exv10w20w1






Exhibit 10.20.1




 





PURCHASE AND CONTRIBUTION AGREEMENT




by and among




TRINITY RAIL LEASING WAREHOUSE TRUST,




TRINITY INDUSTRIES LEASING COMPANY




and




TRINITY RAIL LEASING VII LLC




Dated as of November 5, 2009




 






 









 








TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	SECTION 1.1    General
	 	 	1	 
	SECTION 1.2     Specific Terms
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II CONVEYANCE OF THE RAILCARS AND LEASES
	 	 	4	 
	SECTION 2.1    Conveyance of the Railcars and Leases
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III CONDITIONS OF CONVEYANCE
	 	 	6	 
	SECTION 3.1     Conditions Precedent to Conveyance
	 	 	6	 
	SECTION 3.2     Conditions Precedent to All Conveyances
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	8	 
	SECTION 4.1     Representations and Warranties of TRLWT
Seller—General
	 	 	8	 
	SECTION 4.2     Representations and Warranties of TILC Seller—General
	 	 	9	 
	SECTION 4.3     Representations and Warranties of Seller—Assets
	 	 	11	 
	SECTION 4.4     Representations and Warranties of the Purchaser
	 	 	13	 
	SECTION 4.5     Indemnification
	 	 	15	 
	SECTION 4.6     Special Indemnification by TILC regarding
Exercise of Setoff by Customers
	 	 	16	 
	 
	 	 	 	 
	ARTICLE V COVENANTS OF SELLER
	 	 	17	 
	SECTION 5.1     Protection of Title of the Purchaser
	 	 	17	 
	SECTION 5.2     Other Liens or Interests
	 	 	18	 
	 
	 	 	 	 
	ARTICLE VI MISCELLANEOUS
	 	 	18	 
	SECTION 6.1     Amendment
	 	 	18	 
	SECTION 6.2     Notices
	 	 	18	 
	SECTION 6.3     Merger and Integration
	 	 	19	 
	SECTION 6.4     Severability of Provisions
	 	 	19	 
	SECTION 6.5      Governing Law
	 	 	19	 
	SECTION 6.6     Counterparts
	 	 	19	 
	SECTION 6.7     Binding Effect; Assignability
	 	 	19	 
	SECTION 6.8     Third Party Beneficiaries
	 	 	20	 
	SECTION 6.9     Term
	 	 	20	 






 









 






	 	 	 	 	 
	 	 	Page	 
	EXHIBIT A            FORM OF BILL OF SALE
	 	Exh. A
	 
	 	 	 	 
	EXHIBIT B            FORM OF ASSIGNMENT AND ASSUMPTION
	 	Exh. B
	 
	 	 	 	 
	EXHIBIT C            DELIVERY SCHEDULE ON THE CLOSING DATE
	 	Exh. C






ii



















 





PURCHASE AND CONTRIBUTION AGREEMENT




          THIS PURCHASE AND CONTRIBUTION AGREEMENT is made as of November 5, 2009 (this
“Agreement”) by and among Trinity Rail Leasing Warehouse Trust, a Delaware statutory trust,
(“TRLWT” or the “TRLWT Seller”), Trinity Industries Leasing Company, a Delaware
corporation (“TILC” or the “TILC Seller”; TRLWT and TILC are sometimes hereinafter
collectively referred to as the “Sellers” or individually as a “Seller”) and
Trinity Rail Leasing VII LLC, a Delaware limited liability company (the “Purchaser”).




W I T N E S S E T H:




          WHEREAS, the Purchaser has agreed to purchase from TRLWT from time to time, and TRLWT has
agreed to Sell (as hereinafter defined) to the Purchaser from time to time, certain of its
Railcars, related Leases and Related Assets (each as hereinafter defined) related thereto on the
terms set forth herein.




          WHEREAS, during the period prior to their sale hereunder, TILC has acted as manager and
servicing agent for TRLWT, pursuant to the TRLWT Management Agreement (as hereinafter defined),
with respect to the Railcars, related Leases and Related Assets that TRLWT may Sell from time to
time hereunder (TILC in such capacity, the “TRLWT Manager”).




          WHEREAS, TILC may also wish from time to time, in its individual capacity, to conduct a
Sale/Contribution (as hereinafter defined) of certain of its Railcars, related Leases and Related
Assets and the Purchaser may wish to purchase from and accept such contribution to the capital of
the Purchaser on the terms set forth herein.




          NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter
contained, and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the Purchaser and each Seller, intending to be legally bound, hereby agree as
follows:




ARTICLE I




DEFINITIONS



          SECTION 1.1 General. The specific terms defined in this Article include the plural as well
as the singular. Words herein importing a gender include the other gender. References herein to
“writing” include printing, typing, lithography, and other means of reproducing words in visible
form. References to agreements and other contractual instruments include all subsequent amendments
thereto or changes therein entered into in accordance with their respective terms. References
herein to Persons include their successors and assigns permitted hereunder or under the Indenture
(as defined herein). The terms “include” or “including” mean “include without limitation” or
“including without limitation”. The words “herein”, “hereof” and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular Article, Section or
other subdivision, and Article, Section, Schedule and Exhibit references, unless otherwise
specified, refer to Articles and Sections of and Schedules and Exhibits to this Agreement.
Capitalized terms used herein, including in the







 









 







Recitals, but not defined herein shall have the respective meanings assigned to such terms in the Indenture (as defined herein).




          SECTION 1.2 Specific Terms. Whenever used in this Agreement, the following words and
phrases, unless the context otherwise requires, shall have the following meanings:




          “Appraised Value” means the appraised value of a Railcar as set forth in the Appraisal
thereof.




          “Assignment and Assumption” means an Assignment and Assumption executed by the
applicable Seller, with countersignature block set forth thereon for execution by the Purchaser,
substantially in the form of Exhibit B attached hereto.




          “Bill of Sale” means a Bill of Sale executed by the applicable Seller substantially in
the form of Exhibit A attached hereto.




          “Contribution” has the meaning set forth in Section 2.1(a).




          “Convey” means to Sell and/or conduct a Sale/Contribution of Railcars, related Leases
and Related Assets hereunder.




          “Conveyance” means, collectively, a Sale and/or Sale/Contribution of Railcars, related
Leases and Related Assets by a Seller to the Purchaser.




          “Delivery Schedule” means a schedule, substantially in the form of the initial
schedule delivered on the Closing Date and attached as Exhibit C hereto, in each case duly
executed and delivered by a Seller to the Purchaser on a Delivery Date, which shall identify the
Railcars to be Conveyed on such Delivery Date and identify each Lease relating to any such Railcar.




          “Excluded Amounts” has the meaning set forth in Section 4.5(a).




          “Indemnified Person” has the meaning set forth in Section 4.5(a).




          “Indenture” means the Indenture between the Issuer and the Indenture Trustee dated as
of the date hereof.




          “Purchase Price” means, with respect to any Railcars, related Leases and Related
Assets conveyed to Purchaser from time to time pursuant hereto, an amount equal to the aggregate
Appraised Value of the Railcars so Conveyed.




          “Purchaser” has the meaning specified in the Preamble.




          “Related Assets” means, with respect to any Railcar or Lease that is Conveyed
hereunder on any Delivery Date, all of the applicable Seller’s right, title and interest in and to
the following (as applicable):







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          (a) with respect to such Railcar, (i) all licenses, manufacturer’s warranties and other
warranties, Supporting Obligations, Payment Intangibles, Chattel Paper, General Intangibles and all
other rights and obligations related to such Railcar, (ii) all Railroad Mileage Credits allocable
to such Railcar and any payments in respect of such credits accruing on or after the applicable
Delivery Date, (iii) all tort claims or any other claims of any kind or nature related to such
Railcar and any payments in respect of such claims, (iv) all Marks attaching to such Railcar
(including as evidenced by any SUBI Certificate issued by the Marks Company) and (v) all other
payments owing by any Person (including any railroads or similar entities) in respect of or
attributable to such Railcar or the use, loss, damage, casualty, condemnation of such Railcar or
the Marks associated therewith, in each case whether arising by contract, operation of law, course
of dealing, industry practice or otherwise; and




          (b) with respect to such Lease, all Supporting Obligations, Payment Intangibles, Chattel
Paper, General Intangibles and all other rights and obligations related to any such Lease,
including, without limitation, (i) all rights, powers, privileges, options and other benefits of
the applicable Seller to receive moneys and other property due and to become due under or pursuant
to such Lease, including, without limitation, all rights, powers, privileges, options and other
benefits to receive and collect rental payments, income, revenues, profits and other amounts,
payments, tenders or security (including any cash collateral) from any other party thereto,
(ii) all rights, powers, privileges, options and other benefits of the applicable Seller to receive
proceeds of any casualty insurance, condemnation award, indemnity, warranty or guaranty with
respect to such Lease, (iii) all claims for damages arising out of or for breach of or default
under such Lease and (iv) the rights, powers, privileges, options and other benefits of the
applicable Seller to perform under such Lease, to compel performance and otherwise exercise all
remedies thereunder and to terminate any such Lease.




          “Sale” means, with respect to any Person, the sale, transfer, assignment or other
conveyance, of the assets or property in question by such Person, and “Sell” means that
such Person sells, transfers, assigns or otherwise conveys the assets or property in question.




          “Sale/Contribution” has the meaning specified in Section 2.1(a).




          “TRLWT Manager” has the meaning specified in the Recitals.




          “TRLWT Management Agreement” means the Second Amendment and Restatement, dated as of
May 29, 2009, of the Operating, Maintenance, Servicing and Remarketing Agreement dated as of June
27, 2002 between TRLWT and TILC, as manager thereunder.





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ARTICLE II




CONVEYANCE OF THE RAILCARS AND LEASES



          SECTION 2.1 Conveyance of the Railcars and Leases.




          (a) Subject to the terms and conditions of this Agreement, on and after the date of this
Agreement,





     (i) TRLWT Seller hereby agrees to Sell to the Purchaser, without recourse (except to
the extent specifically provided herein or in the applicable Bill of Sale and Assignment and
Assumption), all right, title and interest of TRLWT Seller in and to certain Railcars,
related Leases and Related Assets as identified from time to time on a Delivery Schedule
delivered by TRLWT Seller in accordance with this Agreement, and




     (ii) TILC Seller hereby agrees to Sell to the Purchaser, without recourse (except to
the extent specifically provided herein or in the applicable Bill of Sale and Assignment and
Assumption), all right, title and interest of TILC Seller in and to certain Railcars,
related Leases and Related Assets as identified from time to time on a Delivery Schedule
delivered by TILC Seller in accordance with this Agreement, provided, that to the
extent that the portion of the Purchase Price for such sale paid by the Purchaser to TILC
Seller in cash is less than the total dollar amount of the Purchase Price, the balance shall
be deemed to have been contributed (a “Contribution”) by TILC Seller as capital
(through the Purchaser’s sole member, which is 100% directly owned by TILC Seller) to the
Purchaser (such transaction in the aggregate, a “Sale/Contribution”),



          (b) The Purchaser in each case hereby agrees to purchase, acquire, accept and assume
(including by an assumption of the obligations of the “lessor” under such Leases), all right, title
and interest of each such Seller in and to such Railcars, related Leases and Related Assets. Each
Seller hereby acknowledges that each Conveyance by it to the Purchaser hereunder is absolute and
irrevocable, without reservation or retention of any interest whatsoever by such Seller.




          (c) The Sales of Railcars, related Leases and Related Assets by TRLWT Seller to the Purchaser
and the Sales or Sales/Contributions (as the case may be) of Railcars, related Leases and Related
Assets by TILC Seller to the Purchaser pursuant to this Agreement are intended to be absolute
assignments (free and clear of any Encumbrances) of all of the applicable Seller’s right, title and
interest in, to and under such Railcars, related Leases and Related Assets for all purposes and,
except to the extent specifically provided herein or in the applicable Bill of Sale and Assignment
and Assumption, without recourse.




          (d) It is the intention of each Seller and the Purchaser (i) that all Conveyances of Railcars,
related Leases and Related Assets be true sales and/or contributions, as applicable, constituting
absolute assignments and “true sales” for bankruptcy law purposes by the applicable Seller to the
Purchaser, that are absolute and irrevocable and that provide the Purchaser with the full benefits
of ownership of the assets so Conveyed and (ii) that the Railcars, related Leases and Related
Assets that are Conveyed to the Purchaser pursuant to this Agreement shall not be part of




4









 







the applicable Seller’s estate in the event of the filing of a bankruptcy petition by or against such
Seller under any bankruptcy or similar law. Neither any Seller nor the Purchaser intends that (x)
the transactions contemplated hereunder be, or for any purpose be characterized as, loans from the
Purchaser to the applicable Seller or (y) any Conveyance of Railcars, related Leases and/or Related
Assets by any Seller to the Purchaser be deemed a grant of a security interest in the
assets so Conveyed by such Seller to the Purchaser to secure a debt or other obligation of
such Seller (except in the limited circumstance contemplated in subsection (e) immediately below).




          (e) In the event that any Conveyances pursuant to this Agreement are deemed to be a secured
financing (or are otherwise determined not to be absolute assignments of all of the applicable
Seller’s right, title and interest in, to and under the Railcars, related Leases and Related Assets
so Conveyed, or purportedly so Conveyed hereunder), then (i) the applicable Seller shall be deemed
hereunder to have granted to the Purchaser, and such Seller does hereby grant to the Purchaser, a
security interest in all of such Seller’s right, title and interest in, to and under such Railcars,
related Leases and Related Assets so Conveyed or purported to be Conveyed, securing the purported
repayment obligation presumably deemed to exist in respect of such deemed secured financing, and
(ii) this Agreement shall constitute a security agreement under applicable law.




          (f) The Sellers shall on the Closing Date, and either or both the TRLWT Seller and/or the TILC
Seller shall, as the case may be, on any other Delivery Date, deliver to the Purchaser a Delivery
Schedule identifying the Railcars and Leases to be Conveyed by such Seller to the Purchaser on such
date.




          (g) The price paid for Railcars, related Leases and Related Assets which are Conveyed
hereunder shall be the Purchase Price with respect thereto. Such Purchase Price shall be paid





     (i) in the case of TRLWT Seller, by means of the Purchaser’s immediate cash payment in
the full amount of the Purchase Price to TRLWT Seller by wire transfer on the Closing Date
(or other Delivery Date) in respect of which TRLWT Seller has delivered a Delivery Schedule,
and




     (ii) in the case of TILC Seller, by means of the Purchaser’s immediate cash payment of
the portion of the Purchase Price that the Purchaser has available to it for such purpose
(including from net proceeds derived from its issuance of the Equipment Notes on such
Delivery Date, or from Disposition Proceeds held in the Mandatory Replacement Account or the
Optional Reinvestment Account), to TILC Seller by wire transfer on the Closing Date (or
other applicable Delivery Date) in respect of which TILC Seller has delivered a Delivery
Schedule, with the Contributed remainder of such Purchase Price to be reflected by means of
proper accounting entries being entered upon the accounts and records of TILC Seller and
Purchaser,


with such wire transfers in each case to be made to an account designated by the applicable Seller
to the Purchaser on or before the applicable Delivery Date.





5









 








          (h) On and after each Delivery Date and related Purchase Price payment as aforesaid, the
Purchaser shall own the Railcars, related Leases and Related Assets Conveyed to the Purchaser on
such date, and the applicable Seller shall not take any action inconsistent with such ownership and
shall not claim any ownership interest in such assets.




          (i) Until the occurrence of a Manager Termination Event and the replacement of TILC as Manager
pursuant to the terms of the Management Agreement, TILC, as Manager, shall conduct the administration, management and collection of the Railcars, related Leases
and Related Assets Conveyed to Purchaser pursuant hereto and shall take, or cause to be taken, all
such actions as may be necessary or advisable to administer, manage and collect such Conveyed
Railcars, related Leases and Related Assets, from time to time, all in accordance with the terms of
the Management Agreement.




          (j) On each Delivery Date, the applicable Seller shall deliver or cause to be delivered to the
Purchaser (or to an assignee thereof, as directed by the Purchaser) each item required on such date
to be delivered by such Seller and any Chattel Paper representing or evidencing, the Leases being
Conveyed on such Delivery Date.




ARTICLE III




CONDITIONS OF CONVEYANCE



          SECTION 3.1 Conditions Precedent to Conveyance. Each Conveyance hereunder is subject to
the condition precedent that the Purchaser shall have received and the Indenture Trustee shall have
received copies of, all of the following on or before the applicable Delivery Date, in form and
substance satisfactory to the Purchaser and the Requisite Majority:





     (i) a Delivery Schedule executed by the applicable Seller and setting forth the
Railcars and Leases to be Conveyed on the applicable Delivery Date pursuant to this
Agreement;




     (ii) a related Bill of Sale;




     (iii) a related Assignment and Assumption;




     (iv) an Appraisal of the Railcars to be conveyed, with such Appraisal dated no earlier
than 30 days prior to the applicable Delivery Date;




     (v) copies of proper UCC financing statements, STB or Registrar General of Canada
filings, accurately describing the Conveyed Railcars and Leases and naming the applicable
Seller as the “Debtor/Seller” and Purchaser as “Secured Party/Purchaser”, or applicable
filings with the STB or with the Registrar General of Canada, other similar instruments or
documents, all in such manner and in such places as may be required by law or as may be
necessary or, in the opinion of the Purchaser or the Indenture Trustee (acting at the
direction of the Requisite Majority), desirable to perfect the Purchaser’s interest in all
Conveyed Railcars, related Leases and Related Assets;



6









 






     (vi) copies of proper UCC financing statement terminations or partial terminations, STB
or Registrar General of Canada filings, accurately describing the Conveyed Railcars and
Leases, or other similar instruments or documents, in form and substance sufficient for
filing under applicable law of any and all jurisdictions as may be necessary to effect or
evidence a release or termination of any pre-existing Encumbrance evidenced by an existing filing of record against the Conveyed Railcars, related Leases
and Related Assets;




     (vii) in the case of a Delivery Date occurring in connection with the Closing Date, a
confirmation or written advice to similar effect from counsel to the Purchaser and addressed
to the Indenture Trustee, reasonably acceptable to the Indenture Trustee that the conveyance
constitutes a true sale and that the Purchaser would not be consolidated in connection with
a bankruptcy of the applicable Seller; and




     (viii) in the case of a Delivery Date occurring in connection with the Closing Date,
such deliveries, and the satisfaction of such other conditions, as are set forth in the Note
Purchase Agreement or otherwise required for the issuance of the Equipment Notes.



          SECTION 3.2 Conditions Precedent to All Conveyances. The Conveyances to take place on any
Delivery Date hereunder shall be subject to the further conditions precedent that:





     (a) The following statements shall be true:




     (i) the representations and warranties of each applicable Seller contained in
Article IV shall be true and correct on and as of such Delivery Date, both before
and after giving effect to the Conveyance to take place on such Delivery Date and to the
application of proceeds therefrom, as though made on and as of such date; and




     (ii) such Seller shall be in compliance with all of its covenants and other agreements
set forth in this Agreement and the other Operative Agreements to which it is a party.



          (b) Purchaser shall have received a Delivery Schedule, dated the date of the applicable
Delivery Date, executed by the applicable Seller, listing the Railcars and Leases being Conveyed on
such date.




          (c) The applicable Seller shall have taken such other action, including delivery of approvals,
consents, opinions, documents and instruments to the Purchaser, as the Purchaser or the Indenture
Trustee (acting at the direction of the Requisite Majority) may reasonably request.




          (d) The applicable Seller shall have taken all steps necessary under all applicable law in
order to Convey to the Purchaser the Railcars described on the applicable Delivery Schedules, all
Leases related to such Railcars and all Related Assets related to such Railcars and/or Leases, and
upon the Conveyance of such Railcars, related Leases and Related Assets from the applicable Seller
to the Purchaser pursuant to the terms hereof, the Purchaser will have acquired on such date good
and marketable title to and a valid and perfected ownership





7











 




interest in the Conveyed Railcars, related Leases and Related Assets, free and clear of any Encumbrance (other than Permitted
Encumbrances).




ARTICLE IV




REPRESENTATIONS AND WARRANTIES



          SECTION 4.1 Representations and Warranties of TRLWT Seller—General. TRLWT Seller makes
the following representations and warranties for the benefit of the Purchaser, the Indenture
Trustee, each Noteholder and each other Secured Party, on which the Purchaser relies in acquiring
the Railcars, related Leases and Related Assets Conveyed by it hereunder. Such representations are
made as of the Closing Date, as of each other Delivery Date and at such other times specified
below.



          (a) TRLWT is a statutory trust duly organized, validly existing, and in good standing under
the laws of the State of Delaware, is duly licensed or qualified and in good standing in each
jurisdiction in which the failure to so qualify would have a material adverse effect on its ability
to carry on its business as now conducted or to execute, deliver and perform its obligations under
the TRLWT Agreements, has the power and authority to carry on its business as now conducted, and
has the requisite power and authority to execute, deliver and perform its obligations under the
TRLWT Agreements.



          (b) The TRLWT Agreements have been duly authorized by all necessary entity action, executed
and delivered by TRLWT, and (assuming the due authorization, execution and delivery by each other
party thereto) constitute the legal, valid and binding obligations of TRLWT, enforceable against
TRLWT in accordance with their respective terms except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of
creditors generally and by general principles of equity.



          (c) The execution, delivery and performance by TRLWT of each TRLWT Agreement and compliance by
TRLWT with all of the provisions thereof do not and will not contravene (i) any law or regulation,
or any order of any court or governmental authority or agency applicable to or binding on TRLWT or
any of its properties, or (ii) the provisions of, or constitute a default by TRLWT under, its
certificate of trust or trust agreement or (iii) any indenture, mortgage, contract or other
agreement or instrument to which TRLWT is a party or by which TRLWT or any of its properties may be
bound or affected.



          (d) There are no proceedings pending or, to the knowledge of TRLWT, threatened against TRLWT
in any court or before any governmental authority or arbitration board or tribunal.



          (e) TRLWT is not (x) in violation of any term of any charter instrument or operating agreement
or (y) in violation or breach of on in default under any other agreement or instrument to which it
is a party or by which it may be bound except, in the case of clause (y), where such violation
would not reasonably be expected to materially adversely affect TRLWT’s ability to perform its
obligations under the TRLWT Agreements or materially adversely affect its financial condition or
business. TRLWT is in compliance with all laws, ordinances,



8









 




governmental rules and regulations to which it is subject, the failure to comply with which would have a material and adverse effect on
its operations or condition, financial or otherwise, or would
impair the ability of TRLWT to perform its obligations under the TRLWT Agreements, and has
obtained all licenses, permits, franchises and other governmental authorizations material to the
conduct of its business.




          (f) No consent, approval or authorization of, or filing, registration or qualification with,
or the giving of notice to, any trustee or any holder of indebtedness of TRLWT or any governmental
authority on the part of TRLWT is required (x) in connection with the execution and delivery by
TRLWT of the TRLWT Agreements, or (y) to be obtained in order for TRLWT to perform its obligations
thereunder in accordance with the terms thereof, other than in the case of clause (y) those which
are routine in nature and are not normally applied for prior to the time they are required, and
which TRLWT has no reason to believe will not be timely obtained.



          (g) The location of TRLWT (within the meaning of Article 9 of the UCC) is in the State of
Delaware. TRLWT has not been known by any name other than Trinity Rail Leasing Warehouse Trust and
Trinity Rail Leasing Trust II, and is not known by any trade names.



          (h) TRLWT is solvent and will not become insolvent after giving effect to any Conveyance
contemplated by this Agreement; after giving effect to each Conveyance contemplated by this
Agreement, TRLWT will have an adequate amount of capital to conduct its business in the foreseeable
future; and TRLWT does not intend to incur, nor believe that it has incurred, debts beyond its
ability to pay as they mature.



          (i) TRLWT will treat the transactions effected by this Agreement as sales of assets to the
Purchaser in accordance with GAAP. TRLWT’s financial records shall reflect that the Railcars and
Leases Conveyed hereunder have been Conveyed to the Purchaser, are no longer owned by TRLWT and are
not intended to be available to the creditors of TRLWT.



          SECTION 4.2 Representations and Warranties of TILC Seller—General. TILC Seller makes the
following representations and warranties for the benefit of the Purchaser, the Indenture Trustee,
each Noteholder and each other Secured Party, on which the Purchaser relies in acquiring the
Railcars, related Leases and Related Assets Conveyed by it hereunder. Such representations are
made as of the Closing Date, as of each other Delivery Date and at such other times specified
below.



          (a) TILC is a corporation duly organized, validly existing, and in good standing under the
laws of the State of Delaware, is duly licensed or qualified and in good standing in each
jurisdiction in which the failure to so qualify would reasonably be expected to have a material
adverse effect on its ability to carry on its business as now conducted or as contemplated to be
conducted or to execute, deliver and perform its obligations under the TILC Agreements, has the
power and authority to carry on its business as now conducted and as contemplated to be conducted,
and has the requisite power and authority to execute, deliver and perform its obligations under the
TILC Agreements.



9









 





          (b) The TILC Agreements have been duly authorized by all necessary corporate action, executed
and delivered by TILC, and (assuming the due authorization,
execution and delivery by each other party thereto) constitute the legal, valid and binding
obligations of TILC, enforceable against TILC in accordance with their respective terms except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the rights of creditors generally and by general principles of equity.



          (c) The execution, delivery and performance by TILC of each TILC Agreement and compliance by
TILC with all of the provisions thereof do not and will not contravene or, in the case of clause
(iii), constitute (alone or with notice, or lapse of time or both) a default under or result in any
breach of, or result in the creation or imposition of any Encumbrance upon any property of TILC
pursuant to, (i) any law or regulation, or any order, judgment, decree, determination or award of
any court or governmental authority or agency applicable to or binding on TILC or any of its
properties, or (ii) the provisions of its certificate of incorporation or bylaws or (iii) any
indenture, mortgage, contract or other agreement or instrument to which TILC is a party or by which
TILC or any of its properties may be bound or affected except, with respect to clause (iii), where
such contravention, default or breach would not reasonably be expected to materially adversely
affect TILC’s ability to perform its obligations under the TILC Agreements or materially adversely
affect its financial condition or business;



          (d) There are no proceedings pending or, to the knowledge of TILC, threatened against TILC in
any court or before any governmental authority or arbitration board or tribunal that, if adversely
determined, would reasonably be expected to materially adversely affect TILC’s ability to perform
its obligations under the TILC Agreements or materially adversely affect its financial condition or
business.



          (e) TILC is not (x) in violation of any term of any charter instrument or bylaw or (y) in
violation or breach of or in default under any other agreement or instrument to which it is a party
or by which it or any of its property may be bound except in the case of clause (y) where such
violation, breach or default would not reasonably be expected to materially adversely affect TILC’s
ability to perform its obligations under the TILC Agreements or materially adversely affect its
financial condition or business. TILC is in compliance with all laws, ordinances, governmental
rules, regulations, orders, judgments, decrees, determinations and awards to which it is subject,
the failure to comply with which would reasonably be expected to have a material and adverse effect
on its operations or condition, financial or otherwise, or would impair the ability of TILC to
perform its obligations under the TILC Agreements, and has obtained all required licenses, permits,
franchises and other governmental authorizations material to the conduct of its business.



          (f) No consent, approval or authorization of, or filing, registration or qualification with,
or the giving of notice to, any trustee or any holder of indebtedness of TILC or any governmental
authority on the part of TILC is required in the United States in connection with the execution and
delivery by TILC of the TILC Agreements, or is required to be obtained in order for TILC to perform
its obligations thereunder in accordance with the terms thereof, other than (i) as may be required
under existing laws, ordinances, governmental rules and regulations to be obtained, given,
accomplished or renewed at any time after the Closing Date or



10









 




other applicable Delivery Date in
connection with the performance of its obligations under the TILC Agreements and which are routine
in nature and are not normally applied for prior to the
time they are required, and which TILC has no reason to believe will not be timely obtained,
and (ii) as may have been previously obtained in accordance with clause (i) immediately above.




          (g) The location of TILC (within the meaning of Article 9 of the UCC) is in the State of
Delaware. TILC has not been known by any name other than Trinity Industries Leasing Company, and
is not known by any trade names.



          (h) TILC is solvent and will not become insolvent after giving effect to any Conveyance
contemplated by this Agreement, and after giving effect to any Conveyances contemplated by this
Agreement, TILC will have an adequate amount of capital to conduct its business in the foreseeable
future, and TILC does not intend to incur, nor believe that it has incurred, debts beyond its
ability to pay as they mature.



          (i) TILC will treat the transactions effected by this Agreement as sales of assets to, and/or
contributions of assets to the capital of, the Purchaser in accordance with GAAP. TILC’s financial
records shall reflect that the Railcars and Leases Conveyed hereunder have been Conveyed to the
Purchaser, are no longer owned by TILC and are not intended to be available to the creditors of
TILC.



          SECTION 4.3 Representations and Warranties of Seller—Assets. The following
representations and warranties are made (i) with respect to each Delivery Date on which TRLWT is to
Convey assets to the Purchaser, by TILC, in its capacity as TRLWT Manager, with respect to each
representation expressed as a representation of TRLWT as “Seller”, and (ii) with respect to each
Delivery Date on which TILC is to Convey assets to the Purchaser, by TILC for its own account, and
in each case are made for the benefit of the Purchaser, the Indenture Trustee, each Noteholder and
each other Secured Party as of the date of any Delivery Schedule delivered by the applicable Seller
to the Purchaser and solely with respect to the Railcars and Leases that are referred to in such
Delivery Schedule and the Related Assets in respect of such Railcars and Leases.



          (a) To the best knowledge of Seller, no casualty event or other event that may constitute a
Total Loss or makes repair of the applicable Railcar uneconomic or renders such Railcar unfit for
commercial use or constitutes theft or disappearance of the applicable Railcar has occurred with
respect to a Railcar being Conveyed.



          (b) (i) The Seller has, and the Bill of Sale to be delivered on the Delivery Date shall convey
to the Purchaser, all legal and beneficial title to the Railcars (and Related Assets in respect of
such Railcars) that are being Conveyed, free and clear of all Encumbrances (other than Permitted
Encumbrances of the type described in clauses (ii), (iii), (iv), (v) and (viii) of the definition
thereof), and such conveyance constitutes a valid and absolute transfer (each such contribution or
sale, as the case may be, constituting a “true sale” for bankruptcy law purposes) of all right,
title and interest of the Seller in, to an under the Railcars (and Related Assets in respect of
such Railcars) being Conveyed and will not be void or voidable under any applicable law; (ii) the
Seller has, and the Assignment and Assumption to be delivered on the Delivery Date shall assign to
the Purchaser, all legal and beneficial title to the Leases (and Related Assets in



11









 




respect of such Leases) that are being Conveyed, free and clear of all Encumbrances (other than
Permitted Encumbrances of the type described in clauses (ii), (iii), (iv), (v) and (viii) of
the definition thereof), and such assignment constitutes a valid and absolute transfer (each such
contribution or sale, as the case may be, constituting a “true sale” for bankruptcy law purposes)
of all right, title and interest of the Seller in, to an under the Leases (and Related Assets in
respect of such Leases) being Conveyed and will not be void or voidable under any applicable law;
(iii) the Railcars being Conveyed on a Delivery Date are subject to Leases to the extent required
under the Indenture in respect of such Conveyance, and (iv) all Leases relating to such Railcars
are on rental and other terms that are no different, taken as a whole, from those for similar
Railcars in the rest of the TILC Fleet.




          (c) All sales, use or transfer taxes, if any, due and payable upon the Conveyance of the
Railcars, related Leases and Related Assets being Conveyed on the applicable Delivery Date will
have been paid or such transactions will then be exempt from any such taxes and the Seller (or
TRLWT Manager, in the case of TRLWT Seller) will cause any required forms or reports in connection
with such taxes to be filed in accordance with applicable laws and regulations.



          (d) The Railcars being Conveyed are substantially similar, in terms of objectively
identifiable characteristics that are relevant for purposes of the services to be performed by TILC
under the Management Agreement, to the equipment in the TILC Fleet.



          (e) In selecting the Railcars to be sold to the Purchaser, the Seller has not discriminated
against the Purchaser in a negative fashion when such Railcars are compared with the other railcars
in the TILC Fleet.



          (f) The Seller is not in default of its obligations as “lessor” (or other comparable capacity)
under any Lease, and, to the best of the Seller’s knowledge, there are (i) no defaults existing as
of the date of Conveyance by any Lessee under any Lease, except such defaults that are not payment
defaults (except to a de minimus extent (but giving effect to any applicable grace periods)) and
are not material defaults under the applicable Lease, and (ii) no claims or liabilities arising as
a result of the operation or use of any Railcar prior to the date hereof, as to which the Purchaser
would be or become liable, except for ongoing maintenance and other obligations of the “lessor”
provided for under full-service Leases, which obligations are required to be performed by the
Manager pursuant to the Management Agreement.



          (g) None of the Railcars being Conveyed are subject to a purchase option under the terms of
the related Lease except as described in the related Delivery Schedule, and each such purchase
option is a Permitted Purchase Option.



          (h) All written information provided by the Seller or any Affiliate of the Seller to the
Appraiser with respect to the Railcars and Leases being Conveyed is true and correct in all
material respects. All written information provided by the Seller or any Affiliate of the Seller
to Deloitte & Touche LLP with respect to the Leases is true and correct in all material respects
and accurately reflects the terms of the Leases. To the extent the written information referred to
in this clause (h) was provided to the Appraiser and Deloitte & Touche LLP, in each case for their
use in connection with their services rendered in connection with Conveyances contemplated



12









 




hereby, such entities have been provided with the same written information (or relevant
portions thereof).




          (i) None of the Leases contain any renewal or extension options except for such options that
are described in the Delivery Schedule.



          (j) All information provided in the applicable Delivery Schedule, including each schedule
thereto, is true and correct on and as of the Delivery Date, including without limitation, all
information provided therein with respect to each Railcar purported to be covered thereby and all
information provided therein with respect to each Lease relating to any such Railcar. All other
information concerning the Railcars, related Leases and Related Assets covered by the applicable
Delivery Schedule that was provided to the Issuer or the Indenture Trustee prior to the related
Delivery Date was true and correct in all material respects as of the date it was so provided.



          (k) No Default, Event of Default or Manager Termination Event has occurred and is continuing
on the Delivery Date, and no event that, with the giving of notice, the passage of time or both,
would constitute a Manager Termination Event has occurred and is continuing on the Delivery Date.



          SECTION 4.4 Representations and Warranties of the Purchaser. The Purchaser makes the
following representations and warranties for the benefit of each Seller, on which Seller relies in
Conveying Railcars, related Leases and Related Assets to the Purchaser hereunder. Such
representations are made as of the Closing Date and each other applicable Delivery Date.



          (a) Organization and Good Standing. The Purchaser has been duly organized and is
validly existing and in good standing as a limited liability company under the laws of the State of
Delaware, with the power and authority to own its properties and to conduct its business as such
properties are currently owned and such business is currently conducted, and had at all relevant
times, and has, full power, authority and legal right to acquire and own the Railcars and Leases
Conveyed hereunder.



          (b) Due Qualification. The Purchaser is duly qualified (except where the failure to
be so qualified would not have a Material Adverse Effect) to do business as a foreign limited
liability company in good standing, and has obtained all necessary licenses (except to the extent
that such failure to obtain such licenses is inconsequential) and approvals in all jurisdictions in
which the ownership or lease of its property or the conduct of its business requires such
qualification, licenses and/or approvals.



          (c) Power and Authority. The Purchaser has the power, authority and legal right to
execute and deliver this Agreement and to carry out the terms hereof and to acquire the Railcars
and Leases Conveyed hereunder; and the execution, delivery and performance of this Agreement and
all of the documents required pursuant hereto have been duly authorized by the Purchaser by all
necessary action.



          (d) No Consent Required. The Purchaser is not required to obtain the consent of any
other Person, or any consent, license (except to the extent that such failure to obtain such



13









 




licenses is inconsequential), approval or authorization or registration or declaration with, any
governmental authority, bureau or agency in connection with the execution, delivery or performance
of this Agreement and the Transaction Documents to which it is a party, except for such as have
been obtained, effected or made.




          (e) Binding Obligation. This Agreement constitutes a legal, valid and binding
obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms,
subject, as to enforceability, to applicable bankruptcy, insolvency, reorganization,
conservatorship, receivership, liquidation or other similar laws affecting the enforcement of
creditors’ rights generally and general principles of equity.



          (f) No Violation. The execution, delivery and performance by the Purchaser of this
Agreement, the consummation of the transactions contemplated by this Agreement and the Transaction
Documents to which it is a party and the fulfillment of the terms of this Agreement and the
Transaction Documents to which it is a party do not and will not conflict with, result in any
breach of any of the terms and provisions of, or constitute (with or without notice or lapse of
time) a default under, the organizational documents of the Purchaser, or conflict with or breach
any of the terms or provisions of, or constitute (with or without notice or lapse of time) a
default under, any indenture, agreement, mortgage, deed of trust or other instrument to which the
Purchaser is a party or by which the Purchaser is bound or to which any of its properties are
subject, or result in the creation or imposition of any lien upon any of its properties pursuant to
the terms of any such indenture, agreement, mortgage, deed of trust or other instrument (other than
liens created hereunder or under the Indenture), or violate any law or any order, rule or
regulation, applicable to the Purchaser or its properties, of any federal or state regulatory body,
any court, administrative agency, or other governmental instrumentality having jurisdiction over
the Purchaser or any of its properties.



          (g) No Proceedings. There are no proceedings or investigations pending, or, to the
Purchaser’s knowledge, threatened against the Purchaser before any court, regulatory body,
administrative agency, or other tribunal or governmental instrumentality having jurisdiction over
the Purchaser or its properties: (i) asserting the invalidity of this Agreement or any of the
Transaction Documents, (ii) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or any of the Transaction Documents, (iii) seeking any determination
or ruling that could have an adverse effect on the performance by the Purchaser of its obligations
under, or the validity or enforceability of, this Agreement or any of the Transaction Documents,
(iv) that may have an adverse effect on the federal or state income tax attributes of, or seek to
impose any excise, franchise, transfer or similar tax upon, the transfer and acquisition of the
Railcars and Leases Conveyed hereunder or (v) that could have an adverse effect on the Railcars and
Leases Conveyed to the Purchaser hereunder.



          (h) Consideration. The Purchaser has given fair consideration and reasonably
equivalent value in exchange for the Conveyance of the Railcars, related Leases and Related Assets
being Conveyed hereunder.


In the event of any breach of a representation and warranty made by the Purchaser hereunder, each
Seller covenants and agrees that such Seller will not take any action to pursue any remedy that it
may have hereunder, in law, in equity or otherwise, until a year and a day have passed




14









 







since all Outstanding Obligations under all other Operative Agreements have been paid in full. Each Seller
and the Purchaser agree that damages will not be an adequate remedy for a breach of this covenant
and that this covenant may be specifically enforced by the Purchaser or any third party beneficiary
described in Section 6.10.




          SECTION 4.5 Indemnification.



          (a) TILC Seller, or TRLWT Manager on behalf of TRLWT Seller, shall defend, indemnify and hold
harmless the Purchaser, the Manager, the Indenture Trustee, each Noteholder, each of their
respective Affiliates and each of respective directors, officers, employees, successors and
permitted assigns, agents and servants of the foregoing (each an “Indemnified Person”) from
and against any and all costs, expenses, losses, obligations, penalties, liabilities, damages,
actions, or suits or claims of whatsoever kind or nature (whether or not on the basis of
negligence, strict or absolute liability or liability in tort), that may be imposed upon, incurred
by, suffered by or asserted against any Indemnified Person arising out of or resulting from any
breach of Seller’s representations and warranties and covenants contained herein, except (A) those
resulting solely from any gross negligence, bad faith or willful misconduct of the particular
Indemnified Person claiming indemnification hereunder, (B) those in respect of taxes that are
otherwise addressed by the provisions of (and subject to the limitations of) subsection (c) of this
Section 4.5 below, or (C) to the extent that providing such indemnity would constitute recourse for
losses due to the uncollectibility of sale proceeds (or any particular amount of sale proceeds) in
respect of a Railcar due to a diminution in market value of such Railcar, or of Lease or other
third party payments due to the insolvency, bankruptcy or financial inability to pay of the related
Lessee or other third party (the “Excluded Amounts”).



          (b) TILC Seller, or TRLWT Manager on behalf of TRLWT Seller, will defend and indemnify and
hold harmless each Indemnified Person against any and all costs, expenses, losses, obligations,
penalties, liabilities, damages, actions, or suits or claims of whatsoever kind or nature (whether
or not on the basis of negligence, strict or absolute liability or liability in tort), that may be
imposed upon, incurred by, suffered by or asserted against such Indemnified Person, other than
Excluded Amounts, arising out of or resulting from any action taken by Seller, other than in
accordance with this Agreement or the Indenture or other applicable Operative Agreement, in respect
of any portion of the Railcars, related Leases and Related Assets that are Conveyed hereunder.



          (c) TILC Seller, or TRLWT Manager on behalf of TRLWT Seller, agrees to pay, and shall defend,
indemnify and hold harmless each Indemnified Person from and against, any taxes (other than taxes
based upon the income of an Indemnified Person and taxes that would constitute Excluded Amounts)
that may at any time be asserted against any Indemnified Person with respect to the transactions
contemplated in this Agreement, including, without limitation, any sales, gross receipts, general
corporation, tangible or intangible personal property, privilege, or license taxes and costs and
expenses in defending against the same, arising by reason of the
acts to be performed by Seller under this Agreement and imposed against such Person. Without
limiting the foregoing, in the event that the Purchaser, the Manager or the Indenture Trustee
receives actual notice of any transfer taxes arising out of the Conveyance of any Railcar or Lease
from Seller to the Purchaser under this Agreement, on written demand by such party, or upon Seller
otherwise being given notice thereof, TILC Seller, or TRLWT Manager on behalf of



15









 




TRLWT Seller, shall pay, and otherwise indemnify and hold harmless the applicable Indemnified Person, the Manager
and the Indenture Trustee harmless, on an After-Tax Basis, from and against any and all such
transfer taxes (it being understood that none of the Purchaser, the Manager, the Indenture Trustee
or any other Indemnified Person shall have any contractual obligation to pay such transfer taxes).




          (d) TILC Seller, or TILC, as “Manager” under the TRLWT Management Agreement on behalf of TRLWT
Seller, shall defend, indemnify, and hold harmless each Indemnified Person from and against any and
all costs, expenses, losses, obligations, penalties, liabilities, damages, actions, or suits or
claims of whatsoever kind or nature (whether or not on the basis of negligence, strict or absolute
liability or liability in tort), to the extent that any of the foregoing may be imposed upon,
incurred by, suffered by or asserted against such Indemnified Person due to the negligence, willful
misfeasance, or bad faith of Seller in the performance of its duties under this Agreement or by
reason of reckless disregard of Seller’s obligations and duties under this Agreement.



          (e) TILC Seller, or TRLWT Manager on behalf of TRLWT Seller, shall indemnify, defend and hold
harmless each Indemnified Person from and against any costs, expenses, losses, obligations,
penalties, liabilities, damages, actions, or suits or claims of whatsoever kind or nature (whether
or not on the basis of negligence, strict or absolute liability or liability in tort), that may be
imposed upon, incurred by, suffered by or asserted against such Indemnified Person, other than
Excluded Amounts, as a result of the failure of any Railcar or Lease Conveyed hereunder to comply
with all requirements of applicable law as of the Closing Date or other applicable Delivery Date.



          Indemnification under this Section 4.5 shall include reasonable fees and expenses of counsel
and expenses of litigation. The indemnity obligations hereunder shall be in addition to any
obligation that any Seller may otherwise have under applicable law or any other Operative
Agreement.



          SECTION 4.6 Special Indemnification by TILC regarding Exercise of Setoff by Customers.
TILC hereby agrees, for the benefit of the Indenture Trustee, the Noteholders and each other
Secured Party, that it will, within 45 days after the date on which it has knowledge that any
Lessee shall have reduced any payments made by such Lessee under any Lease in the Portfolio as a
result of or in connection with any setoff exercised by such Lessee (regardless of whether such
Lessee actually has any contractual, statutory or other right to exercise such setoff) with respect
to amounts owed or presumed owed to such Lessee pursuant to railcar leases that are not in the
Portfolio, and provided that the applicable Lessee shall not have made payments aggregating the
full amount payable by such Lessee under the applicable Lease prior to the end
of such 30-day period, deposit into the Collections Account an amount, in immediately available
funds, equal to the amount of such reduction.



          Indemnification under this Section 4.6 shall include reasonable fees and expenses of counsel
and expenses of litigation. The indemnity obligations hereunder shall be in addition to any
obligation that TILC may otherwise have under applicable law or any other Operative Agreement.




16












 





ARTICLE V




COVENANTS OF SELLER



          SECTION 5.1 Protection of Title of the Purchaser.




          (a) On or prior to the date hereof, Seller shall have filed or caused to be filed financing
statements, STB or Registrar General of Canada filings (each in form proper for filing in the
applicable jurisdiction) naming the Purchaser as purchaser or secured party, naming the Indenture
Trustee as assignee and describing the Railcars, related Leases and Related Assets Conveyed by it
to the Purchaser as collateral, with the office of the Secretary of State of the State of Delaware
and in such other locations as the Purchaser or the Indenture Trustee shall have required. Without
limiting the foregoing, Seller hereby authorizes the Purchaser and/or any assignee thereof to
prepare and file any such UCC-1 financing statements. From time to time thereafter, Seller shall
authorize and file such financing statements and cause to be authorized and filed such continuation
statements, all in such manner and in such places as may be required by law (or deemed desirable by
the Purchaser or any assignee thereof) to fully perfect, preserve, maintain and protect the
interest of the Purchaser under this Agreement, and the security interest of the Indenture Trustee
under the Indenture, in the Railcars, related Leases and Related Assets that are Conveyed hereunder
and in the proceeds thereof. Seller shall deliver (or cause to be delivered) to the Purchaser and
the Indenture Trustee file-stamped copies of, or filing receipts for, any document filed as
provided above, as following such filing in accordance herewith. In the event that Seller fails to
perform its obligations under this subsection, the Purchaser or the Indenture Trustee may perform
such obligations, at the expense of Seller, and Seller hereby authorizes the Purchaser or the
Indenture Trustee and grants to the Purchaser and the Indenture Trustee an irrevocable power of
attorney to take any and all steps in order to perform such obligations in Seller’s or in its own
name, as applicable, and on behalf of Seller, as are necessary or desirable, in the determination
of the Purchaser or Indenture Trustee or any assignee thereof.




          (b) On or prior to Closing Date and any other applicable Delivery Date hereunder, Seller shall
take all steps necessary under all applicable law in order to transfer and assign to the Purchaser
the Railcars and Leases being Conveyed on such date to the Purchaser so that, upon the Conveyance
of such Railcar or Lease from Seller to the Purchaser pursuant to the terms hereof on the
applicable Delivery Date, the Purchaser will have acquired good and marketable title to and a valid
and perfected ownership interest in such Railcars and Leases, free and clear of any Encumbrance
(other than Permitted Encumbrances). On or prior to the applicable Delivery Date hereunder, Seller
shall take all steps required under applicable law in
order for the Purchaser to grant to the Indenture Trustee a first priority perfected security
interest in the Railcars and Leases being Conveyed to the Purchaser on such Delivery Date and, from
time to time thereafter, Seller shall take all such actions as may be required by applicable law
(or deemed desirable by the Purchaser) to fully preserve, maintain and protect the Purchaser’s
ownership interest in, and the Indenture Trustee’s first priority perfected security interest in
the Railcars and Leases which have been Conveyed to the Purchaser hereunder.




          (c) Seller shall not change its name, identity, jurisdiction of organization or corporate
structure in any manner that would or could make any financing statement or continuation statement
filed by Purchaser in accordance with this Agreement seriously






17









 







misleading within the meaning of §
9-506 of the UCC (or any similar provision of the UCC), unless Seller shall have given the
Purchaser, the Manager and the Indenture Trustee at least 30 days’ prior written notice thereof,
and shall promptly file and hereby authorize the Purchaser or the Indenture Trustee to file
appropriate new financing statements or amendments to all previously filed financing statements and
continuation statements.




          (d) Seller shall give the Purchaser, the Manager and the Indenture Trustee at least 30 days’
prior written notice of any relocation of its jurisdiction of organization if, as a result of such
relocation, the applicable provisions of the UCC would require the filing of any amendment of any
previously filed financing or continuation statement or of any new financing statement. Seller
shall at all times maintain its jurisdiction of organization, each office from which it manages or
purchases Railcars and Leases and its principal executive office within the United States of
America.




          SECTION
5.2 Other Liens or Interests. Except for the Conveyances hereunder,
Seller will not sell, pledge, assign, transfer or otherwise convey to any other Person, or grant,
create, incur, assume or suffer to exist any Encumbrance on the Railcars and Leases Conveyed
hereunder or any interest therein (other than Permitted Encumbrances), and TILC Seller, or TRLWT
Manager on behalf of TRLWT Seller, shall defend the right, title, and interest of the Purchaser and
the Indenture Trustee in and to such Railcars and Leases against all Encumbrances or claims of
Encumbrances of third parties claiming through or under Seller. To the extent that any Railcar or
Lease shall at any time secure any debt of the related Lessee to Seller or any of its affiliates,
Seller agrees that any security interest in its favor arising from such a provision shall be
subordinate to the interest of the Purchaser (and its further assignees) in such Railcars and
Leases.




ARTICLE VI




MISCELLANEOUS



          SECTION 6.1 Amendment. This Agreement may be amended by the Sellers and the Purchaser only
with the prior written consent of the Indenture Trustee (acting at the direction of the Requisite
Majority).




          SECTION 6.2 Notices. All demands, notices and communications to Seller or the Purchaser
hereunder shall be in writing, personally delivered, or sent by telecopier (subsequently confirmed
in writing), reputable overnight courier or mailed by certified mail, return receipt requested, and
shall be deemed to have been given upon receipt (a) in the case of TRLWT Seller at the following
address: c/o Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890-0001, Attention: Corporate Trust Administration Re: Trinity Rail Leasing VII,
Facsimile No.: (302) 636-4140, with a copy to Trinity Industries Leasing Company, 2525 Stemmons
Freeway, Dallas, Texas 75207, Attention: Vice President, Leasing Operations, Facsimile No.: (214)
589-8217or such other address as shall be designated by TRLWT Seller in a written notice delivered
to the Purchaser, (b) in the case of TILC Seller at the following address: Trinity Industries
Leasing Company, 2525 Stemmons






18









 







Freeway, Dallas, Texas 75207, Attention: Vice President, Leasing
Operations, Facsimile No.: (214) 589-8217, or such other address as shall be designated by TILC
Seller in a written notice delivered to the Purchaser, and (c) in the case of the Purchaser at the
following address: Trinity Rail Leasing VII LLC., 2525 Stemmons Freeway, Dallas, Texas 75207,
Attention: Vice President, Leasing Operations, Facsimile No.: (214) 589-8217, with a copy to Kaye
Scholer LLC at the following address: Three First National Plaza, 70 West Madison Street, Suite
4100, Chicago, Illinois 60602, and with a copy to the Indenture Trustee at the notice address
provided for same in the Indenture, or such other address as shall be designated by a party in a
written notice delivered to the other party.




          SECTION 6.3 Merger and Integration. Except as specifically stated otherwise herein, this
Agreement and the Transaction Documents set forth the entire understanding of the parties relating
to the subject matter hereof, and all prior understandings, written or oral, are superseded by this
Agreement and the Transaction Documents. This Agreement may not be modified, amended, waived or
supplemented except as provided herein.




          SECTION 6.4 Severability of Provisions. If any one or more of the covenants, provisions or
terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants,
provisions or terms shall be deemed severable from the remaining covenants, provisions or terms of
this Agreement and shall in no way affect the validity or enforceability of the other provisions of
this Agreement.




          SECTION 6.5 Governing Law. THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO ANY CONFLICTS OF LAW PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF
THE LAWS OF ANY OTHER JURISDICTION.




          SECTION 6.6 Counterparts. For the purpose of facilitating the execution of this Agreement and for other purposes, this
Agreement may be executed simultaneously in any number of counterparts, each of which counterparts
shall be deemed to be an original, and all of which counterparts shall constitute but one and the
same instrument. Delivery of an executed counterpart of a signature page to this Agreement by
facsimile shall be effective as delivery of a manually executed counterpart of this Agreement.




          SECTION 6.7 Binding Effect; Assignability.




          (a) This Agreement shall be binding upon and inure to the benefit of Seller, the Purchaser and
their respective successors and assigns; provided, however, that Seller may not
assign its rights or obligations hereunder or any interest herein without the prior written consent
of the Purchaser and the Indenture Trustee (acting at the direction of the Requisite Majority).
The Purchaser may assign all of its rights hereunder to the Indenture Trustee, and such assignee
shall have all rights of the Purchaser under this Agreement (as if such assignee were the Purchaser
hereunder).






19









 








          (b) This Agreement shall create and constitute the continuing obligation of the parties hereto
in accordance with its terms, and shall remain in full force and effect until such time when all
Outstanding Obligations are paid in full; provided, however, that rights and
remedies with respect to any breach of any representation and warranty made by Seller pursuant to
Article IV hereof shall be continuing and shall survive any termination of this Agreement.




          SECTION 6.8 Third Party Beneficiaries. Each of the parties hereto hereby acknowledges that
the Purchaser intends to assign all of its rights under this Agreement to the Indenture Trustee for
the benefit of the Secured Parties under the Indenture, and Seller hereby consents to such
assignment and agrees that upon such assignment, the Indenture Trustee (for the benefit of the
Secured Parties) shall be a third party beneficiary of this Agreement and may exercise the rights
of the Purchaser hereunder and shall be entitled to all of the rights and benefits of the Purchaser
hereunder to the same extent as if it were party hereto.




          In addition, whether or not otherwise expressly stated herein, all representations,
warranties, covenants and agreements of the Issuer, TRLWT and TILC (whether as a Seller or as TRLWT
Manager) in this Agreement or in any document delivered by any of them in connection with this
Agreement (including without limitation, in any Delivery Schedule), shall be for the express
benefit of the Indenture Trustee, each Noteholder and each other Secured Party as express third
party beneficiaries, and shall be enforceable by the Indenture Trustee (acting at the direction of
the Requisite Majority) as if such Person were a party hereto. Each of the Purchaser, TRLWT and
TILC hereby acknowledges and agrees that such representations, warranties, covenants and agreements
are relied upon by each Noteholder in purchasing the Equipment Notes issued under the Indenture.




          SECTION 6.9 Term. This Agreement shall commence as of the date of execution and delivery hereof and shall continue
in full force and effect until the payment in full of all Outstanding Obligations.




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          IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their
respective officers as of the day and year first above written.




	 	 	 	 	 
	 	TRINITY RAIL LEASING WAREHOUSE TRUST 	 
	 	
 	 
	 	By:  	/s/ James E. Perry
 	 
	 	 	Name:  	James E. Perry 	 
	 	 	Title:  	Vice President, Treasurer and

Assistant Secretary 	 
	 
	 	TRINITY INDUSTRIES LEASING COMPANY
 	 
	 	
 	 
	 	By:  	/s/ James E. Perry
 	 
	 	 	Name:  	James E. Perry 	 
	 	 	Title:  	Vice President, Treasurer and

Assistant Secretary 	 
	 



	 	 	 	 	 
	 

	 	TRINITY RAIL LEASING VII LLC,
	 	 
	 

	 	
	 	 
	 

	 	By: TRINITY INDUSTRIES LEASING
COMPANY, as sole member and
manager
	 	 






	 	 	 	 	 
	 	 	 
	 	By:  	                /s/ James E. Perry
 	 
	 	 	Name:  	James E. Perry 	 
	 	 	Title:  	Vice President, Treasurer and

Assistant Secretary 	 
	 




Exh. C