Document:

EXHIBIT
10.63

 

Ceridian Corporation

Board of Director Compensation

 

	
  Annual
  Retainer

  	
   

  	
  $

  	
  52,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Committee
  Chair Retainer (Audit)

  	
   

  	
  $

  	
  15,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Committee
  Chair Retainer (Other)

  	
   

  	
  $

  	
  5,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Annual Stock
  Option Grant

  	
   

  	
  4,000 shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  New Director
  Restricted Stock Grant

  	
   

  	
  Formula

  	
   

  

 

Annual Retainer and Committee Chair Retainer –
The non-employee director may elect to receive the annual retainer and any
committee chair retainer in cash, deferred cash, restricted stock, or deferred
stock.  However, at least 50% of the
annual retainer must be in the form of restricted stock, deferred stock, or a
combination of the two.  Absent an
election, the default election is 50% cash and 50% restricted stock.  The cash portion of the retainer is paid quarterly.  Deferred cash is held in the Ceridian
Deferred Compensation Plan.  Restricted
stock is granted and/or credits to a deferred stock account are made on the
first trading day of the year by dividing the cash equivalent value by the
average closing price of a share of common stock for the last ten trading days
of the immediately preceding calendar year, rounding to the nearest whole
share.  A director is restricted from
selling or otherwise disposing of the stock until the director leaves the
board.

 

Annual Stock Option Grant –
Upon re-election to the Board at the annual shareholder’s meeting, each
non-employee director is granted 4,000 shares of common stock.  Options become exercisable six months
following grant and expire after ten years.

 

New Director Restricted Stock Grant –
Shares are granted at the time directors are first elected or appointed to the
Board.  The number of shares is
determined by dividing the amount equal to two and one-half times the dollar
value of the then-current annual retainer by the average closing price of
common stock for the ten trading days prior to the effective date of the
director’s election or appointment to the Board, rounded to the nearest 100
shares.  Twenty percent of the restricted
shares vest each year.Exhibit 10.1

 

 

SETTLEMENT
AGREEMENT

 

entered into as of

 

April 20, 2005,

 

by and among

 

THE GREENBRIER COMPANIES, INC.,

a Delaware corporation,

 

WILLIAM A. FURMAN,

 

GEORGE L. CHELIUS,

as Executor of the Will and Estate of Alan
James and as Trustee,

 

and

 

ERIC EPPERSON,

as
Executor of the Will and Estate of Alan James and as Trustee

 

 

SETTLEMENT AGREEMENT

 

This Settlement Agreement (the “Agreement”) is entered
into as of April 20, 2005, by and among George L. Chelius and Eric
Epperson, not in their individual capacities but solely in their capacities as
Executors (each a “Representative” and together the “Representatives”) of the
will and estate of Alan James pursuant to Letters Testamentary (Case Number
050290219), dated February 17, 2005, issued by the Circuit Court of the
State of Oregon for the County of Multnomah (the “Estate”) and, to the extent
provided in Section 3.12 of this Agreement, as Trustees of the Trust
referred to in Section 3.12, William A. Furman (“Furman”) and The
Greenbrier Companies, Inc., a Delaware corporation (“Greenbrier” or the “Company”),
(the Representatives, Furman and the Company sometimes referred to collectively
as the “Parties” or individually as a “Party”).

 

WHEREAS, Alan James (“James”), Furman and Greenbrier
entered into a Stockholders Agreement, dated as of July 1, 1994, as
amended by Amendment No. 1 dated December 23, 1994 (the “Stockholders’
Agreement”), Section 5.02 of which provided that Furman and James would
have a right of first refusal (the “Old ROFR”) with respect to transfers of
shares of Common Stock par value $.001 per share of Greenbrier (“Shares”) owned
by Furman and James, respectively;

 

WHEREAS, James died on January 28, 2005 and at
the time of his death he owned 3,915,000 Shares (excluding 3,000 shares subject
to the James Furman Supplemental 1994 Stock Option Plan) which are currently
vested in the beneficiaries of the Estate, subject to administration of the
Estate by the Representatives (the “Estate Shares”);

 

WHEREAS, James on or about July 26, 2004 filed a
complaint in the Court of Chancery of the State of Delaware in and for New
Castle County (the “Court”), entitled Alan James v. William A. Furman, Benjamin
R. Whiteley, C. Bruce Ward, Victor G. Atiyeh, A. Daniel O’Neal, Jr., Duane
C. McDougall and The Greenbrier Companies, Inc., C.A. No. 597-N,
related to, among other matters, the Stockholders’ Agreement and Greenbrier’s
adoption of a stockholder rights plan (the “Delaware Litigation”).

 

WHEREAS, James engaged FTI Consulting Inc. (“FTI”) to
conduct certain investigations, studies and inquiries pertaining to Greenbrier
and its operations (the “Investigation”);

 

WHEREAS, FTI has completed its Investigation and
delivered a complete report of its Investigation to the Representatives, and
the Representatives have delivered a true, correct and complete copy of such
report to Greenbrier;

 

WHEREAS, the Representatives desire to sell some or
all the Estate Shares;

 

WHEREAS, Furman desires to sell some of the Shares
held by him (the “Furman Shares”);

 

 

WHEREAS, Greenbrier desires to acquire some or all of
the Estate Shares and some of the Furman Shares, subject to completion of a
public offering of Shares, and subject to the terms and conditions of this
Agreement including the Exhibits and Schedules hereto;

 

WHEREAS, Greenbrier, Furman and the Representatives
desire, upon the terms and conditions set forth herein, to waive, amend and
terminate certain provisions of the Old ROFR to permit the sale of Shares to
the Company and to adopt terms and conditions providing for a revised right of
first refusal (the “New ROFR”);

 

WHEREAS, Greenbrier, its directors, including Furman,
and the Representatives desire to dismiss the Delaware Litigation with
prejudice and the Parties desire to enter into mutual general releases with respect
to certain other claims, whether known or unknown, among them;

 

WHEREAS, the Representatives, Furman, the Company and
Bear Stearns & Co. Inc. (“Bear Stearns”) have entered into a letter
agreement, dated as of the date hereof (the “Bear Agreement”), pursuant to
which among other matters, (i) Bear Stearns has agreed not to seek to
collect any additional fees from Furman or the Representatives or beneficiaries
of the Estate under its engagement letter, dated October 14, 2002, with
respect to the purchase and sale of Estate Shares and Furman Shares by the
Company pursuant to this Agreement, and (ii) the Representatives have
agreed to acknowledge that they are bound, as successor to James, by such
engagement letter,

 

WHEREAS Greenbrier shall provide Relational Advisors
LLC (“Relational”) with certain rights to monitor the Offering (as defined
below), and Greenbrier shall pay Relational the fee specified in the Stock
Purchase Agreement (as defined below) as a reimbursement to the Representatives
for a portion of the fee the Representatives are obligated to pay to Relational
and Greenbrier shall reduce the amount the amount of underwriting discount paid
to the Underwriters (as defined below) by an equal amount; and

 

WHEREAS, the Parties desire to enter into the other
agreements described in this Agreement and in the Exhibits hereto;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties adopt
the foregoing recitals and agree as follows:

 

ARTICLE I.  – TERMS

 

1.1           Dismissal of
Delaware Litigation.  Contemporaneously
with the execution of this Agreement, the Parties shall cause their attorneys
to execute the stipulation approving the dismissal with prejudice of the
Delaware Litigation, in the form attached hereto as Exhibit A (the “Stipulated
Order”).  The Stipulated Order together
with such correspondence as shall be agreed by counsel to the parties in the
Delaware Litigation shall be filed with the Court as soon as possible, but in
no event later than April 21, 2005.

 

1.2           Stock
Purchase Agreement.  Contemporaneously
with the execution of this Agreement, Greenbrier, Furman, and the
Representatives shall execute the Stock Purchase

 

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Agreement in the form attached hereto as Exhibit B (the “Stock
Purchase Agreement”).  The Stock Purchase
Agreement provides for the purchase by the Company of Estate Shares and Furman
Shares, subject to the terms and conditions described therein including the
completion of a public offering of Company Shares.

 

1.3           Offering.  Contemporaneously with the execution of this
Agreement, Greenbrier shall file a prospectus supplement (the “Supplement”)
with the Securities and Exchange Commission (the “Commission”), to its existing
shelf registration statement on Form S-3, Registration Number 333-121181,
for a primary public offering of 
4,500,000 of the Company’s Shares plus the shares issuable upon exercise
of the underwriters’ overallotment option (the “Offering”).  The Supplement shall be substantially in the
form of the draft dated April 19, 2005 delivered to the
Representatives.  The Supplement may be
amended to reflect such changes as the Company and the Underwriters deem
reasonably necessary or appropriate including, without limitation, to reflect
an upsizing or downsizing of the Offering.

 

1.3.1        Underwriting
Agreement.  The Offering shall be
made pursuant to an Underwriting Agreement by and among the underwriters named
therein (the “Underwriters”) and Greenbrier, substantially similar to the draft
dated April 15, 2005 delivered to the Representatives (the “Underwriting
Agreement”).

 

1.3.2        Monitoring of
Offering.  As provided in the Stock
Purchase Agreement, Greenbrier shall permit Relational, as financial advisor
for the Representatives, to observe and
receive periodic information about the Offering, including (i) causing
Bear Stearns to provide Relational with daily updates on the progress of the
Offering, including the status of the book-building process, (ii) providing
Relational with an opportunity to review the road show presentation, and (iii) permitting
Relational to listen in on the pricing call. 
In no event shall Relational have any power or authority to alter or
amend any terms of the Offering or to delay, accelerate, terminate or suspend
the Offering.

 

1.3.3        Cooperation.  The Representatives and Furman shall
cooperate with Greenbrier and the Underwriters in connection with the Offering
to the extent reasonably requested by Greenbrier, provided that the Representatives
shall not be required to take action that will cause them to incur any
unreimbursed out-of-pocket expenses and shall not be required to enter into any
agreement with Greenbrier, the Underwriters or any other party other than the
agreement necessary to effect the 90-day lockup described in Section 1.3.4
below.

 

1.3.4        Offering Period;
No Solicitation.  Greenbrier shall
have 60 days from the date the Supplement is first filed with the Commission to
complete the Offering (plus any extensions thereof which may be agreed by the
Parties, the “Offering Period”).   
During the Offering Period the Representatives shall not sell or
otherwise transfer any interest in Shares, directly or indirectly, or offer or
solicit the offer to purchase Shares (other than, in each case, in connection
with the Loan described in Section 1.8 below) and shall discontinue any
negotiations with respect to the sale of Shares (except in connection with the
Loan) as more particularly described in Section 6.2 of the Stock Purchase
Agreement.  Contemporaneously with the
execution of this Agreement, the Representatives and Furman shall each enter
into an agreement with the Underwriters in the form attached hereto as Exhibit C
(the “Lock-up Agreement”).  The Lock-up
Agreement shall not prohibit the pledge or transfer of Pledged Shares in
connection with the Loan.

 

3

 

Following the earlier to occur of (i) the end of the Offering
Period, (ii) the “Closing” under the Stock Purchase Agreement, or (iii) the
termination of the Stock Purchase Agreement, and subject to the Lock-up
Agreement, the Representatives may sell or otherwise transfer any remaining
Estate Shares provided it complies with Section 1.5 or Section 1.6 of
this Agreement, whichever is applicable.

 

1.3.5        Rejection of
Offering Price.  Either the
Representatives, Furman, or both, may reject the price offered by the
Underwriters to purchase Shares from the Company (the “Offering Price”) as
inadequate, which Offering Price affects the price the Company is obligated to
pay to the Representatives and Furman for its purchase of Estate Shares and
Furman Shares pursuant to the Stock Purchase Agreement.  Such rejection of the Offering Price must be
made on the pricing call with the Underwriters within one hour after such
Offering Price is proposed by the Underwriters to the Company, Furman and the
Representatives.  If the Representatives
or Furman reject the Offering Price it or he shall not be obligated to sell,
and the Company shall not be obligated to purchase, any Estate Shares or Furman
Shares, as applicable, pursuant to the Stock Purchase Agreement and the sale or
other transfer of Estate Shares shall be subject to the restrictions and
covenants contained in Section 1.5 or Section 1.6, whichever is
applicable.  The consequences of the
rejection of the Offering Price by the Representatives or Furman and the
effects on the Company’s obligations to purchase Estate Shares and Furman
Shares are described in more detail in the Stock Purchase Agreement.  Notwithstanding any rejection of the Offering
Price by the Representatives or Furman, the other covenants and agreements
contained in this Settlement Agreement, including Exhibits and Schedules, other
than the purchase and sale of Estate Shares and Furman Shares, as applicable,
pursuant to the Stock Purchase Agreement, shall remain in full force and
effect.

 

1.4           Termination
of Stockholders’ Agreement and Old ROFR.  The Stockholders’ Agreement and the Old ROFR
shall terminate and shall be of no force and effect upon the earliest of (i) the
end of the Offering Period, (ii) the first Closing under the Stock
Purchase Agreement, or (iii) the termination of the Stock Purchase
Agreement.

 

1.4.1        Waiver and
Consent under Old ROFR.  Each of
Furman, the Representatives and the Company waives any and all rights it may
have with respect to restrictions on transfer contained in the Stockholders’
Agreement and under the Old ROFR with respect to, and each Party consents to,
the sale of Estate Shares and Furman Shares to the Company pursuant to the
Stock Purchase Agreement.

 

1.4.2        No Notice Under
Old ROFR.  Neither Furman nor the
Representatives shall deliver an “Offer Notice” as described in Section 5.02
of the Stockholders’ Agreement.

 

1.4.3        New ROFR.  The New ROFR shall only be effective, and
shall always be effective unless terminated as provided in this Section 1.4.3,
upon termination of the Old ROFR pursuant to Section 1.4 above.  Under the New ROFR:

 

(a)           If the
Representatives desire to transfer any Shares or any interest therein, other
than (i) to a Trust or a beneficiary of the Estate, or (ii) subject
to the limitations contained in Section 1.5 or 1.6, in the open market in “brokers’
transactions” as defined in Rule

 

4

 

144(g) under the Securities Act
of 1933 (the “Securities Act”), the Representatives shall give written notice
(the “New ROFR Notice”) to the Company and Furman specifying that the New ROFR
Notice is being given pursuant to Section 1.4.3 of this Agreement, and
further specifying (I) the number of Shares the Representatives desire to
transfer (the “Offered Shares”), (II) except as described in Section 1.4.3(d) below,
the identity of the person to whom the transfer is proposed to be made (the “Proposed
Transferee”), (III) except as described in Section 1.4.3(d) and 1.4.3(e) below,
the purchase price offered by the Proposed Transferee, and (IV) the other
material terms and conditions of the offer including payment terms together
with copies of any proposed agreements or other documents related to the offer.

 

(b)           Except as
described in Section 1.4.3(d) below, for the period of seven (7) days
after Furman has received the New ROFR Notice, he shall have the exclusive
option to purchase (except as otherwise provided in Section 1.4.3(e) below)
all, but not less than all, of the Offered Shares on the same terms and
conditions, including payment terms (except to the extent otherwise provided in
Section 1.4.3(c) below) (collectively, the “Offered Terms”) as
described in the New ROFR Notice.  Furman
may assign all or, except with respect to a Financing Transaction (as defined
in Section 1.4.3(e) below), part of his right to purchase Offered
Shares under this Section 1.4.3(b) to the Company, provided that in
the case of any such partial assignment, the Company and Furman, collectively,
shall upon exercise of the option, be permitted to purchase all, but not less
than all, of the Offered Shares on the Offered Terms.

 

(c)           Subject to
Section 1.4.3(e) below, if Furman or the Company elects to exercise
the option granted above to purchase the Offered Shares on the Offered Terms,
then Furman or the Company shall so notify the Representatives in writing and
shall close the purchase and sale of Offered Shares on the later of (i) the
seventh (7th) day after receipt of the New ROFR Notice, or (ii) upon
the expiration of a longer period of time, if any, provided the Proposed
Transferee as described in the Offered Terms. 
Payment for purchase of the Offered Shares, must be made in cash unless
the Offered Terms provide for another form of payment and the credit worthiness
of Furman or the Company, as the case may be, is comparable, in the reasonable
judgment of the Representatives to that of the Proposed Transferee, in which
case payment, at the option of Furman or the Company, as the case may be, may
be made in accordance with the Offered Terms or in cash.  In the event Furman or the Company, or both,
elect to exercise the option to purchase the Offered Shares on the Offered
Terms or, with respect to a Financing Transaction, elect to match the material
terms and conditions of the Financing Transaction as provided in Section 1.4.3(e),
but fails, or fail, where such failure constitutes a breach of his or its
obligations hereunder, to close the purchase and sale of Offered Shares, or the
matching of the material terms and conditions of the Financing Transaction, as
the case may be, on or prior to the seventh (7th) day after receipt of the New
ROFR Notice or such later date as provided in the Offered Terms, then (i) Furman
or the Company or both, as the case may be, shall be liable to the
Representatives for breach of their respective covenants to close the purchase
and sale or the matching of material terms and conditions on or prior to that
day, and (ii) the New ROFR shall terminate in full at 12:01 a.m.,
West Coast time, on the eighth (8th) day after receipt of the ROFR Notice, or
the day after such later date as provided in the Offered Terms, and shall be of
no further force and effect.

 

(d)           Notwithstanding
Section 1.4.3(a) and 1.4.3(c) above if the Representatives
propose to transfer Estate Shares in a block trade or sale through a broker,
placement agent, investment bank or other transaction intermediary (a “Block
Sale”), then (i) the

 

5

 

New ROFR Notice need not specify the
name of the Proposed Transferee, if such name is not known, (ii) the
purchase price per Offered Share as specified in the New ROFR Notice may be a
formula price based on the market price of Shares at the time of sale, (iii) Furman
or the Company or both, as applicable, shall have two business days from the
date of receipt of the New ROFR Notice to exercise the option to purchase the
Offered Shares on the Offered Terms, and (iv) if Furman or the Company or
both so exercise the option to purchase the Offered Shares, Furman or the
Company or both, as the case may be, shall close the purchase of the Offered
Shares on the Offered Terms not later than the seventh (7th) day
following receipt of the New ROFR Notice. 
In the event Furman or the Company, or both, elect to exercise the
foregoing option to purchase the Offered Shares on the Offered Terms but fails,
or fail, where such failure constitutes a breach of his or its obligations hereunder,
to close the purchase and sale of Offered Shares on the Offered Terms on or
prior to the seventh (7th) day after receipt of the New ROFR Notice,
then (i) Furman or the Company or both, as the case may be, shall be
liable to the Representatives for breach of their respective covenants to close
the purchase and sale on or prior to that day, and (ii) the New ROFR shall
terminate in full at 12:01 a.m., West Coast time, on the eighth (8th)
day after receipt of the ROFR Notice and shall be of no further force and
effect.

 

(e)           Notwithstanding
Section 1.4.3(a) if the Representatives propose to enter into (x) a
sale, transfer of interest in or lending of Shares in connection with a hedging
transaction with a nationally recognized brokerage firm, investment bank,
insurance company, commercial bank or other lending institution, or (y) a
pledge of Estate Shares to an investment bank, insurance company, commercial
bank or other lending institution to secure a loan or other extension of credit
((x) and (y) collectively, a “Financing Transaction”), then (i) the
Offered Terms in the New ROFR Notice must contain the name of such entity
facilitating the Financing Transaction, the number of Shares subject to the
Financing Transaction, the other material terms and conditions of such
Financing Transaction together with copies of any proposed agreements or other
documents related to such Financing Transaction, (ii) Furman or the
Company, as applicable, may exercise the New ROFR as described in Section 1.4.3(b) above
by matching the material terms and conditions of such Financing Transaction,
and (iii) if Furman or the Company, as applicable, do not elect to
exercise the New ROFR with respect to such Financing Transaction, then any
subsequent foreclosure or closing out of a hedge position related to such
Financing Transaction shall not be subject to the New ROFR.

 

(f)            If Furman
or the Company, as applicable, do not exercise the option granted above to
purchase all of the Offered Shares or to match the material terms and conditions
of a Financing Transaction within the respective time periods described in Section 1.4.3(b),
(c) or (d), then the Representatives shall thereafter (i) with
respect to Block Sales be free, for a period of 21 days following expiration of
the two business day notice period to close transfer of Offered Shares pursuant
to such Block Sale in accordance with Offered Terms, and (ii) with respect
to all other sales or transfers of Estate Shares including Financing
Transactions subject to the New ROFR, the Representatives shall be free, for a
period of 30 days following expiration of the seven (7) day notice period,
to close the sale or other transfer of such Estate Shares pursuant to the
Offered Terms.

 

(g)           Any
transfer, or purported transfer, of Estate Shares including, without
limitation, any attachment, judgment, creditor execution, foreclosure of
security interest, bankruptcy, sale or property settlement or award, which is
not in accordance with this Section 1.4.3

 

6

 

shall be null and void and shall have
no force or effect and need not be recognized or acknowledged by the Company or
any of its stockholders.

 

(h)           Notwithstanding
the foregoing or anything else contained in this Settlement Agreement and the
Exhibits or Schedules hereto, or elsewhere, Greenbrier shall have no obligation
to waive or otherwise modify its rights pursuant to that Stockholder Rights
Agreement, dated as of July 13, 2004, as the same may be amended from time
to time.

 

(i)            the
Parties shall cause certificates representing shares held by the
Representatives to bear a legend prominently referring to the New ROFR.

 

1.5           Sale of
Estate Shares Not Purchased by the Company.  Except as described in Section 1.6
below, the sale or transfer of Estate Shares not purchased by the Company
pursuant to the Stock Purchase Agreement shall be governed by this Section 1.5.

 

1.5.1        Registration
Rights.  Subject to Section 1.6
and Section 3.12, so long as the Representatives hold subject to
administration in the Estate at least 500,000 Shares and the Company has
advised the Representatives that it believes the Representatives are “affiliates”
as defined in Securities Act Rule 144(a)(1), then the Representatives
shall have the registration rights (the “Registration Rights”) described in the
Registration Rights Agreement attached as Exhibit D, which, as more
particularly described therein provides that upon the request of the
Representatives, Greenbrier shall file with the Commission a Form S-3
shelf registration statement (the “Reseller Shelf”) covering the sale by the
Representatives of all of the Shares held by them for administration as part of
the Estate and for the benefit of the beneficiaries of the Estate.

 

1.5.2        Limitation of
Sales under the Reseller Shelf.  Once
the Reseller Shelf is declared effective by the Commission, the Representatives
may sell or transfer Estate Shares under the Reseller Shelf as follows: (i) the
sale of up to an amount of Shares which, when combined with all other Shares
sold by the Representatives (excluding Estate Shares sold or transferred in
Block Sales, “Privately Negotiated Transaction” (as defined below) and
Financing Transactions) during the preceding 90 days does not exceed  200% of 
the greater of (x) 1% of the total outstanding Shares as described in
Greenbrier’s most recent filing with the Commission on Form 10-Q or,
if more recent, Form 10-K or, if more recent, Form 8-K,
or (y) the average weekly trading volume of Shares on the New York Stock
Exchange (“NYSE”) for the four (4) calendar weeks ending with the calendar
week before the sale, and provided such sales of Shares by the Representatives
are made in the open market in “brokers transactions” as defined in Securities
Act Rule 144(g), plus (ii) the sale of an unlimited amount of Shares
in Block Sales, provided (x) the Representatives comply with the New ROFR
described in Section 1.4, and (y) following each Block Sale, the
limitation referred to in (i) above shall be 100% instead of 200% for the
90 day period following such Block Sale, plus (iii) the sale or other
transfer of an unlimited amount of Shares in Privately Negotiated Transactions,
provided the Representatives comply with the New ROFR described in Section 1.4,
and plus (iv) the transfer of an unlimited amount of Estate Shares, or an
interest therein, pursuant to Financing Transactions, provided the
Representatives comply with the New ROFR and no financial institution, or group
of financial institutions that has publicly disclosed that it is acting
together and thus constitutes a group within the meaning of Rule 13d-5(b) of
the Securities Exchange Act of 1934, could acquire more than 5% of the
outstanding shares pursuant to such Financing Transaction, or any related
series of Financing Transactions.  The
term “Privately

 

7

 

Negotiated Transaction” means the sale or other transfer of Estate
Shares to a third party in a privately negotiated transaction not effected or
reported on the NYSE, but excluding any sales or other transfers pursuant to a
Financing Transaction.

 

1.5.3        Removal of
Restrictive Legends.  Pursuant to
this Section 1.5, the Company, at the request of the Representatives,
shall remove the restrictive legends from the certificates representing Estate
Shares in case of any of the following:  (i) when
the Reseller Shelf is declared effective by the Commission with respect to
shares sold pursuant to such Reseller Shelf in compliance with Section 1.5.2,
or (ii) the Representatives deliver to the Company an opinion from its
legal counsel, which opinion is acceptable to the Company’s legal counsel,
stating that the Representatives are not “affiliates” under Securities Act Rule 144
and that the Representatives (or the beneficiaries of the Estate, as the case
may be) may sell Estate Shares without registration pursuant to Securities Act Rule 144(k).

 

1.6           Rejection of
Offering Price.  If (x) the
Representatives reject the Offering Price pursuant to Section 1.3.5 above
and elect not to sell any Estate Shares to the Company pursuant to the Stock
Purchase Agreement, (y) Furman and the Company accept such Offering Price and
the Company sells in the Offering and purchases from Furman pursuant to the
Stock Purchase Agreement an amount of Shares greater than or equal to the
greater of (i) 1,000,000 Shares, or (ii) the lesser of (A) one
third of the total number of Shares proposed to be sold in the Offering at the
time of the last rejection by the Representatives of the Offering Price
pursuant to Section 1.3.5 above, or (B) 1.5 million Shares ((x) and
(y) collectively referred to as a “Rejected Offering”), then the sale or
transfer of Estate Shares shall be governed by this Section 1.6 and shall
not be governed by Section 1.5.

 

1.6.1        No Registration
Rights.  Following a Rejected Offering,
the Representatives shall have no Registration Rights and the Registration
Rights Agreement shall have no force or effect and shall automatically be
terminated.

 

1.6.2        Compliance with Rule 144.  Following a Rejected Offering, the
Representatives may sell Estate Shares in compliance with Securities Act Rule 144
as its applies to “affiliates”, including, without limitation, the volume
limitations of Securities Act Rule 144(e)(i) applicable to “affiliates.”  The Company shall be under no obligation to
remove restrictive legends from certificates representing Estate Shares in
connection with a proposed sale or other transfer of Estate Shares or any
interest therein, unless and until such time as the Representatives deliver to
the Company an opinion from its legal counsel, which opinion is acceptable to
the Company’s legal counsel, stating that the proposed transaction is exempt
from registration under the Securities Act.

 

1.6.3        Private Sales
and Financing Transactions.  Following
a Rejected Offering, the Representatives may sell or transfer an unlimited
number of Estate Shares or an any interest therein in Privately Negotiated
Transactions or Financing Transactions that comply with the Securities Act,
provided, however, (i) the Company shall have no obligation to remove the
restrictive legends in connection with such Privately Negotiated Transactions
or Financing Transactions unless and until such time as the Representatives
deliver to the Company an opinion from its legal counsel, which opinion is
acceptable to the Company’s legal counsel, stating that the Representatives are
not “affiliates” under Securities Act Rule 144 and that the
Representatives (or the beneficiaries of the Estate, as the case may be) may
sell Estate Shares without registration

 

8

 

pursuant to Securities Act Rule 144(k), and (ii) such
Privately Negotiated Transactions and Financing Transactions shall be subject
to the New ROFR described in Section 1.4

 

1.7           Beach
House.  Concurrently with the execution
of this Settlement Agreement, Greenbrier shall cause its subsidiary, Greenbrier
Leasing Corporation (“GLC”) to execute and deliver to the Representatives the
Beach House Release in the form attached hereto as Exhibit F, releasing
Alan James and the Representatives from their obligation to purchase from GLC
certain real property and improvements in Lincoln County, Oregon pursuant to
the terms of the Option Agreement with Right of First Refusal and Agreement of
Purchase and Sale dated as of June 1, 1994.

 

1.8           Loan to
Representatives.  Furman and the
Company hereby waive any and all rights under the Stockholders’ Agreement with
respect to restrictions on the transfer of Shares or the Old ROFR, and consent
to the pledge by the Representatives of up to 750,000 Estate Shares (the “Pledged
Shares”) to Bear Stearns to secure a loan in the amount of $5,000,000 (the “Loan”).  Upon the receipt of a legal opinion from
counsel to the Representatives reasonably satisfactory to the Company and its
counsel, the Company (i) will facilitate the exchange by the
Representatives of a certificate representing a number of Estate Shares in
excess of the number of Pledged Shares for two separate certificates, one
representing the Pledged Shares (the “Pledged Shares Certificate”) and one
representing the balance of the Estate Shares represented by the exchanged
certificate, (ii) will remove the restrictive legends on the Pledged
Shares Certificate, and (iii) will not take any action to prohibit or
interfere with the pledge of the Pledged Shares and the Loan or any sale or
other transfer of the Pledged Shares upon a foreclosure of the Loan.  If the Pledged Shares are purchased by the
Company pursuant to the Stock Purchase Agreement, then the Representatives
shall cause the Loan to be paid in full from the proceeds of such sale and
shall take all actions necessary to cause the pledge of the Pledged Shares to
be released.  Attached as Schedule 1
is a description of the proposed use of proceeds of the Loan.  The Representatives may disburse the proceeds
from the Loan as described in Schedule 1, or with such changes as are
disclosed in advance in writing to the Company for its approval, which approval
shall not be unreasonably withheld or delayed. 
Notwithstanding the foregoing, the proceeds from the Loan shall not be
used to finance any litigation against, or any new or continuing investigation
or inquiry of, the Company or Furman.

 

1.9           Charitable
Remainder Trust.  The
Representatives and the Company hereby waive any and all rights under the
Stockholders’ Agreement with respect to restrictions on the transfer of Shares
or the Old ROFR and consent to the transfer, at the option of Furman, of Furman
Shares with a market value not to exceed $5,000,000 to a charitable remainder
trust (the “Charitable Trust”) which shall be substantially similar to the
trusts established by Furman and James in 1994, provided that the trustees of
Charitable Trust shall be prohibited from distributing any of the Furman Shares
held in the Charitable Trust to any beneficiaries of the Charitable Trust and
from selling any of the Furman Shares held in the Charitable Trust prior to the
earlier to occur of (i) December 31, 2007, or (ii) 60 days after
the date on which the Representatives and the beneficiaries of the Estate,
collectively, own less than 500,000 Shares.

 

9

 

1.10         Furman
Registration Rights.  The Company
will not file a registration statement covering the sale of Furman Shares prior
to the first to occur of (i) the earlier of the first anniversary of the
date of (x) the last Closing under the Stock Purchase Agreement, or (y) the
termination of the Stock Purchase Agreement, (ii) 60 days after the date
on which the Representatives and the beneficiaries of the Estate, collectively,
own less that 500,000 Shares, and (iii) the date on which Furman ceases to
serve as (A) an officer of the Company, and (B) Chairman of the Board
of the Company (other than in a non-executive capacity) (the period prior to
the first to occur of (i), (ii) or (iii) being referred to as the “No
Registration Period”).

 

1.11         Share
Repurchases.  Until the
expiration of the No Registration Period, except pursuant to the Stock Purchase
Agreement, the Company will not repurchase Furman Shares, or offer to
repurchase Furman Shares, unless the Company offers to purchase from the
Representatives and the beneficiaries of the Estate, concurrently with any
purchase from Furman, the same number of Shares to be purchased from Furman (or
if less, the remaining Shares held by the Representatives and the beneficiaries
of the Estate), upon the same terms and conditions and at the same price.

 

1.12         Releases; Other
Agreements.  Contemporaneously,
with the execution of this Agreement, the Representatives, the Company and
Furman, as an individual, shall enter into the Mutual General Release in the
form attached hereto as Exhibit E pursuant to which (i) such parties
shall release claims against each other, other than claims related to James
Furman and Company Partnership (the “James Furman Partnership”), (ii) such
parties shall consent not to sue each other with respect to the released claims
(iii) such parties shall agree not to disparage each other, and (iv) the
Representatives shall agree not to purchase any Shares or to make any document
requests to the Company or conduct investigations of the Company or Furman
other than in connection with matters relating to the James Furman Partnership
or the failure of the Company or Furman to perform its or his obligations under
this Agreement, the agreements referred to herein or the agreements
contemplated hereby or thereby.

 

1.13         Expenses.  Each party shall be responsible for its own
expenses in connection with this Agreement and including Exhibits.  In addition, neither the Representatives, any
party to the Delaware Litigation nor any of their respective representatives or
advisors shall seek reimbursement of any legal fees or other expenses in
connection with the Delaware Litigation.

 

ARTICLE II. –
REPRESENTATIONS AND WARRANTIES

 

2.1           Representations
and Warranties of Furman.  Furman
represents and warrants to the Representatives and Greenbrier that the
statements contained in this Section 2.1 are true and correct as of the
date hereof.

 

2.1.1        Capacity;
Consents and Approvals; No Violations. 
Furman has full capacity to execute, deliver and perform this Agreement
and each of the agreements attached as Exhibits to which he is a party.  Neither the execution, delivery or
performance of this Agreement, or any of the agreements attached as Exhibits to
which Furman is a party, by Furman, nor compliance by Furman with any of the
provisions hereof or thereof will (i) conflict with or result in any
breach of any provision of any agreement, document or instrument to which
Furman is a party or by which Furman is bound, (ii) require any filing by
Furman with, or any permit, authorization,

 

10

 

consent or approval of, any judicial or governmental entity, (iii) require
any consent, other than the consents provided by Furman, the Representatives
and the Company pursuant to this Agreement and pursuant to the Stockholders’
Agreement, approval or notice under, or result in a violation or breach of, or
constitute (with or without due notice or the passage of time or both) a
default (or give rise to any right of termination, amendment, cancellation or
acceleration) under, any of the terms, conditions or provisions of any
agreement to which Furman is a party or by which his assets or properties are
bound, or (iv) violate any order, writ, injunction, decree, statute, rule or
regulation applicable to Furman or any of his assets or properties.

 

2.1.2        Binding
Agreement.  This Agreement has been
duly executed and delivered by Furman and, assuming the due and valid
authorization, execution and delivery hereof by the Representatives, this
Agreement is a valid and binding obligation of Furman enforceable against him
in accordance with its terms, except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance and other similar
laws of general application affecting enforcement of creditors’ rights
generally.

 

2.2           Representations
and Warranties of the Representatives. 
Each of the Representatives, in his capacity as a Representative and not
in his individual capacity or any other capacity, represents and warrants to
Furman and Greenbrier that the statements contained in this Section 2.2
are true and correct as of the date hereof.

 

2.2.1        Power and
Authority; Consents and Approvals; No Violations.  The Representatives have full power and
authority to execute and perform this Agreement and each of the agreements
attached as Exhibits to which the Representatives are parties.  None of 
the execution and delivery or performance of this Agreement, or any of
the agreements attached as Exhibits to which the Representatives are parties,
by the Representatives, or compliance by the Representatives with any of the
provisions hereof or thereof will (i) conflict with or result in any
breach of any provision of any will, trust or other document to which the
Representatives are parties or by which it is bound, (ii) except to the
extent provided for in the Stock Purchase Agreement, require any filing by the
Representatives with, or permit, authorization, consent or approval of, any
judicial or governmental entity, (iii) require any consent, other than the
consents provided by Furman, the Representatives and the Company pursuant to
this Agreement and pursuant to the Stockholders’ Agreement, approval or notice
under, or result in a violation or breach of, or constitute (with or without
due notice or the passage of time or both) a default (or give rise to any right
of termination, amendment, cancellation or acceleration) under, any of the
terms, conditions or provisions of any agreement to which the Representatives
are parties or by which its assets or properties are bound, or (iv) violate
any order, writ, injunction, decree, statute, rule or regulation
applicable to the Representatives or any of the assets or properties of the
Estate.

 

2.2.2        Binding
Agreement.  This Agreement has been
duly executed and delivered by the Representatives and, assuming the due and
valid authorization, execution and delivery hereof by Furman and the Company,
this Agreement is a valid and binding obligation of the Representatives
enforceable against the Representatives, in their capacities as Representatives
of the Estate and in their capacities as Trustees of a Trust, in accordance
with its terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance and other similar laws of
general application affecting enforcement of creditors’ rights generally.

 

11

 

2.3           Representations
and Warranties of Greenbrier. 
Greenbrier represents and warrants to Furman and the Representatives
that the statements contained in this Section 2.3 are true and correct as
of the date hereof.

 

2.3.1        Organization.  The Company is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware.

 

2.3.2        Authorization;
Validity of Agreement; Necessary Action. 
The Company has full power and authority to execute, deliver and perform
this Agreement and each of the agreements attached as Exhibits to which it is a
party.  The execution, delivery and
performance by the Company of this Agreement and each of the agreements
attached as Exhibits to which it is a party have been duly authorized by the
board of directors of the Company and no other corporate action on the part of
the Company is necessary to authorize the execution, delivery and performance
by the Company of this Agreement or any agreement attached as an Exhibit to
which it is a party.  This Agreement has
been duly executed and delivered by the Company and, assuming due and valid
authorization, execution and delivery hereof by Furman and the Representatives,
this Agreement is a valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance and other similar laws of general application affecting the
enforcement of creditors’ rights generally.

 

2.3.3        Consents
and Approvals; No Violations.  None
of the execution, delivery or performance of this Agreement, or any of the
agreements attached as Exhibits to which the Company is a party, by the
Company, or compliance by the Company with any of the provisions hereof or
thereof will (i) conflict with or result in any breach of any provision of
the certificate of incorporation, bylaws or other organizational documents of
the Company, (ii) require any filing (other than any required filings with
the Commission) with, or permit, authorization, consent or approval of, any
judicial or governmental entity, (iii) require any consent, other than the
consents provided by Furman and the Representatives pursuant to this Agreement
and pursuant to the Stockholders’ Agreement, approval or notice under, or
result in a violation or breach of, or constitute (with or without due notice
or the passage of time or both) a default (or give rise to any right of
termination, amendment, cancellation or acceleration) under, any of the terms,
conditions or provisions of any agreement to which the Company is a party or by
which its assets or properties are bound, or (iv) violate any order, writ,
injunction, decree, statute, rule or regulation applicable to the Company
or any of its assets or properties.

 

ARTICLE III. –
MISCELLANEOUS

 

3.1           Further
Assurances.  Each Party hereto
shall use reasonable and diligent efforts to proceed promptly with the
transactions contemplated herein, to fulfill the conditions precedent, and to
execute such other and further documents and perform such other and further
acts as may reasonably be required or appropriate to effectuate the provisions
of this Agreement.

 

3.2           Entire
Agreement.  This Agreement and
the Exhibits and Schedules hereto constitute and is intended to constitute the
entire agreement of the Parties concerning the subject matter hereof.  No covenants, agreements, representations or
warranties of any kind whatsoever have been made by any Party hereto, except as
specifically set forth herein.  All prior
or 

 

12

 

contemporaneous
discussions or negotiations with respect to the subject matter hereof are
superseded by this Agreement.

 

3.3           Successor
and Assigns.  This Agreement in
its entirety shall be binding upon and inure to the benefit of the Parties,
their respective heirs, successors, and assigns.

 

3.4           Construction.  The Parties hereby acknowledge that each of
them has been represented by independent counsel of their own selection
throughout all negotiations preceding the execution of this Agreement, and that
they have executed the same after consulting with such counsel.  The Parties and their respective counsel
cooperated in the drafting and preparation of this Agreement such that it shall
be deemed to be their joint work product and may not be construed against any
of the Parties by reason of its preparation.

 

3.5           Severability.  If any provision of this Agreement is
determined by a court of competent jurisdiction to be invalid or unenforceable,
in whole or in part, the remaining provisions, and any partially invalid or
unenforceable provisions, to the extent valid and enforceable, shall
nevertheless be binding and valid and enforceable.

 

3.6           Modification
and Amendment.  This Agreement
may not be modified or amended orally and no modification, termination or
waiver shall be valid unless in writing and signed by all of the Parties.

 

3.7           Choice
of Law/Venue.  The terms and
provisions of this Agreement shall be construed according to and governed by
the laws of the State of Delaware, notwithstanding any conflicts of law.  Any action arising from, or relating to, the
terms or provisions of this Agreement shall be instituted in the  Court of Chancery of the State of Delaware in
and for New Castle County.  Each of the
parties hereto consents to service of process by registered mail in connection
with any such action.

 

3.8           No
Admission.  The Parties
understand, acknowledge and agree that any claims any Party may have against
any other Party are disputed and that all Parties are entering into this
Agreement for the purpose of settling such disputes by compromise in order to
avoid litigation.  Neither the execution
nor delivery of this Agreement by any Party, nor the performance of any
obligation hereunder is an admission as to the merits of any of the claims the
Parties may have against one another, or that the Parties have against any
other persons or entities.

 

3.9           Notices.  Unless otherwise provided herein, all
notices, demands, requests, claims and other communications hereunder shall be in
writing and may be given by any of the following methods:  (a) personal delivery; (b) facsimile
transmission; (c) registered or certified mail, postage prepaid, return
receipt requested; or (d) internationally recognized overnight courier
service.  Such notices and communications
shall be sent to the appropriate party at its address or facsimile number given
below or at such other address or facsimile number for such as shall be
specified by notice given hereunder (and shall be deemed given upon receipt by
such party or upon actual delivery to the appropriate address, or, in case of a
facsimile transmission, upon transmission thereof by the sender and issuance by
the transmitting machine of a confirmation slip that the number of pages constituting
the notice have been transmitted without error; in the case of notices sent by
facsimile transmission, the sender shall contemporaneously mail a copy of the
notice to the

 

13

 

addressee at the address
provided for above, provided  however, that such mailing shall in
no way alter the time at which the facsimile notice is deemed received):

 

	
  if to Furman,
  to:

  	
   

  	
   

  
	
  Name:

  	
   

  	
  William A. Furman

  
	
  Address:

  	
   

  	
  Suite 200

  
	
   

  	
   

  	
  One Centerpointe Drive

  
	
   

  	
   

  	
  Lake Oswego, OR 97035

  
	
  Fax No.:

  	
   

  	
  (503) 624-1488

  
	
   

  	
   

  	
   

  
	
  with a copy (which shall not constitute notice) to:

  
	
  Name:

  	
   

  	
  Henry H.
  Hewitt, Esq.

  
	
  Address:

  	
   

  	
  Stoel Rives LLP

  
	
   

  	
   

  	
  900 S.W. Fifth Avenue, Suite 2300

  
	
   

  	
   

  	
  Portland, OR 97204

  
	
  Fax No.:

  	
   

  	
  (503) 220-2480

  
	
   

  	
   

  	
   

  
	
  if to the Representatives, to:

  
	
  Name:

  	
   

  	
  George L.
  Chelius, Esq.

  
	
  Address:

  	
   

  	
  3600 Birch Street, Suite 100

  
	
   

  	
   

  	
  Newport Beach, CA 92660

  
	
  Fax No.:

  	
   

  	
  (949) 863-9010

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Eric Epperson

  
	
  Address:

  	
   

  	
  25 NW 23rd Place, Suite 6

  
	
   

  	
   

  	
  PMB 180

  
	
   

  	
   

  	
  Portland, OR 97210

  
	
  Fax No.:

  	
   

  	
  (503) 796-1833

  
	
   

  	
   

  	
   

  
	
  with a copy (which shall not constitute notice) to:

  
	
  Name:

  	
   

  	
  Jeffrey T. Pero, Esq.

  
	
   

  	
   

  	
  Latham & Watkins LLP

  
	
  Address:

  	
   

  	
  505 Montgomery Street, Suite 2000

  
	
   

  	
   

  	
  San Francisco, CA 94111-2562

  
	
  Fax No.:

  	
   

  	
  (415) 395-8095

  
	
   

  	
   

  	
   

  
	
  if to the Company, to:

  
	
  Name:

  	
   

  	
  The Greenbrier Companies, Inc.

  
	
  Address:

  	
   

  	
  Suite 200

  
	
   

  	
   

  	
  One Centerpointe Drive

  
	
   

  	
   

  	
  Lake Oswego, OR 97035

  
	
   

  	
   

  	
  Attention: Norriss Webb, Esq.

  
	
  Fax No.:

  	
   

  	
  (503) 684-7553

  

 

14

 

 

	
  with a copy (which shall not constitute notice) to:

  
	
  Name:

  	
   

  	
  Joseph Giunta, Esq.

  
	
   

  	
   

  	
  Skadden, Arps, Slate, Meagher & Flom LLP

  
	
  Address:

  	
   

  	
  300 S. Grand Avenue, Suite 3400

  
	
   

  	
   

  	
  Los Angeles, California 90071

  
	
  Fax No.:

  	
   

  	
  (213) 687-5600

  

 

3.10         Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

3.11         Facsimile
Transmissions.  Facsimile
transmissions of signatures shall be deemed to constitute original signatures.

 

3.12         Distribution
of Estate Shares by the Representatives.  The Representatives shall not distribute any
Estate Shares to any beneficiaries of the Estate other than to themselves as
trustees (“Trustees”) of one or more trusts established under the will of Alan
James (each a “Trust”) and in the event of the distribution of Estate Shares to
themselves as Trustees of a Trust, they will have the same rights and
obligations as Trustees of the Trust with respect to the Estate Shares
distributed to them as they had as Representatives with respect to the Estate
Shares prior to distribution.  Any
transfer of Estate Shares to a Trust will not affect any of the rights of
Furman or the Company under this Agreement including the Exhibits and Schedules
hereto.

 

3.13         No
Recourse.  The Parties agree that
all of the representations, warranties, covenants and agreements made by the
Representatives contained in this Agreement are made and intended only for the
purpose of making the assets held for the benefit of the beneficiaries of the
Estate (the “Estate Assets”) or the assets of a Trust (the “Trust Assets”), as
the case may be, available for the payment of damages for breach of the
representations, warranties, covenants and agreements of the Representatives to
the extent provided for in this Agreement. 
Therefore, anything contained in this Agreement or in any other
agreement or document referred to herein or contemplated hereby or thereby to
the contrary notwithstanding, no recourse shall be had with respect to the
enforcement of this Agreement or the obligations of the Representatives or the
Trustees hereunder or for any claim based on any provision of this Agreement or
any of the agreements or documents referred to herein or contemplated hereby or
thereby, against the Representatives or Trustees in their individual capacities
or in any capacity other than as Representatives or Trustees.  Nothing contained in this Section 3.13
shall be construed to limit the exercise and enforcement, in accordance with
the terms of this Agreement of rights and remedies against the Estate Assets or
the Trust Assets.

 

3.14         Directors and Officers Insurance.  The Company shall maintain directors and
officers insurance covering actions taken by James for seven years following
the death of James in an amount equal to the greater of (i) existing
amounts and with existing coverage, if available at commercially reasonable
rates or (ii) such amounts and with the same coverage as is provided for
the benefit of the then current independent members of the Company’s board of
directors.  The Company shall use
commercially reasonable efforts to cause the applicable insurance carriers to
add the Representatives as additional insureds.

 

15

 

3.15         Collection of Documents.  The Representatives shall and shall cause
their respective representatives and agents, Relational, James’ counsel, the
Representatives’ counsel and other advisors to the Representatives (excluding
FTI and Cerberus Partners, LP), in possession of the Produced Documents, as
defined in Schedule 2 hereto, to send the Produced Documents and all
copies thereof to the Representatives’ legal counsel, Latham &
Watkins, for retention on behalf of such parties.  Such parties shall not be precluded from
obtaining, at any time, access to or copies of the Produced Documents delivered
to Latham & Watkins so long as such access is or copies are being
sought for the purpose of complying with law, regulation or court or regulatory
order or other legal process or responding to or preparing to respond to, or as
a result of, actual, threatened or possible litigation, governmental
investigation or inquiry or similar proceeding, claim of liability or potential
liability, or internal or external audit or examination.  If such access is or copies are sought for
another purpose, then the consent of the Company shall be required, which
consent shall not be unreasonably denied or delayed.  It is expressly understood that Latham &
Watkins (i) shall have no responsibility for determining the purpose for
which any party requests access to or copies of any of the Produced Documents
in its possession or for determining whether access to or the provisions of
copies of any of the Produced Documents is permissible under this Agreement,
and (ii) shall have no liability to any party under any circumstances for
providing access to or copies of Produced Documents to any party.  The Representatives agree that the Produced
Documents shall remain confidential and that disclosure of the Produced
Documents shall not be made to anyone except their representatives and advisors
who need to have access to the Produced Documents for the purposes described
above, without the prior written consent of the Company, unless the disclosure
is required by law, regulation or court or regulatory order or other legal
process, or is in response to, or as a result of or in connection with
litigation or a governmental investigation or inquiry or similar proceeding or
claim of liability or internal or external audit or examination, in which case
no consent of the Company shall be required. 
The Representatives shall advise the other parties delivering Produced
Documents to Latham & Watkins of the confidential nature of the
Produced Documents and of the existence of the agreement in this Section 3.15.  So long as there is no pending litigation or
governmental investigation or inquiry or similar proceeding or claim of
liability or internal or external audit or examination requiring the
preservation of the Produced Documents, then on, or shortly after, the
seven-year anniversary of the date of this Agreement, the Representatives shall
instruct Latham & Watkins to destroy the Produced Documents and all
copies thereof delivered by the Representatives to Latham & Watkins
and shall cause the other parties delivering Produced Documents to Latham &
Watkins pursuant hereto to instruct Latham & Watkins to destroy the
Produced Documents so delivered and all copies thereof.

 

16

 

IN WITNESS WHEREOF, the Parties hereto have approved
and executed this Agreement as of April 20, 2005.

 

	
   

  	
  THE GREENBRIER COMPANIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Larry G. Brady

  	
   

  
	
   

  	
  By:     Larry
  G. Brady, Senior Vice President and

  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ William A. Furman

  	
   

  
	
   

  	
  William A. Furman, in
  his capacity as an individual

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ George L. Chelius

  	
   

  
	
   

  	
  George L. Chelius in
  his capacity as Executor of the

  Will and Estate of Alan James and Trustee of one or

  more Trusts referred to in Section 3.12 of this

  Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Eric Epperson

  	
   

  
	
   

  	
  Eric Epperson in his
  capacity as Executor of the

  Will and Estate of Alan James and Trustee of one or

  more Trusts referred to in Section 3.12 of this

  Agreement

  

 

 

[Signature Page to
Settlement Agreement]

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I. – TERMS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Dismissal of
  Delaware Litigation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2

  	
  Stock Purchase Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.3

  	
  Offering

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.4

  	
  Termination
  of Stockholders’ Agreement and Old ROFR

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.5

  	
  Sale
  of Estate Shares Not Purchased by the Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.6

  	
  Rejection of Offering
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.7

  	
  Beach House

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.8

  	
  Loan to Representatives

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.9

  	
  Charitable Remainder
  Trust

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.10

  	
  Furman Registration
  Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.11

  	
  Share Repurchases

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.12

  	
  Releases; Other
  Agreements

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.13

  	
  Expenses

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  II. – REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Representations
  and Warranties of Furman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.2

  	
  Representations
  and Warranties of the Representatives

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.3

  	
  Representations
  and Warranties of Greenbrier

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III. –
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Further Assurances

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Entire Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.3

  	
  Successor and Assigns

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.4

  	
  Construction

  	
   

  

 

i

 

	
   

  	
  3.5

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.6

  	
  Modification and
  Amendment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.7

  	
  Choice of Law/Venue

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.8

  	
  No Admission

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.9

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.10

  	
  Counterparts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.11

  	
  Facsimile Transmissions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.12

  	
  Distribution
  of Estate Shares by the Representatives

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.13

  	
  No Recourse

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.14

  	
  Directors and
  Officers Insurance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.15

  	
  Collection of Documents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

ii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]