Document:

Form of COLT 20 - Indenture

 EXHIBIT 4.3 

 
  

 
 CENTRAL ORIGINATING LEASE
TRUST 
 SECURED NOTES 

COLT 20    -SN   INDENTURE 

DATED AS OF             , 20     

 CENTRAL ORIGINATING LEASE TRUST 

AND 

                    , 

 AS COLT INDENTURE TRUSTEE 
  

 
  

 TABLE OF CONTENTS 

 

					
	 	 	 	  	Page
		
	ARTICLE I         DEFINITIONS AND INCORPORATION BY REFERENCE	  	
			
	 SECTION 1.1
	 	 Definitions; Rules of Construction
	  	3
			
	 SECTION 1.2
	 	 Incorporation by Reference of Trust Indenture Act
	  	3
		
	ARTICLE II         THE SECURED NOTES	  	
			
	 SECTION 2.1
	 	 Form
	  	4
			
	 SECTION 2.2
	 	 Execution, Authentication and Delivery
	  	4
			
	 SECTION 2.3
	 	 Registration; Registration of Transfer and Exchange of COLT 20    -SN   Secured
Notes
	  	5
			
	 SECTION 2.4
	 	 Mutilated, Destroyed, Lost or Stolen COLT 20    -SN   Secured
Notes
	  	7
			
	 SECTION 2.5
	 	 Payment of Principal and Interest
	  	8
			
	 SECTION 2.6
	 	 Persons Deemed Secured Noteholders
	  	9
			
	 SECTION 2.7
	 	 Cancellation of COLT 20    -SN   Secured Notes
	  	9
			
	 SECTION 2.8
	 	 Release of COLT 20    -SN   Trust Estate
	  	10
			
	 SECTION 2.9
	 	 Seller, CARI, the Trust and the CARAT Indenture Trustee as COLT 20    -SN  
Secured Noteholders
	  	10
			
	 SECTION 2.10
	 	 Tax Treatment
	  	10
		
	ARTICLE III         COVENANTS	  	
			
	 SECTION 3.1
	 	 Payment of Principal and Interest and Other Amounts
	  	10
			
	 SECTION 3.2
	 	 Maintenance of Agency Office
	  	10
			
	 SECTION 3.3
	 	 Money for Payments to Be Held in Trust
	  	11
			
	 SECTION 3.4
	 	 Existence
	  	12
			
	 SECTION 3.5
	 	 Protection of COLT 20    -SN   Trust Estate; Acknowledgment of
Pledge
	  	13
			
	 SECTION 3.6
	 	 Opinions as to COLT 20    -SN   Collateral
	  	13
			
	 SECTION 3.7
	 	 Performance of Obligations; Servicing of Series 20    -SN   Lease
Assets
	  	14
			
	 SECTION 3.8
	 	 Negative Covenants
	  	15
			
	 SECTION 3.9
	 	 Annual Statement as to Compliance
	  	16
			
	 SECTION 3.10
	 	 Consolidation, Merger, Etc., of Trust; Disposition of Trust Assets
	  	16
			
	 SECTION 3.11
	 	 Successor or Transferee
	  	18

  

 -i- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	 	 	  	Page
			
	 SECTION 3.12
	 	 No Other Business
	  	18
			
	 SECTION 3.13
	 	 No Borrowing
	  	19
			
	 SECTION 3.14
	 	 Guarantees, Loans, Advances and Other Liabilities
	  	19
			
	 SECTION 3.15
	 	 Servicer’s Obligations
	  	19
			
	 SECTION 3.16
	 	 Capital Expenditures
	  	19
			
	 SECTION 3.17
	 	 Restricted Payments
	  	19
			
	 SECTION 3.18
	 	 Notice of Events of Default
	  	20
			
	 SECTION 3.19
	 	 Further Instruments and Acts
	  	20
			
	 SECTION 3.20
	 	 COLT Indenture Trustee’s Release of Lien on Administrative Lease Assets and Warranty
Lease
 Assets and Sale or Other Distribution of the Related Vehicles
	  	20
			
	 SECTION 3.21
	 	 Representations and Warranties by COLT to the COLT Indenture Trustee
	  	21
			
	 SECTION 3.22
	 	 Maintenance of Separate Records for Each Series
	  	21
		
	ARTICLE IV         SATISFACTION AND DISCHARGE	  	
			
	 SECTION 4.1
	 	 Satisfaction and Discharge of COLT Indenture
	  	21
			
	 SECTION 4.2
	 	 Application of Trust Money
	  	23
			
	 SECTION 4.3
	 	 Repayment of Monies Held by Paying Agent
	  	23
			
	 SECTION 4.4
	 	 Duration of Position of COLT Indenture Trustee
	  	23
		
	ARTICLE V         DEFAULT AND REMEDIES	  	
			
	 SECTION 5.1
	 	 Events of Default
	  	23
			
	 SECTION 5.2
	 	 Acceleration of Maturity; Rescission and Annulment
	  	24
			
	 SECTION 5.3
	 	 Collection of Indebtedness and Suits for Enforcement by COLT Indenture Trustee
	  	25
			
	 SECTION 5.4
	 	 Remedies; Priorities
	  	27
			
	 SECTION 5.5
	 	 Optional Preservation of the Series 20    -SN   Lease Assets
	  	29
			
	 SECTION 5.6
	 	 Limitation of Suits
	  	29
			
	 SECTION 5.7
	 	 Unconditional Rights of the COLT 20    -SN   Secured Noteholders to Receive
Principal and Interest
	  	30
			
	 SECTION 5.8
	 	 Restoration of Rights and Remedies
	  	31
			
	 SECTION 5.9
	 	 Rights and Remedies Cumulative
	  	31
			
	 SECTION 5.10
	 	 Delay or Omission, Not a Waiver
	  	31

  

 -ii- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	 	 	  	Page
			
	 SECTION 5.11
	 	 Control by the COLT 20    -SN   Secured Noteholders
	  	31
			
	 SECTION 5.12
	 	 Waiver of Past Defaults
	  	32
			
	 SECTION 5.13
	 	 Undertaking for Costs
	  	32
			
	 SECTION 5.14
	 	 Waiver of Stay or Extension Laws
	  	33
			
	 SECTION 5.15
	 	 Action on COLT 20    -SN   Secured Notes
	  	33
			
	 SECTION 5.16
	 	 Performance and Enforcement of Certain Obligations
	  	33
		
	ARTICLE VI         THE COLT INDENTURE TRUSTEE	  	
			
	 SECTION 6.1
	 	 Duties of COLT Indenture Trustee
	  	34
			
	 SECTION 6.2
	 	 Rights of COLT Indenture Trustee
	  	35
			
	 SECTION 6.3
	 	 COLT Indenture Trustee May Own COLT 20    -SN   Secured Notes
	  	36
			
	 SECTION 6.4
	 	 COLT Indenture Trustee’s Disclaimer
	  	36
			
	 SECTION 6.5
	 	 Notice of Default
	  	36
			
	 SECTION 6.6
	 	 Reports by COLT Indenture Trustee
	  	37
			
	 SECTION 6.7
	 	 Compensation; Indemnity
	  	37
			
	 SECTION 6.8
	 	 Replacement of COLT Indenture Trustee
	  	38
			
	 SECTION 6.9
	 	 Merger or Consolidation of COLT Indenture Trustee
	  	39
			
	 SECTION 6.10
	 	 Appointment of Co-COLT Indenture Trustee or Separate COLT Indenture Trustee
	  	39
			
	 SECTION 6.11
	 	 Eligibility; Disqualification
	  	41
			
	 SECTION 6.12
	 	 Preferential Collection of Claims Against COLT
	  	41
			
	 SECTION 6.13
	 	 Representations and Warranties of COLT Indenture Trustee
	  	41
			
	 SECTION 6.14
	 	 COLT Indenture Trustee May Enforce Claims Without Possession of COLT
20    -SN   Secured
 Notes
	  	42
			
	 SECTION 6.15
	 	 Suit for Enforcement
	  	42
			
	 SECTION 6.16
	 	 Rights of COLT 20    -SN   Secured Noteholders to Direct COLT Indenture Trustee

	  	42
		
	ARTICLE VII         COLT 20    -SN   SECURED NOTEHOLDERS’ LISTS AND
REPORTS	  	
			
	 SECTION 7.1
	 	 COLT to Furnish COLT Indenture Trustee Names and Addresses of COLT
20    -SN   Secured
 Noteholders
	  	43

  

 -iii- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	 	 	  	Page
			
	 SECTION 7.2
	 	 Preservation of Information, Communications to COLT 20    -SN   Secured
Noteholders
	  	43
			
	 SECTION 7.3
	 	 Reports by COLT
	  	43
			
	 SECTION 7.4
	 	 Reports by Trustee
	  	44
		
	ARTICLE VIII         ACCOUNTS, DISBURSEMENTS AND RELEASES	  	
			
	 SECTION 8.1
	 	 Collection of Money
	  	44
			
	 SECTION 8.2
	 	 Designated Accounts; Allocations; Payments
	  	44
			
	 SECTION 8.3
	 	 General Provisions Regarding Designated Accounts
	  	45
			
	 SECTION 8.4
	 	 Release of the COLT 20    -SN   Trust Estate
	  	46
			
	 SECTION 8.5
	 	 Opinion of Counsel
	  	46
		
	ARTICLE IX         SUPPLEMENTAL INDENTURES	  	
			
	 SECTION 9.1
	 	 Supplemental Indentures Without Consent of COLT 20    -SN   Secured Noteholders

	  	46
			
	 SECTION 9.2
	 	 Supplemental Indentures with Consent of COLT 20    -SN   Secured
Noteholders
	  	48
			
	 SECTION 9.3
	 	 Execution of Supplemental Indentures
	  	49
			
	 SECTION 9.4
	 	 Effect of Supplemental Indenture
	  	49
			
	 SECTION 9.5
	 	 Conformity with Trust Indenture Act
	  	50
			
	 SECTION 9.6
	 	 Reference in COLT 20    -SN   Secured Notes to Supplemental
Indentures
	  	50
		
	ARTICLE X         REDEMPTION OF COLT 20    -SN   SECURED NOTES	  	
			
	 SECTION 10.1
	 	 Redemption
	  	50
			
	 SECTION 10.2
	 	 COLT 20    -SN   Secured Notes Payable on Redemption Date
	  	50
		
	ARTICLE XI         MISCELLANEOUS	  	
			
	 SECTION 11.1
	 	 Compliance Certificates and Opinions, Etc
	  	51
			
	 SECTION 11.2
	 	 Form of Documents Delivered to COLT Indenture Trustee
	  	52
			
	 SECTION 11.3
	 	 Acts of COLT 20    -SN   Secured Noteholders
	  	53
			
	 SECTION 11.4
	 	 Notices, Etc., to COLT Indenture Trustee, COLT and Rating Agencies
	  	54
			
	 SECTION 11.5
	 	 Notices to COLT 20    -SN   Secured Noteholders; Waiver
	  	54
			
	 SECTION 11.6
	 	 Alternate Payment and Notice Provisions
	  	55
			
	 SECTION 11.7
	 	 Conflict with Trust Indenture Act
	  	55

  

 -iv- 

 TABLE OF CONTENTS 

(continued) 
  

					
	 	 	 	  	Page
			
	 SECTION 11.8
	 	 Effect of Headings and Table of Contents
	  	55
			
	 SECTION 11.9
	 	 Successors and Assigns
	  	55
			
	 SECTION 11.10
	 	 Severability
	  	56
			
	 SECTION 11.11
	 	 Benefits of COLT Indenture
	  	56
			
	 SECTION 11.12
	 	 Legal Holidays
	  	56
			
	 SECTION 11.13
	 	 GOVERNING LAW
	  	56
			
	 SECTION 11.14
	 	 Counterparts
	  	56
			
	 SECTION 11.15
	 	 Recording of COLT Indenture
	  	56
			
	 SECTION 11.16
	 	 No Recourse
	  	57
			
	 SECTION 11.17
	 	 No Petition
	  	57
			
	 SECTION 11.18
	 	 Inspection
	  	58
			
	 SECTION 11.19
	 	 Indemnification by and Reimbursement of the Servicer
	  	58
			
	 SECTION 11.20
	 	 Series Liabilities
	  	58
			
	 SECTION 11.21
	 	 Subordination
	  	58
		
	EXHIBIT A         FORM OF COLT 20    -SN   SECURED NOTE	  	
		
	EXHIBIT B         FORM OF CERTIFICATION	  	

  

 -v- 

 COLT 20    -SN   INDENTURE, dated as of
            , 20    (this “COLT Indenture”), between CENTRAL ORIGINATING LEASE TRUST, a Delaware statutory trust (“COLT”), and
                    , a national banking association, as indenture trustee (as COLT Indenture Trustee and not in its individual capacity, the
“COLT Indenture Trustee”). 
 Each party agrees as follows for the benefit of the other parties and for the
equal and ratable benefit of the Holders of the COLT 20    -SN   Secured Notes: 

GRANTING CLAUSE 

COLT hereby Grants to the COLT Indenture Trustee, for the equal and ratable benefit of each Holder of a COLT
20    -SN   Secured Note, a security interest in, and its transfer, assignment and conveyance of, without recourse, the following: 

(i) all right, title and interest of COLT in, to and under the Series 20    -SN   Lease
Assets listed on the Series 20    -SN   Lease Assets Schedule attached as Schedule A to the COLT Sale and Contribution Agreement and all beneficial interest in the Vehicles related to the Series
20    -SN   Lease Assets under the VAULT Trust Agreement, and all monies due thereunder on and after the Cutoff Date and with respect to the Vehicles, to the extent permitted by law, all accessions
thereto; 
 (ii) the interest of COLT in any proceeds from claims on any physical damage, credit life, credit disability or
other insurance policies covering the related Vehicles or Lessees related to the Series 20    -SN   Lease Assets; 

(iii) the interest of COLT in any proceeds from recourse against Dealers on the Series
20    -SN   Lease Assets; 
 (iv) all right, title and interest of COLT in, to and
under the COLT 20    -SN   Lease Assets Assignment; 
 (v) all right, title and
interest of COLT in, to and under the VAULT Trust Agreement (solely with respect to the Vehicles related to Series 20    -SN   Lease Assets); 

(vi) all right, title and interest of COLT in, to and under the COLT Servicing Agreement and any other COLT
20    -SN   Basic Document; 
 (vii) all right, title and interest of COLT in, to
and under the funds on deposit from time to time in the Designated Accounts, including all Designated Account Property; and 

(viii) the present and future claims, demands, causes and choses in action in respect of any or all the foregoing and all payments on or
under and all proceeds of every kind and nature whatsoever in respect of any or all the foregoing, including all proceeds of the conversion of any or all of the foregoing, voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, investment property, payment intangibles, general intangibles, condemnation awards, rights to payment of any and every
kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing (collectively, and together with the Direct COLT Pledge, the
“COLT 20    -SN   Collateral”). 
  

 1 

 In addition, to the extent that, notwithstanding the terms of the VAULT Trust Agreement and
the Statutory Trust Act, COLT is deemed to hold a direct ownership interest in the legal title to any Vehicle related to the Series 20    -SN   Lease Assets (and not merely a beneficial interest in VAULT
representing an interest in the legal title to such Vehicle), COLT hereby grants, equally and ratably, to each COLT 20    -SN   Secured Noteholder a security interest in all of COLT’s rights in such
Vehicle, to secure its obligations under the COLT Indenture (the assets pledged under such security interest, the “Direct COLT Pledge”). The Direct COLT Pledge shall constitute part of the COLT
20    -SN   Collateral for all purposes hereunder, and each COLT 20    -SN   Secured Noteholder, by its acceptance thereof, hereby appoints the COLT Indenture
Trustee as its agent to act with respect to the Direct COLT Pledge as it is required to act with respect to the remainder of the COLT 20    -SN   Collateral in accordance with this COLT Indenture.

 The foregoing Grant is made in trust to secure the payment of principal of and interest on, and any other amounts owing in
respect of, the COLT 20    -SN   Secured Notes, equally and ratably without prejudice, priority or distinction among the Holders of the COLT 20    -SN   Secured
Notes and to secure compliance with the provisions of this COLT Indenture, all as provided in this COLT Indenture. This COLT Indenture constitutes a security agreement under the UCC. 

The foregoing Grant includes all rights, powers and options (but none of the obligations, if any) of COLT under any agreement or
instrument included in the COLT 20    -SN   Collateral, including the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of the
Series 20    -SN   Lease Assets included in the COLT 20    -SN   Collateral and all other monies payable under the COLT
20    -SN   Collateral, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of COLT or otherwise
and generally to do and receive anything that COLT is or may be entitled to do or receive under or with respect to the COLT 20    -SN   Collateral. 

Furthermore, on the Series 20    -SN   Closing Date, VAULT shall grant a security interest in
the Pledged Collateral to each COLT 20    -SN   Secured Noteholder, to the extent set forth in the VAULT Security Agreement. The Pledged Collateral shall constitute part of the COLT
20    -SN   Trust Estate for all purposes hereunder, and each COLT 20    -SN   Secured Noteholder, by its acceptance thereof, hereby appoints the COLT Indenture
Trustee as its agent to act with respect to the Pledged Collateral as it is required to act with respect to the remainder of the COLT 20    -SN   Trust Estate in accordance with this COLT Indenture.

 The Holders of the COLT 20    -SN   Secured Notes shall enjoy solely the security
of the COLT 20    -SN   Trust Estate and shall have no recourse to the assets included in the Series Portfolio securing any other Series of Secured Notes or any other assets of COLT. 

 

 2 

 The COLT Indenture Trustee, as indenture trustee on behalf of each Holder of the COLT
20    -SN   Secured Notes, acknowledges such Grant and accepts the trusts under this COLT Indenture in accordance with the provisions of this COLT Indenture. 

ARTICLE I 

DEFINITIONS AND INCORPORATION BY REFERENCE 

SECTION 1.1 Definitions; Rules of Construction. Capitalized terms used in this COLT Indenture but not defined
herein are defined in and shall have the meanings assigned to them in the COLT Series Definitions set forth in Part I of Exhibit A to the COLT Servicing Agreement, dated as of the date hereof (as amended, modified or supplemented
from time to time, the “COLT Servicing Agreement”), between COLT, Ally Financial Inc. (“Ally Financial”), as Servicer, and the COLT Indenture Trustee or if not defined therein, shall have the meanings assigned to them in the COLT
Program Definitions set forth in Part I of Exhibit I to the Declaration of Trust, dated as of December 13, 2006 (as amended, modified or supplemented from time to time, the “Declaration”), by Deutsche Bank
Trust Company Delaware, as COLT Owner Trustee, and acknowledged, accepted and agreed by Central Originating Lease, LLC (“COLT, LLC”), as Residual Certificateholder. All references herein to Articles, Sections, subsections and
exhibits are to Articles, Sections, subsections and exhibits of this COLT Indenture unless otherwise specified. All terms defined in this COLT Indenture shall have the defined meanings when used in any certificate, notice, COLT
20    -SN   Secured Note or other document made or delivered pursuant hereto unless otherwise defined therein. The rules of construction set forth in Part II of Exhibit A to the COLT
Servicing Agreement shall be applicable to this COLT Indenture. 
 SECTION 1.2 Incorporation by Reference of Trust Indenture
Act. Whenever this COLT Indenture refers to a provision of the TIA, such provision is incorporated by reference in and made a part of this COLT Indenture. The following TIA terms used in this COLT Indenture have the following meanings:

 “Commission” means the Securities and Exchange Commission; 

“indenture securities” means the COLT 20    -SN   Secured Notes; 

“indenture security holder” means a COLT 20    -SN   Secured Noteholder;

 “indenture to be qualified” means this COLT Indenture; 

“indenture trustee” means the COLT Indenture Trustee; 

“obligor” on the indenture securities means COLT and any other obligor on the indenture securities. 

All other TIA terms used in this COLT Indenture that are defined by the TIA, defined by reference to another statute or defined by a
Commission rule have the respective meanings assigned to them by such definitions. 
  

 3 

 ARTICLE II 

THE SECURED NOTES 

SECTION 2.1 Form. 

(a) Each COLT 20    -SN   Secured Note, together, in each case, with the COLT Indenture
Trustee’s certificate of authentication, shall be substantially in the form set forth in Exhibit A, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this COLT
Indenture, and each such COLT 20    -SN   Secured Note may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistently herewith, be
determined to be appropriate by the officers executing such COLT 20    -SN   Secured Notes, as evidenced by their execution of the COLT 20    -SN   Secured
Notes, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which such COLT 20    -SN   Secured Notes
may be listed or to conform to usage. Any portion of the text of any COLT 20    -SN   Secured Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the COLT
20    -SN   Secured Note. The COLT 20    -SN   Secured Notes shall be secured by the COLT 20    -SN   Trust Estate as
set forth in this COLT Indenture. 
 (b) The COLT 20    -SN   Secured Notes shall be
typewritten, printed, lithographed or engraved or produced by any combination of these methods (with or without steel engraved borders), all as determined by the officers executing such COLT 20    -SN  
Secured Notes, as evidenced by their execution of such COLT 20    -SN   Secured Notes. 

(c) Each COLT 20    -SN   Secured Note shall be issued in the initial Secured Note Principal
Balance set forth on the face thereof, which shall each be equal to 50% of the product of (x) the Secured Note Percentage and (y) the sum of the Initial ABS Values of the Series 20    -SN   Lease
Assets (with respect to each COLT 20    -SN   Secured Note, the “Initial Secured Note Principal Balance”). 

(d) The terms of the COLT 20    -SN   Secured Notes as provided for in Exhibit A are part of
the terms of this COLT Indenture. 
 SECTION 2.2 Execution, Authentication and Delivery. 

(a) Each COLT 20    -SN   Secured Note shall be dated the date of its authentication and shall
be issuable as a registered COLT 20    -SN   Secured Note. 
 (b) The COLT
20    -SN   Secured Notes shall be executed on behalf of COLT by any of its Authorized Officers. The signature of any such Authorized Officer on the COLT
20    -SN   Secured Notes may be manual or facsimile. 
 (c) COLT
20    -SN   Secured Notes bearing the manual or facsimile signature of individuals who were at any time Authorized Officers of COLT shall bind COLT, notwithstanding that such individuals or any of them
have ceased to hold such office prior to the authentication and delivery of such COLT 20    -SN   Secured Notes or did not hold such office at the date of such COLT
20    -SN   Secured Notes. 
  

 4 

 (d) The COLT Indenture Trustee, in exchange for the Grant of the COLT
20    -SN   Collateral, simultaneously with the Grant to the COLT Indenture Trustee of the COLT 20    -SN   Collateral, and the constructive delivery to the COLT
Indenture Trustee of the Series 20    -SN   Lease Assets and the other components and assets of the COLT 20    -SN   Collateral, shall cause to be authenticated
and delivered to or upon the order of COLT, one or more COLT 20    -SN   Secured Notes. 

(e) No COLT 20    -SN   Secured Notes shall be entitled to any benefit under this COLT
Indenture or be valid or obligatory for any purpose, unless there appears on such COLT 20    -SN   Secured Note a certificate of authentication substantially in the form set forth in Exhibit A
executed by the COLT Indenture Trustee by the manual signature of one of its Authorized Officers, and such certificate upon any COLT 20    -SN   Secured Note shall be conclusive evidence, and the only
evidence, that such COLT 20    -SN   Secured Note has been duly authenticated and delivered hereunder. 

SECTION 2.3 Registration; Registration of Transfer and Exchange of COLT 20    -SN   Secured Notes.

 (a) COLT shall cause to be kept the Secured Note Register, comprising separate registers for each of the COLT
20    -SN   Secured Notes, in which, subject to such reasonable regulations as COLT may prescribe, COLT shall provide for the registration of the COLT
20    -SN   Secured Notes and the registration of transfers and exchanges of the COLT 20    -SN   Secured Notes. The COLT Indenture Trustee shall initially be
the Secured Note Registrar for the purpose of registering the COLT 20    -SN   Secured Notes and transfers or exchanges of the COLT 20    -SN   Secured Notes as
herein provided. Upon any resignation of any Secured Note Registrar, COLT shall promptly appoint a successor Secured Note Registrar or, if it elects not to make such an appointment, assume the duties of the Secured Note Registrar. 

(b) If a Person other than the COLT Indenture Trustee is appointed by COLT as Secured Note Registrar, COLT will give the COLT Indenture
Trustee prompt written notice of the appointment of such Secured Note Registrar and of the location, and any change in the location, of the Secured Note Register. The COLT Indenture Trustee shall have the right to inspect the Secured Note Register
at all reasonable times and to obtain copies thereof. The COLT Indenture Trustee shall have the right to rely upon a certificate executed on behalf of the Secured Note Registrar by a Responsible Officer thereof as to the names and addresses of the
COLT 20    -SN   Secured Noteholders and the Secured Note Principal Balances and number of such COLT 20    -SN   Secured Notes. 

(c) Upon surrender for registration of transfer of any COLT 20    -SN   Secured Note at the
Corporate Trust Office of the COLT Indenture Trustee or Agency Office of COLT (and following the delivery, in the former case, of such COLT 20    -SN   Secured Notes to COLT by the COLT Indenture Trustee),
COLT shall execute, the COLT Indenture Trustee shall authenticate and the COLT 20    -SN   Secured Noteholder shall obtain from the COLT Indenture Trustee, in the name of the designated transferee or
transferees, one or more new COLT 20    -SN   Secured Notes in any authorized denominations, of a like Secured Note Principal Balance. 

 

 5 

 (d) At the option of the COLT 20    -SN  
Secured Noteholder, COLT 20    -SN   Secured Notes may be exchanged for other COLT 20    -SN   Secured Notes in any authorized denominations, of a like Secured
Note Principal Balance and a like numerical designation, upon surrender of such COLT 20    -SN   Secured Notes to be exchanged at the Corporate Trust Office of the COLT Indenture Trustee or the Agency
Office of COLT (and following the delivery of such COLT 20    -SN   Secured Notes to COLT by the COLT Indenture Trustee), COLT shall execute, and the COLT Indenture Trustee shall authenticate and the COLT
20    -SN   Secured Noteholder shall obtain from the COLT Indenture Trustee, such COLT 20    -SN   Secured Notes which the COLT
20    -SN   Secured Noteholder making the exchange is entitled to receive. 
 (e)
All COLT 20    -SN   Secured Notes issued upon any registration of transfer or exchange of other COLT 20    -SN   Secured Notes shall be the valid obligations of
COLT, evidencing the same debt, and entitled to the same benefits under this COLT Indenture, as the COLT 20    -SN   Secured Notes surrendered upon such registration of transfer or exchange. 

(f) Every COLT 20    -SN   Secured Note presented or surrendered for registration of transfer
or exchange shall be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the COLT Indenture Trustee and the Secured Note Registrar, duly executed by the Holder thereof or such Holder’s
attorney-in-fact duly authorized in writing, with such signature guaranteed by a commercial bank or trust company located, or having a correspondent located, in the City of New York or the city in which the Corporate Trust Office of the COLT
Indenture Trustee is located, or by a member firm of a national securities exchange, and such other documents as the COLT Indenture Trustee may require. 

(g) No service charge shall be made to a Holder for any registration of transfer or exchange of COLT
20    -SN   Secured Notes, but COLT or the COLT Indenture Trustee may 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 COLT 20    -SN   Secured Notes, other than exchanges pursuant to Section 9.6 not involving any transfer. 

(h) By acquiring a COLT 20    -SN   Secured Note or any interest therein, each purchaser and
transferee shall be deemed to represent and warrant that either (a) it is not acquiring the COLT 20    -SN   Secured Note with the plan assets of a Benefit Plan or (b) the acquisition, holding
and disposition of the COLT 20    -SN   Secured Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or a non-exempt violation of
any substantially similar applicable law. 
 (i) The preceding provisions of this Section 2.3 notwithstanding, COLT
shall not be required to transfer or make exchanges, and the Secured Note Registrar need not register transfers or exchanges, of (i) COLT 20    -SN   Secured Notes that have been selected for
redemption pursuant to Article X, if applicable; or (ii) COLT 20    -SN   Secured Notes that are due for final payment within 15 days of submission to the Corporate Trust Office or the Agency
Office. 
  

 6 

 SECTION 2.4 Mutilated, Destroyed, Lost or Stolen COLT
20    -SN   Secured Notes. 
 (a) If (i) any mutilated COLT
20    -SN   Secured Note is surrendered to the COLT Indenture Trustee, or the COLT Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of any COLT
20    -SN   Secured Note, and (ii) there is delivered to COLT and the COLT Indenture Trustee such security or indemnity as may be required by each such Person to hold each such Person harmless, then,
in the absence of notice to COLT, the Secured Note Registrar or the COLT Indenture Trustee that such COLT 20    -SN   Secured Note has been acquired by a Protected Purchaser, COLT shall execute and upon
COLT’s request the COLT Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen COLT 20    -SN   Secured Note, a replacement COLT
20    -SN   Secured Note of a like Secured Note Principal Balance; provided, however, that if any such destroyed, lost or stolen COLT 20    -SN  
Secured Note, but not a mutilated COLT 20    -SN   Secured Note, shall have become or within seven days shall be due and payable, or shall have been called for redemption, instead of issuing a replacement
COLT 20    -SN   Secured Note, COLT may make payment to the Holder of such destroyed, lost or stolen COLT 20    -SN   Secured Note when so due or payable or upon
the Redemption Date, if applicable, without surrender thereof. 
 (b) If, after the delivery of a replacement COLT
20    -SN   Secured Note or payment in respect of a destroyed, lost or stolen COLT 20    -SN   Secured Note pursuant to Section 2.4(a), a Protected
Purchaser of the original COLT 20    -SN   Secured Note in lieu of which such replacement COLT 20    -SN   Secured Note was issued presents for payment such
original COLT 20    -SN   Secured Note, COLT and the COLT Indenture Trustee shall be entitled to recover such replacement COLT 20    -SN   Secured Note (or such
payment) from (i) any Person to whom it was delivered, (ii) the Person taking such replacement COLT 20    -SN   Secured Note from the Person to whom such replacement COLT
20    -SN   Secured Note was delivered; or (iii) any assignee of such Person, except a Protected Purchaser, and COLT and the COLT Indenture Trustee shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by COLT or the COLT Indenture Trustee in connection therewith. 

(c) In connection with the issuance of any replacement COLT 20    -SN   Secured Note under
this Section 2.4, COLT may require the payment by the Holder of such COLT 20    -SN   Secured Note of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including all fees and expenses of the COLT Indenture Trustee) connected therewith. 

(d) Any duplicate COLT 20    -SN   Secured Note issued pursuant to this
Section 2.4 in replacement for any mutilated, destroyed, lost or stolen COLT 20    -SN   Secured Note shall constitute an original additional contractual obligation of COLT, whether or not the
mutilated, destroyed, lost or stolen COLT 20    -SN   Secured Note shall be found at any time or be enforced by any Person, and shall be entitled to all the benefits of this COLT Indenture equally and
proportionately with any and all other COLT 20    -SN   Secured Notes duly issued hereunder. 
  

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 (e) The provisions of this Section 2.4 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 COLT 20    -SN   Secured Notes. 

SECTION 2.5 Payment of Principal and Interest. 

(a) Each COLT 20    -SN   Secured Note shall accrue interest from and including the Series
20    -SN   Closing Date on the Secured Note Principal Balance of such COLT 20    -SN   Secured Note, until but excluding the date on which the Secured Note
Principal Balance of such COLT 20    -SN   Secured Note is reduced to zero. Interest shall accrue on each COLT 20    -SN   Secured Note at the COLT
20    -SN   Secured Note Rate. On each Payment Date, each COLT 20    -SN   Secured Note shall be paid interest in an amount equal to the Secured Note Interest
Distributable Amount payable to such COLT 20    -SN   Secured Note in accordance with Section 3.03(c)(ii) of the COLT Servicing Agreement on such Payment Date. Any installment of interest
payable on the COLT 20    -SN   Notes shall be punctually paid or duly provided for with funds set aside in the COLT Collection Account on the applicable Payment Date and shall be paid to the Person in
whose name such COLT 20    -SN   Secured Note is registered in the Secured Note Register on the applicable Record Date, by wire transfer in immediately available funds to the account or accounts designated
in writing by such Holder to the COLT Indenture Trustee on or prior to the related Record Date. 
 (b) To the extent of funds
available therefor, the outstanding principal amount of each COLT 20    -SN   Secured Note shall be paid in installments on each Payment Date, in the amounts and in accordance with the priorities set forth
in Section 3.03(c)(iii) of the COLT Servicing Agreement. The outstanding principal amount of the COLT 20    -SN   Secured Notes shall be due and payable in full on the Final Scheduled Payment
Date. All principal payments on the COLT 20    -SN   Secured Notes shall be made pro rata to the COLT 20    -SN   Secured Noteholders, as provided in
Section 3.03(c)(iii) of the COLT Servicing Agreement. Any installment of principal payable on any COLT 20    -SN   Secured Note shall be punctually paid or duly provided for with funds set
aside in the COLT Collection Account established with respect to the Series 20    -SN   Lease Assets on the applicable Payment Date and shall be paid to the Person in whose name such COLT
20    -SN   Secured Note is registered in the Secured Note Register on the applicable Record Date by wire transfer in immediately available funds to the account or accounts designated by such Holder on or
prior to the related Record Date, except for the Redemption Price for the COLT 20    -SN   Secured Notes redeemed pursuant to Section 10.1, which shall be payable as provided herein. The funds
represented by any such wire transfers in respect of interest or principal returned undelivered shall be held in accordance with Section 3.3. 

(c) From and after the occurrence of an Event of Default and a declaration in accordance with Section 5.2(a) that the COLT
20    -SN   Secured Notes have become immediately due and payable, until such time as all Events of Default have been cured or waived as provided in Section 5.2(b), all interest and principal
payments shall be allocated pro rata among the Holders of all of the COLT 20    -SN   Secured Notes on the basis of the Secured Note Principal Balances of COLT
20    -SN   Secured Notes held by such Holders. 
  

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 (d) With respect to any Payment Date on which the final installment of principal and
interest on a COLT 20    -SN   Secured Note is to be paid, the COLT Indenture Trustee on behalf of COLT shall notify each COLT 20    -SN   Secured Noteholders of
record as of the Record Date for such Payment Date of the fact that the final installment of principal and interest on such COLT 20    -SN   Secured Note is to be paid on such Payment Date. With respect to
any COLT 20    -SN   Secured Notes, such notice shall be sent not later than three Business Days after such Record Date in accordance with Section 11.5(a), and shall specify that such final
installment shall be payable only upon presentation and surrender of such COLT 20    -SN   Secured Note and shall specify the place where such COLT 20    -SN  
Secured Note may be presented and surrendered for payment of such installment and the manner in which such payment shall be made. 

(e) All payments of principal and interest on the COLT 20    -SN   Secured Notes and the
CARAT Collection Account Shortfall Amounts shall be made by the COLT Indenture Trustee from the COLT Collection Account solely pursuant to the calculations and written direction of the Servicer in accordance with Section 3.03(a) of the
COLT Servicing Agreement. 
 SECTION 2.6 Persons Deemed Secured Noteholders. Prior to due presentment for registration of
transfer of any COLT 20    -SN   Secured Note, COLT, the COLT Indenture Trustee and any agent of COLT or the COLT Indenture Trustee shall treat the Person in whose name any COLT
20    -SN   Secured Note is registered in the Secured Note Register (as of the day of determination) as the COLT 20    -SN   Secured Noteholder for the purpose
of receiving payments of principal of and interest on such COLT 20    -SN   Secured Note and for all other purposes whatsoever, whether or not such COLT
20    -SN   Secured Note be overdue, and neither COLT, the COLT Indenture Trustee nor any agent of COLT or the COLT Indenture Trustee shall be affected by notice to the contrary. 

SECTION 2.7 Cancellation of COLT 20    -SN   Secured Notes. All COLT
20    -SN   Secured Notes surrendered for payment, redemption, exchange or registration of transfer shall, if surrendered to any Person other than the COLT Indenture Trustee, be delivered to the COLT
Indenture Trustee and shall be promptly canceled by the COLT Indenture Trustee. COLT may at any time deliver to the COLT Indenture Trustee for cancellation any COLT 20    -SN   Secured Notes previously
authenticated and delivered hereunder which the Trust may have acquired in any manner whatsoever, and all COLT 20    -SN   Secured Notes so delivered shall be promptly canceled by the COLT Indenture
Trustee. No COLT 20    -SN   Secured Notes shall be authenticated in lieu of or in exchange for any COLT 20    -SN   Secured Notes canceled as provided in this
Section 2.7, except as expressly permitted by this COLT Indenture. All canceled COLT 20    -SN   Secured Notes may be held or disposed of by the COLT Indenture Trustee in accordance with its
standard retention or disposal policy as in effect at the time unless COLT shall direct by a COLT Order that they be destroyed or returned to it; provided, however, that such COLT Order is timely and the COLT
20    -SN   Secured Notes have not been previously disposed of by the COLT Indenture Trustee. The COLT Indenture Trustee shall certify to COLT upon request that surrendered COLT
20    -SN   Secured Notes have been duly canceled and retained or destroyed, as the case may be. 
  

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 SECTION 2.8 Release of COLT 20    -SN   Trust Estate.
The COLT Indenture Trustee shall release property from the lien of this COLT Indenture and the VAULT Security Agreement, other than as permitted by Sections 3.20, 8.4 and 11.1, only upon receipt of a COLT Request accompanied by
an Officers’ Certificate, an Opinion of counsel (to the extent required by the TIA) and Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1). 

SECTION 2.9 Seller, CARI, the Trust and the CARAT Indenture Trustee as COLT 20    -SN   Secured
Noteholders. Each of the Seller, CARI, the Trust and the CARAT Indenture Trustee, in their individual or any other capacity, may become the owner or pledgee of COLT 20    -SN   Secured Notes and may
otherwise deal with COLT or its affiliates with the same rights it would have if it were not the Seller or the CARAT Indenture Trustee, as applicable, or with respect to CARI and the Trust, an Affiliate of the Seller. 

SECTION 2.10 Tax Treatment. COLT and the COLT Indenture Trustee, by entering into this COLT Indenture, and the COLT
20    -SN   Secured Noteholders, by acquiring any COLT 20    -SN   Secured Note or interest therein, (i) express their intention that the COLT
20    -SN   Secured Notes qualify under applicable tax law as indebtedness secured by the COLT 20    -SN   Trust Estate and (ii) unless otherwise required
by appropriate taxing authorities, agree to treat the COLT 20    -SN   Secured Notes as indebtedness secured by the COLT 20    -SN   Trust Estate for the purpose
of federal income taxes, state and local income and franchise taxes, any applicable single business tax, including the Michigan single business tax and any other taxes imposed upon, measured by or based upon gross or net income. 

ARTICLE III 

COVENANTS 

SECTION 3.1 Payment of Principal and Interest and Other Amounts. COLT shall duly and punctually pay the principal of and interest
on the COLT 20    -SN   Secured Notes and the CARAT Collection Account Shortfall Amount in accordance with the terms of the COLT 20    -SN   Basic Documents. On
each Payment Date and on the Redemption Date (if applicable), COLT shall cause amounts on deposit in the COLT Collection Account to be paid to the COLT 20    -SN   Secured Noteholders in accordance with
Sections 2.5 and 8.2 and with Section 3.03 of the COLT Servicing Agreement, less amounts properly withheld under the Code by any Person from a payment to any COLT 20    -SN  
Secured Noteholder of interest and/or principal. Any amounts so withheld shall be considered as having been paid by COLT to such COLT 20    -SN   Secured Noteholder for all purposes of this COLT Indenture.

 SECTION 3.2 Maintenance of Agency Office. As long as any of the COLT
20    -SN   Secured Notes remains outstanding, COLT shall maintain in the Borough of Manhattan, the City of New York, an office (the “Agency Office”), being an office or agency where COLT
20    -SN   Secured Notes may be surrendered to COLT for registration of transfer or exchange, and where notices and demands to or upon COLT in respect of the COLT
20    -SN   Secured Notes and this COLT Indenture may be served. COLT hereby initially appoints the COLT Indenture Trustee to serve as its agent for the foregoing purposes. COLT shall give prompt written
notice to the COLT Indenture Trustee of the location, and of any change in the location, of the Agency Office. If at any time COLT shall fail to maintain any such office or agency or shall fail to furnish the COLT Indenture Trustee with the address
thereof, such surrenders, notices and demands may be made or served at the Corporate Trust Office of the COLT Indenture Trustee, and COLT hereby appoints the COLT Indenture Trustee as its agent to receive all such surrenders, notices and demands.

  

 10 

 SECTION 3.3 Money for Payments to Be Held in Trust. 

(a) As provided in Section 8.2(a) and (b), all payments of amounts due and payable with respect to any COLT
20    -SN   Secured Notes that are to be made from amounts withdrawn from the COLT Collection Account pursuant to Section 3.03 of the COLT Servicing Agreement shall be made on behalf of COLT by
the COLT Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from the COLT Collection Account for payments of such COLT 20    -SN   Secured Notes shall be paid over to COLT except as
provided in this Section 3.3. 
 (b) On or before the Redemption Date, COLT shall cause the Servicer to deposit into
the COLT Collection Account, pursuant to Section 6.01 of the COLT Servicing Agreement, the Optional Purchase Price. On or before each Payment Date, COLT shall deposit or cause to be deposited in the COLT Collection Account, pursuant to
Section 3.03(b) of the COLT Servicing Agreement, an aggregate sum sufficient to pay the amounts then becoming due with respect to the COLT 20    -SN   Secured Notes and the CARAT Collection
Account Shortfall Amount, such sum to be held in trust for the benefit of the Persons entitled thereto. 
 (c) COLT shall cause
each Paying Agent other than the COLT Indenture Trustee to execute and deliver to the COLT Indenture Trustee an instrument in which such Paying Agent shall agree with the COLT Indenture Trustee (and if the Servicer acts as Paying Agent, it hereby so
agrees), subject to the provisions of this Section 3.3, that such Paying Agent shall: 
 (i) hold
all sums held by it for the payment of amounts due with respect to the COLT 20    -SN   Secured Notes 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 and pay such sums to such Persons as herein provided; 
 (ii) give
the COLT Indenture Trustee notice of any default by COLT (or any other obligor upon the COLT 20    -SN   Secured Notes) of which it has actual knowledge in the making of any payment required to be made
with respect to the COLT 20    -SN   Secured Notes; 
 (iii) at any
time during the continuance of any such default, upon the written request of the COLT Indenture Trustee, forthwith pay to the COLT Indenture Trustee all sums so held in trust by such Paying Agent; 

(iv) immediately resign as a Paying Agent and forthwith pay to the COLT Indenture Trustee all sums held by it in trust
for the payment of the COLT 20    -SN   Secured Notes if at any time it ceases to meet the standards required to be met by a Paying Agent in effect at the time of determination; and 

 

 11 

 (v) comply with all requirements of the Code with respect to the
withholding from any payments made by it on the COLT 20    -SN   Secured Notes of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection
therewith. 
 (d) COLT may at any time, for the purpose of obtaining the satisfaction and discharge of this COLT Indenture or
for any other purpose, by a COLT Order direct any Paying Agent to pay to the COLT Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by COLT Indenture Trustee upon the same trusts as those upon which the sums were
held by such Paying Agent; and upon such payment by any Paying Agent to the COLT Indenture Trustee, such Paying Agent shall be released from all further liability with respect to such money. 

(e) Subject to applicable laws with respect to escheat of funds, any distribution to any COLT
20    -SN   Secured Noteholder returned to the COLT Indenture Trustee or any Paying Agent for any reason, held by the COLT Indenture Trustee or such Paying Agent in trust for the payment of any amount due
with respect to any COLT 20    -SN   Secured Note and remaining unclaimed for one year after such amount has become due and payable shall be discharged from such trust and be paid to COLT by the COLT
Indenture Trustee or such Paying Agent to COLT upon receipt of a COLT Request; and such COLT 20    -SN   Secured Noteholder shall thereafter, as an unsecured general creditor, look only to COLT for payment
thereof (but only to the extent of the amounts so paid to COLT), and all liability of the COLT Indenture Trustee or such Paying Agent with respect to such trust money shall thereupon cease; provided, however, that the COLT Indenture
Trustee or such Paying Agent, before being required to make any such payment, may at the expense of COLT cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general
circulation in the City of New York, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining shall
be paid to COLT. The COLT Indenture Trustee may also adopt and employ, at the expense of COLT, any other reasonable means of notification of such payment (including mailing notice of such repayment of any COLT
20    -SN   Secured Noteholder whose right to or interest in monies due and payable but not claimed is determinable from the records of the Secured Note Registrar, at the last address of record for each
COLT 20    -SN   Secured Noteholder). 
 SECTION 3.4 Existence. COLT shall
keep in full effect its existence, rights and franchises as a statutory trust under the laws of the State of Delaware (unless it becomes, or any successor trust hereunder is or becomes, organized under the laws of any other State or of the United
States of America, in which case COLT shall keep in full effect its existence, rights and franchises under the laws of such other jurisdiction) and shall obtain and preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and enforceability of this COLT Indenture, the COLT 20    -SN   Secured Notes, the COLT
20    -SN   Collateral and each other instrument or agreement included in the COLT 20    -SN   Trust Estate. 

 

 12 

 SECTION 3.5 Protection of COLT 20    -SN   Trust Estate;
Acknowledgment of Pledge. 
 (a) COLT shall from time to time execute and deliver all such supplements and amendments hereto
and authorize or execute, as applicable, and deliver all such financing statements, continuation statements, instruments of further assurance and other instruments, and shall take such other action necessary or advisable to: 

(i) maintain or preserve the Lien (and the priority thereof) of this COLT Indenture or carry out more effectively the
purposes hereof, including by making the necessary filings of financing statements or amendments thereto within sixty days after the occurrence of any of the following and by promptly notifying the COLT Indenture Trustee in writing of any such
filings: (A) any change in COLT’s true legal name or any of its trade names, (B) any change in the location of COLT’s jurisdiction of organization, (C) any merger or consolidation or other change in COLT’s identity or
organizational structure or jurisdiction of organization in which COLT is located for purposes of the UCC and (D) any other change or occurrence that would make any financing statement or amendment thereto seriously misleading within the
meaning of Section 9-506 of the UCC; 
 (ii) perfect, publish notice of or protect the validity of any
Grant made or to be made by this COLT Indenture and the priority thereof; 
 (iii) enforce the rights of the
COLT Indenture Trustee and the COLT 20    -SN   Secured Noteholders in the COLT 20    -SN   Trust Estate; or 

(iv) preserve and defend title to the COLT 20    -SN   Trust Estate and the
rights of the COLT Indenture Trustee and the COLT 20    -SN   Secured Noteholders in such COLT 20    -SN   Trust Estate against the claims of all Persons and
parties; 
 and COLT hereby designates the COLT Indenture Trustee its agent and attorney-in-fact to authorize and/or execute any financing
statement, continuation statement or other instrument required pursuant to this Section 3.5. 
 (b) COLT hereby
authorizes the COLT Indenture Trustee to file all financing statements, continuation statements or other instruments naming COLT as debtor that are necessary or advisable to perfect, make effective or continue the Lien of this COLT Indenture and the
VAULT Security Agreement with respect to the COLT 20    -SN   Trust Estate, and authorizes the COLT Indenture Trustee to take any such action without its signature. 

SECTION 3.6 Opinions as to COLT 20    -SN   Collateral. 

(a) On the Series 20    -SN   Closing Date, COLT shall furnish to the COLT Indenture Trustee
and each COLT 20    -SN   Secured Noteholder an Opinion of Counsel either stating that, in the opinion of such counsel, such action has been taken with respect to the recording and filing of this COLT
Indenture, any indentures supplemental hereto and any other requisite documents, and with respect to the authorization, execution and filing of any financing statements and continuation statements as are necessary to perfect and make effective the
Lien of this COLT Indenture and reciting the details of such action, or stating that, in the opinion of such counsel, no such action is necessary to make such Lien effective. 

 

 13 

 (b) On or before March 15 in each calendar year, beginning March 15,
20    , COLT shall furnish to the COLT Indenture Trustee and each COLT 20    -SN   Secured Noteholder an Opinion of Counsel either stating that, in the opinion of such counsel,
such action has been taken with respect to the recording and filing of this COLT Indenture, any indentures supplemental hereto and any other requisite documents and with respect to the authorization, execution and filing of any financing statements
and continuation statements as is necessary to maintain the Lien created by this COLT Indenture and reciting the details of such action or stating that in the opinion of such counsel no such action is necessary to maintain the Lien created by this
COLT Indenture. Such Opinion of Counsel shall also describe the recording, filing, re-recording and refiling of this COLT Indenture, any indentures supplemental hereto and any other requisite documents and the authorization, execution and filing of
any financing statements and continuation statements that will, in the opinion of such counsel, be required to maintain the Lien of this COLT Indenture until March 15 in the following calendar year. 

SECTION 3.7 Performance of Obligations; Servicing of Series 20    -SN   Lease Assets. 

(a) COLT shall not take any action and shall use its reasonable efforts not to permit any action to be taken by others that would release
any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in the COLT 20    -SN   Trust Estate or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as otherwise expressly provided in this COLT Indenture, any other COLT
20    -SN   Basic Document or such other instrument or agreement. 
 (b) COLT may
contract with other Persons to assist it in performing its duties under this COLT Indenture, and any performance of such duties by a Person identified to the COLT Indenture Trustee in the COLT 20    -SN  
Basic Documents or an Officer’s Certificate of COLT shall be deemed to be action taken by COLT. Initially, COLT has contracted with the Servicer to assist COLT in performing its duties under this COLT Indenture. No such delegation shall relieve
COLT of its responsibilities with respect to such duties. 
 (c) COLT shall punctually perform and observe all of its
obligations and agreements contained in this COLT Indenture, any other COLT 20    -SN   Basic Documents and in the instruments and agreements included in the COLT
20    -SN   Trust Estate, including filing or causing to be filed all UCC financing statements and continuation statements required to be filed under the terms of this COLT Indenture and any other COLT
20    -SN   Basic Document in accordance with and within the time periods provided for herein or therein. 

(d) If COLT shall have knowledge of the occurrence of a Servicer Default under the COLT Servicing Agreement, COLT shall promptly (and in
any event within five Business Days) notify the COLT Indenture Trustee, the COLT 20    -SN   Secured Noteholders and the Rating Agencies (if any Rated Notes are outstanding) in writing thereof, and shall
specify in such notice the response or action, if any, COLT has taken or is taking with respect to such default. If any such Servicer Default shall arise from the failure of the Servicer to perform any of its duties or obligations under the COLT
Servicing Agreement with respect to the Series 20    -SN   Lease Assets, COLT and the COLT Indenture Trustee shall take all reasonable steps available to them pursuant to such COLT Servicing Agreement
(with respect to the COLT Indenture Trustee, in accordance with Section 6.2(h) of this COLT Indenture) to remedy such failure. 
  

 14 

 (e) Without derogating from the absolute nature of the assignment granted under this COLT
Indenture with respect to the COLT 20    -SN   Collateral and under the VAULT Security Agreement with respect to the Pledged Collateral or the rights of the COLT Indenture Trustee and the COLT
20    -SN   Secured Noteholders hereunder or under the VAULT Security Agreement, COLT agrees that it shall not, without the prior written consent of the COLT Indenture Trustee and the COLT
20    -SN   Secured Noteholders, amend, modify, waive, supplement, terminate or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of any assets
included in the COLT 20    -SN   Trust Estate or any of COLT 20    -SN   Basic Documents, or waive timely performance or observance by any party under any of the
COLT 20    -SN   Basic Documents. 
 SECTION 3.8 Negative Covenants. So long
as any COLT 20    -SN   Secured Notes are Outstanding, COLT shall not: 
 (a) sell,
transfer, exchange or otherwise dispose of any of the properties or assets included in the COLT 20    -SN   Trust Estate, except COLT may cause the Servicer to: (i) collect, liquidate, sell or
otherwise dispose of COLT’s interest in the Series 20    -SN   Lease Assets (including any Warranty Lease Assets, Administrative Lease Assets, and Liquidating Lease Assets, and any related
Vehicles); (ii) make cash payments out of the Designated Accounts and Payment Ahead Servicing Account; and (iii) take other actions, in each case as permitted by the COLT 20    -SN   Basic
Documents; 
 (b) claim any credit on, or make any deduction from the principal and interest payable in respect of COLT
20    -SN   Secured Notes (other than amounts withheld from such payments under the Code or applicable state law) or assert any claim against any present or former COLT
20    -SN   Secured Noteholder by reason of the payment of the taxes levied or assessed upon any part of the COLT 20    -SN   Trust Estate; 

(c) voluntarily commence any insolvency, readjustment of debt, marshaling of assets and liabilities or other proceeding, or apply for an
order by a court or agency or supervisory authority for the winding-up or liquidation of its affairs or any other event specified in Section 5.1(f); or 

(d) either (i) permit the validity or effectiveness of this COLT Indenture or any other COLT
20    -SN   Basic Documents to be impaired, or permit the lien of this COLT Indenture in the related COLT 20    -SN   Collateral or the lien of the VAULT
Security Agreement in the Pledged Collateral to be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations with respect to the COLT
20    -SN   Secured Notes under this COLT Indenture except as may be expressly permitted hereby, (ii) permit any Lien (other than the Lien of this COLT Indenture in the COLT
20    -SN   Collateral and the Lien of the VAULT Security Agreement in the Pledged Collateral) to be created on or extend to or otherwise arise upon or burden the COLT
20    -SN   Trust Estate or any part thereof or any interest therein or the proceeds thereof (other than as otherwise 

 

 15 

 
contemplated by the COLT 20    -SN   Basic Documents) or (iii) permit the Lien of this COLT Indenture not to constitute a valid first priority
perfected security interest in the COLT 20    -SN   Collateral or the Lien of the VAULT Security Agreement not to constitute a valid first priority perfected security interest in the Pledged Collateral
(other than as otherwise contemplated by the COLT 20    -SN    Basic Documents). 

SECTION 3.9 Annual Statement as to Compliance. Until the COLT 20    -SN   Secured
Notes have been paid in full, COLT shall deliver to the COLT Indenture Trustee and the COLT 20    -SN   Secured Noteholders, on or before March 15 of each year, beginning March 15,
20    , an Officer’s Certificate signed by an Authorized Officer of COLT, dated as of December 31 of the preceding year, stating that: 

(a) a review of the activities of COLT during the preceding 12-month period (or, with respect to the first such Officer’s
Certificate, such period as shall have elapsed since the Series 20    -SN   Closing Date) and of COLT’s performance under this COLT Indenture has been made under such Authorized Officer’s
supervision; and 
 (b) to the best of such Authorized Officer’s knowledge, based on such review, COLT has fulfilled all of
its obligations under this COLT Indenture throughout such period, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such Authorized Officer and the nature and status thereof. 

SECTION 3.10 Consolidation, Merger, Etc., of Trust; Disposition of Trust Assets. 

(a) COLT shall not consolidate or merge with or into any other Person, unless: 

(i) the Person (if other than COLT) formed by or surviving such consolidation or merger shall be a Person organized and
existing under the laws of the United States of America or any state and be a U.S. Person, and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the COLT Indenture Trustee, in form satisfactory to the COLT
Indenture Trustee, the due and timely payment of the principal of and interest on all COLT 20    -SN   Secured Notes and the performance or observance of every agreement and covenant of this COLT Indenture on the part
of COLT to be performed or observed, all as provided herein; 
 (ii) immediately after giving effect to such
merger or consolidation, no Default or Event of Default shall have occurred and be continuing; 
 (iii) the
Approval Condition shall have been satisfied with respect to such transaction and such Person; 
 (iv) any
action as is necessary to maintain the Lien created by this COLT Indenture in the COLT 20    -SN   Collateral shall have been taken; and 

 

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 (v) COLT shall have delivered to the COLT Indenture Trustee an
Officer’s Certificate and an Opinion of Counsel addressed to COLT, the COLT Indenture Trustee and each COLT 20    -SN   Secured Noteholder, each stating: 

(A) that such consolidation or merger and such supplemental indenture comply with this Section 3.10;

 (B) that such consolidation or merger and such supplemental indenture shall have no material adverse tax
consequences to COLT or any COLT 20    -SN   Secured Noteholder; and 

(C) that all conditions precedent herein provided for in this Section 3.10 have been complied with, which
shall include any filing required by the Exchange Act. 
 (b) Except as otherwise expressly permitted by this
COLT Indenture or any other COLT 20    -SN   Basic Documents, COLT shall not sell, convey, exchange, transfer or otherwise dispose of any of the properties or assets included in the COLT
20    -SN   Trust Estate to any Person, unless: 
 (i) the Person
that acquires such properties or assets of COLT (A) shall be a United States citizen or a Person organized and existing under the laws of the United States of America or any state and be a U.S. Person and (B) by an indenture supplemental
hereto, executed and delivered to the COLT Indenture Trustee and each COLT 20    -SN   Secured Noteholder, in form satisfactory to the COLT Indenture Trustee: 

(1) expressly assumes the due and punctual payment of the principal of and interest on all COLT
20    -SN   Secured Notes and any CARAT Collection Account Shortfall Amounts and the performance or observance of every agreement and covenant of this COLT Indenture on the part of COLT to be performed or
observed, all as provided herein; 
 (2) expressly agrees that all right, title and interest so sold, conveyed,
exchanged, transferred or otherwise disposed of shall be subject and subordinate to the rights of COLT 20    -SN   Secured Noteholders; 

(3) unless otherwise provided in such supplemental indenture, expressly agrees to indemnify, defend and hold harmless COLT
against and from any loss, liability or expense arising under or related to this COLT Indenture and the COLT 20    -SN   Secured Notes; and 

(4) expressly agrees that such Person (or if a group of Persons, then one specified Person) shall make all
filings with the Commission (and any other appropriate Person) required by the Exchange Act in connection with the COLT 20    -SN   Secured Notes; 

 

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 (ii) immediately after giving effect to such transaction, no Default or
Event of Default shall have occurred and be continuing; 
 (iii) the Approval Condition shall have been satisfied
with respect to such transaction and such Person for the COLT 20    -SN   Secured Notes; 

(iv) any action as is necessary to maintain the lien and security interest created by this COLT Indenture in the COLT
20    -SN   Collateral shall have been taken; and 
 (v) COLT shall
have delivered to the COLT Indenture Trustee and each COLT 20    -SN   Secured Noteholder an Officer’s Certificate and an Opinion of Counsel addressed to COLT, each stating that: 

(A) such sale, conveyance, exchange, transfer or disposition and such supplemental indenture comply with this
Section 3.10; 
 (B) such sale, conveyance, exchange, transfer or disposition and such supplemental
indenture have no material adverse tax consequence to COLT or to any COLT 20    -SN   Secured Noteholder; and 

(C) that all conditions precedent herein provided for in this Section 3.10 have been complied with, which
shall include any filing required by the Exchange Act. 
 SECTION 3.11 Successor or Transferee. 

(a) Upon any consolidation or merger of COLT in accordance with Section 3.10(a), the Person formed by or surviving such
consolidation or merger (if other than COLT) shall succeed to, and be substituted for, and may exercise every right and power of, COLT under this COLT Indenture and the other COLT 20    -SN   Basic
Documents with the same effect as if such Person had been named as COLT herein. 
 (b) Upon a conveyance or transfer of all or
substantially all the assets and properties included in the COLT 20    -SN   Collateral pursuant to Section 3.10(b), COLT shall be released from every covenant and agreement of this COLT
Indenture and the other COLT 20    -SN   Basic Documents to be observed or performed on the part of COLT with respect to the COLT 20    -SN   Secured Notes
immediately upon the delivery of written notice to the COLT Indenture Trustee from the Person acquiring such assets and properties stating that COLT is to be so released. 

SECTION 3.12 No Other Business. COLT shall not engage in any business or activity other than acquiring, holding, pledging and
managing the COLT 20    -SN   Trust Estate and the proceeds therefrom in the manner contemplated by the COLT 20    -SN   Basic Documents, issuing COLT
20    -SN   Secured Notes and the COLT 20    -SN   Certificate, making payments on COLT 20    -SN   Secured Notes and
the COLT 20    -SN   Certificate and such other activities that are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or are otherwise described or set forth in
Section 2.3 of the Declaration. 
  

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 SECTION 3.13 No Borrowing. COLT shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any indebtedness for money borrowed other than indebtedness for money borrowed in respect of the COLT 20    -SN   Secured Notes, money
borrowed in respect of any other Series of Secured Notes or otherwise in accordance with the COLT 20    -SN   Basic Documents including Section 2.3 of the Declaration. 

SECTION 3.14 Guarantees, Loans, Advances and Other Liabilities. Except as contemplated by this COLT Indenture or the other COLT
20    -SN   Basic Documents, COLT shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or
performance on any obligation or capability of so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or
agree contingently to do so) any stock, obligations, assets or securities of, or any other interest in, or make any capital contribution to, any other Person. 

SECTION 3.15 Servicer’s Obligations. COLT shall use its best efforts to cause the Servicer to comply with its obligations
under Sections 2.15, 2.16 and 2.17 of the COLT Servicing Agreement. 
 SECTION 3.16 Capital
Expenditures. COLT shall not make any expenditure (whether by long-term or operating lease or otherwise) for capital assets (either real, personal or intangible property) other than the purchase of the Series
20    -SN   Lease Assets and other related property and rights from time to time pursuant to the COLT Sale and Contribution Agreement or, with respect to other Series, to the extent otherwise described or
set forth in Section 2.3 of the Declaration of Trust. 
 SECTION 3.17 Restricted Payments. Except for payments of
principal or interest on or redemption of the COLT 20    -SN   Secured Notes or payment of any CARAT Collection Account Shortfall Amount, so long as any COLT
20    -SN   Secured Notes are Outstanding, COLT shall not, directly or indirectly: 

(a) pay any dividend or make any distribution from collections received on the COLT
20    -SN   Trust Estate (by reduction of capital or otherwise), whether in cash, property, securities or a combination thereof, to the COLT Owner Trustee or the Series
20    -SN   Certificateholder or otherwise, in each case with respect to any ownership or equity interest or similar security in or of the Series 20    -SN  
Portfolio or to the Servicer; 
 (b) redeem, purchase, retire or otherwise acquire for value any such ownership or equity
interest or similar security of the Series 20    -SN   Portfolio; or 
 (c) set
aside or otherwise segregate any amounts for any such purpose; 
 provided, however, that COLT may make, or cause to be made
(x) distributions to the Servicer, the COLT Indenture Trustee, the COLT Owner Trustee and the Series 20    -SN   Certificateholder as permitted by, and to the extent funds are available for such
purpose under, the COLT 20    -SN   Basic Documents and (y) distributions from any other Series Portfolio in accordance with the transaction documents related to such other Series Portfolio. COLT
shall not, directly or indirectly, make payments to or distributions from the COLT Collection Account except in accordance with the COLT 20    -SN   Basic Documents. 

 

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 SECTION 3.18 Notice of Events of Default. COLT agrees to give the COLT Indenture
Trustee, each COLT 20    -SN   Secured Noteholder and, if any Rated Notes are outstanding, the Rating Agencies prompt written notice of each Event of Default, each Servicer Default under the COLT Servicing
Agreement, each default on the part of the Servicer of its obligations under the COLT 20    -SN   Basic Documents and each default on the part of the Seller of its obligations under the COLT Sale and
Contribution Agreement. 
 SECTION 3.19 Further Instruments and Acts. Upon request of the COLT Indenture Trustee, COLT
shall execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this COLT Indenture. 

SECTION 3.20 COLT Indenture Trustee’s Release of Lien on Administrative Lease Assets and Warranty Lease Assets and Sale or Other
Distribution of the Related Vehicles. Upon receipt of the Administrative Purchase Payment with respect to any Administrative Lease Asset or the Warranty Payment with respect to any Warranty Lease Asset, in each case into the COLT Collection
Account, the COLT Indenture Trustee shall be deemed automatically and without any further action to have released its security interest and all of its other right title and interest in and Lien under this COLT Indenture on, (w) such Warranty
Lease Asset or (x) such Administrative Lease Asset, as the case may be, all monies due thereon, the security interest in the related Vehicle and any and all proceeds, rights and remedies relating thereto; and COLT shall simultaneously assign
and be deemed automatically and without any further action to have assigned, without recourse, representation or warranty, (y) such Warranty Lease Asset to the Seller under the COLT Sale and Contribution Agreement, or (z) such
Administrative Lease Asset to the Servicer under the COLT Servicing Agreement, as the case may be, all of COLT’s right, title and interest in, to and under such purchased Series 20    -SN   Lease
Asset, all monies due thereon, the security interest in the related Vehicle and any and all proceeds, rights and remedies relating thereto, such assignment being an assignment outright and not for security; and the Seller or the Servicer, as
applicable, shall thereupon own such Series 20    -SN   Lease Asset, and all such security and documents, free of any further obligation to the COLT Indenture Trustee, the COLT
20    -SN   Secured Noteholders or the COLT 20    -SN   Certificateholder with respect thereto. In addition, the Servicer shall have the right to sell or
otherwise dispose of the Vehicles related to the Series 20    -SN   Lease Assets so repurchased or purchased, as applicable, in accordance with the COLT Servicing Agreement. Upon the sale or other
disposition of any such Vehicle by the Servicer, the Lien of the COLT Indenture Trustee shall be automatically released upon the Servicer’s receipt of the proceeds of any such sale or liquidation. 

If in any enforcement suit or legal proceeding it is held that the Servicer under the COLT Servicing Agreement may not enforce a Series
20    -SN   Lease Asset included in the COLT 20    -SN   Collateral on the ground that it is not a real party in interest or a holder entitled to enforce the
Series 20    -SN   Lease Asset, the COLT Indenture Trustee shall, at the Servicer’s expense and written direction (which may be by electronic mail or other electronic transmission), take such steps as
the Servicer deems necessary to enforce such Series 20    -SN   Lease Asset, including bringing suit in the COLT Indenture Trustee’s name or the names of the COLT
20    -SN   Secured Noteholders and/or the COLT 20    -SN   Certificateholder. 

 

 20 

 SECTION 3.21 Representations and Warranties by COLT to the COLT Indenture Trustee. On
the Series 20    -SN   Closing Date, COLT hereby represents and warrants to the COLT Indenture Trustee as follows: 

(a) Good Title. No interest in any Series 20    -SN   Lease Asset
(other than any Administrative Lease Asset, Liquidating Lease Asset or Warranty Lease Asset or otherwise pursuant to the COLT 20    -SN   Basic Documents) has been sold, transferred, assigned or pledged by
COLT to any Person other than the COLT Indenture Trustee as of the Series 20    -SN   Closing Date (except that Ally Financial, as initial holder of the COLT
20    -SN   Secured Notes, has been named as the lienholder and VAULT has been named the legal titleholder on the certificates of title of the related Vehicles); immediately prior to the conveyance of such
Series 20    -SN   Lease Assets pursuant to this COLT Indenture, COLT had good and marketable title thereto, free of any Lien; and, upon execution and delivery of this COLT Indenture, the COLT Indenture
Trustee shall have all of the right, title and interest of COLT in, to and under such Series 20    -SN   Lease Assets, free of any Lien; and 

(b) All Filings Made. All filings (including UCC filings) and notations necessary in any jurisdiction to give the COLT Indenture
Trustee (or, with respect to the Direct COLT Pledge, each COLT 20    -SN   Secured Noteholder) a first priority perfected security interest in the COLT
20    -SN   Collateral have been made. 
 SECTION 3.22 Maintenance of Separate
Records for Each Series. So long as any COLT 20    -SN   Secured Note remains Outstanding and pursuant to Section 3.2(a) of the Declaration, COLT shall maintain separate and distinct
records with respect to the Series 20    -SN   Lease Assets and the remainder of the Series 20    -SN   Portfolio and the Series
20    -SN   Lease Assets and the remainder of the Series 20    -SN   Portfolio shall be held and accounted for separately from any other Trust Assets allocated
to any other Series Portfolio or the Residual Interest. 
 ARTICLE IV 

SATISFACTION AND DISCHARGE 

SECTION 4.1 Satisfaction and Discharge of COLT Indenture. This COLT Indenture shall cease to be of further effect except as to:
(i) rights of registration of transfer and exchange; (ii) substitution of mutilated, destroyed, lost or stolen COLT 20    -SN   Secured Notes; (iii) rights of COLT
20    -SN   Secured Noteholders to receive payments of principal thereof and interest thereon; (iv) Sections 3.3, 3.4, 3.5, 3.6, 3.10, 3.12, 3.13,
3.18, 3.20 and 11.16; (v) the rights, obligations and immunities of the COLT Indenture Trustee hereunder (including the rights of the COLT Indenture Trustee under Section 6.7 and the obligations of the COLT
Indenture Trustee under Sections 4.2 and 4.4); and (vi) the rights of COLT 20    -SN   Secured Noteholders as beneficiaries hereof with respect to the property so deposited with the COLT
Indenture Trustee payable to all or any of them, and the COLT Indenture Trustee, on demand of and at the expense of COLT, shall execute proper instruments acknowledging satisfaction and discharge of this COLT Indenture with respect to the COLT
20    -SN   Secured Notes, if: 
 (a) either: 

(i) all COLT 20    -SN   Secured Notes theretofore authenticated and delivered
(other than (A) COLT 20    -SN   Secured Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.4 and (B) COLT
20    -SN   Secured Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by COLT and thereafter repaid to COLT or discharged from such trust, as provided in
Section 3.3) have been delivered to the COLT Indenture Trustee for cancellation; or 
  

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 (ii) all COLT 20    -SN  
Secured Notes not theretofore delivered to the COLT Indenture Trustee for cancellation: 
 (A) have become due
and payable, 
 (B) will be due and payable on their respective Final Scheduled Payment Dates within one year, or

 (C) are to be called for redemption within one year under arrangements satisfactory to the COLT Indenture
Trustee for the giving of notice of redemption by the COLT Indenture Trustee in the name, and at the expense, of COLT or such COLT 20    -SN   Secured Notes have been redeemed in accordance with
Section 10.1, 
 and COLT, in the case of clause (A), (B) or (C) of
subsection 4.1(a)(ii) above, has irrevocably deposited or caused to be irrevocably deposited with the COLT Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which will mature prior to
the date such amounts are payable), in trust for such purpose, in an amount sufficient to pay and discharge the entire unpaid principal and accrued interest on such COLT 20    -SN   Secured Notes not
theretofore delivered to the COLT Indenture Trustee for cancellation when due on the Final Scheduled Payment Date for such COLT 20    -SN   Secured Notes or the Redemption Date for such COLT
20    -SN   Secured Notes (if such COLT 20    -SN   Secured Notes have been called for redemption pursuant to Section 10.1), as the case may be;

 (b) COLT has paid or caused to be paid all amounts and has performed all obligations which COLT may owe to the COLT Indenture
Trustee personally or to the COLT Indenture Trustee for the benefit of the COLT 20    -SN   Secured Noteholders under this COLT Indenture and any other COLT
20    -SN   Basic Documents; and 
 (c) COLT has delivered to the COLT Indenture
Trustee and to the COLT 20    -SN   Secured Noteholders an Officer’s Certificate of COLT, an Opinion of Counsel and (if required by the TIA or the COLT Indenture Trustee) an Independent Certificate
from a firm of certified public accountants, each meeting the applicable requirements of Section 11.1(a) and each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this COLT Indenture
have been complied with. 
  

 22 

 SECTION 4.2 Application of Trust Money. All monies deposited with the COLT Indenture
Trustee pursuant to Section 4.1 shall be held in trust and applied by it, in accordance with the provisions of the COLT 20    -SN   Secured Notes and this COLT Indenture and the applicable
provisions of the COLT Servicing Agreement, to the payment, either directly or through any Paying Agent, as the COLT Indenture Trustee may determine, to the Holders of the particular COLT 20    -SN  
Secured Notes for the payment or redemption of which such monies have been deposited with the COLT Indenture Trustee, of all sums due and to become due in accordance with this COLT Indenture and any other COLT
20    -SN   Basic Documents; but such monies need not be segregated from other funds except to the extent required herein, in the COLT Servicing Agreement or by applicable law. 

SECTION 4.3 Repayment of Monies Held by Paying Agent. In connection with the satisfaction and discharge of this COLT Indenture
with respect to the COLT 20    -SN   Secured Notes, all monies then held by any Paying Agent other than the COLT Indenture Trustee under the provisions of this COLT Indenture with respect to all such COLT
20    -SN   Secured Notes shall, upon demand of COLT, be paid to the COLT Indenture Trustee to be held and applied according to Section 3.3 and thereupon such Paying Agent shall be released
from all further liability with respect to such monies. 
 SECTION 4.4 Duration of Position of COLT Indenture Trustee.
Notwithstanding the payment in full of all principal and interest due to all COLT 20    -SN   Secured Noteholders under the terms of the COLT 20    -SN   Secured
Notes and the cancellation of such COLT 20    -SN   Secured Notes pursuant to Section 4.1, the COLT Indenture Trustee shall continue to act in the capacity as COLT Indenture Trustee hereunder
for the benefit of the COLT 20    -SN   Certificateholder and the COLT Indenture Trustee, and for the benefit of such COLT 20    -SN   Certificateholder, shall
comply with its obligations under the COLT Servicing Agreement, as appropriate, until such time as all distributions due to the Holder of the Series 20    -SN   Certificate have been paid in full.

 ARTICLE V 

DEFAULT AND REMEDIES 

SECTION 5.1 Events of Default. For the purposes of this COLT Indenture, “Event of Default” wherever used herein,
means any one of the following events: 
 (a) failure to pay the full Secured Note Interest Distributable Amount on any COLT
20    -SN   Secured Note on any Payment Date, and such default shall continue unremedied for a period of five Business Days; or 

(b) except as set forth in Section 5.1(c), failure to pay any principal of any COLT
20    -SN   Secured Note as and when required in accordance with the COLT Basic Documents, and such default continues unremedied for a period of 30 days after there shall have been given, by registered or
certified mail, to the Servicer by the COLT Indenture Trustee or to the Servicer and the COLT Indenture Trustee by the Holders of not less than 25% of the Outstanding Amount of the COLT 20    -SN   Secured
Notes, a written notice specifying such default and demanding that it be remedied and stating that such notice is a “Notice of Default” hereunder; or 

 

 23 

 (c) failure to pay in full the Secured Note Principal Balance of any COLT
20    -SN   Secured Notes by the Final Scheduled Payment Date; or 

(d) default in the observance or performance in any material respect of any other covenants or agreements of COLT made
in this COLT Indenture (other than a covenant or agreement a default in the observance or performance of which is specifically dealt with elsewhere in this Section 5.1) which failure materially and adversely affects the rights of the
COLT 20    -SN   Secured Noteholders, and such default shall continue or not be cured for a period of 30 days (x) after there shall have been given, by registered or certified mail, to COLT, the
Seller (or the Servicer, as applicable) by the COLT Indenture Trustee or to COLT, the Seller (or the Servicer, as applicable) and the COLT Indenture Trustee by the Holders of at least 25% of the Outstanding Amount of the COLT
20    -SN   Secured Notes, a written notice specifying such default, demanding that it be remedied and stating that such notice is a “Notice of Default” hereunder; or 

(e) the filing of a decree or application for relief by a court having jurisdiction in the premises in respect of COLT or any substantial
part of the COLT 20    -SN   Trust Estate in an involuntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of COLT or for any substantial part of the COLT 20    -SN   Trust Estate, or ordering the winding-up or liquidation of COLT’s
affairs, and such decree or order shall remain unstayed and in effect for a period of 90 consecutive days; or 
 (f) the
commencement by COLT of a voluntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent of COLT to the entry of an application for relief in an involuntary case under any
such law, or the consent by COLT to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of COLT or for any substantial part of the COLT
20    -SN   Trust Estate, or the making by COLT of any general assignment for the benefit of creditors, or the failure by COLT generally to pay its debts as such debts become due, or the taking of action
by COLT in furtherance of any of the foregoing. 
 COLT shall deliver to the COLT Indenture Trustee and the COLT
20    -SN   Secured Noteholders promptly (and in any event within five Business Days) after learning of the occurrence thereof, written notice in the form of an Officer’s Certificate of any event
which with the giving of notice and the lapse of time would become an Event of Default under Section 5.1(d), its status and what action COLT is taking or proposes to take with respect thereto. 

SECTION 5.2 Acceleration of Maturity; Rescission and Annulment. 

(a) If an Event of Default should occur and be continuing, then and in every such case, unless the principal amount of the COLT
20    -SN   Secured Notes shall have already become due and payable, either the COLT Indenture Trustee or the Holders of COLT 20    -SN   Secured Notes
representing not less than a majority of the Outstanding Amount of the COLT 20    -SN   Secured Notes may declare all the COLT 20    -SN   Secured Notes to be
immediately due and payable, by a notice in writing to COLT and to the COLT Indenture Trustee if given by the COLT 20    -SN   Secured Noteholders setting forth the Event of Default or Events of

  

 24 

 
Default, and upon any such declaration the unpaid principal amount of the COLT 20    -SN   Secured Notes, together with accrued and unpaid interest
thereon through the date of acceleration, shall become immediately due and payable. 
 (b) At any time after such declaration of
acceleration of maturity of the COLT 20    -SN   Secured Notes has been made and before a judgment or decree for payment of the money due thereunder has been obtained by the COLT Indenture Trustee as
hereinafter provided in this Article V, the holders of COLT 20    -SN   Secured Notes representing not less than a majority of the Outstanding Amount of the COLT
20    -SN   Secured Notes, by written notice to COLT and the COLT Indenture Trustee, may waive all Defaults set forth in the notice delivered pursuant to Section 5.2(a) and rescind and annul
such declaration and its consequences; provided, however, that no such rescission and annulment shall extend to or affect any subsequent Event of Default or impair any right consequent thereto; and provided, further, that
if the COLT Indenture Trustee or the COLT 20    -SN   Secured Noteholders shall have proceeded to enforce any right under this COLT Indenture and such Proceedings shall have been discontinued or abandoned
because of such rescission and annulment or for any other reason, or such Proceedings shall have been determined adversely to the COLT Indenture Trustee or the COLT 20    -SN   Secured Noteholders, then
and in every such case, the COLT Indenture Trustee, COLT and the COLT 20    -SN   Secured Noteholders, as the case may be, shall be restored to their respective former positions and rights hereunder, and
all rights, remedies and powers of the COLT Indenture Trustee, COLT and the COLT 20    -SN   Secured Noteholders, as the case may be, shall continue as though no such Proceedings had been commenced.

 SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by COLT Indenture Trustee. 

(a) COLT covenants that if an Event of Default occurs and such Event of Default has not been waived pursuant to Section 5.12,
then COLT shall, upon demand of the COLT Indenture Trustee, pay to the COLT Indenture Trustee, for the ratable benefit of the COLT 20    -SN   Secured Noteholders in accordance with their respective
Secured Note Principal Balances, the entire amount then due and payable on the COLT 20    -SN   Secured Notes for principal and interest, with interest upon the overdue principal and overdue interest at
the COLT 20    -SN   Secured Note Rate and any CARAT Collection Account Shortfall Amount and in addition thereto such further amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of the COLT Indenture Trustee and its agents and counsel. 

(b) If COLT shall fail forthwith to pay such amounts upon such demand, the COLT Indenture Trustee, may, in its own name and as trustee of
an express trust, institute a Proceeding for the collection of the sums so due and unpaid, and prosecute such Proceeding to judgment or final decree, and enforce the same against COLT or other obligor upon the COLT
20    -SN   Secured Notes and collect in the manner provided by law out of the property of the COLT 20    -SN   Trust Estate, the monies adjudged or decreed to
be payable. 
 (c) If an Event of Default occurs and is continuing, the COLT Indenture Trustee may, as more particularly
provided in Section 5.4, in its discretion, proceed to protect and enforce its rights and the rights of the COLT 20    -SN   Secured Noteholders, by such

  

 25 

 
appropriate Proceedings as the COLT Indenture Trustee shall deem most effective to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this
COLT Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy or legal or equitable right vested in the COLT Indenture Trustee by this COLT Indenture or by applicable law. 

(d) If there shall be pending, relative to COLT or any other obligor upon the COLT
20    -SN   Secured Notes or any Person having or claiming an ownership interest in the COLT 20    -SN   Trust Estate, Proceedings under Title 11 of the United
States Code or any other applicable federal or state bankruptcy, insolvency or similar law, or if a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken
possession of COLT or its property or such obligor or Person, or in case of any other comparable judicial Proceedings relative to COLT or other obligor upon the COLT 20    -SN   Secured Notes, or to the
creditors or property of COLT or such other obligor, the COLT Indenture Trustee, irrespective of whether the principal of any COLT 20    -SN   Secured Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the COLT Indenture Trustee shall have made any demand pursuant to the provisions of this Section 5.3, shall be entitled and empowered, by intervention in such Proceedings or
otherwise: 
 (i) to file and prove a claim or claims for the whole amount of principal and interest and all
other amounts owing and unpaid in respect of the COLT 20    -SN   Secured Notes, and any CARAT Collection Account Shortfall Amount and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the COLT Indenture Trustee (including any claim for reasonable compensation to the COLT Indenture Trustee and each predecessor trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made, by the COLT Indenture Trustee and each predecessor trustee, except as a result of negligence, fraud or bad faith) and of the COLT
20    -SN   Secured Noteholders allowed in such Proceedings; 
 (ii)
unless prohibited by applicable law and regulations, to vote on behalf of the Holders of the COLT 20    -SN   Secured Notes in any election of a trustee, a standby trustee or Person performing similar
functions in any such Proceedings; 
 (iii) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute all amounts received with respect to the claims of the COLT 20    -SN   Secured Noteholders and of the COLT Indenture Trustee on their behalf; and

 (iv)(iv) to file such proofs of claim and other papers or documents as may be necessary or advisable in order
to have the claims of the COLT Indenture Trustee or the COLT 20    -SN   Secured Noteholders allowed in any judicial proceedings relative to COLT, its creditors and its property; 

 

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 and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby
authorized by each of such COLT 20    -SN   Secured Noteholders to make payments to the COLT Indenture Trustee for application in accordance with the priorities set forth in the COLT
20    -SN   Basic Documents, and, if the COLT Indenture Trustee shall consent to the making of payments directly to such COLT 20    -SN   Secured Noteholders, to
pay to the COLT Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the COLT Indenture Trustee, each predecessor COLT Indenture Trustee and their respective agents, attorneys and counsel, and all other expenses
and liabilities incurred, and all advances made, by the COLT Indenture Trustee and each predecessor COLT Indenture Trustee except as a result of negligence, fraud or bad faith. 

(e) Nothing herein contained shall be deemed to authorize the COLT Indenture Trustee to authorize or consent to or vote for or accept or
adopt on behalf of any COLT 20    -SN   Secured Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the COLT 20    -SN  
Secured Notes or the rights of any Holder thereof or to authorize the COLT Indenture Trustee to vote in respect of the claim of any COLT 20    -SN   Secured Noteholder in any such Proceeding except, as
aforesaid, to vote for the election of a trustee in bankruptcy or similar Person. 
 (f) All rights of action and of asserting
claims under this COLT Indenture, or under any of the COLT 20    -SN   Secured Notes may be enforced by the COLT Indenture Trustee without the possession of any of the COLT
20    -SN   Secured Notes or the production thereof in any trial or other Proceedings relative thereto, and any such Proceedings instituted by the COLT Indenture Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the COLT Indenture Trustee, each predecessor COLT Indenture Trustee and their respective agents and attorneys, shall
be for the benefit of the COLT 20    -SN   Secured Noteholders in accordance with the priorities set forth in the COLT 20    -SN   Basic Documents. 

(g) In any Proceedings brought by the COLT Indenture Trustee (and also any Proceedings involving the interpretation of any provision of
this COLT Indenture to which the COLT Indenture Trustee shall be a party), the COLT Indenture Trustee shall be held to represent all the COLT 20    -SN   Secured Noteholders, and it shall not be necessary
to make any the COLT 20    -SN   Secured Noteholders a party to any such Proceedings. 

(h) With respect to any claims for payments of reimbursement for expenses, disbursement or compensation of any Person made of COLT
pursuant to this Section 5.3, where more than one Person has made such a claim, COLT shall not reimburse any Person other than the COLT Indenture Trustee for such amounts if, prior to incurring such expenses, the affected parties
reasonably could have avoided such expense by coordinating their claims under this COLT Indenture with the COLT Indenture Trustee. 

SECTION 5.4 Remedies; Priorities. 

(a) If an Event of Default shall have occurred and be continuing and the COLT 20    -SN  
Secured Notes have been accelerated under Section 5.2(a), the COLT Indenture Trustee may do one or more of the following (subject to Sections 5.3 and 5.5): 

 

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 (i) institute Proceedings in its own name and as trustee of an express trust
for the collection of all amounts then due and payable on such COLT 20    -SN   Secured Notes, under this COLT Indenture with respect thereto, whether by declaration of acceleration or otherwise, enforce
any judgment obtained, and collect from the COLT 20    -SN   Trust Estate and any other obligor upon such COLT 20    -SN   Secured Notes monies adjudged due;

 (ii) institute Proceedings from time to time for the complete or partial foreclosure of this COLT Indenture
with respect to the COLT 20    -SN   Collateral and of the VAULT Security Agreement with respect to the Pledged Collateral; 

(iii) exercise any remedies of a secured party under the UCC and take any other appropriate action to protect and enforce
the rights and remedies of the COLT Indenture Trustee and the COLT 20    -SN   Secured Noteholders; and 

(iv) sell the COLT 20    -SN   Trust Estate, or any portion thereof or rights
or interest therein, at one or more public or private sales called and conducted in any manner permitted by law or elect to have COLT maintain possession of the COLT 20    -SN   Trust Estate, including the
Series 20    -SN   Lease Assets and continue to apply collections on such Series 20    -SN   Lease Assets as if there had been no declaration of acceleration;
provided, however, that the COLT Indenture Trustee may not sell or otherwise liquidate the COLT 20    -SN   Trust Estate following an Event of Default and acceleration of the COLT
20    -SN   Secured Notes, except as is set forth in Section 3.20, unless (i)(A) the Holders of all of the aggregate Outstanding Amount of the COLT
20    -SN   Secured Notes consent thereto, (B) the proceeds of such sale or liquidation distributable to the Holders of the COLT 20    -SN   Secured Notes
are sufficient to discharge in full the principal of and the accrued interest on the COLT 20    -SN   Secured Notes as of the date of such sale or liquidation and pay any CARAT Collection Account Shortfall
Amount existing on such date (calculated as if such date were a Payment Date) or (C) (x) there has been an Event of Default under Section 5.1(a), (b) or (c) or otherwise arising from a failure to make a required
payment of principal on the COLT 20    -SN   Secured Notes, (y) the COLT Indenture Trustee determines that the COLT 20    -SN   Trust Estate will not
continue to provide sufficient funds for the payment of principal of and interest on the COLT 20    -SN   Secured Notes as and when they would have become due if the COLT
20    -SN   Secured Notes had not been declared due and payable and (z) the COLT Indenture Trustee obtains the consent of the Holders of all of the aggregate Outstanding Amount of the COLT
20    -SN   Secured Notes, and (ii) 10 days’ prior written notice of sale or liquidation has been given to the Rating Agencies (if any Rated Notes are outstanding). In determining such
sufficiency or insufficiency with respect to clauses (B) and (C), the COLT Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the COLT 20    -SN   Trust Estate for such purpose. 

provided, however, that prior to the exercise of the right to sell all or any portion of the COLT 20    -SN  
Trust Estate as provided herein, the COLT Indenture Trustee shall provide a notice in writing to COLT (with a copy to the Seller) (the “Event of Default Sale Notice”) of its 

 

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intention to sell all or any portion of the COLT 20    -SN   Trust Estate (the part to be sold being the “Subject Estate”), and if the
Subject Estate is less than all of the COLT 20    -SN   Trust Estate, the portion of the COLT 20    -SN   Trust Estate to be sold. The COLT Indenture Trustee
shall not consummate any sale until at least seven Business Days after the Event of Default Sale Notice has been given to COLT (with a copy to the Seller) (the “Authorization Date”). 

(b) If the COLT Indenture Trustee collects any money or property pursuant to this Article V, it shall pay out the money or property in
the following order: 
 FIRST: to the COLT Indenture Trustee for amounts due under Section 6.7 and
then to the COLT Owner Trustee for amounts due to the COLT Owner Trustee (not including amounts due for payments to the Series 20    -SN   Certificateholder) under Section 6.9 of the
Declaration of Trust; and 
 SECOND: to the COLT Collection Account for distribution in the following priority:
(i) payment in full of the accrued and unpaid interest on the COLT 20    -SN   Secured Notes; (ii) payment in full of unpaid principal balance of the COLT
20    -SN   Secured Notes; (iii) to the CARAT Collection Account towards payment in full of any CARAT Collection Account Shortfall Amounts and (iv) the remainder shall be distributed in
accordance with the instructions of the COLT 20    -SN   Certificateholder. 

SECTION 5.5 Optional Preservation of the Series 20    -SN   Lease Assets. If the COLT
20    -SN   Secured Notes have been declared to be due and payable under Section 5.2 following an Event of Default and such declaration and its consequences have not been rescinded and annulled in
accordance with Section 5.2(b), the COLT Indenture Trustee may, but need not, elect to take and maintain possession of the COLT 20    -SN   Trust Estate. It is the desire of the parties hereto and the
COLT 20    -SN   Secured Noteholders that there be at all times sufficient funds for the payment of principal of and interest on the COLT 20    -SN   Secured
Notes, and the COLT Indenture Trustee shall take such desire into account when determining whether or not to take and maintain possession of the COLT 20    -SN   Trust Estate. In determining whether to
take and maintain possession of the COLT 20    -SN   Trust Estate, the COLT Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the sufficiency of the COLT 20    -SN   Trust Estate for such purpose. 

SECTION 5.6 Limitation of Suits. No Holder of any COLT 20    -SN   Secured Note shall
have any right to institute any Proceeding, judicial or otherwise, with respect to this COLT Indenture, 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 COLT Indenture Trustee of a continuing Event of Default; 

(b) the Holders of not less than 25% of the Outstanding Amount of the COLT 20    -SN  
Secured Notes have made written request to the COLT Indenture Trustee to institute such Proceeding in respect of such Event of Default in its own name as COLT Indenture Trustee hereunder; 

 

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 (c) such Holder or Holders have offered to the COLT Indenture Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in complying with such request; 
 (d) the COLT Indenture Trustee for
60 days after the earlier of (x) its receipt of such notice under Section 5.6(a) above, request under Section 5.6(b) above and offer of indemnity under Section 5.6(c) above and (y) any similar notice,
request and offer of indemnity to the CARAT Indenture Trustee under Section 5.6 of the CARAT Indenture, has failed to institute such Proceedings; and 

(e) no direction inconsistent with such written request has been given to the COLT Indenture Trustee during such 60-day period by the
Holders of a majority of the Outstanding Amount of the COLT 20    -SN   Secured Notes; 
 it being
understood and intended that no one or more Holders of the COLT 20    -SN   Secured Notes shall have any right in any manner whatever by virtue of, or by availing of, any provision of this COLT Indenture
to affect, disturb or prejudice the rights of any other Holders of the COLT 20    -SN   Secured Notes or to obtain or to seek to obtain priority or preference over any other Holders of the COLT
20    -SN   Secured Notes or to enforce any right under this COLT Indenture, except in the manner herein provided and for the equal, ratable (on the basis of the respective aggregate amount of principal
and interest, respectively, due and unpaid on the COLT 20    -SN   Secured Note held by such COLT 20    -SN   Secured Noteholder) and common benefit of all
Holders of the COLT 20    -SN   Secured Notes. For the protection and enforcement of the provisions of this Section 5.6, each and every COLT 20    -SN  
Secured Noteholder shall be entitled to such relief as can be given either at law or in equity. 
 If the COLT Indenture Trustee
shall receive conflicting or inconsistent requests and indemnity from two or more groups of Holders of the COLT 20    -SN   Secured Notes, each representing less than a majority of the Outstanding Amount
of the COLT 20    -SN   Secured Notes, the COLT Indenture Trustee shall take the action requested by the group representing the higher percentage of the Outstanding Amount of the COLT
20    -SN   Secured Notes notwithstanding any other provisions of this COLT Indenture. 

SECTION 5.7 Unconditional Rights of the COLT 20    -SN   Secured Noteholders to Receive Principal and
Interest. Notwithstanding any other provisions in this COLT Indenture, the Holder of any COLT 20    -SN   Secured Note shall have the right, which is absolute and unconditional, to receive payment of
the principal of and interest on such COLT 20    -SN   Secured Note on or after the respective due dates thereof expressed in such COLT 20    -SN   Secured Note
or in this COLT Indenture (or in the case of redemptioin, if applicable, on or after the Redemption Date) and to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such Holder.

  

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 SECTION 5.8 Restoration of Rights and Remedies. If the COLT Indenture Trustee or any
COLT 20    -SN   Secured Noteholder has instituted any Proceeding to enforce any right or remedy under this COLT Indenture and such Proceeding has been discontinued or abandoned for any reason or has been
determined adversely to the COLT Indenture Trustee or to such COLT 20    -SN   Secured Noteholder, then and in every such case COLT, the COLT Indenture Trustee and the COLT
20    -SN   Secured Noteholders shall, subject to any determination in such Proceeding, be restored severally to their respective former positions hereunder, and thereafter all rights and remedies of the
COLT Indenture Trustee and the COLT 20    -SN   Secured Noteholders shall continue as though no such Proceeding had been instituted. 

SECTION 5.9 Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the COLT Indenture Trustee or
to the COLT 20    -SN   Secured Noteholders 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. 
 SECTION 5.10 Delay or Omission, Not a Waiver. No delay or omission of the COLT
Indenture Trustee or any Holder of any COLT 20    -SN   Secured Note to exercise any right or remedy accruing upon any Default or Event of Default shall impair any such right or remedy or constitute a
waiver of any such Default or Event of Default or an acquiescence therein. Every right and remedy given by this Article V or by law to the COLT Indenture Trustee or to the COLT 20    -SN   Secured
Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the COLT Indenture Trustee or by the COLT 20    -SN   Secured Noteholders, as the case may be. 

SECTION 5.11 Control by the COLT 20    -SN   Secured Noteholders. The Holders of a majority of the
Outstanding Amount of the COLT 20    -SN   Secured Notes shall, subject to provision being made for indemnification against costs, expenses and liabilities in a form satisfactory to the COLT Indenture
Trustee, have the right to direct the time, method and place of conducting any Proceeding for any remedy available to the COLT Indenture Trustee with respect to the COLT 20    -SN   Secured Notes or
exercising any trust or power conferred on the COLT Indenture Trustee; provided, however, that: 

(a) such direction shall not be in conflict with any rule of law or with this COLT Indenture; 

(b) subject to the express terms of Section 5.4, any direction to the COLT Indenture Trustee to sell or
liquidate the COLT 20    -SN   Trust Estate shall be by the Holders of COLT 20    -SN   Secured Notes representing not less than 100% of the Outstanding Amount
of the COLT 20    -SN   Secured Notes; 
 (c) if the conditions set
forth in Section 5.5 have been satisfied and the COLT Indenture Trustee elects to retain the COLT 20    -SN   Trust Estate pursuant to Section 5.5, then any direction to the COLT
Indenture Trustee by Holders of COLT 20    -SN   Secured Notes representing less than 100% of the Outstanding Amount of the COLT 20    -SN   Secured Notes to
sell or liquidate the COLT 20    -SN   Trust Estate shall be of no force and effect; and 
  

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 (d) the COLT Indenture Trustee may take any other action deemed proper by the COLT Indenture
Trustee that is not inconsistent with such direction; 
 provided, however, that, subject to Section 6.1, the COLT
Indenture Trustee need not take any action that it determines might cause it to incur any liability with respect to which the COLT Indenture Trustee shall have reasonable grounds to believe that adequate indemnity against such liability is not
assured to it or might materially adversely affect the rights of the COLT 20    -SN   Secured Noteholders not consenting to such action. 

SECTION 5.12 Waiver of Past Defaults. 

(a) Prior to the declaration of the acceleration of the maturity of the COLT 20    -SN  
Secured Notes as provided in Section 5.2, the Holders of not less than a majority of the Outstanding Amount of the COLT 20    -SN   Secured Notes may waive any past Default or Event of Default
and its consequences except a Default or Event of Default (i) in the payment of principal of or interest on any of the COLT 20    -SN   Secured Notes or (ii) in respect of a covenant or provision
hereof that cannot be modified or amended without the consent of the Holder of each such COLT 20    -SN   Secured Note. In the case of any such waiver, COLT, the COLT Indenture Trustee and the COLT
20    -SN   Secured Noteholders shall be restored to their respective former positions and rights hereunder; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereto. 
 (b) Upon any such waiver, such Default or Event of Default shall cease to exist and be deemed
to have been cured and not to have occurred (and any Event of Default arising from any such Default shall be deemed to have been cured and not to have occurred) for every purpose of this COLT Indenture; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent thereto. 
 SECTION 5.13 Undertaking for
Costs. All parties to this COLT Indenture agree, and each Holder of any COLT 20    -SN   Secured Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any Proceeding for the enforcement of any right or remedy under this COLT Indenture, or in any Proceeding against the COLT Indenture Trustee for any action taken, suffered or omitted by it as COLT Indenture Trustee, the filing
by any party litigant in such Proceeding of an undertaking to pay the costs of such Proceeding, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
such Proceeding, 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 5.13, shall not apply to: 

(a) any Proceeding instituted by the COLT Indenture Trustee; 

(b) any Proceeding instituted by any COLT 20    -SN   Secured Noteholder or group of COLT
20    -SN   Secured Noteholders holding in the aggregate more than 10% of the Outstanding Amount of the COLT 20    -SN   Secured Notes; or 

(c) any Proceeding instituted by any COLT 20    -SN   Secured Noteholder for the enforcement
of the payment of principal of or interest on any COLT 20    -SN   Secured Note on or after the respective due dates expressed in such COLT 20    -SN   Secured
Note and in this COLT Indenture (or, in the case of redemption, on or after the Redemption Date). 
  

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 SECTION 5.14 Waiver of Stay or Extension Laws. COLT covenants (to the extent that it
may lawfully do so) that it shall 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, that may affect the
covenants or the performance of this COLT Indenture. COLT (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not hinder, delay or impede the execution of any power
herein granted to the COLT Indenture Trustee, but shall suffer and permit the execution of every such power as though no such law had been enacted. 

SECTION 5.15 Action on COLT 20    -SN   Secured Notes. The COLT Indenture Trustee’s right to
seek and recover judgment on the COLT 20    -SN   Secured Notes or under this COLT Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this
COLT Indenture. Neither the lien of this COLT Indenture in the COLT 20    -SN   Collateral or the lien of the VAULT Security Agreement in the Pledged Collateral nor any rights or remedies of the COLT
Indenture Trustee or the COLT 20    -SN   Secured Noteholders shall be impaired by the recovery of any judgment by the COLT Indenture Trustee against COLT or by the levy of any execution under such
judgment upon any portion of the COLT 20    -SN   Trust Estate or upon any of the assets of COLT. Any money or property collected by the COLT Indenture Trustee shall be applied in accordance with
Section 5.4(b). 
 SECTION 5.16 Performance and Enforcement of Certain Obligations. 

(a) Promptly following a request from the COLT Indenture Trustee to do so and at the Servicer’s expense, COLT agrees to take all such
lawful action as the COLT Indenture Trustee may request to compel or secure the performance and observance by the Seller and the Servicer of their respective obligations to COLT under or in connection with the COLT
20    -SN   Basic Documents in accordance with the terms thereof, and to exercise any and all rights, remedies, powers and privileges lawfully available to COLT under or in connection with the COLT
20    -SN   Basic Documents to the extent and in the manner directed by the COLT Indenture Trustee, including the transmission of notices of default on the part of the Seller or the Servicer thereunder and
the institution of legal or administrative actions or proceedings to compel or secure performance by the Seller or the Servicer of each of their obligations under the COLT 20    -SN   Basic Documents.

 (b) If an Event of Default has occurred and is continuing, the COLT Indenture Trustee may, and, at the
direction (which direction shall be in writing or by telephone (confirmed in writing promptly thereafter)) of the Holders of 66 2/
3% of the Outstanding Amount of the COLT 20    -SN   Secured Notes shall, exercise all rights, remedies, powers, privileges
and claims of COLT against the Seller or the Servicer under or in connection with the COLT 20    -SN   Basic Documents, including the right or power to take any action to compel or secure performance or
observance by the Seller or the Servicer of each of their obligations to COLT thereunder and to give any consent, request, notice, direction, approval, extension or waiver under the COLT 20    -SN   Basic
Documents, and any right of COLT to take such action shall be suspended. 
  

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 ARTICLE VI 

THE COLT INDENTURE TRUSTEE 

SECTION 6.1 Duties of COLT Indenture Trustee. 

(a) If an Event of Default has occurred and is continuing, the COLT Indenture Trustee shall exercise the rights and powers vested in it by
this COLT Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 

(b) Except during the continuance of an Event of Default, the COLT Indenture Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this COLT Indenture and the COLT Servicing Agreement and no implied covenants or obligations shall be read into this COLT Indenture or the COLT Servicing Agreement against the COLT Indenture Trustee.

 (c) In the absence of bad faith on its part, the COLT Indenture Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the COLT Indenture Trustee and conforming to the requirements of this COLT Indenture; provided, however, that the COLT
Indenture Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this COLT Indenture. 

(d) The COLT Indenture Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its
own willful misconduct or bad faith, except that: 
 (i) this Section 6.1(d) does not limit the
effect of Section 6.1(b); 
 (ii) the COLT Indenture Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer unless it is proved that the COLT Indenture Trustee was negligent in ascertaining the pertinent facts; and 

(iii) the COLT Indenture Trustee shall not be liable with respect to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to any provision of this COLT Indenture or any other COLT 20    -SN   Basic Document. 

(e) The COLT Indenture Trustee shall not be liable for interest on any money received by it except as the COLT Indenture Trustee may
agree in writing with COLT. 
 (f) Money held in trust by the COLT Indenture Trustee need not be segregated from other funds
except to the extent required by law or the terms of this COLT Indenture, the COLT Servicing Agreement or the other COLT 20    -SN   Basic Documents. 

 

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 (g) No provision of this COLT Indenture or any other COLT
20    -SN   Basic Document shall require the COLT Indenture Trustee to expend or risk its own funds or otherwise incur 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 to believe that repayments of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 

(h) Every provision of this COLT Indenture and each other COLT 20    -SN   Basic Document
relating to the COLT Indenture Trustee shall be subject to the provisions of this Section 6.1 and to the provisions of the TIA. 

(i) The COLT Indenture Trustee shall have no liability or responsibility for the acts or omissions of any other party to any of the COLT
20    -SN   Basic Documents. 
 (j) In no event shall the COLT Indenture Trustee be
liable for any damages in the nature of special, indirect or consequential damages, however styled, including lost profits, even if the COLT Indenture Trustee has been advised of the likelihood of such loss or damage. 

SECTION 6.2 Rights of COLT Indenture Trustee. 

(a) The COLT Indenture Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or presented by
the proper Person. The COLT Indenture Trustee need not investigate any fact or matter stated in the document. 
 (b) Before the
COLT Indenture Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel. The COLT Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such
Officer’s Certificate or Opinion of Counsel. 
 (c) The COLT Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through agents or attorneys or a custodian or nominee, and the COLT Indenture Trustee shall not be responsible for any misconduct or negligence on the part of, or for the supervision
of, any such agent, attorney, custodian or nominee appointed with due care by it hereunder. 
 (d) The COLT Indenture Trustee
shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers; provided, however, that the COLT Indenture Trustee’s conduct does not constitute willful
misconduct, negligence or bad faith. 
 (e) The COLT Indenture Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this COLT Indenture and the COLT 20    -SN   Secured Notes shall be full and complete authorization and protection from liability in respect to any action
taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel. 
 (f)
The COLT Indenture Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this COLT Indenture at the request or direction of any of the Holders pursuant to this COLT Indenture, unless such Holders shall have
offered to the COLT Indenture Trustee security or indemnity satisfactory to the COLT Indenture Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. 

 

 35 

 (g) The COLT Indenture Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the COLT Indenture Trustee,
in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit. 
 (h) The COLT
Indenture Trustee shall not be deemed to have notice of any Default, Event of Default or Servicer Default unless a Responsible Officer of the COLT Indenture Trustee has actual knowledge thereof or unless written notice of any event which is in fact
such a default is received by the COLT Indenture Trustee at the Corporate Trust Office of the COLT Indenture Trustee, and such notice references the COLT 20    -SN   Secured Notes and this COLT Indenture.

 (i) The rights, privileges, protections, immunities and benefits given to the COLT Indenture Trustee, including, its right to
be indemnified, are extended to, and shall be enforceable by, the COLT Indenture Trustee in each of its capacities hereunder. 

SECTION 6.3 COLT Indenture Trustee May Own COLT 20    -SN   Secured Notes. The COLT Indenture
Trustee in its individual or any other capacity may become the owner or pledgee of COLT 20    -SN   Secured Notes and the Secured Notes of any other Series and may otherwise deal with COLT, the Servicer or
any of their respective Affiliates with the same rights it would have if it were not COLT Indenture Trustee; provided, however, that the COLT Indenture Trustee shall comply with Sections 6.10. Any Paying Agent, Secured Note
Registrar, co-registrar or co-paying agent may do the same with like rights. 
 SECTION 6.4 COLT Indenture Trustee’s
Disclaimer. The COLT Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of any COLT 20    -SN   Basic Document, including this COLT Indenture or
the COLT 20    -SN   Secured Notes, it shall not be accountable for COLT’s use of the proceeds from the COLT 20    -SN   Secured Notes, and it shall not be
responsible for any statement of COLT in the COLT Indenture or in any document issued in connection with the sale of any COLT 20    -SN   Secured Notes or in the COLT
20    -SN   Secured Notes other than the COLT Indenture Trustee’s certificate of authentication. 

SECTION 6.5 Notice of Default. If a Default occurs and is continuing and if it is known to the COLT Indenture Trustee, the COLT
Indenture Trustee shall mail to each COLT 20    -SN   Secured Noteholder notice of the Default within 90 days after it occurs. Except in the case of a Default in payment of principal or of interest on any
COLT 20    -SN   Secured Note, the COLT Indenture Trustee may withhold the notice if and so long as it in good faith determines that withholding the notice is in the interest of the COLT
20    -SN   Secured Noteholders. 
  

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 SECTION 6.6 Reports by COLT Indenture Trustee. 

(a) To the extent any COLT 20    -SN   Secured Noteholder does not receive such documents or
information directly, the COLT Indenture Trustee shall deliver to each such COLT 20    -SN   Secured Noteholder, as applicable, the documents and information set forth in Article VII, and, in
addition, all such information with respect to the COLT 20    -SN   Secured Notes as may be required to enable such Holder to prepare its federal and state income tax returns. 

(b) The COLT Indenture Trustee shall: 

(i) deliver to COLT, CARI, the COLT Owner Trustee, the CARAT Owner Trustee and the Servicer a report of its assessment of
compliance with the minimum Servicing Criteria regarding general servicing, cash and collection administration, investor remittances and reporting, and pool asset administration during the preceding calendar year, including disclosure of any
material instance of non-compliance identified by the COLT Indenture Trustee, as required by Rule 13a-18 and Rule 15d-18 of the Exchange Act, and Item 1122 of Regulation AB under the Securities Act; 

(ii) cause a firm of registered public accountants that is qualified and independent within the meaning of Rule 2-01 of
Regulation S-X under the Securities Act to deliver to COLT, CARI, the COLT Owner Trustee, the CARAT Owner Trustee and the Servicer an attestation report that satisfies the requirements of Rule 13a-18 or Rule 15d-18 under the Exchange Act, as
applicable, on the assessment of compliance with Servicing Criteria with respect to the prior calendar year for inclusion in COLT’s or the Trust’s 10-K filing; such attestation report shall be in accordance with Rule 1-02(a)(3) and Rule
2-02(g) of Regulation S-X under the Securities Act and the Exchange Act; and 
 (iii) deliver to COLT, CARI and
any other Person that will be responsible for signing the certification (a “Sarbanes Certification”) required by Rule 13a-14(d) and Rule 15d-14(d) under the Exchange Act (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) on
behalf of COLT, CARI or the Trust with respect to the CARAT 20    -SN   securitization transaction a certification substantially in the form attached hereto as Exhibit B or such form as mutually agreed
upon by COLT, CARI and the COLT Indenture Trustee; the COLT Indenture Trustee acknowledges that the parties identified in this clause (iii) may rely on the certification provided by the COLT Indenture Trustee pursuant to such clause in signing
a Sarbanes Certification and filing such with the Commission. 
 (c) The reports referred to in Section 6.6(b) shall be
delivered on or before March 15 of each year that a 10-K filing is required to be filed by COLT or the Trust, beginning March 15, 20    . 

SECTION 6.7 Compensation; Indemnity. 

(a) COLT shall cause the Servicer to pay to the COLT Indenture Trustee from time to time such compensation for its services as is set
forth in the COLT Servicing Agreement. 
  

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 The COLT Indenture Trustee’s compensation shall not be limited by any law on compensation of a trustee
of an express trust. COLT shall cause the Servicer pursuant to the COLT Servicing Agreement to reimburse the COLT Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the
compensation for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the COLT Indenture Trustee’s agents, external counsel, accountants and experts. COLT shall cause the Servicer to
indemnify the COLT Indenture Trustee in accordance with the COLT Servicing Agreement. 
 (b) COLT’s obligations to the COLT
Indenture Trustee pursuant to Section 6.7(a) shall survive the discharge of this COLT Indenture. When the COLT Indenture Trustee incurs expenses after the occurrence of a Default specified in Section 5.1(e) or (f), the
expenses are intended to constitute expenses of administration under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or similar law. 

SECTION 6.8 Replacement of COLT Indenture Trustee. 

(a) The COLT Indenture Trustee may at any time give notice of its intent to resign by so notifying COLT and the COLT
20    -SN   Secured Noteholders; provided, however, that no such resignation shall become effective and the COLT Indenture Trustee shall not resign prior to the time set forth in
Section 6.8(c). The Holders of a majority of the Outstanding Amount of the COLT 20    -SN   Secured Notes may remove the COLT Indenture Trustee by so notifying the COLT Indenture Trustee and
may appoint a successor COLT Indenture Trustee. Such resignation or removal shall become effective in accordance with Section 6.8(c). COLT shall remove the COLT Indenture Trustee if: 

(i) the COLT Indenture Trustee fails to comply with Section 6.11; 

(ii) the COLT Indenture Trustee is adjudged bankrupt or insolvent; 

(iii) a receiver or other public officer takes charge of the COLT Indenture Trustee or its property; or 

(iv) the COLT Indenture Trustee otherwise becomes incapable of acting. 

(b) If the COLT Indenture Trustee gives notice of its intent to resign or is removed or if a vacancy exists in the office of COLT
Indenture Trustee for any reason (the COLT Indenture Trustee in such event being referred to herein as the retiring COLT Indenture Trustee), COLT shall promptly appoint and designate a successor COLT Indenture Trustee. 

(c) A successor COLT Indenture Trustee shall deliver a written acceptance of its appointment and designation to the retiring COLT
Indenture Trustee and to COLT. Thereupon the resignation or removal of the retiring COLT Indenture Trustee shall become effective, and the successor COLT Indenture Trustee shall have all the rights, powers and duties of the COLT Indenture Trustee
under this COLT Indenture. The successor COLT Indenture Trustee shall mail a notice of its succession to the COLT 20    -SN   Secured Noteholders. The retiring COLT Indenture Trustee shall promptly
transfer all property held by it as COLT Indenture Trustee to the successor COLT Indenture Trustee. 
  

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 (d) If a successor COLT Indenture Trustee does not take office within 60 days after the
retiring COLT Indenture Trustee gives notice of its intent to resign or is removed, the retiring COLT Indenture Trustee, COLT or the Holders of a majority of the Outstanding Amount of the COLT 20    -SN  
Secured Notes may petition any court of competent jurisdiction for the appointment and designation of a successor COLT Indenture Trustee. 

(e) If the COLT Indenture Trustee fails to comply with Section 6.11, any COLT
20    -SN   Secured Noteholder may petition any court of competent jurisdiction for the removal of the COLT Indenture Trustee and the appointment of a successor COLT Indenture Trustee. 

(f) Notwithstanding the replacement of the COLT Indenture Trustee pursuant to this Section 6.8, COLT’s obligations under
Section 6.7 and the Servicer’s corresponding obligations under the COLT Servicing Agreement shall continue for the benefit of the retiring COLT Indenture Trustee. 

SECTION 6.9 Merger or Consolidation of COLT Indenture Trustee. 

(a) Any corporation into which the COLT Indenture Trustee may be merged or with which it may be consolidated, or any corporation resulting
from any merger or consolidation to which the COLT Indenture Trustee shall be a party, or any corporation succeeding to the corporate trust business of the COLT Indenture Trustee, shall be the successor of the COLT Indenture Trustee under this COLT
Indenture; provided, however, that such corporation shall be eligible under the provisions of Section 6.11, without the execution or filing of any instrument or any further act on the part of any of the parties to this COLT
Indenture, anything in this COLT Indenture to the contrary notwithstanding. 
 (b) If at the time such successor or successors
by merger or consolidation to the COLT Indenture Trustee shall succeed to the trusts created by this COLT Indenture, any of the COLT 20    -SN   Secured Notes shall have been authenticated but not
delivered, any such successor to the COLT Indenture Trustee may adopt the certificate of authentication of any predecessor trustee, and deliver such COLT 20    -SN   Secured Notes so authenticated; and in
case at that time any of the COLT 20    -SN   Secured Notes shall not have been authenticated, any successor to the COLT Indenture Trustee may authenticate such COLT
20    -SN   Secured Notes either in the name of any predecessor hereunder or in the name of the successor to the COLT Indenture Trustee. In all such cases such certificate of authentication shall have the
same full force as is provided anywhere in the COLT 20    -SN   Secured Notes or herein with respect to the certificate of authentication of the COLT Indenture Trustee. 

SECTION 6.10 Appointment of Co-COLT Indenture Trustee or Separate COLT Indenture Trustee. 

(a) Notwithstanding any other provisions of this COLT Indenture, at any time, for the purpose of meeting any legal requirement of any
jurisdiction in which any part of the COLT 20    -SN   Trust Estate may at the time be located, the COLT Indenture Trustee shall have 

 

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the power and may execute and deliver all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, jointly with the COLT Indenture Trustee, or separate indenture
trustees, of all or any part of the COLT 20    -SN   Trust Estate and to vest in such Person or Persons, in such capacity and for the benefit of the COLT
20    -SN   Secured Noteholders, such title to the COLT 20    -SN   Trust Estate, or any part hereof, and, subject to the other provisions of this
Section 6.10, such powers, duties, obligations, rights and trusts as the COLT Indenture Trustee may consider necessary or desirable. No co-indenture trustee or separate indenture trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.11 and no notice to COLT 20    -SN   Secured Noteholders of the appointment of any co-indenture trustee or separate indenture trustee shall be
required under Section 6.8. 
 (b) Every separate indenture trustee and co-indenture trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and conditions: 
 (i) all rights,
powers, duties and obligations conferred or imposed upon the COLT Indenture Trustee shall be conferred or imposed upon and exercised or performed by the COLT Indenture Trustee and such separate trustee or co-trustee jointly (it being understood that
such separate indenture trustee or co-indenture trustee is not authorized to act separately without the COLT Indenture Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are
to be performed the COLT Indenture Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the COLT
20    -SN   Trust Estate or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the COLT Indenture
Trustee; 
 (ii) no co-indenture trustee or separate indenture trustee hereunder shall be personally liable by
reason of any act or omission of any other co-indenture trustee or separate indenture trustee hereunder; and 

(iii) the COLT Indenture Trustee may at any time accept the resignation of or remove any separate indenture trustee or
co-indenture trustee. 
 (c) Any notice, request or other writing given to the COLT Indenture Trustee shall be deemed to have
been given to each of the then separate indenture trustees and co-indenture trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this COLT Indenture and the conditions of
this Article VI. Each separate indenture trustee and co-indenture trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the COLT
Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this COLT Indenture, specifically including every provision of this COLT Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the COLT Indenture Trustee. Every such instrument shall be filed with the COLT Indenture Trustee. 
  

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 (d) Any separate indenture trustee or co-indenture trustee may at any time appoint the COLT
Indenture Trustee as its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this COLT Indenture on its behalf and in its name. If any separate indenture trustee
or co-indenture trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the COLT Indenture Trustee, to the extent permitted by law, without
the appointment of a new or successor co-indenture trustee or successor indenture trustee. 
 SECTION 6.11 Eligibility;
Disqualification. The COLT Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a). The COLT Indenture Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published
annual report of condition and (unless waived by Moody’s, if Moody’s is rating the COLT 20    -SN   Secured Notes) it shall have a long term unsecured debt rating of Baa3 or better by
Moody’s. The COLT Indenture Trustee shall comply with TIA § 310(b); provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities of COLT
are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met. 
 SECTION 6.12
Preferential Collection of Claims Against COLT. The COLT Indenture Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A trustee who has resigned or been removed shall be subject to
TIA § 311(a) to the extent indicated therein. 
 SECTION 6.13 Representations and Warranties of COLT Indenture
Trustee. The COLT Indenture Trustee represents and warrants as of the Series 20    -SN   Closing Date that: 

(a) the COLT Indenture Trustee (i) is a national banking association duly organized, validly existing and in good standing under the
laws of the United States of America and (ii) satisfies the eligibility requirements set forth in Section 6.11; 

(b) the COLT Indenture Trustee has full power, authority and legal right to execute, deliver and perform this COLT Indenture and any
other COLT 20    -SN   Basic Document to which it is a party, and has taken all necessary action to authorize the execution, delivery and performance by it of this COLT Indenture and any other COLT
20    -SN   Basic Document to which it is a party; 
 (c) the execution, delivery
and performance by the COLT Indenture Trustee of this COLT Indenture and any other COLT 20    -SN   Basic Document to which it is a party (i) shall not violate any provision of any law or regulation
governing the banking and trust powers of the COLT Indenture Trustee or any order, writ, judgment or decree of any court, arbitrator, or Governmental Authority applicable to the COLT Indenture Trustee or any of its assets, (ii) shall not
violate any provision of the corporate charter or by-laws of the COLT Indenture Trustee and (iii) shall not violate any provision of, or constitute, with or without notice or lapse of time, a default under, or result in the creation or
imposition of any Lien on any properties included in the COLT 20    -SN   Trust Estate pursuant to the provisions of any mortgage, indenture, contract,

  

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agreement or other undertaking to which it is a party, which violation, default or Lien could reasonably be expected to have a materially adverse effect on the COLT Indenture Trustee’s
performance or ability to perform its duties under this COLT Indenture and any other COLT 20    -SN   Basic Document to which it is a party or on the transactions contemplated hereunder and thereunder;

 (d) the execution, delivery and performance by the COLT Indenture Trustee of this COLT Indenture and any other COLT
20    -SN   Basic Document to which it is a party shall not require the authorization, consent or approval of, the giving of notice to, the filing or registration with, or the taking of any other action in
respect of, any Governmental Authority or agency regulating the banking and corporate trust activities of the COLT Indenture Trustee; and 

(e) this COLT Indenture and any other COLT 20    -SN   Basic Document to which it is a party
have been duly executed and delivered by the COLT Indenture Trustee and constitutes the legal, valid and binding agreement of the COLT Indenture Trustee, enforceable in accordance with their terms. 

SECTION 6.14 COLT Indenture Trustee May Enforce Claims Without Possession of COLT 20    -SN   Secured
Notes. All rights of action and claims under this COLT Indenture or the COLT 20    -SN   Secured Notes may be prosecuted and enforced by the COLT Indenture Trustee without the possession of any of the
COLT 20    -SN   Secured Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the COLT Indenture Trustee shall be brought in its own name as COLT
Indenture Trustee. Any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the COLT Indenture Trustee, its agents and counsel, be for the ratable benefit of the COLT
20    -SN   Secured Noteholders in respect of which such judgment has been obtained. 

SECTION 6.15 Suit for Enforcement. If an Event of Default shall occur and be continuing, the COLT Indenture Trustee, in its
discretion may, subject to the provisions of Section 6.1, proceed to protect and enforce its rights and the rights of the COLT 20    -SN   Secured Noteholders under this COLT Indenture by a
Proceeding whether for the specific performance of any covenant or agreement contained in this COLT Indenture or in aid of the execution of any power granted in this COLT Indenture or for the enforcement of any other legal, equitable or other remedy
as the COLT Indenture Trustee, being advised by counsel, shall deem necessary to protect and enforce any of the rights of the COLT Indenture Trustee or the COLT 20    -SN   Secured Noteholders. 

SECTION 6.16 Rights of COLT 20    -SN   Secured Noteholders to Direct COLT Indenture Trustee. The
Holders of not less than a majority of the Outstanding Amount of the COLT 20    -SN   Secured Notes, shall have the right to direct the time, method and place of conducting any Proceeding for any remedy
available to the COLT Indenture Trustee or exercising any trust or power conferred on the COLT Indenture Trustee; provided, however, that subject to Section 6.1, the COLT Indenture Trustee shall have the right to decline to
follow any such direction if the COLT Indenture Trustee being advised by counsel determines that the action so directed may not lawfully be taken, or if the COLT Indenture Trustee in good faith shall, by a Responsible Officer, determine that the
proceedings so directed would be illegal or 
  

 42 

 
subject it to personal liability; and provided, further, that nothing in this COLT Indenture shall impair the right of the COLT Indenture Trustee to take any action deemed proper by
the COLT Indenture Trustee and which is not inconsistent with such direction by the COLT 20    -SN   Secured Noteholders. 

ARTICLE VII 
 COLT
20    -SN   SECURED NOTEHOLDERS’ LISTS AND REPORTS 
 SECTION 7.1 COLT to
Furnish COLT Indenture Trustee Names and Addresses of COLT 20    -SN   Secured Noteholders. COLT shall furnish or cause to be furnished by the Servicer to the COLT Indenture Trustee (a) not more than five days
before each Payment Date, a list, in such form as the COLT Indenture Trustee may reasonably require, of the names and addresses of the Holders of COLT 20    -SN   Secured Notes as of the close of business
on the related Record Date, and (b) at such other times as the COLT Indenture Trustee may request in writing, within 14 days after receipt by COLT of any such request, a list of similar form and content as of a date not more than 10 days prior
to the time such list is furnished; provided, however, that so long as the COLT Indenture Trustee is the Secured Note Registrar, no such list shall be required to be furnished. 

SECTION 7.2 Preservation of Information, Communications to COLT 20    -SN   Secured Noteholders.

 (a) The COLT Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of
the Holders of COLT 20    -SN   Secured Notes contained in the most recent list furnished to the COLT Indenture Trustee as provided in Section 7.1 and the names and addresses of Holders of COLT
20    -SN   Secured Notes received by the COLT Indenture Trustee in its capacity as Secured Note Registrar. The COLT Indenture Trustee may destroy any list furnished to it as provided in such
Section 7.1 upon receipt of a new list so furnished. 
 (b) COLT
20    -SN   Secured Noteholders may communicate pursuant to TIA § 312(b) with other COLT 20    -SN   Secured Noteholders with respect to their rights under
this COLT Indenture or under the COLT 20    -SN   Secured Notes. 
 (c) COLT, the
COLT Indenture Trustee and the Secured Note Registrar shall have the protection of TIA § 312(c). 
 SECTION 7.3 Reports
by COLT 
 (a) COLT shall: 

(i) file with the COLT Indenture Trustee within 15 days after COLT is required to file the same with the Commission,
copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which COLT may be required to file with
the Commission pursuant to Section 13 or 15(d) of the Exchange Act or Item 1122 of Regulation AB; 
  

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 (ii) file with the COLT Indenture Trustee and the Commission in accordance
with rules and regulations prescribed from time to time by the Commission such additional information, documents and reports with respect to compliance by COLT with the conditions and covenants of this COLT Indenture as may be required from time to
time by such rules and regulations; and 
 (iii) supply to the COLT Indenture Trustee (and the COLT Indenture
Trustee shall transmit by mail to all COLT 20    -SN   Secured Noteholders described in TIA § 313(c)) such summaries of any information, documents and reports required to be filed by the Issuer
pursuant to clauses (i) and (ii) of this Section 7.3(a) as may be required by rules and regulations prescribed from time to time by the Commission. 

(b) Unless COLT otherwise determines, the fiscal year of COLT shall end on December 31 of such year. 

SECTION 7.4 Reports by Trustee. If required by TIA § 313(a),within 60 days after each August 15, beginning with
August 15, 20    , the COLT Indenture Trustee shall mail to each COLT 20    -SN   Secured Noteholder as required by TIA § 313(c) a brief report dated as of such date
that complies with TIA § 313(a). The COLT Indenture Trustee also shall comply with TIA § 313(b). A copy of any report delivered pursuant to this Section 7.4(a) shall, at the time of its mailing to COLT
20    -SN   Secured Noteholders, be filed by the COLT Indenture Trustee with the Commission and each stock exchange, if any, on which the COLT 20    -SN  
Secured Notes are listed. COLT shall notify the COLT Indenture Trustee if and when the COLT 20    -SN   Secured Notes are listed on any stock exchange. 

ARTICLE VIII 

ACCOUNTS, DISBURSEMENTS AND RELEASES 

SECTION 8.1 Collection of Money. Except as otherwise expressly provided herein, the COLT Indenture Trustee may demand payment or
delivery of, and shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the COLT Indenture Trustee pursuant to this COLT
Indenture and the COLT 20    -SN   Basic Documents. The COLT Indenture Trustee shall apply all such money received by it with respect to the COLT 20    -SN  
Trust Estate as provided in this COLT Indenture, the COLT Servicing Agreement and any other COLT 20    -SN   Basic Document to which it is a party. Except as otherwise expressly provided in this COLT
Indenture, if any default occurs in the making of any payment or performance under any agreement or instrument that is part of the COLT 20    -SN   Trust Estate, the COLT Indenture Trustee may take such
action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate Proceedings. Any such action shall be without prejudice to any right to claim an Event of Default under this COLT Indenture
and any right to proceed thereafter as provided in Article V. 
 SECTION 8.2 Designated Accounts; Allocations;
Payments. 
 (a) On or prior to the Series 20    -SN   Closing Date, COLT shall
cause the Servicer to establish and maintain, in the name of the COLT Indenture Trustee, for the benefit of the COLT 20    -SN   Secured Noteholders, the Designated Accounts in accordance with the COLT
Servicing Agreement. 
  

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 (b) On or before each Payment Date, (i) amounts shall be deposited in the COLT
Collection Account as provided in Section 3.03(a) and (b) of the COLT Servicing Agreement and (ii) the Aggregate Secured Note Interest Distributable Amount for such Payment Date, the Secured Note Principal Distributable Amount
for such Payment Date and all other amounts payable on such Payment Date pursuant to Section 3.03(c) of the COLT Servicing Agreement, shall be transferred from the COLT Collection Account to the COLT
20    -SN   Secured Noteholders and the CARAT Collection Account, as applicable, as and to the extent provided in Section 3.03(c) of the COLT Servicing Agreement. 

SECTION 8.3 General Provisions Regarding Designated Accounts. 

(a) So long as no Default or Event of Default shall have occurred and be continuing, all or a portion of the funds in the Designated
Accounts shall be invested in Eligible Investments and reinvested by the COLT Indenture Trustee upon a COLT Order, subject to the provisions of the COLT Servicing Agreement. COLT shall not direct the COLT Indenture Trustee to make any investment of
any funds or to sell any investment held in any of the Designated Accounts unless the security interest granted and perfected in such account shall continue to be perfected in such investment or the proceeds of such sale, in either case without any
further action by any Person, and, in connection with any direction to the COLT Indenture Trustee to make any such investment or sale, if requested by the COLT Indenture Trustee, COLT shall deliver to the COLT Indenture Trustee an Opinion of Counsel
acceptable to the COLT Indenture Trustee, to such effect. 
 (b) Subject to Section 6.1(c), the COLT Indenture
Trustee shall not in any way be held liable by reason of any insufficiency in any of the Designated Accounts resulting from any loss on any Eligible Investment included therein except for losses attributable to the COLT Indenture Trustee’s
failure to make payments on such Eligible Investments issued by the COLT Indenture Trustee, in its commercial capacity as principal obligor and not as trustee, in accordance with their terms. 

(c) If (i) COLT shall have failed to give written investment directions for any funds on deposit in the Designated Accounts to the
COLT Indenture Trustee by 11:00 A.M., New York City time (or such other time as may be agreed by COLT and the COLT Indenture Trustee) on any Business Day or (ii) a Default or Event of Default shall have occurred and be continuing with respect
to the COLT 20    -SN   Secured Notes but the COLT 20    -SN   Secured Notes shall not have been declared due and payable pursuant to Section 5.2, or
(iii) if the COLT 20    -SN   Secured Notes shall have been declared due and payable following an Event of Default, but amounts collected or receivable from the COLT
20    -SN   Trust Estate are being applied in accordance with Section 5.5 as if there had not been such a declaration, then the COLT Indenture Trustee shall, to the fullest extent practicable,
invest and reinvest funds in the Designated Accounts in [Goldman Sachs Financial Square Prime Obligations Fund, Institutional Shares, # 462.]” 
  

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 SECTION 8.4 Release of the COLT 20    -SN   Trust
Estate. 
 (a) Subject to the payment of its fees and expenses pursuant to Section 6.7, the COLT Indenture
Trustee may, and when required by the provisions of this COLT Indenture shall, execute instruments to release property from the Lien of this COLT Indenture, or convey the COLT Indenture Trustee’s interest in the same, in a manner and under
circumstances that are consistent with the provisions of this COLT Indenture. No party relying upon an instrument executed by the COLT Indenture Trustee as provided in this Article VIII, shall be bound to ascertain the COLT Indenture
Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any monies. 

(b) The COLT Indenture Trustee shall, at such time as there are no COLT 20    -SN   Secured
Notes Outstanding and all sums due to the COLT Indenture Trustee pursuant to Section 6.7 and any CARAT Collection Account Shortfall Amounts pursuant to Section 3.03(c) of the COLT Servicing Agreement have been paid, notify
COLT thereof in writing and upon receipt of a COLT Request, release any remaining portion of the COLT 20    -SN   Trust Estate that secured the COLT 20    -SN  
Secured Notes from the Lien of this COLT Indenture and release to COLT or any other Person entitled thereto any funds then on deposit in the Designated Accounts. The COLT Indenture Trustee shall release property from the lien of this COLT Indenture
pursuant to this Section 8.4(b) only upon receipt by it of a COLT Request, an Officer’s Certificate and an Opinion of Counsel and (if required by the TIA) Independent Certificate in accordance with TIA §§ 314(c) and
314(d)(1) meeting the applicable requirements of Section 11.1. 
 SECTION 8.5 Opinion of Counsel. The COLT
Indenture Trustee shall receive at least seven days’ notice when requested by COLT to take any action pursuant to Section 8.4, accompanied by copies of any instruments involved, and the COLT Indenture Trustee shall also require as a
condition to such action, an Opinion of Counsel, in form and substance satisfactory to the COLT Indenture Trustee, stating the legal effect of any such action, outlining the steps required to complete the same, and concluding that all conditions
precedent to the taking of such action have been complied with and such action shall not materially and adversely impair the security for the COLT 20    -SN   Secured Notes or the rights of the COLT
20    -SN   Secured Noteholders in contravention of the provisions of this COLT Indenture; provided, however, that such Opinion of Counsel shall not be required to express an opinion as to
the fair value of the COLT 20    -SN   Trust Estate. Counsel rendering any such opinion may rely, without independent investigation, on the accuracy and validity of any certificate or other instrument
delivered to the COLT Indenture Trustee pursuant to the provisions of this COLT Indenture in connection with any such action. 

ARTICLE IX 

SUPPLEMENTAL INDENTURES 

SECTION 9.1 Supplemental Indentures Without Consent of COLT 20    -SN   Secured Noteholders.

 (a) Without the consent of the Holders of any COLT 20    -SN   Secured Notes but
with prior notice to the Rating Agencies (if any Rated Notes are outstanding), COLT and the COLT Indenture Trustee, when authorized by a COLT Order, at any time and from time to time, may enter into one or more indentures supplemental hereto (which
shall conform to the 
  

 46 

 
provisions of the Trust Indenture Act as in force at the date of the execution thereof), in form satisfactory to the COLT Indenture Trustee, for any of the following purposes: 

(i) to correct or amplify the description of any property at any time subject to the lien of this COLT Indenture, or
better to assure, convey and confirm unto the COLT Indenture Trustee any property subject or required to be subjected to the Lien of this COLT Indenture, or to subject additional property to the Lien of this COLT Indenture; 

(ii) to evidence the succession, in compliance with Section 3.11 and the applicable provisions hereof, of
another Person to COLT, and the assumption by any such successor of the covenants of COLT contained herein and in the COLT 20    -SN   Secured Notes; 

(iii) to add to the covenants of COLT for the benefit of the COLT 20    -SN  
Secured Noteholders or to surrender any right or power herein conferred upon COLT; 
 (iv) to convey, transfer,
assign, mortgage or pledge any property to or with the COLT Indenture Trustee; 
 (v) to cure any ambiguity or to
correct or supplement any provision herein or in any supplemental indenture which may be inconsistent with any other provision herein or in any supplemental indenture or in any COLT 20    -SN   Basic
Document; 
 (vi) to evidence and provide for the acceptance of the appointment hereunder by a successor or
additional indenture trustee with respect to the COLT 20    -SN   Secured Notes and the COLT Indenture and to add to or change any of the provisions of this COLT Indenture as shall be necessary to
facilitate the administration of the trust hereunder by more than one indenture trustee, pursuant to the requirements of Article VI; or 

(vii) to modify, eliminate or add to the provisions of this COLT Indenture to such extent as shall be necessary to effect
the qualification of this COLT Indenture under the TIA or under any similar federal statute hereafter enacted and to add to this COLT Indenture such other provisions as may be expressly required by the TIA, and the COLT Indenture Trustee is hereby
authorized to join in the execution of any such supplemental indenture and to make any further appropriate agreements and stipulations that may be therein contained. 

(b) COLT and the COLT Indenture Trustee, when authorized by a COLT Order, may, also without the consent of any of the COLT
20    -SN   Secured Noteholders but with prior notice to the Rating Agencies (if any Rated Notes are outstanding), at any time and from time to time enter into one or more indentures supplemental hereto
for the purpose of adding any provisions to, changing in any manner, or eliminating any of the provisions of, this COLT Indenture or modifying in any manner the rights of the COLT 20    -SN   Secured
Noteholders under this COLT Indenture; provided, however, that such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any COLT
20    -SN   Secured Noteholder unless such COLT 20    -SN   Secured Noteholder’s consent is obtained. 

 

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 SECTION 9.2 Supplemental Indentures with Consent of COLT
20    -SN   Secured Noteholders. 
 (a) COLT and the COLT Indenture Trustee, when authorized by
a COLT Order, also may, with prior notice to the Rating Agencies (if any Rated Notes are outstanding) and with the written consent of the Holders of not less than a majority of the Outstanding Amount of COLT
20    -SN   Secured Notes affected in any material respect thereby, by Act of such Holders delivered to COLT and the COLT Indenture Trustee, enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to, changing in any manner, or eliminating any of the provisions of, this COLT Indenture or modifying in any manner the rights of the COLT 20    -SN   Secured
Noteholders under this COLT Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding COLT 20    -SN   Secured Note
affected thereby: 
 (i) change the due date of any installment of principal of or interest on any COLT
20    -SN   Secured Note, or reduce the principal amount thereof, the interest rate applicable thereto, change any place of payment where, or the coin or currency in which, any COLT
20    -SN   Secured Note or any interest thereon is payable, or impair the right to institute suit for the enforcement of the provisions of this COLT Indenture requiring the application of funds available
therefor, as provided in Article V, to the payment of any such amount due on the COLT 20    -SN   Secured Notes on or after the respective due dates thereof; 

(ii) reduce the percentage of the Outstanding Amount of the COLT 20    -SN  
Secured Notes, the consent of the Holders of which is required for any such supplemental indenture or the consent of the Holders of which is required for any waiver of compliance with certain provisions of this COLT Indenture or certain defaults
hereunder and their consequences as provided for in this COLT Indenture; 
 (iii) modify or alter the provisions
of the proviso to the definition of the term “Outstanding”; 
 (iv) reduce the percentage of the
Outstanding Amount of the COLT 20    -SN   Secured Notes required to direct the COLT Indenture Trustee to sell or liquidate the COLT 20    -SN   Trust Estate
pursuant to Section 5.4 if the proceeds of such sale would be insufficient to pay the principal amount of and accrued but unpaid interest on the Outstanding COLT 20    -SN   Secured Notes;

 (v) modify any provision of this Section 9.2 to decrease the required minimum percentage of the
Outstanding Amount of the COLT 20    -SN   Secured Notes necessary to approve any amendments to any provisions of this COLT Indenture or any of the COLT
20    -SN   Basic Documents; 
  

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 (vi) modify any of the provisions of this COLT Indenture in such manner as
to affect the calculation of the amount of any payment of interest or principal due on any COLT 20    -SN   Secured Notes on any Payment Date (including the calculation of any of the individual components
of such calculation), or modify or alter the provisions of this COLT Indenture regarding the voting of COLT 20    -SN   Secured Notes held by COLT, the Seller or any Affiliate of either of them; or

 (vii) permit the creation of any Lien ranking prior to or on a parity with the Lien of this COLT Indenture
with respect to any part of the COLT 20    -SN   Collateral or of the VAULT Security Agreement with respect to any part of the Pledged Collateral or, except as otherwise permitted or contemplated herein,
terminate the Lien of this COLT Indenture on any property at any time subject hereto or deprive the Holder of any COLT 20    -SN   Secured Note of the security afforded by the lien of this COLT Indenture.

 (b) The COLT Indenture Trustee may in its discretion determine whether or not any COLT
20    -SN   Secured Notes would be affected (such that the consent of each Secured Noteholder would be required) by any supplemental indenture proposed pursuant to this Section 9.2 and any such
determination shall be conclusive and binding upon the Holders of all COLT 20    -SN   Secured Notes, whether authenticated and delivered thereunder before or after the date upon which such supplemental
indenture becomes effective. The COLT Indenture Trustee shall not be liable for any such determination made in good faith. 

(c) It shall be sufficient if an Act of COLT 20    -SN   Secured Noteholders approves the
substance, but not the form, of any proposed supplemental indenture. 
 (d) Promptly after the execution by COLT and the COLT
Indenture Trustee of any supplemental indenture pursuant to this Section 9.2, the COLT Indenture Trustee shall mail to the COLT 20    -SN   Secured Noteholders to which such amendment or
supplemental indenture relates a notice setting forth in general terms the substance of such supplemental indenture. Any failure of the COLT Indenture Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture. 
 SECTION 9.3 Execution of Supplemental Indentures. In
executing, or permitting the additional trusts created by any supplemental indenture permitted by this Article IX or the modifications thereby of the trusts created by this COLT Indenture, the COLT Indenture Trustee shall be entitled to
receive, and subject to Sections 6.1 and 6.2, 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 Article IX. The COLT
Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the COLT Indenture Trustee’s own rights, duties, liabilities or immunities under this COLT Indenture or otherwise. 

SECTION 9.4 Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof,
this COLT Indenture shall be and be deemed to be modified and amended in accordance therewith with respect to the Secured Notes affected thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and

  

 49 

 
immunities under this COLT Indenture of the COLT Indenture Trustee, COLT and the COLT 20    -SN   Secured Noteholders shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this COLT Indenture
for any and all purposes. 
 SECTION 9.5 Conformity with Trust Indenture Act. Every amendment of this COLT Indenture and
every supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the TIA as then in effect so long as this COLT Indenture shall then be qualified under the TIA. 

SECTION 9.6 Reference in COLT 20    -SN   Secured Notes to Supplemental Indentures. COLT
20    -SN   Secured Notes authenticated and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if required by the COLT Indenture Trustee shall, bear a
notation in form approved by the COLT Indenture Trustee as to any matter provided for in such supplemental indenture. If COLT or the COLT Indenture Trustee shall so determine, new COLT 20    -SN   Secured
Notes so modified as to conform, in the opinion of the COLT Indenture Trustee and COLT, to any such supplemental indenture may be prepared and executed by COLT and authenticated and delivered by the COLT Indenture Trustee in exchange for Outstanding
COLT 20    -SN   Secured Notes of a like Secured Note Principal Balance. 
 ARTICLE X

 REDEMPTION OF COLT 20    -SN   SECURED NOTES 

SECTION 10.1 Redemption. The COLT 20    -SN   Secured Notes are subject to redemption
in whole, but not in part, upon the exercise by the Servicer of its option to purchase the Series 20    -SN   Lease Assets pursuant to Section 6.01 of the COLT Servicing Agreement. The Payment Date on
which such redemption shall occur is the Optional Purchase Date identified by the Servicer in its notice of exercise of such purchase option (the “Redemption Date”). The purchase price for the COLT
20    -SN   Secured Notes shall be equal to the applicable Redemption Price. The Servicer shall furnish the COLT Indenture Trustee and the COLT 20    -SN  
Secured Noteholders notice of such optional repurchase pursuant to Section 6.0 of the COLT Servicing Agreement and of the redemption of the COLT 20    -SN   Secured Notes, which notice shall
identify the place where the COLT 20    -SN   Secured Notes are to be surrendered for payment of the Redemption Price. The COLT Indenture Trustee (based on such notice) shall withdraw from the COLT
Collection Account and pay to the COLT 20    -SN   Secured Noteholders on the Redemption Date, the aggregate Redemption Price of the COLT 20    -SN   Secured
Notes. 
 SECTION 10.2 COLT 20    -SN   Secured Notes Payable on Redemption Date. The COLT
20    -SN   Secured Notes shall, following notice of redemption as required by Section 6.1 of the COLT Servicing Agreement, on the Redemption Date cease to be Outstanding for purposes of this
COLT Indenture and shall thereafter represent only the right to receive the applicable Redemption Price and (unless COLT shall default in the payment of such Redemption Price) no interest shall accrue on such Redemption Price for any period after
the date to which accrued interest is calculated for purposes of calculating such Redemption Price. 
  

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 ARTICLE XI 

MISCELLANEOUS 

SECTION 11.1 Compliance Certificates and Opinions, Etc. 

(a) Upon any application or request by COLT to the COLT Indenture Trustee to take any action under any provision of this COLT Indenture,
COLT shall furnish to the COLT Indenture Trustee: (i) an Officer’s Certificate stating that all conditions precedent, if any, provided for in this COLT Indenture relating to the proposed action have been complied with, (ii) an Opinion
of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with and (iii) (if required by the TIA) an Independent Certificate from a firm of certified public accountants meeting the
applicable requirements of this Section 11.1, 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 COLT Indenture, no additional
certificate or opinion need be furnished. Every certificate or opinion with respect to compliance with a condition or covenant provided for in this COLT Indenture shall include: 

(i) a statement that each signatory of such certificate or opinion has read or has caused to be read such covenant or
condition and the definitions herein relating thereto; 
 (ii) 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; 

(iii) a statement that, in the judgment of each such signatory, such signatory has made such examination or investigation
as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been complied with; and 

(iv) a statement as to whether, in the opinion of each such signatory, such condition or covenant has been complied with.

 (b) (i) Prior to the deposit with the COLT Indenture Trustee of any COLT
20    -SN   Trust Estate or other property or securities that is to be made the basis for the release of any property or securities subject to the Lien of this COLT Indenture, COLT shall, in addition to
any obligation imposed in Section 11.1(a) or elsewhere in this COLT Indenture, furnish to the COLT Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each Person signing such certificate as to the fair
value (within 90 days of such deposit) to COLT of the COLT 20    -SN   Trust Estate or other property or securities to be so deposited. 

(ii) Whenever COLT is required to furnish to the COLT Indenture Trustee an Officer’s Certificate certifying or
stating the opinion of any signer thereof as to the matters described in clause (b)(i) above, COLT shall also deliver to the COLT Indenture Trustee an Independent Certificate as to the same matters, if the fair value to COLT of the COLT
20    -SN   Trust Estate and other property (such as securities) to be so deposited and of all other such securities made the basis of any such withdrawal or release since the commencement of the then
current fiscal year of COLT, as set forth in 
  

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the certificates delivered pursuant to clause (b)(i) above and this clause (b)(ii), is 10% or more of the Outstanding Amount of the COLT
20    -SN   Secured Notes, but such a certificate need not be furnished with respect to any securities so deposited, if the fair value thereof to COLT as set forth in the related Officer’s Certificate
is less than $25,000 or less than one percent of the Outstanding Amount of the COLT 20    -SN   Secured Notes. 

(iii) Other than with respect to the release of any Administrative Lease Assets, Warranty Lease Assets, Liquidating Lease
Asset or the sale or other disposition of any related Vehicle in accordance with the COLT Servicing Agreement, whenever any property or securities are to be released from the Lien of this COLT Indenture, COLT shall also furnish to the COLT Indenture
Trustee an Officer’s Certificate certifying or stating the opinion of each Person signing such certificate as to the fair value (within 90 days of such release) of the property or securities proposed to be released and stating that in the
opinion of such Person the proposed release will not impair the security under this COLT Indenture in contravention of the provisions hereof. 

(iv) Whenever COLT is required to furnish to the COLT Indenture Trustee an Officer’s Certificate
certifying or stating the opinion of any signatory thereof as to the matters described in clause (b)(iii) above, COLT shall also furnish to the COLT Indenture Trustee an Independent Certificate as to the same matters if the fair value of the
property or securities and of all other property, other than Administrative Lease Assets, Warranty Lease Assets, Liquidating Lease Asset or the sale of any other Vehicle in accordance with the COLT Servicing Agreement, or securities released from
the Lien of this COLT Indenture since the commencement of the then current calendar year, as set forth in the certificates required by clause (b)(iii) above and this clause (b)(iv), equals 10% or more of the Outstanding Amount of the
COLT 20    -SN   Secured Notes, but such certificate need not be furnished with respect to any release of securities or other property proposed to be released if the fair value thereof as set forth in the
related Officer’s Certificate is less than $25,000 or less than one percent of the Outstanding Amount of the COLT 20    -SN   Secured Notes. 

(v) Notwithstanding Section 2.10 or any other provision of this Section 11.1, COLT may (A) collect,
liquidate, sell or otherwise dispose of Series 20    -SN   Lease Assets proceeds of both as and to the extent permitted or required by the COLT 20    -SN   Basic
Documents, (B) make cash payments out of any Designated Accounts as and to the extent permitted or required by the COLT 20    -SN   Basic Documents and (C) take any other action not inconsistent
with the TIA. 
 SECTION 11.2 Form of Documents Delivered to COLT Indenture Trustee. 

(a) 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 other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  

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 (b) Any certificate or opinion of an Authorized Officer of COLT 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 his certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer or 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 Servicer, the Seller or COLT, stating that the information with respect to such factual matters is in the possession of the Servicer, the Seller or COLT, unless such 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. 
 (c) Where any
Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this COLT Indenture, they may, but need not, be consolidated and form one instrument. 

(d) Whenever in this COLT Indenture, in connection with any application or certificate or report to the COLT Indenture Trustee, it is
provided that COLT shall deliver any document as a condition of the granting of such application, or as evidence of COLT’s compliance with any term hereof, it is intended that the truth and accuracy, at the time of the granting of such
application or at the effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the right of COLT to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be construed to affect the COLT Indenture Trustee’s right to rely upon the truth and accuracy of any statement or opinion contained in any such document as provided in
Article VI. 
 SECTION 11.3 Acts of COLT 20    -SN   Secured Noteholders.

 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this COLT Indenture to
be given or taken by COLT 20    -SN   Secured Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such COLT
20    -SN   Secured Noteholders in person or by agents duly appointed in writing and shall be subject to Section 5.11; and except as herein otherwise expressly provided such action shall become
effective when such instrument or instruments are delivered to the COLT Indenture Trustee, and, where it is hereby expressly required, to COLT. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the COLT 20    -SN   Secured Noteholders, as applicable, 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 COLT Indenture and (subject to Section 6.1) conclusive in favor of the COLT Indenture Trustee and COLT, if made in the manner provided in this
Section 11.3. 
 (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved in any manner that the COLT Indenture Trustee deems sufficient. 
 (c) The ownership of COLT
20    -SN   Secured Notes shall be proved by the Secured Note Register. 
  

 53 

 (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any COLT 20    -SN   Secured Notes shall bind the Holder of every COLT 20    -SN   Secured Note issued upon the registration
thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the COLT Indenture Trustee or COLT in reliance thereon, whether or not notation of such action is made upon such COLT
20    -SN   Secured Note. 
 SECTION 11.4 Notices, Etc., to COLT Indenture
Trustee, COLT and Rating Agencies. Any request, demand, authorization, direction, notice, consent, waiver or Act of COLT 20    -SN   Secured Noteholders or other documents provided or permitted by this
COLT Indenture to be made upon, given or furnished to or filed with: 
 (a) the COLT Indenture Trustee by any COLT
20    -SN   Secured Noteholder or by COLT shall be made, given, furnished or filed in writing to or with the COLT Indenture Trustee at its Corporate Trust Office, or 

(b) COLT by the COLT Indenture Trustee or by any COLT 20    -SN   Secured Noteholder shall be
sufficient for every purpose hereunder if in writing and either sent by electronic facsimile transmission (with hard copy to follow via first class mail) or mailed, by certified mail, return receipt requested, or by overnight mail to COLT and the
COLT Owner Trustee each at the address specified in Part III of Exhibit I to the Declaration of Trust. 

COLT shall promptly transmit any notice received by it from the COLT
20    -SN   Secured Noteholders to the COLT Indenture Trustee and the COLT Indenture Trustee shall likewise promptly transmit any notice received by it from the COLT
20    -SN   Secured Noteholders to COLT. 
 (c) Notices required to be given to the
Rating Agencies by COLT, the COLT Indenture Trustee or the COLT Owner Trustee shall be delivered as specified in Part III to Exhibit A to the COLT Servicing Agreement. 

SECTION 11.5 Notices to COLT 20    -SN   Secured Noteholders; Waiver. 

(a) Where this COLT Indenture provides for notice to the COLT 20    -SN   Secured Noteholders
of any condition or event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if it is in writing and mailed, first-class, postage prepaid to each COLT 20    -SN   Secured
Noteholder affected by such event, at such Person’s address as it appears on the Secured Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. If notice to COLT
20    -SN   Secured Noteholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular COLT
20    -SN   Secured Noteholder shall affect the sufficiency of such notice with respect to other 20    -SN   Secured Noteholders, and any notice that is mailed
in the manner herein provided shall conclusively be presumed to have been duly given regardless of whether such notice is in fact actually received. 

(b) Where this COLT Indenture provides for notice in any manner, such notice may be waived in writing by any 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 COLT 20    -SN   Secured Noteholders shall be filed with the COLT Indenture
Trustee but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such a waiver. 
  

 54 

 (c) In case, by reason of the suspension of regular mail service as a result of a strike,
work stoppage or similar activity, it shall be impractical to mail notice of any event of COLT 20    -SN   Secured Noteholders when such notice is required to be given pursuant to any provision of this
COLT Indenture, then any manner of giving such notice as shall be satisfactory to the COLT Indenture Trustee shall be deemed to be a sufficient giving of such notice. 

(d) Where this COLT Indenture provides for notice to the Rating Agencies, failure to give such notice shall not affect any other rights
or obligations created hereunder, and shall not under any circumstance constitute an Event of Default. 

SECTION 11.6 Alternate Payment and Notice Provisions. 

Notwithstanding any provision of this COLT Indenture or any of the COLT 20    -SN   Secured
Notes to the contrary, COLT may enter into any agreement with any Holder of a COLT 20    -SN   Secured Note providing for a method of payment, or notice by the COLT Indenture Trustee or any Paying Agent to
such Holder, that is different from the methods provided for in this COLT Indenture for such payments or notices. COLT shall furnish to the COLT Indenture Trustee a copy of each such agreement and the COLT Indenture Trustee shall cause payments to
be made and notices to be given in accordance with such agreements at the expense of COLT. 
 SECTION 11.7
Conflict with Trust Indenture Act. 
 (a) If any provision hereof limits, qualifies or conflicts with another provision
hereof that is required to be included in this COLT Indenture by any of the provisions of the TIA, such required provision shall control. 

(b) The provisions of TIA §§ 310 through 317 that impose duties on any Person (including the provisions automatically deemed
included herein unless expressly excluded by this COLT Indenture) are a part of and govern this COLT Indenture, whether or not physically contained herein. 

SECTION 11.8 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 11.9 Successors and Assigns. 

(a) All covenants and agreements in this COLT Indenture and the COLT 20    -SN   Secured Notes
by COLT shall bind its successors and assigns, whether so expressed or not. 
  

 55 

 (b) All covenants and agreements of the COLT Indenture Trustee in this COLT Indenture shall
bind its successors and assigns, whether so expressed or not. 
 SECTION 11.10 Severability. 

In case any provision in this COLT Indenture or in the COLT 20    -SN   Secured Notes 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 11.11 Benefits of COLT Indenture. 

Nothing in this COLT Indenture or in the COLT 20    -SN   Secured Notes, express or implied,
shall give to any Person, other than the parties hereto and their successors hereunder, and to the extent expressly provided herein, the COLT 20    -SN   Secured Noteholders and any other Person with an
ownership interest in any part of the COLT 20    -SN   Trust Estate, any benefit or any legal or equitable right, remedy or claim under this COLT Indenture. 

SECTION 11.12 Legal Holidays. 

If the date on which any payment is due shall not be a Business Day, then (notwithstanding any other provision of the
COLT 20    -SN   Secured Notes or this COLT Indenture) payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date on
which nominally due, and no interest shall accrue for the period from and after any such nominal date. 

SECTION 11.13 GOVERNING LAW. 

THIS COLT INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER JURISDICTION (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS COLT INDENTURE SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 SECTION 11.14 Counterparts. 

This COLT Indenture 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. 
 SECTION 11.15 Recording of
COLT Indenture. 
 If this COLT Indenture is subject to recording in any appropriate public recording offices, such recording
is to be effected by COLT and at its expense accompanied by an Opinion of Counsel (which may be counsel to the COLT Indenture Trustee or any other counsel reasonably acceptable to the COLT Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Secured Noteholders or any other Person secured hereunder or for the enforcement of any right or remedy granted to the COLT Indenture Trustee under this COLT Indenture. 

 

 56 

 SECTION 11.16 No Recourse. 

(a) Each COLT 20    -SN   Secured Noteholder agrees by acceptance of a COLT
20    -SN   Secured Note (or interest therein) that no recourse may be taken, directly or indirectly, with respect to the obligations of COLT, the COLT Owner Trustee or the COLT Indenture Trustee on the
COLT 20    -SN   Secured Notes or under this COLT Indenture or any certificate or other writing delivered in connection herewith or therewith, against: 

(i) the COLT Indenture Trustee or the COLT Owner Trustee in its individual capacity; 

(ii) any owner of a beneficial interest in COLT; 

(iii) any partner, owner, beneficiary, agent, officer, director or employee of the COLT Indenture Trustee or the COLT
Owner Trustee in its individual capacity, any holder of a beneficial interest in COLT, the COLT Owner Trustee or the COLT Indenture Trustee or of any successor or assign of the COLT Indenture Trustee or the COLT Owner Trustee in its individual
capacity (or any of their successors or assigns), except as any such Person may have expressly agreed (it being understood that the COLT Indenture Trustee and the COLT Owner Trustee have no such obligation in their individual capacity) and except
that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. For all
purposes of this COLT Indenture, in the performance of any duties or obligations of COLT hereunder, the COLT Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles IV, V and
VI of the Declaration of Trust; or 
 (iv) COLT or any portion of the assets of COLT other than with
respect to the COLT 20    -SN   Trust Estate. 
 (b) Except as expressly provided in
the COLT 20    -SN   Basic Documents, neither the Seller, the Servicer, the COLT Indenture Trustee nor the COLT Owner Trustee in their respective individual capacities, any owner of a beneficial interest
in COLT, nor any of their respective partners, owners, beneficiaries, agents, officers, directors, employees or successors or assigns, shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in the COLT 20    -SN   Secured Notes or this COLT Indenture. 

 

 57 

 SECTION 11.17 No Petition. 

Each of the COLT Indenture Trustee by entering this COLT Indenture and each Holder of a COLT
20    -SN   Secured Note, by its acceptance thereof, hereby covenants and agrees that prior to the date which is one year and one day after the payment in full of all COLT
20    -SN   Secured Notes, it shall not institute against, or join any other Person in instituting against, COLT any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceeding under the laws of the United States or any state of the United States. This Section 11.17 shall survive the termination of this COLT Indenture. 

SECTION 11.18 Inspection. 

COLT agrees that, on reasonable prior notice, it shall permit any representative of the COLT Indenture Trustee, during COLT’s normal
business hours, to examine all the books of account, records, reports and other papers of COLT, to make copies and extracts therefrom, to cause such books to be audited by Independent certified public accountants, and to discuss COLT’s affairs,
finances and accounts with COLT’s officers, employees and Independent certified public accountants, all at such reasonable times and as often as may be reasonably requested. The COLT Indenture Trustee shall and shall cause its representatives
to hold in confidence all such information except to the extent disclosure may be required by law (and all reasonable applications for confidential treatment are unavailing) and except to the extent that the COLT Indenture Trustee may reasonably
determine that such disclosure is consistent with its obligations hereunder. 
 SECTION 11.19 Indemnification by and
Reimbursement of the Servicer. The COLT Indenture Trustee acknowledges and agrees to reimburse (i) the Servicer and its directors, officers, employees and agents in accordance with the COLT Servicing Agreement and (ii) the Seller and
its directors, officers, employees and agents in accordance with the COLT Servicing Agreement. The COLT Indenture Trustee further acknowledges and accepts the conditions and limitations with respect to the Servicer’s obligation to indemnify,
defend and hold the COLT Indenture Trustee harmless as set forth in the COLT Servicing Agreement for any Series. 
 SECTION
11.20 Series Liabilities. It is expressly understood and agreed by each COLT 20    -SN   Secured Noteholder, by its acceptance of its COLT 20    -SN  
Secured Note, that Series 20    -SN   is a separate series of COLT as provided in Section 3806(b)(2) of the Statutory Trust Act. As such, separate and distinct records shall be maintained for each
Series Portfolio and the Trust Assets associated with Series 20    -SN   shall be held and accounted for separately from the other assets of COLT or any other Series. The debts, liabilities, obligations
and expenses incurred, contracted for or otherwise existing with respect to each Series of Secured Notes, shall be enforceable against the related Series Portfolio of COLT only, and not against the assets of COLT generally or any other Series
Portfolio. 
 SECTION 11.21 Subordination. COLT and each Holder of a COLT
20    -SN   Secured Note, by accepting its COLT 20    -SN   Secured Note, acknowledges and agrees that such COLT
20    -SN   Secured Note represents indebtedness of COLT and does not represent an interest in any other assets of COLT allocated to any other Series Portfolio (including by virtue of any deficiency claim
in respect of obligations not paid or otherwise satisfied from the COLT 20    -SN   Trust Estate and proceeds thereof). In furtherance of and not in derogation of the foregoing, to the extent COLT enters
into other securitization transactions, including in connection with the issuance of other Series of Secured Notes, each of COLT and each COLT 20    -SN   Secured Noteholder, by accepting its COLT
20    -SN   Secured Note, acknowledges 
  

 58 

 
and agrees that it shall have no right, title or interest in or to any assets (or interests therein) (other than the COLT 20    -SN   Trust Estate)
conveyed or purported to be conveyed or pledged by COLT to another Person or Persons in connection therewith (whether by way of a sale, capital contribution or by virtue of the granting of a Lien) (“Other Assets”). To the extent
that, notwithstanding the agreements and provisions contained in the preceding sentences of this subsection, COLT or any COLT 20    -SN   Secured Noteholder either (a) asserts an interest or claim to,
or benefit from, Other Assets, whether asserted against or through the COLT Indenture Trustee or any other Person, or (b) is deemed to have any such interest, claim or benefit in or from Other Assets, whether by operation of law, legal process,
pursuant to applicable provisions of insolvency laws or otherwise (including by virtue of Section 1111(b) of the federal Bankruptcy Code or any successor provision having similar effect under the Bankruptcy Code), and whether deemed asserted
against or through the COLT Indenture Trustee or any other Person, then COLT and each COLT 20    -SN   Secured Noteholder, by accepting its COLT 20    -SN  
Secured Note, further acknowledges and agrees that any such interest, claim or benefit in or from Other Assets is and shall be expressly subordinated to the indefeasible payment in full of all obligations and liabilities of COLT which, under the
terms of the relevant documents relating to the securitization of such Other Assets, are entitled to be paid from, entitled to the benefits of, or otherwise secured by such Other Assets (whether or not any such entitlement or security interest is
legally perfected or otherwise entitled to a priority of distribution or application under applicable law, including insolvency laws, and whether asserted against the COLT 20    -SN   Secured Noteholder),
including the payment of post-petition interest on such other obligations and liabilities. This subordination agreement shall be deemed a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code. Each COLT
20    -SN   Secured Noteholder further acknowledges and agrees that no adequate remedy at law exists for a breach of this Section 11.21 and the terms of this Section 11.21 may be
enforced by an action for specific performance. The provisions of this Section 11.21 shall be for the third party benefit of those entitled to rely thereon and shall survive the termination of this COLT Indenture. 

IN WITNESS WHEREOF, COLT and the COLT Indenture Trustee have caused this COLT Indenture to be duly executed by their respective officers,
thereunto duly authorized, all as of the day and year first above written. 
  

			
	CENTRAL ORIGINATING LEASE TRUST
		
	By:	 	  

		 	not in its individual capacity but solely as COLT Owner Trustee

 

			
	By:	 	  

	Name:	 	
	Title:	 	
	                    , as COLT Indenture
Trustee

  

			
	By:	 	  

	Name:	 	
	Title:	 	

  

 59 

 Exhibit A to the 

COLT 20    -SN   Indenture 

FORM OF COLT 20    -SN   SECURED NOTE 

 

					
		 	Date of Issuance:	  	  

		 	Initial Secured Note Principal Balance:	  	 $

		 	Secured Note Rate:	  	             % per annum
		 	 Aggregate Initial ABS Value of All

    Series 20    -SN   Lease
Assets:
	  	  

Central Originating Lease Trust, a Delaware statutory trust (“COLT”), for value received, hereby promises to pay on each
Payment Date to                     , not in its individual capacity but solely as COLT Indenture Trustee, as pledgee of COLT, the sum of
(x) the Secured Note Interest Distributable Amount due on such COLT 20    -SN   Secured Note on such Payment Date, plus (y) the holder of this COLT
20    -SN   Secured Note’s portion of the aggregate amount payable on such Payment Date in respect of principal on the COLT 20    -SN   Secured Notes
pursuant to Sections 2.5(b) and 3.1 of the COLT Indenture (as defined below) pro rata based on the Secured Note Principal Balance of each such COLT 20    -SN   Secured Note. The
principal of this COLT 20    -SN   Secured Note shall be due and payable in full on the Final Scheduled Date, unless an optional redemption of the COLT
20    -SN   Secured Notes has occurred pursuant to Section 10.1 of the COLT Indenture in which case such unpaid principal shall be due on the Redemption Date. 

Pursuant to the COLT Indenture, dated as of             ,
20     (as amended, modified or otherwise supplemented from time to time, the “COLT Indenture”), between COLT and             , a national
banking association, as COLT indenture trustee (in its capacity as COLT indenture trustee and not its individual capacity, the “COLT Indenture Trustee”), COLT grants (x) to the COLT Indenture Trustee on behalf of the COLT
20    -SN   Secured Noteholders a security interest in the COLT 20    -SN   Collateral (other than the Direct COLT Pledge) to the extent set forth therein, and
(y) to each COLT 20    -SN   Secured Noteholder, to the extent that, notwithstanding the terms of the VAULT Trust Agreement and the Statutory Trust Act, COLT is deemed to hold a direct ownership
interest in the legal title to any Vehicle related to the Series 20    -SN   Lease Assets (and not merely a beneficial interest in VAULT representing an interest in the legal title to such Vehicle), a
security interest in all of COLT’s rights in such Vehicle. In addition, pursuant to the VAULT Pledge and Security Agreement, dated as of     , 20    , by Vehicle Asset Universal Leasing
Trust (“VAULT”) and acknowledged and agreed by COLT, Ally Financial Inc., Capital Auto Receivables, Inc., and Capital Auto Receivables Asset Trust 20    -SN  , VAULT pledges to each COLT
20    -SN   Secured Noteholder a security interest in all of VAULT’s legal title to the Vehicles related to the Series 20    -SN   Lease Assets to the
extent set forth therein. 
 The sole source for payment of this COLT 20    -SN  
Secured Note and all other COLT 20    -SN   Secured Notes is limited to the COLT 20    -SN   Trust Estate and such other funds as COLT may from time to time
pledge to secure the payment of the COLT 20    -SN   Secured Notes; it being understood that any other assets of COLT included in any other Series Portfolio or the Residual Interest shall not be available
to make payments on the COLT 20    -SN   Secured Notes. 
  

 60 

 Capitalized terms not otherwise defined herein shall have the meanings set forth in the COLT
Indenture. 
  

 61 

 This COLT 20    -SN   Secured Note is a valid
and binding obligation of COLT. 
  

			
	CENTRAL ORIGINATING LEASE TRUST
		
	By:	 	 ,

		 	not in its individual capacity, but solely as COLT Owner Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	
	Dated:	 	            , 20    

 

 62 

 COLT INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the COLT 20    -SN   Secured Notes designed above and referred to in the within-mentioned COLT
Indenture. 
  

			
	                    , not in its individual capacity but
solely as COLT Indenture Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 63 

 Payment hereunder shall be made to the Holder of this COLT
20    -SN   Secured Note in accordance with the COLT Indenture and the COLT Servicing Agreement. 

By acquiring a COLT 20    -SN   Note or any interest therein, each purchaser and transferee
will be deemed to represent and warrant that either (A) it is not (i) an “employee benefit plan” (as defined in Section 3(3) of the United States Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)), that is subject to the provisions of Title I of ERISA, (ii) a “plan” as described in Section 4975(e)(1) of the United States Internal Revenue Code of 1986, as amended (the “Code”),
that is subject to Section 4975 of the Code, or (iii) any entity whose underlying assets include plan assets of the foregoing or (iv) any other plan that is subject to applicable law that is substantially similar to Title I of
ERISA or Section 4975 of the Code or (B) the acquisition and holding of the COLT 20    -SN   Secured Note will not give rise to a non-exempt prohibited transaction under Section 406 of
ERISA, Section 4975 of the Code or a non-exempt violation of any substantially similar applicable law. 
 Pursuant to
Section 11.17 of the COLT Indenture, the COLT Indenture Trustee, by entering into the COLT Indenture and each holder of this COLT 20__-SN_ Secured Note, by its acceptance of this COLT 20__-SN_ Secured Note, (or interest therein),
covenant and agree that it shall not, prior to the date which is one year and one day after the payment in full of all COLT 20__-SN_ Secured Notes issued by COLT, acquiesce, petition or otherwise invoke or cause COLT to invoke the process of any
court or governmental authority for the purpose of commencing or sustaining a case against COLT under any federal or state bankruptcy, insolvency, reorganization or similar law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of COLT or any substantial part of its property, or ordering the winding up or liquidation of the affairs of COLT, and that such obligations shall not constitute a claim against CoLT in the event that
COLT’s assets are insufficient to pay in full such obligations, in each case for one year after all COLT 20    -SN   Secured Notes are paid in full. 

The obligations of COLT under this COLT 20    -SN   Secured Note shall be non-recourse to
COLT and any other asset of COLT or any COLT 20    -SN   Certificateholder except to the extent described herein. 

This COLT 20    -SN   Secured Note shall be effective when executed, authenticated and
delivered in accordance with the COLT Indenture. 
 THIS COLT 20    -SN   SECURED
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER JURISDICTION (EXCEPT SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREOF UNDER THIS COLT 20    -SN   SECURED NOTE SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

 

 64 

 COLT agrees, and by acquiring this COLT
20    -SN   Secured Note or interest therein the Holder of this COLT 20    -SN   Secured Note or interest therein agrees, to treat this COLT
20    -SN   Secured Note as indebtedness for federal income tax, state and local income and franchise tax, Michigan single business tax, and any other taxes imposed upon, measured by or based upon gross or
net income. 
 It is expressly understood and agreed by the holder of this COLT
20    -SN   Secured Note that (a) the COLT Indenture and this COLT 20    -SN   Secured Note are executed and delivered by
                    , not individually or personally but solely as COLT Owner Trustee, (b) each of the representations, undertakings and
agreements herein and therein made on the part of COLT is made and intended not as a personal representation, undertaking or agreement by
                     but is made and intended for the purpose of binding only COLT, and (c) under no circumstances shall
                     be personally liable for the payment of any indebtedness or expenses of COLT or be liable for the breach or failure of
any obligation, representation, warranty or covenant made or undertaken by COLT under the COLT Indenture and this COLT 20    -SN   Secured Note. 

 

 65 

 Exhibit B to the 

COLT 20    -SN   Indenture 

FORM OF CERTIFICATION 

Re: the
                                         
                                         
       dated as of                      (the “Agreement”), among
                                         
                                         
                                         
                                     . 

I,
                                         
                                         
  , the
                                         
                                         
                       of
                                         
                                         
       (the “Company”), certify to Central Originating Lease Trust (“COLT”) and Capital Auto Receivables, LLC (“CARI”), and its officers, with the knowledge and intent that they
will rely upon this certification, that: 
 (1) I have reviewed the report on assessment of the Company’s compliance
provided in accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Item 1122 of Regulation AB (the “Servicing Assessment”), and the registered public
accounting firm’s attestation report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the “Attestation Report”) that were delivered by the Company to COLT, CARI, the
COLT Owner Trustee or the CARAT Owner Trustee pursuant to the Agreement (collectively, the “Company Information”); 

(2) To the best of my knowledge, the Company Information, taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in the light of the circumstances under which such statements were made, not misleading with respect to the period of time covered by the Company Information; and 

(3) To the best of my knowledge, all of the Company Information required to be provided by the Company under the Agreement has been
provided to COLT, CARI, the COLT Owner Trustee or the CARAT Owner Trustee. 
  

			
	Dated:	 	  

		
	By:	 	  

		
	Name:	 	  

		
	Title:Scheme Implementation Agreement with Felix Resources Limited

 Exhibit 4.1 

 

 

 Yanzhou Coal Mining Company Limited 

Felix Resources Limited 

Scheme Implementation Agreement 
  

  
  

 Contents 
  

					
	 1       Interpretation
	  	5
	 1.1
	 	Definitions	  	5
	 1.2
	 	Construction	  	16
	 1.3
	 	Headings	  	17
	 1.4
	 	Reasonable endeavours	  	17
		
	 2       Implementation of the Scheme
	  	17
		
	 3       Conditions Precedent
	  	17
	 3.1
	 	Conditions precedent	  	17
	 3.2
	 	Reasonable endeavours	  	20
	 3.3
	 	Regulatory Approvals	  	20
	 3.4
	 	Benefit and waiver of certain Conditions Precedent	  	21
	 3.5
	 	Notification of certain events	  	21
	 3.6
	 	Scheme voted down	  	22
	 3.7
	 	Consultation if Conditions Precedent not met	  	22
	 3.8
	 	Failure to agree	  	22
		
	 4       Scheme
	  	23
	 4.1
	 	Scheme	  	23
	 4.2
	 	Scheme Consideration	  	23
	 4.3
	 	Special Dividend	  	23
	 4.4
	 	Appointment of nominee	  	23
		
	 5       Steps for implementation
	  	24
	 5.1
	 	Target’s obligations	  	24
	 5.2
	 	Recommendations of Target Directors and promotion of Transaction	  	27
	 5.3
	 	Transaction Implementation Committee	  	27
	 5.4
	 	Bidder’s obligations	  	28
	 5.5
	 	Preparation of the Scheme Booklet	  	29
	 5.6
	 	Compliance with obligations	  	29
	 5.7
	 	Court proceedings	  	29
	 5.8
	 	Board and management changes	  	30
		
	 6       Options
	  	30
	 6.1
	 	Exercise of discretions	  	30
	 6.2
	 	Option deed	  	30
	 6.3
	 	Exercise of Options	  	31
		
	 7       Conduct of business and requests for access
	  	31
	 7.1
	 	Conduct of Target business	  	31
	 7.2
	 	Access to information	  	31
		
	 8       Break fees
	  	32
	 8.1
	 	Payment of costs	  	32
	 8.2
	 	Target Break Fee	  	33
	 8.3
	 	Bidder Break Fee	  	33

  

  
  

					
	 8.4
	 	Compliance with law	  	33
	 8.5
	 	Time for payment	  	34
		
	 9       Exclusivity
	  	34
	 9.1
	 	Termination of existing discussions	  	34
	 9.2
	 	No shop restriction	  	34
	 9.3
	 	No talk restriction	  	35
	 9.4
	 	No due diligence	  	35
	 9.5
	 	Notification by Target	  	35
	 9.6
	 	Revisions to a Competing Proposal	  	36
		
	 10     Representations and warranties
	  	36
	 10.1
	 	Bidder representations and warranties	  	36
	 10.2
	 	Target representations and warranties	  	38
	 10.3
	 	Reliance by parties	  	39
	 10.4
	 	Notifications	  	39
	 10.5
	 	Status of representations and warranties	  	39
		
	 11     Confidentiality
	  	39
	 11.1
	 	Confidentiality Agreement	  	39
	 11.2
	 	Disclosure on termination of this document	  	39
		
	 12     Public announcements and Communications
	  	40
	 12.1
	 	Public announcements	  	40
	 12.2
	 	Agreement on Communications	  	40
	 12.3
	 	Announcements and Communications when there is a Competing Proposal	  	41
		
	 13     Termination
	  	41
	 13.1
	 	Termination by either party	  	41
	 13.2
	 	Termination by Bidder	  	41
	 13.3
	 	Termination by Target	  	42
	 13.4
	 	Effect of termination	  	42
		
	 14     GST
	  	42
	 14.1
	 	Construction	  	42
	 14.2
	 	Consideration GST exclusive	  	42
	 14.3
	 	Payment of GST	  	42
	 14.4
	 	Timing of GST payment	  	43
	 14.5
	 	Tax invoice	  	43
	 14.6
	 	Adjustment event	  	43
	 14.7
	 	Reimbursements	  	43
	 14.8
	 	No merger	  	43
		
	 15     Notices
	  	43
	 15.1
	 	General	  	43
	 15.2
	 	How to give a communication	  	43
	 15.3
	 	Particulars for delivery of notices	  	44
	 15.4
	 	Communications by post	  	44
	 15.5
	 	Communications by fax	  	44

  

  

page iii 

					
	 15.6
	 	After hours communications	  	45
	 15.7
	 	Process service	  	45
		
	 16     General
	  	45
	 16.1
	 	Duty	  	45
	 16.2
	 	Legal costs	  	45
	 16.3
	 	Amendment	  	45
	 16.4
	 	Waiver and exercise of rights	  	45
	 16.5
	 	Rights cumulative	  	45
	 16.6
	 	Consents	  	45
	 16.7
	 	Further steps	  	46
	 16.8
	 	Governing law and jurisdiction	  	46
	 16.9
	 	Assignment	  	46
	 16.10
	 	Liability	  	46
	 16.11
	 	Counterparts	  	46
	 16.12
	 	Entire understanding	  	46
	 16.13
	 	Relationship of parties	  	46
	 16.14
	 	No merger	  	46
	 16.15
	 	Specific Performance	  	47
		
	Schedule 1 – Timetable	  	48
		
	Schedule 2 – Joint Venture Agreements	  	49
		
	Annexure A – Scheme	  	51
		
	Annexure B – Deed Poll	  	61
		
	Annexure C – Announcement	  	62

  

  

page iv 

 Date: 13 August 2009 

Parties 

Yanzhou Coal Mining Company Limited of 298 Fushan South Road, Zoucheng Shandong Province, People’s Republic of
China (Bidder) 
 Felix Resources Limited ACN 000 754 174 of Level 6, 316 Adelaide Street, Brisbane,
Queensland 4000 (Target) 
  
  

Background 
  

	A.	Bidder has agreed with Target for Bidder to acquire all of the issued ordinary shares of Target by means of a scheme of arrangement. 

 

	B.	Target has agreed to propose the Scheme to Target Shareholders, and the Target Directors have agreed to recommend the Scheme to Target Shareholders.

  

	C.	The parties have agreed to implement the Scheme in accordance with this document. 

 
  

Agreed terms 
  

	1	Interpretation 

  

	1.1	Definitions 

 In this
document: 
 Advisers means, in relation to an entity, its financiers, legal adviser, financial adviser, corporate adviser
or other expert adviser or consultant who provides advisory services in a professional capacity to third parties and who has been engaged by that entity. 

Announcement means the public announcement to be made by Bidder in the form contained in annexure C. 

Announcement Date means: 
  

	 	(a)	the date on which this document is executed; or 

  

	 	(b)	if this document is executed on a day which is not a Trading Day, the first Trading Day immediately following the day of execution. 

Ashton JV has the meaning given in schedule 2. 

ASIC means the Australian Securities and Investments Commission. 

Associate in relation to each party, has the meaning given in sections 11, 12 and 16 of the Corporations Act. 

ASX means ASX Limited ACN 008 624 691 or, as the context requires, the financial market operated by it. 

 

  

page 5 

 ASX Listing Rules means the official listing rules of ASX. 

Athena JV has the meaning given in schedule 2. 

ATO means the Australian Taxation Office. 

Bidder Board means the board of directors of Bidder. 

Bidder Break Fee means $33,300,000.00 (exclusive of GST). 

Bidder Committee Members means Mr Yang Deyu and Mr Lai Cunliang or such other persons as are nominated by Bidder in place of those
individuals. 
 Bidder Counterproposal has the meaning given to that term in clause 9.5(c). 

Bidder Group means Bidder and each of its Related Entities. 

Bidder Indemnified Parties means Bidder, each of its Related Entities, and the Officers and employees of Bidder or its Related
Entities. 
 Bidder Information means such information regarding Bidder and the Bidder Group provided by or on behalf of
Bidder to Target or the Independent Expert to enable the Scheme Booklet to be prepared and completed, and applications for the Regulatory Approvals to be made. 

Bidder’s Nominee means any Wholly-Owned Subsidiary of Bidder nominated by Bidder pursuant to clause 4.4. 

Business Day means a day that is each of the following: 

 

	 	(a)	a Business Day within meaning given in the ASX Listing Rules; and 

  

	 	(b)	a day that banks are open for business in Sydney. 

Claim means demand, claim, action, or proceeding made or brought by or against the party, however arising and whether present,
unascertained, immediate, future or contingent. 
 Communications means all forms of communications, whether written,
oral, in electronic format or otherwise, and whether direct or indirect via agents or Representatives. 
 Competing Party
has the meaning given in clause 9.5(b). 
 Competing Proposal means any expression of interest, proposal, offer,
transaction or arrangement (other than any Transaction that may be made and implemented in accordance with this document) by or with any person pursuant to which a Third Party will, if the expression of interest, proposal, offer, transaction or
arrangement is entered into or completed substantially in accordance with its terms: 
  

	 	(a)	acquire an interest in, or a Relevant Interest in, or become the holder of, 20% or more of the shares in Target; 

 

	 	(b)	directly or indirectly acquire, obtain a right to acquire, or otherwise obtain an economic interest in, all or a substantial part of the assets or business of Target
(or any of its Related Bodies Corporate) including assets with an aggregate book value representing 20% or more of the total assets of the Target Group as set out in the Target’s consolidated balance sheet as at 31 December 2008; or

  

	 	(c)	otherwise acquire Control of Target (or any of its Related Bodies Corporate); or 

 

	 	(d)	otherwise directly or indirectly acquire, merge or amalgamate with, or acquire a significant shareholding or economic interest in, Target (or any of its Related Bodies
Corporate) or in all or a substantial part of their respective assets or business, whether by way of takeover offer, scheme of arrangement, shareholder approved acquisition, capital reduction, share buy-back or repurchase, sale or purchase of
assets, joint venture, reverse takeover, dual-listed company structure, recapitalisation, establishment of a new holding company for the Target Group or other synthetic merger or any other transaction or arrangement, 

 

  

page 6 

 but excluding in each case the SA Coal Divestment. 

Condition Precedent means a condition precedent set out in clause 3.1. 

Confidentiality Agreement means the confidentiality agreement dated on or around 13 October 2008 between Yancoal Australia Pty
Ltd and Target. 
 Control has the meaning given to that term in the Corporations Act. 

Corporations Act means the Corporations Act 2001 (Cth). 

Court means the Federal Court of Australia or any other court of competent jurisdiction under the Corporations Act agreed in
writing by Target and Bidder. 
 Deed Poll means a deed poll in the form of annexure B to be executed by
Bidder in favour of the Scheme Participants, under which Bidder covenants in favour of each Scheme Participant to perform its obligations under the Scheme and this document as regards the implementation of the Scheme. 

Dividend Amount means $1.00 cash for each Target Share excluding any in specie distribution, if any, to effect the SA Coal
Divestment. 
 Effective means the coming into effect, pursuant to section 411(10) of the Corporations Act, of the Scheme
Order, but not before an office copy of the Scheme Order is lodged with ASIC. 
 Effective Date means the date on which
the Scheme becomes Effective. 
 End Date means 31 March 2010 or such later date as Bidder and Target agree in
writing. 
 Excluded Share means a Target Share held by Bidder or any of its Associates or by any person on behalf of, or
for the benefit of, Bidder or any of its Associates. 
 Exclusivity Period means the period commencing on the date of this
document and ending on the earlier of: 
  

	 	(a)	the date this document is terminated in accordance with its terms; or 

  

	 	(b)	the Effective Date. 

 FATA
has the meaning given in clause 3.1(a)(ii). 
 Financing Arrangements means the financing arrangements to be put in
place by Bidder to meet its obligation to pay the Scheme Consideration. 
 First Court Date means the first day on which
the application made to the Court for orders under section 411(1) of the Corporations Act that the Scheme Meeting be convened is heard. 

Governmental Agency means any government or representative of a government or any governmental, semi-governmental, administrative,
fiscal, regulatory or judicial body, department, commission, authority, tribunal, agency, competition authority or entity and includes any minister (including, for the avoidance of doubt, the Commonwealth Treasurer), ASIC, ATO, ASX, the Foreign
Investment Review Board and any regulatory organisation established under statute or any stock exchange but excludes any PRC Governmental Agency. 

Headcount Test means the requirement under section 411(4)(a)(ii)(A) of the Corporations Act that the resolution to approve the
Scheme at the Scheme Meeting is passed by a majority in number of Target Shareholders present and voting, either in person or by proxy. 

Implementation Date means the third Business Day following the Record Date, or such other date as ordered by the Court or agreed
between Bidder and Target. 
  

  

page 7 

 Independent Expert means the independent expert appointed by Target in accordance
with clause 5.1(c)(i). 
 Independent Expert’s Report means the report in connection with the Scheme to be
prepared by the Independent Expert in accordance with the Corporations Act, and ASIC policy and practice, for inclusion in the Scheme Booklet. 

Information Circular means the information circular required to be prepared by Bidder for the purposes of satisfying the Condition
Precedent in clause 3.1(f) which needs to include audited accounts of the Target Group prepared in accordance with the requirements of the listing rules where the securities of Bidder are listed. 

Insolvency Event means any of the following: 
  

	 	(a)	a person is or states that the person is unable to pay from the person’s own money all the person’s debts as and when they become due and payable;

  

	 	(b)	a person is taken or must be presumed to be insolvent or unable to pay the person’s debts under any applicable legislation; 

 

	 	(c)	an application or order is made for the winding up or dissolution or a resolution is passed or any steps are taken to pass a resolution for the winding up or
dissolution of a corporation; 

  

	 	(d)	an administrator, provisional liquidator, liquidator or person having a similar or analogous function under the laws of any relevant jurisdiction is appointed in
respect of a corporation or any action is taken to appoint any such person and the action is not stayed, withdrawn or dismissed within seven days; 

  

	 	(e)	a controller (as that term is defined in the Corporations Act) is appointed in respect of any property of a corporation; 

 

	 	(f)	a corporation is deregistered under the Corporations Act or notice of its proposed deregistration is given to the corporation; 

 

	 	(g)	a distress, attachment or execution is levied or becomes enforceable against any property of a person; 

 

	 	(h)	a person enters into or takes any action to enter into an arrangement (including a scheme of arrangement or deed of company arrangement), composition or compromise
with, or assignment for the benefit of, all or any class of the person’s creditors or members or a moratorium involving any of them; or 

  

	 	(i)	anything analogous to or of a similar effect to anything described above under the law of any relevant jurisdiction occurs in respect of a person.

 Joint Ventures means the Ashton JV, Minerva JV, Moolarben JV and Athena JV. 

Joint Venture Agreements means the agreements described in schedule 2. 

Losses means all claims, actions, proceedings, liabilities, obligations, damages, loss, charges, costs, expenses and duties or
other outgoings. 
 Material Adverse Change means a matter, event or circumstance that occurs, is announced or becomes
known to Target (whether or not it becomes public) where that matter, event or circumstance has, has had, or could reasonably be expected to have, individually or when aggregated with all such matters, events or circumstances: 

 

	 	(a)	diminishes, or is reasonably likely to diminish, (whether now or in the future) the consolidated net assets of the Target Group by an amount equal to $200 million or
more; 

  

  

page 8 

	 	(b)	diminishes, or is reasonably likely to diminish, the aggregated consolidated annual net profit before tax of the Target Group over 5 consecutive financial years by an
amount of $100 million or more (the amount is to be calculated taking into account any event, occurrence or matter not disclosed prior to the date of this document which has or could reasonably be expected to have a positive effect on the
consolidated annual net profit before tax of the Target Group over any of the 5 financial years); or 

  

	 	(c)	has the result that the Target Group is unable to carry on its business in substantially the same manner as carried on as at the date of this document, or which
otherwise materially and adversely affects the prospects of the Target Group, 

 other than an event, occurrence or
matter: 
  

	 	(d)	required to be undertaken or procured by the Target Group pursuant to this document; 

 

	 	(e)	which is, and to the extent that it is, fairly disclosed in the Target Disclosure Material; 

 

	 	(f)	which is, and to the extent that it is, known to Bidder prior to the date of this document (which does not include knowledge of the risk of an event, occurrence or
matter happening) ; or 

  

	 	(g)	which does not relate specifically to the operations of the Target Group and which is beyond the control of the Target Group, including any event, occurrence or matter
that relates to interest rates, commodity prices and currency exchange rates. 

 Material Transaction means
the occurrence of any of the following: 
  

	 	(a)	Target or any of its Subsidiaries issues, or agrees to issue, or grants an option to subscribe for, debentures (as defined in section 9 of the Corporations Act), other
than to a Wholly-Owned Subsidiary of Target; 

  

	 	(b)	Target or any Subsidiary of Target makes any change to its constitution or other constituent documents (except in connection with the SA Coal Divestment);

  

	 	(c)	Target or any Subsidiary of Target disposes, or agrees to dispose, of shares in a Related Body Corporate of Target (other than in connection with the SA Coal Divestment
as contemplated by clause 3.1(l) where the net cost to the Bidder of the SA Coal Divestment is $10 million excluding normal advisers’ fees); 

  

	 	(d)	the Target Group changes in any material respect the nature of its business (other than as a result of the SA Coal Divestment as contemplated by clause 3.1(l)
where the net cost to the Bidder of the SA Coal Divestment is $10 million excluding normal advisers’ fees); 

  

	 	(e)	Target or any Subsidiary of Target incurs any financial indebtedness or issues any indebtedness or debt securities other than in the ordinary course of business or
pursuant to advances under the Target Debt Facilities; 

  

	 	(f)	Target or any Subsidiary of Target makes any loans, advances or capital contributions to, or investments in, any other person, other than to or in Target or any
Wholly-Owned Subsidiary of Target or in the ordinary course of business including in accordance with the Joint Venture Agreements or the SA Coal Divestment where the net cost to the Bidder of the SA Coal Divestment is $10 million excluding normal
advisers’ fees; 

  

	 	(g)	Target or any Subsidiary of Target: 

  

	 	(i)	grants to any Officer of Target or any Subsidiary of Target any increase in severance or termination pay or superannuation entitlements; or 

 

	 	(ii)	makes or agrees to make any material change to the terms of, or waives any claims or rights under, or waives the benefit of any provisions of, any contract of
employment with any senior executive of Target or of any Subsidiary of Target; 

  

  

page 9 

	 	(h)	Target or any Subsidiary of Target: 

  

	 	(i)	changes the terms of any Joint Venture Agreement; 

  

	 	(ii)	pays, discharges or satisfies any claims, liabilities or obligations under any Joint Venture Agreement other than the payment, discharge or satisfaction consistent with
past practice and in accordance with its terms; or 

  

	 	(iii)	waives any material claims or rights under, or waives the benefit of any provision of, any Joint Venture Agreement, 

where the consequences of such actions are material to Target; 

 

	 	(i)	Target or any of its material Subsidiaries ceases, or threatens to cease, to carry on business; 

 

	 	(j)	Target or any of its material Subsidiaries becomes subject to an Insolvency Event or is deregistered as a company or otherwise dissolved; 

 

	 	(k)	Target or any of its material Subsidiaries is or becomes unable to pay its debts when they fall due; 

 

	 	(l)	Target or any of its material Subsidiaries disposes, or agrees to dispose, of any asset (including a mine or a mining lease) other than: 

 

	 	(i)	pursuant to the SA Coal Divestment as contemplated by clause 3.1(l) where the net cost to the Bidder of the SA Coal Divestment is $10 million excluding normal
advisers’ fees; 

  

	 	(ii)	the disposal of coal in the ordinary course of business; or 

  

	 	(iii)	where the amount involved in the relevant transaction is less than $5 million (either individually or, in the case of a series of related transactions, collectively);
or 

  

	 	(m)	Target or any of its material Subsidiaries acquires, or agrees to acquire, any asset (including a mine) other than: 

 

	 	(i)	in the ordinary course of business; or 

  

	 	(ii)	where the amount involved in the relevant transaction is less than $5 million (either individually or, in the case of a series of related transactions, collectively).

 Minerva JV has the meaning given in schedule 2. 

Moolarben Budget means the Moolarben budget for the financial year 30 June 2010 included as part of the Target Disclosure
Material. 
 Moolarben JV has the meaning given in schedule 2. 

Moolarben Management Agreement means an agreement dated 21 September 2007 between Moolarben Coal Operations Pty Limited,
Sojitz Moolarben Resources Pty Ltd and Moolarben Coal Mines Pty Limited as amended. 
 Moolarben Project means the
Moolarben coal project to develop the coal deposits located in Moolarben in New South Wales which Target manages by operation of, and in accordance with, the Moolarben JV and the Moolarben Management Agreement. 

Officer means, in relation to any entity, any of its directors, officers and employees. 

Option means an option to subscribe for a Target Shares issued by Target under the Target ESP. 

Option Right means a right to be issued an Option pursuant to the Target ESP. 

 

  

page 10 

 Optionholder means a person who is registered in the Target’s register of
optionholders as the holder of an Option. 
 PRC means the People’s Republic of China. 

PRC Governmental Agency means any government or representative of a government or any governmental, semi-governmental,
administrative, fiscal, regulatory or judicial body, department, commission, authority, tribunal, agency, competition authority or entity of the PRC or any of its provinces, autonomous regions, municipalities, or special administrative regions, and
includes: 
  

	 	(a)	the National Development and Reform Commission of China; 

  

	 	(b)	the Shandong Branch of State-owned Assets Supervision and Administration Commission of China; 

 

	 	(c)	the China Securities Regulatory Commission; 

  

	 	(d)	the Ministry of Commerce of the People’s Republic of China; and 

  

	 	(e)	the State Administration of Foreign Exchange of China. 

Prescribed Occurrence means, other than: 
  

	 	(a)	as contemplated by this document (including, for the avoidance of doubt, the effecting of the SA Coal Divestment as contemplated by clause 3.1(l));

  

	 	(b)	as contemplated by the Target Budget; 

  

	 	(c)	as contemplated by the Moolarben Budget; 

  

	 	(d)	as contemplated under the Scheme; or 

  

	 	(e)	with the express consent of Bidder, 

the occurrence of any of the following: 
  

	 	(f)	Target converting all or any of its shares into a larger or smaller number of shares; 

 

	 	(g)	any member of the Target Group resolving to reduce, or reducing, its share capital in any way, or reclassifying, redeeming, combining, splitting or repurchasing
directly or indirectly any of its shares; 

  

	 	(h)	any member of the Target Group resolving to buy back, or buying back, any of its shares, including by: 

 

	 	(i)	entering into a buy-back agreement; or 

  

	 	(ii)	resolving to approve the terms of a buy-back agreement under the Corporations Act; 

 

	 	(i)	any member of the Target Group issuing shares, or granting an option over its shares, or agreeing to make such an issue or grant such an option, other than:

  

	 	(i)	to a Wholly-Owned Subsidiary of Target; or 

  

	 	(ii)	an issue by Target of Options or Option Rights required by the Target ESP (such that there are no more than 170,000 Options and Option Rights in aggregate); or

  

	 	(iii)	an issue of Target Shares following the valid exercise of any Options on issue at the date of this document; 

 

	 	(j)	any member of the Target Group issuing, or agreeing to issue, securities convertible into shares or debt securities (including any performance rights or options);

  

	 	(k)	any member of the Target Group making, in aggregate, capital expenditure in excess of $5 million on projects not commenced or approved prior to the date of this
document; 

  

  

page 11 

	 	(l)	any member of the Target Group: 

  

	 	(i)	acquiring, leasing or disposing of; 

  

	 	(ii)	agreeing to acquire, lease or dispose of; or 

  

	 	(iii)	offering, proposing or announcing a bid or tenders for, 

any material business, assets (other than trading inventories and consumables in the ordinary and usual course of business and consistent
with the business plans for the Joint Ventures or Yarrabee) or entity with a value greater than $5 million, or enters into joint venture, partnership or similar arrangement; 

 

	 	(m)	other than in the ordinary course of business and consistent with the business plans for the Joint Ventures or Yarrabee, any member of the Target Group:

  

	 	(i)	entering into any contract or commitment involving revenue or expenditure of more than $5 million over the term of the contract or commitment; or

  

	 	(ii)	terminating or amending in a material manner any contract of the Target Group’s business which involves expenditure or revenue of more than $5 million over the
term of the contract; 

  

	 	(n)	any member of the Target Group entering into a contract or commitment restraining it from competing with any person or conducting activities in any market;

  

	 	(o)	other than in the ordinary course of business and consistent with past practice or except as provided for in an existing employment contract in place at the date of
this document, a copy of which has been included in the Target Disclosure Material, any member of the Target Group: 

  

	 	(i)	paying any bonus to, or increasing the compensation of, any Officer or employee of any member of the Target Group; 

 

	 	(ii)	accelerating the rights of any Officer or employee of any member of the Target Group to compensation or benefits of any kind (including under any Target executive or
employee share plan); 

  

	 	(iii)	granting to any Officer or employee of any member of the Target Group any increase in severance or termination pay or superannuation entitlements or by issuing any
Target Shares or securities convertible to Target Shares to any of those persons; or 

  

	 	(iv)	establishing, adopting, entering into or amending in any material respect (including by taking any action to accelerate any rights or benefits due under) any enterprise
bargaining agreement, Australian workplace agreement, employee benefit plan or superannuation scheme of Target or relating to the Officers or employees of any member of the Target Group; or 

 

	 	(p)	any member of the Target Group making any change in its accounting methods, principles or practices which would materially affect the reported consolidated assets,
liabilities or results of operations of any member of the Target Group, other than as required to comply with any changes to generally accepted accounting principles, standards, guidelines or practices in the jurisdiction of the relevant
entity’s incorporation. 

 Project Panther means the project instigated by Target in respect of a
potential change of control of Target. 
 Record Date means 7.00 pm on the fifth Business Day following the Effective
Date or such other date and time as Bidder and Target agree. 
  

  

page 12 

 Register means the register of members of Target maintained by or on behalf of Target
in accordance with the Corporations Act. 
 Regulatory Approval means: 

 

	 	(a)	any approval, consent, authorisation, registration, filing, lodgement, permit, franchise, agreement, notarisation, certificate, permission, licence, direction,
declaration, authority or exemption from, by or with a Governmental Agency or PRC Governmental Agency; or 

  

	 	(b)	in relation to anything that would be fully or partly prohibited or restricted by law if a Governmental Agency or PRC Governmental Agency intervened or acted in any way
within a specified period after lodgement, filing, registration or notification, the expiry of that period without intervention or action. 

Regulator’s Draft means the draft of the Scheme Booklet in a form acceptable to both Bidder and Target which is provided to
ASIC for review pursuant to section s411(2) of the Corporations Act. 
 Related Body Corporate has the meaning given to
that term in the Corporations Act. 
 Related Entity of a party means another entity which: 

 

	 	(a)	is a Related Body Corporate of the first entity; 

  

	 	(b)	is in any consolidated entity (as defined in section 9 of the Corporations Act) which contains the party; or 

 

	 	(c)	the party Controls. 

 Relevant
Interest has the meaning given to that term in the Corporations Act. 
 Representative means, in relation to a party:

  

	 	(a)	each of the party’s Related Entities; and 

  

	 	(b)	each of the Officers, employees and Advisers of the party or of any of its Related Entities. 

Representor has the meaning given in clause 10.3. 

SA Coal means South Australian Coal Corp. Pty. Limited (ACN 000 865 869). 

SA Coal Divestment means the removal of SA Coal from the Target Group, to be effected by any means agreed between the parties and
in the absence of agreement to the contrary by way of a declaration by the Target Board of an in specie dividend of shares in SA Coal including the capitalisation by Target by way of further equity contribution in SA Coal of $10 million. 

Scheme means the proposed scheme of arrangement between Target and the Scheme Participants under Part 5.1 of the Corporations Act
substantially in the form of annexure A which if implemented will give effect to the merger between Bidder and Target as described in clause 4.1, subject to any alterations or conditions made or required by the Court under
section 411(6) of the Corporations Act and approved in writing by Bidder and Target. 
 Scheme Booklet means the
information to be dispatched to Target Shareholders and approved by the Court, including the Scheme, explanatory statement in relation to the Scheme issued pursuant to section 412 of the Corporations Act and registered with ASIC, the
Independent Expert’s Report, the Deed Poll, a tax opinion on the Scheme provided by Target’s taxation advisers, a summary of this document and notice convening the Scheme Meeting (together with proxy forms). 

Scheme Consideration means $16.95 for each Scheme Share held by a Scheme Participant or such other amount as agreed between Bidder
and Target. 
  

  

page 13 

 Scheme Meeting means the meeting ordered by the Court to be convened pursuant to
section 411(1) of the Corporations Act in respect of the Scheme. 
 Scheme Order means the order of the Court made
for the purposes of section 411(4)(b) of the Corporations Act in relation to the Scheme. 
 Scheme Participant means
each holder of Scheme Shares as at the Record Date. 
 Scheme Shares means the Target Shares other than the Excluded
Shares. 
 Second Court Date means the first day on which an application made to the Court for the Scheme Order is heard
or, if the application is adjourned for any reason, the first day on which the adjourned application is heard. 
 Share
Splitting means a Target Shareholder splitting its holding of Scheme Shares into two or more parcels. 
 Special
Dividend means the proposed special dividend to be paid being the Dividend Amount less the amount of any dividends declared by Target after the date of this document excluding any in specie distribution to effect the SA Coal Divestment.

 Subsidiary has the meaning given to that term in the Corporations Act. 

Superior Proposal means a publicly announced bona fide Competing Proposal received after the date of this document which the Target
Board determines, acting in good faith and in order to satisfy what the Target Board considers to be its fiduciary and statutory duties (after having taken advice from its legal and financial advisers): 

 

	 	(a)	is capable of being valued and completed, taking into account all aspects of the Competing Proposal; and 

 

	 	(b)	would, if completed substantially in accordance with its terms, be more favourable to Target Shareholders than the Scheme, taking into account, all terms of the
Competing Proposal. 

 Takeovers Panel means the body established under section 171 of the Australian
Securities and Investments Commission Act 2001 as the primary forum for resolving disputes about takeovers. 
 Target
Board means the board of directors of Target (as constituted from time to time). 
 Target Break Fee means
$33,300,000.00 (exclusive of GST). 
 Target Budget means the Target budget for the financial year ending 30 June
2010 included as part of the Target Disclosure Material. 
 Target Committee Members means Brian Flannery and Craig Smith
(with David Knappick and Mike Chapman as their alternates) or such other persons as are nominated by Target in place of those individuals. 

Target Debt Facilities means any debt facility, equipment finance facility or other financial accommodation provided to Target or
any Target Subsidiary (whether with or without others) by any bank that: 
  

	 	(a)	is disclosed in the Target Disclosure Material; 

  

	 	(b)	has been otherwise disclosed to Bidder prior to the date of this document (which includes the equipment finance facility entered into on or about 30 June 2009 in
connection with the Moolarben Project); 

  

	 	(c)	may be entered into by Target or any of its Subsidiaries in the ordinary course of its business for an amount of less than $5 million; or 

 

  

page 14 

	 	(d)	are entered into for the purpose of funding the development of the Moolarben Project in accordance with the Moolarben Budget, 

together with all associated facility, priority and other agreements and securities entered into in connection with such facilities or
accommodation. 
 Target Director means a director of Target. 

Target Disclosure Material means all information (in whatever form) provided by Target and its Representatives to Bidder and its
Representatives in connection with the Transaction or relating to the Target Group’s past, present or future operations, affairs, business and/or strategic plans, whether provided before or after entry into this document and whether provided
for the purpose of facilitating Bidder’s due diligence investigations in relation to the Target Group or otherwise (including information provided by way of access to data rooms, responses to requests for information, site visits, management
presentations, and interviews and discussions with or other access to the Target Group’s external auditors and advisers). 

Target ESP means the Felix Resources Operations General Manager’s Equity Participation Plan and the Felix Resources
CFO/General Manager’s Equity Participation Plan. 
 Target Group means Target and each of its Related Entities.

 Target Information means all information contained in the Scheme Booklet and all information provided by or on behalf
of Target to the Independent Expert to enable the Independent Expert’s Report to be prepared and completed, but does not include the Bidder Information and the Independent Expert’s Report. 

Target Share means a fully paid ordinary share in the capital of Target. 

Target Shareholder means each person who is registered in the Register as the holder of Target Shares. 

Target Suspension Date means the date identified in the Timetable as the Target Suspension Date. 

Third Party means any of the following: 
  

	 	(a)	a person other than Bidder or any of its Related Bodies Corporate; or 

  

	 	(b)	a consortium, partnership, limited partnership, syndicate or other group in which neither Bidder nor any of its Related Bodies Corporate has agreed in writing to be a
participant. 

 Timetable means the indicative timetable set out in schedule 1 or such other
timetable as may be agreed in writing by the parties. 
 Trading Day has the meaning given in the ASX Listing Rules.

 Transaction means: 
  

	 	(a)	the acquisition by Bidder of all of the Scheme Shares through the implementation of the Scheme; and 

 

	 	(b)	the cancellation of the Options and Option Rights for a consideration for each Option or Option Right not exceeding the amount payable by Bidder for each Target Share
through the implementation of the Scheme minus the exercise price relating to the Option, 

 as contemplated in
this document. 
 Transaction Implementation Committee means the committee to be established under clause 5.3.

 Treasurer means the Treasurer of the Commonwealth of Australia. 

 

  

page 15 

 Unacceptable Circumstances has the meaning given in section 657A of the Corporations
Act. 
 Voting Power has the meaning given in section 610 of the Corporations Act. 

Wholly-Owned Subsidiary means, in relation to a party, a body corporate, all of the issued shares of which are or will be directly
or indirectly owned by that party. 
 Yarrabee means the Yarrabee coal mine. 

 

	1.2	Construction 

 Unless
expressed to the contrary, in this document: 
  

	 	(a)	words in the singular include the plural and vice versa; 

  

	 	(b)	any gender includes the other genders; 

  

	 	(c)	if a word or phrase is defined its other grammatical forms have corresponding meanings; 

 

	 	(d)	“includes” means includes without limitation; 

  

	 	(e)	no rule of construction will apply to a clause to the disadvantage of a party merely because that party put forward the clause or would otherwise benefit from it;

  

	 	(f)	a reference to: 

  

	 	(i)	a person includes a partnership, joint venture, unincorporated association, corporation and a government or statutory body or authority; 

 

	 	(ii)	a person includes the person’s legal personal representatives, successors, permitted assigns and persons substituted by permitted novation;

  

	 	(iii)	any legislation includes subordinate legislation under it and includes that legislation and subordinate legislation as modified or replaced; 

 

	 	(iv)	an obligation includes a warranty or representation and a reference to a failure to comply with an obligation includes a breach of warranty or representation;

  

	 	(v)	a right includes a benefit, remedy, discretion or power; 

  

	 	(vi)	time is to local time in Brisbane; 

  

	 	(vii)	“$” or “dollars” is a reference to Australian currency; 

 

	 	(viii)	this or any other document includes the document as novated, varied or replaced by agreement between the parties and despite any change in the identity of the parties;

  

	 	(ix)	writing includes any mode of representing or reproducing words in tangible and permanently visible form, and includes fax transmissions; 

 

	 	(x)	this document includes all schedules and annexures to it; and 

  

	 	(xi)	a clause, schedule or annexure is a reference to a clause, schedule or annexure, as the case may be, of this document; 

 

	 	(g)	if the date on or by which any act must be done under this document is not a Business Day, the act must be done on or by the next Business Day;

  

	 	(h)	where time is to be calculated by reference to a day or event, that day or the day of that event is excluded; and 

 

	 	(i)	a reference to any statement, including a warranty made by a party on the basis of its knowledge, belief or awareness, is made on the basis of the actual knowledge,
belief or awareness of the Officers of the party (and no other persons) as at the date of this document. 

  

  

page 16 

	1.3	Headings 

 Headings do not
affect the interpretation of this document. 
  

	1.4	Reasonable endeavours 

Any provision of this document which requires a party to use reasonable endeavours, or to take all steps reasonably necessary, to procure
that something is performed or occurs does not include any obligation: 
  

	 	(a)	to pay any significant sum of money or to provide any significant financial compensation, valuable consideration or any other incentive to or for the benefit of any
person, except for payment of any applicable fee for the lodgement or filing of any relevant application with any Governmental Agency or PRC Governmental Agency or fees to any professional advisers; or 

 

	 	(b)	to commence any legal action or proceeding against any person, to procure that thing is done or happens, 

except where that provision expressly specifies otherwise. 

 

	2	Implementation of the Scheme 

Target must propose and the parties implement the Scheme on the terms set out in this document, and to use all reasonable endeavours to do
so as soon as reasonably practicable and otherwise in accordance with the Timetable. 
  

	3	Conditions Precedent 

  

	3.1	Conditions precedent 

 The
Scheme is not intended to become Effective unless, and the obligations of Bidder under clause 4.2 and the Target under clause 5.1(l) are subject to, each of the following conditions precedent being satisfied or waived in accordance with
clause 3.4: 
  

	 	(a)	Foreign investment approval 

One of the following occurs before 8.00 am on the Second Court Date: 

 

	 	(i)	the Treasurer or his agent advises Bidder to the effect that there are no objections to the acquisition of up to all the Target Shares by Bidder (by any means permitted
by the Corporations Act) in terms of the Commonwealth Government’s foreign investment policy; or 

  

	 	(ii)	no order is made in relation to the Transaction under section 22 of the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA) within a period of 40
days after Bidder has notified the Treasurer that it proposes to acquire Target Shares in accordance with the Transaction, and no notice is given by the Treasurer to Bidder during that period to the effect that there are any objections to the
acquisition of the Target Shares by Bidder (by any means permitted by the Corporations Act) in terms of the Commonwealth Government’s foreign investment policy; or 

 

	 	(iii)	where an order is made under section 22 of the FATA, a period of 90 days has expired after the order comes into operation and no notice has been given by the Treasurer
to Bidder during that period to the effect that there are any objections to the acquisition of the Target Shares by Bidder (by any means permitted by the Corporations Act) in terms of the Commonwealth Government’s foreign investment policy.

  

  

page 17 

	 	(b)	PRC regulatory approvals 

Before 8.00 am on the Second Court Date, Bidder receives all approvals, consents and authorisations as required in connection with the
Transaction from: 
  

	 	(i)	the National Development and Reform Commission of China; 

  

	 	(ii)	the Shandong Branch of State-owned Assets Supervision and Administration Commission of China; 

 

	 	(iii)	the China Securities Regulatory Commission; 

  

	 	(iv)	the Ministry of Commerce of the People’s Republic of China; 

  

	 	(v)	the State Administration of Foreign Exchange of China; and 

  

	 	(vi)	any other relevant PRC Governmental Agency. 

  

	 	(c)	ASIC and ASX Approvals 

Before 8.00 am on the Second Court Date, ASIC and ASX issue or provide such consents, approvals or waivers or do such other acts which
the parties determine are necessary or desirable to implement the Transaction and such acts are not withdrawn, including in the case of ASIC, providing the statement required under section 411(17)(b). 

 

	 	(d)	Other Regulatory Approvals 

Before 8.00 am on the Second Court Date, Bidder receives all Regulatory Approvals (other than those referred to in clauses 3.1(a),
3.1(b), and 3.1(c)) that are necessary to lawfully implement the Transaction are obtained and none of those Regulatory Approvals have been withdrawn, cancelled or revoked. 

 

	 	(e)	No regulatory actions 

Between the date of this document and 8.00 am on the Second Court Date (each inclusive): 

 

	 	(i)	there is not in effect any preliminary or final decision, order or decree issued by a Governmental Agency; 

 

	 	(ii)	no action or investigation is announced, commenced or threatened by any Governmental Agency; and 

 

	 	(iii)	no application is made to any Governmental Agency (other than by Bidder or any of its Associates), 

in consequence of or in connection with the Transaction which restrains, prohibits or impedes, or threatens to restrain, prohibit or
impede, the implementation of the Transaction or any part of it or the acquisition of Target Shares under the Scheme, or seeks to require the divestiture by Bidder of any Target Shares. 

 

	 	(f)	Bidder shareholder approval 

Before 8.00 am on the Second Court Date, the shareholders of Bidder duly approve, in a general meeting, the Transaction in accordance
with the relevant requirements of the stock exchanges and the regulatory bodies where the securities of Bidder are listed. 
  

  

page 18 

	 	(g)	Bidder financing 

  

	 	(i)	By no later than 8.00 pm on the day prior to the First Court Date, Bidder enters into the Financing Arrangements; and 

 

	 	(ii)	before 8.00 am on the Second Court Date any relevant condition precedent to the Financing Arrangements has been satisfied or waived other than any condition precedent
which relates to Court approval of the Scheme or the Scheme becoming Effective. 

  

	 	(h)	Court orders 

 No
temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction or other legal restraint or prohibition being in effect at 8.00 am on the Second Court Date which prevents the
consummation of any aspect of the Transaction. 
  

	 	(i)	Representations and warranties 

  

	 	(i)	(Target) The representations and warranties of Target set out in clauses 9.1 and 10.2 are materially true and correct; and

  

	 	(ii)	(Bidder) the representations and warranties of Bidder set out in clause 10.1 are materially true and correct, 

in each case, as of the date of this document or on the date or dates that are referred to in the representation or warranty. 

 

	 	(j)	No Material Transactions 

No Material Transaction occurs between the date of this document and 8.00 am on the Second Court Date (each inclusive) unless required to
be undertaken or procured by the Target Group pursuant to the Transaction, or to the extent fairly disclosed in the Target Disclosure Material (including in the Target Budget) or as agreed in writing by Bidder. 

 

	 	(k)	Third Party consents  

Before 8.00 am on the Second Court Date, Target obtains a waiver from each relevant party of all rights that might arise as a result of
the Transaction under each of the following Joint Venture Agreements: 
  

	 	(i)	the Ashton Coal Joint Venture Agreement dated 4 April 2003 entered into by ICRA Ashton Pty Limited, International Marine Corporation Group and Itochu Coal
Resources Australia Pty Ltd and others; 

  

	 	(ii)	Minerva Joint Venture Agreement dated 7 October 2004 entered into by Winpia Pty Ltd and Korea Resources Corporation and others; and 

 

	 	(iii)	any other Joint Venture Agreement under which rights may arise as a result of the Transaction. 

 

	 	(l)	Implementation of the SA Coal Divestment 

By no later than the Second Court Date, the SA Coal Divestment is effected. 

 

	 	(m)	No Material Adverse Change 

No Material Adverse Change occurs or becomes apparent between the date of this document and 8.00 am on the Second Court Date.

  

	 	(n)	No dividends 

 Between
the date of this document and 8.00 am on the Second Court Date (each inclusive), neither Target nor any of its Related Bodies Corporate makes or declares any distribution (whether by way of dividend, capital reduction or otherwise and whether in
cash or in specie) of more than the Dividend Amount, except any distribution paid to Target or any of Target’s Wholly-Owned Subsidiaries (other than SA Coal). 

 

  

page 19 

	 	(o)	No Prescribed Occurrence  

No Prescribed Occurrence occurs between the date of this document and 8.00 am on the Second Court Date. 

 

	 	(p)	Independent Expert Report  

The Independent Expert issues its report which concludes that the Scheme is in the best interests of Scheme Participants before the date
on which the Scheme Booklet is registered by ASIC under the Corporations Act and the Independent Expert does not change its conclusions or withdraw its report prior to 8.00 am on the Second Court Date. 

 

	 	(q)	Target Shareholder approval  

Target Shareholders (excluding any holder of Excluded Shares) approve the Scheme by the necessary majorities at the Scheme Meeting (or
any adjournment or postponement thereof). 
  

	 	(r)	Court approval of Scheme  

The Court approves the Scheme under section 411(4)(b) of the Corporations Act and an office copy of the Scheme Order is lodged with
ASIC as contemplated by section 411(10) of the Corporations Act. 
  

	 	(s)	Target Debt Facilities 

Before 8.00 am on the Second Court Date, Target receives all necessary consents, waivers and releases in respect of the Transaction under
the Target Debt Facilities or has received adequate assurances in relation to a suitable replacement for the relevant Target Debt Facilities. 
  

	3.2	Reasonable endeavours 

  

	 	(a)	Each party must use all reasonable endeavours to procure that: 

  

	 	(i)	each of the Conditions Precedent for which it is responsible (being the Conditions Precedent in clauses 3.1(a), 3.1(b), 3.1(f), 3.1(g),
3.1(i)(ii) in the case of Bidder, the Conditions Precedent in clauses 3.1(i)(i), 3.1(j), 3.1(k), 3.1(l), 3.1(m), 3.1(n), 3.1(o), 3.1(p) and 3.1(s) in the case of Target, and all other
Conditions Precedent in the case of both Bidder and Target) is satisfied as soon as practicable after the date of this document, or continues to be satisfied at all times until the last time it is to be satisfied (as the case may require), with a
view to the Effective Date occurring on or before the End Date, provided that the parties are not obliged to waive any Condition Precedent; and 

  

	 	(ii)	there is no event or circumstance within the reasonable control or influence of that party that would prevent the Conditions Precedent being satisfied.

  

	 	(b)	Without limiting its obligations under clause 3.2(a), each party must not do or omit to do (and must procure that its Related Bodies Corporate do not do or omit
to do) anything designed, intended or expected to result in any of the Conditions Precedent being breached or to prevent any of the Conditions Precedent being satisfied. 

 

	3.3	Regulatory Approvals 

  

	 	(a)	Without limiting the generality of clause 3.2 each party must: 

 

	 	(i)	apply in a timely manner for all relevant Regulatory Approvals, providing a copy to the other party of all such applications (provided that Bidder is not required to
provide to Target with English translations of any Communications with or applications to any PRC Governmental Agency), and take all steps it is responsible for as part of the approval process for the Scheme, including responding to requests for
information at the earliest practicable time; and 

  

  

page 20 

	 	(ii)	use reasonable endeavours to consult with the other in advance in relation to all material Communications with any Governmental Agency relating to any Regulatory
Approval and provide the other party with all information reasonably requested in connection with the application for any Regulatory Approval from a Governmental Agency. 

 

	 	(b)	A Regulatory Approval to be obtained under clause 3.3(a) will be taken to have been obtained even though a condition has been attached to it if:

  

	 	(i)	it has been granted on customary terms and conditions; or 

  

	 	(ii)	it has been granted on terms acceptable to the party in receipt of the Regulatory Approval acting reasonably. 

A condition attaching to a Regulatory Approval to be obtained under clause 3.3(a) requiring Bidder, Target or any of their Related
Entities to divest any asset or business is not a customary term or condition of that approval. 
  

	 	(c)	For the purpose of clause 3.1(l) Target’s reasonable endeavours obligation includes an obligation to complete the SA Coal Divestment notwithstanding failure
of Target to obtain any Regulatory Approval to the SA Coal Divestment. 

  

	3.4	Benefit and waiver of certain Conditions Precedent 

  

	 	(a)	(both parties) Target and Bidder together have the benefit of the Conditions Precedent in clauses 3.1(c), 3.1(d), 3.1(e),
3.1(g), and 3.1(h) and any breach or non-fulfilment of those Conditions Precedent can only be waived with the consent of both parties. 

  

	 	(b)	(Target) Target has the benefit of the Conditions Precedent in clauses 3.1(i)(ii), 3.1(p) and 3.1(s) and any breach or non-fulfilment
of those conditions precedent can only be waived with the consent of Target. 

  

	 	(c)	(Bidder) Bidder has the benefit of the Conditions Precedent in clauses 3.1(b), 3.1(f), 3.1(i)(i), 3.1(j), 3.1(k),
3.1(l), 3.1(m), 3.1(n) and 3.1(o) and any breach or non-fulfilment of those Conditions Precedent can only be waived with the consent of Bidder. 

 

	 	(d)	The Conditions Precedent in clauses 3.1(a), 3.1(q) (except in the circumstances contemplated by clause 3.6(c)) and 3.1(r) cannot be
waived by either party. 

  

	 	(e)	A party entitled to waive a Condition Precedent under this clause 3.4 may do so in its absolute discretion. 

 

	3.5	Notification of certain events 

  

	 	(a)	Each party must: 

  

	 	(i)	(keep informed) promptly inform the other either directly or through its Advisers of the steps it has taken and of its progress towards satisfaction of the
Conditions Precedent; 

  

	 	(ii)	(notice of satisfaction) promptly notify the other if it becomes aware that any Condition Precedent has been satisfied; 

 

	 	(iii)	(notice of failure) promptly notify the other if it becomes aware that any Condition Precedent has failed to be satisfied or has become incapable of being
satisfied or is not reasonably capable of being satisfied or of any circumstances which may reasonably be expected to lead to such a state of affairs; and 

  

  

page 21 

	 	(iv)	(notice of waiver) after having given or received a notice in accordance with clause 3.5(iii) in relation to a Condition Precedent that it is
entitled under clause 3.4 to waive, give notice to the other party as soon as possible (and in any event no later than five Business Days or such shorter time to ensure that notice is given before 5.00 pm on the last Business Day before
the Second Court Date) as to whether or not it waives the breach or non-fulfilment of the relevant Condition Precedent, specifying the Condition Precedent in question. 

 

	 	(b)	Subject to the satisfaction and/or waiver of the Conditions Precedent, Bidder and Target must each provide the Court on the Second Court Date with a certificate that
all of the Conditions Precedent (other than the Condition Precedent requiring Court approval of the Scheme) are satisfied, or if not satisfied, are waived. 

 

	3.6	Scheme voted down 

 If the
Scheme is not approved by Target Shareholders at the Scheme Meeting by reason only of the non-satisfaction of the Headcount Test, and Bidder or Target considers, acting reasonably, that Share Splitting may have caused or materially contributed to
the Headcount Test not having been satisfied then Target must: 
  

	 	(a)	seek the Scheme Order, notwithstanding that the Headcount Test has not been satisfied; 

 

	 	(b)	make such submissions to the Court and file such evidence as counsel engaged by Target to represent it in all Court proceedings related to the Scheme, in consultation
with the Bidder, considers is reasonably required to seek to persuade the Court to exercise its discretion under section 411(4)(a)(ii)(A) of the Corporations Act to disregard the Headcount Test; and 

 

	 	(c)	waive the Condition Precedent in clause 3.1(q). 

  

	3.7	Consultation if Conditions Precedent not met 

If: 
  

	 	(a)	there is a breach or non-fulfilment of a Condition Precedent which is not waived in accordance with this document by the time or date specified in this document for its
satisfaction; or 

  

	 	(b)	there is an act, failure to act, event or occurrence which will prevent a Condition Precedent being satisfied by the time or date specified in this document for its
satisfaction (and the breach or non-fulfilment of the Condition Precedent which would otherwise occur has not already been waived), 

then the parties must consult in good faith with a view to determining whether: 

 

	 	(c)	the Transaction may proceed by way of alternative means or methods and, if so, to agree on the terms of such alternative means or methods; 

 

	 	(d)	to extend the relevant time or date for satisfaction of the Conditions Precedent; 

 

	 	(e)	to change the date of the application to be made to the Court for the Scheme Order or adjourning that application (as applicable) to another date agreed by the parties;
or 

  

	 	(f)	to extend the End Date. 

  

	3.8	Failure to agree 

  

	 	(a)	If the parties are unable to reach agreement under clause 3.7 within five Business Days (or any shorter period ending at 5.00pm on the Business Day
before the Second Court Date), then unless that Condition Precedent is waived in accordance with clause 3.4, a party entitled to the benefit of that Condition Precedent may (subject to clause 3.8(b)) terminate this document.

  

  

page 22 

	 	(b)	A party will not be entitled to terminate this document pursuant to clause 3.8(a) if the relevant Condition Precedent has not been satisfied as a result of:

  

	 	(i)	a breach of this document by that party; or 

  

	 	(ii)	a deliberate act or omission of that party which either alone or together with other circumstances prevents that condition being satisfied. 

 

	 	(c)	Termination of this document under clause 3.8(a) does not affect any accrued rights of either party arising from any breach of this document prior to
termination. 

  

	4	Scheme 

  

	4.1	Scheme 

 Subject to the
terms of this document and of the Scheme, Target must propose the Scheme, under which on the Implementation Date: 
  

	 	(a)	all of the Scheme Shares held by Scheme Participants will be transferred to Bidder; and 

 

	 	(b)	the Scheme Participants will receive the Scheme Consideration. 

  

	4.2	Scheme Consideration 

Subject to the terms of the Scheme, Bidder covenants in favour of Target (in its own right and separately as trustee or nominee for each
of the Scheme Participants), that in consideration for the transfer to Bidder of the Scheme Shares held by a Scheme Participant under the terms of the Scheme, Bidder will on the Implementation Date: 

 

	 	(a)	accept that transfer; and 

  

	 	(b)	in accordance with the Deed Poll and this document, pay or procure the payment of the Scheme Consideration to each Scheme Participant. 

 

	4.3	Special Dividend 

 Subject
to the terms of the Scheme, Target covenants in favour of Bidder to declare and to the extent that Target’s available cash reserves (after allowing for all other financial commitments of Target incurred or authorised in accordance with, or as
contemplated by, the terms of this document, the Target Budget or the Moolarben Budget, including all fees, costs and expenses in connection with the Transaction and its implementation) permit it to do so, pay the Special Dividend on the
Implementation Date. 
 To the extent that Target does not have sufficient cash reserves (after allowing for all other financial
commitments of Target incurred or authorised in accordance with, or as contemplated by, the terms of this document, the Target Budget or the Moolarben Budget, including all fees, costs and expenses in connection with the Transaction and its
implementation) to pay the full amount of the Special Dividend on the Implementation Date, Bidder must on or before 8.00 am on the Second Court Date establish an irrevocable facility (whether by promissory note, escrow, letter of credit or similar)
to guarantee the payment by Target of the full amount of the Special Dividend within 3 months of the Implementation Date. 
  

	4.4	Appointment of nominee 

  

	 	(a)	Bidder may, no later than 21 days after the date of this document by written notice to Target, nominate the Bidder’s Nominee to acquire all of the Scheme Shares
instead of Bidder. If any such nomination is made and unless the context otherwise requires, all references in this document with respect to Bidder acquiring all of the Scheme Shares and paying the Scheme Consideration are to be construed as if
references to Bidder were replaced with references to the Bidder’s Nominee. 

  

  

page 23 

	 	(b)	Bidder irrevocably guarantees (as a principal obligation) the due and punctual performance by the Bidder’s Nominee of all of its obligations under or in connection
with this document, the Scheme and the Deed Poll. 

  

	 	(c)	If Bidder’s Nominee commits any default or breach of this document, Bidder must, immediately on written demand by Target, perform all obligations (if any) of
Bidder’s Nominee in accordance with the provisions of this document. 

  

	 	(d)	The Bidder’s Nominee must continue to be a Wholly-Owned Subsidiary of Bidder, and Bidder must not enter any agreement pursuant to which Bidder’s Nominee could
cease to be its Wholly-Owned Subsidiary, until at least one day after the Implementation Date. 

  

	5	Steps for implementation 

  

	5.1	Target’s obligations 

Target must execute all documents and do all acts and things within its power as may be necessary or desirable for the implementation and
performance of the Scheme on a basis consistent with this document, in accordance with the Timetable, and in particular Target must: 
  

	 	(a)	(announce recommendation of the Scheme) make (and not withdraw) the Announcement on the Announcement Date, including stating that each member of the Target
Board: 

  

	 	(i)	recommends to Target Shareholders that the Scheme is in the best interests of Target and Target Shareholders and that Target Shareholders vote in favour of all
resolution(s) to be proposed at the Scheme Meeting to approve the Scheme; 

  

	 	(ii)	who holds Target Shares intends to vote his or her Target Shares in favour of the resolution(s) to be proposed at the Scheme Meeting to approve the Scheme,

 such statement of recommendation or intention to be expressed as subject only to: 

 

	 	(iii)	the Independent Expert concluding that the Scheme is in the best interests of Target Shareholders; and 

 

	 	(iv)	there being no Superior Proposal; 

  

	 	(b)	(Scheme Booklet): 

  

	 	(i)	promptly prepare and, subject to approval by the Court, despatch the Scheme Booklet to the Target Shareholders. Target must prepare the Scheme Booklet in accordance
with clause 5.5 and attempt to ensure that the Scheme Booklet complies with the requirements of: 

  

	 	(A)	the Corporations Act and the Corporations Regulations 2001 (Cth); 

  

	 	(B)	ASIC policy; and 

  

	 	(C)	the ASX Listing Rules. 

  

	 	(ii)	ensure that the Scheme Booklet includes: 

  

	 	(A)	the Scheme; 

  

	 	(B)	a statement that the Target Board unanimously recommends approval of the Scheme (subject to there being no Superior Proposal); and 

 

	 	(C)	notice of Scheme Meeting and proxy form 

  

  

page 24 

	 	(iii)	ensure that the Scheme Booklet is: 

  

	 	(A)	as at the date the Scheme Booklet is despatched to Target Shareholders, other than in relation to the Bidder Information, not be misleading or deceptive in any material
respect (whether by omission or otherwise); and 

  

	 	(B)	updated by all such further or new information which may arise after the Scheme Booklet has been despatched until the date of the Scheme Meeting which is necessary to
ensure that the Target Information is not misleading or deceptive in any material respect (whether by omission or otherwise); 

  

	 	(c)	(Independent Expert): 

  

	 	(i)	after consulting with Bidder, promptly appoint the Independent Expert (and any other specialist expert required) and provide all assistance and information reasonably
requested by the Independent Expert (and any other specialist expert) in connection with the preparation of the necessary report(s) for inclusion in the Scheme Booklet; and 

 

	 	(ii)	on receipt, provide Bidder with a copy of any draft of the Independent Expert’s Report (and any other specialist report); 

 

	 	(d)	(approval of Regulator’s Draft) as soon as practicable after the preparation of an advanced draft of the Scheme Booklet suitable for review by ASIC, procure
that a meeting of the Target Board (or a duly appointed committee of the Target Board) is convened to approve that draft as being in a form appropriate for provision to ASIC for review; 

 

	 	(e)	(liaison with ASIC) as soon as practicable after the resolution referred to in clause 5.1(d) is passed, provide the Regulator’s Draft, to ASIC,
and: 

  

	 	(i)	liaise with ASIC during the period of its consideration of that draft of the Scheme Booklet; 

 

	 	(ii)	promptly keep Bidder informed of any matters raised by ASIC in relation to the Scheme Booklet, and use all reasonable endeavours in cooperation with Bidder to resolve
any such matters; and 

  

	 	(iii)	at Bidder’s request, allow Bidder to attend meetings and discussions with ASIC or ASX (provided that ASIC and ASX express no objection to same);

  

	 	(f)	(approval of Scheme Booklet) as soon as practicable at the conclusion of the review by ASIC of the Scheme Booklet, procure that a meeting of the Target Board (or
a duly appointed committee of the Target Board) is convened to approve the Scheme Booklet in the form approved by ASIC and also to approve an application to the Court for an order that the Scheme Meeting be convened; 

 

	 	(g)	(section 411(17)(b) statements) apply to ASIC for the production of a statement in writing pursuant to section 411(17)(b) of the Corporations Act
stating that ASIC has no objection to the Scheme; 

  

	 	(h)	(Register details) subject to the Scheme: 

  

	 	(i)	provide all necessary information about the Target Shareholders to Bidder which Bidder requires in order to assist Bidder to identify the Target Shareholders and to
facilitate the payment of the Scheme Consideration to Scheme Participants; 

  

	 	(ii)	direct the Target’s share registry to promptly provide any information that Bidder reasonably requests in relation to the Register including any sub-register and,
where requested by Bidder, Target must procure such information is provided to Bidder in such electronic form as is reasonably requested by Bidder; and 

 

  

page 25 

	 	(iii)	promptly send such notices under section 672A of the Corporations Act at such times and to such persons as Bidder reasonably requires, and give copies of the
responses Target receives to Bidder. 

  

	 	(i)	(Scheme Meeting) promptly after, and provided that, the approvals in clauses 5.1(f) and 5.4(e) have been received: 

 

	 	(i)	apply to the Court for an order under section 411(1) of the Corporations Act directing Target to convene the Scheme Meeting; and 

 

	 	(ii)	take all steps necessary to comply with the orders of the Court including, as required, despatching the Scheme Booklet to the Target Shareholders and holding the Scheme
Meeting; 

  

	 	(j)	(Court documents) consult with Bidder in relation to the content of the documents required for the purpose of each of the Court hearings on the First Court Date
and Second Court Date (including originating process, affidavits, submissions and draft minutes of Court orders) and consider in good faith, for the purpose of amending drafts of those documents, comments from Bidder and its Representatives on those
documents; 

  

	 	(k)	(registration of explanatory statement) request ASIC to register the explanatory statement included in the Scheme Booklet in relation to the Scheme in accordance
with section 412(6) of the Corporations Act; 

  

	 	(l)	(approval and implementation of Scheme) if the resolution submitted to the Scheme Meeting is passed by the necessary majorities and once the Conditions Precedent
are satisfied or waived, promptly apply (and, to the extent necessary, re-apply) to the Court for orders approving the Scheme and if that approval is obtained: 

 

	 	(i)	promptly lodge with ASIC an office copy of the Scheme Order in accordance with section 411(10) of the Corporations Act; 

 

	 	(ii)	close the Register as at the Record Date and determine entitlements to the Scheme Consideration in accordance with the Scheme; 

 

	 	(iii)	execute proper instruments of transfer, and, subject to Bidder providing the Scheme Consideration, effect and register the transfer, of the Scheme Shares in accordance
with the Scheme; and 

  

	 	(iv)	do all other things contemplated by or necessary to give effect to the Scheme and the orders of the Court approving the Scheme; 

 

	 	(m)	(ASX listing) use its reasonable endeavours to ensure that the Target Shares continue to be quoted on the official list conducted by ASX until the Target
Suspension Date; 

  

	 	(n)	(legal representation) allow, and not oppose, any application by Bidder for leave of the Court to be represented, or the separate representation of Bidder by
counsel, at the First Court Date and the Second Court Date; 

  

	 	(o)	(publication of information) as soon as they become available, publish on its website the dates fixed for any Court hearing in relation to the Scheme, including
any adjournments or continuance of those hearings, the date of the Scheme Meeting, and the text of all announcements made to ASX in connection with the Transaction; and 

 

	 	(p)	(compliance with laws) do everything reasonably within its power to ensure that the Transaction is effected in accordance with all laws and regulations
applicable in relation to the Transaction. 

  

  

page 26 

 Target is to be taken to have fulfilled, in a timely manner, its obligations under this
clause 5.1 if such obligations are completed by the time scheduled for such events as set out in the Timetable. 
  

	5.2	Recommendations of Target Directors and promotion of Transaction 

  

	 	(a)	Prior to entering into this document, Target has been advised by each Target Director that they intend to: 

 

	 	(i)	recommend to Target Shareholders that the Scheme is in the best interests of Target and that Target Shareholders vote in favour of all resolution(s) to be proposed at
the Scheme Meeting to approve the Scheme; and 

  

	 	(ii)	vote their Target Shares in favour of the resolution(s) to be proposed at the Scheme Meeting to approve the Scheme, 

subject only to: 
  

	 	(iii)	the Independent Expert concluding that the Scheme is in the best interests of Target Shareholders; and 

 

	 	(iv)	there being no Superior Proposal. 

  

	 	(b)	During the Exclusivity Period, Target must use its reasonable endeavours to procure that, subject only to: 

 

	 	(i)	the proper performance by the Target Directors of their fiduciary duties; 

  

	 	(ii)	the Independent Expert concluding that the Scheme is in the best interests of Target Shareholders; and 

 

	 	(iii)	there being no Superior Proposal, 

each Target Director maintains (including by statements in the Scheme Booklet) their recommendation that Target Shareholders vote in
favour of all resolution(s) to be proposed at the Scheme Meeting to approve the Scheme and that no Target Director makes any public statement or any statement to brokers, analysts, journalists, Target Shareholders or professional or institutional
investors which would suggest that the Transaction is not unanimously recommended by the Target Board. 
  

	 	(c)	During the Exclusivity Period, Target must procure that the Chairman of the Target Board, the Managing Director of Target and such other senior executives of Target or
its Related Bodies Corporate as reasonably requested by Bidder participate in efforts reasonably required by Bidder to promote the merits of the Transaction, including: 

 

	 	(i)	meeting with key Target Shareholders if requested to do so by Bidder; and 

  

	 	(ii)	communicating with Target’s employees, customers and suppliers and the employees, customers and suppliers of Target’s Related Bodies Corporate,

 subject only to: 
  

	 	(iii)	the Independent Expert concluding that the Scheme is in the best interests of Target Shareholders; and 

 

	 	(iv)	there being no Superior Proposal. 

  

	5.3	Transaction Implementation Committee 

  

	 	(a)	As soon as practicable after the date of this document, the parties are to establish the Transaction Implementation Committee comprising the Target Committee Members
and of the Bidder Committee Members and such other persons as the parties may agree. 

  

  

page 27 

	 	(b)	The Transaction Implementation Committee is to be a forum for consultation and planning by the parties to implement the Transaction and to consult in relation to the
operation of Target Group’s business including matters relating to Material Transactions prior to the Implementation Date. 

  

	 	(c)	The Transaction Implementation Committee is to meet at least fortnightly. 

  

	 	(d)	If any clause of this document requires Bidder’s consent in relation to the ongoing business operations of the Target, such consent is to be taken to have been
given by Bidder if the Bidder Committee Members indicate their support for the matter at a properly convened meeting of the Transaction Implementation Committee. 

 

	 	(e)	Nothing in this clause requires either party to act at the direction of the other, and each party acknowledges that: 

 

	 	(i)	the business of each party and its Subsidiaries is intended to continue to operate independently until the Implementation Date; and 

 

	 	(ii)	nothing in this document is intended to constitute the relationship of a partnership or similar. 

 

	5.4	Bidder’s obligations 

Bidder must execute all documents and do all acts within its power as may be necessary for the implementation of the Scheme on a basis
consistent with this document, in accordance with the Timetable, and in particular Bidder must: 
  

	 	(a)	(Bidder Information): 

  

	 	(i)	prepare and provide to Target the Bidder Information for the purposes of any Regulatory Approvals and for inclusion in the Scheme Booklet as soon as is reasonably
practicable, and consult with Target in relation to the content of the Bidder Information; 

  

	 	(ii)	ensure that the Bidder Information is not misleading or deceptive in any material respect (whether by omission or otherwise); and 

 

	 	(iii)	provide to Target all such further or new information which may arise after the Scheme Booklet has been despatched until the date of the Scheme Meeting which is
necessary to ensure that the Bidder Information is not misleading or deceptive in any material respect (whether by omission or otherwise); 

  

	 	(b)	(Independent Expert) provide all assistance and information reasonably requested by the Independent Expert (and any other specialist expert required) in
connection with the preparation of all necessary report(s) for the purposes of the Scheme Booklet; 

  

	 	(c)	(assistance) provide any assistance or information reasonably requested by Target in connection with the preparation of the Scheme Booklet and any other document
to be sent to Target Shareholders in order to facilitate satisfaction of the Condition Precedent in clause 3.1(q); 

  

	 	(d)	(approval of draft for ASIC) as soon as practicable after the preparation of an advanced draft of the Scheme Booklet suitable for review by ASIC, procure that a
meeting of the Bidder Board (or a duly appointed committee of the Bidder Board) is convened to approve the Bidder Information in the Scheme Booklet as being in a form appropriate for provision to ASIC for review; 

 

	 	(e)	(approval of Scheme Booklet) as soon as practicable at the conclusion of the review by ASIC of the Scheme Booklet, procure that a meeting of the Bidder Board (or
a duly appointed committee of the Bidder Board) is convened to approve the Bidder Information in the Scheme Booklet; 

  

  

page 28 

	 	(f)	(legal representation) procure that Bidder is represented by counsel at the First Court Date and Second Court Date, at which, through its counsel, Bidder will
undertake (if requested by the Court) to do all such things and take all such steps within its power as may be necessary in order to ensure the fulfilment of its obligations under the Scheme, and, to the extent that leave of the Court is required
for Bidder to be represented at those Court hearings, apply for that leave; 

  

	 	(g)	(Deed Poll) prior to the First Court Date, execute the Deed Poll; 

  

	 	(h)	(Scheme Consideration) if the Scheme becomes Effective, Bidder pays the Scheme Consideration on the Implementation Date in accordance with the Deed Poll and
clause 4.2 of this document; and 

  

	 	(i)	(compliance with laws) do everything reasonably within its power to ensure that the Transaction is effected in accordance with all laws and regulations
applicable in relation to the Transaction. 

 Bidder will be taken to have fulfilled, in a timely manner, its
obligations under this clause 5.4 if such obligations are completed by the time scheduled for such event as set out in the Timetable. 
  

	5.5	Preparation of the Scheme Booklet 

  

	 	(a)	(Drafts) Target must: 

  

	 	(i)	make available to Bidder such drafts of the Scheme Booklet as are reasonably requested by Bidder (including all drafts of the Independent Expert’s Report and any
other specialist report) received by Target); 

  

	 	(ii)	provide to Bidder a revised draft of the Scheme Booklet within a reasonable time before the Regulator’s Draft is finalised to enable Bidder to review the
Regulator’s Draft at least three Business Days before its submission to ASIC; 

  

	 	(iii)	consult with Bidder in relation to the content of those drafts (including the inclusion of any Bidder Information); 

 

	 	(iv)	consider in good faith, for the purpose of amending those drafts, comments from Bidder and its Representatives on those drafts; and 

 

	 	(v)	obtain the written consent from Bidder for the form and context in which any Bidder Information appears in the Scheme Booklet. 

 

	 	(b)	(Dispute) If there is a dispute on any part of the Scheme Booklet (including the Bidder Information), the parties must refer the matter to the Transaction
Implementation Committee for resolution. The Transaction Implementation Committee must use its reasonable endeavours to resolve the dispute within two Business Days from the date of referral of the matter. 

 

	5.6	Compliance with obligations 

Target and Bidder must use all reasonable endeavours and utilise all necessary resources (including management resources and the resources
of external Advisers) to comply with their respective obligations in this clause 5 and to produce the Scheme Booklet in accordance with the Timetable. 
  

	5.7	Court proceedings 

  

	 	(a)	If the Court refuses to make an order convening the Scheme Meeting or approving the Scheme, at Bidder’s request Target must appeal the Court’s decision to the
fullest extent possible (except to the extent that the parties agree otherwise, or an independent Senior Counsel indicates that, in their view, an appeal would have a less than 50% prospect of success, in which case either party may terminate this
document). 

  

  

page 29 

	 	(b)	Each of Bidder and Target must vigorously defend, or must cause to be vigorously defended, any lawsuits or other claims or proceedings (including any Takeovers Panel
proceedings) brought against it (or any member of the Bidder Group or Target Group) challenging this document or the completion of the Transaction. Neither Bidder nor Target may settle or compromise (or permit any member of the Bidder Group or
Target Group to settle or compromise) any claim brought in connection with this document without the prior written consent of the other, such consent not to be unreasonably withheld. 

 

	 	(c)	Any costs incurred as a result of the operation of this clause are to be borne equally by Bidder and Target. 

 

	5.8	Board and management changes 

As soon as practicable: 
  

	 	(a)	on the Implementation Date, Target must cause the appointment as directors of Target of such number of persons nominated by Bidder as would constitute those nominees
(acting together) as a majority of the directors on the Target Board; and 

  

	 	(b)	on the Implementation Date, Target must use its reasonable endeavours to ensure that such members of the Target Board as nominated by Bidder resign from the Target
Board, and that each such director provide written notice to the effect that they have no claim outstanding for loss of office, remuneration or otherwise against Target. 

 

	6	Options 

  

	6.1	Exercise of discretions 

Target must use its reasonable endeavours to ensure that the Target Board must, as soon as practicable after the date of this document,
exercise any discretions in relation to Options and Option Rights to issue all outstanding Options which it is required to issue under the Target ESP so as to allow the Options to be exercised, and the Target Shares issued upon that exercise, to be
acquired under the Scheme. Target must disclose to Bidder as soon as practicable the extent to which these discretions have been exercised. 
  

	6.2	Option deed 

 Target must
use its reasonable endeavours to ensure that each holder of an Option or an Option Right enters into a deed (in a form reasonably acceptable to Bidder) as soon as practicable under which they agree: 

 

	 	(a)	to exercise all their Options before the date that is 5 Business Days before the Record Date; and 

 

	 	(b)	in the event they still hold any Options or Option Rights as at the date that is 5 Business Days before the Record Date, to: 

 

	 	(i)	not exercise any of their Options or Option Rights during the period commencing on the date that is 5 Business Days before the Record Date and ending on the
Implementation Date; and 

  

	 	(ii)	the cancellation of those Options and Option Rights on the Implementation Date for consideration not exceeding the amount payable for each Target Share through the
implementation of the Scheme minus the exercise price for the Option. 

  

  

page 30 

	6.3	Exercise of Options 

Target must issue any Target Shares which it becomes required to issue on exercise of any Options, whether as a result of the exercise of
the Target Board’s discretion or not, before the date that is 2 Business Days before the Record Date. 
  

	7	Conduct of business and requests for access 

  

	7.1	Conduct of Target business 

During the Exclusivity Period, Target must: 
  

	 	(a)	procure that the Target Group conducts its business and operations in the ordinary course and substantially consistent (subject to any applicable laws, regulations and
Regulatory Approvals) with the manner in which each such business and operation has been conducted in the period prior to the date of this document and in compliance in all material respects with all applicable laws, regulations and Regulatory
Approvals; 

  

	 	(b)	to the extent consistent with that obligation, use its reasonable endeavours to preserve intact the Target Group’s current business organisation, to keep available
the services of the current Officers of it and its Related Bodies Corporate and to preserve the Target Group’s relationship with Governmental Agencies, ratings agencies, customers, suppliers, licensors, licensees and others having business
dealings with it, and 

  

	 	(c)	without limiting clauses 7.1(a) and 7.1(b), continue to develop or procure the development of the Moolarben Project in accordance with the Moolarben
Budget, and the Target Group’s business and operations in accordance with the Target Budget, 

 except to the
extent required to be done or procured by Target pursuant to, or which is otherwise expressly permitted by, this document, or the undertaking of which Bidder has approved in writing, such approval not to be unreasonably withheld or delayed.

  

	7.2	Access to information 

  

	 	(a)	During the Exclusivity Period, and for so long as the Target Board considers the Transaction to be in the best interests of Target Shareholders and recommends that
Target Shareholders and that Target Shareholders vote in favour of all resolution(s) to be proposed at the Scheme Meeting to approve the Scheme in accordance with clause 5.1(a), Target must, and must procure each of its Subsidiaries to,
respond to reasonable requests from Bidder and its Representatives (including in response to requests for information from the stock exchanges on which and the regulatory bodies in jurisdictions where the securities of Bidder are listed) for
information concerning the Target Group businesses and operations, and give Bidder and its Representatives reasonable access to its Officers and records, and otherwise provide reasonable co-operation to Bidder and its Representatives, in each case
for the purposes of: 

  

	 	(i)	the implementation of the Transaction; 

  

	 	(ii)	the integration of the Target Group and the Bidder Group following the completion of the Transaction; 

 

	 	(iii)	information required for the purposes of the Information Circular; or 

  

	 	(iv)	any other purpose which is agreed in writing between the parties, 

subject to the proper performance by the directors and Officers of Target and its Subsidiaries of their fiduciary duties. 

 

  

page 31 

	 	(b)	Without limiting clause 7.2(a), during the Exclusivity Period and for so long as the Target Board considers the Transaction to be in the best interests of Target
Shareholders and recommends that Target Shareholders and that Target Shareholders vote in favour of all resolution(s) to be proposed at the Scheme Meeting to approve the Scheme in accordance with clause 5.1(a), Target must consult with Bidder
in relation to the conduct of material aspects of the Target Group businesses and operations, and consider in good faith Bidder’s views in relation to the same, and: 

 

	 	(i)	consult with Bidder in relation to any proposed extension, renewal, replacement, revocation, amendment or surrender of any Regulatory Approval of a type referred to in
paragraph (a) of the definition of Regulatory Approval that is material to the business or operations of Target or any of its Related Bodies Corporate, and promptly take, or refrain from taking, such action in relation to that proposal as may
be reasonably requested by Bidder (such reasonableness to be determined having regard to the interests of the Target Group); and 

  

	 	(ii)	consult with Bidder in relation to any material dealings with any Governmental Agency in connection with the business or operations of Target or any of its Related
Bodies Corporate. 

  

	 	(c)	The obligations in clauses 7.2(a) and 7.2(b) do not require Target to: 

 

	 	(i)	provide information to Bidder concerning the Target Directors’ and management’s consideration of the Transaction; 

 

	 	(ii)	provide any commercially sensitive or competitive information; or 

  

	 	(iii)	breach an obligation of confidentiality to any person, 

and nothing in those clauses entitles either party to terminate this document or to claim damages for breach of contract in the event
that they are not satisfied. 
  

	 	(d)	The parties acknowledge that all information which is provided pursuant to this clause 7.2 will be provided subject to the terms of the Confidentiality
Agreement. 

  

	8	Break fees 

  

	8.1	Payment of costs 

  

	 	(a)	Target and Bidder believe that the Transaction will provide benefits to Target, Bidder and their respective shareholders, and acknowledge that if they enter into this
document and the Transaction is subsequently not implemented, both parties will incur significant costs. 

  

	 	(b)	In the circumstances referred to in clause 8.1(a): 

  

	 	(i)	both parties requested that provision be made for the payments referred to in clauses 8.2 and 8.3, without which neither party would have entered
into this document; and 

  

	 	(ii)	the Target Board and the Bidder Board believe that it is appropriate for both parties to agree to the payments referred to in clauses 8.2 and 8.3 in
order to secure each other’s participation. 

  

	 	(c)	Target and Bidder acknowledge that the Target Break Fee and the Bidder Break Fee represent a reasonable amount to compensate the other for the following:

  

	 	(i)	advisory costs (including costs of Advisers); 

  

	 	(ii)	costs of management and directors’ time; 

  

	 	(iii)	out of pocket expenses; and 

  

  

page 32 

	 	(iv)	reasonable opportunity costs in pursuing the Transaction or not pursuing other alternative acquisitions or strategic initiatives. 

 

	 	(d)	Clauses 8.2 and 8.3 do not limit the rights of Target and Bidder in respect of any Claims which they may have against each other under this document.

  

	8.2	Target Break Fee 

  

	 	(a)	Subject to clauses 8.2(b) and 8.4(a), Target must pay Bidder the Target Break Fee in accordance with clause 8.5(a), without withholding
or set off, if: 

  

	 	(i)	at any time during the Exclusivity Period, any of the following occur: 

  

	 	(A)	any Target Director fails to state that they recommend to Target Shareholders that the Scheme is in the best interests of Target and Target Shareholders and that Target
Shareholders vote in favour of all resolution(s) to be proposed at the Scheme Meeting to approve the Scheme, or publicly changes (including by attaching qualifications to) or withdraws that statement or recommendation; or 

 

	 	(B)	a Competing Proposal is announced or made and is publicly recommended, promoted or otherwise endorsed by a majority of the Target Directors; 

 

	 	(ii)	a Competing Proposal is announced or made before the expiry of the Exclusivity Period, and is completed at any time prior to the first anniversary of the date of this
document and, as a result, a Third Party acquires a Relevant Interest and/or economic interest in at least 20% of the Target Shares; or 

  

	 	(iii)	Bidder terminates this document in accordance with clause 13.1(d) or 13.2. 

 

	 	(b)	Despite any other term of this document, the Target Break Fee is only payable once and will not be payable to Bidder if Target is entitled to terminate this document
under clause 13.1(d). 

  

	8.3	Bidder Break Fee 

  

	 	(a)	Subject to clauses 8.3(b) and 8.4(b), Bidder must pay Target the Bidder Break Fee in accordance with clause 8.5(b), without withholding
or set-off, if Target terminates this document in accordance with: 

  

	 	(i)	clause 13.1(d) (but only in the event that Bidder is not entitled to terminate this document under clause 13.1(d)); or 

 

	 	(ii)	clause 3.8 where there has been a breach or non-fulfilment of the Condition Precedent set out in clause 3.1(g). 

 

	 	(b)	Despite any other term of this document, the Bidder Break Fee will only be payable once. 

 

	8.4	Compliance with law 

  

	 	(a)	If a court or the Takeovers Panel determines that any part of the Target Break Fee: 

 

	 	(i)	constitutes or would, if performed, constitute: 

  

	 	(A)	a breach of the fiduciary or statutory duties of the Target Board; or 

  

	 	(B)	unacceptable circumstances within the meaning of the Corporations Act; or 

  

	 	(ii)	is unenforceable or would, if paid, be unlawful for any reason, 

then Target will not be obliged to pay such part of the Target Break Fee and, if such fee has already been paid, then Bidder must within
5 Business Days after receiving written demand from Target refund that part of the Target Break Fee to Target. 
  

  

page 33 

	 	(b)	If a court or the Takeovers Panel determines that any part of the Bidder Break Fee: 

 

	 	(i)	constitutes or would, if performed, constitute: 

  

	 	(A)	a breach of the fiduciary or statutory duties of the Bidder Board; or 

  

	 	(B)	unacceptable circumstances within the meaning of the Corporations Act; or 

  

	 	(ii)	is unenforceable or would, if paid, be unlawful for any reason, 

then Bidder will not be obliged to pay such part of the Bidder Break Fee and, if the such fee has already been paid, then Target must
within 5 Business Days after receiving written demand from Bidder refund that part of the Bidder Break Fee to Bidder. 
  

	 	(c)	If in Takeovers Panel proceedings described in clause 8.4(a) and 8.4(b), the Takeovers Panel indicates to Target and Bidder or either of them that in
the absence of a written undertaking pursuant to section 201A of the Australian Securities and Investments Commission Act 2001 (Cth) it will make a declaration of Unacceptable Circumstances, each of Bidder and Target (as the case may be) may
give that undertaking on their own behalf and must give reasonable consideration to giving that undertaking if requested by the other party. Where such undertakings are given, this clause 8 will operate in a manner consistent with the
terms of such undertakings. 

  

	8.5	Time for payment 

  

	 	(a)	Target must pay Bidder the Target Break Fee, if it is payable pursuant to clause 8.2(a), within 5 Business Days after receiving a written notice from Bidder
setting out the relevant circumstances and requiring payment of the Target Break Fee. 

  

	 	(b)	Bidder must pay Target the Bidder Break Fee, if it is payable pursuant to clause 8.3(a), within 5 Business Days after receiving a written notice from Target
setting out the relevant circumstances and requiring payment of the Bidder Break Fee. 

  

	 	(c)	A written notice requiring payment of the Target Break Fee or the Bidder Break Fee, as applicable, may only be made after this document is terminated in accordance with
its terms. 

  

	9	Exclusivity 

  

	9.1	Termination of existing discussions 

At the date of this document, Target represents and warrants that: 

 

	 	(a)	it has terminated all other negotiations or discussions in respect of any Competing Proposal at the date of this document with any other person; and

  

	 	(b)	it has requested that Target confidential information held by any party who participated as a potential bidder in relation to Project Panther be returned or destroyed
in accordance with the terms of any confidentiality agreement Target has with that potential bidder. 

  

	9.2	No shop restriction 

During the Exclusivity Period, Target must not, and must ensure that each of its Representatives does not, except with the prior written
consent of Bidder, directly or indirectly solicit, invite, facilitate, encourage or initiate any Competing Proposal or any enquiries, negotiations or discussions with any Third Party in relation to, or which may reasonably be expected to lead to, a
Competing Proposal, or communicate any intention to do any of those things. 
  

  

page 34 

	9.3	No talk restriction 

During the Exclusivity Period Target must not, and must ensure that each of its Representatives do not, except with the prior written
consent of Bidder, enter into, continue or participate in negotiations or discussions with, or enter into any agreement, arrangement or understanding with, any Third Party in relation to, or which may potentially lead to a Competing Proposal, even
if: 
  

	 	(a)	the Competing Proposal was not directly or indirectly solicited, invited, facilitated, encouraged or initiated by Target or any of its Representatives; or

  

	 	(b)	the Competing Proposal has been publicly announced, 

unless the Target Board, acting in good faith and in order to satisfy what the Target Board reasonably considers to be its fiduciary or
statutory duties, determines that, where there is a Competing Proposal, the Competing Proposal is a Superior Proposal but only if that Competing Proposal was not directly or indirectly solicited, invited, facilitated, encouraged or initiated by
Target or any of its Representatives in a manner that would breach its obligations under this clause 9.3 or clauses 9.2 or 9.4. 
  

	9.4	No due diligence 

 Without
limiting the general nature of clause 9.3, during the Exclusivity Period, Target must not, and must ensure that each of its Representatives do not, except with the prior written consent of Bidder, make available to any Third Party (other
than to Bidder or any of its Representatives) or permit any such Third Party to receive any non-public information relating to Target or any of its Related Bodies Corporate in connection with such Third Party formulating, developing or finalising,
or assisting in the formulation, development or finalisation of, a Competing Proposal, unless: 
  

	 	(a)	the Target Board, acting in good faith and in order to satisfy what the Target Board reasonably considers to be its fiduciary or statutory duties, determines that,
where there is a Competing Proposal, the Competing Proposal is a Superior Proposal but only if that Competing Proposal was not directly or indirectly solicited, invited, facilitated, encouraged or initiated by Target or any of its Representatives in
a manner that would breach its obligations under this clause 9.4 or clauses 9.2 or 9.3; and 

  

	 	(b)	if Target proposes to provide any confidential information to a Third Party, before Target provides such information to the Third Party, the Third Party has entered
into a written agreement in favour of Target regarding the use and disclosure of the confidential information by the person and which restricts the Third Party’s ability to solicit the employees of the Target Group and that information has been
provided to Bidder (to the extent that it has not already provided it but not including any confidential information provided by the Third Party to Target or any confidential information relating to the potential Competing Proposal).

  

	9.5	Notification by Target 

  

	 	(a)	During the Exclusivity Period, Target must promptly notify Bidder if: 

  

	 	(i)	it is approached by any Third Party to take any action of a kind that would breach its obligations under clauses 9.3 or 9.4 (or that would breach its
obligations under clauses 9.3 or 9.4 if it were not for the provisos to the relevant clause); or 

  

	 	(ii)	it proposes to take any action of a kind that would breach its obligations under clauses 9.3 or 9.4 (or that would breach its obligations under
clauses 9.3 or 9.4 if it were not for the provisos to the relevant clause), unless (and only to the extent that) the Target Board, acting reasonably and in good faith, determines that it would be a breach of its fiduciary or
statutory duties to so notify Bidder. 

  

  

page 35 

	 	(b)	If the Target Board receives a Superior Proposal, and as a result proposes to publicly change or withdraw its statement that it considers the Transaction to be in the
best interests of Target Shareholders and/or its recommendation that Target Shareholders vote in favour of all resolution(s) to be proposed at the Scheme Meeting to approve the Scheme, the Target Board must give Bidder 5 clear Business Days notice
(such notice to be in writing) of such proposed change or withdrawal, and provide to Bidder all material terms of the applicable Competing Proposal, including details of the proposed price or implied value (including details of the consideration if
not simply cash), conditions, timing and break fee (if any). Target will ask the person who has made the applicable Competing Proposal (the Competing Party) for their consent to their name being provided by Target to Bidder on a confidential
basis. Target will have no obligation to disclose the identity of the Competing Party to Bidder if the Competing Party does not consent to such disclosure. Any information provided pursuant to this clause 9.5(b) will be provided subject
to the terms of the Confidentiality Agreement. 

  

	 	(c)	During the period of 5 clear Business Days referred to in clause 9.5(b), Bidder will have the right to make a new proposal or propose a revision to the
Transaction (a Bidder Counterproposal) so that the new proposal or revised Transaction (as applicable) would provide a superior outcome for the Target Shareholders than the applicable Competing Proposal. 

 

	 	(d)	The Target Board must consider any such Bidder Counterproposal and if the Target Board, acting in good faith, determines that: 

 

	 	(i)	the Bidder Counterproposal would provide a superior outcome for the Target Shareholders than the applicable Competing Proposal (it being acknowledged that the price or
value implied by the Bidder Counterproposal does have to be above, but does not have to be materially above, the price or value implied by the applicable Competing Proposal for the Target Board to consider the Bidder Counterproposal in relation to
price to be superior); and 

  

	 	(ii)	the other terms and conditions of the Bidder Counterproposal taken as a whole are not less favourable than those in the applicable Competing Proposal,

 then Bidder must publicly announce and take all reasonable steps to effect the new proposal or variations of
the Transaction (as applicable) that are necessary to reflect the Bidder Counterproposal (including any amendments to the amount of the Scheme Consideration), enter into any necessary agreements to give effect to those variations, and implement the
Bidder Counterproposal, in each case as soon as reasonably practicable. 
  

	9.6	Revisions to a Competing Proposal 

Any material modification to any Competing Proposal (which will include any modification relating to the price or value of any Competing
Proposal) will be taken to make that proposal a new Competing Proposal in respect of which Target must comply with its obligations under this clause 9. 
  

	10	Representations and warranties 

  

	10.1	Bidder representations and warranties 

Bidder represents and warrants to Target that, except as consented to in writing by Target: 

 

	 	(a)	on each date from the date of this document until (and including) 8.00 am on the Second Court Date: 

 

	 	(i)	Bidder is a corporation validly existing under the laws of its place of incorporation; 

 

  

page 36 

	 	(ii)	Bidder has the power to enter into and perform its obligations under this document, including carrying out the transactions contemplated by this document;

  

	 	(iii)	Bidder has taken all necessary corporate actions to authorise the entry into this document and have taken and will take all necessary corporate action to authorise the
performance of this document and of their obligations in relation to the Transaction; 

  

	 	(iv)	Bidder will apply for all necessary Regulatory Approvals in order for Bidder to enter into this document and to carry out the transactions contemplated by this document
and will use its reasonable endeavours to progress those applications in accordance with its obligations under this document; 

  

	 	(v)	this document constitutes valid and binding obligations on Bidder and is enforceable in accordance with its terms; 

 

	 	(vi)	the execution and performance by Bidder of this document and each transaction contemplated by this document did not and will not violate in any respect a provision of:

  

	 	(A)	a law or treaty or a judgment, ruling, order or decree binding on it; or 

  

	 	(B)	its constitution; 

  

	 	(b)	the Bidder Information: 

  

	 	(i)	will be provided in good faith and on the understanding that Target and each of the Officers of Target will rely on that information for the purposes of preparing the
Scheme Booklet and proposing the Scheme, and that the Independent Expert will rely upon that information for the purpose of preparing the Independent Expert’s Report; and 

 

	 	(ii)	will comply in all material respects with the requirements of the Corporations Act, the ASX Listing Rules and all relevant policy statements, practice notes and other
guidelines and requirements of ASIC; 

  

	 	(c)	the Bidder Information included or incorporated by reference in the Scheme Booklet in the form consented to by Bidder will not, as at the date of dispatch of the Scheme
Booklet to the Target Shareholders, contain any statement which is misleading or deceptive in any material respect (by omission or otherwise); 

  

	 	(d)	as at the date of this document, Bidder’s Voting Power in Target, including in any of Target’s securities or any right, warrant or option to acquire any of
the foregoing or any other economic interest in any such securities (including any interest arising under a derivative or swap arrangement) is nil; and 

  

	 	(e)	it is not, and will not be, entitled to make any claim of immunity from suit or judgment (whether in respect of itself, its assets or its income) in any jurisdiction in
which proceedings may be taken for the enforcement of this document, and to the extent that in any such jurisdiction there may be attributed such immunity (whether or not claimed) it will not claim such immunity and expressly waives such immunity.

  

  

page 37 

	10.2	Target representations and warranties 

Target represents and warrants to Bidder that, except as consented to in writing by Bidder: 

 

	 	(a)	on each date from the date of this document until (and including) 8.00 am on the Second Court Date: 

 

	 	(i)	Target is a corporation validly existing under the laws of its place of incorporation; 

 

	 	(ii)	Target has the power to enter into and perform its obligations under this document and to carry out the transactions contemplated by this document;

  

	 	(iii)	Target has taken all necessary corporate action to authorise the entry into this document and has taken or will take all necessary corporate action to authorise the
performance of this document; 

  

	 	(iv)	this document constitutes valid and binding obligations on Target and is enforceable in accordance with its terms; and 

 

	 	(v)	the execution and performance by Target of this document and each transaction contemplated by this document did not and will not violate in any respect a provision of:

  

	 	(A)	a law or treaty or a judgment, ruling, order or decree binding on it or any of its Related Bodies Corporate; 

 

	 	(B)	its constitution; or 

  

	 	(C)	any other document or agreement which is binding on it or its assets, or any of its Related Bodies Corporate or their assets; 

 

	 	(b)	the Target Information included in the Scheme Booklet: 

  

	 	(i)	will be included in good faith and on the understanding that Bidder and each of the Officers of Bidder will rely on that information for the purposes of considering and
approving the Bidder Information in the Scheme Booklet and approving the entry by Bidder into the Deed Poll, and that the Independent Expert will rely upon that information for the purpose of preparing the Independent Expert’s Report; and

  

	 	(ii)	will comply in all material respects with the requirements of the Corporations Act, the ASX Listing Rules and all relevant policy statements, practice notes and other
guidelines and requirements of ASIC; 

  

	 	(c)	the Target Information included or incorporated by reference in the Scheme Booklet will not, as at the date of despatch of the Scheme Booklet to the Target
Shareholders, contain any statement which is misleading or deceptive in any material respect (by omission or otherwise); 

  

	 	(d)	as at the date of this document, the total securities of Target on issue are as follows: 

 

	 	(i)	196,455,038 Target Shares; and 

  

	 	(ii)	0 Options; and 

  

	 	(iii)	170,000 Option Rights, 

 and
neither Target nor any of its Related Bodies Corporate has issued (or is actually or contingently required to issue) any other securities or instruments which are still outstanding (or may become outstanding) and which may convert into Target
securities; 
  

	 	(e)	on each date from the date of this document until (and including) 8.00 am on the Second Court Date: 

 

	 	(i)	has materially complied with its obligations under chapter 3 of the ASX Listing Rules and the information disclosed to ASX is true and correct in all material respects;

  

  

page 38 

	 	(ii)	is not withholding any information from Bidder that is being withheld from public disclosure in reliance on ASX Listing Rule 3.1A; and 

 

	 	(iii)	the Target Disclosure Material has been disclosed in good faith, and Target has used all reasonable endeavours to ensure there is no other material information, and is
not aware of any other material information, that has not been disclosed to Bidder and is objectively necessary for Bidder to make an informed decision as to whether to proceed with the Transaction; and 

 

	 	(f)	as at the date of this document, Target’s Voting Power in Bidder, including in any of Bidder’s securities or any right, warrant or option to acquire any of
the foregoing or any other economic interest in any such securities (including any interest arising under a derivative or swap arrangement) is nil. 

  

	10.3	Reliance by parties 

 Each
party (Representor) acknowledges that in entering into this document the other party has relied on the representations and warranties provided by the Representor under this clause 10. 

 

	10.4	Notifications 

 Each party
will promptly advise the other party in writing if it becomes aware of any fact, matter or circumstance which constitutes or may constitute a breach of any of the representations or warranties given by it under this clause 10. 

 

	10.5	Status of representations and warranties 

Each representation and warranty in this clause 10: 

 

	 	(a)	is severable; 

  

	 	(b)	will survive the termination of this document; and 

  

	 	(c)	is given with the intent that liability under it will not be confined to breaches which are discovered prior to the date of termination of this document.

  

	11	Confidentiality 

  

	11.1	Confidentiality Agreement 

Except as set out in clause 11.2, the parties acknowledge that: 

 

	 	(a)	Bidder accedes to the Confidentiality Agreement; 

  

	 	(b)	the parties to the Confidentiality Agreement continue to be bound by the Confidentiality Agreement after the date of this document; and 

 

	 	(c)	the rights and obligations of the parties under the Confidentiality Agreement and Bidder under clause 11.1(a) survive termination of this document.

  

	11.2	Disclosure on termination of this document 

If this document is terminated under clause 13, either party may disclose by way of announcement to ASX or any stock exchange on
which securities of Bidder are listed the fact that this document has been terminated, where such disclosure is in the reasonable opinion of that party required to ensure that the market in its securities is properly informed, and provided, where
reasonably practicable, that party consults with the other party as to (and gives the other party a reasonable opportunity to comment on) the form and content of the announcement prior to its disclosure. 

 

  

page 39 

	12	Public announcements and Communications 

  

	12.1	Public announcements 

  

	 	(a)	On the Announcement Date, Target must release the Announcement. 

  

	 	(b)	Subject to any deadlines imposed by law or applicable stock exchange requirement and clause 12.3, any public announcements made in connection with the
Transaction must be made outside the trading hours of all of ASX, the Shanghai Stock Exchange and the Hong Kong Stock Exchange. 

  

	 	(c)	Subject to clauses 12.1(d), 11.2 and 12.3, prior to making any other public announcement or disclosure in connection with the Transaction, each party must
use its reasonable endeavours to consult with the other party as to, and seek to agree with the other party (each party acting reasonably and in good faith), the form and content of that announcement or disclosure. 

 

	 	(d)	Subject to clauses 11.2 and 12.3, where a party is required by applicable law or regulation, the ASX Listing Rules or any other applicable stock exchange
regulation to make any announcement or to make any disclosure in connection with the Transaction, it may do so only after it has given the other party as much notice as is reasonably practicable in the context of any deadlines imposed by law or
applicable requirement, but in any event prior notice, and has consulted with the other party as to (and has given the other party a reasonable opportunity to comment on) the form and content of that announcement or disclosure and taken all
reasonable steps to restrict that disclosure to the greatest extent possible. 

  

	12.2	Agreement on Communications 

Except in relation to Communications regulated by clause 12.1 and to the extent permitted by applicable law, and subject to
clause 12.3: 
  

	 	(a)	Bidder and Target must in good faith consult with each other and agree in advance on all aspects (including the timing, form, content and manner) of:

  

	 	(i)	any Communications with any Governmental Agency or PRC Governmental Agency; and 

 

	 	(ii)	any press release, 

 in relation
to the conduct of the Transaction, whether or not such Communications are for the purposes of satisfying a Condition Precedent; 
  

	 	(b)	each of Bidder and Target must ensure that any other Communications with third parties in relation to the Transaction (such as with employees or shareholders or with
the media other than by way of press release) must be in accordance with the communication protocols and messages agreed between the parties (and if branded with the name or logo of the other party, must be consented to by that party);

  

	 	(c)	each party must provide copies to the other party of any written Communications sent to or received from a person referred to in clause 12.2(b) promptly upon
despatch or receipt (as the case may be); and 

  

	 	(d)	each party will have the right to be present and make submissions at or in relation to any proposed meeting with any Governmental Agency in relation to the Transaction;
and 

  

	 	(e)	Bidder is not required to provide to Target with English translations of any Communications with any PRC Governmental Agency. 

 

  

page 40 

	12.3	Announcements and Communications when there is a Competing Proposal 

The requirements of clauses 12.1(b), 12.1(c), 12.1(d) and 12.2 do not apply to Bidder if a Competing Proposal
has been announced and has not been publicly withdrawn. 
  

	13	Termination 

  

	13.1	Termination by either party 

A party (terminating party) may terminate this document with immediate effect by giving notice to the other parties if: 

 

	 	(a)	(resolution voted down) the resolution to approve the Scheme submitted to the Scheme Meeting is not approved by the requisite majorities of Target Shareholders
(except in the circumstances contemplated by clause 3.6(c)); 

  

	 	(b)	(End Date) the Effective Date for the Scheme has not occurred on or before the End Date; 

 

	 	(c)	(Independent Expert) the Independent Expert concludes that the Scheme is not in the best interests of Target Shareholders; 

 

	 	(d)	(material breach) the other party is: 

  

	 	(i)	in material breach of any clause of this document, which breach is material in the context of the Transaction, or 

 

	 	(ii)	in breach of clause 9, 

provided that (except where Bidder is the terminating party, in the case of a material breach by Target of clause 5.2 or any
breach by Target of clause 9) the terminating party has given notice to the other parties setting out the relevant circumstances and stating an intention to terminate this document, and the relevant circumstances have continued to exist for 5
Business Days from the time such notice is given (or such shorter period ending at 5.00pm on the last Business Day before the Second Court Hearing); 
  

	 	(e)	(no Court orders) a party is entitled to terminate the document in accordance with clause 5.7; 

 

	 	(f)	(restraint) any court, the Takeovers Panel, Governmental Agency or PRC Governmental Agency has issued any order, decree or ruling or taken any other action
permanently enjoining, restraining or otherwise prohibiting the Scheme, or has refused to do anything necessary to permit the Scheme, and the parties fail to agree on conducting on appeal within 5 Business Days; 

 

	 	(g)	(Conditions Precedent) any of the Conditions Precedent in clause 3.1 is not satisfied, has become incapable of being satisfied or is not reasonably
capable of being satisfied, and has not been waived by the party entitled to waive it, before 8.00 am on the Second Court Date; or 

  

	 	(h)	(insolvency) an Insolvency Event has occurred in relation to Target or any member of the Target Group (in which case Bidder may terminate) or Bidder or any
material member of Bidder Group (in which case Target may terminate). 

  

	13.2	Termination by Bidder 

Bidder may terminate this document at any time before the End Date by notice in writing to Target if at any time during the Exclusivity
Period any of the following occur: 
  

	 	(a)	any Target Director fails to state that they recommend to Target Shareholders that the Scheme is in the best interests of Target and Target Shareholders and that Target
Shareholders vote in favour of all resolution(s) to be proposed at the Scheme Meeting to approve the Scheme, or publicly changes (including by attaching qualifications to) or withdraws that statement or recommendation; or 

 

  

page 41 

	 	(b)	a Competing Proposal is announced or made and is publicly recommended, promoted or otherwise endorsed by a majority of the Target Directors. 

 

	13.3	Termination by Target 

Target may terminate this document at any time before the End Date by notice in writing to Bidder if any time during the Exclusivity
Period the Target Board publicly changes (including by attaching qualifications to) or withdraws its statement that it considers that the Scheme is in the best interests of Target and Target Shareholders or its recommendation that Target
Shareholders vote in favour of all resolution(s) to be proposed at the Scheme Meeting to approve the Scheme, or publicly recommends, promotes or otherwise endorses a Superior Proposal. 

 

	13.4	Effect of termination 

 In
the event of termination of this document by either Bidder or Target pursuant to clause 13.1, 13.2 or 13.3, this document will have no further force or effect and the parties will have no further obligations under this document,
provided that: 
  

	 	(a)	this clause 13 and clauses 1, 8, 11, 15 and 16 will survive termination; and 

 

	 	(b)	each party will retain any accrued rights and remedies, including any rights and remedies it has or may have against the other party in respect of any past breach of
this document. 

  

	14	GST 

  

	14.1	Construction 

 In this
clause 14: 
  

	 	(a)	words and expressions which are not defined in this document but which have a defined meaning in GST Law have the same meaning as in the GST Law;

  

	 	(b)	GST Law has the same meaning given to that expression in the A New Tax System (Goods and Services Tax) Act 1999; and 

 

	 	(c)	references to GST payable and input tax credit entitlement include GST payable by, and the input tax credit entitlement of, the representative member for a GST group of
which the entity is a member. 

  

	14.2	Consideration GST exclusive 

Unless otherwise expressly stated, all prices or other sums payable or consideration to be provided under this document are exclusive of
GST. 
  

	14.3	Payment of GST 

 If GST is
payable on any supply made by a party (or any entity through which that party acts) (Supplier) under or in connection with this document, the recipient will pay to the Supplier an amount equal to the GST payable on the supply. 

 

  

page 42 

	14.4	Timing of GST payment 

The recipient will pay the amount referred to in clause 14.3 in addition to and at the same time that the consideration for
the supply is to be provided under this document. 
  

	14.5	Tax invoice 

 The Supplier
must deliver a tax invoice or an adjustment note to the recipient before the Supplier is entitled to payment of an amount under clause 14.3. The recipient can withhold payment of the amount until the Supplier provides a tax invoice or an
adjustment note, as appropriate. 
  

	14.6	Adjustment event 

 If an
adjustment event arises in respect of a taxable supply made by a Supplier under this document, the amount payable by the recipient under clause 14.3 will be recalculated to reflect the adjustment event and a payment will be made by the
recipient to the Supplier or by the Supplier to the recipient as the case requires. 
  

	14.7	Reimbursements 

 Where a
party is required under this document to pay or reimburse an expense or outgoing of another party, the amount to be paid or reimbursed by the first party will be the sum of: 

 

	 	(a)	the amount of the expense or outgoing less any input tax credits in respect of the expense or outgoing to which the other party is entitled; and

  

	 	(b)	if the payment or reimbursement is subject to GST, an amount equal to that GST. 

 

	14.8	No merger 

 This
clause 14 does not merge in the completion or termination of this document or on the transfer of the property supplied under this document. 
  

	15	Notices 

  

	15.1	General 

 A notice,
demand, certification, process or other communication relating to this document must be in writing in English and may be given by an agent of the sender. 
  

	15.2	How to give a communication 

In addition to any other lawful means, a communication may be given by being: 

 

	 	(a)	personally delivered; 

  

	 	(b)	left at the party’s current address for notices; 

  

	 	(c)	sent to the party’s current address for notices by pre-paid ordinary mail or, if the address is outside Australia, by pre-paid airmail; or

  

	 	(d)	sent by fax to the party’s current fax number for notices. 

The parties will use all reasonable endeavours to provide a copy of any communication provided under this clause by email to the email
address of the other party set out in clause 15.3. To avoid doubt, such email communication is provided as support for the official communication provided in accordance with paragraphs (a) to (d) of this clause
and does not supersede or replace any obligation on a party to provide that communication in accordance with paragraphs (a) to (d) of this clause or derogate from the other provisions of this clause 15.

  

  

page 43 

	15.3	Particulars for delivery of notices 

  

	 	(a)	The particulars for delivery of notices are initially: 

Bidder 
  

			
	Address:	  	Suite 1105, Level 11
		
		  	68 York Street
		
		  	Sydney NSW 2000
		
		  	Australia
		
	Fax:	  	+61 2 8243 5388
		
	Attention:	  	Mr Cunliang Lai (CEO Director)

 copy
to 
 Andrew Lumsden 

Corrs Chambers Westgarth 

GPO Box 9925 

Sydney NSW 2001 

+612 9210 6611 

Target 
  

			
	Address:	  	Level 6
		
		  	316 Adelaide Street
		
		  	Brisbane, Queensland 4000
		
		  	Australia
		
	Fax:	  	+61 7 3211 7328
		
	Attention:	  	Mr Craig Smith

 copy to

 Andrew Knox 

Allens Arthur Robinson 

Riverside Centre 

123 Eagle Street 

Brisbane QLD 4000 

Australia 

+617 3334 3444 
  

	 	(b)	Each party may change its particulars for delivery of notices by notice to each other party. 

 

	15.4	Communications by post 

Subject to clause 15.6, a communication is given if posted: 

 

	 	(a)	within Australia to an Australian address, three Business Days after posting; or 

 

	 	(b)	in any other case, ten Business Days after posting. 

  

	15.5	Communications by fax 

Subject to clause 15.6, a communication is given if sent by fax, when the sender’s fax machine produces a report that the
fax was sent in full to the addressee. That report is conclusive evidence that the addressee received the fax in full at the time indicated on that report. 
  

  

page 44 

	15.6	After hours communications 

If a communication is given: 
  

	 	(a)	after 5.00 pm in the place of receipt; or 

  

	 	(b)	on a day which is a Saturday, Sunday or bank or public holiday in the place of receipt, 

it is taken as having been given at 9.00 am on the next day which is not a Saturday, Sunday or bank or public holiday in that place.

  

	15.7	Process service 

 Any
process or other document relating to litigation, administrative or arbitral proceedings relating to this document may be served by any method contemplated by this clause 15 or in accordance with any applicable law. 

 

	16	General 

  

	16.1	Duty 

  

	 	(a)	Bidder as between the parties is liable for and must pay all duty (including any fine or penalty except where it arises from default by the other party) on or relating
to this document, the Scheme, the Deed Poll, any document executed under any of these, or any dutiable transaction evidenced or effected by any of these. 

  

	 	(b)	If a party other than Bidder pays any duty (including any fine or penalty) on or relating to this document, the Scheme, the Deed Poll, any document executed under any
of these, or any dutiable transaction evidenced or effected by any of these, Bidder must pay that amount to the paying party on demand. 

  

	16.2	Legal costs 

 Except as
expressly stated otherwise in this document, each party must pay its own legal and other costs and expenses of negotiating, preparing, executing and performing its obligations under this document. 

 

	16.3	Amendment 

 This document
may only be varied or replaced by a document executed by the parties. 
  

	16.4	Waiver and exercise of rights 

  

	 	(a)	A single or partial exercise or waiver by a party of a right relating to this document does not prevent any other exercise of that right or the exercise of any other
right. 

  

	 	(b)	A party is not liable for any loss, cost or expense of any other party caused or contributed to by the waiver, exercise, attempted exercise, failure to exercise or
delay in the exercise of a right. 

  

	16.5	Rights cumulative 

 Except
as expressly stated otherwise in this document, the rights of a party under this document are cumulative and are in addition to any other rights of that party. 
  

	16.6	Consents 

 Except as
expressly stated otherwise in this document, a party may conditionally or unconditionally give or withhold any consent to be given under this document and is not obliged to give its reasons for doing so. 

 

  

page 45 

	16.7	Further steps 

 Each party
must promptly do whatever any other party reasonably requires of it to give effect to this document and to perform its obligations under it. 
  

	16.8	Governing law and jurisdiction 

  

	 	(a)	This document is governed by and is to be construed in accordance with the laws applicable in Queensland, Australia. 

 

	 	(b)	Each party irrevocably and unconditionally submits to the non-exclusive jurisdiction of the courts of Queensland, Australia and of the Commonwealth of Australia and any
courts which have jurisdiction to hear appeals from any of those courts and waives any right to object to any proceedings being brought in those courts. 

  

	 	(c)	To the extent that Bidder is or may become entitled to, or have attributed to it, any right of immunity on the grounds of sovereignty or otherwise in relation to or in
respect of any Claim in relation to this document, Bidder waives all such rights, and agree not to plead or claim any such rights 

  

	16.9	Assignment 

  

	 	(a)	A party must not assign or deal with any right under this document without the prior written consent of the other parties. 

 

	 	(b)	Any purported dealing in breach of this clause is of no effect. 

  

	16.10	Liability 

 An obligation
of two or more persons binds them separately and together. 
  

	16.11	Counterparts 

 This
document may consist of a number of counterparts and, if so, the counterparts taken together constitute one document. 
  

	16.12	Entire understanding 

  

	 	(a)	This document and the Confidentiality Agreement contains the entire understanding between the parties as to the subject matter of this document.

  

	 	(b)	All previous negotiations, understandings, representations, warranties, memoranda or commitments concerning the subject matter of this document are merged in and
superseded by this document and are of no effect. No party is liable to any other party in respect of those matters. 

  

	 	(c)	No oral explanation or information provided by any party to another: 

  

	 	(i)	affects the meaning or interpretation of this document; or 

  

	 	(ii)	constitutes any collateral agreement, warranty or understanding between any of the parties. 

 

	16.13	Relationship of parties 

This document is not intended to create a partnership, joint venture or agency relationship between the parties. 

 

	16.14	No merger 

 The rights and
obligations of the parties will not merge on the completion of any transaction contemplated by this document. They will survive the execution and delivery of any assignment or other document entered into for the purpose of implementing a
transaction. 
  

  

page 46 

	16.15	Specific Performance 

 The
parties acknowledge that damages will not be an adequate remedy for breaches of obligations under this document and that it would be appropriate for a Court to grant specific performance of those obligations. 

 

  

page 47 

 Schedule 1 

Timetable 
  

			
	 Action
	  	 Date

		
	Draft Scheme Booklet lodged with ASIC	  	4 September 2009
		
	Deed Poll executed by Bidder	  	23 September 2009
		
	First Court Date	  	23 September 2009
		
	Scheme Booklet registered by ASIC and released on ASX	  	23 September 2009
		
	Scheme Booklet dispatched to Target Shareholders	  	30 September 2009
		
	Scheme Meeting	  	8 December 2009
		
	Second Court Date	  	10 December 2009
		
	Effective Date: office copy of Court order approving the Scheme lodged with ASIC	  	11 December 2009
		
	Target Suspension Date	  	10.00 am 11 December 2009
		
	Record Date	  	18 December 2009
		
	Implementation Date	  	23 December 2009

  

  

page 48 

 Schedule 2 

Joint Venture Agreements 
  

	•	 	 Ashton JV 

Ashton Coal Joint Venture Agreement dated 4 April 2003 between White Mining (NSW) Pty Ltd, ICRA Ashton Pty Limited, International
Marine Corporation Group, Itochu Coal Resources Australia Pty Ltd, White Mining Limited and Ashton Coal Operations Limited. 
  

	•	 	 Minerva JV 

Minerva Joint Venture Agreement dated 7 October 2004 between Proserpina Coal Pty Ltd, Winpia Pty Ltd and Korea Resources Corporation.

  

	•	 	 Moolarben JV 

Moolarben Joint Venture Agreement dated 21 September 2007 between Moolarben Coal Mines Pty Ltd, Sojitz Moolarben Resources Pty Ltd)
and a consortium comprising Korea Resource Corporation, Korea Electric Power Company and four of its generator subsidiaries, Kosep, Komipo, Kowepo and Kospo plus Hanwha Corporation Limited. 

 

	•	 	 Athena JV 

Athena Joint Venture is established under a Memorandum of Understanding dated 7 October 2004 between Athena Coal Pty Ltd, Winpia and
Kores Australia Athena Coal Pty Ltd. 
  

  

page 49 

 Executed as an agreement. 

 

					
	Executed by Yanzhou Coal Mining Company Limited	 	)	 	
			
	 /s/ Yuxiang Wu
	 		 	 /s/ Andrew Lumsden

	Legal Representative/Authorized Representative	 		 	Witness
			
	WU YUXIANG	 		 	ANDREW LUMSDEN
	 Name of Legal

Representative/Authorized
 Representative (print)

	 		 	Name of Witness (print)
			
	Executed by Felix Resources Limited	 	)	 	
			
	 /s/ Brian J. Frannery
	 		 	 /s/ Travers W. Duncan

	Company Secretary/Director	 		 	Director
			
	BRIAN J. FRANNERY	 		 	TRAVERS W. DUNCAN
	Name of Company Secretary/Director (print)	 		 	Name of Director (print)

  

  

page 50 

 Annexure A 

Scheme 
  

			
	Scheme of Arrangement	  	

  
  

Scheme of Arrangement 
 Pursuant to
section 411 of the Corporations Act 2001 (Cth) 
  

			
	Between	 	
		
		 	Felix Resources Limited (ACN 000 754 174) of Level 6, 316 Adelaide Street, Brisbane, Queensland, 4000 (Target).
		
	And	 	
		
		 	The holders of fully paid ordinary shares in the capital of Target (other than any person holding fully paid ordinary shares in the capital of Target on behalf of, or for the
benefit of, Bidder or Bidder’s Nominee or their Associates).
		
	Recitals	 	
		
	A	 	Target is a public company limited by shares incorporated in Australia, and has been admitted to the official list of ASX.
		
	B	 	Bidder is a public company limited by shares incorporated in China, and is listed in Hong Kong, New York and Shanghai.
		
	C	 	Target and Bidder have entered into the Scheme Implementation Agreement, pursuant to which, amongst other things, Target has agreed to propose the Scheme to Target Shareholders, and
each of Target and Bidder has agreed to take certain steps to give effect to the Scheme.
		
	D	 	 If the Scheme becomes Effective, then:
  

(a)    all the Scheme Shares will be transferred to Bidder’s Nominee, and the Scheme
Consideration will be provided to the Scheme Participants in accordance with the terms of the Scheme; and
  

(b)    Target will enter the name and address of Bidder’s Nominee in the Target Register
as the holder of the Scheme Shares.

		
	E	 	Bidder and Bidder’s Nominee have entered into the Deed Poll for the purpose of covenanting in favour of the Scheme Participants that Bidder and Bidder’s Nominee will
observe and perform the obligations contemplated of each of them under the Scheme, and that Bidder will procure the performance by Bidder’s Nominee of the obligations contemplated of Bidder’s Nominee under the
Scheme.

  

  

page 51 

			
	Scheme of Arrangement	 	

  
  

 

	1.	Definitions and Interpretation 

  

 
  

	1.1	Definitions 

 In this
document, unless the context requires otherwise: 
 ASIC means the Australian Securities and Investments
Commission. 
 Associate in relation to a party, has the meaning given in section 11, 12 and 16 of the Corporations
Act. 
 ASX means ASX Limited (ABN 98 008 624 691) or, as the context requires, the financial
market known as the Australian Securities Exchange operated by it. 
 ASX Listing Rules means the official listing
rules of ASX. 
 Bidder means Yanzhou Coal Mining Company Limited of 298 Fushan South Road, Zoucheng Shandong
Province, People’s Republic of China. 
 Bidder’s Nominee means Austar Coal Mine Pty Limited ACN 111 910
822 of Level 11, 68 York Street, Sydney, New South Wales, Australia. 
 Business Day means any day that is
each of the following: 
  

	 	(a)	a Business Day within the meaning given in the ASX Listing Rules; and 

  

	 	(b)	a day that banks are open for business in Sydney. 

CHESS means the Clearing House Electronic Subregister System for the electronic transfer of securities, operated by ASX
Settlement and Transfer Corporation Pty Limited (ABN 49 008 504 532). 
 Conditions Precedent
means the conditions precedent to the Scheme set out in clause 3.1. 
 Corporations Act means the
Corporations Act 2001 (Cth). 
 Court means the Federal Court of Australia or any other court of competent
jurisdiction under the Corporations Act agreed in writing by Target and Bidder. 
 Deed Poll means a deed poll
substantially in the form annexed to the Scheme Implementation Agreement to be executed by Bidder and Bidder’s Nominee in favour of the Scheme Participants, under which Bidder and Bidder’s Nominee covenant in favour of each Scheme
Participant to perform their obligations under the Scheme and the Scheme Implementation Agreement as regards the implementation of the Scheme. 

Effective means the coming into effect, pursuant to section 411(10) of the Corporations Act, of the Scheme Order, but not
before an office copy of the Scheme Order is lodged with ASIC. 
 Effective Date means the date on which the Scheme
becomes Effective. 
 End Date means 31 March 2010 or such later date as Bidder and Target agree in writing.

 Excluded Share means a Target Share held by Bidder or any of its Associates or by any person on behalf of, or
for the benefit of, Bidder or any of its Associates. 
 Implementation Date means the third Business Day following
the Record Date, or such other date as ordered by the Court or agreed between Bidder and Target. 
  

  

page 52 

			
	Scheme of Arrangement	 	

  
  

 

 Record Date means 7.00 pm on the fifth Business Day following the
Effective Date or such other date and time as Bidder and Target agree. 
 Registered Address means, in relation to
a Target Shareholder, the address of that Target Shareholder shown in the Target Register. 
 Related Entity of a
party means another entity which: 
  

	 	(a)	is a Related Body Corporate of the first entity; 

  

	 	(b)	is in any consolidated entity (as defined in section 9 of the Corporations Act) which contains the party; or 

 

	 	(c)	the party Controls. 

SAC means South Australian Coal Limited (ACN 000 865 869). 

SAC Divestment means the removal of SAC from the Target Group, to be effected by any means agreed between the parties and in
the absence of agreement to the contrary by way of a declaration by the Target Board of an in specie dividend of shares in SAC including the capitalisation by the Target by way of further equity contribution in SAC of $10 million. 

Scheme means the scheme of arrangement under Part 5.1 of the Corporations Act between Target and Target Shareholders as set
out in this document, subject to any alterations or conditions made or required by the Court and agreed by Bidder and Target. 

Scheme Consideration means $16.95 for each Scheme Share held by a Scheme Participant or such other amount as agreed between
Bidder and Target. 
 Scheme Implementation Agreement means the Scheme Implementation Agreement dated on or
about 13 August 2009 between Bidder and Target. 
 Scheme Meeting means the meeting ordered by the Court to be
convened pursuant to section 411(1) of the Corporations Act in respect of the Scheme. 
 Scheme Order means
the order of the Court made for the purposes of section 411(4)(b) of the Corporations Act in relation to the Scheme. 

Scheme Participant means each holder of Scheme Shares as at the Record Date. 

Scheme Shares means the Target Shares other than the Excluded Shares. 

Scheme Transfer means, in relation to each Scheme Participant, a proper instrument of transfer of their Scheme Shares for
the purpose of section 1071B of the Corporations Act, which may be a master transfer of all or part of all of the Scheme Shares. 

Second Court Date means the first day of hearing of an application made to the Court for the Scheme Order or, if the
application is adjourned for any reason, the first day on which the adjourned application is heard. 
 Target Board
means the board of directors of Target (as constituted from time to time). 
 Target Group means Target and each of
its Related Entities. 
 Target Register means the register of members of Target maintained by or on behalf of
Target in accordance with section 168(1) of the Corporations Act. 
 Target Share means a fully paid ordinary
share in the capital of Target. 
  

  

page 53 

			
	Scheme of Arrangement	 	

  
  

 

 Target Share Registry means Computershare Investor Services Pty Limited of
Level 3, 60 Carrington Street, Sydney, New South Wales, Australia. 
 Target Shareholder means a person who is
registered in the Target Register as a holder of Target Shares. 
 Wholly-Owned Subsidiary means, in relation to a
party, a body corporate, all of the issued shares of which are or will be directly or indirectly owned by that party. 
  

	1.2	Interpretation 

 Headings
are for convenience only and do not affect interpretation. The following rules apply unless the context requires otherwise. 
  

	 	(a)	The singular includes the plural and conversely. 

  

	 	(b)	A gender includes all genders. 

  

	 	(c)	If a word or phrase is defined, its other grammatical forms have a corresponding meaning. 

 

	 	(d)	A reference to a person, corporation, trust, partnership, unincorporated body or other entity includes any of them. 

 

	 	(e)	A reference to a clause is a reference to a clause of this document. 

  

	 	(f)	A reference to an agreement or document (including a reference to this document) is to the agreement or document as amended, varied, supplemented, novated or replaced,
except to the extent prohibited by this document or that other agreement or document. 

  

	 	(g)	A reference to a person includes a reference to the person’s executors, administrators, successors, substitutes (including persons taking by novation) and assigns.

  

	 	(h)	A reference to legislation or to a provision of legislation includes a modification or re enactment of it, a legislative provision substituted for it and a regulation
or statutory instrument issued under it. 

  

	 	(i)	A reference to $ is to the lawful currency of Australia. 

  

	 	(j)	A reference to time is a reference to time in Brisbane, Australia. 

  

	 	(k)	If the day on which any act, matter or thing is to be done is a day other than a Business Day, such act, matter or thing must be done on the immediately succeeding
Business Day. 

  

	 	(l)	The meaning of general words is not limited by specific examples introduced by including, or for example, or similar expressions.

  

	 	(m)	Words and phrases not specifically defined in this document have the same meanings (if any) given to them in the Corporations Act. 

 

	2.	Bidder’s Nominee 

  

 
 Unless the context otherwise
requires, any references in this document with respect to Bidder acquiring all of the Scheme Shares and paying the Scheme Consideration (apart from references to Bidder in clause 6.1) are to be construed as if references to Bidder were replaced with
references to Bidder’s Nominee. 
  

  

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	Scheme of Arrangement	 	

  
  

 

	3.	Conditions Precedent 

  

 
  

	3.1	Conditions Precedent to the Scheme 

The Scheme is conditional upon, and will have no force or effect until, the satisfaction of each of the following conditions precedent:

  

	 	(a)	as at 8am on the Second Court Date each of the conditions precedent set out in clause 3.1 of the Scheme Implementation Agreement (other than the condition precedent
relating to the approval of the Court set out in clause 3.1(r) of the Scheme Implementation Agreement) has been satisfied or waived in accordance with the Scheme Implementation Agreement; 

 

	 	(b)	as at 8am on the Second Court Date, neither the Scheme Implementation Agreement nor the Deed Poll have been terminated in accordance with their terms;

  

	 	(c)	the Court makes orders approving the Scheme under section 411(4)(b) of the Corporations Act, including with such alterations made or required by the Court under
section 411(6) of the Corporations Act as are acceptable to Bidder and Target; 

  

	 	(d)	such other conditions made or required by the Court under section 411(6) of the Corporations Act in relation to the Scheme as are acceptable to Bidder and Target
have been satisfied; and 

  

	 	(e)	the orders of the Court made under section 411(4)(b) (and, if applicable, section 411(6)) of the Corporations Act approving the Scheme come into effect,
pursuant to section 411(10) of the Corporations Act. 

  

	3.2	Termination of Scheme Implementation Agreement 

Without limiting any rights under the Scheme Implementation Agreement, in the event that the Scheme Implementation Agreement is terminated
in accordance with its terms before 8am on the Second Court Date, Target and Bidder are each released from: 
  

	 	(a)	any further obligation to take steps to implement the Scheme; and 

  

	 	(b)	any liability with respect to the Scheme, 

provided that Target and Bidder retain the rights they have against each other in respect of any prior breach of the Scheme Implementation
Agreement. 
  

	4.	Scheme Becoming Effective 

  

 
  

	4.1	Effective Date of the Scheme 

Subject to clause 4.2, the Scheme will take effect on and from the Effective Date. 

 

	4.2	End Date 

 The Scheme will
lapse and be of no further force or effect if the Effective Date has not occurred on or before the End Date. 
  

  

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	5.	Transfer of Scheme Shares 

  

 
 On the Implementation Date, subject
to the provision of the Scheme Consideration in the manner contemplated by clause 6 and Bidder having provided Target with written confirmation of that having occurred, all of the Scheme Shares, together with all rights and entitlements attaching to
the Scheme Shares as at the Implementation Date, will be transferred to Bidder’s Nominee, without the need for any further act by any Scheme Participant (other than acts performed by Target or any of its directors and officers as attorney and
agent for Scheme Participants under the Scheme), by Target effecting a valid transfer or transfers of the Scheme Shares to Bidder’s Nominee under section 1074D of the Corporations Act or, if that procedure is not available for any reason,
by: 
  

	 	(a)	Target delivering to Bidder’s Nominee for execution duly completed and, if necessary, stamped Scheme Transfers to transfer all of the Scheme Shares to
Bidder’s Nominee, duly executed by Target (or any of its directors and officers) as the attorney and agent of each Scheme Participant as transferor under clause 9.3; 

 

	 	(b)	Bidder’s Nominee executing the Scheme Transfers as transferee and delivering them to Target for registration; and 

 

	 	(c)	Target, immediately after receipt of the Scheme Transfers under clause 5(b), entering, or procuring the entry of, the name and address of Bidder’s Nominee in
the Target Register as the holder of all of the Scheme Shares. 

  

	6.	Provision of Scheme Consideration 

  

 
  

	6.1	Payment of Scheme Consideration 

  

	 	(a)	On the Business Day prior to the Implementation Date, Target must procure that Bidder, in accordance with its covenant in favour of Scheme Shareholders contained in
clause 5.2 of the Deed Poll, must or must cause Bidder’s Nominee to deposit in cleared funds an amount equal to the Scheme Consideration into an Australian dollar denominated trust account, operated by Target as trustee for the Scheme
Participants, to be held on trust for the Scheme Participants for the purpose of paying the Scheme Consideration to each Scheme Participant, except that any interest on the amounts deposited (less bank fees and other charges) shall be to
Bidder’s or Bidder’s Nominee’s account. 

  

	 	(b)	On the Implementation Date and subject to Bidder having complied with clause 6.1(a), Target must pay or procure the payment of the Scheme Consideration to each Scheme
Shareholder from the account referred to in clause 6.1(a). 

  

	 	(c)	The obligations of Target under clause 6.1(b) shall be satisfied by Target taking the following actions on the Implementation Date: 

 

	 	(i)	despatching, or procuring the despatch, to that Scheme Participant of a pre printed cheque in the name of that Scheme Participant and for the relevant amount
(denominated in $ noting that Target Shareholders domiciled in the United Kingdom may elect to be paid in pounds sterling (GBP) in accordance with existing payment arrangements) with such despatch to be made by pre-paid post to that Scheme
Participant’s Registered Address (as at the Record Date); or 

  

  

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	Scheme of Arrangement	 	

  
  

 

	 	(ii)	making, or procuring the making of, a deposit for the relevant amount (denominated in $) in an account with any Australian ADI in Australia notified by that Scheme
Participant to Target and recorded in or for the purposes of the Target Register as at the Record Date. 

  

	6.2	Joint holders 

 In the
case of Scheme Shares held in joint names any cheque required to be paid to Scheme Participants will be payable to the joint holders and will be forwarded to the holder whose name appears first in the Target Register as at the Record Date.

  

	7.	Dealings in Target Shares 

  

 
  

	7.1	Dealings in Target Shares by Scheme Participants 

For the purpose of establishing the persons who are Scheme Participants, dealings in Target Shares will be recognised by Target provided
that: 
  

	 	(a)	in the case of dealings of the type to be effected using CHESS, the transferee is registered in the Target Register as the holder of the relevant Target Shares by the
Record Date; and 

  

	 	(b)	in all other cases, registrable transfers or transmission applications in respect of those dealings are received by the Target Share Registry by 5pm on the day which is
the Record Date (in which case Target must register such transfers or transmission applications before 7pm on that day), 

and Target will not accept for registration, nor recognise for the purpose of establishing the persons who are Scheme Participants, any
transfer or transmission application in respect of Target Shares received after such times, or received prior to such times but not in registrable form. 
  

	7.2	Target Register 

 Target
will, until the Scheme Consideration has been provided and the name and address of Bidder’s Nominee has been entered in the Target Register as the holder of all of the Scheme Shares, maintain, or procure the maintenance of, the Target Register
in accordance with this clause 7, and the Target Register in this form and the terms of the Scheme will solely determine entitlements to the Scheme Consideration. As from the Record Date (and other than for Bidder’s Nominee following the
Implementation Date), each entry in the Target Register as at the Record Date relating to Scheme Shares will cease to have any effect other than as evidence of the entitlements of Scheme Participants to the Scheme Consideration in respect of those
Scheme Shares. 
  

	7.3	Effect of share certificates and holding statements 

As from the Record Date (and other than for Bidder’s Nominee following the Implementation Date), all share certificates and holding
statements for Scheme Shares will cease to have effect as documents of title in respect of those Scheme Shares. 
  

	7.4	Information to be given to Bidder 

Target must procure that, as soon as practicable after the Record Date and in any event at least 1 Business Day before the
Implementation Date, details of the names, Registered Addresses and holdings of Target Shares of every Scheme Participant as shown in the Target Register as at the Record Date are given to Bidder (or as it directs) in such form as Bidder may
reasonably require. 
  

  

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	7.5	No disposals after Record Date 

If the Scheme becomes Effective, each Scheme Participant, and any person claiming through that Scheme Participant, must not dispose of or
purport or agree to dispose of any Scheme Shares or any interest in them after the Record Date. 
  

	8.	Suspension and Termination of Quotation of Target Shares 

  

 
  

	 	(a)	Target must apply to ASX for suspension of trading of the Target Shares on ASX with effect from the close of business on the Effective Date, or from such earlier time
as may be reasonably appropriate to ensure that all trades made prior to suspension may be completed, and the Target Register amended accordingly, prior to the Record Date. 

 

	 	(b)	Target must apply to ASX for termination of official quotation of the Target Shares on ASX and the removal of Target from the official list of ASX with effect from the
Business Day immediately following the Implementation Date, or from such later date as may be determined by Bidder. 

  

	9.	General Provisions 

  

 
  

	9.1	Further assurances 

  

	 	(a)	Each Scheme Participant and Target will do all things and execute all deeds, instruments, transfers or other documents as may be necessary or desirable to give full
effect to the terms of the Scheme and the transactions contemplated by it. 

  

	 	(b)	Without limiting Target’s other powers under the Scheme, Target has power to do all things that it considers necessary or desirable to give effect to the Scheme
and the Scheme Implementation Agreement. 

  

	9.2	Scheme Participants’ agreements and consents 

Each Scheme Participant: 
  

	 	(a)	irrevocably agrees to the transfer of their Scheme Shares, together with all rights and entitlements attaching to those Scheme Shares, to Bidder’s Nominee in
accordance with the terms of the Scheme; and 

  

	 	(b)	irrevocably consents to Target, Bidder and Bidder’s Nominee doing all things and executing all deeds, instruments, transfers or other documents as may be necessary
or desirable to give full effect to the terms of the Scheme and the transactions contemplated by it, 

 without the
need for any further act by that Scheme Participant. 
  

  

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	9.3	Appointment of Target as attorney for implementation of Scheme 

Each Scheme Participant, without the need for any further act by that Scheme Participant, irrevocably appoints Target as that Scheme
Participant’s agent and attorney for the purpose of: 
  

	 	(a)	doing all things and executing all deeds, instruments, transfers or other documents as may be necessary or desirable to give full effect to the terms of the Scheme and
the transactions contemplated by it, including the effecting of a valid transfer or transfers (or the execution and delivery of any Scheme Transfers) under clause 5(a); and 

	 	(b)	enforcing the Deed Poll against Bidder and Bidder’s Nominee, 

and Target accepts such appointment. Target, as agent and attorney of each Scheme Participant, may sub delegate its functions, authorities
or powers under this clause 9.3 to all or any of its directors and officers (jointly, severally, or jointly and severally). 
  

	9.4	Warranty by Scheme Participants 

Each Scheme Participant is deemed to have warranted to Bidder and Bidder’s Nominee, and, to the extent enforceable, to have appointed
and authorised Target as that Scheme Participant’s agent and attorney to warrant to Bidder and Bidder’s Nominee, that all of their Scheme Shares (including any rights and entitlements attaching to those Scheme Shares) will, at the time of
the transfer of them to Bidder’s Nominee pursuant to the Scheme, be fully paid and free from all mortgages, charges, liens, encumbrances, pledges, security interests and other interests of third parties of any kind, whether legal or otherwise,
and restrictions on transfer of any kind, and that they have full power and capacity to sell and to transfer their Scheme Shares (together with any rights and entitlements attaching to those Scheme Shares) to Bidder’s Nominee pursuant to the
Scheme. Target undertakes in favour of each Scheme Participant that it will provide such warranty, to the extent enforceable, to Bidder’s Nominee on behalf of that Scheme Participant. 

 

	9.5	Title to Scheme Shares 

Bidder’s Nominee will be beneficially entitled to the Scheme Shares transferred to it under the Scheme pending registration by Target
of the name and address of Bidder’s Nominee in the Target Register as the holder of the Scheme Shares. 
  

	9.6	Appointment of Bidder as attorney for Scheme Shares 

  

	 	(a)	From the Effective Date until Bidder’s Nominee is registered in the Target Register as the holder of all Scheme Shares, each Target Shareholder:

  

	 	(i)	without the need for any further act by that Target Shareholder, irrevocably appoints Bidder’s Nominee as its proxy to (and irrevocably appoints Bidder’s
Nominee as its agent and attorney for the purpose of appointing any director or officer of Bidder as that Target Shareholder’s proxy and, where appropriate, its corporate representative to): 

 

	 	(A)	attend shareholders’ meetings of Target; 

  

	 	(B)	exercise the votes attaching to the Target Shares registered in the name of the Target Shareholder; and 

 

	 	(C)	sign any Target Shareholders’ resolution; and 

  

  

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	Scheme of Arrangement	 	

  
  

 

  

	 	(ii)	must take all other action in the capacity of a Target Shareholder as Bidder’s Nominee reasonably directs. 

 

	 	(b)	From the Effective Date until Bidder’s Nominee is registered in the Target Register as the holder of all Scheme Shares, no Target Shareholder may attend or vote at
any meetings of Target Shareholders or sign any Target Shareholders’ resolution (whether in person, by proxy or by corporate representative) other than under this clause 9.6. 

 

	9.7	Alterations and conditions to Scheme 

If the Court proposes to approve the Scheme subject to any alterations or conditions, Target may, by its counsel or solicitors, and with
the prior consent of Bidder, consent on behalf of all persons concerned, including each Target Shareholder, to those alterations or conditions. 
  

	9.8	Binding effect of Scheme 

The Scheme binds Target and all of the Target Shareholders from time to time (including those who did not attend the Scheme Meeting, did
not vote at that meeting or voted against the Scheme) and, to the extent of any inconsistency, overrides the constitution of Target. 
  

	9.9	Enforcement of Deed Poll 

Target undertakes in favour of each Scheme Participant that it will enforce the Deed Poll against Bidder and Bidder’s Nominee on
behalf of and as agent and attorney for the Scheme Participants. 
  

	9.10	Notices 

 Where a notice,
transfer, transmission application, direction or other communication referred to in the Scheme is sent by post to Target, it will not be deemed to be received in the ordinary course of post or on a date other than the date (if any) on which it is
actually received at Target’s registered office or by the Target Share Registry, as the case may be. 
  

	9.11	Costs and stamp duty 

  

	 	(a)	Subject to clause 9.11(b), each of Bidder and Target will pay their share of the costs of the Scheme in accordance with the Scheme Implementation Agreement.

  

	 	(b)	Bidder will pay all stamp duty (including related fines, penalties and interest) payable on or in connection with the transfer by Scheme Participants of the Scheme
Shares to Bidder’s Nominee pursuant to the Scheme. 

  

	9.12	Governing law and jurisdiction 

  

	 	(a)	This Scheme is governed by and is to be construed in accordance with the laws of Queensland, Australia. 

 

	 	(b)	Each party irrevocably and unconditionally submits to the non-exclusive jurisdiction of courts of Queensland, Australia and of the Commonwealth of Australia and any
courts which have jurisdiction to hear appeals from any of those courts and waives any right to object to any proceedings being brought in those courts. 

  

	 	(c)	To the extent that Bidder and Bidder’s Nominee are or may become entitled to, or have attributed to them, any right of immunity on the grounds of sovereignty or
otherwise in relation to or in respect of any claim in relation to this document, both Bidder and Bidder’s Nominee waive all such rights, and agree not to plead or claim any such rights. 

 

  

page 60 

 Annexure B 

Deed Poll 

 

 

  
  

Yanzhou Coal Mining Company Limited 
  

 
 Austar Coal Mine Pty Limited 

 
  

Deed Poll 
  

  

page 61 

 Contents 
  

							
	1	 	Interpretation	  	1
		 	 1.1
	 	Definitions	  	1
		 	 1.2
	 	Construction	  	2
		 	 1.3
	 	Headings	  	2
			
	2	 	Nature of deed poll	  	2
			
	3	 	Conditions precedent and termination	  	2
		 	 3.1
	 	Conditions precedent	  	2
		 	 3.2
	 	Termination	  	2
		 	 3.3
	 	Consequences of termination	  	3
			
	4	 	Certificate in relation to conditions	  	3
			
	5	 	Scheme Consideration	  	3
		 	 5.1
	 	Performance of obligations generally	  	3
		 	 5.2
	 	Payment of Scheme Consideration	  	3
			
	6	 	Letter of Credit	  	4
		 	 6.1
	 	Establishment	  	4
		 	 6.2
	 	Terms of Letter of Credit	  	4
		 	 6.3
	 	Default	  	4
			
	7	 	 Representations and warranties
	  	4
			
	8	 	 Continuing obligations
	  	5
			
	9	 	 Stamp duty
	  	5
			
	10	 	 Notices
	  	5
		 	 10.1
	 	General	  	5
		 	 10.2
	 	How to give a Notice	  	5
		 	 10.3
	 	Particulars for delivery of Notices	  	6
		 	 10.4
	 	Communications by post	  	6
		 	 10.5
	 	Communications by fax	  	6
		 	 10.6
	 	After hours communications	  	6
		 	 10.7
	 	Process service	  	6
			
	11	 	 General
	  	7
		 	 11.1
	 	Waiver	  	7
		 	 11.2
	 	Cumulative rights	  	7
		 	 11.3
	 	Amendment	  	7
		 	 11.4
	 	Assignment	  	7
		 	 11.5
	 	Severability	  	7
		 	 11.6
	 	Further assurances	  	8
		 	 11.7
	 	Governing law and jurisdiction	  	8

  

 Date 

By 

Yanzhou Coal Mining Company Limited of 298 Fushan South Road, Zoucheng Shandong Province, People’s Republic of
China (Bidder) 
 Austar Coal Mine Pty Limited ACN 111 910 822 of Level 11, 68 York Street Sydney New South
Wales (Bidder’s Nominee) 
 in favour of each Scheme Participant. 

Background 
  

	A	Bidder and Target have entered into the Scheme Implementation Agreement. 

  

	B	Under the Scheme Implementation Agreement, Target has agreed to propose the Scheme, the effect of which will be that Bidder’s Nominee acquires all of the Scheme
Shares from Scheme Participants for the Scheme Consideration. 

  

	C	Under the Scheme Implementation Agreement, Bidder has agreed, subject to the satisfaction or waiver of certain conditions, to do all things necessary or expedient on
its part to implement the Scheme (and will procure the performance by Bidder’s Nominee of the obligations contemplated of Bidder’s Nominee under the Scheme), including paying the Scheme Consideration. 

 

	D	Each of Bidder and Bidder’s Nominee are entering into this document for the purpose of covenanting in favour of Scheme Participants to perform their obligations
under the Scheme. 

 Declarations 
  

	1	Interpretation 

  

	1.1	Definitions 

 In this
document: 
  

	 	(a)	Dividend Amount means $1.00 cash for each Target Share excluding any in specie distribution, if any, to effect the SAC Divestment; 

 

	 	(b)	Facility means the Letter of Credit facility between Bidder’s Nominee and Financier for the issue of the Letter of Credit; 

 

	 	(c)	Financier means Bank of China, Sydney branch, or such bank operating in Australia appointed by Bidder’s Nominee, as reasonably approved in writing by
Target, to issue the Letter of Credit; 

  

	 	(d)	Letter of Credit means an irrevocable letter of credit for not less than the Outstanding Amount issued by Financier in favour of the Shareholders Agent in
accordance with the terms in clause 6.2 and in terms reasonably acceptable to Target; 

	 	(e)	Outstanding Amount means any amount owing to Scheme Participants (or any of them) at the Implementation Date that is associated with the payment or funding of
the Dividend Amount, provided that such amount is not more than $0.50 for each Target Share; 

  

	 	(f)	Scheme means the scheme of arrangement between Target and the Scheme Participants under Part 5.1 of the Corporations Act, subject to any alterations or
conditions made or required by the Court under section 411(6) of the Corporations Act and approved in writing by Bidder and Target; 

  

	 	(g)	Shareholders Agent means Computershare Investor Services Pty Limited or such other agent appointed by Target to act on behalf of the relevant Scheme Participants
who undertakes to distribute the full amount of any funds received from the Financier to the relevant Scheme Participants; and 

  

	 	(h)	words and phrases defined in the Scheme have the same meaning in this document unless the context requires otherwise. 

 

	1.2	Construction 

 Clause
1.2 of the Scheme applies to the construction of this document. 
  

	1.3	Headings 

 Headings do not
affect the interpretation of this document. 
  

	2	Nature of deed poll 

Bidder and Bidder’s Nominee acknowledge that: 
  

	 	(a)	this document may be relied on and enforced by any Scheme Participant in accordance with its terms, notwithstanding that that person is not a party to this document;
and 

  

	 	(b)	under the Scheme, each Scheme Participant appoints Target as its agent and attorney to enforce this document against Bidder and Bidder’s Nominee on behalf of that
Scheme Participant. 

  

	3	Conditions precedent and termination 

  

	3.1	Conditions precedent 

 The
obligations of Bidder and Bidder’s Nominee under this document are subject to the Scheme becoming Effective. 
  

	3.2	Termination 

 If:

  

	 	(a)	the Scheme Implementation Agreement is terminated in accordance with its terms; or 

 

  

page 2 

	 	(b)	the Scheme does not become Effective on or before the End Date, 

Bidder’s and Bidder’s Nominee’s obligations under this document will automatically terminate, unless Bidder and Target
otherwise agree in writing in accordance with the Scheme Implementation Agreement. 
  

	3.3	Consequences of termination 

If this document is terminated under clause 3.2 then, in addition and without prejudice to any other rights, powers or
remedies available to Scheme Participants: 
  

	 	(a)	Bidder and Bidder’s Nominee are released from their obligations to further perform this document except those obligations contained in clause 9; and

  

	 	(b)	each Scheme Participant retains any rights, powers or remedies it has against Bidder and Bidder’s Nominee in respect of any breach of this document by Bidder and
Bidder’s Nominee which occurred before termination of this document. 

  

	4	Certificate in relation to conditions 

Bidder must provide to the Court on the Second Court Date a certificate which is authorised by the board of Bidder and signed by at least
one duly authorised representative of Bidder (or such other evidence as the Court may request) stating, to the best of its knowledge, whether or not the conditions precedent set out in clause 3.1 of the Scheme have been satisfied or waived in
accordance with the terms of the Scheme Implementation Agreement as at 8.00 am on the Second Court Date. 
  

	5	Scheme Consideration 

  

	5.1	Performance of obligations generally 

Subject to clause 3, each of Bidder and Bidder’s Nominee must comply with their obligations under the Scheme Implementation
Agreement and must do all things necessary or desirable on their part to implement the Scheme. 
  

	5.2	Payment of Scheme Consideration 

Subject to clause 3, in consideration for the transfer to Bidder’s Nominee of each Scheme Share on the Implementation Date,
Bidder must or must cause Bidder’s Nominee to pay the Scheme Consideration in accordance with clause 6.1(a) of the Scheme. 
  

  

page 3 

	6	Letter of Credit 

  

	6.1	Establishment 

 Bidder
must or must cause Bidder’s Nominee to, on or before 8.00am on the Second Court Date: 
  

	 	(a)	establish the Facility with the Financier; and 

  

	 	(b)	procure the Financier to issue the Letter of Credit to the Shareholders Agent, 

unless advised in writing by Target that the Outstanding Amount will be paid by Target to the relevant Scheme Participants on or prior to
the Implementation Date. 
  

	6.2	Terms of Letter of Credit 

The Letter of Credit must provide: 
  

	 	(a)	that the Financier must immediately discharge its obligations under the Letter of Credit by depositing in cleared funds into the Shareholders Agent’s nominated
bank account funds totalling the Outstanding Amount, subject to the following conditions being satisfied: 

  

	 	(i)	the Outstanding Amount has not been paid to the relevant Scheme Participants within 3 months of the Implementation Date; and 

 

	 	(ii)	presentation to the Financier of the Letter of Credit; 

  

	 	(b)	that the Letter of Credit expires on the earlier of: 

  

	 	(i)	the payment of the Outstanding Amount to the relevant Scheme Participants; and 

 

	 	(ii)	the payment by the Financier of the Outstanding Amount to the Shareholders Agent in accordance with clause 6.2(a); and 

 

	 	(c)	an acknowledgement that as part of the arrangements contemplated by this document the Outstanding Amount may be owing by Target to Target Shareholders at the
Implementation Date. 

  

	6.3	Default 

 If the Financier
does not comply with its obligations under clause 6.2(a), Bidder must or must cause Bidder’s Nominee to, within a period of 10 Business Days after the non-compliance by Financier, deposit in cleared funds into the Shareholders
Agent’s nominated bank account funds totalling the Outstanding Amount. 
  

	7	Representations and warranties 

Bidder and Bidder’s Nominee each represent and warrant that: 

 

	 	(a)	it is a company validly existing under the laws of its place of incorporation; 

 

  

page 4 

	 	(b)	it has the power to enter into and perform its obligations under this document, including carrying out the transactions contemplated by this document;

  

	 	(c)	it has taken all necessary corporate action to authorise the entry into this document and has taken or will take all necessary corporate action to authorise the
performance of this document and to carry out the transactions contemplated by this document; 

  

	 	(d)	this document is its valid and binding obligation enforceable in accordance with its terms; and 

 

	 	(e)	the execution and performance by it of this document and each transaction contemplated by this document did not and will not violate in any respect a provision of:

  

	 	(i)	a law, judgement, ruling, order or decree binding on it; or 

  

	 	(ii)	its constitution or other constituent documents. 

  

	8	Continuing obligations 

This document is irrevocable and, subject to clause 3, remains in full force and effect until the earlier of: 

 

	 	(a)	Bidder and Bidder’s Nominee completely performing their obligations under this document; or 

 

	 	(b)	this document being terminated in accordance with clause 3. 

  

	9	Stamp duty 

 All stamp
duty (including fines, penalties and interest) that may be payable on or in connection with this document and any instrument executed under this document must be borne by Bidder. Bidder must indemnify each Scheme Participant on demand against any
liability for that stamp duty. 
  

	10	Notices 

  

	10.1	General 

 Any notice,
transfer, transmission, application, direction, demand, consent or other communication (Notice) given or made to Bidder or Bidder’s Nominee under this document must be in writing, in English, and signed by the sender or a person duly
authorised by the sender. 
  

	10.2	How to give a Notice 

 A
Notice must be given to Bidder or Bidder’s Nominee by being: 
  

	 	(a)	personally delivered; 

  

	 	(b)	left at Bidder’s or Bidder’s Nominee’s current address for notices; 

 

  

page 5 

	 	(c)	sent to Bidder’s or Bidder’s Nominee’s current address for notices by pre-paid ordinary mail or, if the address is outside Australia, by pre-paid
airmail; or 

  

	 	(d)	sent by fax to Bidder’s or Bidder’s Nominee’s current fax number for notices. 

 

	10.3	Particulars for delivery of Notices 

The particulars for delivery of Notices to Bidder and Bidder’s Nominee are: 

 

			
	Address:	  	 Suite 1105, Level 11
 68 York
Street
 Sydney NSW 2000

Australia

		
	Fax:	  	+61 2 8243 5388
	Attention:	  	Mr Cunliang Lai (CEO Director)

 copy to

 Andrew Lumsden 

Corrs Chambers Westgarth 

GPO Box 9925 

Sydney NSW 2001 

+612 9210 6611 
  

	10.4	Communications by post 

Subject to clause 10.6, a Notice is given if posted: 

 

	 	(a)	within Australia to an Australian address, three Business Days after posting; or 

 

	 	(b)	in any other case, ten Business Days after posting. 

  

	10.5	Communications by fax 

Subject to clause 10.6, a Notice is given if sent by fax, when the sender’s fax machine produces a report that the fax
was sent in full to the addressee. That report is conclusive evidence that the addressee received the fax in full at the time indicated on that report. 
  

	10.6	After hours communications 

If a Notice is given: 
  

	 	(a)	after 5.00 pm in the place of receipt; or 

  

	 	(b)	on a day which is a Saturday, Sunday or bank or public holiday in the place of receipt, 

it is taken as having been given at 9.00 am on the next day which is not a Saturday, Sunday or bank or public holiday in that place.

  

	10.7	Process service 

 Any
process or other document relating to litigation, administrative or arbitral proceedings relating to this document may be served by any method contemplated by this clause 10 or in accordance with any applicable law. 

 

  

page 6 

	11	General 

  

	11.1	Waiver 

 Failure to
exercise or enforce or a delay in exercising or enforcing or the partial exercise or enforcement of any right, power or remedy provided by law or under this document by any party will not in any way preclude, or operate as a waiver of, any exercise
or enforcement, or further exercise or enforcement of that or any other rights, power or remedy provided by law or under this document. A waiver is not valid or binding on the person granting that waiver unless made in writing. 

 

	11.2	Cumulative rights 

 The
rights, powers and remedies of Bidder, Bidder’s Nominee and of each Scheme Participant under this document are cumulative and do not exclude any other rights, powers or remedies provided by law or equity independently of this document.

  

	11.3	Amendment 

 This document
must not be varied unless either: 
  

	 	(a)	the variation is required by the Court at the hearing of the application made to the Court for an order under section 411(1) of the Corporations Act that the Scheme
Meeting be convened; or 

  

	 	(b)	both: 

  

	 	(i)	the variation is agreed to by Target, which agreement Target may give or withhold in its absolute discretion and without reference to or approval by any Scheme
Participant; and 

  

	 	(ii)	the Court indicates that the variation would not of itself preclude approval of the Scheme, 

in which event Bidder and Bidder’s Nominee will enter into a further deed poll in favour of Scheme Participants giving effect to such
variation. 
  

	11.4	Assignment 

 The rights
and obligations of Bidder and Bidder’s Nominee and of each Scheme Participant under this document are personal and must not be assigned, encumbered or otherwise dealt with at law or in equity and no person may attempt, or purport, to do so
without the prior written consent of Bidder and Target. 
  

	11.5	Severability 

 If the
whole or any part of a provision of this document is void, unenforceable or illegal in a jurisdiction it is severed for that jurisdiction. The remainder of this document has full force and effect and the validity or enforceability of that provision
in any other jurisdiction is not affected. This clause 11.5 has no effect if the severance alters the basic nature of this document or is contrary to public policy. 
  

  

page 7 

	11.6	Further assurances 

Bidder and Bidder’s Nominee will execute and deliver all documents and do all acts and things (on their own behalf and on behalf of
each Scheme Participant) necessary or desirable to give full effect to this document and the transactions contemplated by it. 
  

	11.7	Governing law and jurisdiction 

  

	 	(a)	This document is governed by and is to be construed in accordance with the laws applicable in Queensland, Australia. 

 

	 	(b)	Each party irrevocably and unconditionally submits to the non-exclusive jurisdiction of courts of Queensland, Australia and of the Commonwealth of Australia, and any
courts which have jurisdiction to hear appeals from any of those courts, and waives any right to object to any proceedings being brought in those courts. 

  

	 	(c)	To the extent that Bidder and Bidder’s Nominee are or may become entitled to, or have attributed to it, any right of immunity on the grounds of sovereignty or
otherwise in relation to or in respect of any claim in relation to this document, Bidder and Bidder’s Nominee waive all such rights, and agree not to plead or claim any such rights. 

 

  

page 8 

 Executed as a deed poll. 

 

					
	Executed by Yanzhou Coal Mining Company Limited	 	)	  	
			
	  
	 		  	  

	Legal Representative/Authorized Representative	 		  	Witness
			
	  
	 		  	  

	 Name of Legal

Representative/Authorized
 Representative (print)

	 		  	Name of witness (print)
			
	Executed by Austar Coal Mine Pty Limited	 	)	  	
			
	  
	 		  	  

	Company Secretary/Director	 		  	Director
			
	  
	 		  	  

	Name of Company Secretary/Director (print)	 		  	Name of Director (print)

  

  

page 9 

 Annexure C 

Announcement 
  

  

page 62 

 

 

 13 August 2009 

Australian Securities Exchange 
 Company
Announcements 
 Level 4 
 20 Bridge
Street 
 Sydney NSW 2000 
 FELIX
RESOURCES RECOMMENDS ALL-CASH OFFER FROM YANZHOU COAL MINING COMPANY 
 Highlights 

 

	•	 	 Shareholders will receive A$16.95 per share in cash from Yanzhou 

 

	•	 	 Shareholders will also receive dividends of A$1.00 per share 

 

	•	 	 Shareholders will also receive an in-specie distribution of shares with a cash backing of A$0.05 per share in Felix’s subsidiary South Australian
Coal Corporation (SACC) 

  

	•	 	 The transaction is unanimously recommended by Felix’s Board of Directors subject to the opinion of the Independent Expert and in the absence of a
superior proposal 

  

	•	 	 The consideration reflects an attractive premium to Felix’s share price when taking into account the dividends, ‘spin-off’ of SACC, and
recent take-over speculation 

  

	•	 	 As part of the A$1.00 per share in total dividends, Felix is today declaring a fully franked dividend of A$0.50 per share. The remainder of the
dividends are conditional on approval of the transaction and are expected to be fully franked 

  

	•	 	 Consolidates Yanzhou’s position in the Australian coal market and provides expertise and substantial funding capacity for the continued
development of the Moolarben project and for future exploration and development 

  

	•	 	 Yanzhou is committed to retaining Felix’s existing employees and management and maintaining the current workforce at Yanzhou’s current
Australian operations. Yanzhou will grow the combined workforce as development projects are brought into production and future exploration opportunities become development projects 

 

	•	 	 Yanzhou is committed to establishing a strong corporate presence in Australia and will keep Felix’s head office located in Australia

  

	•	 	 Yanzhou will continue the timely development of Felix’s Moolarben project and remains focused on funding and growing Felix’s exploration
program in Australia, including the Athena, Wilpeena and Harrybrandt projects 

  

	•	 	 Yanzhou will continue the research and development on Felix’s Ultra Clean Coal technology at Felix’s Cessnock R&D facilities

  

	•	 	 Yanzhou is committed to working with Felix’s existing joint venture partners to ensure optimal performance of Felix’s assets. These joint
venture partners are established multinational companies 

  

	•	 	 Completion of the transaction is subject to regulatory approvals and other conditions including the ‘spin-off’ by Felix of SACC.

  

 1 

 Offer Summary 

Felix Resources Limited (“Felix”) is pleased to announce the proposed acquisition of all of the outstanding shares in Felix by Yanzhou Coal
Mining Company Limited (“Yanzhou”) via a scheme of arrangement (“the Offer”). On completion of the Offer, shareholders will have received: 
  

	 	•	 	 a cash payment of A$16.95 per share; 

  

	 	•	 	 the payment of dividends totaling A$1.00 per share, funded primarily from Felix’s cash reserves; 

 

	 	•	 	 as part of the A$1.00 per share in total dividends, Felix is today declaring a fully franked dividend of A$0.50 per share to be paid to shareholders in
respect of the year ended 30 June 2009. This dividend will be paid on 30 October 2009 with a record date of 15 October 2009, and; 

  

	 	•	 	 The record date for the second dividend of A$0.50 will be determined and announced to the market closer to completion. 

 

	 	•	 	 an in-specie distribution of shares in SACC which will have a cash backing of A$0.05 per share and coal and mineral exploration tenements in South
Australia. 

 To the extent that Felix does not have sufficient cash reserves to pay the remainder of the dividends, Yanzhou
will guarantee the payment within 3 months of the scheme implementation date. 
 The total value received by Felix
Shareholders for every Felix share represents a 28.5% premium to the 3 month
VWAP1. 

In assessing the value of the offer, it is recognised that the current share price of Felix has been impacted by recent market speculation of potential
corporate activity, including press reports of Yanzhou’s interest directly. 
 The Felix Board of Directors believes that the Offer is in
the best interests of shareholders. The Directors unanimously recommend that Felix shareholders vote in favour of the Offer. Each of the Directors intends to vote in favour of the Offer at the scheme meeting in relation to the Felix shares held or
controlled by them. The Directors recommendation and intention to vote on the Offer is subject to: 
  

	 	•	 	 the Independent Expert concluding that the Scheme of Arrangement is in the best interests of Felix shareholders; and 

 

	 	•	 	 there being no Superior Offer. 

Completion of the transaction is subject to a number of conditions including the approval by regulatory authorities in Australia and the People’s
Republic of China (“PRC”) as well as approval by both Felix and Yanzhou shareholders. 
 An Explanatory Memorandum containing
information relating to the Offer and the reasons for the Directors recommendation of the Offer is expected to be dispatched to Felix shareholders in late September. Felix’s shareholder meeting to approve the scheme of arrangement is expected
to be held in mid-December 2009. 
 Chairman of Felix, Mr Travers Duncan said: “The proposed transaction is an important milestone for
Felix shareholders. Since the acquisition of White Mining in April 2005, Felix has met a number of significant development milestones and delivered more than a six fold increase in value for shareholders 

 

	1
	 Based on the 3 month VWAP of $14.01 between 8 May 2009 and 7 August 2009. 

 

 2 

 “The Yanzhou offer allows shareholders to benefit from the certainty of cash consideration which fully
values Felix, without taking on the risks associated with Felix’s next phase of growth 
 “Given Yanzhou’s global experience and
expertise in coal mining, we believe that Yanzhou is well positioned to continue Felix’s development to the benefit of all stakeholders, including their commitment to maintain and possibly expand employee numbers. In addition, Felix will
continue to be headquartered in Australia and will continue to generate substantial economic benefits for the economy for many years to come 

“Both Felix and Yanzhou recognise that the Offer is subject to a range of regulatory and shareholder approvals in Australia and China and, fully
respecting those processes, both companies will work constructively with authorities at all times. 
 “Both companies recognise the
importance of this transaction and its potential to deliver significant employment and economic benefits,” Mr Duncan said. 
 Key
conditions and funding 
 Key conditions contained within the Scheme Implementation Agreement between Felix and Yanzhou include: 

 

	•	 	 Foreign Investment Review Board (“FIRB”) approval; 

 

	•	 	 PRC Government approvals, including the China Securities Regulatory Commission (“CSRC”), the State-owned Assets Supervision and
Administration Commission (“SASAC”), State Administration of Foreign Exchange (“SAFE”), Ministry of Commerce (“MOFCOM”) and National Development and Reform Commission (“NDRC”); 

 

	•	 	 Any necessary ASIC and ASX approval; 

  

	•	 	 ‘Spin-off’ by Felix of SACC; 

  

	•	 	 The independent expert concludes the scheme is in the best interest of shareholders; 

 

	•	 	 No other material transactions or prescribed occurrences; 

 

	•	 	 No material adverse changes impacting the value of Felix, its assets and operations; 

 

	•	 	 Yanzhou shareholder approval; 

  

	•	 	 Felix shareholder approval; 

  

	•	 	 Final approval from Yanzhou’s banks; and 

  

	•	 	 Court approval of the scheme. 

The summary terms and conditions of the Offer are set out in the Attachment. 

Yanzhou has indicated that the Offer will be financed from its existing cash resources (approximately A$1.8 billion as at 30 June 2009) and bank
debt. Yanzhou has access to significant capital from Chinese institutions and has received indicative approval for a long-term credit facility to fund the remainder of the purchase price. 

 

 3 

 South Australia Coal Corporation 

SACC is currently a subsidiary of Felix and owns 100% of the Lake Phillipson exploration projects which include a coal deposit and is also prospective for
other minerals. As part of the transaction it is proposed that SACC will be demerged via an in-specie distribution of shares to all Felix shareholders in proportion to their existing shareholding. In addition to the exploration assets SACC will
retain A$10 million in cash at the time it is demerged. SACC is expected to seek an ASX listing following the proposed demerger. 
 Information
about the SACC assets has been provided in previous annual reports. 
 The details of the in-specie distribution, including the ratio of SACC
shares to Felix shares, will be provided to shareholders in the Explanatory Memorandum. 
 Indicative timetable 

Subject to the timely receipt of necessary approvals, Felix expects the transaction to be completed by late December 2009. The indicative timetable for
implementation of the proposed scheme of arrangement is set out below. 
  

			
	 Date
	  	 Item

	Late-September	  	Explanatory Memorandum dispatched to Felix shareholders
	Late-September	  	Satisfaction of Australian regulatory approvals
	Mid-October	  	Yanzhou shareholder approval
	Late-October	  	Payment of first Felix dividend of A$0.50
	Early-November	  	Final PRC and Hong Kong regulatory approvals obtained
	Early-December	  	Felix shareholder meeting to approve scheme of arrangement
	Mid-December	  	Scheme of arrangement becomes effective
	Late-December	  	Felix shareholders receive Offer consideration of A$16.95 plus the second dividend of A$0.50

Advisers 
 Citi and Wilson HTM are acting
as financial advisers and Aliens Arthur Robinson are acting as legal advisers to Felix. 
 UBS Investment Bank is acting as financial adviser
and Corrs Chambers Westgarth is acting as Australian legal adviser to Yanzhou. 
 Felix: 

For further information please contact Brian Flannery – Managing Director +617 3248 7900 

About Felix 
 Felix is an independent
ASX-listed coal producer with four operating mines and exploration interests in New South Wales and Queensland. The Company produces PCI, semi-soft coking and thermal coals, and is a party to the Newcastle Coal Infrastructure Group (NCIG). Its major
export markets are located in Japan, South Korea, Taiwan, China and India 
 Further information regarding Felix’s business is available
from its website: www.felixresources.com.au 
  

 4 

 Yanzhou: 

For further information please contact Ian Smith – Bespoke Approach +618 84192888 ismith@bespokeapproach.com 

About Yanzhou 
 Yanzhou Coal Mining
Company Limited is a publicly-traded company that is listed in Hong Kong, New York and Shanghai. 
 Yanzhou is located in the Shandong Province,
PRC, and is principally engaged in underground coal mining, preparation and processing, sales and railway transportation for coal. Yanzhou operates six coal mines in PRC as well as a regional rail network that links these mines with the national
rail network. Yanzhou also has presence in Australia through its 100% owned subsidiary Yancoal Australia, which acquired and re-opened the Austar Coal Mine in early 2005. The Austar Coal Mine is a longwall underground mine located in New South
Wales. Yanzhou has brought mining technology novel to Australia to significantly increase the coal recovered from the Austar Coal Mine. 

Yanzhou has grown into a large-scale coal enterprise with a strong presence in the markets of South and East China, Northeast Asia and Australia. Yanzhou
employs over 47 thousand people worldwide. 
 Further information regarding Yanzhou’s business is available from its website:

 http://www.vanzhoucoal.com.cn 
  

 5 

 Attachment – Summary of key terms of Scheme Implementation Agreement 

Felix Resources Limited (Felix) and Yanzhou Coal Mining Company Limited (Yanzhou) have entered into a Scheme Implementation Agreement (SIA) dated
13 August 2009 which sets out the obligations of Felix and Yanzhou in connection with the implementation of the proposed transaction. 
 A
summary of the structure of the transaction and an outline of the key terms of the SIA are set out below. 
  

	1.	Transaction structure 

Felix will propose a scheme of arrangement (Scheme) under which Felix shareholders participating in the Scheme will transfer their shares
in Felix (Scheme Shares) to Yanzhou for cash consideration of A$16.95 for each Scheme Share. 
 Shareholders will also receive
from Felix cash dividends totaling A$1.00 per share (being the A$0.50 dividend declared today and a special dividend of A$0.50 payable to shareholders no later than 3 months after implementation of the transaction). Felix also proposes to make an
in-specie distribution of shares in Felix’s subsidiary South Australian Coal Corp (SACC) with a cash backing of A$0.05 per share. 
  

	2.	Conditions Precedent 

Implementation of the Scheme is subject to the satisfaction or waiver of a number of Conditions Precedent being that: 

 

	 	a)	FIRB, ASIC, ASX and People’s Republic of China government and regulatory approvals, and any other regulatory approvals required to implement the Scheme, are
obtained; 

  

	 	b)	no Governmental Agency acts in any way to restrain, prohibit or impede the implementation of the Scheme; 

 

	 	c)	no court order or other legal restraint exists to prevent the implementation of the Scheme; 

 

	 	d)	no Material Adverse Change occurs, including an event which diminishes consolidated net assets of the Felix group by A$200 million or more, or diminishes the aggregated
consolidated annual net profit before tax of the Felix group over 5 consecutive financial years by A$100 million or more, or has the result that the Felix group is unable to carry on its business in substantially the same manner but excluding any
event beyond the control of the Felix group (which includes any event that relates to interest rates, commodity prices or currency exchange rates); 

  

	 	e)	no Prescribed Occurrence occurs, including changes in the structure of Felix’s share capital or (other than in the ordinary course of business and consistent with
the business plans for Felix’s joint ventures or Yarrabee) a member of the Felix group acquiring or disposing assets for more than A$5 million or entering contracts involving revenue or expenditure of more than A$5 million (without
Yanzhou’s consent); 

  

	 	f)	no Material Transaction occurs, including an issue of debentures, constitutional amendments, disposal of shares (other than in relation to the in-specie distribution of
the shares in SACC), incurring of financial indebtedness other than in the ordinary course of business or as disclosed, making capital contributions (other than in relation to the in-specie distribution of the shares in SACC) and making material
changes to joint venture agreements; 

  

	 	g)	the Scheme is approved by the Federal Court of Australia; 

  

	 	h)	the Scheme is approved by the required majorities of Felix shareholders at the Scheme Meeting; 

 

 6 

	 	i)	the Scheme is approved by a two-thirds majority of Yanzhou shareholders at a Yanzhou EGM; 

 

	 	j)	the Independent Expert to be appointed by Felix concludes that the Scheme is in the best interests of Felix shareholders; 

 

	 	k)	Yanzhou enters into the Financing Arrangements required to fund the payment of the Scheme Consideration to Felix shareholders participating in the Scheme;

  

	 	l)	Felix obtains all necessary consents, waivers and releases required from the providers of its finance facilities; 

 

	 	m)	Felix obtains a waiver from each relevant party of all rights that may arise as a result of the transaction under certain of the Joint Venture Agreements including
Ashton and Minerva; 

  

	 	n)	Felix effects the divestment of SACC, to be effected by declaration of an in-specie distribution of SACC shares in the absence of any agreement to the contrary;

  

	 	o)	all representations and warranties given in the SIA are materially true and correct as at relevant dates; and 

 

	 	p)	Felix does not make dividend payments of over A$1.00 (not including any in-specie distribution of shares in SACC or dividends made between Felix group members).

 Each party has agreed to use all reasonable endeavours to procure that each of the Conditions Precedent for
which it is responsible is satisfied as soon as practicable and that there is no occurrence that would prevent the Conditions Precedent for which it is responsible being satisfied. Most of the Conditions Precedent noted above may be waived by one or
both parties as specified in the SIA. 
  

	3.	Implementation 

 Each of
Felix and Yanzhou are obliged to use all reasonable endeavours and utilise all necessary resources to produce the Scheme Booklet and progress the Scheme in accordance with the timetable set out in the SIA. 

Felix has agreed to commission an Independent Expert’s Report in respect of the Scheme, and to carry on its business and operations
in the ordinary course and substantially consistent with the manner in which they have been conducted previously. 
 The SIA also
contains specific provisions dealing with the issue, exercise or cancellation of all outstanding options and option rights under the existing Felix equity participation plans. 

 

	4.	Reconstitution of Felix Board 

Felix’s Board will be reconstituted with Yanzhou nominees on the Implementation Date. 

 

	5.	Recommendation of Felix Board 

Felix has agreed to use its reasonable endeavours to procure that each of its directors maintains their recommendation of the transaction,
subject to: 
  

	 	a)	the Independent Expert concluding that the transaction is in the best interests of Felix shareholders; and 

 

	 	b)	there being no Superior Proposal (being, in summary, a publicly announced bona fide counterproposal from a third party which the Felix Board determines, acting in
accordance with its fiduciary duties, is capable of being valued and completed and is more favourable to Felix shareholders than the Scheme). 

  

 7 

	6.	Break Fees 

 Felix and
Yanzhou have agreed that a break fee of A$33.3 million (“Break Fee”) will be payable in the following circumstances: 
  

	 	a)	Felix will pay the Break Fee to Yanzhou if: 

  

	 	i.	in the period up to implementation (or termination) of the Scheme, any Felix director fails to state that the transaction is in the best interests of Felix shareholders
or publicly changes or withdraws their recommendation, or a Competing Proposal is recommended by a majority of the Felix Board; 

  

	 	ii.	a Competing Proposal is announced or made before the expiry of the Exclusivity Period, and is completed before the first anniversary of the SIA, as a result of which a
third party acquires a Relevant Interest and/or economic interest in at least 20% of the shares in Felix; or 

  

	 	iii.	the SIA is terminated by Yanzhou because of Felix’s material breach or breach of Felix’s exclusivity obligations (discussed in section 7 below); and

  

	 	b)	Yanzhou will pay the Break Fee to Felix if Felix terminates the SIA because of Yanzhou’s material breach or where Yanzhou fails to obtain financing required to
fund the transaction. 

 A Competing Proposal is, in summary, any proposal by a third party to acquire 20% or more
of the shares (or a 20% economic interest) in Felix, or to gain effective control over Felix (by controlling the composition of Felix’s board or the votes attaching to 50% or more of Felix’s shares), or directly or indirectly acquire a
significant shareholding or economic interest in the Felix group (not including in relation to the in-specie distribution of SACC shares to Felix shareholders). 
  

	7.	Exclusivity 

 Under the
SIA, Felix has agreed to the following exclusivity arrangements until implementation (or termination) of the Scheme: 
  

	 	a)	(No shop restriction) it will not solicit or encourage Competing Proposals; 

 

	 	b)	(No talk restriction) it will not negotiate or enter into discussions with any Third Party in relation to a Competing Proposal; and 

 

	 	c)	(No due diligence) it will not provide any due diligence information for the purposes of enabling a Third Party to make a Competing Proposal. 

The ‘no talk’ and ‘no due diligence’ restrictions will not apply to a Competing Proposal that is not solicited in
breach of the SIA and that the Felix Board determines, in accordance with its fiduciary or statutory duties, to be a Superior Proposal. 

Felix is also required to notify Yanzhou of the details of any approaches made to Felix that may potentially lead to a Competing Proposal.
If Felix receives a Superior Proposal, Felix’s Board must provide Yanzhou with a 5 Business Day period within which Yanzhou can put forward a counterproposal. If Felix’s Board decides that such counterproposal produces a superior outcome
for the Felix shareholders than the Competing Proposal, then the counterproposal will be implemented. 
  

 8 

	8.	Termination 

 The SIA
provides for the following termination rights: 
  

	 	a)	by either party if: 

  

	 	i.	the resolution to approve the Scheme submitted to the Scheme Meeting is not approved by the requisite majorities of Felix shareholders; 

 

	 	ii.	the Scheme has not become effective by 31 March 2010 (or such other date agreed by Yanzhou and Felix); 

 

	 	iii.	the Independent Expert concludes that the Scheme is not in the best interests of Felix shareholders; 

 

	 	iv.	either party materially breaches the SIA and fails to cure such breach within 5 Business Days; 

 

	 	v.	the Federal Court of Australia refuses to make an order convening the Scheme Meeting or approving the Scheme; 

 

	 	vi.	a court or other regulatory authority issues an order, decree or ruling or takes any other action which permanently restrains or prohibits the Scheme;

  

	 	vii.	there is a failure of a Condition Precedent; or 

  

	 	viii.	an Insolvency Event occurs in relation to either party or material members of the corporate groups of Felix or Yanzhou; 

 

	 	b)	by Yanzhou if: 

  

	 	i.	Target breaches its exclusivity obligations (discussed in section 7 above); 

 

	 	ii.	any Felix director changes or withdraws their recommendation that Felix shareholders vote in favour of the Scheme; or 

 

	 	iii.	a Competing Proposal in relation to Felix is recommended by Felix’s Board; and 

 

	 	c)	by Felix if Felix’s Board changes its recommendation of the Scheme, or recommends a Superior Proposal in relation to Felix. 

 

	9.	Representations and warranties 

 Each of
Felix and Yanzhou has given representations and warranties which are normal for a transaction of this nature, including representations and warranties as to information to be contained in the Scheme Booklet and compliance with disclosure
obligations. 
  

 9

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