 “Company Dispute” is defined in Section 20. 
 “Company Indemnified
Person” shall mean the Company and its direct and indirect wholly owned subsidiaries, and their respective successors, assigns, agents, employees, officers, and directors. 
 “Company Legacy Profit Amount” shall mean, with respect to each Fiscal Quarter or Fiscal Year, as applicable, and with respect to the
Legacy Countries, the amount of profits earned or losses incurred by the Company from sales by the Company or any of its Affiliates of Medium Duty Trucks, Heavy Duty Trucks and replacement parts therefor in the Legacy Countries determined in
accordance with Section 2.3.5. 
 “Competing Operations” is defined in Section 15.5. 
 “Competing Person” shall mean, as to any particular time, (a) a Person that manufactures trucks that are in competition with any or
all of the Business, any business of Caterpillar that generated more than $300,000,000 in annual revenue during the then most recent complete fiscal year of Caterpillar, and any business of Navistar that generated more than $300,000,000 in annual
revenue during the then most recent complete Fiscal Year of Navistar, and (b) any subsidiary or Affiliate of such Person. 
  

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 “Competitive OEM” is defined in Section 11.3.6. 
 “Competitive OEM Dealer” is defined in Section 11.3.6. 
 “Confidential Information” shall mean information disclosed by the Furnishing Party to the Receiving Party in connection with this
Agreement that is reasonably considered confidential or proprietary by the Furnishing Party, whether written or oral or in electronic or other form. Notwithstanding the foregoing, Confidential Information does not include information that is
(a) at the time of its disclosure, or thereafter becomes, part of the public domain through no act or fault of the Receiving Party, (b) known to the Receiving Party at the time of its disclosure by the Furnishing Party,
(c) independently developed by the Receiving Party without reference to the information disclosed, or (d) rightfully disclosed to the Receiving Party by a third party not subject to an obligation of confidentiality with respect to the
information disclosed. 
 “Contributing Member” is defined in Section 3.2.3.2.2. 
 “Core ROW Country” or “Core ROW Countries” shall refer to China, Russia, Brazil, South Africa, Australia, or Turkey.

 “Core ROW Country Launch Date” shall mean November 1, 2009. 
 “Cost” shall have the meaning set forth in (i) the applicable Master Component Supply Agreements with respect to JV Truck
Components and JV Truck Replacement Parts sold to the Company by a Member, (ii) the applicable Master Component Supply Agreements with respect to components and replacement parts sold by the Company to a Member, (iii) the Master Terms for
Purchased Services with respect to services performed for the Company by a Member, (iv) the Truck Sales Agreement for JV Trucks sold to the Company by Navistar, and (v) the Master Development Services Agreements for development services
performed for the Company by a Member. 
 “COE China” shall mean the People’s Republic of China (including Hong Kong,
Macau, and Tibet) and Taiwan. 
 “COTS” shall mean commercial off-the-shelf vehicles. 
 “Credit Agreement” is defined in Section 15.2. 
 “DealCor Dealer” shall mean any existing or future dealer owned by Navistar or any of its Affiliates that is located in North America
and subject to Navistar’s export guidelines with respect to trucks and replacement parts (it being understood and agreed that Navistar will strictly enforce such guidelines against such dealer to prevent such dealer from exporting trucks and
replacement parts into the ROW). 
 “Disputed Remaining Assets” is defined in Section 21.5.3.2. 
 “Effective Date” is defined in the preamble. 
 “Employee Secondment Agreement” is defined in Section 1.6.8. 
  

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 “ESC” is defined in Section 13.6. 
 “Exercise Notice” is defined in Section 3.2.5. 
 “Fair Market Value” shall mean the price at which a willing seller and a willing buyer would trade the relevant property or assets. If
the Members or the Board (as applicable) fail to agree on the Fair Market Value of any property or assets under any provision of this Agreement, the determination shall be made by the Independent Valuation Firm under the procedure set forth in
Section 23.16. 
 “Fair Value of the Company” shall mean the price at which a willing seller and a willing buyer
would trade and shall take into account all relevant factors, including the Company’s assets, liabilities, earnings, goodwill, going concern value, and future prospects (in each case after taking into account those certain transactions set
forth in Sections 21.6.5, 21.6.7 and 21.7), and shall be determined pursuant to the relevant provisions of this Agreement using standard valuation methodologies, including discounted cash flows, comparable companies and
precedent transaction analyses as well as any other techniques deemed applicable by both Members under the market conditions existing at the time at which such determination is made. 
 “First-Fit Parts” shall mean parts for a Medium Duty Truck or a Heavy Duty Truck that are originally installed in such vehicle by the
OEM of such vehicle. 
 “Fiscal Year” shall mean the period commencing on November 1st of each year and ending as of
October 31st of that same year; provided, however, that the first Fiscal Year of the Company shall commence as of the Effective Date and end on the following October 31st. 
 “Fleet Sale Policy” shall mean the policy heretofore agreed to by the Members. 
 “Furnishing Party” shall mean the Party furnishing Confidential Information under Article 22. 
 “GAAP” shall mean United States generally accepted accounting principles and practices applied on a consistent basis. 
 “Goodwill Policy” shall mean a policy or practice of servicing out-of-warranty customers. 
 “Governmental COE Customers” shall mean non-military, governmental, cab over engine Medium Duty Truck and Heavy Duty Truck customers.

 “Governmental Conventional Customers” shall mean non-military, governmental, conventional (non-cab over engine) Medium
Duty Truck and Heavy Duty Truck customers. 
 “Gross Asset Value” shall mean, with respect to any asset, the asset’s
adjusted basis for federal income tax purposes, except as follows: 
 (a) The initial Gross Asset Value of any asset contributed by a Member
to the Company shall be the gross Fair Market Value of such asset, as determined by the contributing Member and the Company; provided, that the determination by the Company of the Fair Market Value of a contributed asset shall be made by
Majority Consent of the Board. 
  

 117 

 (b) The Gross Asset Values of all Company assets shall be adjusted to equal their respective gross Fair
Market Values as of the following times: (i) the acquisition of an additional interest in the Company by any new or existing Member in exchange for more than a de minimis Capital Contribution, (ii) the distribution by the Company to a
Member of more than a de minimis amount of property as consideration for an interest in the Company, (iii) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g), and (iv) at such other
times as is reasonably necessary or advisable to comply with Treasury Regulations Sections 1.704-1(b) and 1.704-2 or to reflect the relative economic interests of the Members; provided, that adjustments pursuant to clauses (i) and
(ii) shall be made except to the extent that the Board reasonably determines by Majority Consent that such adjustments are not necessary or appropriate to reflect the relative economic interests of the Members and the Company.

 (c) The Gross Asset Value of any Company asset distributed to any Member shall be the gross Fair Market Value of such asset, as determined
by the Board by Majority Consent, on the date of distribution. 
 (d) The Gross Asset Values of Company assets shall be increased (or
decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant
to Treasury Regulations Section 1.704-1(b)(2)(iv)(m) and Section 18.1; provided, that Gross Asset Value shall not be adjusted pursuant to this clause (d) to the extent the Members determine that an adjustment
pursuant to clause (b) is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (d). 
 (e) If the Gross Asset Value of an asset has been determined or adjusted pursuant to clauses (a), (b), or (d) hereof, such
Gross Asset Value shall thereafter be adjusted by the depreciation taken into account with respect to such asset for purposes of computing Profits and Losses. 
 “Heavy Duty COE Truck” shall mean a cab over engine Heavy Duty Truck utilizing an engine with displacement of nine (9) liters or more. 
 “Heavy Duty Truck” shall mean any on-highway truck (including any off-highway derivative of any on-highway truck) with a gross vehicle
weight rating equal to or greater than fifteen (15) metric tons. 
 “Indemnified Person” shall mean the Person or
Persons entitled to, or claiming a right to, indemnification under Section 16. 
  

 118 

 “Indemnifying Person” shall mean the Person or Persons obligated to provide
indemnification under Section 16. 
 “Indemnitee” is defined in Section 5.14. 
 “Independent Valuation Firm” is defined in Section 23.16. 
 “Initial Annual Business Plan” is defined in Section 2.2.1. 
 “Initial Operating Agreement” is defined in the recitals. 
 “Initial Rolling Business Plan” is defined in Section 2.2.2. 
 “Initial
Staffing Plan” is defined in Section 7.1. 
 “Intellectual Property” shall mean trade secrets, ideas,
inventions, designs, utility models, developments, devices, methods or processes (whether patented or patentable and whether or not reduced to practice) and all patents and patent applications related thereto; copyrightable works and mask works
(whether or not registered); trademarks, service marks and trade dress; all registrations and applications for registration related thereto and know-how; and all other intellectual or industrial property rights in any jurisdiction. 
 “Intellectual Property License Agreement” is defined in Section 1.6.3. 
 “Intercompany Promissory Note” is defined in Section 1.6.10. 
 “Investment Banker” is defined in Section 21.6.1.1. 
 “IVECO” shall mean IVECO Trucks Australia Limited and its Affiliates. 
 “Joint Owner” is defined in Section 14.6. 
 “Jointly Owned Intellectual Property” is defined in Section 14.6. 
 “JV
Dealer” shall mean any Person who signs a sales and service agreement with the Company or any of its Affiliates for the sale and servicing of JV Trucks and JV Truck Replacement Parts. 
 “JV Truck” shall mean Medium Duty Trucks and Heavy Duty Trucks. JV Trucks shall not include buses or military or tactical vehicles
(including Mine Resistant Ambush Protected vehicles). 
 “JV Truck Assembly Facility” shall mean any facility and associated
land purchased, leased or otherwise procured by the Company or any of its direct or indirect wholly owned subsidiaries to assemble or manufacture JV Trucks in a particular territory in the ROW. 
 “JV Truck Components” shall mean first fit, production use, direct materials required for the assembly of Medium Duty Trucks or Heavy
Duty Trucks, including engines and transmissions. 
  

 119 

 “JV Truck Models” shall mean those truck models that are sold by the Company.

 “JV Truck Replacement Parts” shall mean all new or remanufactured replacement parts, service parts, and maintenance parts
for JV Trucks. 
 “Legacy Country” shall mean each of the Non-Core ROW Countries set forth on Schedule 2.3.5 

 “Legacy Country Commencement Date” is defined in Section 2.3.5. 
 “Legacy Trucks” shall mean any Medium Duty Truck or Heavy Duty Truck sold by Navistar or any of its Affiliates to any Person prior to
the Effective Date. 
 “Liabilities” shall mean losses, demands, claims, liabilities, obligations, causes of action,
assessments, damages, fines, penalties and expenses (including reasonable attorneys’, professional, and expert witness fees and expenses). 
 “Loan Commitment” shall mean (a) an Annual Business Plan Loan Commitment, or (b) a Three-Year Business Plan Loan Commitment. 
 “Losses” is defined in conjunction with “Profits.” 
 “Mahindra
JV” shall mean the joint venture that exists pursuant to the Mahindra JV Agreement. 
 “Mahindra JV Agreement”
shall mean collectively that certain (i) Joint Venture Agreement, dated November 17, 2005, by and among Mahindra & Mahindra Limited, International Truck and Engine Corporation, Mahindra International Private Limited, International
Truck and Engine Mauritius Holding Ltd and International Truck and Engine Corporation Cayman Islands Holding Company, and (ii) Waiver of Certain Provisions to Joint Venture Agreement, dated April 27, 2009 (the “Mahindra
Waiver”), signed by all of the foregoing parties, in the case of each of clauses (i) and (ii), as in effect on the signing date of the Mahindra Waiver. 
 “Mahindra JV Royalties” is defined in Section 2.3.9. 
 “Mahindra Territory” shall mean India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Myanmar and Malaysia. 
 “Majority Consent” of the Board shall mean the approval, authorization or ratification of at least four (4) of the Representatives
comprising the Board, which approval, authorization or ratification may be given or withheld for any or no reason in the sole and absolute discretion of each Representative. 
 “Marketing Services” shall mean market analysis, competitive analysis, product support plans, future product plans, marketing plans,
assistance with business plans, sales plans and transition plans to move the Legacy Country sales from Navistar to the Company. 
  

 120 

 “Mark-Up Engineering Services” shall mean those services described under the Service
Category Code SE or the Service Category Code AE, in each case in Exhibit 3 to the Master Terms for Purchased Services. 
 “Master Component Supply Agreement” is defined in Section 1.6.1. 
 “Master Development
Services Agreement” is defined in Section 1.6.6. 
 “Master Terms for Purchased Services” is defined in
Section 1.6.2. 
 “Material Breach” shall mean (a) one or more failures (irrespective of whether or not
such failures pertain to related events) to pay any monies required to be paid under this Agreement or a Related Agreement exceeding $2,000,000 in the aggregate (and not disputed in good faith) when such monies become due and payable (other than
(i) any Capital Contribution or loan that is approved by the Board upon Majority Consent or (ii) any Capital Contribution Commitment or Loan Commitment set forth in the Initial Annual Business Plan, the Initial Rolling Business Plan, any
subsequent Annual Business Plan, or any subsequent Rolling Business Plan (with respect to each such subsequent Annual Business Plan and subsequent Rolling Business Plan, as approved by the Board upon Majority Consent), the failure of which to pay
when due and payable shall be governed by Section 3.2.3), (b) any fraud or willful misconduct, (c) any failure of a Member to repay a Member Loan in accordance with its terms under which such Member is the borrowing Member,
(d) any failure of a Non-Contributing Member to exercise the Purchase Option within the applicable time period set forth in the first sentence of Section 3.2.5 and then to consummate such Purchase Option in accordance with
Section 3.2.5, or (e) any material breach of Section 11.1.2, 11.1.3, 14, 15 or 19. 
 “Medium Duty COE Truck” shall mean a cab over engine, on-highway truck (including any off-highway derivative of any on-highway truck) with a gross vehicle weight rating equal to or greater than eight (8) metric tons
and utilizing an engine with displacement of less than nine (9) liters. 
 “Medium Duty Truck” shall mean any
on-highway truck (including any off-highway derivative of any on-highway truck) with a gross vehicle weight rating equal to or greater than eight (8) metric tons and less than fifteen (15) metric tons. 
 “Member” or “Members” shall refer to Caterpillar and Navistar and any other Person that has been admitted as a member
of the Company pursuant to the terms of this Agreement. 
 “Member Acquisition” is defined in Section 15.5.

 “Member Loan” is defined in Section 3.2.3.2.1. 
 “Member Minimum Gain” shall mean an amount, determined in accordance with Treasury Regulation Section 1.704-2(i)(3) with respect to
each “partner nonrecourse debt” (within the meaning of Treasury Regulation Section 1.704-2(b)(4)), which equals the Minimum Gain that would result if such partner nonrecourse debt were treated as a “nonrecourse liability”
(within the meaning of Treasury Regulation Section 1.752-1(a)(2)). 
  

 121 

 “Membership Interest” shall mean a Member’s interest in the Company, including the
right, if any, to participate in the management of the business and affairs of the Company, including the right, if any, to vote on, consent to or otherwise participate in any decision or action of or by the Members and the right to receive
information concerning the Business and affairs of the Company, in each case to the extent expressly provided in this Agreement or otherwise required by the Act. 
 “MPC” is defined in Section 10.4. 
 “Navistar” is defined in
the preamble. 
 “Navistar Brand” shall mean any brand maintained or used by Navistar or any of its Affiliates for use or in
connection with JV Trucks (including any engines, parts, and components used in JV Trucks). 
 “Navistar Competing Person”
shall mean, as to any particular time, (a) a Person that is a competitor of any or all of the Business and any business of Navistar at such time, or (b) any Affiliate of such Person (provided, however, that neither
Caterpillar nor any Affiliate of Caterpillar shall be deemed to be a Navistar Competing Person). 
 “Navistar Conventional
Countries” shall mean Iraq, Afghanistan, Taiwan, United Kingdom, Poland, Romania, Italy, Israel, Egypt, Netherlands, Saudi Arabia, UAE, Oman, Yemen, Thailand, Colombia, Singapore, Greece and Portugal. 
 “Navistar Financial” shall mean Navistar Financial Corporation and its Affiliates. 
 “Navistar Indemnified Person” shall mean Navistar and its Affiliates and their respective successors, assigns, agents, employees,
officers, and directors. 
 “Navistar Legacy Profit Amount” shall mean, with respect to each Fiscal Quarter or Fiscal Year,
as applicable, and with respect to the Legacy Countries, the amount of profits earned or losses incurred by Navistar from sales by Navistar or any of its Affiliates of Medium Duty Trucks, Heavy Duty Trucks and replacement parts therefor in the
Legacy Countries determined in accordance with Section 2.3.5. 
 “Navistar Truck Model” shall mean any JV Truck
Model that, upon the determination of the Board by Majority Consent and the determination of Navistar in its discretion, shall be sold under the Navistar Brand by the Company from time to time. 
 “Navistar Vehicle” shall have the meaning set forth in the Strategic Alliance Agreement. 
 “Net Present Value of Increased Tax Liability” shall mean the net present value of the increased income tax liability incurred by the
remaining Member or Members of the Company in the event of a termination of the Company pursuant to Code Section 708 caused solely by a Transfer by one Member of a 50% interest in the profits and capital of the Company within the meaning of
Code Section 708(b)(1)(B) within the 12-month period, calculated as to each remaining Member as the joint product of the following three variables: 
  

	 	(a)	the maximum U.S. federal corporate tax rate applicable at that time plus 3.5%; 

  

 122 

	 	(b)	the Percentage Interest in the Company of such remaining Member; and 

  

	 	(c)	the net present value of the difference (whether positive or negative) between: 

 (i) the projected tax depreciation each year in the absence of a termination of the Company pursuant to Code Section 708; and

 (ii) the maximum tax depreciation available each year under tax law as of the time of calculation in light of the
termination of the Company pursuant to Code Section 708, in each case determined with reference to the assets of the Company subject to tax depreciation at the time of termination for each year following the termination in which such property
is expected to be depreciated. 
 For purposes of the net present value calculation, the differences in tax depreciation shall be discounted using an annual
discount rate equal to 8.0%. Notwithstanding anything to the contrary contained in this definition, in no event shall the Net Present Value of Increased Tax Liability be a negative number, and in the event that the above calculation would otherwise
result in a negative number, the Net Present Value of Increased Tax Liability shall be deemed to be $0. 
 “NITSA” is
defined in Section 2.3.3.3. 
 “NITSA Acquisition Agreement” is defined in Section 2.3.3.3.

 “NITSA Asset Acquisition Alternative” is defined in Section 2.3.3.3. 
 “NITSA Business Acquisition Date” is defined in Section 2.3.3.3. 
 “Non-Contributing Member” is defined in Section 3.2.3.2.2. 
 “Non-Core ROW Conventional Countries” shall mean all Non-Core ROW Countries excluding the Navistar Defense Conventional Countries.

 “Non-Core ROW Country” or “Non-Core ROW Countries” shall refer to any country in the ROW that is not a
Core ROW Country. 
 “Non-Disputed Remaining Assets” is defined in Section 21.5.3.1. 
 “Nonrecourse Deductions” has the meaning assigned to it in Regulations Sections 1.704-2(b)(1) and 1.704-2(c). 
 “North American Medium Duty COE Trucks” shall mean a cab over engine Medium Duty Truck without regard to engine displacement.

 “North American Severe Service Truck Sales Agreement” shall mean that certain NASS Truck Sales Agreement by and between
Navistar and Caterpillar entered into as of the date hereof. 
  

 123 

 “Obsolete” means, with respect to inventory held for use in connection with NITSA’s
business, (i) any first-fit component, kit, or truck for which no sales (A) have been made by NITSA in the twelve (12) month period prior to the proposed purchase pursuant to Section 2.3.3.5 or (B) are projected to be
made by NITSA in the twelve (12) month period following the proposed purchase pursuant to Section 2.3.3.5, and (ii) any replacement parts for which no sales (A) have been made by NITSA in the twenty-four (24) month
period prior to the proposed purchase pursuant to Section 2.3.3.5 or (B) are projected to be made by NITSA in the twenty-four (24) month period following the proposed purchase pursuant to Section 2.3.3.5.

 “OEM” shall mean an original equipment manufacturer. 
 “Offer” is defined in Section 19.1.2.2(A). 
 “Offeror” is defined in Section 19.1.2.2. 
 “Offered Membership
Interest” is defined in Section 19.1.2.2. 
 “Partner Nonrecourse Deductions” has the meaning assigned
to it in Regulations Section 1.704-2(i)(2). 
 “Partnership Minimum Gain” has the meaning set forth in Treasury
Regulation Section 1.704-2(b)(2), and the amount of Minimum Gain, as well as any net increase or decrease in Minimum Gain, for a Fiscal Year shall be determined in accordance with the rules of Treasury Regulation Section 1.704-2(d).

 “Party” or “Parties” is defined in the preamble. 
 “Percentage Interest” is defined in Section 3.1.2. 
 “Person” shall mean an individual, or a corporation, limited liability company, partnership (whether general or limited), joint venture,
trust (including a business trust or real estate investment trust), unincorporated organization, joint stock company, association, or other entity, or any government, or any agency or subdivision thereof. 
 “Post-Termination Agreements” is defined in Section 21.7.1. 
 “Post-Termination License Agreements” shall mean, collectively, (i) that certain Post-Termination Intellectual Property License
Agreement by and between Caterpillar, as licensor, and Navistar, as licensee; and (ii) that certain Post-Termination Intellectual Property License Agreement by and between Navistar, as licensor, and Caterpillar, as licensee. 
 “Post-Termination Master Development Services Agreement” shall mean that certain Post-Termination Master Development Services Agreement
by and between Caterpillar and Navistar. 
 “Product Support Services” is defined in Section 11.5. 

 

 124 

 “Profits” and “Losses” shall mean, for each Fiscal Year, an amount
equal to the Company’s taxable income or loss, as applicable, for such Fiscal Year, determined in accordance with Section 703(a) of the Code (but including in taxable income or loss, for this purpose, all items of income, gain, loss or
deduction required to be stated separately pursuant to Section 703(a)(1) of the Code), with the following adjustments: 
 (a) any income
or loss of the Company exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this definition shall be added to such taxable income or subtracted in computing such gain or loss; 
 (b) any expenditures of the Company described in Section 705(a)(2)(B) of the Code (or treated as expenditures described in Section 705(a)(2)(B)
of the Code pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i)), and not otherwise taken into account in computing Profits or Losses pursuant to this definition, shall be subtracted from such taxable income or loss; 
 (c) in the event the Gross Asset Value of any Company asset is adjusted in accordance with clauses (b) or (d) of the definition
of Gross Asset Value, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses; 
 (d) depreciation, amortization and any other cost recovery deductions with respect to, and any gain or loss resulting from any disposition of, any asset
of the Company whose adjusted tax basis differs from its Gross Asset Value shall be computed by reference to the Gross Asset Value of such asset; 
 (e) gain or loss shall be computed on any asset that is distributed by the Company to any Member (whether pursuant to a liquidation of the Company or otherwise) by treating such asset as having been sold for its Fair Market Value, as
determined by the Board by Majority Consent, on the date of such distribution; 
 (f) items of income, gain, loss and deduction that are
specially allocated pursuant to Section 18.5 shall not be taken into account; and 
 (g) the deduction described in
Section 199 of the Code shall not be taken into account. 
 “Purchase Option” is defined in Section 3.2.5.

 “Purchaser Member” is defined in Section 21.6.4. 
 “Quarterly Distribution” is defined in Section 2.3.5.4. 
 “Receiving Party” shall mean the Party receiving Confidential Information under Article 22. 
 “Regulatory Allocations” is defined in Section 18.5.9. 
 “Related Agreements” is defined in Section 1.6. 
  

 125 

 “Remaining Assets” is defined in Section 21.5.3.1. 
 “Representative” shall mean a member of the Board appointed by a Member in accordance with the terms of this Agreement. 
 “Repurchase Price” shall mean, with respect to a Substitute Contribution that was credited to a Contributing Member’s Capital
Account, an amount equal to (a) the amount of the Substitute Contribution, multiplied by (b) 1.15, multiplied by (c) the number of days elapsed from the date of the Substitute Contribution to (but not including) the day
on which the Non-Contributing Member pays to the Contributing Member an amount in cash equal to the Repurchase Price, divided by (d) three hundred sixty-five (365). 
 “Required Funding Date” is defined in Section 3.2.3.1. 
 “Right of First Refusal” is defined in Section 19.1.2.2. 
 “Rolling Business Plan” is defined in Section 2.2.2. 
 “ROW” shall mean every country in the world other than the United States (which shall exclude all territories thereof other than Puerto
Rico), Canada, and Mexico and the Mahindra Territory. 
 “Royalty-Bearing IP License Agreement” is defined in
Section 1.6.5. 
 “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations for the Securities and Exchange Commission promulgated pursuant thereto. 
 “Seller Member” is defined in
Section 21.6.4. 
 “Sharing Agreement” is defined in Section 1.6.10. 
 “Sourcing Council” is defined in Section 9.4.1. 
 “Standard Warranty” shall mean the warranty provided pursuant to the terms and conditions of sale with respect to any Medium Duty Truck,
any Heavy Duty Truck or any replacement part therefor. 
 “Strategic Alliance Agreement” shall mean that certain NASS
Strategic Alliance Agreement between the Members dated as of the date hereof. 
 “Subsequent Staffing Plan” is defined in
Section 7.1. 
 “Substitute Contribution” is defined in Section 3.2.3.2.2. 
 “Tax Matters Partner” shall mean the Member designated as such pursuant to Section 18.10.1. 
 “Termination Event” is defined in Section 21.2. 
  

 126 

 “Termination Event Member” is defined in Section 21.6.1.1. 
 “Three-Year Business Plan Capital Contribution Commitment” is defined in Section 2.2.2. 
 “Three-Year Business Plan Loan Commitment” is defined in Section 2.2.2. 
 “Trademark License Agreement” is defined in Section 1.6.4. 
 “Transfer” shall mean a sale, assignment, transfer, exchange or other disposition. 
 “Treasury Regulation” shall include temporary and final regulations promulgated under the Code, as such regulations are amended from
time to time. 
 “Triggering Event” shall mean the earlier of (i) the expiration or termination for any reason of this
Agreement and (ii) the closing of any sale and purchase of the Membership Interest pursuant to the Buy/Sell Option or the Buy-Out Interest Option pursuant to Section 21.6.4. 
 “Triggering Member” is defined in Section 11.1.6. 
 “Truck Business Relationship Agreement” is defined in the recitals. 
 “Truck Sales Agreement” is defined in Section 1.6.7. 
 “Unanimous Consent” of the Members shall mean the approval, authorization, or ratification of all of the Members duly given, which
approval may be given or withheld for any or no reason in the sole and absolute discretion of any Member. 
 “Valuation
Notice” is defined in Section 21.6.2.1. 
 “Valuation Price” is defined in
Section 21.6.2.1. 
 “Vocational” shall mean designed for use for one or more of the applications specified on
Exhibit F to the Strategic Alliance Agreement and expressly excludes those applications specified as excluded on Exhibit F to the Strategic Alliance Agreement. 
 “Will-Fit Parts” shall mean any part for a Medium Duty Truck or a Heavy Duty Truck other than Navistar Brand parts, Caterpillar Brand parts, First-Fit Parts and All-Makes Parts. For the avoidance of
doubt, a Will-Fit Part is not installed by an OEM of such vehicle and is not a proprietary part of an OEM. 
 [SIGNATURE PAGE FOLLOWS]

  

 127 

 IN WITNESS WHEREOF, Caterpillar, Navistar, and the Company have caused this Amended and Restated Joint
Venture Operating Agreement to be signed by their respective duly authorized representatives as of the day and year first above written. 
  

									
	CATERPILLAR INC.	 		 	NAVISTAR, INC.
					
	By:	 	 /s/ James W. Owens
	 		 	By:	 	 /s/ Daniel C. Ustian

	Name:	 	James W. Owens	 		 	Name:	 	Daniel C. Ustian
	Title:	 	Chairman and Chief Executive Officer	 		 	Title:	 	Chairman, President and Chief Executive Officer
				
	NC2 GLOBAL
LLC	 		 		 	
					
	By:	 	 /s/ Al Saltiel
	 		 		 	
	Name:	 	Al Saltiel	 		 		 	
	Title:	 	President	 		 		 	

 EXHIBIT A 
 CERTIFICATE OF FORMATION 
 OF 
 NC2 GLOBAL LLC 
 The undersigned, an authorized natural person, for the purpose of forming a limited
liability company, under the provisions and subject to the requirements of the State of Delaware (particularly Chapter 18, Title 6 of the Delaware Code and the acts amendatory thereof and supplemental thereto, and known, identified, and referred to
as the “Delaware Limited Liability Company Act”), hereby certifies that: 
 FIRST: The name of the limited liability company
is: 
 NC2 GLOBAL LLC 
 SECOND: The address of its registered office in the State of Delaware is 1209 Orange Street, in the City of Wilmington, County of New Castle, Delaware 19801. The name of the registered agent at such address is The Corporation Trust
Company. 
 THIRD: This Certificate of Formation shall be effective upon filing. 
 Executed on July 24, 2009 
  

	
	/s/ Shaun D. Hartley
	 Shaun D. Hartley
 Authorized
Person

 EXHIBIT B 
 Navistar Legacy Profit Amount Calculation and Indexing Methodology 
 The following sets forth
the methodology by which Baseline Profit Amount and Navistar Legacy Profit Amount are calculated, with respect to the Legacy Countries, pursuant to Section 2.3.5 of the JVOA. Part I below sets forth the methodology by which Baseline Profit
Amount is calculated. Part II below describes the components of, and the methodology used to calculate, the profitability of sales in Legacy Countries. Part III below describes the methodology to be used in calculating the Navistar Legacy Profit
Amount. 
  

	I.	Baseline Profit Amount indexing methodology 

 This Part I explains
the indexing methodology by which Baseline Profit Amount is calculated pursuant to Section 2.3.5 of the JVOA. Baseline Profit Amount will be adjusted by both a GDP Factor and a Working Capital Charge as set forth below. 
 For any year measured, the Baseline Profit Amount represents the sum of two components: 
  

	 	A.	The respective year’s Truck Baseline EBIT; and 

  

	 	B.	The respective year’s Replacement Parts Baseline EBIT. 

 Each of
these components are set out below: 
 A. Truck Baseline EBIT 
 Truck Baseline EBIT will be determined by (i) adjusting Baseline Truck Sales Amount by the GDP Factor, (ii) calculating the Indexed Truck EBIT Margin utilizing the GDP Indexed Baseline Sales Amount, and (iii) subtracting from
the Indexed Truck EBIT Margin the Truck Working Capital Charge, each as set forth below. 
  

	1.	Initial Baseline Truck Sales Amount. 

 The reported fiscal
year 2008 (“FY 2008”) Legacy Countries JV Truck Sales are $448,687,000 (“Initial Baseline Truck Sales Amount”). Appendix I outlines the Initial Baseline Truck Sales Amount on a per country basis.

	2.	GDP Factor / Indexing Methodology. 

 On
an annual basis, Navistar shall calculate an equally weighted average annual GDP index obtained from the Bloomberg Ticker (Contributor Composite)1, or if such Economic Forecast is no longer available, then a comparable index (the “Index”) using the GDP economic
indicator (the “GDP Factor”) of the following four countries: 
  

	 	a.	Chile; 

  

	 	b.	Peru; 

  

	 	c.	Columbia; and 

  

	 	d.	Costa Rica. 

 Fiscal Year 2010 beginning
November 1, 2009 – Represents Year 1 and will not need a GDP calculation performed as the baseline profit is already established in Appendix VII. 
 Fiscal Year 2011 beginning November 1, 2010 – Represents Year 2 and will equal the product of (i) the Initial Truck Baseline Sales Amount and (ii) one plus the December 31, 2009
Bloomberg Ticker GDP Factors. 
 Fiscal Year 2012 beginning November 1, 2011 – Represents Year 3 and will equal the product
of (i) the Initial Truck Baseline Sales Amount and (ii) one plus the compounding of the December 31, 2009 and December 31, 2010 Bloomberg Ticker GDP Factors. 
 Fiscal Year 2013 beginning November 1, 2012 – Represents Year 4 and will equal the product of (i) the Initial Truck Baseline Sales
Amount and (ii) one plus the compounding of the December 31, 2009; December 31, 2010; and December 31, 2011 Bloomberg Ticker GDP Factors. 
 Fiscal Year 2014 beginning November 1, 2013 – Represents Year 5 and will equal the product of (i) the Initial Truck Baseline Sales Amount and (ii) one plus the compounding of the
December 31, 2009; December 31, 2010; December 31, 2011; and December 31, 2012 Bloomberg Ticker GDP Factors. 
  

	3.	Indexed Truck EBIT Margin. 

 “Indexed Truck EBIT
Margin” is equal to the product of (i) 5.9% (which represents JV Truck Profit Margin calculated pursuant to Part II below) and (ii) the respective year’s GDP Indexed Baseline Truck Sales Amount. 
  

	4.	Truck Working Capital Charge. 

 “Truck Working
Capital Charge”, is equal to the product of (i) 15/365; (ii) the respective year’s GDP Indexed Baseline Truck Sales Amount; and (iii) 6%. 
  

	1
	 Tickers are: 

									
	Chile	  	CLGDYCUR	  	Columbia	  	COCUPIBY	  	
	Peru	  	PRGYTOTL	  	Costa Rica	  	CRGDCYOY	  	

  

 2 of 20 

	5.	Years Six through Ten. 

 Notwithstanding the foregoing, for
each of Year Six through Year Ten, the respective year’s Truck Baseline EBIT is equal to the Year Five Truck Baseline EBIT. 
  

	B.	Replacement Parts Baseline EBIT 

 Replacement Parts Baseline EBIT
will be determined by (i) adjusting Baseline Replacement Parts Sales Amount by the GDP Factor, (ii) calculating the Indexed Replacement Parts EBIT Margin utilizing the GDP Indexed Baseline Replacement Parts Sales Amount and
(iii) subtracting from the Indexed Replacement Parts EBIT Margin, the Replacement Parts Working Capital Charge, each as set forth below. 
  

	1.	Baseline Replacement Parts Sales Amount. 

 The reported FY
2008 Legacy Countries Replacement Parts Sales are $45,522,000 (“Initial Baseline Replacement Parts Sales Amount”). 
  

	2.	GDP Indexing Methodology. 

 Navistar shall calculate the
GDP Factor in the same manner as described in Section A above: 
 Fiscal Year 2010 beginning November 1, 2009 – Represents
Year 1 and will not need a GDP calculation performed as the baseline profit is already established in Appendix VII. 
 Fiscal Year 2011
beginning November 1, 2010 – Represents Year 2 and will equal the product of (i) the Initial Baseline Replacement Parts Sales Amount and (ii) one plus the December 31, 2009 Bloomberg Ticker GDP Factors. 
 Fiscal Year 2012 beginning November 1, 2011 – Represents Year 3 and will equal the product of (i) the Initial Baseline Replacement
Parts Sales Amount and (ii) one plus the compounding of the December 31, 2009 and December 31, 2010 Bloomberg Ticker GDP Factors. 
 Fiscal Year 2013 beginning November 1, 2012 – Represents Year 4 and will equal the product of (i) the Initial Baseline Replacement Parts Sales Amount and (ii) one plus the compounding of the December 31,
2009; December 31, 2010; and December 31, 2011 Bloomberg Ticker GDP Factors. 
 Fiscal Year 2014 beginning November 1,
2013 – Represents Year 5 and will equal the product of (i) the Initial Baseline Replacement Parts Sales Amount and (ii) one plus the compounding of the December 31, 2009; December 31, 2010; December 31,
2011; and December 31, 2012 Bloomberg Ticker GDP Factors. 
  

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	3.	Indexed Replacement Parts EBIT Margin. 

 “Indexed
Replacement Parts EBIT Margin” is equal to the product of (i) 26.6% (which represents JV Truck Replacement Parts Profit Margin calculated pursuant to Part II below) and (ii) the respective year’s GDP Indexed Baseline
Replacement Parts Sales Amount. 
  

	4.	Replacement Parts Working Capital Charge. 

 “Replacement Parts Working Capital Charge” is equal to the product of (i) 15/365; (ii) the respective year’s GDP Indexed Baseline Replacement Parts Sales Amount and (iii) 6%. 
  

	5.	Years Six through Ten. 

 Notwithstanding the foregoing, for
each of Year Six through Year Ten, the respective year’s Replacement Parts Baseline EBIT is equal to the Year Five Replacement Parts Baseline EBIT. 
  

	II.	 Profitability Components2 

 This Part II describes the components of, and the methodology used to calculate, Legacy Profit Amount, JV Truck Profit Margin and JV Truck Replacement Part Profit Margin.

 Navistar Legacy Profit Amount for sales of JV Trucks and JV Truck Replacement Parts by Navistar in the Legacy Countries. 
 “Legacy Profit Amount” is equal to the sum of: 
  

	 	i.	Legacy JV Truck Gross Margin; less 

  

	 	ii.	Legacy JV Truck Engineering Expense; less 

  

	 	i.	Legacy JV Truck selling, general and administrative (“SG&A”) Expense; plus 

  

	 	ii.	Legacy JV Truck Replacement Parts Baseline EBIT. 

 “JV Truck
Profit Margin” is calculated using the following components: 
  

	 	i.	Legacy JV Truck Gross Margin; 

  

	 	ii.	Legacy JV Truck Engineering Expense; and 

  

	 	iii.	Legacy JV Truck SG&A Expense. 

 “JV Truck Replacement Parts
Profit Margin” is calculated using the following component: 
  

	 	i.	Legacy JV Truck Replacement Parts Baseline EBIT. 

 The relevant
definitions, source materials and a detailed breakdown of each of the foregoing components are set forth below. 
  
  

	2
	 This calculation assumes a 5% mark-up on engineering costs. 

  

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 Overview of Formula Components and Key Definitions 
 Legacy JV Truck Gross Margin. 
 Legacy JV Truck Gross Margin is equal
to Revenue minus Cost of Goods Sold. 
  

	 	•	 	 Calculation of JV Truck Gross Margin. 

  

	 	•	 	 Step 1. The reported gross margin for each Legacy Country is computed by combining the gross margin from each reported model gross margin profit and loss
statement described below. 

  

	 	•	 	 A reported gross margin profit and loss statement is established for each Legacy Country by model, as follows: 

  

	 	•	 	 Revenue. Revenue equals the sum of items 1 – 6 below, which may be identified for each Legacy Country and each model directly from the GPA reports as
follows: 

  

			
	 VC GAAP Item
	  	 Equivalent GPA Report Item

		
	 1. “Total Sales @ dealer net”
	  	“D-Net”
		
	 2. “Direct SPA”
	  	“SPA Amt” minus “GP”
		
	 3. “Goods Purchase Revenue”
	  	“GoodsPur”
		
	 4. “Freight Revenue”
	  	“Freight/Ins”
		
	 5. “Other Revenues”
	  	Estimated using a methodology based on “D-Net”
		
	 6. “Collateral Sales”
	  	[all relate to Australia]

  

	 	•	 	 Cost of Good Sold. All cost of goods sold line items are estimated using a cost allocation methodology, which is either based on (i) the percentage
relationship between each cost line item and D-Net sales from the VC GAAP consolidating gross margin statement by model; or (ii) units across the entire model, as outlined in Appendix II. 

  

	 	•	 	 Step 2. Pro Forma Adjustments. The reported country gross margin profit and loss statement has been reviewed by the Global Operations Finance team to
identify certain pro-forma adjustments to calculate a pro-forma gross margin profit and loss statement. 

  

	 	•	 	 In order to address certain miscategorized items and historical anomalies in connection with historical calculation of the Baseline Profit Amount, the following
pro-forma adjustments to the reported gross margin for each country have been agreed upon by the Members: 

  

	 	1.	Exchange gains and losses - Transaction gains/losses (primarily relating to purchases from the Brazil plant in local currency) are reported below gross margin. This
adjustment reclassifies this line item to gross margin. 

  

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	 	2.	Unrelated overhead - The adjustment eliminates overhead costs relating to the Military product group within the Severe Service (“SSVC”) line misallocated to
the JV product lines. 

  

	 	3.	Inventory write-down / revaluation - The adjustment excludes the revaluation adjustment relating to Inventory balances unrelated to the Global Operations business.

  

	 	4.	Finance charges - Historical finance charges primarily include charges from Mexico to Global Operations for excess inventory of finished product carried by Mexico to support
Global Operations. 

  

	 	•	 	 Going forward, these costs are not expected to be incurred as Navistar will only manufacture to order for the JV and will not carry inventory.

  

	 	5.	Other general operating (“GO”) variances - The adjustment consists of: 

  

	 	•	 	 Clawback charges - For Mexican tax purposes, Mexico has historically charged Global Operations for Company employees working for the Blue Diamond JV. Such
transaction has no financial impact on the JV Truck segment’s overall profitability, as the cost booked at Global Operations level is offset by the related income recorded at the Mexico Total Truck level. The adjustment excludes this
non-operational cost from the pro-forma gross margin. 

  

	 	6.	Other One-Time Items - identification of any other non-recurring items. 

  

	 	•	 	 Step 3: The Legacy JV Truck Gross Margin is then calculated by aggregating each of the pro-forma country gross margin profit and loss statements of the
Legacy Countries. 

  

	 	•	 	 Source Information. Preparation of the Legacy JV Truck Gross Margin Profit and Loss Statement requires the following source information from internal
Navistar systems: 

  

	 	•	 	 A consolidating gross margin profit and loss statement by model from VC GAAP for the Global Operations business. 

  

	 	•	 	 Sales and units by country and by model from the GPA reports. 

 Legacy JV Truck Engineering Expenses 
 Legacy JV Truck Engineering Expenses are equal to the sum of all JV Truck
engineering costs allocated to each of the Legacy Countries, as outlined under “Calculation of JV Truck Engineering Expenses” below. 
  

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	 	•	 	 Calculation of Legacy JV Truck Engineering Expenses. 

  

	 	•	 	 JV Truck engineering projects are reviewed by the Engineering group (Fort Wayne) in order to identify the projects that benefit the JV business.

  

	 	•	 	 The costs relating to these JV-related projects are classified in four categories, depending on which model or vehicle center they relate to:

  

	 	1.	Medium 

  

	 	2.	Severe 

  

	 	3.	Heavy 

  

	 	4.	9800 model 

  

	 	•	 	 Such expenses are then allocated to each country based on the number of relevant units sold in the respective country. 

  

	 	•	 	 Source Information. JV Truck engineering costs by project and by vehicle center information are derived as set forth in Appendix III.

 Legacy JV Truck SG&A Expenses 
 Legacy JV Truck SG&A Expenses are equal to the sum of all pro-forma SG&A expenses allocated to each of the Legacy Countries, as outlined under “Calculation of SG&A Expense” below. 
  

	 	•	 	 Calculation of Legacy JV Truck SG&A Expenses. 

  

	 	•	 	 SG&A information is reviewed by the Global Operations Finance team in order to identify pro-forma adjustments, if any, that need to be made to the reported
SG&A expenses to reflect a normalized level of SG&A expenses for the JV business. In order to address certain miscategorized items and historical anomalies in connection with historical calculation of the Baseline Profit Amount, the
following pro-forma adjustments to SG&A expense have been agreed upon by the Members: 

  

	 	1.	Salary and benefits - The adjustment is an allocation for Global Operations-related employees classified in cost centers outside of Global Operations.

  

	 	2.	Military & Bus - The adjustment eliminates the non-recurring allocation from the South Africa regional office to Military and Dubai for a military -related contract
which expires in December 2008. The amount also includes an adjustment for the time spent by Global Operations employees on non-JV related segments (i.e., Military and Bus). 

  

	 	3.	General IT allocations - The adjustment excludes the IT costs that are not related to the Global Operations business. 

  

	 	4.	FALD program - The adjustment excludes the costs relating to the Finance Accounting Leadership Development program which are unrelated to the Global Operations business.

  

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	 	•	 	 Pro-forma SG&A expenses are classified in four categories, depending on which country or group of countries they relate to: 

  

	 	1.	Latin America for the costs centers BETM2, BETM4 and BETM5; 

  

	 	2.	Middle East for the cost centers DUB and BODUB; 

  

	 	3.	South Africa for the cost centers JOH and BOJOH; 

  

	 	4.	World Headquarter (“WHQ”) for the cost centers B235, B236, B237 and B247. 

  

	 	•	 	 Such pro forma expenses are then allocated to each relevant country based on the number of units sold in the respective country. 

  

	 	•	 	 Source Information. SG&A expenses by cost center and by type are included in Appendix IV. 

 Legacy JV Truck Replacement Parts EBIT 
 Legacy JV Truck Replacement
Parts EBIT is equal to Legacy JV Truck Replacement Parts Gross Margin minus Legacy JV Truck Replacement Parts SG&A Expenses minus SOW Legacy Replacement Parts Infrastructure Costs for the period as related to Legacy JV Truck Replacement
Parts sold. 
  

	 	•	 	 Calculation of Legacy JV Truck Replacement Parts EBIT. 

  

	 	•	 	 Legacy JV Truck Replacement Parts Gross Margin. 

  

	 	•	 	 Legacy JV Truck Replacement Parts gross margin is equal to the aggregation of the Legacy JV Truck gross margin allocated to each of the Legacy Countries.

  

	 	•	 	 Sales and cost of sales information for each Legacy Country derive from the sales and standard gross margin by country information. These numbers are adjusted for:

  

	 	1.	Warranty - The adjustment excludes the sales and associated cost of sales which are recorded in the ledger in connection with warranty transactions (i.e. delivery of
replacement parts under warranty). Warranty sales directly derive from warranty transactions by country information whereas associated cost of sales are estimated at 50.6% of sales. 

  

	 	2.	Core mark-up - Upon a purchase of certain parts, customers pay a deposit which is recorded as a sale in the ledger (“core mark-up”) and will be reimbursed when they
return the related parts within a certain period of time. The adjustment excludes the core mark up sales that have not yet been earned. 

  

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	 	•	 	 Legacy JV Truck Replacement Parts SG&A Expenses 

  

	 	•	 	 Legacy JV Truck Replacement Parts SG&A equals the sum of all JV Truck Parts SG&A expenses allocated to each of the Legacy Countries.

  

	 	•	 	 JV Truck Replacement Parts SG&A expenses are defined as the sum of each of the following: 

  

	 	1.	The direct expenses for the Global Operations JV Truck Replacement Parts business before any corporate overhead; 

  

	 	2.	Export Truck Parts Order Processing and Expediting SG&A (sub-ledger EK 516 SGA); 

  

	 	3.	Pension and Other Post-Employment Benefits (“OPEB”) and Healthcare costs relating to all employees related to the Global Operations truck business and the Export
Truck Parts Order Processing and Expediting business, less the direct benefit charge for foreign-based Export sales staff; and 

  

	 	4.	SOW Infrastructure Legacy Replacement Parts Cost 

  

	 	•	 	 SOW Infrastructure Legacy Replacement Parts Costs are defined as the portion of those costs described in the Statement of Work – Parts Group Infrastructure
Cost Recovery that relate to Legacy sales for the period. 

  

	 	•	 	 Such costs relate to the performance of certain services provided by Navistar as a result of selling replacement parts to the JV at “pass through cost”
level (Tier 1 pricing) – as described in Section 1.2.1 of Master Component Supply Agreement No. 2 (“CSA No. 2”). 

  

	 	•	 	 These costs will be determined annually, during the term of the Legacy JV Truck Replacement Parts Baseline Profit Calculation, and will be used to adjust both the
Baseline and the actual Legacy Profit Amounts achieved as shown in Appendix VIII. 

  

	 	•	 	 All JV Truck Replacement Parts SG&A Expenses are allocated to each country based on JV Truck Replacement Parts sales dollars. 

  

	 	•	 	 Source Information. The following source information is required (see Appendix V): 

  

	 	•	 	 Non-Core JV Truck Replacement Part sales and standard gross margin by country; 

  

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	 	•	 	 Warranty transactions by country; 

  

	 	•	 	 Core mark-up transactions by country; 

  

	 	•	 	 Global Operations SG&A specifically identifiable expenses; 

  

	 	•	 	 Export Truck Parts Order Processing and Expediting SG&A (sub-ledger EK 516 SGA); and 

  

	 	•	 	 Pension, OPEB and Healthcare costs relating to all employees related to the Global Operations truck business and the Export Truck Parts Order Processing and
Expediting business, less the direct benefit charge for foreign-based Export sales staff. 

 Legacy Countries. 
  

	 	•	 	 See Appendix V and Appendix VI for current lists of Legacy Countries with respect to the JV Truck and JV Truck Replacement Parts businesses,
respectively, excluding military and government sales and loose engine sales (including those to Perkins). 

  

	III.	Legacy Profit Amount Calculation 

 The Navistar
Legacy Profit Amount and the Company Legacy Profit Amount shall be calculated on an annual basis, with the first year commencing on November 1, 2009, consistent with the methodology set forth in Part II hereof, adjusted as may be required to
reflect sales by Navistar, or the Company, as the case may be. 
  

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 Appendix I 
 Initial Baseline Truck Sales Amount by Legacy Country 
  

			
	 $ in 000s
	  	NAV
	 Colombia
	  	146,706
	 Peru
	  	116,140
	 Chile
	  	51,290
	 Costa Rica
	  	24,485
	 Venezuela
	  	21,227
	 Ecuador
	  	15,089
	 Guatemala
	  	12,192
	 Haiti
	  	10,476
	 Saudi Arabia
	  	7,410
	 Honduras
	  	7,170
	 Dominican Republic
	  	6,185
	 U.A.E.
	  	5,425
	 Panama
	  	4,827
	 New Zealand
	  	3,867
	 Nicaragua
	  	2,887
	 El Salvador
	  	2,726
	 Egypt
	  	1,414
	 Bahamas
	  	1,108
	 Tanzania
	  	1,105
	 Israel
	  	1,081
	 Iraq
	  	1,023
	 Qatar
	  	897
	 Morocco
	  	686
	 Uruguay
	  	643
	 Trinidad and Tabago
	  	502
	 Taiwan
	  	500
	 Kuwait
	  	430
	 Oman
	  	311
	 Curacao
	  	262
	 Guam
	  	197
	 Slovakia
	  	141
	 Granada
	  	68
	 Ghana
	  	61
	 Jamaica
	  	61
	 Algeria
	  	50
	 Diff.
	  	47
		  	 
	 Total Net Sales - All Fish Fry Trucks*
	  	448,687

  

 11 of 20 

 Appendix II 
 Methodology Used for Each Income Statement Line Item Allocation to a Specific Country’s Model 
  

			
	 P&L line item by model and by country
	  	 Allocation Methodology

	 Total Units
	  	Direct
		
	 Total Sales @ Dealer Net
	  	Direct
	 Direct SPA
	  	Direct
	 Price Guarantee
	  	Dealer-Net by model
	 Finance Makeup
	  	Dealer-Net by model
	 Misc Vendor Assistance
	  	Dealer-Net by model
	 Goods Purchased Revenue
	  	Direct
	 Miscellaneous Sales
	  	Dealer-Net by model
	 Freight Revenue
	  	Direct
	 Retail Profit Used
	  	Dealer-Net by model
	 Used Truck Sales
	  	Dealer-Net by model
	 Special P&D
	  	Dealer-Net by model
	 Standard Material
	  	Dealer-Net by model
	 Standard Material Adj
	  	Dealer-Net by model
	 BDT Standard Material
	  	Dealer-Net by model
	 BDT Variances
	  	Dealer-Net by model
	 Used Truck Cost
	  	Dealer-Net by model
	 Vendor Assistance
	  	Dealer-Net by model
	 Federal Excise Tax
	  	Dealer-Net by model
	 Material Price Variance
	  	Dealer-Net by model
	 MPV Adj
	  	Dealer-Net by model
	 Material Exchange Variance
	  	Dealer-Net by model
	 Design-Compass
	  	Dealer-Net by model
	 Customs Fee
	  	Dealer-Net by model
	 InterCo Collateral Profit Elim
	  	Dealer-Net by model
	 InterCo Corp Variable Adj
	  	Dealer-Net by model
	 Collateral Cost
	  	Dealer-Net by model
	 Standard COS - Variable Overhead incl Direct Labor
	  	Dealer-Net by model
	 Performance Variance - Variable OH incl Direct Labor
	  	Dealer-Net by model
	 Other Plant Variances - Variable OH
	  	Dealer-Net by model
	 Goods Purchased
	  	Goods purchased margin by model
	 Truck Operating Lease Costs
	  	Dealer-Net by model
	 Total Finance Charges
	  	Net sales
	 Warranty
	  	Dealer-Net by model
	 Outbound Freight
	  	Units
	 Regular P&D Cost
	  	Units
	 Special P&D Cost
	  	Units
	 Miscellaneous COS
	  	Dealer-Net by model
	 Standard COS - Fixed Overhead
	  	Dealer-Net by model
	 InterCo Corp OH Adj
	  	Dealer-Net by model
	 Performance Variance - Fixed OH
	  	Dealer-Net by model
	 Volume Variance - Fixed OH
	  	Dealer-Net by model
	 Other Plant Variances - Fixed OH
	  	Dealer-Net by model
	 Other Plant Variances - Fixed OH CME
	  	Dealer-Net by model
	 Other Plant Variances - Fixed OH CFI
	  	Dealer-Net by model
	 Idle Capacity Costs
	  	Dealer-Net by model
	 PPC Adjustments
	  	Dealer-Net by model
	 Product Cost Takeout
	  	Dealer-Net by model
	 Reliability & Quality
	  	Dealer-Net by model
	 Other GO Variance
	  	Dealer-Net by model
	 Inventory Revaluation
	  	Dealer-Net by model
	 Inventory Writedown
	  	Dealer-Net by model

  

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 Appendix III 
 Engineering Source Documents 
  

									
	 9800 Unrelated Programs
 $ in 000s
	  	FY08
	  	Medium	  	Severe	  	Heavy	  	Total
	 Overview
	  		  		  		  	
	 Maintenance / sustaining
	  	125	  	563	  	438	  	1,126
	 Product development
	  	21	  	445	  	247	  	712
	 Refresh
	  	—  	  	—  	  	—  	  	—  
		  	 	  	 	  	 	  	 
	 Total*
	  	146	  	1,007	  	685	  	1,838
		  	 	  	 	  	 	  	 
	 Fish Fry allocation
	  		  		  		  	
	 South Africa
	  	—  	  	0	  	157	  	157
	 Australia
	  	—  	  	19	  	—  	  	19
	 Russia
	  	—  	  	25	  	67	  	91
	 China
	  	0	  	3	  	—  	  	3
	 Non-core
	  	146	  	961	  	461	  	1,568
		  	 	  	 	  	 	  	 
	 Total
	  	146	  	1,007	  	685	  	1,838
		  	 	  	 	  	 	  	 
	 Note - TTM08 costs = 1/4*FY07 + YTD08
	  		  		  		  	
	 Details
	  		  		  		  	
	 Average cost per unit
	  		  		  		  	
	 Maintenance / sustaining
	  	0.1	  	0.1	  	0.2	  	0.2
	 Product development
	  	0.0	  	0.1	  	0.1	  	0.1
	 Refresh
	  	—  	  	—  	  	—  	  	—  
	 Fish Fry allocation
	  		  		  		  	
	 Maintenance / sustaining
	  	—  	  	0	  	101	  	101
	 Product development
	  	—  	  	0	  	57	  	57
	 Refresh
	  	—  	  	—  	  	—  	  	—  
		  	 	  	 	  	 	  	 
	 South Africa
	  	—  	  	0	  	157	  	157
	 Maintenance / sustaining
	  	—  	  	10	  	—  	  	10
	 Product development
	  	—  	  	8	  	—  	  	8
	 Refresh
	  	—  	  	—  	  	—  	  	—  
		  	 	  	 	  	 	  	 
	 Australia
	  	—  	  	19	  	—  	  	19
	 Maintenance / sustaining
	  	—  	  	14	  	43	  	56
	 Product development
	  	—  	  	11	  	24	  	35
	 Refresh
	  	—  	  	—  	  	—  	  	—  
		  	 	  	 	  	 	  	 
	 Russia
	  	—  	  	25	  	67	  	91
	 Maintenance / sustaining
	  	0	  	2	  	—  	  	2
	 Product development
	  	0	  	1	  	—  	  	1
	 Refresh
	  	—  	  	—  	  	—  	  	—  
		  	 	  	 	  	 	  	 
	 China
	  	0	  	3	  	—  	  	3
	 Maintenance / sustaining
	  	125	  	537	  	295	  	956
	 Product development
	  	21	  	424	  	166	  	611
	 Refresh
	  	—  	  	—  	  	—  	  	—  
		  	 	  	 	  	 	  	 
	 Non-core
	  	146	  	961	  	461	  	1,568
	 Maintenance / sustaining
	  	125	  	563	  	438	  	1,126
	 Product development
	  	21	  	445	  	247	  	712
	 Refresh
	  	—  	  	—  	  	—  	  	—  
		  	 	  	 	  	 	  	 
	 Total
	  	146	  	1,007	  	685	  	1,838
	 Units
	  		  		  		  	
	 South Africa
	  	—  	  	1	  	479	  	480
	 Australia
	  	—  	  	73	  	—  	  	73
	 Russia
	  	—  	  	97	  	203	  	300
	 China
	  	2	  	11	  	—  	  	13
	 Non-core
	  	1,423	  	3,778	  	1,404	  	6,605
		  	 	  	 	  	 	  	 
	 Total
	  	1,425	  	3,960	  	2,086	  	7,471
		  	 	  	 	  	 	  	 

  

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 Appendix III (cont’d) 
 Engineering Source Documents 
  

									
	 9800 Unrelated Programs
 $ in 000s
	  	FY08
	  	Medium	  	Severe	  	Heavy	  	Total
	 Maintenance / sustaining
	  		  		  		  	—  
	 Product development
	  		  		  	402	  	402
	 Refresh
	  		  		  	1,567	  	1,567
		  	 	  	 	  	 	  	 
	 Total*
	  	—  	  	—  	  	1,969	  	1,969
		  	 	  	 	  	 	  	 
	 Fish Fry allocation
	  		  		  		  	
	 South Africa
	  		  		  	1,238	  	1,238
	 Australia
	  		  		  	—  	  	—  
	 Russia
	  		  		  	455	  	455
	 China
	  		  		  	—  	  	—  
	 Non-core
	  		  		  	277	  	277
		  	 	  	 	  	 	  	 
	 Total
	  	—  	  	—  	  	1,969	  	1,969
		  	 	  	 	  	 	  	 
	 Note - TTM08 costs = 1/4*FY07 + YTD08
	  		  		  		  	
	 Units
	  		  		  		  	
	 South Africa
	  		  		  	479	  	479
	 Australia
	  		  		  	—  	  	—  
	 Russia
	  		  		  	176	  	176
	 China
	  		  		  	—  	  	—  
	 Non-core
	  		  		  	107	  	107
		  		  		  	 	  	 
	 Total
	  		  		  	762	  	762
		  		  		  	 	  	 

  

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 Appendix IV 
 SG&A Source Documents 
  

																																				
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Pro-forma Analysis	 
	 	 	 	 	 	Pro-forma adjustments	 	 	 	 	 	Core Countries	 	 	 	 
	 $ in 000s
	 	Reported
Fish Fry	 	 	Salary +
benefits	 	Military
& Bus 	 	 	General
IT
allocations	 	 	FALD
program	 	 	Pro-forma
Fish Fry	 	 	South
Africa	 	 	Australia	 	 	Russia	 	 	China	 	 	Total Core	 	 	Total
Non-
core	 
	 Salary and benefits
	 	6,085	  	 	1,511	 	(266	) 	 	—  	  	 	—  	  	 	7,330	  	 	1,763	  	 	132	  	 	865	  	 	23	  	 	2,783	  	 	4,547	  
	 Travel
	 	2,219	  	 	—  	 	—  	  	 	—  	  	 	—  	  	 	2,219	  	 	492	  	 	55	  	 	237	  	 	10	  	 	793	  	 	1,426	  
	 Telephone
	 	371	  	 	—  	 	—  	  	 	—  	  	 	—  	  	 	371	  	 	140	  	 	6	  	 	76	  	 	1	  	 	223	  	 	148	  
	 Total Materials and Supplies
	 	104	  	 	—  	 	—  	  	 	—  	  	 	—  	  	 	104	  	 	44	  	 	2	  	 	7	  	 	0	  	 	53	  	 	51	  
	 Total Business Services
	 	834	  	 	—  	 	—  	  	 	—  	  	 	—  	  	 	834	  	 	397	  	 	9	  	 	120	  	 	2	  	 	528	  	 	306	  
	 Total Rentals
	 	399	  	 	—  	 	—  	  	 	—  	  	 	—  	  	 	399	  	 	108	  	 	3	  	 	42	  	 	0	  	 	153	  	 	246	  
	 Total Advertising/Promotion
	 	646	  	 	—  	 	—  	  	 	—  	  	 	—  	  	 	646	  	 	246	  	 	24	  	 	99	  	 	4	  	 	373	  	 	273	  
	 Other
	 	854	  	 	—  	 	—  	  	 	—  	  	 	—  	  	 	854	  	 	298	  	 	4	  	 	85	  	 	1	  	 	388	  	 	466	  
	 Total Services Received
	 	1,421	  	 	—  	 	305	  	 	(522	) 	 	(85	) 	 	1,118	  	 	194	  	 	(2	) 	 	122	  	 	(0	) 	 	314	  	 	804	  
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Direct SG&A expense
	 	12,933	  	 	1,511	 	39	  	 	(522	) 	 	(85	) 	 	13,875	  	 	3,681	  	 	233	  	 	1,653	  	 	42	  	 	5,608	  	 	8,267	  
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 % of net sales
	 	2.4	% 	 		 			 			 			 	2.6	% 	 	7.4	% 	 	2.3	% 	 	7.1	% 	 	5.8	% 	 	6.7	% 	 	1.8	% 

 Pro-forma adjustment descriptions 
 Salary + benefits 
 The adjustment includes an allocation for certain Export-related (and therefore Fish Fry)
employees classified in cost centers outside of the Export business 
 Military & Bus 
 The adjustment eliminates the non-recurring allocation from the South Africa regional office to Military and Dubai for a military-related contract (the contract expires
in Dec-08). The amount also includes an adjustment for approximately 15% of time spent by Export employees on non-Fish Fry related segments (i.e. Military & Bus) 
 General IT allocations 
 The Company historically allocated general IT costs to the Export business. During FY07, the
allocation included ~$200 related to specific Export IT employees, while all other costs were unrelated to the Export business. The adjustment eliminates this general allocation to present the actual specific IT costs related to the Fish Fry JV in
the historical periods. 
 FALD program 
 The Company
historically allocated costs relating to the Finance Accounting Leadership Development program to the Export business. The costs related to this program are unrelated to the Fish Fry JV. 
  

 15 of 20 

 Appendix V 
 JV Truck business - Legacy Countries 
 Algeria 
 Bahamas 
 Chile 
 Colombia

 Costa Rica 
 Curacao 
 Dominican Republic 
 Ecuador 
 Egypt 
 El Salvador 
 Ghana 
 Granada 
 Guam 
 Guatemala 
 Haiti

 Honduras 
 Iraq 
 Israel 
 Jamaica 
 Kuwait 
 Morocco 
 New Zealand

 Nicaragua 
 Oman 
 Panama 
 Peru 
 Qatar 
 Saudi Arabia 
 Slovakia

 Taiwan 
 Tanzania 
 Trinidad and Tobago 
 Tunisia 
 United Arab Emirates 
 Uruguay 
 US Virgin Islands 
 Venezuela 
  

 16 of 20 

 Appendix VI 
 JV Truck Replacement Parts Business 
 A. Source Documents 
  

				
	 USD in 000’s
	  	Sales	 
	 ALGERIA
	  	426	  
	 AMERICAN SAMOA
	  	2	  
	 BAHAMAS
	  	85	  
	 BAHRAIN
	  	46	  
	 BELIZE
	  	15	  
	 BOLIVIA
	  	0	  
	 CHILE
	  	5,102	  
	 COLOMBIA
	  	15,788	  
	 COSTA RICA
	  	1,448	  
	 CURACAO
	  	66	  
	 DOMINICAN REPUBLIC
	  	802	  
	 ECUADOR
	  	1,863	  
	 EGYPT
	  	51	  
	 EL SALVADOR
	  	627	  
	 ENGLAND
	  	(168	) 
	 GREECE
	  	0	  
	 GUAM
	  	67	  
	 GUATEMALA
	  	2,751	  
	 Guayana
	  	19	  
	 HAITI
	  	336	  
	 HONDURAS
	  	2,125	  
	 Jamaica
	  	99	  
	 LEBANON
	  	68	  
	 NEW ZEALAND
	  	736	  
	 NICARAGUA
	  	490	  
	 PANAMA
	  	1,469	  
	 PERU
	  	2,874	  
	 PHILIPPINES
	  	(0	) 
	 QATAR
	  	134	  
	 SINGAPORE
	  	49	  
	 SOUTH KOREA
	  	78	  
	 SPAIN
	  	6	  
	 TAIWAN
	  	668	  
	 TRINIDAD
	  	97	  
	 TUNISIA
	  	(4	) 
	 U.A.E.
	  	5,939	  
	 URUGUAY
	  	558	  
	 VENEZUELA
	  	628	  
	 ZIMBABWE
	  	66	  
	 OTHER
	  	113	  
		  	 	 
	 Non-core
	  	45,522	  

  

 17 of 20 

 B. JV Truck Replacement Parts business - Legacy countries 
  

			
	 Algeria
	  	Honduras
	 American Samoa
	  	Jamaica
	 Bahamas
	  	Lebanon
	 Bahrain
	  	New Zealand
	 Belize
	  	Nicaragua
	 Bolivia
	  	Panama
	 Chile
	  	Peru
	 Colombia
	  	Philippines
	 Costa Rica
	  	Qatar
	 Curacao
	  	Singapore
	 Dominican Republic
	  	South Korea
	 Ecuador
	  	Spain
	 Egypt
	  	Swagman
	 El Salvador
	  	Taiwan
	 England
	  	Trinidad and Tobago
	 Greece
	  	Tunisia
	 Guatemala
	  	United Arab Emirates
	 Guyana
	  	Uruguay
	 Guam
	  	Venezuela
	 Haiti
	  	Zimbabwe

  

 18 of 20 

 Appendix VII 
 Non-Core Truck Gross Margin Profit and Loss Statement Source Documents 
 A Truck Baseline EBIT

  

															
	 	  	 	 	 	JV cost definition	  	 	 
	 $ in 000s / qtys in actuals
	  	FY08 As
Reported	 	 	Excluded
cost	  	Cost +2.5%	  	Cost + 5%	  	Cost	  	FY08 with
mark-ups	 
	 Total Units
	  	6,605	  	 		  		  		  		  	6,605	  
	 Net Sales - All Fish Fry Trucks
	  	448,687	  	 		  		  		  		  	448,687	  
	 Standard Material
	  	816,250	  	 		  	X	  		  		  	836,656	  
	 Standard Material Adj
	  	(516,950	) 	 		  	X	  		  		  	(529,873	) 
	 BDT Standard Material
	  	46,146	  	 		  	X	  		  		  	47,300	  
	 BDT Variances
	  	2,744	  	 		  	X	  		  		  	2,813	  
	 Vendor Assistance
	  	51	  	 		  	X	  		  		  	53	  
	 Federal Excise Tax
	  	(692	) 	 		  	X	  		  		  	(709	) 
	 Material Price Variance
	  	485	  	 		  	X	  		  		  	497	  
	 MPV Adj
	  	119	  	 		  	X	  		  		  	122	  
	 Material Exchange Variance
	  	(6	) 	 		  	X	  		  		  	(6	) 
	 Customs Fee
	  	—  	  	 		  	X	  		  		  	—  	  
	 InterCo Collateral Profit Elim
	  	(172	) 	 		  	X	  		  		  	(176	) 
	 InterCo Corp Variable Adj
	  	(688	) 	 	X	  		  		  		  	—  	  
	 Collateral Cost
	  	0	  	 		  	X	  		  		  	0	  
		  	 	 	 		  	 	  		  		  	 	 
	 Direct material
	  	347,288	  	 		  		  		  		  	356,675	  
	 Standard COS - Variable Overhead incl Direct Labor
	  	5,485	  	 		  	X	  		  		  	5,622	  
	 Performance Variance - Variable OH incl Direct Labor
	  	634	  	 		  	X	  		  		  	650	  
	 Other Plant Variances - Variable OH
	  	369	  	 		  	X	  		  		  	379	  
	 Regular P&D Cost
	  	1,336	  	 		  	X	  		  		  	1,369	  
	 Miscellaneous COS
	  	(680	) 	 		  	X	  		  		  	(697	) 
		  	 	 	 		  	 	  		  		  	 	 
	 Other variable costs
	  	7,144	  	 		  		  		  		  	7,322	  
	 Warranty
	  	3,143	  	 		  	X	  		  		  	3,222	  
	 Goods purchased
	  	27,594	  	 		  		  		  	X	  	27,594	  
	 Outbound freight
	  	8,469	  	 		  		  		  	X	  	8,469	  
	 Exchange Gain/Loss
	  	(272	) 	 		  		  		  	X	  	(272	) 
		  	 	 	 		  		  		  	 	  	 	 
	 Total variable costs
	  	393,366	  	 		  		  		  		  	403,011	  
		  	 	 	 		  		  		  		  	 	 
	 Variable margin
	  	55,321	  	 		  		  		  		  	45,676	  
	 % of net sales
	  	12.3	% 	 		  		  		  		  	10.2	% 
	 Performance Variance - Fixed OH
	  	1,259	  	 		  	X	  		  		  	1,291	  
	 Volume Variance - Fixed OH
	  	(7,943	) 	 		  	X	  		  		  	(8,141	) 
	 Other Plant Variances - Fixed OH
	  	(413	) 	 		  	X	  		  		  	(424	) 
	 Other Plant Variances - Fixed OH CME
	  	607	  	 		  	X	  		  		  	622	  
	 Other Plant Variances - Fixed OH CFI
	  	44	  	 		  	X	  		  		  	45	  
	 InterCo Corp OH Adj
	  	688	  	 	X	  		  		  		  	—  	  
	 Idle Capacity Costs
	  	—  	  	 	X	  		  		  		  	—  	  
	 PPC Adjustments
	  	(329	) 	 		  	X	  		  		  	(337	) 
		  	 	 	 		  	 	  		  		  	 	 
	 Variances - Fixed Overhead
	  	(6,086	) 	 		  		  		  		  	(6,943	) 
	 Product Cost Takeout
	  	(0	) 	 	X	  		  		  		  	—  	  
	 Other GO Variance
	  	810	  	 		  	X	  		  		  	830	  
		  	 	 	 		  	 	  		  		  	 	 
	 Other fixed manufacturing costs
	  	810	  	 		  		  		  		  	830	  
	 Standard COS - Fixed Overhead
	  	14,668	  	 		  	X	  		  		  	15,035	  
		  	 	 	 		  	 	  		  		  	 	 
	 Total fixed costs
	  	9,392	  	 		  		  		  		  	8,922	  
		  	 	 	 		  		  		  		  	 	 
	 Gross margin - Fish Fry Trucks
	  	45,929	  	 		  		  		  		  	36,754	  
	 % of net sales
	  	10.2	% 	 		  		  		  		  	8.2	% 
	 Direct engineering expenses
	  	1,844	  	 		  		  	X	  		  	1,936	  
	 Direct SG&A expenses
	  	8,267	  	 		  		  		  	X	  	8,267	  
		  	 	 	 		  		  		  	 	  	 	 
	 EBIT - Fish Fry Trucks
	  	35,818	  	 		  		  		  		  	26,551	  
		  	 	 	 		  		  		  		  	 	 
	 % of net sales - Trucks
	  	8.0	% 	 		  		  		  		  	5.9	% 
	 Cost of Working Capital to Fund AR (assumption of 15 days of AR @ 6% annually)
	    
	 		  		  		  		  	(1,106	) 
		  			 		  		  		  		  	 	 
	 Truck Baseline EBIT
	  			 		  		  		  		  	25,445	  
		  			 		  		  		  		  	 	 
							
	B Replacement Parts Baseline EBIT	  			 		  		  		  		  		
							
	 Net sales - Fish Fry Parts
	  	45,522	  	 		  		  		  		  	45,522	  
	 Cost of sales
	  	29,996	  	 		  		  		  	X	  	29,996	  
		  	 	 	 		  		  		  	 	  	 	 
	 Gross margin - Fish Fry Replacement Parts
	  	15,526	  	 		  		  		  		  	15,526	  
	 Parts SG&A
	  	1,599	  	 		  		  		  	X	  	1,599	  
	 Global Ops- Order Processing & Expediting
	  	324	  	 		  		  		  	X	  	324	  
	 Employee benefit charges
	  	51	  	 		  		  		  	X	  	51	  
	 Infrastructure Costs
	  	1,447	  	 		  		  		  	X	  	1,447	  
		  	 	 	 		  		  		  	 	  	 	 
	 EBIT - Fish Fry Replacement Parts
	  	12,105	  	 		  		  		  		  	12,105	  
		  	 	 	 		  		  		  		  	 	 
	 % net sales
	  	26.6	% 	 		  		  		  		  	26.6	% 
	 Cost of Working Capital to Fund AR (assumption of 15 days of AR @ 6% annually)
	    
	 		  		  		  		  	(112	) 
		  			 		  		  		  		  	 	 
	 Replacement Parts Baseline EBIT
	  			 		  		  		  		  	11,993	  
		  			 		  		  		  		  	 	 
	 EBIT excluding Working Capital Charge
	  			 		  		  		  		  	38,656	  
		  			 		  		  		  		  	 	 
	 Baseline Profit Amount including Working Capital Charge
	   
	 		  		  		  		  	37,437	  
		  			 		  		  		  		  	 	 

  

 19 of 20 

 Appendix VIII 
 Legacy Country Replacement Parts SOW Infrastructure Calculation 
  

																																																				
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Pro-forma Analysis	 
	 	 	 	 	 	Excluded Territories/Businesses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Core Countries	 	 	 	 
	 $ in 000s
	 	Total
Export*	 	 	Puerto
Rico	 	 	Military/
Perkins	 	 	Excluded
Business	 	 	Reported
ROW
Fish Fry	 	 	Warranty
adj 	 	 	Core
Mark-up	 	 	Brazil
sales
adj	 	 	Pro-forma
ROW
Fish Fry	 	 	South
Africa
	 	 	Australia	 	 	Russia	 	 	Brazil	 	 	China	 	 	Turkey	 	 	Total
Core	 	 	Total
Non-
core	 
	 Net sales - Fish Fry Parts
	 	84,084	  	 	(8,136	) 	 	(18,290	) 	 	(26,426	) 	 	57,658	  	 	(4,001	) 	 	(231	) 	 	384	  	 	53,809	  	 	4,660	  	 	1,670	  	 	984	  	 	708	  	 	264	  	 	1	  	 	8,285	  	 	45,524	  
	 Cost of sales
	 	51,637	  	 	(4,310	) 	 	(10,633	) 	 	(14,943	) 	 	36,694	  	 	(1,977	) 	 	(231	) 	 	309	  	 	34,796	  	 	2,626	  	 	893	  	 	518	  	 	589	  	 	175	  	 	0	  	 	4,800	  	 	29,996	  
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Gross margin - Fish Fry Parts
	 	32,446	  	 	(3,825	) 	 	(7,658	) 	 	(11,483	) 	 	20,963	  	 	(2,025	) 	 	—  	  	 	75	  	 	19,014	  	 	2,034	  	 	777	  	 	466	  	 	119	  	 	89	  	 	1	  	 	3,485	  	 	15,529	  
	 % net sales
	 	38.6	% 	 	47.0	% 	 	41.9	% 	 			 	36.4	% 	 	50.6	% 	 	0.0	% 	 	19.6	% 	 	35.3	% 	 	43.6	% 	 	46.5	% 	 	47.4	% 	 	16.8	% 	 	33.7	% 	 	71.1	% 	 	42.1	% 	 	34.1	% 
	 Export Parts SG&A
	 	2,818	  	 	(286	) 	 	(642	) 	 	(928	) 	 	1,890	  	 	NA	  	 	NA	  	 	NA	  	 	1,890	  	 	164	  	 	59	  	 	35	  	 	25	  	 	9	  	 	0	  	 	291	  	 	1,599	  
	 Global Ops- Order Processing & Expediting
	 	572	  	 	(58	) 	 	(130	) 	 	(188	) 	 	383	  	 	NA	  	 	NA	  	 	NA	  	 	383	  	 	33	  	 	12	  	 	7	  	 	5	  	 	2	  	 	0	  	 	59	  	 	324	  
	 Employee benefit charges
	 	89	  	 	(9	) 	 	(20	) 	 	(29	) 	 	60	  	 	NA	  	 	NA	  	 	NA	  	 	60	  	 	5	  	 	2	  	 	1	  	 	1	  	 	0	  	 	0	  	 	9	  	 	51	  
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 			 			 			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 EBIT
	 	28,967	  	 	(3,539	) 	 	(7,015	) 	 	(10,555	) 	 	19,073	  	 			 			 			 	16,680	  	 	1,832	  	 	704	  	 	424	  	 	88	  	 	77	  	 	1	  	 	3,126	  	 	13,555	  
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 			 			 			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Sales Allocation basis
	 	100.0	% 	 	-10.1	% 	 	-22.8	% 	 	-32.9	% 	 	67.1	% 	 	NA	  	 	NA	  	 	NA	  	 	67.1	% 	 	5.8	% 	 	2.1	% 	 	1.2	% 	 	0.9	% 	 	0.3	% 	 	0.0	% 	 	10.3	% 	 	56.7	% 
	 ROW Parts Sales Reconciliation
	 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 		
		 			 			 			 			 			 			 			 			 			 	SOW Infrastructure costs	        	 			 			 			 	(232	) 	 	(1,447	) 
		 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 	 	 	 	 	 
	 Export Sales per subledger
	 	76,147	  	 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 		
		 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 	 	 	 	 	 
	 Puerto Rico
	 	8,136	  	 			 			 			 			 			 			 			 			 	 EBIT Baseline after Infrastructure charges
	      
	 	2,894	  	 	12,108	  
		 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 	 	 	 	 	 
	 Intercompany (Brazil)
	 	324	  	 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 		
	 Timing differences
	 	(522	) 	 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 		
		 	 	 	 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 		
	 Sales per ledger detail
	 	84,084	  	 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 		
	 Brazil adjustment support
	 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 			 		
	 	 	External
sales per
ledger 	 	 	Interco
per
Sales
reports	 	 	Adj	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net sales
	 	708	  	 	(324	) 	 	384	  	 			 			 			 			 			 			 			 			 			 			 			 			 			 		
	 COS
	 	589	  	 	(280	) 	 	309	  	 			 			 			 			 			 			 			 			 			 			 			 			 			 		
		 	 	 	 	 	 	 	 	 	 			 			 			 			 			 			 			 			 			 			 			 			 			 		
	 Gross margin
	 	119	  	 	(44	) 	 	75	  	 			 			 			 			 			 			 			 			 			 			 			 			 			 		

 Parts Sales to Warranty 
 Represent sales recorded in the ledger for replacement parts under warranty. Sales are reversed at month-end via journal entry for warranty replacement parts. Cost of sales are reversed at 50.6% of the sales reversal.
The adjustment is allocated to each country based on actual results. 
 Core markup 
 Represents decrease of revenue due to the expiration of the liability for the core mark up on part sales. Sales are adjusted for the markup on core that has not yet been earned. The adjustment is allocated to each
country based on actual results. 
 SOW Infrastructure Costs 
 Represents costs charged to the JV by Navistar for infrastructure costs (as defined in the SOW) not otherwise covered in the sales price of parts to the JV. These costs are to be adjusted annually to actual costs billed to the JV for such
Legacy sales. 
  

					
	 The current estimates used for the BASELINE
	 	 {
	  	- Cost rate = 6.89% of sales to JV
	 calculations are as follows:
	 	  	- Assume 70% of parts sold are covered by the SOW
		 	  	- For BASELINE estimate - above rates will be applied to cost

  

	*	Export sales represents gross sales prior to sales adjustments made within this analysis 

  

 20 of 20 

 SCHEDULE 2.3.5 
 LEGACY COUNTRIES 
 Algeria 
 Bahamas 
 Chile 
 Colombia 
 Costa Rica 
 Curacao 
 Dominican Republic 
 Ecuador 
 Egypt 
 El Salvador 
 Ghana 
 Granada 
 Guam 
 Guatemala 
 Haiti

 Honduras 
 Iraq 
 Israel 
 Jamaica 
 Kuwait 
 Morocco 
 New Zealand

 Nicaragua 
 Oman 
 Panama 
 Peru 
 Qatar 
 Saudi Arabia 
 Slovakia

 Taiwan 
 Tanzania 
 Trinidad and Tobago 
 Tunisia 
 United Arab Emirates 
 Uruguay 
 U.S. Virgin Islands 
 Venezuela 

 SCHEDULE 3.1.2 
 MEMBERS’ PERCENTAGE INTEREST 
  

				
	 Member
	  	Percentage Interest	 
	 Caterpillar
	  	50	% 
	 Navistar
	  	50	% 

 SCHEDULE 15.3.3.2 
 EXISTING ARRANGEMENTS FOR SALES OF ENGINE PARTS 
 Engine Group (Navistar MaxxForce Only) 
  

									
	 Engine Model
	  	 Customer Name
	  	 Description of Arrangement
	  	Volume of Engines
Sold Last 180 Days	  	Notes
	4 Liter Engine Platform	  		  		  		  	
	 MWM Acteon 4.8 Euro III
	  	Volkswagen Brazil	  	Contract for 4.12 TCE Elect.	  	2,238	  	
	 MWM Acteon 4.8 Euro III
	  	Volvo Do Brazil	  	Contract for 4.12 TCE Elect.	  	16	  	
					
	7 Liter Engine Platform	  		  		  		  	
	 MWM Acteon 7.2 Euro III
	  	Volkswagen Brazil	  	Contract for 6.12 TCE Elect.	  	2,101	  	
	 MWM Acteon 7.2 Euro III
	  	Volvo Do Brazil	  	Contract for 6.12 TCE Elect.	  	1,169	  	
	 MWM DT466
	  	Navistar Mexico	  	Contract for 7.6I Elect.	  	840	  	
	 MWM Acteon 7.2 Euro IV
	  	None	  	None	  	0	  	
	 MWM Acteon 7.2 Euro V
	  	None	  	None	  	0	  	
					
	9 Liter Engine Platform	  		  		  		  	
	 MWM 9.3 Liter Euro III
	  	Volkswagen Brazil	  	Contract for 9.3I 360cv Elect.	  	884	  	
	 MWM - MXF 9/10 Liter
	  	Navistar Mexico	  	Contract for 9.3I Elect.	  	53	  	
	 MaxxForce 9.3 Liter Euro IV
	  	None	  	None	  	0	  	Launches in 2012
	 MaxxForce 9.3 Liter Euro V
	  	None	  	None	  	0	  	Launches in 2012
					
	13 Liter Engine Platform	  		  		  		  	
	 MaxxForce 13 Euro IV
	  	None	  	None	  	0	  	Launches in 2012
	 MaxxForce 13 Euro V
	  	None	  	None	  	0	  	Launches in 2012
	 MaxxForce 13 EPA 2007
	  	Navistar Truck	  	 Class 8 Trucks
 Line Haul and Severe Service
	  	2000	  	Launched October
of 2008
	 MaxxForce 13 EPA 2010
	  	Navistar Truck	  	 Class 8 Trucks
 Line Haul and Severe Service
	  	0	  	Launches April of
2010
					
	15 Liter Engine Platform	  		  		  		  	
	 MaxxForce 15 Euro V
	  	None	  	None	  	0	  	Launches in 2012
	 MaxxForce 15 EPA 2010
	  	Navistar Truck	  	 Class 8 Trucks
 Line Haul and Severe Service
	  	0	  	Launches in 2011

 Additional volumes of MWM engines for Agricultural or Off Road Construction applications are not listed.Indenture dated as of July 27, 2009

 Exhibit 4(a) 
 INDENTURE dated as of July 27, 2009 (the “Indenture”), between CELULOSA ARAUCO Y
CONSTITUCIÓN S.A., a corporation (sociedad anónima) organized under the laws of the Republic of Chile (the “Company”), having its principal office at Avenida El Golf 150, 14th Floor, Santiago, Chile, and THE BANK OF
NEW YORK MELLON, a New York banking corporation, as trustee hereunder (the “Trustee”). 
 Recitals of the Company 

The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of its debentures, notes, bonds or other
evidences of indebtedness, to be issued in one or more fully registered series. 
 All things necessary to make this Indenture a valid
agreement of the Company, in accordance with its terms, have been done. 
 Agreements of the Parties 
 To set forth or to provide for the establishment of the terms and conditions upon which the Securities (as defined below) are and are to be
authenticated, issued and delivered, and in consideration of the premises and the purchase of Securities (as defined below) by the Holders (as defined below) thereof, it is mutually covenanted and agreed as follows, for the equal and proportionate
benefit of all Holders of the Securities or of a series thereof, as the case may be: 
 ARTICLE ONE 
 Definitions and Other Provisions 
 of
General Application 
 SECTION 101. Definitions. For all purposes of this Indenture and of any indenture supplemental hereto,
except as otherwise expressly provided or unless the context otherwise requires: 
 (a) the terms defined in this Article have
the meanings assigned to them in this Article, and include the plural as well as the singular; 
 (b) all other terms used
herein that are defined in the Trust Indenture Act or by Commission rule under the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; 
 (c) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally
accepted in the 

 
Republic of Chile and in accordance with the accounting regulations adopted by the Superintendencia de Valores y Seguros applicable to all companies
in the Republic of Chile subject to the oversight of the Superintendencia de Valores y Seguros at the date of such computation; 
 (d) all references in this instrument to designated “Articles”, “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this instrument. The words
“herein”, “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; and 
 (e) “including” and words of similar import shall be deemed to be followed by “without limitation”. 
 “Act”, when used with respect to any Securityholder, has the meaning specified in Section 104. 
 “Additional Amounts” has the meaning specified in Section 308. 
 “Affiliate” means, with respect to any specified Person, any other Person directly or indirectly controlling or controlled by or under direct
or indirect common control with such specified Person. For purposes of this definition, “control”, when used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Attributable Value” means, as to any particular lease under which the Company or any Subsidiary is at any time liable as lessee and any date
as of which the amount thereof is to be determined, the total net obligations of the lessee for rental payments during the remaining term of the lease (including any period for which such lease has been extended or may, at the option of the lessor,
be extended) discounted from the respective due dates thereof to such date at a rate per annum equivalent to the interest rate inherent in such lease (as determined in good faith by the Company in accordance with generally accepted financial
practice). 
 “Authenticating Agent” means any Person authorized by the Trustee to authenticate Securities under Section 614.

 “Bankruptcy Law” has the meaning specified in Section 501. 
 “Board of Directors” means either the board of directors of the Company or any duly authorized committee of that board. 
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Board of Directors, to have been
duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee. 
  

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 “Business Day” means each day which is neither a Saturday, Sunday or other day on which banking
institutions in the pertinent Place or Places of Payment are authorized or required by law or executive order to be closed. 
 “Commission” means the U.S. Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after the execution of this instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 
 “Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions of this Indenture, and thereafter
“Company” shall mean such successor Person. 
 “Consent” means a written consent signed in the name of the Company, by
any two of the following: its Chairman of the Board, Vice Chairman of the Board, President or a Vice President, its Treasurer, Assistant Treasurer, its Controller, Assistant Controller, its Secretary or Assistant Secretary, its principal financial
officer, its principal accounting officer or any other officer, employee or agent of the Company, duly authorized by a Board Resolution and delivered to the Trustee. 
 “Consolidated Net Tangible Assets” means the total of all assets (including revaluations thereof as a result of commercial appraisals, price-level restatement or otherwise) appearing on a consolidated
balance sheet of the Company and its Subsidiaries, net of all applicable reserves and deductions, but excluding goodwill, trade names, trademarks, patents, unamortized debt discount, and all other like intangible assets (which term shall not be
construed to include such revaluations), less the aggregate of the current liabilities of the Company and its Subsidiaries appearing on such balance sheet (excluding the current portion of long term debt). 
 “Corporate Trust Office” means the principal corporate trust office of the Trustee in New York, New York at which at any particular time its
corporate trust business shall be principally administered, which office at the date hereof is located at 101 Barclay Street, Floor 4E, New York, New York 10286, Attention: International Corporate Trust; and such other offices as the Trustee may
designate from time to time. 
 “Defaulted Interest” has the meaning specified in Section 307. 
 “Depositary” means, unless otherwise specified by the Company pursuant to either Section 204 or 301, with respect to Securities of any
series issuable or issued as a Global Security, The Depository Trust Company, New York, New York, or any successor thereto registered as a clearing agency under the Exchange Act or other applicable statute or regulation. 
 “Event of Default” has the meaning specified in Section 501. 
  

 3 

 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended. 
 “Exchange Securities” has the meaning specified in Appendix A. 
 “Global Security” means, with respect to any series of Securities issued hereunder, a Security which is executed by the Company and
authenticated and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with this Indenture and an indenture supplemental hereto, if any, or Board Resolution and pursuant to a Company Request,
which shall be registered in the name of the Depositary or its nominee and which shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all of the Outstanding Securities of such series or any portion
thereof, in either case having the same terms, including the same original issue date, date or dates on which principal is due, and interest rate or method of determining interest and shall include any Rule 144A Global Security and any
Regulation S Global Security (each as defined in Appendix A). 
 “Holder”, when used with respect to any Security, means a
Securityholder. 
 “Indebtedness” means, with respect to any Person (without duplication), (a) any liability of such Person
(1) for borrowed money or under any reimbursement obligation under a letter of credit (other than letters of credit payable to suppliers in the ordinary course of business), financial bond or similar instrument or agreement, (2) evidenced
by a bond, note, debenture or similar instrument (including a purchase money obligation) given in connection with the acquisition of any business, properties or assets of any kind (other than a trade payable or a current liability arising in the
ordinary course of business), (3) for the payment of money relating to any obligations under any capital lease of real or personal property or (4) for purposes of Sections 1006 and 1007, under any agreement or instrument in respect of
an interest rate or currency swap, exchange or hedging transaction or other financial derivatives transaction; and (b) any liability of others described in the preceding clause (a) that the Person has guaranteed or that is otherwise its
legal liability. For the purpose of determining any particular amount of Indebtedness under this definition, guarantees of (or obligations with respect to letters of credit or financial bonds supporting) Indebtedness otherwise included in the
determination of such amount shall also not be included. 
 “Indenture” or “this Indenture” means this instrument as
originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall include the terms of each series of Securities
established as contemplated by Section 301. 
 “Interest”, when used with respect to an Original Issue Discount Security which
by its terms bears interest only after Maturity, means interest payable after Maturity. 
  

 4 

 “Interest Payment Date”, when used with respect to any series of Securities, means the Stated
Maturity of any installment of interest on those Securities. 
 “Judgment Currency” has the meaning specified in Section 117.

 “Lien” means any mortgage, pledge, lien, security interest, charge or other similar encumbrance (including any conditional sale
or other title retention agreement not in connection with the purchase of goods in the ordinary course of business which is outstanding for not more than 360 days). 
 “Manufacturing Facility” means any pulp mill, sawmill or wood processing facility of the Company or any Subsidiary of the Company. 
 “Maturity”, when used with respect to any Securities, means the date on which the principal of any such Security becomes due and payable as
therein or herein provided, whether on a Repayment Date, at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 
 “Officers’ Certificate” means a certificate signed by any two of the following: the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice President, the Treasurer, an Assistant
Treasurer, the Controller, an Assistant Controller, the Secretary or an Assistant Secretary, its principal financial officer, its principal accounting officer or any other officer, employee or agent of the Company duly authorized by a Board
Resolution and delivered to the Trustee. One of the Officers signing an Officers’ Certificate given pursuant to Section 604 shall be the principal executive, financial or accounting officer of the Company. Wherever this Indenture requires
that an Officers’ Certificate be signed also by an engineer or an accountant or other expert, such engineer, accountant or other expert (except as otherwise expressly provided in this Indenture or the TIA) may be in the employ of the Company,
and shall be acceptable to the Trustee, whose acceptance shall not be unreasonably withheld. 
 “OID” has the meaning specified in
Section 301. 
 “Opinion of Counsel” means a written opinion of counsel, who may (except as otherwise expressly provided in
this Indenture) be an employee of or of counsel to the Company. Such counsel and opinion shall be acceptable to the Trustee, whose acceptance shall not be unreasonably withheld. 
 “Order” means a written order signed in the name of the Company, by any two of the following: its Chairman of the Board, Vice Chairman of the
Board, President or a Vice President, its Treasurer, Assistant Treasurer, its Controller, Assistant Controller, its Secretary or Assistant Secretary, its principal financial officer, its principal accounting officer or any other officer, employee or
agent of the Company duly authorized by a Board Resolution and delivered to the Trustee. 
 “Original Issue Discount Security”
means (a) any Security which provides for an amount less than the principal amount thereof to be due and payable upon a 

  

 5 

 
declaration of acceleration of the Maturity thereof, and (b) any other Security deemed an Original Issue Discount Security for United States Federal
income tax purposes. 
 “Outstanding”, when used with respect to Securities or Securities of any series, means, as of the date of
determination, all such Securities theretofore authenticated and delivered under this Indenture, except: 
 (a) such
Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation; 
 (b) such Securities for whose
payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent in trust for the Holders of such Securities; provided that, if such Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and 
 (c) such Securities in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, or which shall have been paid pursuant to the terms of Section 306 (except with respect to any
such Security as to which proof satisfactory to the Trustee is presented that such Security is held by a Person in whose hands such Security is a legal, valid and binding obligation of the Company). 
 In determining whether the Holders of the requisite principal amount of such Securities Outstanding have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, (i) the principal amount of any Original Issue Discount Security that shall be deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable as of the date of the taking of such
action upon a declaration of acceleration of the Maturity thereof and (ii) Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to
be Outstanding. In determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible Officer of the Trustee actually knows to be
owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right to act as owner with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or such other
obligor. 
 “Paying Agent” means any Person authorized by the Company to pay the principal of (and premium, if any) or interest on
any Securities on behalf of the Company. 
  

 6 

 “Person” means any individual, corporation, limited liability company, partnership, joint
venture, association, company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
 “Place of Payment” means, with respect to any series of Securities issued hereunder, the city or political subdivision so designated with respect to the series of Securities in question in accordance with the provisions of
Section 301, which if not so designated shall be The City of New York. 
 “Predecessor Securities” of any particular Security
means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 306 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the lost, destroyed or stolen Security. 
 “Redemption
Date”, when used with respect to any Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture. 
 “Redemption Price”, when used with respect to any Security to be redeemed, means the price specified in such Security or pursuant to this Indenture at which it is to be redeemed pursuant to this Indenture or, if not so specified,
at 100% of the principal amount thereof. 
 “Regular Record Date” for the interest payable on any Security on any Interest Payment
Date means the date specified in such Security or pursuant to this Indenture as the Regular Record Date, irrespective of whether such date is a Business Day. 
 “Repayment Date”, when used with respect to any Security to be repaid at the option of the Holder, means the date fixed for such repayment in such Security or pursuant to this Indenture. 
 “Repayment Price”, when used with respect to any Security to be repaid at the option of the Holder, means the price specified in such Security
or pursuant to this Indenture at which it is to be repaid pursuant to such Security. 
 “Republic of Chile” means the Republic of
Chile. 
 “Request” means a written request signed in the name of the Company by any two of the following: its Chairman of the
Board, Vice Chairman of the Board, President or a Vice President, its Treasurer, Assistant Treasurer, its Controller, Assistant Controller, its Secretary or Assistant Secretary, its principal financial officer, its principal accounting officer or
any other officer, employee or agent of the Company duly authorized by a Board Resolution and delivered to the Trustee. 
 “Required
Currency” has the meaning specified in Section 117. 
  

 7 

 “Responsible Officer”, when used with respect to the Trustee, means any officer within the
Corporate Trust Office of the Trustee with direct responsibility for the administration of this Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge
of and familiarity with the particular subject. 
 “Sale and Leaseback Transaction” means any transaction or series of related
transactions pursuant to which the Company or any Subsidiary sells or transfers any Specified Property to any Person with the intention of taking back a lease of such property pursuant to which the rental payments are calculated to amortize the
purchase price of such property substantially over the useful life thereof and such property is in fact so leased. 
 “Securities
Act” means the U.S. Securities Act of 1933, as amended. 
 “Security” or “Securities” means any note or notes, bond
or bonds, debenture or debentures, or any other evidences of indebtedness, as the case may be, of any series authenticated and delivered from time to time under this Indenture. 
 “Security Register” shall have the meaning specified in Section 305. 
 “Security Registrar” means the Person who keeps the Security Register specified in Section 305. 
 “Securityholder” means a Person in whose name a Security is registered in the Security Register. 
 “Significant Subsidiary” means a Subsidiary of the Company which would be a “significant subsidiary” within the meaning of
Rule 1-02 under Regulation S-X promulgated by the Commission as in effect on the date of the Indenture, assuming the Company is the registrant referred to in such definition. 
 “Special Record Date” for the payment of any Defaulted Interest (as defined in Section 307) means a date fixed by the Trustee pursuant to
Section 307. 
 “Specified Property” means the Manufacturing Facilities and Timberlands. 
 “Stated Maturity”, when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable. 
 “Subsidiary” means any corporation or other business entity of which the Company owns or controls (either directly or through one or more other Subsidiaries) more than 50% of the issued share capital or other ownership interests,
in each case having ordinary voting power to elect or appoint directors, managers or trustees of such corporation or other business entity (whether or not capital stock or other ownership 

  

 8 

 
interests or any other class or classes shall or might have voting power upon the occurrence of any contingency). 
 “Taxes” has the meaning specified in Section 308. 
 “Taxing Authority” has the meaning specified in Section 308. 
 “Timberlands” means,
at any time, property owned by the Company or any Subsidiary, or as to which the Company or any Subsidiary has cutting rights, which contains standing timber which is, or upon completion of a growth cycle then in process is expected to become, of
commercial quantity and of merchantable quality; excluding from the term “Timberlands”, however, any property which at the time is held primarily for development (other than as timberlands) and/or sale, and not primarily for the
production of any wood products. 
 “Trust Indenture Act” or “TIA” means the U.S. Trust Indenture Act of 1939, as amended
by the Trust Indenture Reform Act of 1990, as in force at the date as of which this instrument was executed, except as provided in Section 905; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date,
“Trust Indenture Act” or “TIA” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended. 
 “Trustee” means the Person named as the Trustee in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and
thereafter “Trustee” shall mean and include each Person who is then a Trustee hereunder. If at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any series shall mean the Trustee
with respect to the Securities of that series. 
 “U.S. Government Obligations” means securities that are (x) direct
obligations of the United States of America for the payment of which its full faith and credit is pledged or (y) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case, are not callable or redeemable at the option of the issuer thereof or any other Person, and shall also
include a depository receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act), as custodian with respect to any obligation or a specific payment of principal of or interest on any such obligation held by such custodian for
the account of the holder of such depository receipt, provided that (except as required by law) such custodian shall not be authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the obligation or the specific payment of principal of or interest on the obligation evidenced by such depository receipt. 
 “Vice President”, when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or after the title “vice
president”, including an assistant vice president. 
  

 9 

 “Voting Stock”, as applied to the stock of any corporation, means stock of any class or classes
(however designated) having by the terms thereof ordinary voting power to elect a majority of the members of the board of directors (or other governing body) of such corporation other than stock having such power only by reason of the happening of a
contingency. 
 SECTION 102. Compliance Certificates and Opinions. Upon any application or request by the Company to the Trustee to
take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been
complied with and, if reasonably requested by the Trustee, an Opinion of Counsel stating that in the opinion of counsel providing such opinion all such conditions precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished. 

Every certificate or opinion with respect to the compliance by or on behalf of the Company with a condition or covenant provided for in this Indenture
(except for the written statement required by Section 1004) shall include 
 (a) a statement that each individual signing
such certificate or opinion has read such covenant or condition and the definitions herein relating thereto; 
 (b) a brief
statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
 (c) a statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him
to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
 (d) a statement
as to whether, in the opinion of each such individual, such condition or covenant has been complied with. 
 SECTION 103. Form of
Documents Delivered to Trustee. In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only
one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to the other matters, and any such Person may
certify or give an opinion as to such matters in one or several documents. 
 Any certificate or opinion of an officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with
respect to the matters upon which 

  

 10 

 
his certificate or opinion is based are erroneous. Any Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless counsel providing such Opinion of Counsel knows, or in the
exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous. 
 Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one
instrument. 
 SECTION 104. Acts of Securityholders. (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Securityholders or Securityholders of any series may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Securityholders in person
or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee, and, where it is hereby expressly required, to the
Company. If any Securities are denominated in coin or currency other than that of the United States, then for the purposes of determining whether the Holders of the requisite principal amount of Securities have taken any action as herein described,
the principal amount of such Securities shall be deemed to be that amount of United States dollars that could be obtained for such principal amount on the basis of the spot rate of exchange into United States dollars for the currency in which such
Securities are denominated (as evidenced to the Trustee by an Officers’ Certificate) as of the date the taking of such action by the Holders of such requisite principal amount is evidenced to the Trustee as provided in the immediately preceding
sentence. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Securityholders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 601) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section.

 (b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a
witness to such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds certifying that the individual signing such instrument or writing acknowledged to him the execution thereof.
Where such execution is by an officer of a corporation or a member of a partnership, on behalf of such corporation or partnership, such certificate or affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 
 (c) The ownership of Securities shall be proved by the Security Register. 
  

 11 

 (d) If the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other action, the Company may, at its option, by Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent,
waiver or other action, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after the record date, but only
the Holders of record at the close of business on the record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of Securities Outstanding have authorized or agreed or consented to such
request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the Securities Outstanding shall be computed as of the record date; provided that no such authorization, agreement or consent by the
Holders on the record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date. 
 (e) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Security shall bind the
Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, in respect of anything done or suffered to be done by the Trustee or the Company in reliance thereon whether or not notation of
such action is made upon such Security. 
 (f) Without limiting the foregoing, a Holder entitled hereunder to give or take any
such action with regard to any particular Security may do so with regard to all or any part of the principal amount of such Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or
any different part of such principal amount. 
 SECTION 105. Notices, etc., to Trustee and Company. Any request, demand,
authorization, direction, notice, consent, waiver or Act of Securityholders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with, 
 (a) the Trustee by any Securityholder or by the Company shall be sufficient for every purpose hereunder, upon receipt thereof, if made,
given, furnished or filed in writing to or with the Trustee at its Corporate Trust Office, or 
 (b) the Company by the
Trustee or by any Securityholder shall be sufficient for every purpose hereunder (except as otherwise expressly provided herein or, in the case of a request for repayment, as specified in the Security carrying the right to repayment) if in writing
and mailed by first class mail, transmitted by facsimile or forwarded by overnight courier to the Company addressed to it at the address of its principal office specified in the first paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company. 
  

 12 

 SECTION 106. Notices to Securityholders; Waiver. Where this Indenture or any Security provides for
notice to Securityholders of any event, such notice shall be sufficiently given (unless otherwise herein or in such Security expressly provided) if in writing and mailed, first-class postage prepaid, to each Securityholder affected by such event, at
its address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Securityholders is given by mail, neither the
inadvertent failure to mail such notice, nor any defect in any notice so mailed, to any particular Securityholder shall affect the sufficiency of such notice with respect to other Securityholders. Where this Indenture or any Security provides for
notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Securityholders shall be filed
with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 
 In
case, by reason of the suspension of regular mail service as a result of a strike, work stoppage or otherwise, it shall be impractical to mail notice of any event to any Securityholder when such notice is required to be given pursuant to any
provision of this Indenture, then any method of notification as shall be satisfactory to the Trustee and the Company shall be deemed to be a sufficient giving of such notice. 
 SECTION 107. Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with the duties imposed by any of Sections
310 to 317, inclusive, of the Trust Indenture Act through the operation of Section 318(c) thereof, such imposed duties shall control. 
 SECTION 108. Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
 SECTION 109. Successors and Assigns. All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether
so expressed or not. 
 SECTION 110. Separability Clause. In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 SECTION 111. Benefits of Indenture. Nothing in this Indenture or in any Securities, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any Authenticating
Agent, any Paying Agent, the Security Registrar and the Holders of Securities (or such of them as may be affected thereby), any benefit or any legal or equitable right, remedy or claim under this Indenture. 
 SECTION 112. Governing Law. This Indenture shall be construed in accordance with and governed by the laws of the State of New York. 
  

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 SECTION 113. Consent to Jurisdiction and Service of Process. (a) The Company irrevocably
consents to the nonexclusive jurisdiction of any court of the State of New York or any United States Federal court sitting, in each case, in the Borough of Manhattan, The City of New York, New York, United States of America, and any
appellate court from any thereof, and waives any immunity from the jurisdiction of such courts over any suit, action or proceeding that may be brought in connection with this Indenture or the Securities. The Company irrevocably waives, to the
fullest extent permitted by law, any objection to any suit, action or proceeding that may be brought in connection with this Indenture or the Securities in such courts whether on the grounds of venue, residence or domicile or on the ground that any
such suit, action or proceeding has been brought in an inconvenient forum. The Company agrees that final judgment in any such suit, action or proceeding brought in such court shall be conclusive and binding upon the Company and may be enforced in
any court to the jurisdiction of which the Company is subject by a suit upon such judgment; provided that service of process is effected upon the Company in the manner provided by this Indenture or as otherwise permitted by law.
Notwithstanding the foregoing, any suit, action or proceeding brought in connection with this Indenture or the Securities against the Company may be instituted in any competent court in the Republic of Chile. 
 (b) The Company agrees that service of all writs, process and summonses in any suit, action or proceeding brought in connection with this
Indenture or the Securities against the Company in any court of the State of New York or any United States Federal court sitting, in each case, in the Borough of Manhattan, The City of New York, may be made upon CT Corporation System at 111
Eighth Avenue, New York, New York 10011, whom the Company irrevocably appoints as its authorized agent for service of process. The Company represents and warrants that CT Corporation System has agreed to act as the Company’s
agent for service of process. The Company agrees that such appointment shall be irrevocable so long as any of the Securities remain outstanding or until the irrevocable appointment by the Company of a successor in The City of New York as its
authorized agent for such purpose and the acceptance of such appointment by such successor. The Company further agrees to take any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such
appointment in full force and effect as aforesaid. If CT Corporation System shall cease to act as the agent for service of process for the Company, the Company shall appoint without delay another such agent and provide prompt written notice to the
Trustee of such appointment. With respect to any such action in any court of the State of New York or any United States Federal court, in each case, in the Borough of Manhattan, The City of New York, service of process upon CT Corporation
System, as the authorized agent of the Company for service of process, and written notice of such service to the Company shall be deemed, in every respect, effective service of process upon the Company. 
 (c) Nothing in this Section shall affect the right of any party to serve legal process in any other manner permitted by applicable
law or affect the right of any 

  

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party to bring any action or proceeding against any other party or its property in the courts of other jurisdictions. 
 SECTION 114. Waiver of Immunity. To the extent that the Company or any of its properties, assets or revenues may have or may hereafter become
entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or proceeding, from the giving of any relief in any thereof, from setoff or counterclaim, from the jurisdiction of
any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution of judgment, or from execution of judgment, or from other legal process or proceeding for the giving of any relief or for the
enforcement of any judgment, in any jurisdiction in which the proceedings may at any time be commenced, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Indenture or the Securities,
the Company, to the fullest extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim any such immunity, and consents to such relief and enforcement. 
 SECTION 115. Waiver of Jury Trial. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO A
TRIAL BY JURY (BUT NO OTHER JUDICIAL REMEDIES) IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES, OR THE TRANSACTIONS CONTEMPLATED THEREBY. 
 SECTION 116. Legal Holidays. In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Security shall not be a
Business Day at any Place of Payment, then payment of interest or principal (and premium, if any) need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same
force and effect as if made on the Interest Payment Date, Redemption Date or Stated Maturity, and no interest shall accrue on such payment for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may
be. 
 SECTION 117. Judgment Currency. The Company agrees, to the fullest extent that it may effectively do so under applicable law,
that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum due in respect of the principal of, or premium or interest, if any, on the Securities of any series (the “Required Currency”) into a
currency in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which, in accordance with normal banking procedures, the Trustee could purchase the Required Currency with the Judgment
Currency and (b) its obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, or any recovery pursuant to any judgment (whether or not entered in accordance with
subsection (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the actual receipt, by the payee in the Place of Payment, of the full amount of the Required Currency expressed
to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of 

  

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recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so
expressed to be payable and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture. 
 SECTION 118. Counterparts. This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same
instrument. 
 ARTICLE TWO 
 Security Forms 
 SECTION 201. Forms Generally. The Securities shall have such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture or any indenture supplemental hereto and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be
required to comply with applicable laws or regulations or with the rules of any securities exchange, or as may, consistently herewith, be determined by the person or persons executing such Securities, as evidenced by their execution of the
Securities. Any portion of the text of any Security may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Security. 
 The definitive Securities shall be printed, lithographed or engraved or produced by any combination of these methods on steel engraved borders or may be produced in any other manner, all as determined by the officers
executing such Securities, as evidenced by their execution of such Securities, subject, with respect to the Securities of any series, to the rules of any securities exchange on which such Securities are listed. 
 SECTION 202. Forms of Securities. Provisions relating to the Securities, if any, of each series and the Exchange Securities, if any, are set forth
in Appendix A, which is hereby incorporated in and expressly made part of this Indenture. Each Security shall be substantially in the form of Exhibit A-1 or Exhibit A-2 hereto or in other forms approved from time to time by or pursuant to
a Board Resolution or established in one or more indentures supplemental hereto. Prior to the delivery of a Security to the Trustee for authentication in any form approved by or pursuant to a Board Resolution, the Company shall deliver to the
Trustee the Board Resolution by or pursuant to which such form of Security has been approved, which Board Resolution shall have attached thereto a true and correct copy of the form of Security which has been approved thereby or, if a Board
Resolution authorizes a specific Person or Persons to approve a form of Security, a certificate of such Person or Persons approving the form of Security attached thereto. Any form of Security approved by or pursuant to a Board Resolution must be in
compliance with applicable law. 
  

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 SECTION 203. Form of Trustee’s Certificate of Authentication. The form of Trustee’s
Certificate of Authentication for any Security issued pursuant to this Indenture shall be substantially as follows: 
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within-mentioned
Indenture. 
  

			
	THE BANK OF NEW YORK MELLON, as Trustee,
		
	By:	 	 
		 	Authorized Officer

 SECTION 204. Securities Issuable in the Form of a Global Security. (a) If
the Company shall establish pursuant to Sections 202 and 301 that the Securities of a particular series are to be issued in whole or in part in the form of one or more Global Securities, then the Company shall execute and the Trustee or its
agent shall, in accordance with Section 303 and the Company Request delivered to the Trustee or its agent thereunder, authenticate and deliver such Global Security or Securities which (i) shall represent, and shall be denominated in an
amount equal to the aggregate principal amount of, the Outstanding Securities of such series to be represented by such Global Security or Securities or such portion thereof as the Company shall specify in a Company Request, (ii) shall be
registered in the name of the Depositary for such Global Security or Securities or its nominee, (iii) shall be delivered by the Trustee or its agent to the Depositary or pursuant to the Depositary’s instructions or retained by the Trustee
as custodian for and on behalf of the Depositary and (iv) shall bear a Global Security Legend (as defined in Appendix A). 
 (b) Notwithstanding any other provisions of this Section 204 or of Section 305, but subject to the provisions of paragraph (c) below and Appendix A, unless the terms of a Global Security expressly permit such Global
Security to be exchanged in whole or in part for individual Securities, a Global Security may be transferred, in whole but not in part and in the manner provided in Section 305, only to a nominee of the Depositary for such Global Security, to
the Depositary for such Global Security, to a successor Depositary for such Global Security selected or approved by the Company or to a nominee of such successor Depositary. 
 (c) (i) If at any time the Depositary for a Global Security notifies the Company that it is unwilling or unable to continue as Depositary
for such Global Security or if at any time the Depositary for the Securities for such series ceases to be a clearing agency registered under the Exchange Act or other applicable statute or regulation, the Company shall appoint a successor Depositary
with respect to such Global Security. If a successor Depositary for such Global 

  

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Security is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility, the Company will
execute, and the Trustee or its agent, upon receipt of a Company Request for the authentication and delivery of individual Securities of such series in exchange for such Global Security, will authenticate and deliver, individual Securities of such
series of like tenor and terms in an aggregate principal amount equal to the principal amount of the Global Security in exchange for such Global Security. 
 (ii) The Company may at any time and in its sole discretion determine that the Securities of any series or portion thereof issued or issuable in the form of one or more Global Securities shall no longer be represented
by such Global Security or Securities. In such event the Company will execute, and the Trustee, upon receipt of a Company Request for the authentication and delivery of individual Securities of such series in exchange in whole or in part for such
Global Security, will authenticate and deliver at the Company’s sole cost and expense individual Securities of such series of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of such Global
Security or Securities representing such series or portion thereof in exchange for such Global Security or Securities. 
 (iii) If (a)(i) an Event of Default under the Securities of any series has occurred and is continuing and all principal of and premium, if any, and accrued interest on such Securities shall have become immediately due and payable as
provided by Section 502 or (ii) if the Trustee has received a notice from the Depositary stating that it is necessary or appropriate for the Trustee or the Securityholders to obtain possession of such Securities and (b) the Trustee
has been advised by counsel that in connection with such Event of Default or receipt of such notice it is necessary or appropriate for the Trustee or the Securityholders to obtain possession of the Securities, the Trustee may, in the reasonable
exercise of its discretion, in the case of clause (i) above, and will, in the case of clause (ii) above, determine that the Securities of such series represented by Global Securities shall no longer be represented by such Global
Securities. In such event, the Company agrees to execute and the Trustee will authenticate and deliver at the Company’s sole cost and expense, in exchange for such Global Securities, individual Securities of such series of like tenor and terms
in definitive form in an aggregate principal amount equal to the principal amount of such Global Securities representing such series or portion thereof. 
 (iv) If specified by the Company pursuant to Sections 202 and 301 with respect to Securities issued or issuable in the form of a Global Security or as set forth in Appendix A, the Depositary for such Global
Security may surrender such Global Security in exchange in whole or in part for individual Securities of such series of like tenor and terms in definitive form on such terms as are acceptable to the Company and such 

  

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Depositary. Thereupon the Company shall execute, and the Trustee or its agent shall authenticate and deliver, without service charge, (1) to each Person
specified by such Depositary, a new Security or Securities of the same series of like tenor and terms and of any authorized denomination as requested by such Person in aggregate principal amount equal to and in exchange for such Person’s
beneficial interest in the Global Security; and (2) to such Depositary, a new Global Security of the same series and of like tenor and terms and in an authorized denomination equal to the difference, if any, between the principal amount of the
surrendered Global Security and the aggregate principal amount of Securities delivered to the Holders thereof. 
 (v) In any
exchange provided for in any of the preceding four paragraphs or in Appendix A, the Company will execute and the Trustee or its agent will authenticate and deliver at the Company’s sole cost and expense individual Securities in definitive
registered form in authorized denominations. Upon the exchange of the entire principal amount of a Global Security for individual Securities, such Global Security shall be cancelled by the Trustee or its agent. Except as provided in the preceding
paragraph or in Appendix A, Securities issued in exchange for a Global Security pursuant to this Section (1) shall be registered in such names and in such authorized denominations as the Depositary for such Global Security, pursuant to
instructions from its direct or indirect participants or otherwise, shall instruct the Trustee or the Security Registrar and (2) shall bear any legend set forth on such Global Security (other than a legend relating to such Global
Security’s status as a Global Security) or which the Company believes is reasonably necessary to comply with applicable law. The Trustee or the Security Registrar shall deliver such Securities to the Persons in whose names such Securities are
so registered. 
 (d) In the event the Securities are issued as Global Securities with the Depositary (i) the Trustee may
deal with the Depositary as the authorized representative of the Holders, (ii) the rights of the Holders shall be exercised only through the Depositary and shall be limited to those established by law and agreement between the Holders and the
Depositary and/or direct participants of the Depositary, (iii) the Depositary will make book entry transfers among the direct participants of the Depositary and will receive and transmit distributions of principal and interest on the Securities
to such direct participants and (iv) the direct participants of the Depositary shall have no rights under this Indenture under or with respect to any of the Securities held on their behalf by the Depositary, and the Depositary may be treated by
the Trustee and its agents, employees, officers and directors as the absolute owner of the Securities for all purposes whatsoever. 
  

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 ARTICLE THREE 
 The Securities 
 SECTION 301. General Title; General Limitations; Issuable in Series; Terms of
Particular Series. The aggregate principal amount of Securities which may be authenticated and delivered and Outstanding under this Indenture is not limited. 
 The Securities may be issued in one or more series up to an aggregate principal amount of Securities as from time to time may be authorized by the Board of Directors. All Securities of each series under this Indenture
shall in all respects be equally and ratably entitled to the benefits hereof with respect to such series without preference, priority or distinction on account of the actual time of the authentication and delivery or Stated Maturity of the
Securities of such series. 
 Each series of Securities shall be created either by or pursuant to a Board Resolution or by or pursuant to an
indenture supplemental hereto. The Securities of each such series may bear such date or dates, be payable at such place or places, have such Stated Maturity or Maturities, be issuable at such premium over or discount from their face value, bear
interest at such rate or rates (which may be fixed or floating), from such date or dates, payable in such installments and on such dates and at such place or places to the Holders of Securities registered as such on the related Regular Record Dates,
or may bear no interest, and may be redeemable or repayable at such Redemption Price or Prices or Repayment Price or Prices, as the case may be, whether at the option of the Holder or otherwise, and upon such terms, all as shall be provided for in
or pursuant to the Board Resolution or in or pursuant to the supplemental indenture creating that series. The Company may from time to time, without the consent of Holders of a series of Securities, issue further securities having terms identical to
those of such series of Securities so that any further issue is consolidated and forms a single series with such series of Securities; provided, however, that any Securities issued with original issue discount (“OID”) for Federal income
tax purposes shall not be issued as part of the same series of any Securities that are issued with a different amount of OID or are not issued with OID. There may also be established in or pursuant to a Board Resolution or in or pursuant to a
supplemental indenture prior to the issuance of Securities of each such series, provision for: 
 (1) the exchange or
conversion of the Securities of that series, at the option of the Holders thereof, for or into new Securities of a different series or other securities or other property, including shares of capital stock of the Company or any subsidiary of the
Company or securities directly or indirectly convertible into or exchangeable for any such shares; 
 (2) a sinking or
purchase fund or other analogous obligation; 
 (3) if other than U.S. dollars, the currency or currencies or units based on
or related to currencies (including Euros) in which the Securities of such series 

  

 20 

 
shall be denominated and in which payments of principal of, and any premium and interest on, such Securities shall or may be payable; 
 (4) if the principal of (and premium, if any) or interest, if any, on the Securities of such series are to be payable, at the election of
the Company or a Holder thereof, in a currency or currencies or units based on or related to currencies (including Euros) other than that in which the Securities are stated to be payable, the period or periods within which, and the terms and
conditions upon which, such election may be made; 
 (5) if the amount of payments of principal of (and premium, if any) or
interest, if any, on the Securities of such series may be determined with reference to an index based on (i) a currency or currencies or units based on or related to currencies (including Euros) other than that in which the Securities are
stated to be payable, (ii) changes in the price of one or more other securities or groups or indexes of securities or (iii) changes in the prices of one or more commodities or groups or indexes of commodities, or any combination of the
foregoing, the manner in which such amounts shall be determined; 
 (6) if the aggregate principal amount of the Securities of
that series is to be limited, such limitations; 
 (7) the exchange of Securities of that series, at the option of the Holders
thereof, for other Securities of the same series of the same aggregate principal amount of a different authorized kind or different authorized denomination or denominations, or both; 
 (8) the appointment by the Trustee of an Authenticating Agent in one or more places other than the location of the office of the Trustee
with power to act on behalf of the Trustee and subject to its direction in the authentication and delivery of the Securities of any one or more series in connection with such transactions as shall be specified in the provisions of this Indenture or
in or pursuant to the Board Resolution or the supplemental indenture creating such series; 
 (9) the portion of the principal
amount of Securities of the series, if other than the total principal amount thereof, which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 502 or provable in bankruptcy pursuant to
Section 504; 
 (10) any Event of Default with respect to the Securities of such series, if not set forth herein and any
additions, deletions or other changes to the Events of Default set forth herein that shall be applicable to the Securities of such series (including a provision making any Event of Default set forth herein inapplicable to the Securities of that
series); 
 (11) any covenant solely for the benefit of the Securities of such series and any additions, deletions or other
changes to the provisions of Article Ten or any 

  

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definitions relating to such Article that shall be applicable to the Securities of such series (including a provision making any Section of such Article
inapplicable to the Securities of such series); 
 (12) the applicability of Article Twelve of this Indenture to the
Securities of such series; 
 (13) if the Securities of the series shall be issued in whole or in part in the form of a Global
Security or Global Securities, the terms and conditions, if any, upon which such Global Security or Global Securities may be exchanged in whole or in part for other individual Securities; and the Depositary for such Global Security or Global
Securities (if other than the Depositary specified in Section 101 hereof); 
 (14) the subordination of the Securities of
such series to any other indebtedness of the Company, including the Securities of any other series; 
 (15) whether such
Securities shall be issued as part of a new or existing series of Securities and the title of such Securities (which shall distinguish the Securities of the series from Securities of another series); 
 (16) if applicable, that such Securities shall not be issued in the form of Securities set forth in Exhibit A-1 that are subject to
Appendix A, but shall be issued in the form of Exchange Securities as set forth in Exhibit A-2; and 
 (17) any
other terms of the series, which shall not be inconsistent with the provisions of this Indenture, 
 all upon such terms as may be determined in or pursuant
to a Board Resolution or in or pursuant to a supplemental indenture with respect to such series. All Securities of the same series shall be substantially identical in tenor and effect, except as to denomination. 
 The form of the Securities of each series shall be established pursuant to the provisions of this Indenture in or pursuant to the Board Resolution or in
or pursuant to the supplemental indenture creating such series. The Securities of each series shall be distinguished from the Securities of each other series in such manner, reasonably satisfactory to the Trustee, as the Board of Directors may
determine. 
 Unless otherwise provided with respect to Securities of a particular series, the Securities of any series may only be issuable
in registered form, without coupons. 
 Any terms or provisions in respect of the Securities of any series issued under this Indenture may be
determined pursuant to this Section by providing in a Board Resolution or supplemental indenture for the method by which such terms or provisions shall be determined. 
 SECTION 302. Denominations. The Securities of each series shall be issuable in such denominations and currency as shall be provided in the
provisions of this 

  

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Indenture or in or pursuant to the Board Resolution or the supplemental indenture creating such series. In the absence of any such provisions with respect to
the Securities of any series, the Securities of that series shall be issuable only in U.S. dollars in fully registered form without coupons with a minimum denomination of U.S.$2,000 and integral multiples of U.S.$1,000 in excess thereof. 

SECTION 303. Execution, Authentication and Delivery and Dating. The Securities shall be executed on behalf of the Company by any two of the
following: its Chairman of the Board, its Vice Chairman of the Board, its President, one of its Vice Presidents, its Treasurer, its Secretary or one of its Assistant Secretaries, its principal financial officer, its principal accounting officer or
any other officer, employee or agent of the Company duly authorized by a Board Resolution to execute the Securities. The signature of any of these officers on the Securities may be manual or facsimile. 
 Securities bearing the manual or facsimile signatures of individuals who were at any time the proper officers, employees or agents of the Company shall
bind the Company notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such Securities. 
 At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities executed by the Company to the
Trustee for authentication; and the Trustee shall, upon Company Order, authenticate and deliver such Securities as provided in this Indenture and not otherwise. 
 Prior to any such authentication and delivery, the Trustee shall be entitled to receive, in addition to any Officers’ Certificate and Opinion of Counsel required to be furnished to the Trustee pursuant to
Section 102, and the Board Resolution and any certificate relating to the issuance of the series of Securities required to be furnished pursuant to Section 202, an Opinion of Counsel stating that: 
 (1) all laws and requirements with respect to the execution and delivery by the Company of such Securities have been complied with, the
Company has the corporate power to issue such Securities, and such Securities have been duly authorized and delivered by the Company, and, assuming due authentication and delivery by the Trustee, constitute legal, valid and binding obligations of
the Company enforceable in accordance with their terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium or other laws and legal principles affecting creditors’ rights generally from time to time in effect and to general
equitable principles, whether applied in an action at law or in equity) and entitled to the benefits of this Indenture, equally and ratably with all other Securities, if any, of such series Outstanding; 
 (2) such other matters as the Trustee may reasonably request; 
 and, if the authentication and delivery relates to a new series of Securities created by an indenture supplemental hereto, also stating that all laws and requirements with respect to 

  

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the form and execution by the Company of the supplemental indenture with respect to that series of Securities have been complied with, the Company has
corporate power to execute and deliver any such supplemental indenture and has taken all necessary corporate action for those purposes and any such supplemental indenture has been executed and delivered and constitutes the legal, valid and binding
obligation of the Company enforceable in accordance with its terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium or other laws and legal principles affecting creditors’ rights generally from time to time in effect
and to general equitable principles, whether applied in an action at law or in equity). 
 The Trustee shall not be required to authenticate
such Securities if the issue thereof will adversely affect the Trustee’s own rights, duties, indemnities, or immunities under the Securities and this Indenture. 
 Unless otherwise provided in the form of Security for any series, all Securities shall be dated the date of their authentication. 
 No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in the form provided for
herein executed by the Trustee by manual signature of an authorized officer, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder.

 The Company in issuing the Securities may use “CUSIP”, “private placement”, “ISIN” or “Common
Code” numbers (if then generally in use), and, if so, the Trustee may indicate such numbers of the Securities in notices of redemption and related materials as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of redemption and related materials. 
 SECTION 304. Temporary Securities. Pending the preparation of definitive Securities of any series, the Company may execute, and, upon receipt of the documents required by Section 303, together with a
Company Order, the Trustee shall authenticate and deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities
in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities. 
 If temporary Securities of any series are issued, the Company will cause definitive Securities of such series to be prepared without unreasonable delay.
After the preparation of definitive Securities, the temporary Securities of such series shall be exchangeable for definitive Securities of such series upon surrender of the temporary Securities of such series at the office or agency of the Company
in a Place of Payment, without charge to the Holder; and upon surrender for cancellation of any one or more 

  

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temporary Securities the Company shall execute and the Trustee shall authenticate and deliver at the Company’s sole expense in exchange therefor a like
principal amount of definitive Securities of such series of authorized denominations and of like tenor and terms. Until so exchanged the temporary Securities of such series shall in all respects be entitled to the same benefits under this Indenture
as definitive Securities of such series. 
 Upon any exchange of a portion of a temporary Global Security for a definitive Global Security or
for the individual Securities represented thereby pursuant to this Section 304 or Section 305, the temporary Global Security shall be endorsed by the Trustee to reflect the reduction of the principal amount evidenced thereby, whereupon the
principal amount of such temporary Global Security shall be reduced for all purposes by the amount so exchanged and endorsed. 
 SECTION 305.
Registration, Transfer and Exchange. The Company shall keep or cause to be kept a register (herein sometimes referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company
shall provide or cause to provide for the registration of Securities, or of Securities of a particular series, and for transfers of Securities or of Securities of such series. Any such Security Register shall be in written form or in any other form
permitted under applicable laws and capable of being converted into written form within a reasonable time. At all reasonable times the information contained in such register or registers shall be available for inspection by the Trustee at the office
or agency to be maintained by the Company as provided in Section 1002. 
 Subject to Section 204, upon surrender for registration
of transfer of any Security of any series at the office or agency to be maintained by the Company as provided in Section 1002 in a Place of Payment, the Company shall execute and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities of the same series of any authorized denominations, of a like aggregate principal amount and Stated Maturity and of like tenor and terms. 
 Subject to Section 204, at the option of the Holder, Securities of any series may be exchanged for other Securities of the same series of any
authorized denominations, of a like aggregate principal amount and Stated Maturity and of like tenor and terms, upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered for exchange, the
Company shall execute and the Trustee shall authenticate and deliver, the Securities which the Securityholder making the exchange is entitled to receive. 
 All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of the Company evidencing the same debt, and entitled to the same benefits under this Indenture, as the
Securities surrendered upon such registration of transfer or exchange. 
 Every Security presented or surrendered for registration of
transfer or exchange shall (if so required by the Company or the Trustee) be duly endorsed, or be 

  

 25 

 
accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed, by the Holder thereof or its
attorney duly authorized in writing. 
 Unless otherwise provided in the Security to be transferred or exchanged, no service charge shall be
made on any Securityholder for any transfer or exchange of Securities, but the Company may (unless otherwise provided in such Security) require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Sections 304 or 906 not involving any registration of transfer. 
 The Company shall not be required (i) to issue, register the transfer of or exchange any Security of any series during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of redemption of Securities of such series selected for redemption under Section 1103 and ending at the close of business on the date of such mailing, (ii) to
register the transfer of or exchange any Security so selected for redemption in whole or in part, except for the portion of such Security not so selected for redemption or (iii) to transfer or exchange any Security between any Regular Record
Date and the related Interest Payment Date. 
 None of the Company, the Trustee, any agent of the Trustee, any Paying Agent or the Security
Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Security or for maintaining, supervising or reviewing any records relating to
such beneficial ownership interests. 
 The Company initially appoints the Trustee to act as Security Registrar for the Securities on its
behalf. The Company may at any time and from time to time authorize any Person to act as Security Registrar in place of the Trustee with respect to any series of Securities issued under this Indenture. 
 SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities. If (i) any mutilated Security is surrendered to the Trustee, or the Company
and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and (ii) there is delivered to the Company and the Trustee such security or indemnity as may be required by them to save each of them
harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a protected purchaser, the Company shall execute and upon its request the Trustee shall authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Security, a new Security of like tenor, series, Stated Maturity and principal amount, and bearing a number not contemporaneously Outstanding. 
 In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security. 
  

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 Upon the issuance of any new Security under this Section, the Company may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
 Every new Security issued pursuant to this Section in lieu or in exchange of any mutilated, destroyed, lost or stolen Security shall constitute an
original additional contractual obligation of the Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of the same series duly issued hereunder. 
 The provisions of this Section are
exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 
 SECTION 307. Payment of Interest; Interest Rights Preserved. Unless otherwise provided with respect to such Security pursuant to Section 301,
interest on any Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest. 
 Any interest on any Security of any series which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the registered Holder on the relevant Regular Record Date by virtue of its having been such Holder; and,
except as hereinafter provided, such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (a) or clause (b) below: 
 (a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names any such Securities (or their respective
Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of
such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment and not less
than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of 

  

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the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to the Holder of each such
Security at its address as it appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered on such Special Record Date and shall no longer be payable pursuant to the following clause (b).

 (b) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the
requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee. 
 If any installment of interest, the Stated Maturity of which is on or prior
to the Redemption Date for any Security called for redemption pursuant to Article Eleven, is not paid or duly provided for on or prior to the Redemption Date in accordance with the foregoing provisions of this Section, such interest shall be
payable as part of the Redemption Price of such Securities. 
 Subject to the foregoing provisions of this Section, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 
 SECTION 308. Taxation. (a) All payments of or in respect of principal, interest and premium, if any, on each Security and all payments to the
Trustee under Section 607 shall be made free and clear of, and without withholding or deduction for or on account of, any present or future taxes, penalties, fines, duties, assessments or other governmental charges of whatever nature (or
interest on any of the foregoing) imposed, levied, collected, withheld or assessed (“Taxes”) by, within or on behalf of the Republic of Chile or any political subdivision or governmental authority thereof or therein having power to
tax (a “Taxing Authority”), unless such withholding or deduction is required by law. If the Company is required to make any withholding or deduction described in the preceding sentence with respect to any payment made in respect of
the Securities, the Company will pay such additional amounts (“Additional Amounts”) as may be necessary to ensure that the net amounts received by the Holder of such Security (including Additional Amounts) or the Trustee, as the
case may be, after such withholding or deduction shall equal the respective amounts of principal, interest and premium, if any, that would have been receivable in respect of such Security in the case of the Holder, or pursuant to Section 607,
in the case of the Trustee, in the absence of such withholding or deduction, except that no such Additional Amounts shall be payable in respect of any Security (i) in the case of payments for which presentation of a Security is required, if
such Security is presented for payment more than 30 days after the later of (x) the date on 

  

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which such payment first became due and (y) if the full amount payable has not been received in the Place of Payment by the Trustee on or prior to such
due date, the date on which, the full amount having been so received, notice to that effect shall have been given to the Securityholder by the Trustee, except to the extent that the Securityholder would have been entitled to such Additional Amounts
on presenting such Security for payment on the last day of the applicable 30-day period; (ii) for any estate, inheritance, gift, sales, transfer, excise, personal property or similar tax, duty, fine, assessment or other governmental charge;
(iii) if held by or on behalf of a Securityholder or beneficial owner who is liable for taxes, duties, fines, penalties, assessments or other governmental charges in respect of such Security by reason of having some present or former, direct or
indirect, connection with a Taxing Authority (including, without limitation, being a citizen of, being incorporated or engaged in a trade or business in, or having a residence or principal place of business or other presence in a Taxing Authority),
other than the mere holding of such Security or the receipt of principal, interest or premium, if any, in respect thereof; (iv) to the extent the Chilean tax giving rise to such Additional Amounts would not have been imposed (or would have been
reduced) but for the failure of a Securityholder or a beneficial owner of such Security to provide any applicable certification, documentation, information or other reporting requirement concerning the nationality, residence, identity or connection
with Chile or to make other similar claim or exemption to the relevant Taxing Authority, if, after having been requested in writing by the Company to provide such applicable certification, documentation or information or to make such a claim, such
Securityholder or beneficial owner fails to do so within 30 days; (v) for any taxes, duties, fines, penalties, assessments or other governmental charges which are payable other than by deduction or withholding from payments of principal of or
interest on such Security or by direct payment by the Company in respect of claims made against the Company, as the case may be; (vi) any withholding or deduction imposed on a payment to an individual and that is required to be made pursuant to
any law implementing or complying with, or introduced in order to conform to, any European Union Directive on the taxation of savings; (vii) any tax, assessment or other governmental charge which would have been avoided by a Securityholder
presenting the relevant Security (if presentation is required) or requesting that such payment be made to another Paying Agent in a member state of the European Union; or (viii) any combination of (i), (ii), (iii), (iv), (v), (vi) or
(vii). In addition, no Additional Amounts shall be paid with respect to any payment to any Securityholder who is a fiduciary or a partnership or other than the sole beneficial owner of such Securities to the extent that the beneficiary or settlor
with respect to such fiduciary, the member of such partnership or the beneficial owner of such Securities would not have been entitled to Additional Amounts had such beneficiary, settlor, member or beneficial owner held such Securities directly. All
references in this Indenture to principal, interest, premium and other amounts payable hereunder shall be deemed to include references to any Additional Amounts which may be payable under this Section with respect to such principal, interest,
premium or other amounts. The Company, as applicable, will also (i) make such withholding or deduction and (ii) remit the full amount deducted or withheld to the relevant authority in accordance with applicable law. The Company will, upon
written request, furnish to the Securityholders, within 60 days after the date the payment of any Taxes so deducted or withheld is due pursuant to applicable law, either certified copies of tax receipts 

  

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evidencing such payment by the Company or, if such receipts are not obtainable, other evidence of such payments by the Company reasonably satisfactory to the
Securityholders. 
 (b) The Company shall promptly pay when due any present or future stamp, court or documentary taxes or any
other excise or property taxes, charges or similar levies that arise in any jurisdiction from the execution, delivery, or registration of each Security or any other document or instrument relating to the issuance thereof, excluding any such taxes,
charges or similar levies imposed by any jurisdiction outside the Republic of Chile and except as provided in Section 305. The Company shall indemnify and make whole the Holders of Securities for any present or future stamp, court or
documentary taxes or any other excise or property taxes, charges or similar levies payable by the Company as provided in this clause (b) paid by such Holders. 
 (c) At least 10 Business Days prior to the first Interest Payment Date for the Securities of such series, and, if there has been any
change with respect to the matters set forth in the below-mentioned certificate, at least 10 Business Days prior to each Interest Payment Date for the Securities of such series, the Company shall furnish to the Trustee an Officers’ Certificate
instructing the Trustee as to the circumstances in which payments of principal of, premium, if any, or interest on any Securities of such series (including Additional Amounts) due on such date shall be subject to deduction or withholding for or on
account of any taxes and the rate of any such deduction or withholding. The Company covenants to indemnify the Trustee and any other Paying Agents for, and to hold each harmless against, any loss, liability or expense reasonably incurred without
negligence, bad faith or willful misconduct on their part, arising out of or in connection with actions taken or not taken by any of them in reliance on any certificate furnished to them pursuant to this paragraph or the failure to furnish any such
certificate. The obligations of the Company under the preceding sentence shall survive payment of all the Securities of such series, the satisfaction and discharge of this Indenture and the resignation or removal of the Trustee, the Security
Registrar or any Paying Agent. Any certificate required by this Section to be provided to the Trustee and any other Paying Agent shall be deemed to be duly provided if telecopied to the Trustee and such other Paying Agent. Upon request, the Company
shall provide the Trustee with documentation reasonably satisfactory to the Trustee evidencing the payment of taxes in respect of which the Company has paid any Additional Amounts. Copies of such documentation shall be made available by the Trustee
to the Holders or the other Paying Agents, as applicable, upon request therefor. 
 SECTION 309. Persons Deemed Owners. The Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in whose name any Security is registered in the Security Register as the owner of such Security for the purpose of receiving payment of principal of (and premium, if any),
and (subject to Section 307) interest on, such Security and for all other purposes whatsoever, whether or 

  

 30 

 
not such Security be overdue, and none of the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.

 SECTION 310. Cancellation. All Securities surrendered for payment, redemption, transfer, conversion or exchange or credit against a
sinking fund, if any, shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and, if not already cancelled, shall be promptly cancelled by the Trustee. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly cancelled by the Trustee. No Security shall be authenticated
in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this Indenture. The Trustee shall dispose of all cancelled Securities in accordance with its customary procedures and, upon receipt
of a Company order, shall deliver a certificate of such disposition to the Company; provided, however, that the Trustee shall not be required to destroy such cancelled Securities. 
 SECTION 311. Computation of Interest. Unless otherwise provided as contemplated in Section 301, interest on the Securities shall be
calculated on the basis of a 360-day year of twelve 30-day months. 
 SECTION 312. Medium-Term Securities. Notwithstanding any
contrary provision herein, if all Securities of a series are not to be originally issued at one time, it shall not be necessary for the Company to deliver to the Trustee an Officers’ Certificate, Board Resolution, supplemental indenture,
Opinion of Counsel or Company Request otherwise required pursuant to Sections 202, 301 and 303 at or prior to the time of authentication of each Security of such series if such documents are delivered to the Trustee or its agent at or prior to
the authentication upon original issuance of the first Security of such series to be issued; provided that any subsequent request by the Company to the Trustee to authenticate Securities of such series upon original issuance shall constitute
a representation and warranty by the Company that as of the date of such request, the statements made in the Officers’ Certificate delivered pursuant to Section 102 shall be true and correct as if made on such date. 
 An Officers’ Certificate, supplemental indenture or Board Resolution delivered by the Company to the Trustee in the circumstances set forth in the
preceding paragraph may provide that Securities which are the subject thereof will be authenticated and delivered by the Trustee or its agent on original issue from time to time upon the telephonic instruction or written order of Persons designated
in such Officers’ Certificate, Board Resolution or supplemental indenture (any such telephonic instructions to be confirmed promptly in writing by such Persons) and that such Persons are authorized to determine, consistent with such
Officers’ Certificate, supplemental indenture or Board Resolution, such terms and conditions of said Securities as are specified in such Officers’ Certificate, supplemental indenture or Board Resolution. 
  

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 ARTICLE FOUR 
 Satisfaction and Discharge 
 SECTION 401. Satisfaction and Discharge of Indenture. This
Indenture shall cease to be of further effect with respect to any series of Securities (except as to any surviving rights of conversion, transfer or exchange of Securities of such series expressly provided for herein or in the form of Security for
such series), and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture as to such series, when 
 (a) either 
 (1) all Securities of that series theretofore authenticated and delivered (other than (i) Securities of such series which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 306, and
(ii) Securities of such series for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 1003)
have been delivered to the Trustee cancelled or for cancellation; or 
 (2) all such Securities of that series not theretofore
delivered to the Trustee cancelled or for cancellation 
 (i) have become due and payable, or 
 (ii) will become due and payable at their Stated Maturity within one year, or 
 (iii) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company, 
 and the Company, in the case of (i), (ii) or
(iii) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose an amount sufficient to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee
cancelled or for cancellation, for principal (and premium, if any) and interest to the date of such deposit (in the case of Securities which have become due and payable), or to the Stated Maturity or Redemption Date, as the case may be; 

(b) the Company has paid or caused to be paid all other sums payable by the Company with respect to the Securities of such series
hereunder; 
 (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each
stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture with respect to the Securities of such series have been complied with; and 
  

 32 

 (d) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that payment of amounts deposited in trust with the Trustee as provided in clause (a) hereof will not be subject to future taxes, duties, fines, penalties, assessments or other governmental charges imposed, levied, collected, withheld or
assessed by, within or on behalf of the Republic of Chile or any political subdivision or governmental authority thereof or therein having power to tax, except to the extent that Additional Amounts in respect thereof shall have been deposited in
trust with the Trustee as provided in clause (a) hereof. 
 Notwithstanding the satisfaction and discharge of this Indenture with respect to any series
of Securities, the obligations of the Company to the Trustee with respect to that series under Section 607 shall survive and the obligations of the Trustee under Sections 402 and 1003 shall survive. 
 SECTION 402. Application of Trust Money. All money and obligations deposited with the Trustee pursuant to Section 401 or Article Twelve and
all money received by the Trustee in respect of such obligations shall be held in trust and applied by it, in accordance with the provisions of the series of Securities in respect of which it was deposited and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money and
obligations have been deposited with or received by the Trustee; but such money and obligations need not be segregated from other funds except to the extent required by law. 
 ARTICLE FIVE 
 Remedies 
 SECTION 501. Events of Default. “Event of Default”, wherever used herein, means with respect to any series of Securities any one of the
following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body), unless such event is either inapplicable to a particular series (to the extent expressly provided in the form of Security for such series) or it is specifically deleted or modified in the supplemental indenture
creating such series of Securities or in the form of Security for such series: 
 (1) default in the payment of any principal
of the Securities of that series when due and payable, whether at Maturity, upon redemption or otherwise; or 
 (2) default in
the payment of any interest or any Additional Amounts when due and payable on any Security of that series and the continuance of such default for a period of more than 30 days; or 
  

 33 

 (3) default in the performance or observance of any other term, covenant, warranty or
obligation of the Company or any of its Subsidiaries in the Securities of such series or this Indenture, not otherwise expressly defined as an Event of Default in (1) or (2) above, and the continuance of such default for more than
60 days after written notice specifying such default or breach and requiring it to be remedied has been given (by internationally recognized overnight courier) to the Company by the Trustee or to the Company and the Trustee by Holders of at
least 25% in aggregate principal amount of the Securities of that series then Outstanding; or 
 (4) the Company or any of its
Subsidiaries shall default in the payment of principal of, or interest on, any Indebtedness of the Company or any of its Subsidiaries, whether such Indebtedness now exists or shall hereafter be created, having an aggregate principal amount exceeding
U.S.$40,000,000 (or its equivalent in any other currency or currencies), other than the Securities of that series, when any such Indebtedness shall be due (whether at maturity, upon redemption or acceleration or otherwise), if such default shall
continue for more than the period of grace, if any, originally applicable thereto, and such Indebtedness shall have been declared due and payable; or 
 (5) the entry of an order for relief against the Company or any Significant Subsidiary under any Bankruptcy Law by a court having jurisdiction in the premises or a decree or order by a court having jurisdiction in the
premises adjudging the Company or any Significant Subsidiary bankrupt or insolvent under any other applicable law, or the entry of a decree or order approving as properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company or any Significant Subsidiary under any Bankruptcy Law, or appointing a receiver, liquidator, assignee, trustee, sequestrator (or other similar official under any Bankruptcy Law, including a
“síndico”) of the Company or any Significant Subsidiary or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and in each case the continuance of any such decree or order
unstayed and in effect for a period of 60 consecutive days; or 
 (6) the consent by the Company or any Significant Subsidiary
to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any Bankruptcy Law, or the consent by it to the filing of any such petition or to
the appointment of a custodian, receiver, liquidator, assignee, trustee, sequestrator (or other similar official under any Bankruptcy Law, including a “síndico”) of the Company or any Significant Subsidiary or of any
substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company
or any Significant Subsidiary in furtherance of any such action; or 
  

 34 

 (7) any other Event of Default provided in the supplemental indenture under which such
series of Securities is issued or in the form of Security for such series. 
 The term “Bankruptcy Law” as used in this
Section means the Chilean “Ley de Quiebras” (Law No. 18,175, as amended), the Argentine “Ley de Concursos y Quiebras” (Law No. 24,522, as amended) or any other applicable law which amends, supplements or supersedes
either of the foregoing and any applicable bankruptcy, insolvency, reorganization or other similar law of any applicable jurisdiction. 
 SECTION 502. Acceleration of Maturity; Rescission and Annulment. If an Event of Default described in paragraph (1), (2), (3), (4) or (7) of Section 501 occurs and is continuing with respect to the Securities of
any series, then and in each and every such case, unless the principal of all the Securities of such series shall have already become due and payable, either the Trustee or the Holders of not less than 25% in aggregate principal amount of the
Securities of such series then Outstanding hereunder (each such series acting as a separate class), by notice in writing to the Company (and to the Trustee if given by Holders), may declare the principal amount (or, if the Securities of such series
are Original Issue Discount Securities, such portion of the principal amount of such Securities as may be specified in the terms thereof) of all the Securities of such series then Outstanding and all accrued interest thereon to be due and payable
immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Indenture or in the Securities of such series contained to the contrary notwithstanding. If an Event of Default described in
paragraph (5) or (6) of Section 501 occurs and is continuing, then and in each and every such case, the principal amount (or, if any Securities are Original Issue Discount Securities, such portion of the principal amount as may be
specified in the terms thereof) of all the Securities then Outstanding and all accrued interest thereon shall, without any notice to the Company or any other act on the part of the Trustee or any Holder of the Securities, become and be immediately
due and payable, anything in this Indenture or in the Securities contained to the contrary notwithstanding. 
 At any time after such a
declaration of acceleration has been made with respect to the Securities of any series and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority
in aggregate principal amount of the Outstanding Securities of such series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: 
 (1) the Company has paid or deposited with the Trustee a sum sufficient to pay 
 (A) all overdue installments of interest on the Securities of such series, 
 (B) the principal of (and premium, if any, on) any Securities of such series which have become due otherwise than by such declaration of

  

 35 

 
acceleration, and interest thereon at the rate or rates prescribed therefor by the terms of the Securities of such series, to the extent that payment of such
interest is lawful, 
 (C) interest upon overdue installments of interest at the rate or rates prescribed therefor by the
terms of the Securities of such series, to the extent that payment of such interest is lawful, and 
 (D) all sums paid or
advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and all other amounts due the Trustee under Section 607; 
 and 
 (2) all Events of Default with respect
to such series of Securities, other than the nonpayment of the principal of the Securities of such series which have become due solely by such acceleration, have been cured or waived as provided in Section 513. 
 No such rescission shall affect any subsequent default or impair any right consequent thereon. 
 SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee. The Company covenants that if 
 (a) default is made in the payment of any installment of interest on any Security of any series when such interest becomes due and
payable, or 
 (b) default is made in the payment of the principal of (or premium, if any, on) any Security at the Maturity
thereof, or 
 (c) default is made in the payment of any sinking or purchase fund or analogous obligation when the same
becomes due by the terms of the Securities of any series, 
 and any such default continues for any period of grace provided with respect to the Securities
of such series, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holder of any such Security (or the Holders of any such series in the case of clause (c) above), the whole amount then due and payable on any such
Security (or on the Securities of any such series in the case of clause (c) above) for principal (and premium, if any) and interest, with interest, to the extent that payment of such interest shall be legally enforceable, upon the overdue
principal (and premium, if any) and upon overdue installments of interest, at such rate or rates as may be prescribed therefor by the terms of any such Security (or of Securities of any such series in the case of clause (c) above); and, in
addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, 

  

 36 

 
disbursements and advances of the Trustee, its agents and counsel and all other amounts due the Trustee under Section 607. 
 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree, and may enforce the same against the Company or any other obligor upon the Securities of such series and collect the
money adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated. 
 If an Event of Default with respect to any series of Securities occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such
series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy. 
 SECTION 504. Trustee May File Proofs of Claim. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such
other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any
demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceedings or otherwise, 
 (i) to file and prove a claim for the whole amount of principal (and premium, if any) and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary and
advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and all other amounts due the Trustee under Section 607) and
of the Securityholders allowed in such judicial proceeding, and 
 (ii) to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same; 
 and any receiver, assignee, trustee, liquidator, sequestrator (or other similar
official, including a “síndico”) in any such judicial proceeding is hereby authorized by each Securityholder to make such payment to the Trustee and in the event that the Trustee shall consent to the making of such payments
directly to the Securityholders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements 

  

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and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 607. 
 Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan
or reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Securityholder in any such proceeding. 
 SECTION 505. Trustee May Enforce Claims Without Possession of Securities. All rights of action and claims under this Indenture or the Securities
of any series may be prosecuted and enforced by the Trustee without the possession of any of the Securities of such series or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agent and counsel and all other
amounts due to the Trustee under Section 607 herein, be for the ratable benefit of the Holders of the Securities of the series in respect of which such judgment has been recovered. 
 SECTION 506. Application of Money Collected. Any money collected by the Trustee with respect to a series of Securities pursuant to this Article
shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any) or interest, upon presentation of the Securities of such series and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 
 FIRST: To the payment of all amounts due
the Trustee under Section 607. 
 SECOND: To the payment of the amounts then due and unpaid upon the Securities of that series for
principal (and premium, if any) and interest, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for
principal (and premium, if any) and interest, respectively. 
 SECTION 507. Limitation on Suits. No Holder of any Security of any
series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture or the Securities or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless 
 (a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to Securities of such
series; 
 (b) the Holders of not less than 25% in aggregate principal amount of the Outstanding Securities of such series
shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
  

 38 

 (c) such Holder or Holders have offered to the Trustee reasonable indemnity against the
costs, expenses and liabilities to be incurred in compliance with such request; 
 (d) the Trustee for 60 days after its
receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and 
 (e) no direction
inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in aggregate principal amount of the Outstanding Securities of such series; 
 it being understood and intended that no one or more Holders of Securities of such series shall have any right in any manner whatever by virtue of, or by availing of,
any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Securities of such series, or to obtain or to seek to obtain priority or preference over any other such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and proportionate benefit of all the Holders of all Securities of such series. 
 SECTION 508. Unconditional Right of Securityholders to Receive Principal, Premium and Interest. Notwithstanding any other provisions in this Indenture and any provision of the Securities, the Holder of any Security shall have the
right, which is absolute and unconditional, to receive payment of the principal of (and premium, if any) and (subject to Section 307) interest on such Security (including Additional Amounts) on the respective Stated Maturities expressed in such
Security (or, in the case of redemption or repayment, on the Redemption Date or Repayment Date, as the case may be) and to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such
Holder. 
 SECTION 509. Restoration of Rights and Remedies. If the Trustee or any Securityholder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, then and in every such case the Company, the Trustee and the Securityholders shall, subject to any determination in such
proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Securityholders shall continue as though no such proceeding had been instituted. 
 SECTION 510. Rights and Remedies Cumulative. Except as otherwise provided in the last paragraph of Section 306, no right or remedy herein
conferred upon or reserved to the Trustee or to the Securityholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right
or remedy. 
  

 39 

 SECTION 511. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of
any Security to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by
law to the Trustee or to the Securityholders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Securityholders, as the case may be. No waiver of any Event of Default, whether by the Trustee or by
the Securityholders, shall extend to or shall affect any subsequent Event of Default or shall impair any remedy or right consequent thereon. 
 SECTION 512. Control by Securityholders. The Holders of a majority in aggregate principal amount of the Outstanding Securities of any series shall have the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee or exercising any trust or power conferred on the Trustee with respect to the Securities of such series; provided that 
 (a) the Trustee shall have the right to decline to follow any such direction if the Trustee, being advised by counsel, determines that the
action so directed may not lawfully be taken or would conflict with this Indenture or if the Trustee in good faith shall, by a Responsible Officer, determine that the proceedings so directed would involve it in personal liability or be unjustly
prejudicial to the Holders not taking part in such direction, and 
 (b) the Trustee may take any other action deemed proper
by the Trustee which is not inconsistent with such direction. 
 SECTION 513. Waiver of Past Defaults. Subject to Section 502,
the Holders of not less than a majority in aggregate principal amount of the Outstanding Securities of any series may on behalf of the Holders of all the Securities of such series waive any past default hereunder with respect to such series and its
consequences, except a default not theretofore cured 
 (a) in the payment of the principal (or premium, if any) or interest
on any Security of such series, or in the payment of any sinking or purchase fund or analogous obligation with respect to the Securities of such series, or 
 (b) in respect of a covenant or provision hereof which under Article Nine cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series. 
 Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. 
 SECTION 514.
Undertaking for Costs. All parties to this Indenture agree, and each Holder of any Security by its acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any 

  

 40 

 
right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant
in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders, holding in
the aggregate more than 10% in principal amount of the Outstanding Securities of any series to which the suit relates, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of (or premium, if any) or
interest on any Security on or after the respective Stated Maturities expressed in such Security (or, in the case of redemption or repayment, on or after the Redemption Date or Repayment Date). 
 SECTION 515. Waiver of Stay or Extension Laws. The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and
the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been enacted. 
 ARTICLE SIX 
 The Trustee 
 SECTION 601. Certain
Duties and Responsibilities. (a) Except during the continuance of an Event of Default with respect to any series of Securities, 
 (1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture with respect to the Securities of such series, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and 
 (2) in the absence of bad faith on its part, the Trustee may, with
respect to Securities of such series, conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to
the requirements of this Indenture. 
 (b) In case an Event of Default with respect to any series of Securities has occurred
and is continuing, the Trustee shall exercise with respect to the 

  

 41 

 
Securities of such series such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his own affairs. 
 (c) No provision of this
Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that 
 (1) this subsection shall not be construed to limit the effect of subsection (a) of this Section; 
 (2) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that
the Trustee was negligent in ascertaining the pertinent facts; 
 (3) the Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in aggregate principal amount of the Outstanding Securities of any series relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such series; 
 (4) no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it; 
 (5) the Trustee shall not be liable for interest on any money received by it except as the Trustee may agree
in writing with the Company; and 
 (6) in no event shall the Trustee be responsible or liable for special, indirect or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss or profit), irrespective of whether the Trustee has been advised of the likelihood of such loss or damage regardless of the form of action. 
 (d) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of
or affording protection to the Trustee shall be subject to the provisions of this Section. 
 SECTION 602. Notice of Defaults. Within
30 days after the occurrence of any default hereunder with respect to Securities of any series, the Trustee shall transmit by mail to all Securityholders of such series, as their names and addresses appear in the Security Register, notice of
such default hereunder actually known to a Responsible Officer of the Trustee, unless such default shall have been cured or waived; provided, however, that, except in the case of a default in the payment of the principal of 

  

 42 

 
(or premium, if any) or interest or Additional Amounts on any Security of such series or in the payment of any sinking or purchase fund installment or
analogous obligation with respect to Securities of such series, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers
of the Trustee in good faith determine that the withholding of such notice is in the interests of the Securityholders of such series; and provided further that in the case of any default of the character specified in Section 501(3) with
respect to Securities of such series no such notice to Securityholders of such series shall be given until at least 30 days after the occurrence thereof. For the purpose of this Section, the term “default”, with respect to Securities
of any series, means any event which is, or after notice or lapse of time or both would become, an Event of Default with respect to Securities of such series. 
 SECTION 603. Certain Rights of Trustee. Except as otherwise provided in Section 601: 
 (a) the Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or
other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 
 (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 

(c) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior
to taking, suffering or omitting any action hereunder, the Trustee shall entitled to receive and (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’
Certificate; 
 (d) the Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel
shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 
 (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or
direction of any of the Securityholders pursuant to this Indenture, unless such Securityholders shall have offered to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which might be incurred
by it in compliance with such request or direction; 
 (f) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument, opinion, 

  

 43 

 
report, notice, request, direction, consent, order, bond, debenture or other paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or
by agent or attorney; 
 (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder; 
 (h) the Trustee shall not be under any obligation to take any action that is discretionary under the provisions of this Indenture;

 (i) the Trustee shall not be charged with knowledge of any default or Event of Default unless either (1) a Responsible
Officer of the Trustee shall have actual knowledge of such event or (2) the Trustee shall have received written notice thereof from the Company or a Holder; 
 (j) no permissive power or authority available to the Trustee shall be construed as a duty; and 
 (k) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder. 
 SECTION 604. Not
Responsible for Recitals or Issuance of Securities. The recitals contained herein, in any offering materials and in the Securities, except the certificates of authentication, shall be taken as the statements of the Company and the Trustee
assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of any offering materials, this Indenture or of the Securities, except that the Trustee represents that it has duly authorized,
executed and delivered this Indenture, has the power to authenticate the Securities and has the ability to perform its obligations hereunder. The Trustee shall not be accountable for the use or application by the Company of Securities or the
proceeds thereof. 
 SECTION 605. May Hold Securities. The Trustee, any Paying Agent, the Security Registrar or any other agent of the
Company or the Trustee, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the same rights it would have if it were not Trustee,
Paying Agent, Security Registrar or such other agent. 
 SECTION 606. Money Held in Trust. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company. 
  

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 SECTION 607. Compensation, Reimbursement and Indemnification. The Company agrees: 
 (a) to pay to the Trustee from time to time such reasonable compensation as the Company and the Trustee from time to time agree in writing
for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 
 (b) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements
and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as
may be attributable to its negligence or willful misconduct; and 
 (c) to indemnify the Trustee and its directors, officers,
agents, and employees for, and to hold them harmless against, any and all loss, liability or expense incurred without loss, negligence or willful misconduct on its part, arising out of or in connection with the acceptance or administration of this
trust, including the costs and expenses of defending itself against or investigating any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. 
 As security for the performance of the obligations of the Company under this Section, the Trustee shall have a lien prior to the Securities upon all
property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of (and premium, if any) or interest on particular Securities. The obligations of the Company set forth in this Section shall
survive the payment in full of all amounts due and owing hereunder and under the Securities, the termination and discharge of this Indenture or the earlier resignation or removal of the Trustee. 
 When the Trustee incurs any expenses or renders any services after the occurrence of an Event of Default specified in Section 501(5) and (6), such
expenses and the compensation for such services are intended to constitute expenses of administration under any bankruptcy law or any similar federal or state law for the relief of debtors. 
 SECTION 608. Disqualification; Conflicting Interests. The Trustee for the Securities of any series issued hereunder shall be subject to the
provisions of Section 310(b) of the Trust Indenture Act during the period of time provided for therein. In determining whether the Trustee has a conflicting interest as defined in Section 310(b) of the Trust Indenture Act with respect to
the Securities of any series, there shall be excluded for purposes of the conflicting interest provisions of such Section 310(b) the Securities of every other series issued under this Indenture. 
 SECTION 609. Corporate Trustee Required; Eligibility. There shall at all times be a Trustee hereunder with respect to each series of
Securities, which shall be a corporation organized and doing business under the laws of the United States of America 

  

 45 

 
or of any State, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least U.S.$50,000,000, and
subject to supervision or examination by United States Federal or State authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee with respect
to any series of Securities shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 
 SECTION 610. Resignation and Removal; Appointment of Successor. (a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee under Section 611. 
 (b) The Trustee may resign with respect to any series of Securities at any time by giving written notice thereof to the Company. If an instrument of acceptance by a successor Trustee shall not have been delivered to
the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee. 
 (c) The Trustee may be removed with respect to any series of Securities at any time by Act of the Holders of a majority in aggregate
principal amount of the Outstanding Securities of that series, delivered to the Trustee and to the Company. 
 (d) If at any
time: 
 (1) the Trustee shall fail to comply with Section 310(b) of the Trust Indenture Act pursuant to Section 608
with respect to any series of Securities after written request therefor by the Company or by any Securityholder who has been a bona fide Holder of a Security of that series for at least six months, or 
 (2) the Trustee shall cease to be eligible under Section 609 with respect to any series of Securities and shall fail to resign after
written request therefor by the Company or by any such Securityholder, or 
 (3) the Trustee shall become incapable of acting
with respect to any series of Securities, or 
 (4) the Trustee shall be adjudged a bankrupt or insolvent or a receiver of the
Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, 
 then, in any such case, (i) the Company by a Board Resolution may remove the Trustee, with respect to the Securities of that series, or in the case of
clause (4), with respect to all 

  

 46 

 
series, or (ii) subject to Section 514, any Securityholder who has been a bona fide Holder of a Security of such series for at least 6 months
may, on behalf of itself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee with respect to the series, or, in the case of clause (4), with
respect to all series. 
 (e) If the Trustee shall resign, be removed or become incapable of acting with respect to any series
of Securities, or if a vacancy shall occur in the office of the Trustee with respect to any series of Securities for any cause, the Company, by a Board Resolution, shall promptly appoint a successor Trustee for that series of Securities. If, within
one year after such resignation, removal or incapacity, or the occurrence of such vacancy, a successor Trustee with respect to such series of Securities shall be appointed by Act of the Holders of a majority in aggregate principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment, become the successor Trustee with respect to such series and
supersede the successor Trustee appointed by the Company with respect to such series. If no successor Trustee with respect to such series shall have been so appointed by the Company or the Securityholders of such series and accepted appointment in
the manner hereinafter provided, any Securityholder who has been a bona fide Holder of a Security of that series for at least six months may, on behalf of itself and all others similarly situated, petition any court of competent jurisdiction
for the appointment of a successor Trustee with respect to such series. 
 (f) The Company shall give notice of each
resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of a successor Trustee with respect to the Securities of any series by mailing written notice of such event by first-class mail, postage
prepaid, to the Holders of Securities of that series as their names and addresses appear in the Security Register. Each notice shall include the name of the successor Trustee and the address of its Corporate Trust Office. 
 SECTION 611. Acceptance of Appointment by Successor. Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the predecessor Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the predecessor Trustee shall become effective with respect to any series as to which it is resigning or being removed as
Trustee, and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the predecessor Trustee with respect to any such series; but, on request of the Company or the
successor Trustee, such predecessor Trustee shall, upon payment of its reasonable charges, if any, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the predecessor Trustee, and shall duly
assign, transfer and deliver to such successor Trustee all property and money held by such predecessor Trustee hereunder with respect to all or any such series, subject nevertheless to its lien, if any, provided for in Section 607. Upon request
of any such successor Trustee, the Company shall execute 

  

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any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts. 
 In case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the
predecessor Trustee and each successor Trustee with respect to the Securities of any applicable series shall execute and deliver an indenture supplemental hereto which shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the predecessor Trustee with respect to the Securities of any series as to which the predecessor Trustee is not being succeeded shall continue to be vested in the predecessor Trustee, and
shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental
indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be Trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee.

 No successor Trustee with respect to any series of Securities shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible with respect to that series under this Article. 
 SECTION 612. Merger, Conversion,
Consolidation or Succession to Business. Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall
be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee (including this transaction), shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise
qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such
Securities. 
 SECTION 613. Preferential Collection of Claims Against Company. If and when the Trustee shall become a creditor of the
Company (or any other obligor upon the securities of any Series), the Trustee shall be subject to the provisions of the TIA regarding the collection of claims against the Company (or any other obligor). 
 SECTION 614. Appointment of Authenticating Agent. At any time when any of the Securities remain Outstanding, the Trustee, with the approval of the
Company, may appoint an Authenticating Agent or Authenticating Agents with respect to one or more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon exchange,
registration of transfer or partial redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Wherever reference is made in 

  

 48 

 
this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a Person authorized under such laws to act as an Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and, if other than the Company, subject to supervision or examination by
United States Federal or State authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant to law, then for the purposes of this Section, the combined capital and surplus of such Authenticating Agent shall be
deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating
Agent shall resign immediately in the manner and with the effect specified in this Section. 
 Any Person into which an Authenticating Agent
may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any Person succeeding to the corporate agency or corporate
trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided such Person shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent. 
 An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and, if other
than the Company, to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and, if other than the Company, to the Company. Upon receiving such a notice
of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee, with the approval of the Company, may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall mail written notice of such appointment by first-class mail, postage prepaid, to all Holders of Securities of the series with respect to which such Authenticating Agent will
serve, as their names and addresses appear in the Security Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like
effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section. 
 The Company agrees to pay to each Authenticating Agent reasonable compensation for its services under this Section. 
 If an appointment with respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an alternate certificate of
authentication in the following form: 
  

 49 

 This is one of the Securities of the series designated therein referred to in the within-mentioned
Indenture. 
  

					
	 THE BANK OF NEW YORK MELLON,
 as Trustee,

			
		 	by	 	 
		 		 	As Authenticating Agent
			
		 	by	 	 
		 		 	Authorized Officer

 ARTICLE SEVEN 
 Securityholders’ Lists and Reports by 
 Trustee and Company 
 SECTION 701. Company to Furnish Trustee Names and Addresses of Securityholders. The Company will furnish or cause to be furnished to the Trustee

 (a) semi-annually, not more than 15 days after each Regular Record Date, in each year in such form as the Trustee may
reasonably require, a list of the names and addresses of the Holders of Securities of such series as of such date, and 
 (b)
at such other times as the Trustee may reasonably request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is
furnished, 
 excluding from any such list names and addresses received by the Trustee in its capacity as Security Registrar. 
 SECTION 702. Preservation of Information; Communications to Securityholders. The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders of Securities contained in the most recent list furnished to the Trustee as provided in Section 701 and the names and addresses of Holders of Securities received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701 upon receipt of a new list so furnished. 
 SECTION 703. Reports by Trustee. (a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions under the Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto. 
  

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 (b) A copy of each report shall, at the time of such transmission to Holders, be filed by
the Trustee with each stock exchange (if any) upon which any Securities are listed, with the Commission and with the Company. The Company will notify the Trustee when any Securities are listed on any stock exchange. 
 SECTION 704. Reports by Company. If the Company is not required to file information, documents or reports pursuant to either of Section 13
and Section 15(d) of the Exchange Act, then it will make available, upon request, to the Trustee the information required pursuant to Rule 144A(d)(4) under the Securities Act. 
 SECTION 705. Delivery of Reports to Trustee. Delivery of any of the above reports, documents and information to the Trustee is for informational
purposes only and the Trustee’s receipt of such reports shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s or any other party’s
compliance with any of their covenants in this Indenture (as to which the Trustee is entitled to rely exclusively on an Officers’ Certificate). 
 ARTICLE EIGHT 
 Consolidation, Merger, Conveyance or Transfer 
 SECTION 801. Company May Consolidate, etc., only on Certain Terms. The Company shall not consolidate with or merge into any other Person or convey
or transfer its properties and assets substantially as an entirety to any Person, unless: 
 (1) the successor Person (if
other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer the properties and assets of the Company substantially as an entirety shall be a corporation organized
and existing under the laws of the Republic of Chile, and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, the due and punctual payment of the
principal of (and premium, if any) and interest on all the outstanding Securities and the performance of every covenant of this Indenture on the part of the Company to be performed or observed; 
 (2) immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time, or both,
would become an Event of Default, shall have happened and be continuing; and 
 (3) prior to the consummation of such
Transaction, the Company delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel each stating that such consolidation, merger, conveyance or transfer and such supplemental indenture comply with this Article and that all
conditions precedent herein provided for relating to such transaction have been complied with. 
  

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 SECTION 802. Successor Corporation Substituted. Upon any consolidation or merger, or any
conveyance or transfer of the properties and assets of the Company substantially as an entirety in accordance with Section 801, the successor corporation formed by such consolidation or into which the Company is merged or the Person to which
such conveyance or transfer is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein. In the
event of any such conveyance or transfer, the Company as the predecessor corporation may be dissolved, wound up or liquidated at any time thereafter. 
 ARTICLE NINE 
 Supplemental Indentures 
 SECTION 901. Supplemental Indentures Without Consent of Securityholders. Without the consent of the Holders of any Securities, the Company, when
authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 
 (1) to evidence the succession of another corporation to the Company, and the assumption by any such successor of the covenants of the
Company herein and in the Securities contained; or 
 (2) to add to the covenants of the Company, or to surrender any right or
power herein conferred upon the Company, for the benefit of the Holders of the Securities of any or all series (and if such covenants or the surrender of such right or power are to be for the benefit of less than all series of Securities, stating
that such covenants are expressly being included or such surrenders are expressly being made solely for the benefit of one or more specified series); or 
 (3) to cure any ambiguity or defect, to correct or supplement any provision herein which may be inconsistent with any other provision herein; or 
 (4) to make any other provisions with respect to matters or questions arising under this Indenture or the Securities or make any other
changes herein or therein; or 
 (5) to add to this Indenture such provisions as may be expressly permitted by the TIA,
excluding, however, the provisions referred to in Section 316(a)(2) of the TIA as in effect at the date as of which this instrument was executed or any corresponding provision in any similar federal statute hereafter enacted; or 
 (6) to establish any form of Security, as provided in Article Two, to provide for the issuance of any series of Securities as
provided in and subject to the terms of Article Three (including the issuance of further securities having identical terms to the series of any Securities so that the further issue is 

  

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consolidated and forms a single series with the Securities), to set forth the terms thereof and/or to add to the rights of the Holders of the Securities of
any series; or 
 (7) to evidence and provide for the acceptance of appointment by another corporation as a successor Trustee
hereunder with respect to one or more series of Securities and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee,
pursuant to Section 611; or 
 (8) to add any additional Events of Default in respect of the Securities of any or all
series (and if such additional Events of Default are to be in respect of less than all series of Securities, stating that such Events of Default are expressly being included solely for the benefit of one or more specified series); or 
 (9) to provide for the issuance of Securities in bearer form, to the extent permitted by law, with coupons as well as fully registered
form. 
 No supplemental indenture for the purposes identified in clauses (2), (3), (4), (6) or (8) above may be entered into
if to do so would adversely affect the interests of the Holders of the Securities in any material respect. 
 SECTION 902. Supplemental
Indentures with Consent of Securityholders. With the consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Securities of each series affected by such supplemental indenture or indentures, by Act of
said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of the Securities of each such series under this Indenture; provided, however, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Security of such series adversely affected thereby, 
 (1) change
the Maturity of the principal of, or the Stated Maturity of any premium on, or any installment of interest on, any Security of such series, or reduce the principal amount thereof or the rate of interest (or Additional Amounts, if any) payable
thereon, or change the method of computing the amount of principal thereof or interest (or Additional Amounts, if any) payable thereon on any date or change any Place of Payment where, or the coin or currency in which, any Security of such series or
any premium or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Maturity or the Stated Maturity, as the case may be, thereof (or, in the case of redemption or repayment, on or
after the Redemption Date or the Repayment Date, as the case may be); or 
 (2) reduce the percentage in aggregate principal
amount of the Outstanding Securities of such series, the consent of whose Holders is required 

  

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for any such supplemental indenture, or the consent of whose Holders is required for any waiver of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences, provided for in this Indenture; or 
 (3) modify any of the provisions of
this Section, Section 513 or Section 1012, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security of
such series affected thereby. 
 Promptly after the execution by the Company and the Trustee of any amendment, supplement or waiver pursuant
to the provisions of this Section 902, the Company shall give notice thereof to the Holders of Securities as provided in Section 106, and to any other entity as required by applicable regulations, setting forth in general terms the
substance of such amendment, supplement or waiver. Any failure of the Company to give such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment, supplement or waiver. 
 A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the
Holders of Securities of any other series. 
 It shall not be necessary for any Act of Securityholders under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
 SECTION 903. Execution of Supplemental Indentures. In executing or accepting the additional trusts created by any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture,
the Trustee shall be entitled to receive, in addition to the documents required by Section 102, and (subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Trustee may, but shall not (except to the extent required in the case of a supplemental indenture entered into under Section 901(4) or 901(6)) be obligated to, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties, indemnities or immunities under this Indenture or otherwise. 
 SECTION 904. Effect of Supplemental Indentures. Upon the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby to the extent provided therein. 
 SECTION 905. Intentionally Omitted. 
  

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 SECTION 906. Reference in Securities to Supplemental Indentures. Securities authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any such supplemental indenture may be prepared and executed by the Company and authenticated and such Securities may
be delivered by the Trustee in exchange for Outstanding Securities. 
 ARTICLE TEN 
 Covenants 
 SECTION 1001. Payment of Principal, Premium and Interest.
With respect to each series of Securities, the Company will duly and punctually pay the principal of (and premium, if any) and interest on such Securities in accordance with their terms and this Indenture, and will duly comply with all the other
terms, agreements and conditions contained in, or made in the Indenture for the benefit of, the Securities of such series. 
 SECTION 1002.
Maintenance of Office or Agency. The Company will maintain an office or agency in each Place of Payment where Securities may be presented or surrendered for payment, where Securities may be surrendered for transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and of any change in the location, of such office or agency. If at
any time the Company shall fail to maintain such office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the principal Corporate Trust Office of the
Trustee, and the Company hereby appoints the Trustee its agent to receive all such presentations, surrenders, notices and demands. 
 SECTION
1003. Money for Security Payments To Be Held in Trust. If the Company shall at any time act as its own Paying Agent for any series of Securities, it will, on or before each due date of the principal of (and premium, if any) or interest on,
any of the Securities of such series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or interest so becoming due until such sums shall be paid to such Persons
or otherwise disposed of as herein provided, and will promptly notify the Trustee of its action or failure to so act. 
 Whenever the Company
shall have one or more Paying Agents for any series of Securities, it will, at least one Business Day prior to each due date of the principal of (and premium, if any) or interest on, any Securities of such series, deposit with a Paying Agent a sum
sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal (and premium, if any) or interest, and (unless such Paying 

  

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Agent is the Trustee) the Company will promptly notify the Trustee in writing of its action or failure to so act. The Company will cause the bank through
which payment of funds to the Paying Agent will be made to deliver to the Paying Agent by 10:00 a.m. (New York City time) two Business Days prior to the due date for such payment an irrevocable confirmation (by tested telex or authenticated
Swift MT 100 Message) of its intention to make such payment. 
 The Company will cause each Paying Agent other than the Trustee for any
series of Securities to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will: 
 (1) hold all sums held by it for the payment of principal of (and premium, if any) or interest on Securities of such series in trust for
the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided; 
 (2) give the Trustee notice of any default by the Company (or any other obligor upon the Securities of such series) in the making of any such payment of principal (and premium, if any) or interest on the Securities of
such series; and 
 (3) at any time during the continuance of any such default, upon the written request of the Trustee,
forthwith pay to the Trustee all sums so held in trust by such Paying Agent. 
 The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture with respect to any series of Securities or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent in
respect of each and every series of Securities as to which it seeks to discharge this Indenture or, if for any other purpose, all sums so held in trust by the Company in respect of all Securities, such sums to be held by the Trustee upon the same
trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 
 Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of (and premium, if any)
or interest on any Security of any series and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and payable shall be paid to the Company upon Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company, as trustee thereof, shall thereupon cease. The Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company mail to the Holders of the Securities as to which the
money to be repaid was held in trust, as their 

  

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names and addresses appear in the Security Register, a notice that such moneys remain unclaimed and that, after a date specified in the notice, which shall
not be less than 30 days from the date on which the notice was first mailed to the Holders of the Securities as to which the money to be repaid was held in trust, any unclaimed balance of such moneys then remaining will be paid to the Company
free of the trust formerly impressed upon it. 
 The Company initially authorizes the Trustee to act as Paying Agent for the Securities on
its behalf. The Company may at any time and from time to time authorize one or more Persons to act as Paying Agent in addition to or in place of the Trustee with respect to any series of Securities issued under this Indenture. 
 SECTION 1004. Statement as to Compliance. The Company will deliver to the Trustee, within 120 days after the end of each fiscal year, a
written statement signed by the principal executive officer, principal financial officer or principal accounting officer of the Company, stating that 
 (1) a review of the activities of the Company during such year and of the Company’s performance under this Indenture and under the terms of the Securities has been made under his supervision; and 
 (2) to the best of its knowledge, based on such review, the Company has complied with all conditions and covenants under this Indenture
through such year, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to him and the nature and status thereof. 
 SECTION 1005. Corporate Existence. Except to the extent otherwise permitted by Article Eight, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its
corporate existence and will use its best efforts to do or cause to be done all things necessary to preserve and keep in full force and effect its rights (charter and statutory) and franchises and such rights and franchises of its Subsidiaries,
except to the extent the failure to do so would not have a material adverse effect on the financial condition and results of operation of the Company and its Subsidiaries taken as a whole; provided, however, that the Company shall not
be required to preserve any such right or franchise if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries taken as a whole and that the loss
thereof is not disadvantageous in any material respect to the Holders. 
 SECTION 1006. Limitation on Liens. (a) The Company will
not, nor will it permit any Subsidiary to, incur any Indebtedness, if such Indebtedness is secured by a Lien upon any Specified Property now owned or hereafter acquired, unless, concurrently with the incurrence of such Indebtedness, the Securities
shall be secured equally and ratably with (or prior to) such Indebtedness for so long as such Indebtedness is so secured; provided, however, that the foregoing restriction shall not apply to: 
  

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 (1) any Lien on (i) any Specified Property acquired, constructed, developed,
extended or improved by the Company or any Subsidiary (singly or together with other Persons) or any property reasonably incidental to the use or operation of such Specified Property (including any real property on which such Specified Property is
located) or (ii) any shares or other ownership interest in, or any Indebtedness of, any Person which holds, owns or is entitled to such property, products, revenue or profits, in each of cases (i) or (ii), to the extent such Lien is
created, incurred or assumed contemporaneously with, or within 360 days after, such acquisition or the completion of such construction, development, extension or improvement in order to secure or provide for the payment of any part of the
purchase price or other consideration of such Specified Property or the other costs of such acquisition, construction, development, extension or improvement (including costs such as escalation, interest during construction and financing and
refinancing costs); 
 (2) any Lien on any property existing at the time of acquisition thereof and which is not created as a
result of or in connection with or in anticipation of such acquisition (unless such Lien was created to secure or provide for the payment of any part of the purchase price of such property and is otherwise permitted by paragraph (1) above);

 (3) any Lien on any property of a Person which is merged with or into the Company or a Subsidiary or any Lien existing on
property of a Person which existed at the time such Person becomes a Subsidiary and, in either such case, which is not created as a result of or in connection with or in anticipation of any such transaction (unless such Lien was created to secure or
provide for the payment of any part of the purchase price of such Person and is otherwise permitted by paragraph (1) above); 
 (4) any Lien which secures Indebtedness owing to the Company or to one or more of the Company’s Subsidiaries; 
 (5) any Lien existing on the date of the Indenture; and 
 (6) any extension, renewal or replacement (or successive
extensions, renewals or replacements) in whole or in part, of any Lien referred to in the foregoing clauses (1) through (5), inclusive; provided, however, that the principal amount of Indebtedness secured thereby shall not exceed
the principal amount of Indebtedness so secured at the time of such extension, renewal or replacement, and that such extension, renewal or replacement shall be limited to all or a part of the property which secured the Lien so extended, renewed or
replaced (plus improvements on such property). 
 (b) Notwithstanding clause (a) of this Section or the provisions
of Section 1007, the Company or any Subsidiary may incur Indebtedness secured by a Lien which would otherwise be prohibited under the provisions of paragraph (a) of this Section or enter into Sale and Leaseback Transactions that would

  

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otherwise be prohibited by Section 1007; provided that the aggregate principal amount of such Indebtedness of the Company and its Subsidiaries
together with the aggregate Attributable Value of all such Sale and Leaseback Transactions of the Company and its Subsidiaries shall not exceed 15% of Consolidated Net Tangible Assets at the time any such Indebtedness is incurred by the Company or
any of its Subsidiaries or at the time any such Sale and Leaseback Transaction is entered into. 
 SECTION 1007. Limitations on Sale and
Leaseback Transactions. Neither the Company nor any Subsidiary may enter into any Sale and Leaseback Transaction with respect to any Specified Property, unless either (x) the Company or such Subsidiary would be entitled pursuant to
Section 1006 to issue, assume or guarantee Indebtedness secured by a Lien on such Specified Property without equally and ratably securing the Securities or (y) the Company or such Subsidiary shall apply or cause to be applied, in the case
of a sale or transfer for cash, an amount equal to the net proceeds thereof and, in the case of a sale or transfer otherwise than for cash, an amount equal to the fair market value (as determined in good faith by the Board of Directors) of the
Specified Property so leased, to the retirement, within 360 days after the effective date of such Sale and Leaseback Transaction, of Indebtedness of the Company ranking at least on a parity with the Securities and owing to a Person other than
the Company or any Affiliate of the Company or to the acquisition, construction or improvement of any real or personal property used by the Company or any Subsidiary in the ordinary course of business. The restrictions set forth in the preceding
sentence will not apply to (i) transactions providing for a lease for a term, including any renewal thereof, of not more than five years and (ii) transactions between the Company and a Subsidiary or between Subsidiaries. 
 SECTION 1008. Maintenance of Properties. The Company will cause all tangible properties used or useful in the conduct of its business or the
business of any Subsidiary to be maintained and kept in good condition, repair and working order and supplied with such equipment and will cause to be made such repairs, renewals, replacements, betterments and improvements thereof, all as in the
judgment of the Company may be reasonably necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this Section 1008 shall
prevent the Company from discontinuing the operation or maintenance of any of such properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of its business or the business of any Subsidiary and not
disadvantageous in any material respect to the Holders. 
 SECTION 1009. Maintenance of Insurance. The Company shall maintain, and
shall cause each of its Subsidiaries to maintain, with insurers the Company reasonably believes to be financially sound and reputable, insurance deemed adequate by the Company with respect to its properties and business and the properties and
business of its Subsidiaries against loss or damage of the kinds customarily insured against by corporations in the same or similar business and owning and/or operating properties similar to those owned and/or operated by the Company or its
Subsidiaries. Such insurance may be subject to co-insurance deductibility or similar clauses which, in effect, 

  

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result in self-insurance of certain losses, provided that such self-insurance is in accord with the practices of corporation in the same or similar business
and adequate insurance reserves are maintained in connection with such self-insurance. 
 SECTION 1010. Maintenance of Books and
Records. The Company shall, and shall cause each of its Subsidiaries to, maintain books, accounts and records in accordance with generally accepted accounting principles as applied in the Republic of Chile or in the applicable jurisdiction.

 SECTION 1011. Further Assurances. The Company shall, at its own cost and expense, execute and deliver to the Trustee all such other
documents, instruments and agreements and do all such other acts and things as may be reasonably required, in the reasonable opinion of the Trustee, to enable the Trustee to exercise and enforce its rights under this Indenture and under the
documents, instruments and agreements required under this Indenture and to carry out the intent of this Indenture. 
 SECTION 1012. Waiver
of Certain Covenants. The Company may omit in respect of any series of Securities, in any particular instance, to comply with any covenant or condition set forth in Sections 1006 and 1007, if before or after the time for such compliance the
Holders of at least a majority in aggregate principal amount of the Securities at the time Outstanding of such series shall, by Act of such Securityholders, either waive such compliance in such instance or generally waive compliance with such
covenant or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in
respect of any such covenant or condition shall remain in full force and effect. 
 ARTICLE ELEVEN 
 Redemption of Securities 
 SECTION
1101. Applicability of Article. The Company may reserve the right to redeem and pay before Stated Maturity all or any part of the Securities of any series, either by optional redemption, sinking or purchase fund or analogous obligation or
otherwise, by provision therefor in the form of Security for such series established and approved pursuant to Section 202 and on such terms as are specified in such form or in the Board Resolution or indenture supplemental hereto with respect
to Securities of such series as provided in Section 301. Redemption of Securities of any series shall be made in accordance with the terms of such Securities and, to the extent that this Article does not conflict with such terms, the succeeding
Sections of this Article. 
 SECTION 1102. Election to Redeem; Notice to Trustee. The election of the Company to redeem any Securities
redeemable at the election of the Company shall be evidenced by, or made pursuant to authority granted by, a Board Resolution. In case of any redemption at the election of the Company of any Securities of any series, the Company shall, at least
60 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee in writing 

  

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of such Redemption Date and of the principal amount of Securities of such series to be redeemed. 
 In the case of any redemption of Securities (i) prior to the expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, or (ii) pursuant to an election of the Company which is subject to a condition specified in the terms of such Securities, the Company shall furnish the Trustee with an Officers’ Certificate
evidencing compliance with such restriction or condition. 
 SECTION 1103. Selection by Trustee of Securities to be Redeemed. If less
than all the Securities of like tenor and terms of any series are to be redeemed, the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series not previously called for redemption, by lot or such method as the Trustee shall deem fair and appropriate and which may include provision for the selection for redemption of portions of the principal of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of that series. Unless otherwise provided in the terms of a particular series of Securities, the portions of the principal of Securities so selected for partial redemption
shall be equal to the minimum authorized denomination of the Securities of such series, or an integral multiple thereof, and the principal amount which remains outstanding shall not be less than the minimum authorized denomination for Securities of
such series. If less than all the Securities of unlike tenor and terms of a series are to be redeemed, the particular Securities to be redeemed shall be selected by the Company. 
 The Trustee shall promptly notify the Company in writing of the Securities selected for redemption and, in the case of any Security selected for partial
redemption, the principal amount thereof to be redeemed. 
 For all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal of such Security which has been or is to be redeemed. 
 SECTION 1104. Notice of Redemption. Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than 30 nor more
than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, at its address appearing in the Security Register. 
 All notices of redemption shall state: 
 (1) the Redemption Date; 
 (2) the Redemption Price; 
 (3) if less than all Outstanding Securities of any series are to be redeemed, the identification (and, in the case of partial redemption, the respective principal 

  

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amounts) of the Securities to be redeemed, from the Holder to whom the notice is given; 
 (4) that on the Redemption Date the Redemption Price will become due and payable upon each such Security, and that interest, if any,
thereon shall cease to accrue from and after said date; 
 (5) the place where such Securities are to be surrendered for
payment of the Redemption Price, which shall be the office or agency of the Company in the Place of Payment; and 
 (6) if
applicable, that the redemption is on account of a sinking or purchase fund, or other analogous obligation. 
 Notice of redemption of
Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company’s Request, by the Trustee in the name and at the expense of the Company. 
 SECTION 1105. Deposit of Redemption Price. At least one Business Day prior to any Redemption Date, the Company shall deposit with the Trustee or
with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money sufficient to pay the Redemption Price of all the Securities which are to be redeemed on that
date. The Company will cause the bank through which payment of funds to the Paying Agent will be made to deliver to the Paying Agent by 10:00 a.m. (New York City Time) two Business Days prior to the due date of such payment an irrevocable
confirmation (by tested telex or authenticated Swift MT 100 Message) of its intention to make such payment. 
 SECTION 1106.
Securities Payable on Redemption Date. Notice of Redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified and from and after
such date (unless the Company shall default in the payment of the Redemption Price) such Securities shall cease to bear interest. Upon surrender of such Securities for redemption in accordance with the notice, such Securities shall be paid by the
Company at the Redemption Price. Installments of interest the Stated Maturity of which is on or prior to the Redemption Date shall be payable to the Holders of such Securities registered as such on the relevant Regular Record Dates according to
their terms and the provisions of Section 307. 
 If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal shall, until paid, bear interest from the Redemption Date at the rate borne by the Security, or as otherwise provided in such Security. 
 SECTION 1107. Securities Redeemed in Part. Any Security which is to be redeemed only in part shall be surrendered at the office or agency of the Company in the Place of Payment with respect to that series
(with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to 

  

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the Company and the Trustee duly executed by, the Holder thereof or its attorney duly authorized in writing) and the Company shall execute and the Trustee
shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of the same series and Stated Maturity and of like tenor and terms, of any authorized denomination as requested by such Holder in
aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. 
 SECTION
1108. Provisions with Respect to any Sinking Funds. Unless the form or terms of any series of Securities shall provide otherwise, in lieu of making all or any part of any mandatory sinking fund payment with respect to such series of
Securities in cash, the Company may at its option (1) deliver to the Trustee for cancellation any Securities of such series theretofore acquired by the Company, or (2) receive credit for any Securities of such series (not previously so
credited) acquired by the Company and theretofore delivered to the Trustee for cancellation or redeemed by the Company other than through the mandatory sinking fund, and if it does so then (i) Securities so delivered or credited shall be
credited at the applicable sinking fund Redemption Price with respect to Securities of such series, and (ii) on or before the 60th day next preceding each sinking fund Redemption Date with respect to such series of Securities, the Company will
deliver to the Trustee (A) an Officers’ Certificate specifying the portions of such sinking fund payment to be satisfied by payment of cash and by delivery or credit of Securities of such series acquired by the Company or so redeemed, and
(B) such Securities so acquired, to the extent not previously surrendered. Such Officers’ Certificate shall also state the basis for such credit and that the Securities for which the Company elects to receive credit have not been
previously so credited and were not redeemed by the Company through operation of the mandatory sinking fund, if any, provided with respect to such Securities and shall also state that no Event of Default with respect to Securities of such series has
occurred and is continuing. All Securities so delivered to the Trustee shall be cancelled by the Trustee and no Securities shall be authenticated in lieu thereof. 
 If the sinking fund payment or payments (mandatory or optional) with respect to any series of Securities made in cash plus any unused balance of any preceding sinking fund payments with respect to Securities of such
series made in cash shall exceed U.S.$50,000 (or a lesser sum if the Company shall so request), unless otherwise provided by the terms of such series of Securities, that cash shall be applied by the Trustee on the sinking fund Redemption Date with
respect to Securities of such series next following the date of such payment to the redemption of Securities of such series at the applicable sinking fund Redemption Price with respect to Securities of such series, together with accrued interest, if
any, to the date fixed for redemption, with the effect provided in Section 1106. The Trustee shall select, in the manner provided in Section 1103, for redemption on such sinking fund Redemption Date a sufficient principal amount of
Securities of such series to utilize that cash and shall thereupon cause notice of redemption of the Securities of such series for the sinking fund to be given in the manner provided in Section 1104 (and with the effect provided in
Section 1106) for the redemption of Securities in part at the option of the Company. Any sinking fund moneys not so applied or allocated by the Trustee to the redemption of Securities of such series 

  

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shall be added to the next cash sinking fund payment with respect to Securities of such series received by the Trustee and, together with such payment, shall
be applied in accordance with the provisions of this Section 1108. Any and all sinking fund moneys with respect to Securities of any series held by the Trustee at the Maturity of Securities of such series, and not held for the payment or
redemption of particular Securities of such series, shall be applied by the Trustee, together with other moneys, if necessary, to be deposited sufficient for the purpose, to the payment of the principal of the Securities of such series at Maturity.

 On or before each sinking fund Redemption Date provided with respect to Securities of any series, the Company shall pay to the Trustee in
cash a sum equal to all accrued interest, if any, to the date fixed for redemption on Securities to be redeemed on such sinking fund Redemption Date pursuant to this Section 1108. 
 SECTION 1109. Optional Redemption in the Event of Change in Tax Treatment. If as a result of any change in or amendment to the laws or treaties
(or any rules or regulations thereunder) of a Taxing Authority, or any amendment to or change in an official interpretation, administration or application of such laws, treaties, rules, or regulations (including a holding by a court of competent
jurisdiction), which change or amendment becomes effective or, in the case of a change in official position, is announced on or after the issue date of the Securities or on or after the date a successor assumes the obligations under the Securities,
the Company has or will become obligated to pay any Additional Amounts in excess of the Additional Amounts the Company would be obligated to pay if payments were subject to withholding or deduction at a rate of 4% (the “Minimum Withholding
Level”), the Company may, at its option, redeem all, but not less than all, of the Securities of any series, at the Redemption Price, together with any accrued interest to the Redemption Date, upon publication of irrevocable notice not less
than 30 days nor more than 90 days prior to the Redemption Date. No notice of such redemption may be given earlier than 90 days prior to, or later than 90 days after, the earliest date on which the Company would, but for such redemption, be
obligated to pay Additional Amounts above the Minimum Withholding Level, if payment in respect of the Securities were actually due on such date. For the avoidance of doubt, the Company shall not have the right to so redeem the Securities solely
because the Company becomes obliged to pay Additional Amounts that are less than the amounts payable at the Minimum Withholding Level. Notwithstanding the foregoing, the Company shall not have the right to so redeem the Securities unless it
determines, in its reasonable business judgment, that it cannot avoid the obligation to pay the Additional Amounts above the Minimum Withholding Level by the use of reasonable measures available to it; provided that for the avoidance of doubt
changing the jurisdiction of the Company is not a reasonable measure for the purposes of this Section. In the event that the Company elects to so redeem the Securities, it will deliver to the Trustee: (1) an Officers’ Certificate stating
that the Company is entitled to redeem the Securities pursuant to their terms and setting forth a statement of facts showing that the condition or conditions precedent to the right of the Company to so redeem have occurred or been satisfied; and
(2) an Opinion of Counsel, who is reasonably satisfactory to the Trustee, to the effect that the Company has or will become obligated to pay Additional Amounts above the Minimum Withholding 

  

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Level as a result of the change or amendment, and that all governmental requirements necessary for the Company to effect the redemption have been complied
with. 
 ARTICLE TWELVE 
 Defeasance and Covenant Defeasance 
 SECTION 1201. Company’s Option to Effect Defeasance or Covenant Defeasance.
The Company may at its option by Board Resolution, at any time, elect to have either Section 1202 or Section 1203 applied to the Outstanding Securities of any series upon compliance with the conditions set forth below in this
Article Twelve. 
 SECTION 1202. Defeasance and Discharge. Upon the Company’s exercise of the option provided in
Section 1201 to have this Section 1202 applied to all the Outstanding Securities of any series, the Company shall be deemed to have been discharged from its obligations with respect to such Outstanding Securities on the date the conditions
in Section 1204 are satisfied (hereinafter, “defeasance”). For this purpose, such defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by all the Outstanding Securities of
any series and to have satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the same)
except for the following, which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of such Securities to receive, solely from the trust fund described in Section 1204 and as more fully set
forth in such Section, payments in respect of the principal of and premium, if any, Additional Amounts, if any, and interest on such Securities when such payments are due, (b) the Company’s obligations with respect to such Securities under
Sections 304, 305, 306, 308, 1002 and 1003, (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and (d) this Article Twelve and the Company’s obligations to the Trustee under Section 607.
Subject to compliance with this Article Twelve, the Company may exercise its option under this Section 1202 notwithstanding the prior exercise of its option under Section 1203. 
 SECTION 1203. Covenant Defeasance. Upon the Company’s exercise of the option provided in Section 1201 to have this Section 1203
applied to all the Outstanding Securities of any series, (i) the Company shall be released from its obligations under Sections 1006 and 1007 with respect to such Securities and (ii) the occurrence of an event with respect to such
Securities specified in Sections 501(3) (with respect to any of Sections 1006 and 1007), 501(4) or 501(5) shall not be deemed to be an Event of Default on and after the date the conditions set forth in Section 1204 are satisfied
(hereinafter, “covenant defeasance”). For this purpose, such covenant defeasance means that, with respect to such Securities, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation
set forth in any such Section or clause, whether directly or indirectly by reason of any reference elsewhere herein to any such Section or clause or by reason of any reference in any such Section or clause to any other provision herein or in
any other document, but the remainder of this Indenture, with respect to such Securities and Securities of another 

  

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series as to which the Company has not elected to have either Section 1202 or 1203 applied, shall be unaffected thereby. 
 SECTION 1204. Conditions to Defeasance or Covenant Defeasance. The following shall be the conditions to application of either Section 1202 or
Section 1203 to the then Outstanding Securities of the applicable series: 
 (1) The Company shall irrevocably have
deposited or caused to be deposited, as the case may be, with the Trustee (or another trustee satisfying the requirements of Section 609 who shall agree to comply with the provisions of this Article Twelve applicable to it) in trust for
the purpose of making the following payments specifically pledged as security for, and dedicated solely to, the benefit of the Holders of all Outstanding Securities of the applicable series, (A) money in an amount, or (B) U.S. Government
Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount, or (C) a combination
thereof, sufficient, in the opinion of an internationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or
other qualifying trustee) to pay and discharge, the principal of (and premium, if any, and Additional Amounts, if any) and each installment of interest on the applicable series of Securities on the Stated Maturity of such principal of (and premium,
if any, and Additional Amounts, if any) or installment of interest in accordance with the terms of this Indenture and of such series of Securities. 
 (2) In the case of an election under Section 1202, the Company shall have delivered to the Trustee an Opinion of Counsel stating that (x) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling, or (y) since the date of this Indenture there has been a change in the applicable United States Federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the
Holders of the Outstanding Securities with respect to such series of Securities will not recognize gain or loss for United States Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to United States
Federal income tax on the same amount, in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred. 
 (3) In the case of an election under Section 1203, the Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Holders of the Outstanding Securities of the applicable series will not recognize gain or loss for United States Federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to United States
Federal income tax on the same amount, in the same manner and at the same times as would have been the case if such deposit and covenant defeasance had not occurred. 
  

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 (4) The Company shall have delivered to the Trustee an Officers’ Certificate to the
effect that such series of Securities, if then listed on any securities exchange, will not be delisted as a result of such deposit. 
 (5) No Event of Default or event which with notice or lapse of time or both would become an Event of Default shall have occurred and be continuing on the date of such deposit or, insofar as subsections 501(6) and (7) inclusive are
concerned, at any time during the period ending on the 121st day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until the expiration of such period). 
 (6) Such defeasance or covenant defeasance shall not cause the Trustee to have a conflicting interest as defined in Section 608 and
for purposes of the Trust Indenture Act with respect to any securities of the Company. 
 (7) Such defeasance or covenant
defeasance shall not result in a breach or violation of, or constitute a default under, any other agreement or instrument to which the Company is a party or by which it is bound. 
 (8) The Company shall have delivered to the Trustee an Opinion of Counsel to the effect that payment of amounts deposited in trust with
the Trustee as provided in clause (1) hereof will not be subject to future Taxes, within or on behalf the Republic of Chile or any political subdivision or governmental authority thereof or therein having power to tax, except to the extent that
Additional Amounts in respect thereof shall have been deposited in trust with the Trustee as provided in clause (1) hereof. 
 (9) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel each stating that all conditions precedent provided for relating to either the defeasance under Section 1202 or the covenant
defeasance under Section 1203, as the case may be, have been complied with. 
 (10) Such defeasance or covenant
defeasance shall not result in the trust arising from such deposit constituting an investment company as defined in the Investment Company Act of 1940, as amended. 
 SECTION 1205. Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions. Subject to the provisions of Section 1003, all money and U.S. Government Obligations
(including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively, for purposes of this Section, the “Trustee”) pursuant to Section 1204 in respect of the Securities shall be held in trust and
applied by the Trustee, in accordance with the provisions of such series of Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due thereon in respect of principal (and premium, if any) and interest, but such money need not be segregated from other funds except to the extent required by law.

  

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 The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the U.S. Government Obligations deposited pursuant to Section 1204 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the
applicable series of Outstanding Securities. 
 Anything in this Article Twelve to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon Company Request any money or U.S. Government Obligations held by it as provided in Section 1204 which, in the opinion of an internationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect an equivalent defeasance or covenant defeasance. 
 SECTION 1206. Reinstatement. If the Trustee or the Paying Agent is unable to apply any money in accordance with Section 1202 or 1203 by
reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the obligations of the Company under this Indenture and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to this Article Twelve until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 1202 or 1203; provided, however, that if the
Company makes any payment of principal of or interest on or Additional Amounts in respect of any Security following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such series of Securities to
receive such payment from the money held by the Trustee or the Paying Agent. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as of the day
and year first above written. 
  

					
	CELULOSA ARAUCO Y CONSTITUCIÓN S.A.,
			
		 	by	 	/S/    MATÍAS
DOMEYKO        
		 		 	Name: Matías Domeyko
		 		 	Title: Chief Executive Officer
			
		 	by	 	/s/    GIANFRANCO TRUFFELLO        
		 		 	Name: Gianfranco Truffello
		 		 	Title: Chief Financial Officer
	
	THE BANK OF NEW YORK MELLON, as Trustee,
			
		 	by	 	/s/    Maria Batista        
		 		 	Name: Maria Batista
		 		 	Title: Assistant Treasurer

 APPENDIX A 
 FOR OFFERINGS TO QUALIFIED INSTITUTIONAL BUYERS PURSUANT TO 
 RULE 144A AND TO CERTAIN PERSONS IN
OFFSHORE TRANSACTIONS IN 
 RELIANCE ON REGULATION S 
 PROVISIONS RELATING TO SECURITIES, 
 PRIVATE EXCHANGE SECURITIES AND EXCHANGE SECURITIES

 1. Definitions 
 1.1 Definitions 
 For the purposes of this Appendix A the following terms shall have the meanings indicated below:

 “Applicable Procedures” means, with respect to any transfer or transaction involving a Regulation S Global Security or
beneficial interest therein, the rules and procedures of the Depositary for such Global Security, of Euroclear and of Clearstream, in each case to the extent applicable to such transaction and as in effect from time to time. 
 “Clearstream” means Clearstream Banking, société anonyme, or any successor securities clearing agency. 
 “Definitive Security” means a certificated Security (bearing the Restricted Securities Legend if the transfer of such Security is restricted by
applicable law) that does not include the Global Securities Legend. 
 “Euroclear” means the Euroclear Bank, S.A./N.V., as operator
of the Euroclear System, or any successor securities clearing agency. 
 “Exchange Securities” means Securities to be issued
pursuant to this Indenture (i) in connection with a Registered Exchange Offer pursuant to a Registration Rights Agreement in exchange for Securities of the same series with interest payable on such Exchange Securities accruing from the last
date on which interest was paid on the Securities for which they were exchanged or, if no such interest has been paid, from the date of issuance of the Securities, or (ii) as otherwise set forth in or pursuant to a Board Resolution or indenture
supplemental hereto. 
 “Global Securities Legend” means the legend set forth under that caption in Exhibit A-1 to this
Indenture. 
 “Initial Purchasers” means the initial purchasers, underwriters, managers, dealers, agents or other distributors set
forth in the Purchase Agreement relating to a particular series of Securities to be issued under the Indenture. 
 “Private
Exchange” means an offer by the Company, pursuant to a Registration Rights Agreement, to issue and deliver to certain purchasers, in exchange for the Securities held by such purchasers as part of their initial distribution, a like aggregate
principal amount of Private Exchange Securities. 

 “Private Exchange Securities” means the Securities to be issued pursuant to this Indenture in
connection with a Private Exchange pursuant to a Registration Rights Agreement in exchange for Securities of the same series with interest payable on such Private Exchange Securities accruing from the last date on which interest was paid on the
Securities for which they were exchanged or, if no such interest has been paid, from the date of issuance of the Securities pursuant to this Indenture. 
 “Purchase Agreement” means a purchase, underwriting, subscription or agency agreement among the Company and the Initial Purchasers in respect of the sale and distribution of the Securities of a series.

 “QIB” means a “qualified institutional buyer” as defined in Rule 144A. 
 “Registered Exchange Offer” means an offer by the Company, pursuant to a Registration Rights Agreement, to certain Holders of Securities,
to issue and deliver to such Holders, in exchange for their Securities, a like aggregate principal amount of Exchange Securities registered under the Securities Act. 
 “Registration Rights Agreement” means an agreement among the Company and the Initial Purchasers relating to an offer by the Company to Holders of Securities to exchange such Securities for Exchange
Securities or Private Exchange Securities. 
 “Regulation S” means Regulation S under the Securities Act. 
 “Regulation S Securities” means all Securities offered and sold outside the United States in reliance on Regulation S. 
 “Restricted Period”, with respect to any Securities, means the period of 40 consecutive days beginning on and including the later of
(i) the day on which such Securities are first offered to persons other than distributors (as defined in Regulation S under the Securities Act) in reliance on Regulation S and (ii) the date on which the closing of the offering thereof
occurs. 
 “Restricted Securities Legend” means the legend set forth under that caption in Exhibit A-1 to this Indenture.

 “Rule 501” means Rule 501(a)(1), (2), (3) or (7) under the Securities Act. 
 “Rule 144A” means Rule 144A under the Securities Act. 
 “Rule 144A Securities” means all Securities offered and sold to QIBs in reliance on Rule 144A. 
 “Securities Custodian” means the custodian with respect to a Global Security (as appointed by the Depositary) or any successor person thereto, which shall initially be the Trustee. 
  

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 “Shelf Registration Statement” means a registration statement filed by the Company in
connection with the offer and sale of Securities pursuant to a Registration Rights Agreement. 
 “Transfer Restricted Securities”
means Definitive Securities and any other Securities that bear or are required to bear the Restricted Securities Legend. 
 1.2 Other
Definitions 
  

				
	 Term:
	  	Defined in Section:	 
	 “Agent Members”
	  	2.1	(b) 
		
	 “Global Security”
	  	2.1	(a) 
		
	 “Regulation S Global Security”
	  	2.1	(a) 
		
	 “Rule 144A Global Security”
	  	2.1	(a) 

 2. The Securities 
 2.1 Form and Dating 
 Securities sold
pursuant to a Purchase Agreement by the Company to Initial Purchasers will be resold, initially only to (A) QIBs in reliance on Rule 144A and (B) Persons other than U.S. Persons (as defined in Regulation S) in reliance on Regulation
S. Such Securities and any other Securities issued hereunder may thereafter be transferred to any Person, but subject to the restrictions on transfers set forth therein and herein. 
 (a) Global Securities. Each of the Rule 144A Securities and the Regulation S Securities shall be issued initially in the form
of one or more permanent Global Securities (collectively, with respect to any series, the “Rule 144A Global Security” and the “Regulation S Global Security”, respectively) in definitive, fully registered form, in each case
without interest coupons and bearing the Global Securities Legend and Restricted Securities Legend, which shall be deposited with the Trustee, at its New York office, as Securities Custodian (or with such other custodian as the Depositary may
direct), and registered in the name of the Depositary or a nominee of the Depositary. The aggregate principal amount of the Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee and the
Depositary or its nominee as hereinafter provided. 
 (b) Book-Entry Provisions. 
 Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this Indenture with respect to any Global Security
held on their behalf by the Depositary or by the Trustee as Securities Custodian or under such Global 

  

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Security, and the Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such Global
Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or impair, as between the Depositary and its Agent Members, the operation of customary practices of such Depositary governing the exercise of the rights of a holder of a beneficial interest in any Global Security.

 (c) Definitive Securities. Except as provided in Section 204, Section 2.3 or this Section 2.1 or as
otherwise provided in the Indenture, owners of beneficial interests in Global Securities will not be entitled to receive physical delivery of certificated Securities. 
 2.2 Exchange Securities and Private Exchange Securities. Exchange Securities shall be issued hereunder only in a Registered Exchange Offer and Private Exchange Securities shall be issued hereunder only in
a Private Exchange, in each case, pursuant to a Registration Rights Agreement and for a like principal amount of Securities exchanged pursuant thereto. All Private Exchange Securities and Exchange Securities shall be deemed to be part of and
constitute a single series consisting of such Exchange Securities or Private Exchange Securities and the Securities for which such Exchange Securities or Private Exchange Securities were exchangeable and, without limiting the generality of the
foregoing, such Exchange Securities, Private Exchange Securities and Securities shall vote together as one series of Securities under this Indenture. 
 2.3 Transfer and Exchange. (a) Transfer and Exchange of Definitive Securities. When Definitive Securities are presented to the Security Registrar with a request: 
 (x) to register the transfer of such Definitive Securities; or 
 (y) to exchange such Definitive Securities for an equal principal amount of Definitive Securities of other authorized denominations,

 the Security Registrar shall register the transfer or make the exchange as requested if its reasonable requirements for such transaction are met;
provided, however, that the Definitive Securities surrendered for registration of transfer or exchange: 
 (i) shall be duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Company and the Security Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing;
and 
 (ii) are being transferred or exchanged pursuant to an effective registration statement under the Securities Act,
pursuant to Section 2.3(b) or pursuant to clause (A), (B) or (C) below, and are accompanied by the following additional information and documents, as applicable: 
  

 4 

 (A) if such Definitive Securities are being delivered to the Security Registrar by
a Holder for registration in the name of such Holder, without transfer, a certification from such Holder to that effect (in the form set forth on the reverse of the Security); or 
 (B) if such Definitive Securities are being transferred to the Company, a certification to that effect (in the form set forth on the
reverse of the Security); or 
 (C) if such Definitive Securities are being transferred pursuant to an exemption from
registration in accordance with Rule 144 or in reliance on another exemption from the registration requirements of the Securities Act, (i) a certification to that effect (in the form set forth on the reverse of the Security) and
(ii) if the Company or Security Registrar so requests, an opinion of counsel or other evidence reasonably satisfactory to it as to the compliance with the restrictions set forth in the legend set forth in Section 2.3(e)(i). 
 (b) Restrictions on Transfer of a Definitive Security for a Beneficial Interest in a Global Security. A Definitive Security
may not be exchanged for a beneficial interest in a Global Security except upon satisfaction of the requirements set forth below. Upon receipt by the Trustee of a Definitive Security, duly endorsed or accompanied by appropriate instruments of
transfer in form satisfactory to the Trustee, together with: 
 (i) certification (in the form set forth on the reverse
of the Security) that such Definitive Security is being transferred (A) to a QIB in accordance with Rule 144A or (B) outside the United States in an offshore transaction within the meaning of Regulation S and in compliance with
Rule 904 under the Securities Act; and 
 (ii) written instructions directing the Trustee to make, or to direct the
Securities Custodian to make, an adjustment on its books and records with respect to such Global Security to reflect an increase in the aggregate principal amount of the Securities represented by the Global Security, such instructions to contain
information regarding the Depositary account to be credited with such increase, 
 then the Trustee shall cancel such Definitive Security and cause, or
direct the Securities Custodian to cause, in accordance with the standing instructions and procedures existing between the Depositary and the Securities Custodian, the aggregate principal amount of Securities represented by the Global Security to be
increased by the aggregate principal amount of the Definitive Security to be exchanged and shall credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Global Security equal to the
principal amount of the Definitive Security so cancelled. If no Global Securities are then outstanding and the Global Security has not been previously exchanged for individual securities pursuant to Section 204, the Company shall issue and

  

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the Trustee shall authenticate, upon Company Order, a new Global Security in the appropriate principal amount. 
 (c) Transfer and Exchange of Global Securities.  
 (i) The transfer and exchange of Global Securities or beneficial interests therein shall be effected through the Depositary, in
accordance with this Indenture (including applicable restrictions on transfer set forth herein, if any) and the procedures of the Depositary therefor. A transferor of a beneficial interest in a Global Security shall deliver a written order given in
accordance with the Depositary’s procedures containing information regarding the participant account of the Depositary to be credited with a beneficial interest in the Global Security and such account shall be credited in accordance with such
order with a beneficial interest in the Global Security and the account of the Person making the transfer shall be debited by an amount equal to the beneficial interest in the Global Security being transferred. Transfers by an owner of a beneficial
interest in the Rule 144A Global Security to a transferee who takes delivery of such interest through the Regulation S Global Security, whether before or after the expiration of the Restricted Period, shall be made only upon receipt by the Trustee
of a certification from the transferor to the effect that such transfer is being made in accordance with Regulation S or (if available) Rule 144 under the Securities Act. 
 (ii) If the proposed transfer is a transfer of a beneficial interest in one Global Security to a beneficial interest in another
Global Security, the Security Registrar shall reflect on its books and records the date and an increase in the principal amount of the Global Security to which such interest is being transferred in an amount equal to the principal amount of the
interest to be so transferred, and the Security Registrar shall reflect on its books and records the date and a corresponding decrease in the principal amount of Global Security from which such interest is being transferred. 
 (iii) Notwithstanding any other provisions of this Appendix (other than the provisions set forth in Section 204), a Global
Security may not be transferred as a whole except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary. 
 (iv) In the event that a Global Security is exchanged for
Securities in definitive registered form pursuant to Section 204, prior to the consummation of a Registered Exchange Offer or the sale of a Security pursuant to an effective Shelf Registration Statement with respect to such Securities, such
Securities may be transferred or exchanged only in accordance with such procedures as are substantially consistent with the provisions of this Section 2.3 (including the certification requirements set forth on the reverse of the Securities
intended to ensure that such transfers comply with Rule 144A, Regulation S or such other applicable exemption from registration under the Securities Act, as the case may 

  

 6 

 
be) and such other reasonable procedures as may from time to time be adopted by the Company. 
 (d) Restrictions on Transfer of Regulation S Global Security. (i) During the Restricted Period, beneficial ownership
interests in the Regulation S Global Security may only be sold, pledged or transferred in accordance with the Applicable Procedures and only (A) to the Company, (B) so long as such security is eligible for resale pursuant to
Rule 144A, to a person whom the transferor reasonably believes is a QIB that purchases for its own account or for the account of a QIB to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A,
(C) in an offshore transaction in accordance with Regulation S, (D) pursuant to an exemption from registration under the Securities Act provided by Rule 144 (if applicable) under the Securities Act or (E) pursuant to an
effective registration statement under the Securities Act, in each case in accordance with any applicable securities laws of any state of the United States. Prior to the expiration of the Restricted Period, transfers by an owner of a beneficial
interest in the Regulation S Global Security to a transferee who takes delivery of such interest through the Rule 144A Global Security shall be made only in accordance with Applicable Procedures and upon receipt by the Trustee of a written
certification from the transferor of the beneficial interest in the form provided on the reverse of the Security to the effect that such transfer is being made to a person whom the transferor reasonably believes is a QIB within the meaning of Rule
144A in a transaction meeting the requirements of Rule 144A. Such written certification shall no longer be required after the expiration of the Restricted Period. 
 (ii) Upon the expiration of the Restricted Period, beneficial ownership interests in the Regulation S Global Security shall be
transferable in accordance with applicable law and the other terms of this Indenture. 
 (e) Legend. 

(i) Except as permitted by the following paragraphs (ii), (iii), (iv), (vi) or (vii), each Security certificate
evidencing the Global Securities and the Definitive Securities (and all Securities issued in exchange therefor or in substitution thereof) shall bear a Restricted Securities Legend. Each Definitive Security will also bear the following additional
legend: 
 “IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE COMPANY, THE SECURITY REGISTRAR AND TRANSFER AGENT SUCH
CERTIFICATES AND OTHER INFORMATION AS THE COMPANY MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.” 
 (ii) Upon any sale or transfer pursuant to Rule 144 of a Transfer Restricted Security that is a Definitive Security, the Security Registrar shall, at the written direction of the Company, permit the Holder
thereof to exchange such Transfer Restricted Security for a Definitive Security that does not bear the 

  

 7 

 
legends set forth above and rescind any restriction on the transfer of such Transfer Restricted Security if the Holder certifies in writing to the Company
that its request for such exchange was made in reliance on Rule 144 (such certification to be in the form set forth on the reverse of the Security). 
 (iii) After a transfer of any Securities pursuant to an effective Shelf Registration Statement with respect to such Securities, all requirements pertaining to the Restricted Securities Legend on such Securities
will cease to apply, and a Global Security without the Restricted Securities Legend will be available to the transferee of the beneficial interests in such Securities. Upon the occurrence of any of the circumstances described in this paragraph, the
Company will deliver an Officers’ Certificate to the Trustee instructing the Trustee to issue Securities without legends. 
 (iv) Upon the consummation of a Registered Exchange Offer with respect to any Securities pursuant to which certain Holders of such Securities are offered Exchange Securities (other than Private Exchange Securities) in exchange for
their Securities, Exchange Securities (other than Private Exchange Securities) in global form without the Restricted Securities Legend will be available to Holders that exchange such Securities in such Registered Exchange Offer. Upon the occurrence
of any of the circumstances described in this paragraph, the Company will deliver an Officers’ Certificate to the Trustee instructing the Trustee to issue Securities without the Restricted Securities Legend. 
 (v) Upon the consummation of a Private Exchange with respect to the Securities pursuant to which Holders of such Securities are
offered Private Exchange Securities in exchange for their Securities, Private Exchange Securities in global form with the Restricted Securities Legend shall be available to Holders that exchange such Securities in such Private Exchange. 

(vi) Upon a sale or transfer after the expiration of the Restricted Period of any Security acquired pursuant to Regulation S, all
requirements that such Security bear the Restricted Securities Legend shall cease to apply and a Security in global form without the Restricted Securities Legend may be issued to the transferee of such Security. 
 (vii) Any Securities sold in a registered offering shall not be required to bear the Restricted Securities Legend. 
  

 8 

 EXHIBIT A-1 
 [FORM OF FACE OF INITIAL SECURITY] 
 [Global Securities Legend] 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW
YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT
NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF. 
 [Restricted Securities Legend] 
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT, OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS NOTE NOR ANY INTEREST
OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF
THIS NOTE, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED NOTES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION
DATE”) THAT IS [IN THE CASE OF RULE 144A NOTES: ONE YEAR] [IN THE CASE OF REGULATION S NOTES: 40 DAYS] AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS
NOTE (OR ANY PREDECESSOR OF SUCH NOTE), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE
144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER 

 
THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR
OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 
 [Definitive Securities Legend] 
 IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE SECURITY
REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 
  

 2 

 CELULOSA ARAUCO Y CONSTITUCION S.A. 
 7.25% Notes due 2019 
  

			
		 	U.S.$[—]
		
	No. -[—]	 	CUSIP [—]

 CELULOSA ARAUCO Y CONSTITUCION S.A., a corporation (“sociedad anónima”)
duly organized and existing under the laws of the Republic of Chile (herein called the “Company”, which term includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to 
 Cede & Co. 
 or registered assigns, the principal
sum as set forth on the Schedule of Increases or Decreases annexed hereto at the office or agency of the Company in The City of New York, on July 29, 2019 by wire transfer of immediately available funds in such coin or currency of the United
States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest on said principal sum semiannually on January 29 and July 29 of each year, commencing on January 29,
2010, at said office or agency, in like coin or currency, at the rate per annum specified in the title hereof, from January 29 or July 29, as the case may be, next preceding the date of this Note to which interest on the Notes has been
paid or duly provided for (unless the date hereof is the date to which interest on the Notes has been paid or duly provided for, in which case from the date of this Note), or, if no interest has been paid on these Notes or duly provided for, from
July 27, 2009 (the “original issue date”), until payment of said principal sum has been made or duly provided for. Notwithstanding the foregoing, other than in the case of interest due on January 29, 2010, if the date hereof is
after the January 15 or July 15 and before the next succeeding January 29 or July 29, this Note shall bear interest from such January 29 or July 29, as the case may be; provided, however, that if the
Company shall default in the payment of interest due on such January 29 or July 29, then this Note shall bear interest from the next preceding January 29 or July 29 to which interest on the Notes has been paid or duly provided
for, or, if no interest has been paid on the Notes or duly provided for, from the original issue date. The interest so payable, and punctually paid or duly provided for, on any January 29 or July 29 will, except as provided in the
Indenture referred to on the reverse hereof, be paid by wire transfer of immediately available funds to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the next preceding
January 15 or July 15, as the case may be (herein called the “Regular Record Date”), whether or not a Business Day, or may, at the option of the Company, unless this Note is a Global Security, be paid by wire transfers to the
account specified by the Trustee. Any such interest which is payable, but is not so punctually paid or duly provided for, shall forthwith cease to be payable to the registered Holder on such Regular Record Date and may be paid either to the Person
in whose name this Note (or one or more Predecessor 

  

 1 

 
Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Notes not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be
listed and upon such notice as may be required by such exchange, if such manner of payment shall be deemed practical by the Trustee, all as more fully provided in said Indenture. Notwithstanding the foregoing, in the case of interest payable at
Stated Maturity, such interest shall be paid to the same Person to whom the principal hereof is payable. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 
 Special Interest. The Holder of this Security is entitled to the benefits of the Registration Rights Agreement dated July 27, 2009, between
the Company and the representative of the several Initial Purchasers (the “Registration Agreement”). Capitalized terms used in this paragraph but not defined herein have the meanings assigned to them in the Registration Agreement. In
the event that (i) neither the Exchange Offer Registration Statement nor the Shelf Registration Statement has been filed (or confidentially submitted) with the Commission on or prior to the 180th day following the original issue date,
(ii) the Exchange Offer Registration Statement has not been declared effective on or prior to the 240th day following the original issue date, (iii) neither the Registered Exchange Offer has been consummated nor the Shelf Registration
Statement has been declared effective on or prior to the 270th day following the original issue date, or (iv) after either the Exchange Offer Registration Statement or the Shelf Registration Statement has been declared effective, such
Registration Statement thereafter ceases to be effective or usable in connection with resales of the Securities at any time that the Company is obligated to maintain the effectiveness thereof pursuant to the Registration Agreement (each such event
referred to in clauses (i) through (iv) above being referred to herein as a “Registration Default”), additional interest (the “Special Interest”) shall accrue on the principal amount of Securities affected by such
Registration Default (in addition to stated interest on the Securities) from and including the date on which any such Registration Default shall occur to but excluding the date on which all Registration Defaults have been cured, at a rate equal to
0.25% per annum of the principal amount of the Securities during the 90-day period immediately following the occurrence of such Registration Default and shall increase by 0.25% per annum at the end of each subsequent 90-day period, but in
no event shall such rate exceed 0.75% per annum. The Special Interest will be payable in cash semiannually in arrears each January 29 or July 29 and otherwise on the terms set forth above with respect to payments of other interest
owed under the terms hereof. References to interest in this Note and in the Indenture shall be deemed to include references to Special Interest where applicable. 
 All payments of or in respect of principal, interest and premium, if any, on or with respect to this Note and all payments to the Trustee under Section 607 of the Indenture shall be made free and clear of, and
without withholding or deduction for or on account of, any present or future taxes, penalties, fines, duties, assessments or other governmental charges of whatever nature (or interest on any of the foregoing) imposed, levied, collected, withheld or
assessed (“Taxes”) by, within or on behalf of the Republic of Chile or any political subdivision or governmental authority thereof or therein having 

  

 2 

 
power to tax (“Taxing Authority”), unless such withholding or deduction is required by law. If the Company is required to make any withholding or
deduction described in the preceding sentence with respect to any payment made in respect of the Notes, the Company will pay such additional amounts (“Additional Amounts”) as may be necessary to ensure that the net amounts received by the
Holders hereof (including Additional Amounts) or the Trustee, as the case may be, after such withholding or deduction shall equal the respective amounts of principal, interest and premium, if any, that would have been receivable in respect of this
Note in the case of the Holder, or pursuant to Section 607 of the Indenture, in the case of the Trustee, in the absence of such withholding or deduction, except that no such Additional Amounts shall be payable in respect of this Note
(i) in the case of payments for which presentation of this Note is required, if this Note is presented for payment more than 30 days after the later of (x) the date on which such payment first became due and (y) if the full amount
payable has not been received in the Place of Payment by the Trustee on or prior to such due date, the date on which, the full amount having been so received, notice to that effect shall have been given to the Holders of the Notes by the Trustee,
except to the extent that the Holders would have been entitled to such Additional Amounts on presenting this Note for payment on the last day of the applicable 30-day period; (ii) for any estate, inheritance, gift, sales, transfer, excise,
personal property or similar tax, duty, fine, assessment or other governmental charge; (iii) if held by or on behalf of a Holder or beneficial owner who is liable for taxes, duties, fines, penalties, assessments or other governmental charges in
respect of this Note by reason of having some present or former, direct or indirect, connection with a Taxing Authority (including, without limitation, being a citizen of, being incorporated or engaged in a trade or business in, or having a
residence or principal place of business or other presence in a Taxing Authority), other than the mere holding of this Note or the receipt of principal, interest or premium, if any, in respect thereof; (iv) to the extent the Chilean tax giving
rise to such Additional Amounts would not have been imposed (or would have been reduced) but for the failure of a Holder or beneficial owner of such Note to provide any applicable certification, documentation, information or other reporting
requirement concerning the nationality, residence, identity or connection with Chile or to make other similar claim or exemption to the relevant Taxing Authority, if, after having been requested in writing by the Company to provide such applicable
certification, documentation or information or to make such a claim, such Holder or beneficial owner fails to do so within 30 days; (v) for any taxes, duties, fines, penalties, assessments or other governmental charges which are payable other
than by deduction or withholding from payments of principal of or interest on such Note or by direct payment by the Company in respect of claims made against the Company, as the case may be; (vi) any withholding or deduction imposed on a
payment to an individual and that is required to be made pursuant to any law implementing or complying with, or introduced in order to conform to, any European Union Directive on the taxation of savings; (vii) any tax, assessment or other
governmental charge which would have been avoided by a Holder presenting the relevant note (if presentation is required) or requesting that such payment be made to another Paying Agent in a member state of the European Union; or (viii) any
combination of (i), (ii), (iii), (iv), (v), (vi) or (vii). In addition, no Additional Amounts shall be paid with respect to any payment to any Holder who is a fiduciary or a partnership or other than the sole beneficial owner of this Note to

  

 3 

 
the extent that the beneficiary or settlor with respect to such fiduciary, the member of such partnership or the beneficial owner of this Note would not have
been entitled to Additional Amounts had such beneficiary, settlor, member or beneficial owner held this Note directly. All references hereunder to principal, interest and other amounts payable hereunder shall be deemed to include references to any
Additional Amounts payable as set forth herein. 
 Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of
authentication hereon has been manually executed by or on behalf of the Trustee under the Indenture, this Note shall not be entitled to any benefits under the Indenture, or be valid or obligatory for any purpose. 
  

 4 

 IN WITNESS WHEREOF, Celulosa Arauco y Constitución S.A. has caused this Note to be duly executed.

 Dated: July 27, 2009 
  

					
	CELULOSA ARAUCO Y CONSTITUCIÓN S.A.
			
		 	by	 	 
		 		 	 Name:
 Title:

			
		 	by	 	 
		 		 	 Name:
 Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
  

					
	 THE BANK OF NEW YORK MELLON,
 AS TRUSTEE,

			
		 	by	 	 
		 		 	Authorized Signatory

 [FORM OF REVERSE SIDE OF INITIAL SECURITY] 
 This Note is one of the duly authorized issue of notes, debentures, bonds or other evidences of indebtedness (hereinafter called the
“Securities”) of the Company, of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture dated as of July 27, 2009 (herein called the “Indenture”), duly executed and delivered by the
Company and THE BANK OF NEW YORK MELLON, as Trustee (herein called the “Trustee”), to which Indenture and any other indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights,
obligations, duties and immunities thereunder of the Trustee and any agent of the Trustee, any Paying Agent, any Security Registrar, the Company and the Holders of the Securities and the terms upon which the Securities are issued and are to be
authenticated and delivered. 
 The Securities may be issued in one or more series, which different series may be issued in various aggregate
principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), may be subject to different sinking, purchase or analogous funds (if any), may be subject to
different covenants and Events of Default and may otherwise vary as provided or permitted in the Indenture. This Note is one of the series of Securities of the Company issued pursuant to the Indenture and designated as 7.25% Notes due 2019 (herein
called the “Notes”), initially issued in the aggregate principal amount of U.S.$500,000,000. Pursuant to the terms of Section 301 of the Indenture, additional Notes of this series may be issued from time to time. 
 The Company may redeem the Notes in whole or in part, at the Company’s option, at any time and from time to time on any date prior to maturity, upon
giving notice of such redemption not less than 30 nor more than 60 days prior to the Redemption Date, at a redemption price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) the sum of the
present values of the Remaining Scheduled Payments discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points, together with, in each case,
accrued and unpaid interest on the principal amount of the Notes to be redeemed to the Redemption Date. In connection with such optional redemption the following defined terms shall apply: 
 “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity (computed
as of the third business day immediately preceding that Redemption Date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price
for that Redemption Date; 
 “Comparable Treasury Issue” means the United States Treasury security selected by the Independent
Investment Banker that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new 

 
issues of corporate debt securities of comparable maturity to the remaining term of the Notes. 
 “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company to act as the “Independent Investment
Banker”; 
 “Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the third business day preceding that Redemption Date, as set forth in the daily statistical release designated H.15 (519) (or any
successor release) published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (ii) if such release (or any successor release) is not published or does not
contain such prices on such business day, (A) the average of the Reference Treasury Dealer Quotations for that Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if the Independent
Investment Banker for the Notes obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Quotations; 
 “Reference Treasury Dealer” means each of J.P. Morgan Securities Inc. and three other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Company, provided,
however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute therefore another nationally recognized investment
banking firm that is a Primary Treasury Dealer; 
 “Reference Treasury Dealer Quotation” means, with respect to each Reference
Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in
writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third business day preceding that Redemption Date; and 
 “Remaining Scheduled Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and
interest thereon that would be due after the related Redemption Date but for such redemption, provided, however, that, if that Redemption Date is not an interest payment date with respect to such Notes, the amount of the next
succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to that Redemption Date. 
  

 2 

 If as a result of any change in or amendment to the laws or treaties (or any rules or regulations
thereunder) of a Taxing Authority, or any amendment to or change in an official interpretation, administration or application of such laws, treaties, rules, or regulations (including a holding by a court of competent jurisdiction), which change or
amendment becomes effective or, in the case of a change in official position, is announced on or after the issue date of the Securities or on or after the date a successor assumes the obligations under the Securities, the Company has or will become
obligated to pay any Additional Amounts in excess of the Additional Amounts the Company would be obligated to pay if payments were subject to withholding or deduction at a rate of 4% (the “Minimum Withholding Level”), the Company may, at
its option, redeem all, but not less than all, of the Securities of any series, at the Redemption Price, together with any accrued interest to the Redemption Date, upon publication of irrevocable notice not less than 30 days nor more than 90 days
prior to the Redemption Date. No notice of such redemption may be given earlier than 90 days prior to, or later than 90 days after, the earliest date on which the Company would, but for such redemption, be obligated to pay Additional Amounts above
the Minimum Withholding Level, if payment in respect of the Securities were actually due on such date. For the avoidance of doubt, the Company shall not have the right to so redeem the Securities solely because the Company becomes obliged to pay
Additional Amounts that are less than the amounts payable at the Minimum Withholding Level. Notwithstanding the foregoing, the Company shall not have the right to so redeem the Securities unless it determines, in its reasonable business judgment,
that it cannot avoid the obligation to pay the Additional Amounts above the Minimum Withholding Level by the use of reasonable measures available to it; provided, however, that for the avoidance of doubt changing the jurisdiction of
the Company is not a reasonable measure for the purposes of this Section. In the event that the Company elects to so redeem the Securities, it will deliver to the Trustee: (1) an Officers’ Certificate, signed in the name of the Company by
any two of its executive officers or by its attorney in fact in accordance with its bylaws, stating that the Company is entitled to redeem the Securities pursuant to their terms and setting forth a statement of facts showing that the condition or
conditions precedent to the right of the Company to so redeem have occurred or been satisfied; and (2) an Opinion of Counsel, who is reasonably satisfactory to the Trustee, to the effect that the Company has or will become obligated to pay
Additional Amounts above the Minimum Withholding Level as a result of the change or amendment, and that all governmental requirements necessary for the Company to effect the redemption have been complied with. 
 Subject to payment by the Company of a sum sufficient to pay the amount due on redemption, interest on this Note (or portion hereof if this Note is
redeemed in part) shall cease to accrue upon the Redemption Date of this Note (or portion hereof if this Note is redeemed in part). 
 The
Indenture permits, with certain exceptions as therein provided, the Company and the Trustee to enter into supplemental indentures to the Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or modifying in any manner the rights of the Holders of the Securities of each series under the Indenture with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the
time Outstanding of 

  

 3 

 
each series to be affected thereby on behalf of the Holders of all Securities of such series. The Indenture also permits the Holders of a majority in
aggregate principal amount of the Securities at the time Outstanding of each series, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults and
their consequences with respect to such series under the Indenture. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Notes issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note or such other Notes. In addition, subject to certain exceptions set forth in the Indenture, without
the consent of any Holder, the Company and the Trustee may amend the Indenture or the Notes to make changes that do not adversely affect the rights of any Holder. 
 If an Event of Default with respect to the Notes shall occur and be continuing, the principal of all of the Notes may be declared due and payable in the manner, with the effect and subject to the conditions provided
in the Indenture. 
 No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the place, rate and respective times and in the coin or currency herein and in the Indenture prescribed. 
 The Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of this Note and (b) certain restrictive covenants,
upon compliance by the Company with certain conditions set forth therein. 
 The Notes are issuable in fully registered form without coupons
with a minimum denomination of $2,000 and in integral multiples of U.S.$1,000 in excess thereof. Notes may be exchanged for a like aggregate principal amount of Notes of other authorized denominations at the office or agency of the Company in The
City of New York, designated for such purpose and in the manner and subject to the limitations provided in the Indenture. 
 The Trustee will
be the Paying Agent and the Security Registrar with respect to the Notes. The Company reserves the right at any time to vary or terminate the appointment of any Paying Agent or Security Registrar, to appoint additional or other Paying Agents and
other Security Registrars, which may include the Company, and to approve any change in the office through which any Paying Agent or Security Registrar acts; provided that there will at all times be a Paying Agent in The City of New York
and there will be no more than one Security Registrar for the Notes. 
 Upon due presentment for registration of transfer of this Note at the
office or agency of the Company in Place of Payment designated for such purpose, a new Note or Notes of authorized denominations for a like aggregate principal amount will be issued to the transferee in exchange therefor, subject to the limitations
provided in the Indenture. 
  

 4 

 No charge shall be made for any such transfer or exchange, but the Company and the Trustee may, under
certain circumstances, require payment of a sum sufficient to cover any tax or other governmental charge imposed in connection therewith. 
 The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note is overdue, and none of the Company, the Trustee
or any such agent shall be affected by notice to the contrary. 
 Unless otherwise defined herein, all terms used in this Note that are
defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 This Note shall be governed by and construed in
accordance with the laws of the State of New York. 
  

 5 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to 

(Print or type assignee’s name, address and zip code) 
 (Insert assignee’s soc. sec. or tax I.D. No.) 
 and irrevocably appoint                          agent to transfer this Security on the
books of the Company. The agent may substitute another to act for him. 
  

	 	

 Date:                                      
   Your
Signature:                                     

  

	 	

 Sign exactly as your name appears on the other side of this
Security. 
 In connection with any transfer of any of the Securities evidenced by this certificate occurring prior to the expiration of the
period referred to in Rule 144 under the Securities Act after which the Securities may be transferred without limitation thereunder, the undersigned confirms that such Securities are being transferred in accordance with its terms: 
 CHECK ONE BOX BELOW 
  

					
	    (1)    	  	 ̈    	  	to the Company; or
			
	    (2)    	  	 ̈    	  	pursuant to an effective registration statement under the Securities Act of 1933; or
			
	    (3)    	  	 ̈    	  	inside the United States to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933) that purchases for its own account or for the account
of a qualified institutional buyer to whom notice is given that such transfer is being made in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act of 1933; or
			
	    (4)    	  	 ̈    	  	outside the United States in an offshore transaction within the meaning of Regulation S under the Securities Act in compliance with Rule 904 under the Securities Act of 1933;
or
			
	    (5)    	  	 ̈    	  	pursuant to another available exemption from registration provided by Rule 144 under the Securities Act of 1933.

  

 1 

 Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities evidenced
by this certificate in the name of any person other than the registered holder thereof; provided, however, that if box (4) or (5) is checked, the Trustee may require, prior to registering any such transfer of the Securities, such legal
opinions, certifications and other information as the Company has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act
of 1933. 
  

	
	
	  
	Your Signature

 Signature Guarantee: 
  

									
					
	Date: 	 	 	 		 	 	 	
	Signature must be guaranteed by a participant in a recognized signature guaranty medallion program or other signature guarantor acceptable to the Trustee	 		 	 Signature of Signature
 Guarantee
	 	

  
  
  
  

 2 

 TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED. 
 The undersigned represents and warrants that it is purchasing this Security for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

									
					
	Dated: 	 	 	 		 	 	 	
	NOTICE: To be executed by an executive officer	 	

  

 3 

 [TO BE ATTACHED TO GLOBAL SECURITIES] 
 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 
 The initial principal amount of
this Global Security is U.S.$[—]. The following increases or decreases in this Global Security have been made: 
  

									
	Date of Exchange	 	Amount of decrease in Principal Amount of this Global Security	 	Amount of increase in Principal Amount of this Global Security	 	Principal amount of this Global Security following such decrease or increase	 	Signature of authorized signatory of Trustee or Securities Custodian

  

 4 

 EXHIBIT A-2 
 [FORM OF FACE OF EXCHANGE SECURITY] 
 [Global Securities Legend] 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW
YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT
NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF. 
 [Restricted Securities Legend] 
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT, OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS NOTE NOR ANY INTEREST
OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF
THIS NOTE, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED NOTES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION
DATE”) THAT IS [IN THE CASE OF RULE 144A NOTES: ONE YEAR] [IN THE CASE OF REGULATION S NOTES: 40 DAYS] AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS
NOTE (OR ANY PREDECESSOR OF SUCH NOTE), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE
144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER 

 
THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR
OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 
 [Definitive Securities Legend] 
 IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE SECURITY
REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 
  

 2 

 CELULOSA ARAUCO Y CONSTITUCION S.A. 
 7.25% Notes due 2009 
 U.S.$[—]

  

			
	No. -[—]	 	CUSIP [—]

 CELULOSA ARAUCO Y CONSTITUCION S.A., a corporation (“sociedad anónima”)
duly organized and existing under the laws of the Republic of Chile (herein called the “Company”, which term includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to 
 Cede & Co. 
 or registered assigns, the principal
sum as set forth on the Schedule of Increases or Decreases annexed hereto at the office or agency of the Company in The City of New York, on July 29, 2019 by wire transfer of immediately available funds in such coin or currency of the United
States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest on said principal sum semiannually on January 29 and July 29 of each year, commencing on January 29,
2010, at said office or agency, in like coin or currency, at the rate per annum specified in the title hereof, from January 29 or July 29, as the case may be, next preceding the date of this Note to which interest on the Notes has been
paid or duly provided for (unless the date hereof is the date to which interest on the Notes has been paid or duly provided for, in which case from the date of this Note), or, if no interest has been paid on these Notes or duly provided for, from
July 27, 2009 (the “original issue date”), until payment of said principal sum has been made or duly provided for. Notwithstanding the foregoing, other than in the case of interest due on January 29, 2010, if the date hereof is
after the January 15 or July 15 and before the next succeeding January 29 or July 29, this Note shall bear interest from such January 29 or July 29, as the case may be; provided, however, that if the
Company shall default in the payment of interest due on such January 29 or July 29, then this Note shall bear interest from the next preceding January 29 or July 29 to which interest on the Notes has been paid or duly provided
for, or, if no interest has been paid on the Notes or duly provided for, from the original issue date. The interest so payable, and punctually paid or duly provided for, on any January 29 or July 29 will, except as provided in the
Indenture referred to on the reverse hereof, be paid by wire transfer of immediately available funds to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the next preceding
June 30 or December 31, as the case may be (herein called the “Regular Record Date”), whether or not a Business Day, or may, at the option of the Company, unless this Note is a Global Security, be paid by wire transfers to the
account specified by the Trustee. Any such interest which is payable, but is not so punctually paid or duly provided for, shall forthwith cease to be payable to the registered Holder on such Regular Record Date and 

  

 1 

 
may be paid either to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record
Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Notes may be listed and upon such notice as may be required by such exchange, if such manner of payment shall be deemed practical by the Trustee, all as more fully provided
in said Indenture. Notwithstanding the foregoing, in the case of interest payable at Stated Maturity, such interest shall be paid to the same Person to whom the principal hereof is payable. Interest shall be computed on the basis of a 360-day year
of twelve 30-day months. 
 All payments of or in respect of principal, interest and premium, if any, on or with respect to this Note and all
payments to the Trustee under Section 607 of the Indenture shall be made free and clear of, and without withholding or deduction for or on account of, any present or future taxes, penalties, fines, duties, assessments or other governmental
charges of whatever nature (or interest on any of the foregoing) imposed, levied, collected, withheld or assessed (“Taxes”) by, within or on behalf of the Republic of Chile or any political subdivision or governmental authority thereof or
therein having power to tax (a “Taxing Authority”), unless such withholding or deduction is required by law. If the Company is required to make any withholding or deduction described in the preceding sentence with respect to any payment
made in respect of the Notes, the Company will pay such additional amounts (“Additional Amounts”) as may be necessary to ensure that the net amounts received by the Holders hereof (including Additional Amounts) or the Trustee, as the case
may be, after such withholding or deduction shall equal the respective amounts of principal, interest and premium, if any, that would have been receivable in respect of this Note in the case of the Holder, or pursuant to Section 607 of the
Indenture, in the case of the Trustee, in the absence of such withholding or deduction, except that no such Additional Amounts shall be payable in respect of this Note (i) in the case of payments for which presentation of this Note is required,
if this Note is presented for payment more than 30 days after the later of (x) the date on which such payment first became due and (y) if the full amount payable has not been received in the City of New York by the Trustee on or prior
to such due date, the date on which, the full amount having been so received, notice to that effect shall have been given to the Holders of the Notes by the Trustee, except to the extent that the Holders would have been entitled to such Additional
Amounts on presenting this Note for payment on the last day of the applicable 30-day period; (ii) for any estate, inheritance, gift, sales, transfer, excise, personal property or similar tax, duty, fine, assessment or other governmental charge;
(iii) if held by or on behalf of a Holder or beneficial owner who is liable for taxes, duties, fines, penalties, assessments or other governmental charges in respect of this Note by reason of having some present or former, direct or indirect,
connection with a Taxing Authority (including, without limitation, being a citizen of, being incorporated or engaged in a trade or business in, or having a residence or principal place of business or other presence in a Taxing Authority), other than
the mere holding of this Note or the receipt of principal, interest or premium, if any, in respect thereof; (iv) to the extent the Chilean tax giving rise to such Additional Amounts would not have been imposed (or would have been reduced) but
for the failure of a Holder or 

  

 2 

 
beneficial owner of such Note to provide any applicable certification, documentation, information or other reporting requirement concerning the nationality,
residence, identity or connection with Chile or to make other similar claim or exemption to the relevant Taxing Authority, if, after having been requested in writing by the Company to provide such applicable certification, documentation or
information or to make such a claim, such Holder or beneficial owner fails to do so within 30 days; (v) for any taxes, duties, fines, penalties, assessments or other governmental charges which are payable other than by deduction or withholding
from payments of principal of or interest on such Note or by direct payment by the Company in respect of claims made against the Company, as the case may be; (vi) any withholding or deduction imposed on a payment to an individual and that is
required to be made pursuant to any law implementing or complying with, or introduced in order to conform to, any European Union Directive on the taxation of savings; (vii) any tax, assessment or other governmental charge which would have been
avoided by a Holder presenting the relevant note (if presentation is required) or requesting that such payment be made to another Paying Agent in a member state of the European Union; or (viii) any combination of (i), (ii), (iii), (iv), (v),
(vi) or (vii). In addition, no Additional Amounts shall be paid with respect to any payment to any Holder who is a fiduciary or a partnership or other than the sole beneficial owner of this Note to the extent that the beneficiary or settlor
with respect to such fiduciary, the member of such partnership or the beneficial owner of this Note would not have been entitled to Additional Amounts had such beneficiary, settlor, member or beneficial owner held this Note directly. All references
hereunder to principal, interest and other amounts payable hereunder shall be deemed to include references to any Additional Amounts payable as set forth herein. 
 [There shall also be payable in respect of this Note all Special Interest that may have accrued on the Note for which this Note was
exchanged (as defined in such Note) pursuant to the Registered Exchange Offer or otherwise pursuant to a registration of such Note, such Special Interest to be payable in accordance with the terms of such Note.]1 
 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been manually executed by or on behalf of the Trustee under the Indenture, this Note shall not be
entitled to any benefits under the Indenture, or be valid or obligatory for any purpose. 
  
  

	1
	 Insert only if applicable. 

  

 3 

 IN WITNESS WHEREOF, Celulosa Arauco y Constitución S.A. has caused this Note to be duly executed.

 Dated: July 27, 2009 
  

			
	 CELULOSA ARAUCO Y
 CONSTITUCIÓN S.A.

		
	 	 	 
	 	 	        by
		
	 	 	 
	 	 	             Name:
             Title:

		
	 	 	 
	 	 	        by
		
	 	 	 
		 	             Name:
             Title:

  

 1 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
  

			
	 THE BANK OF NEW YORK MELLON,
 AS TRUSTEE,

		
	 	 	 
	 	 	        by
		
	 	 	 
		 	            Authorized Signatory

  

 2 

 [FORM OF REVERSE SIDE OF EXCHANGE SECURITY] 
 This Note is one of the duly authorized issue of notes, debentures, bonds or other evidences of indebtedness (hereinafter called the
“Securities”) of the Company, of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture dated as of July 27, 2009 (herein called the “Indenture”), duly executed and delivered by the
Company and THE BANK OF NEW YORK MELLON, as Trustee (herein called the “Trustee”), to which Indenture and any other indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights,
obligations, duties and immunities thereunder of the Trustee and any agent of the Trustee, any Paying Agent, any Security Registrar, the Company and the Holders of the Securities and the terms upon which the Securities are issued and are to be
authenticated and delivered. 
 The Securities may be issued in one or more series, which different series may be issued in various aggregate
principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), may be subject to different sinking, purchase or analogous funds (if any), may be subject to
different covenants and Events of Default and may otherwise vary as provided or permitted in the Indenture. This Note is one of the series of Securities of the Company issued pursuant to the Indenture and designated as 7.25% Notes due 2019 (herein
called the “Notes”), initially issued in the aggregate principal amount of U.S.$500,000,000. Pursuant to the terms of Section 301 of the Indenture, additional Notes of this series may be issued from time to time. 
 The Company may redeem the Notes in whole or in part, at the Company’s option, at any time and from time to time on any date prior to maturity, upon
giving notice of such redemption not less than 30 nor more than 60 days prior to the Redemption Date, at a redemption price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) the sum of the
present values of the Remaining Scheduled Payments discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points, together with, in each case,
accrued and unpaid interest on the principal amount of the Notes to be redeemed to the Redemption Date. In connection with such optional redemption the following defined terms shall apply: 
 “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity (computed
as of the third business day immediately preceding that Redemption Date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price
for that Redemption Date; 
 “Comparable Treasury Issue” means the United States Treasury security selected by the Independent
Investment Banker that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new 

  

 1 

 
issues of corporate debt securities of comparable maturity to the remaining term of the Notes. 
 “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company to act as the “Independent Investment
Banker”; 
 “Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the third business day preceding that Redemption Date, as set forth in the daily statistical release designated H.15 (519) (or any
successor release) published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (ii) if such release (or any successor release) is not published or does not
contain such prices on such business day, (A) the average of the Reference Treasury Dealer Quotations for that Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if the Independent
Investment Banker for the Notes obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Quotations; 
 “Reference Treasury Dealer” means each of J.P. Morgan Securities Inc. and three other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Company, provided,
however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute therefore another nationally recognized investment
banking firm that is a Primary Treasury Dealer; 
 “Reference Treasury Dealer Quotation” means, with respect to each Reference
Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in
writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third business day preceding that Redemption Date; and 
 “Remaining Scheduled Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and
interest thereon that would be due after the related Redemption Date but for such redemption, provided, however, that, if that Redemption Date is not an interest payment date with respect to such Notes, the amount of the next
succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to that Redemption Date. 
 If as a
result of any change in or amendment to the laws or treaties (or any rules or regulations thereunder) of a Taxing Authority, or any amendment to or change in an official interpretation, administration or application of such laws, treaties, rules, or

  

 2 

 
regulations (including a holding by a court of competent jurisdiction), which change or amendment becomes effective or, in the case of a change in official
position, is announced on or after the issue date of the Securities or on or after the date a successor assumes the obligations under the Securities, the Company has or will become obligated to pay any Additional Amounts in excess of the Additional
Amounts the Company would be obligated to pay if payments were subject to withholding or deduction at a rate of 4% (the “Minimum Withholding Level”), the Company may, at its option, redeem all, but not less than all, of the Securities of
any series, at the Redemption Price, together with any accrued interest to the Redemption Date, upon publication of irrevocable notice not less than 30 days nor more than 90 days prior to the Redemption Date. No notice of such redemption may be
given earlier than 90 days prior to, or later than 90 days after, the earliest date on which the Company would, but for such redemption, be obligated to pay Additional Amounts above the Minimum Withholding Level, if payment in respect of the
Securities were actually due on such date. For the avoidance of doubt, the Company shall not have the right to so redeem the Securities solely because the Company becomes obliged to pay Additional Amounts that are less than the amounts payable at
the Minimum Withholding Level. Notwithstanding the foregoing, the Company shall not have the right to so redeem the Securities unless it determines, in its reasonable business judgment, that it cannot avoid the obligation to pay the Additional
Amounts above the Minimum Withholding Level by the use of reasonable measures available to it; provided, however, that for the avoidance of doubt changing the jurisdiction of the Company is not a reasonable measure for the purposes of
this Section. In the event that the Company elects to so redeem the Securities, it will deliver to the Trustee: (1) an Officers’ Certificate, signed in the name of the Company by any two of its executive officers or by its attorney in fact
in accordance with its bylaws, stating that the Company is entitled to redeem the Securities pursuant to their terms and setting forth a statement of facts showing that the condition or conditions precedent to the right of the Company to so redeem
have occurred or been satisfied; and (2) an Opinion of Counsel, who is reasonably satisfactory to the Trustee, to the effect that the Company has or will become obligated to pay Additional Amounts above the Minimum Withholding Level as a result
of the change or amendment, and that all governmental requirements necessary for the Company to effect the redemption have been complied with. 
 Subject to payment by the Company of a sum sufficient to pay the amount due on redemption, interest on this Note (or portion hereof if this Note is redeemed in part) shall cease to accrue upon the Redemption Date of this Note (or portion
hereof if this Note is redeemed in part). 
 The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee
to enter into supplemental indentures to the Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or modifying in any manner the rights of the Holders of the Securities
of each series under the Indenture with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the time Outstanding of each series to be affected thereby on behalf of the Holders of all Securities
of such series. The Indenture also permits the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of each series, on behalf of the Holders of all Securities 

  

 3 

 
of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults and their consequences with respect to
such series under the Indenture. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Notes issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note or such other Notes. In addition, subject to certain exceptions set forth in the Indenture, without the consent of any Holder, the Company
and the Trustee may amend the Indenture or the Notes to make changes that do not adversely affect the rights of any Holder. 
 If an Event of
Default with respect to the Notes shall occur and be continuing, the principal of all of the Notes may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture. 
 No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at the place, rate and respective times and in the coin or currency herein and in the Indenture prescribed. 
 The Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of this Note and (b) certain restrictive covenants,
upon compliance by the Company with certain conditions set forth therein. 
 The Notes are issuable in fully registered form without coupons
with a minimum denomination of $2,000 and in integral multiples of U.S.$1,000 in excess thereof. Notes may be exchanged for a like aggregate principal amount of Notes of other authorized denominations at the office or agency of the Company in The
City of New York, designated for such purpose and in the manner and subject to the limitations provided in the Indenture. 
 The Trustee will
be the Paying Agent and the Security Registrar with respect to the Notes. The Company reserves the right at any time to vary or terminate the appointment of any Paying Agent or Security Registrar, to appoint additional or other Paying Agents and
other Security Registrars, which may include the Company, and to approve any change in the office through which any Paying Agent or Security Registrar acts; provided that there will at all times be a Paying Agent in The City of New York
and there will be no more than one Security Registrar for the Notes. 
 Upon due presentment for registration of transfer of this Note at the
office or agency of the Company in the Place of Payment designated for such purpose, a new Note or Notes of authorized denominations for a like aggregate principal amount will be issued to the transferee in exchange therefor, subject to the
limitations provided in the Indenture. 
 No charge shall be made for any such transfer or exchange, but the Company and the Trustee may,
under certain circumstances, require payment of a sum 

  

 4 

 
sufficient to cover any tax or other governmental charge imposed in connection therewith. 
 The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for
all purposes, whether or not this Note is overdue, and none of the Company, the Trustee or any such agent shall be affected by notice to the contrary. 
 Unless otherwise defined herein, all terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 This Note shall be governed by and construed in accordance with the laws of the State of New York. 
  

 5 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to 

(Print or type assignee’s name, address and zip code) 
 (Insert assignee’s soc. sec. or tax I.D. No.) 
 and irrevocably appoint                          agent to transfer this Security on the
books of the Company. The agent may substitute another to act for him. 
  

	 	

 Date:                                      
   Your
Signature:                                     

  

	 	

 Sign exactly as your name appears on the other side of this
Security. 
 In connection with any transfer of any of the Securities evidenced by this certificate occurring prior to the expiration of the
period referred to in Rule 144 under the Securities Act after which the Securities may be transferred without limitation thereunder, the undersigned confirms that such Securities are being transferred in accordance with its terms: 
 CHECK ONE BOX BELOW 
  

					
	    (1)    	  	     ̈    	  	to the Company; or
			
	    (2)    	  	     ̈    	  	pursuant to an effective registration statement under the Securities Act of 1933; or
			
	    (3)    	  	     ̈    	  	inside the United States to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933) that purchases for its own account or for the account
of a qualified institutional buyer to whom notice is given that such transfer is being made in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act of 1933; or
			
	    (4)    	  	     ̈    	  	outside the United States in an offshore transaction within the meaning of Regulation S under the Securities Act in compliance with Rule 904 under the Securities Act of 1933;
or
			
	    (5)    	  	     ̈    	  	pursuant to another available exemption from registration provided by Rule 144 under the Securities Act of 1933.

 Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any person other than the 

  

 6 

 
registered holder thereof; provided, however, that if box (4) or (5) is checked, the Trustee may require, prior to registering any such transfer of
the Securities, such legal opinions, certifications and other information as the Company has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933. 
  

	
	
	  
	Your Signature

 Signature Guarantee: 
  

									
					
	Date: 	 	 	 		 	 	 	
	Signature must be guaranteed by a participant in a recognized signature guaranty medallion program or other signature guarantor acceptable to the Trustee	 		 	 Signature of Signature
 Guarantee
	 	

  
  
  
  

 7 

 TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED. 
 The undersigned represents and warrants that it is purchasing this Security for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

									
					
	Dated: 	 	 	 		 	 	 	
	NOTICE: To be executed by an executive officer	 	

  

 8 

 [TO BE ATTACHED TO GLOBAL SECURITIES] 
 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 
 The initial principal amount of
this Global Security is U.S.$[—]. The following increases or decreases in this Global Security have been made: 
  

									
	Date of Exchange	 	Amount of decrease in Principal Amount of this Global Security	 	Amount of increase in Principal Amount of this Global Security	 	Principal amount of this Global Security following such decrease or increase	 	Signature of authorized signatory of Trustee or Securities Custodian

  

 9 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	
	ARTICLE One
	
	Definitions and Other Provisions
			
	 SECTION 101.
	  	 Definitions
	  	1
	 SECTION 102.
	  	 Compliance Certificates and Opinions
	  	10
	 SECTION 103.
	  	 Form of Documents Delivered to Trustee
	  	10
	 SECTION 104.
	  	 Acts of Securityholders
	  	11
	 SECTION 105.
	  	 Notices, etc., to Trustee and Company
	  	12
	 SECTION 106.
	  	 Notices to Securityholders; Waiver
	  	13
	 SECTION 107.
	  	 Conflict with Trust Indenture Act
	  	13
	 SECTION 108.
	  	 Effect of Headings and Table of Contents
	  	13
	 SECTION 109.
	  	 Successors and Assigns
	  	13
	 SECTION 110.
	  	 Separability Clause
	  	13
	 SECTION 111.
	  	 Benefits of Indenture
	  	13
	 SECTION 112.
	  	 Governing Law
	  	13
	 SECTION 113.
	  	 Consent to Jurisdiction and Service of Process
	  	14
	 SECTION 114.
	  	 Waiver of Immunity
	  	15
	 SECTION 115.
	  	 Waiver of Jury Trial
	  	15
	 SECTION 116.
	  	 Legal Holidays
	  	15
	 SECTION 117.
	  	 Judgment Currency
	  	15
	 SECTION 118.
	  	 Counterparts
	  	16
	
	 ARTICLE Two

	
	 Security Forms

			
	 SECTION 201.
	  	 Forms Generally
	  	16
	 SECTION 202.
	  	 Forms of Securities
	  	16
	 SECTION 203.
	  	 Form of Trustee’s Certificate of Authentication
	  	17
	 SECTION 204.
	  	 Securities Issuable in the Form of a Global Security
	  	17
	
	 ARTICLE Three

	
	 The Securities

			
	 SECTION 301.
	  	 General Title; General Limitations; Issuable in Series; Terms of Particular Series
	  	20
	 SECTION 302.
	  	 Denominations
	  	22
	 SECTION 303.
	  	 Execution, Authentication and Delivery and Dating
	  	23
	 SECTION 304.
	  	 Temporary Securities
	  	24
	 SECTION 305.
	  	 Registration, Transfer and Exchange
	  	25

  

 i 

					
	 SECTION 306.
	  	 Mutilated, Destroyed, Lost and Stolen Securities
	  	26
	 SECTION 307.
	  	 Payment of Interest; Interest Rights Preserved
	  	27
	 SECTION 308.
	  	 Taxation
	  	28
	 SECTION 309.
	  	 Persons Deemed Owners
	  	30
	 SECTION 310.
	  	 Cancellation
	  	31
	 SECTION 311.
	  	 Computation of Interest
	  	31
	 SECTION 312.
	  	 Medium-Term Securities
	  	31
	
	 ARTICLE Four

	
	 Satisfaction and Discharge

			
	 SECTION 401.
	  	 Satisfaction and Discharge of Indenture
	  	32
	 SECTION 402.
	  	 Application of Trust Money
	  	33
	
	 ARTICLE Five

	
	 Remedies

			
	 SECTION 501.
	  	 Events of Default
	  	33
	 SECTION 502.
	  	 Acceleration of Maturity; Rescission and Annulment
	  	35
	 SECTION 503.
	  	 Collection of Indebtedness and Suits for Enforcement by Trustee
	  	36
	 SECTION 504.
	  	 Trustee May File Proofs of Claim
	  	37
	 SECTION 505.
	  	 Trustee May Enforce Claims Without Possession of Securities
	  	38
	 SECTION 506.
	  	 Application of Money Collected
	  	38
	 SECTION 507.
	  	 Limitation on Suits
	  	38
	 SECTION 508.
	  	 Unconditional Right of Securityholders to Receive Principal, Premium and Interest
	  	39
	 SECTION 509.
	  	 Restoration of Rights and Remedies
	  	39
	 SECTION 510.
	  	 Rights and Remedies Cumulative
	  	39
	 SECTION 511.
	  	 Delay or Omission Not Waiver
	  	40
	 SECTION 512.
	  	 Control by Securityholders
	  	40
	 SECTION 513.
	  	 Waiver of Past Defaults
	  	40
	 SECTION 514.
	  	 Undertaking for Costs
	  	40
	 SECTION 515.
	  	 Waiver of Stay or Extension Laws
	  	41
	
	 ARTICLE Six

	
	 The Trustee

			
	 SECTION 601.
	  	 Certain Duties and Responsibilities
	  	41
	 SECTION 602.
	  	 Notice of Defaults
	  	42
	 SECTION 603.
	  	 Certain Rights of Trustee
	  	43
	 SECTION 604.
	  	 Not Responsible for Recitals or Issuance of Securities
	  	44
	 SECTION 605.
	  	 May Hold Securities
	  	44

  

 ii 

					
	 SECTION 606.
	  	 Money Held in Trust
	  	44
	 SECTION 607.
	  	 Compensation, Reimbursement and Indemnification
	  	45
	 SECTION 608.
	  	 Disqualification; Conflicting Interests
	  	45
	 SECTION 609.
	  	 Corporate Trustee Required; Eligibility
	  	45
	 SECTION 610.
	  	 Resignation and Removal; Appointment of Successor
	  	46
	 SECTION 611.
	  	 Acceptance of Appointment by Successor
	  	47
	 SECTION 612.
	  	 Merger, Conversion, Consolidation or Succession to Business
	  	48
	 SECTION 613.
	  	 Preferential Collection of Claims Against Company
	  	48
	 SECTION 614.
	  	 Appointment of Authenticating Agent
	  	48
	
	 ARTICLE Seven

	
	 Securityholders’ Lists and Reports by

			
	 SECTION 701.
	  	 Company to Furnish Trustee Names and Addresses of Securityholders
	  	50
	 SECTION 702.
	  	 Preservation of Information; Communications to Securityholders
	  	50
	 SECTION 703.
	  	 Reports by Trustee
	  	50
	 SECTION 704.
	  	 Reports by Company
	  	51
	 SECTION 705.
	  	 Delivery of Reports to Trustee
	  	51
	
	 ARTICLE Eight

	
	 Consolidation, Merger, Conveyance or Transfer

			
	 SECTION 801.
	  	 Company May Consolidate, etc., only on Certain Terms
	  	51
	 SECTION 802.
	  	 Successor Corporation Substituted
	  	52
	
	 ARTICLE Nine

	
	 Supplemental Indentures

			
	 SECTION 901.
	  	 Supplemental Indentures Without Consent of Securityholders
	  	52
	 SECTION 902.
	  	 Supplemental Indentures with Consent of Securityholders
	  	53
	 SECTION 903.
	  	 Execution of Supplemental Indentures
	  	54
	 SECTION 904.
	  	 Effect of Supplemental Indentures
	  	54
	 SECTION 905.
	  	 Intentionally Omitted
	  	54
	 SECTION 906.
	  	 Reference in Securities to Supplemental Indentures
	  	55
	
	 ARTICLE Ten

	
	 Covenants

			
	 SECTION 1001.
	  	 Payment of Principal, Premium and Interest
	  	55

  

 iii 

					
	 SECTION 1002.
	  	 Maintenance of Office or Agency
	  	55
	 SECTION 1003.
	  	 Money for Security Payments To Be Held in Trust
	  	55
	 SECTION 1004.
	  	 Statement as to Compliance
	  	57
	 SECTION 1005.
	  	 Corporate Existence
	  	57
	 SECTION 1006.
	  	 Limitation on Liens
	  	57
	 SECTION 1007.
	  	 Limitations on Sale and Leaseback Transactions
	  	59
	 SECTION 1008.
	  	 Maintenance of Properties
	  	59
	 SECTION 1009.
	  	 Maintenance of Insurance
	  	59
	 SECTION 1010.
	  	 Maintenance of Books and Records
	  	60
	 SECTION 1011.
	  	 Further Assurances
	  	60
	 SECTION 1012.
	  	 Waiver of Certain Covenants
	  	60
	
	 ARTICLE Eleven

	
	 Redemption of Securities

			
	 SECTION 1101.
	  	 Applicability of Article
	  	60
	 SECTION 1102.
	  	 Election to Redeem; Notice to Trustee
	  	60
	 SECTION 1103.
	  	 Selection by Trustee of Securities to be Redeemed
	  	61
	 SECTION 1104.
	  	 Notice of Redemption
	  	61
	 SECTION 1105.
	  	 Deposit of Redemption Price
	  	62
	 SECTION 1106.
	  	 Securities Payable on Redemption Date
	  	62
	 SECTION 1107.
	  	 Securities Redeemed in Part
	  	62
	 SECTION 1108.
	  	 Provisions with Respect to any Sinking Funds
	  	63
	 SECTION 1109.
	  	 Optional Redemption in the Event of Change in Tax Treatment
	  	64
	
	 ARTICLE Twelve

	
	 Defeasance and Covenant Defeasance

			
	 SECTION 1201.
	  	 Company’s Option to Effect Defeasance or Covenant Defeasance
	  	65
	 SECTION 1202.
	  	 Defeasance and Discharge
	  	65
	 SECTION 1203.
	  	 Covenant Defeasance
	  	65
	 SECTION 1204.
	  	 Conditions to Defeasance or Covenant Defeasance
	  	66
	 SECTION 1205.
	  	 Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions
	  	67
	 SECTION 1206.
	  	 Reinstatement
	  	68

  

 iv 

 EXHIBIT A-2 
  
  
  
 INDENTURE 
  
 between 
  
 CELULOSA
ARAUCO Y CONSTITUCIÓN S.A, 
  
 as Company 
  
 and 
  

THE BANK OF NEW YORK MELLON 
  
 as Trustee 
  
 Dated as of July 27, 2009

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