Document:

<PAGE>

                                                                   EXHIBIT 10.36

                         MERITAGE HOSPITALITY GROUP INC.
                  AMENDED 2002 MANAGEMENT EQUITY INCENTIVE PLAN

                             ARTICLE 1 - OBJECTIVES

         Meritage Hospitality Group Inc. has established this Management Equity
Incentive Plan, as amended, effective May 21, 2002 as an incentive to the
attraction and retention of dedicated and loyal employees of outstanding
ability, to stimulate the efforts of such persons in meeting Meritage
Hospitality Group Inc.'s objectives and to encourage ownership of its Common
Shares by employees.

                            ARTICLE 2 - DEFINITIONS

         For purposes of this Plan, the following terms shall have the following
meanings:

         2.1      "Advisor" means anyone who provides bona fide advisory or
consultation services to the Company other than the offer or sale of securities
in a capital-raising transaction.

         2.2      "Award" means any one or more of the following: (a) Stock
Options, (b) Stock Appreciation Rights, free-standing or in tandem with Stock
Options, (c) Restricted Stock, (d) performance Shares conditioned upon meeting
performance criteria, and (e) other awards based in whole or in part by
reference to or otherwise based on Company Shares, or other securities of the
Company or any Subsidiary.

         2.3      "Award Agreement" means a written agreement setting forth the
terms of an Award.

         2.4      "Award Date" or "Grant Date" means the date designated by the
Committee as the date upon which an Award is granted.

         2.5      "Award Period" or "Term" means the period beginning on an
Award Date and ending on the expiration date of such Award.

         2.6      "Board" means the Board of Directors of the Company.

         2.7      "Code" means the Internal Revenue Code of 1986, as amended, or
any successor legislation.

         2.8      "Committee" means the committee appointed by the Board and
consisting of one or more Directors, none of whom shall be eligible to receive
any Award under this Plan. Members of the Committee must qualify as Non-Employee
Directors as defined by Rule 16b-3(b)(3)(i). To the extent that it is desired
that compensation resulting from an Award be excluded from the deduction
limitation of Section 162(m) of the Code, all members of the Committee granting
an Award also shall be "outside directors" within the meaning of Section 162(m).

         2.9      "Company" means Meritage Hospitality Group Inc.

         2.10     "Disability" means a "permanent and total disability" within
the meaning of Section 22(e)(3) of the Code.

         2.11     "Eligible Employee" means anyone, other than one who receives
retirement benefits, consulting fees, honorariums, and the like from the Company
who performs services for the Company or

                                       -i-
<PAGE>

a Subsidiary, including an officer or director of the Company or a Subsidiary;
and is compensated on a regular basis by the Company or a Subsidiary. Directors
who are not full-time employees of the Company or a Subsidiary are not eligible
to receive Awards under this Plan. Eligibility under this Plan shall be
determined by the Committee.

         2.12     "Fair Market Value" means the last closing price for a Share
on the American Stock Exchange or any other stock exchange or national trading
or quotation system on which such sales are reported. If the Shares are not so
traded or reported, Fair Market Value shall be set under procedures established
by the Committee.

         2.13     "Incentive Option" means any Stock Option intended to be and
designated as an "Incentive Stock Option" within the meaning of Section 422 of
the Code or any successor provision.

         2.14     "Mature Shares" means Company Shares that an Eligible Employee
or Advisor has owned for at least six months.

         2.15     "Non-Tandem SAR" means a Stock Appreciation Right granted
without reference to a Stock Option.

         2.16     "Non-Qualified Option" means any Stock Option that is not an
Incentive Stock Option.

         2.17     "Officer" means a person who is considered to be an officer of
the Company under Rule 16a-1(f).

         2.18     "Other Stock Unit Awards" shall have the meaning set forth in
Section 10.1 hereof.

         2.19     "Plan" means this 2002 Meritage Hospitality Group Inc.
Management Equity Incentive Plan as it may be amended.

         2.20     "Reference Option" shall have the meaning set forth in Section
7.1 hereof.

         2.21     "Option Price" or "Exercise Price" means the price per Share
at which Common Stock may be purchased upon the exercise of an Option or an
Award.

         2.22     "Participant" means a person to whom an Award has been made
pursuant to this Plan.

         2.23     "Replacement Option" means a Non-Qualified Option granted
pursuant to Subsection 6.3, upon the exercise of a Stock Option granted
pursuant to this Plan where the Option Price is paid with previously owned
Shares.

         2.24     "Restricted Stock" means Shares issued pursuant to a
Restricted Stock Award which are subject to the restrictions set forth in the
related Award Agreement.

         2.25     "Restricted Stock Award" means an award of a fixed number of
Shares to a Participant which is subject to forfeiture provisions and other
conditions set forth in the Award Agreement.

         2.26     "Retirement" means any termination of employment (other than
by death or Disability) by an employee who is at least 65 years of age, or, in
the case of an officer of the Company or the President of any of its
subsidiaries, at least 55 years of age.

         2.27     "Rule 16b-3" and "Rule 16a-1(f)" mean Securities and Exchange
Commission Regulations Sect. 240.16b-3 and Sect. 240.16a-1(f) or any
corresponding successor regulations.

                                      -ii-
<PAGE>

         2.28     "Share" means one share of the Company's Common Stock.

         2.29     "Stock Appreciation Right" or "SAR" means the right to
receive, for each unit of the SAR, cash and/or Shares equal in value to the
excess of the Fair Market Value of one Share on the date of exercise of the SAR
over the reference price per Share established on the date the SAR was granted.

         2.30     "Stock Option" or "Option" means the right to purchase Shares
of Common Stock, including a Replacement Option, granted pursuant to Article 6.

         2.31     "Subsidiary" means any corporation, partnership, joint
venture, or other entity of which the Company owns or controls, directly or
indirectly, 25% or more of the outstanding voting stock, or comparable equity
participation and voting power, or which the Company otherwise controls, by
contract or any other means. However, when the term "Subsidiary" is used in the
context of an Award of an Incentive Option, the applicable percentage shall be
50%. "Control" means the power to direct or cause the direction of the
management and policies of a corporation or other entity.

         2.32     "Tandem SAR" shall mean a Stock Appreciation Right granted
with reference to a Stock Option.

         2.33     "Transfer" means alienation, attachment, sale, assignment,
pledge, encumbrance, charge or other disposition; and the terms "Transferred" or
"Transferable" have corresponding meanings.

                           ARTICLE 3 - ADMINISTRATION

         3.1      The Committee. This Plan shall be administered and interpreted
by the Committee.

         3.2      Awards. The Committee is authorized to grant (i) Stock
Options; (ii) Stock Appreciation Rights, in tandem with Stock Options or
free-standing; (iii) Restricted Stock; (iv) performance Shares conditioned upon
meeting performance criteria; and (v) other awards based in whole or in part by
reference to or otherwise based on Company Shares, or other securities of the
Company or any Subsidiaries (collectively, the "Awards"). In particular, the
Committee shall have the authority to:

                  3.2.1    select the Eligible Employees and Advisors to whom
         Awards may be granted;

                  3.2.2    determine the types and combinations of Awards to be
         granted;

                  3.2.3    determine the number of Shares or monetary units
         which may be subject to each Award;

                  3.2.4    determine the terms and conditions, not inconsistent
         with the terms of this Plan, of any Award, including, but not limited
         to, the term, price, exercisability, method of exercise, any
         restriction or limitation on transfer, any vesting schedule or
         acceleration, or any forfeiture provisions or waiver, regarding any
         Award, and the related Shares, based on such factors as the Committee
         shall determine; and

                  3.2.5    modify or waive any restrictions or limitations
         contained in, and grant extensions to the terms of or accelerate the
         vestings of, any outstanding Award, other than Performance Awards, as
         long as such modifications, waivers, extensions or accelerations are
         not inconsistent with the terms of this Plan, but no such changes shall
         impair the rights of any Participant without his or her consent.

                                     -iii-
<PAGE>

         3.3      Guidelines. The Committee is authorized to adopt, alter and
repeal administrative rules, guidelines and practices governing this Plan and
perform all acts, including the delegation of its administrative
responsibilities, as it deems advisable; to construe and interpret the terms and
provisions of this Plan and any Award issued under this Plan; and to otherwise
supervise the administration of this Plan. The Committee may correct any defect,
supply any omission or reconcile any inconsistency in this Plan or in any
related Award Agreement in the manner and to the extent it deems necessary to
carry this Plan into effect.

         3.4      Delegation of Authority. The Committee may delegate its
authority to Officers of the Company and its administrative duties to Officers
or employees of the Company except with respect to persons who are Senior
Officers of the Company as defined by the Committee.

         3.5      Decisions Final. Any action, decision, interpretation or
determination by or at the direction of the Committee concerning the application
or administration of this Plan shall be final and binding upon all persons and
need not be uniform with respect to its determination of recipients, amount,
timing, form, terms or provisions.

                       ARTICLE 4 - SHARES SUBJECT TO PLAN

         4.1      Shares. Subject to adjustment as provided in Subsection 4.2,
the number of Shares which may be issued under this Plan shall not exceed Seven
Hundred Fifty Thousand (750,000) Shares. If any Award granted under this Plan
shall expire, terminate or be canceled for any reason without having been
exercised in full, the number of unacquired Shares subject to such Award shall
again be available for future grants. The Committee may make such other
determinations regarding the counting of Shares issued pursuant to this Plan as
it deems necessary or advisable, provided that such determinations shall be
permitted by law. Shares underlying a canceled Option shall be counted against
the maximum number of shares for which Options may be granted to an employee.
The repricing of an Option shall be treated as a cancellation of the Option and
the grant of a new Option.

         4.2      Adjustment Provisions.

                  4.2.1    If the Company shall at any time change the number of
         issued Shares without new consideration to the Company by stock
         dividend, split, combination, recapitalization, reorganization,
         exchange of shares, liquidation or other change in corporate structure
         affecting the Shares or make a distribution of cash or property which
         has a substantial impact on the value of issued Shares, the total
         number of Shares reserved for issuance under the Plan shall be
         appropriately adjusted and the number of Shares covered by each
         outstanding Award and the reference price or Fair Market Value for each
         outstanding Award shall be adjusted so that the aggregate consideration
         payable to the Company and the value of each such Award shall not be
         changed.

                  4.2.2    The Committee may authorize the issuance,
         continuation or assumption of Awards or provide for other equitable
         adjustments after changes in the Shares resulting from any merger,
         consolidation, sale of assets, acquisition of property or stock,
         recapitalization, reorganization or similar occurrence in which the
         Company is the continuing or surviving corporation, upon such terms and
         conditions as it may deem equitable and appropriate.

         4.3      Merger, Dissolution or Liquidation. In the event of the
dissolution or liquidation of the Company or any merger, consolidation, exchange
or other transaction in which the Company is not the surviving corporation or in
which 75% or more of the outstanding Shares of the Company are converted into
cash, other securities or other property, each outstanding Award shall terminate
as of a date fixed by

                                      -iv-
<PAGE>

the Committee, provided that not less than 20 days written notice of the date of
expiration shall be given to each holder of an Award, and each outstanding Award
shall be fully vested and each such holder shall have the right during such
period following notice to exercise the Award as to all or any part of the
Shares for which it is exercisable.

         4.4      Change of Control. All outstanding Awards shall become
immediately exercisable in full if a change in control of the Company occurs.
For purposes of this Agreement, a "change in control of the Company" shall be
deemed to have occurred if (a) any "person," as such term is used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, other than a trustee or
other fiduciary holding securities under an employee benefit plan of the Company
becomes the "beneficial owner," as defined in Rule 13d-3 under that Act,
directly or indirectly, of securities of the Company representing 30% or more of
the combined voting power of the Company's then outstanding securities; or (b)
during any period of one year (not including any period prior to the execution
of this Agreement), individuals who at the beginning of such period constitute
the Board of Directors and any new director whose election by the Board or
nomination for election by the Company's shareholders was approved by a vote of
at least two-thirds (2/3) of the Directors then still in office who either were
Directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute a
majority thereof.

                          ARTICLE 5 - DURATION OF PLAN

         This Plan shall continue in effect until May 21, 2012, unless
terminated sooner by the Board pursuant to Article 14.

                            ARTICLE 6 - STOCK OPTIONS

         6.1      Grants. Stock Options may be granted alone or in addition to
other Awards granted under this Plan. Each Option granted shall be designated as
either a Non-Qualified Option or an Incentive Option and in each case such
Option may or may not include Stock Appreciation Rights. One or more Stock
Options and/or Stock Appreciation Rights may be granted to any Eligible Employee
or Advisor, except that (i) no person shall receive during any 12 month period
Non-Qualified Stock Options covering more than One Hundred Thousand (100,000)
Shares, and (ii) only Non-Qualified Options may be granted to Advisors.

         6.2      Incentive Options. Any option designated by the Committee as
an Incentive Stock Option will be subject to the general provisions applicable
to all Options granted under the Plan plus the following specific provisions:

                  6.2.1    If an Incentive Stock Option is granted to a person
         who owns, directly or indirectly, stock representing more than 10% of
         (i) the total combined voting power of all classes of stock of the
         Company and its Subsidiaries, or (ii) a corporation that owns 50% or
         more of the total combined voting power of all classes of stock of the
         Company, then

                           6.2.1.1  the Option Price must equal at least 110% of
                  the Fair Market Value on the date of grant; and

                           6.2.1.2  the term of the Option shall not be greater
                  than five years from the date of grant.

                  6.2.2    The aggregate Fair Market Value of Shares, determined
         at the date of grant, with respect to which Incentive Stock Options
         that may be exercised for the first time by any

                                      -v-
<PAGE>

         individual during any calendar year under this Plan or any other plan
         maintained by the Company and its Subsidiaries shall not exceed
         $100,000. To the extent that the aggregate fair market value of Shares
         with respect to which Incentive Options are exercisable for the first
         time by any individual during any calendar year, under all plans of the
         Company and its Subsidiaries, exceeds $100,000, such Options shall be
         treated as Nonqualified Options.

                  6.2.3    Qualification under the Code. Notwithstanding
         anything in this Plan to the contrary, no term of this Plan relating to
         Incentive Options shall be interpreted, amended or altered, nor shall
         any discretion or authority granted under this Plan be exercised, so as
         to disqualify this Plan under Section 422 of the Code, or, without the
         consent of the Participants affected, to disqualify any Incentive
         Option under Section 422 of the Code.

         6.3      Replacement Options. The Committee may provide either at the
time of grant or subsequently that an Option shall include the right to acquire
a Replacement Option upon the exercise of such Option, in whole or in part,
prior to an Eligible Employee's termination of employment if the payment of the
Option Price is paid in Shares. In addition to any other terms and conditions
the Committee deems appropriate, the Replacement Option shall be subject to the
following terms:

                  6.3.1    the number of Shares subject to the Replacement
         Option shall not exceed the number of whole Shares used to satisfy the
         Option Price of the original Option and the number of whole Shares, if
         any, withheld by the Company as payment for withholding taxes in
         accordance with Subsection 15.3;

                  6.3.2    the Replacement Option Grant Date will be the date of
         the exercise of the original Option;

                  6.3.3    the Option Price per share shall be the Fair Market
         Value of a Share on the Replacement Option Grant Date;

                  6.3.4    the Replacement Option shall be exercisable no
         earlier than one year after the Replacement Option Grant Date; and

                  6.3.5    the Term of the Replacement Option will not extend
         beyond the Term of the original Option.

         The Committee may, without the consent of the Eligible Employee,
rescind the right to receive a Replacement Option at any time prior to an Option
being exercised.

                  6.4      Terms of Options. Except as otherwise required by
Subsections 6.2 and 6.3, Options granted under this Plan shall be subject to the
following terms and conditions and shall be in such form and contain such
additional terms and conditions, not inconsistent with the terms of this Plan,
as the Committee shall deem desirable:

                           6.4.1    Option Price. The Option Price shall be
                  determined by the Committee at the time of grant, except that
                  no Incentive Option may be granted for an Option Price less
                  than 100% of Fair Market Value on the Grant Date.

                           6.4.2    Option Term. The Option Term shall be fixed
                  by the Committee, but no Incentive Option shall be exercisable
                  more than ten years after its Award Date, and no Non-Qualified
                  Option shall be exercisable more than ten years after its
                  Award Date.

                                      -vi-
<PAGE>

                           6.4.3    Exercisability. A Stock Option shall be
                  exercisable at such time or times and subject to such terms
                  and conditions as shall be specified in the Award Agreement,
                  provided, however, that an Option may not be exercised as to
                  less than One Hundred (100) Shares at any one time or the
                  total number available for exercise at that time.

                           6.4.4    Method of Exercise. Stock Options may be
                  exercised in whole or in part at any time during the Option
                  Term by giving written notice of exercise to the Company's
                  Secretary specifying the number of Shares to be purchased.
                  Such notice shall be accompanied by payment in full of the
                  Option Price in cash or by tender of Mature Shares (or both),
                  or by some other form of consideration approved by the
                  Committee at or after the grant. Payment by tender of Mature
                  Shares may be made by tendering that number of Mature Shares
                  which have a Fair Market Value on the date of exercise equal
                  to the exercise price for the Option or portion thereof being
                  exercised. Payment may also be made through a broker-assisted
                  cashless exercise of Stock Options.

                           6.4.5    Transferability of Options. Stock Options
                  shall be Transferable as provided in Article 11.

                           6.4.6    Termination. Stock Options shall terminate
                  in accordance with Article 12.

                           6.4.7    Buyout and Settlement Provisions. The
                  Committee may at any time offer to buy out an Option
                  previously granted, based on such terms and conditions as the
                  Committee shall establish. The Committee may also substitute
                  new Stock Options for previously granted Stock Options having
                  higher Option Prices than the new Stock Options being
                  substituted therefor.

                     ARTICLE 7 - STOCK APPRECIATION RIGHTS

         7.1      Grant. A Stock Appreciation Right may be granted either with
or without reference to all or any part of a Stock Option. A "Tandem SAR" is an
SAR granted with reference to a Stock Option (the "Reference Option"). A
"Non-Tandem SAR" is an SAR granted without reference to a Stock Option. If the
Reference Option is a Non-Qualified Option, a Tandem SAR may be granted at or
after the date of the Reference Option; if the Reference Option is an Incentive
Option, the Grant Date of a Tandem SAR must be the same as the Grant Date of the
Reference Option. Any SAR shall have such terms and conditions, not inconsistent
with this Plan, as are established by the Committee in connection with the
Award.

         7.2      Term. A Tandem SAR shall terminate and no longer be
exercisable upon the termination of its Reference Option. A Non-Tandem SAR may
have a term no longer than 20 years from its Grant Date.

         7.3      Exercise. A Tandem SAR may only be exercisable at the times
and, in whole or in part, to the extent that its Reference Option is
exercisable. The exercise of a Tandem SAR shall automatically result in the
surrender of the applicable portion of its Reference Option. A Non-Tandem SAR
shall be exercisable in whole or in part as provided in its Award Agreement.
Written notice of any exercise must be given in the form prescribed by the
Committee.

         7.4      Payment. For purposes of payment of an SAR, the reference
price per Share shall be the Option Price of the Reference Option in the case of
a Tandem SAR and shall be the Fair Market Value of a Share on the Grant Date in
the case of a Non-Tandem SAR. The Committee shall determine the form of payment.

                                      -vii-
<PAGE>

         7.5      Transferability and Termination. Stock Appreciation Rights
shall be Transferable as provided in Article 11 and shall terminate in
accordance with Article 12.

              ARTICLE 8 - RESTRICTED AND UNRESTRICTED STOCK AWARDS

         8.1      Grants of Restricted Stock Awards. The Committee may, in its
discretion, grant one or more Restricted Stock Awards to any Eligible Employee
or Advisor. Each Restricted Stock Award shall specify the number of Shares to be
issued to the Participant, the date of such issuance, the price, if any, to be
paid for such Shares by the Participant and the restrictions imposed on such
Shares. The Committee may grant Awards of Restricted Stock subject to the
attainment of specified performance goals, continued employment or such other
limitations or restrictions as the Committee may determine.

         8.2      Terms and Conditions of Restricted Awards. Restricted Stock
Awards shall be subject to the following provisions:

                  8.2.1    Issuance of Shares. Shares of Restricted Stock may be
         issued immediately upon grant or upon vesting as determined by the
         Committee.

                  8.2.2    Stock Powers and Custody. If Shares of Restricted
         Stock are issued immediately upon grant, the Committee may require the
         Participant to deliver a stock power, endorsed in blank, relating to
         the Restricted Stock covered by such an Award. The Committee may also
         require that the certificates evidencing Restricted Stock be held in
         custody by the Company until the restrictions on them shall have
         lapsed.

                  8.2.3    Shareholder Rights. Unless otherwise determined by
         the Committee at the time of grant, Participants receiving Restricted
         Stock Awards shall not be entitled to dividend or voting rights for the
         Restricted Shares until they are fully vested.

                  8.2.4    Termination of Employment. Upon termination of
         employment during the restricted period, all Restricted Stock shall be
         forfeited, subject to such exceptions, if any, as are authorized by the
         Committee, as to termination of employment, Retirement, Disability,
         death or special circumstances.

         8.3      Unrestricted Stock Awards. The Committee may make awards of
unrestricted Shares to key Eligible Employees and Advisors in recognition of
outstanding achievements or contributions by such employees and advisors.
Unrestricted Shares issued on a bonus basis may be issued for no cash
consideration. Each certificate for unrestricted Shares shall be registered in
the name of the Participant and delivered to the Participant.

                         ARTICLE 9 - PERFORMANCE AWARDS

         9.1      Performance Awards.

                  9.1.1    Grant. The Committee may, in its discretion, grant
         Performance Awards to Eligible Employees and Advisors. A Performance
         Award shall consist of the right to receive either Shares or cash of an
         equivalent value, or a combination of both, at the end of a specified
         Performance Period (defined below) or a fixed dollar amount payable in
         cash or Shares, or a combination of both, at the end of a specified
         Performance Period. The Committee shall determine the Eligible
         Employees and Advisors to whom and the time or times at which
         Performance Awards shall be granted, the number of Shares or the amount
         of cash to be awarded to any person, the duration of the period during
         which, and the conditions under which, a

                                     -viii-
<PAGE>

         Participant's Performance Award will vest, and the other terms and
         conditions of the Performance Award in addition to those set forth in
         Subsection 9.2.

                  9.1.2    Criteria for Award. The Committee may condition the
         grant or vesting of a Performance Award upon the attainment of
         specified performance goals; the appreciation in the Fair Market Value,
         book value or other measure of value of the Shares; the performance of
         the Company based on earnings or cash flow; or such other factors or
         criteria as the Committee shall determine.

         9.2      Terms and Conditions of Performance Awards. Performance Awards
shall be subject to the following terms and conditions:

                  9.2.1    Dividends. Unless otherwise determined by the
         Committee at the time of the grant of the Award, amounts equal to
         dividends declared during the Performance Period with respect to any
         Shares covered by a Performance Award will not be paid to the
         Participant.

                  9.2.2    Payment. Subject to the provisions of the Award
         Agreement and this Plan, at the expiration of the Performance Period,
         share certificates, cash or both as the Committee may determine shall
         be delivered to the Participant, or his or her legal representative or
         guardian, in a number or an amount equal to the vested portion of the
         Performance Award.

                  9.2.3    Transferability. Performance Awards shall be
         Transferable as provided in Article 11.

                  9.2.4    Termination of Employment or Advisory Relationship.
         Subject to the applicable provisions of the Award Agreement and this
         Plan, upon termination of a Participant's employment or advisory
         relationship with the Company or a Subsidiary for any reason during the
         Performance Period for a given Award, the Performance Award in question
         will vest or be forfeited in accordance with the terms and conditions
         established by the Committee.

                      ARTICLE 10 - OTHER STOCK UNIT AWARDS

         10.1     The Committee is authorized to grant to employees of the
Company and its affiliates, either alone or in addition to other Awards granted
under the Plan, Awards of Common Shares or other securities of the Company or
any Subsidiary of the Company and other Awards that are valued in whole or in
part by reference to, or are otherwise based on, Common Shares or other
securities of the Company or any subsidiary of the Company ("Other Stock Unit
Awards"). Other Stock Unit Awards may be paid in cash, Common Shares, other
property or in a combination thereof, as the Committee shall determine.

         10.2     The Committee shall determine the employees to whom Other
Stock Unit Awards are to be made, the times at which such Awards are to be made,
the number of Shares to be granted pursuant to such Awards and all other
conditions of such Awards. The provisions of Other Stock Unit Awards need not be
the same with respect to each recipient. The recipient shall not be permitted to
sell, assign, transfer, pledge, or otherwise encumber the Common Shares or other
securities prior to the later of the date on which the Common Shares or other
securities are issued, or the date on which any applicable restrictions,
performance or deferral period lapses. Common Shares (including securities
convertible into Common Shares) and other securities granted pursuant to Other
Stock Unit Awards may be issued for no cash consideration or for such minimum
consideration as may be required by applicable law. Common Shares (including
securities convertible into Common Shares) and other securities purchased
pursuant to purchase rights granted pursuant to Other Stock Unit Awards may be
purchased for such consideration as

                                      -ix-
<PAGE>

the Committee shall determine, which price shall not be less than the fair
market value of such Common Shares or other securities on the date of grant,
unless the Committee otherwise elects.

                     ARTICLE 11 - TRANSFERABILITY OF AWARDS

         Awards and the benefits payable under this Plan shall not be
Transferable by the Participant during his or her lifetime and may not be
assigned, exchanged, pledged, transferred or otherwise encumbered or disposed of
except by a domestic relations order pursuant to Section 414(p)(1)(B) of the
Code, or by will or the laws of descent and distribution. Awards shall be
exercisable during a Participant's lifetime only as set forth in the preceding
sentence by the Participant or, if permissible under applicable law, by the
Participant's guardian or legal representative.

         Notwithstanding the above, the Committee may, with respect to
particular Awards, other than Incentive Stock Options, establish or modify the
terms of the Awards to allow the Awards to be transferred at the request of the
grantee of the Awards to trusts established by the grantee or as to which the
grantee is a grantor or to family members of the grantee or otherwise for
personal and tax planning purposes of the grantee. If the committee allows such
transfer, such Options shall not be exercisable for six months following the
action of the Committee.

                       ARTICLE 12 - TERMINATION OF AWARDS

         12.1     Termination of Awards. All Awards issued under this Plan shall
terminate as follows:

                  12.1.1   At Expiration of Term. During any period of
         continuous employment or business relationship with the Company or a
         Subsidiary, an Award will be terminated only if it is fully exercised
         or if it has expired by its terms or by the terms of this Plan. For
         these purposes, any leave of absence approved by the Company shall not
         be deemed to be a termination of employment.

                  12.1.2   Death, Disability or Retirement. If a Participant's
         employment by the Company or a Subsidiary terminates by reason of
         death, Disability or Retirement, or in the case of an advisory
         relationship, if such business relationship terminates by reason of
         death or Disability, any Award held by such Participant, unless
         otherwise determined by the Committee at grant, shall be fully vested
         and may thereafter be exercised by the Participant or by the
         Participant's beneficiary or legal representative, for a period of one
         year following termination of employment, in the case of death or
         Disability, and 90 days in the case of Retirement, or such longer
         period as the Committee may specify at or after grant in all cases
         other than Incentive Options, or until the expiration of the stated
         term of such Award, whichever period is shorter.

                  12.1.3   Termination for Cause. Awards shall terminate
         immediately if employment is terminated for cause. Cause is defined as
         including, but not limited to, theft of or intentional damage to
         Company property, the use of illegal drugs, the commission of a
         criminal act, or willful violation of Company policy prohibiting
         employees from trading Shares for personal gain based on knowledge of
         the Company's activities or results when such information is not
         available to the general public.

                  12.1.4   Employment and Noncompetition Agreements. If an
         individual holding an Award violates any term of any written employment
         or noncompetition agreement between the Company and the individual, all
         existing Awards held by such Employee will terminate.

                                      -x-
<PAGE>

                  12.1.5   Other. Except as provided above (in this Section
         12.1), or unless otherwise determined by the Committee at or after
         grant, if a Participant's employment by, or business relationship with,
         the Company or a Subsidiary terminates for any reason other than death,
         as provided above, the Award will terminate on the earlier to occur of
         the stated expiration date or 60 days after termination of the
         employment or business relationship. If a Participant dies during the
         60 day period following the termination of the employment or business
         relationship, any unexercised Award held by the Participant, or
         transferred by the Participant in accordance with Article 11, shall be
         exercisable, to the full extent that such Award was exercisable at the
         time of death, for a period of one year after the date of death of the
         Participant or until the expiration of the stated term of the Award,
         whichever occurs first.

         12.2     Acceleration of Vesting and Extension of Exercise Period Upon
Termination.

                  12.2.1   Notwithstanding anything contained in this Article
         12, upon the termination of employment of a Participant for reasons
         other than those provided in Sections 12.1.3 and 12.1.4, the Committee
         may, in its sole discretion, accelerate the vesting of all or part of
         any Awards held by such terminated Participant, or transferred by the
         Participant in accordance with Article 11, so that such Awards are
         fully or partially exercisable as of the date of termination, and may
         also extend the permitted exercise period of such Awards for up to five
         years from the date of termination, but in no event longer than the
         original expiration date of such Award.

                  12.2.2   Except as provided in Subsection 4.2, in no event
         will the continuation of the exercisability of an Award beyond the date
         of termination of employment allow the Eligible Employee, or his or her
         beneficiaries or heirs, to accrue additional rights under the Plan, or
         to purchase more Shares through the exercise of an Award than could
         have been purchased on the date that employment was terminated.

                             ARTICLE 13 - DEFERRALS

         The Committee may permit recipients of Awards to defer the distribution
of all or part of any Award in accordance with such terms and conditions as the
Committee shall establish.

                 ARTICLE 14 - TERMINATION OR AMENDMENT OF PLAN

         Notwithstanding any other provisions hereof to the contrary, the Board
may assume responsibilities otherwise assigned to the Committee and may at any
time, amend, in whole or in part, any provisions of this Plan, or suspend or
terminate it entirely; provided, however, that, unless otherwise required by
law, the rights of a Participant with respect to any Awards granted prior to
such amendment, suspension or termination may not be impaired without the
consent of such Participant. No amendment shall, without shareholder approval,
increase the number of shares available under the Plan, cause the Plan or any
Award granted under the Plan to fail to meet the conditions for exclusion of
application of the $1 million deduction limitation imposed by the Section 162(m)
of the Code or cause any Incentive Stock Option to fail to qualify as an
Incentive Stock Option as defined by Section 422 of the Code.

                        ARTICLE 15 - GENERAL PROVISIONS

         15.1     No Right to Continued Employment or Business Relationship.
Neither the establishment of the Plan nor the granting of any Award hereunder
shall confer upon any Participant any right to continue in the employ of, or in
any business relationship with, the Company or any Subsidiary, or interfere in
any way with the right of the Company or any Subsidiary to terminate such
employment or business relationship at any time.

                                      -xi-
<PAGE>

         15.2     Other Plans. The value of, or income arising from, any Awards
issued under this Plan shall not be treated as compensation for purposes of any
pension, profit sharing, life insurance, disability or other retirement or
welfare benefit plan now maintained or hereafter adopted by the Company or any
Subsidiary, unless such plan specifically provides to the contrary.

         15.3     Withholding of Taxes. The Company may deduct from any payment
to be made pursuant to this Plan, or to otherwise require, prior to the issuance
or delivery of any Shares or the payment of any cash to a Participant, payment
by the Participant of any federal, state, local or foreign taxes required by law
to be withheld. The Committee may permit any such withholding obligation to be
satisfied by reducing the number of Shares otherwise deliverable or by accepting
the delivery of previously owned Shares. Such withholding hereunder, however,
shall only be to the extent required to satisfy the minimum amount required to
be withheld by law or regulation. Any fraction of a Share required to satisfy
such tax obligations shall be disregarded and the amount due shall be paid
instead in cash by the Participant.

         15.4     Reimbursement of Taxes. The Committee may provide in its
discretion that the Company may reimburse a Participant for federal, state,
local and foreign tax obligations incurred as a result of the grant or exercise
of an Award issued under this Plan.

         15.5     Governing Law. This Plan and actions taken in connection with
it shall be governed by the laws of Michigan, without regard to the principles
of conflict of laws.

         15.6     Liability. No employee of the Company nor member of the
Committee or the Board shall be liable for any action or determination taken or
made in good faith with respect to the Plan or any Award granted hereunder and,
to the fullest extent permitted by law, all employees and members shall be
indemnified by the Company for any liability and expenses which may occur
through any claim or cause of action arising under or in connection with this
Plan or any Awards granted under this Plan.

                                     -xii-<PAGE>

                                                                    EXHIBIT 10.8

                                                                  EXECUTION COPY

                              AMENDED AND RESTATED

                            ASSET PURCHASE AGREEMENT

                                  BY AND AMONG

                       PROGRESS RAIL SERVICES CORPORATION

                                  RAILCAR, LTD.

                 PROGRESS RAIL SERVICES DE MEXICO, S.A. DE C.V.

                           3079936 NOVA SCOTIA COMPANY

                                 CAP ACQUIRE LLC

                             CAP ACQUIRE CANADA ULC

                      CAP ACQUIRE MEXICO S. DE R.L. DE C.V.

                                       AND

                               THE ANDERSONS, INC.

                                January 30, 2004

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                   Page
                                                                                                                   ----
<S>                                                                                                                <C>
ARTICLE I  DEFINITIONS...........................................................................................    1

ARTICLE II  PURCHASE AND SALE....................................................................................    9

         2.1      Purchase and Sale; Assignment and Assumption...................................................    9
         2.2      Excluded Assets................................................................................    9
         2.3      Payment and Delivery at Closing................................................................   10
         2.4      Purchase Price Adjustment......................................................................   10
         2.5      No Assumption of Retained Liabilities..........................................................   10
         2.6      Allocation of Purchase Price...................................................................   11

ARTICLE III  REPRESENTATIONS AND WARRANTIES OF SELLERS...........................................................   12

         3.1      Organization...................................................................................   12
         3.2      Authorization..................................................................................   12
         3.3      No Violation or Conflict; Consents.............................................................   13
         3.4      Financial Information..........................................................................   13
         3.5      Absence of Change..............................................................................   13
         3.6      Absence of Undisclosed Liabilities.............................................................   14
         3.7      Title Matters..................................................................................   14
         3.8      Additional Representations Relating to Conveyed Units and Assumed Contracts....................   15
         3.9      Intellectual Property..........................................................................   16
         3.10     Compliance with Law............................................................................   17
         3.11     Permits, Licenses, Certificates of Authority, etc..............................................   17
         3.12     Contracts, Agreements, etc.....................................................................   17
         3.13     Litigation.....................................................................................   18
         3.14     Employee Benefits..............................................................................   18
         3.15     Employment Matters.............................................................................   19
         3.16     Taxes..........................................................................................   19
         3.17     Environmental Matters..........................................................................   19
         3.18     AS IS..........................................................................................   20
         3.19     No Broker......................................................................................   20
         3.20     Canadian Competition Act.......................................................................   20
         3.21     Investment Canada Act..........................................................................   20
         3.22     Residual Value Guarantees......................................................................   20

ARTICLE IV  REPRESENTATIONS AND WARRANTIES OF BUYER PARTIES......................................................   20

         4.1      Organization...................................................................................   21
         4.2      Authorization..................................................................................   21
         4.3      No Violation or Conflict; Consents.............................................................   21
</TABLE>

                                      (i)

<PAGE>

<TABLE>
<S>                                                                                                                 <C>
         4.4      Litigation.....................................................................................   21
         4.5      Financial Capability...........................................................................   22
         4.6      No Broker......................................................................................   22
         4.7      [intentionally omitted]........................................................................   22
         4.8      Canadian Competition Act.......................................................................   22
         4.9      Investment Canada Act..........................................................................   22

ARTICLE V  PRE-CLOSING COVENANTS.................................................................................   22

         5.1      Conduct........................................................................................   22
         5.2      Pre-Closing Actions of Sellers.................................................................   22
         5.3      Pre-Closing Actions of Buyer Parties...........................................................   23
         5.4      Access to Information..........................................................................   23
         5.5      Further Assurances; Consents; Waiver of Notices................................................   23
         5.6      Publicity......................................................................................   24
         5.7      Confidentiality................................................................................   24
         5.8      Notices of Certain Events......................................................................   25
         5.9      Schedule Updates...............................................................................   25
         5.10     Notice of Closing Date.........................................................................   26

ARTICLE VI  CONDITIONS PRECEDENT TO CONSUMMATION OF THE CLOSING..................................................   26

         6.1      Conditions Precedent to Each Party's Obligations to Close......................................   26
         6.2      Conditions Precedent to Obligations of Buyer Parties...........................................   27
         6.3      Conditions Precedent to Obligations of Sellers.................................................   29
         6.4      Procedure for Failure to Satisfy Conditions Prior to Closing...................................   30

ARTICLE VII  POST-CLOSING AND OTHER MATTERS......................................................................   30

         7.1      Access to Records..............................................................................   30
         7.2      Tax Matters....................................................................................   30
         7.3      UMLER Designations and Restenciling............................................................   32
         7.4      Collections....................................................................................   33
         7.5      Post-Closing Records...........................................................................   33
         7.6      Further Assurances.............................................................................   33
         7.7      Additional Insured.............................................................................   33
         7.8      Corporate Existence............................................................................   33
         7.9      Notices to Lessees.............................................................................   33

ARTICLE VIII  SURVIVAL; INDEMNIFICATION..........................................................................   34

         8.1      Limitation on and Survival of Representations and Warranties...................................   34
         8.2      Indemnification by Sellers.....................................................................   34
         8.3      Indemnification by the Andersons...............................................................   35
         8.4      Procedure for Indemnification..................................................................   36
         8.5      De Minimis Exclusion; Maximum Liability........................................................   38
         8.6      Offsets........................................................................................   39
</TABLE>

                                      (ii)

<PAGE>

<TABLE>
<S>                                                                                                                 <C>
         8.7      Dispute Resolution.............................................................................   39
         8.8      Exclusive Remedies.............................................................................   40
         8.9      Guaranties and Information.....................................................................   40

ARTICLE IX  TERMINATION..........................................................................................   40

         9.1      Termination....................................................................................   41
         9.2      Effect of Termination..........................................................................   41

ARTICLE X  MISCELLANEOUS.........................................................................................   41

         10.1     Amendment......................................................................................   41
         10.2     Extension; Waiver..............................................................................   41
         10.3     Entire Agreement...............................................................................   42
         10.4     Expenses.......................................................................................   42
         10.5     Governing Law..................................................................................   42
         10.6     Assignment.....................................................................................   42
         10.7     Notices........................................................................................   42
         10.8     Counterparts; Headings.........................................................................   44
         10.9     Interpretation.................................................................................   44
         10.10    Severability...................................................................................   44
         10.11    Benefit of Agreement...........................................................................   44
         10.12    Waiver of Compliance...........................................................................   44
</TABLE>

                                      (iii)

<PAGE>

                                LIST OF EXHIBITS

Exhibit A         Andersons Bill of Sale
Exhibit B         [intentionally omitted]
Exhibit C         Bill of Sale and Assignment and Assumption Agreement
Exhibit D         Buyers Certificates
Exhibit E         [intentionally omitted]
Exhibit F         Escrow Agreement
Exhibit G         Employee Lease Agreement
Exhibit H         Non-Compete Agreement
Exhibit I         Notice and Acknowledgment
Exhibit J         Parent Guaranty
Exhibit K         Railcar Mark Usage Agreement
Exhibit L         Sellers Certificates
Exhibit M         [intentionally omitted]
Exhibit           Storage Agreement
Exhibit O         Transition Agreement
Exhibit P         Adjustment Formula

                                      (iv)

<PAGE>

                                LIST OF SCHEDULES

Schedule A                 Assumed Contracts
Schedule B                 Assumed Liabilities
Schedule C                 Conveyed Units
Schedule D                 Management Agreements
Schedule E                 Customers
Schedule F                 Permitted Liens
Schedule G                 Purchased Assets
Schedule H                 Required Consents
Schedule I                 Residual Value Guarantees
Schedule J                 Secured Financing
Schedule 2.2               Excluded Assets
Schedule 2.6               Purchase Price Allocation
Schedule 3.1               Seller's Organizational Information
Schedule 3.3               Violations or Conflicts
Schedule 3.4               Financial Statements of Sellers
Schedule 3.5               Absence of Change
Schedule 3.6               Undisclosed Liabilities
Schedule 3.7(B)            Customer Leases and Conveyed Units
Schedule 3.7(C)            Conveyed Unit Information
Schedule 3.7(F)            Assumed Contract Waivers or Defaults
Schedule 3.7(H)            Chattel Paper
Schedule 3.8(A)            Conveyed Unit UMLER Designation
Schedule 3.8(C)            Mexican Entities
Schedule 3.8(F)            Acceptance of Cars
Schedule 3.8(G)            Extended Life Determinations
Schedule 3.9               Intellectual Property
Schedule 3.10              Compliance With Law
Schedule 3.12(A)           Assumed Contracts and Contracts
Schedule 3.12(B)           Enforcement and Termination of Assumed Contracts
Schedule 3.12(C)           Non-Conveyed Units
Schedule 3.12(D)           Non-Conveyed Unit Lease Information
Schedule 3.13              Litigation
Schedule 3.14              Employee Benefits
Schedule 3.15              Employment Matters
Schedule 3.17              Environmental Matters
Schedule 3.22              Residual Value Guarantee Information
Schedule 4.6               Brokers
Schedule 7.3               LSMX Cars Retained by Sellers
Schedule 8.4(c)            Stipulated Loss Values

                                      (v)

<PAGE>

                              AMENDED AND RESTATED
                            ASSET PURCHASE AGREEMENT

         This AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (this "Agreement"),
made as of January 30, 2004, by and among PROGRESS RAIL SERVICES CORPORATION, an
Alabama corporation ("PRSC"), RAILCAR, LTD., a Georgia corporation ("Railcar"),
PROGRESS RAIL SERVICES DE MEXICO, S.A. DE C.V., a Mexico company ("Mexican
Seller"), 3079936 NOVA SCOTIA COMPANY, a Nova Scotia unlimited liability company
("Canadian Seller", and together with PRSC, Railcar and Mexican Seller, each
individually a "Seller" and collectively, "Sellers"), CAP ACQUIRE LLC, a
Delaware limited liability company ("Cap Acquire"), CAP ACQUIRE CANADA ULC, a
Nova Scotia unlimited liability company ("Canadian Buyer"), CAP ACQUIRE MEXICO
S. DE R.L. DE C.V., a Mexico limited liability association with variable capital
("Mexican Buyer", and together with Cap Acquire and Canadian Buyer, each
individually a "Buyer" and collectively, "Buyers"), and THE ANDERSONS, INC., an
Ohio corporation (as further defined below, the "Andersons" and together with
Buyers, each individually a "Buyer Party" and collectively, "Buyer Parties"),
recites and provides as follows:

                                    RECITALS

         A.       Sellers and Buyers are parties to that certain Asset Purchase
Agreement, dated as of November 6, 2003 (the "Original Agreement"), as amended
on December 12, 2003 (the "First Amendment") and further amended on December 19,
2004 (the "Second Amendment", and together with the First Amendment and the
Original Agreement, the "Asset Purchase Agreement").

         B.       Buyer Parties have informed Sellers that the Andersons will
own, indirectly, all of the equity interests in Buyers, and that, as a result of
various considerations relating to the Buyers Financing, Buyer Parties desire to
add the Andersons as a party to the Asset Purchase Agreement.

         C.       The parties hereto desire to amend and restate the Asset
Purchase Agreement in its entirety to reflect the modifications required by the
preceding Recital, and to make such other modifications to the Asset Purchase
Agreement as are hereafter set forth.

                                    AGREEMENT

         The parties, in consideration of the premises and of the mutual
representations, warranties, covenants, conditions and agreements set forth
herein, intending to be legally bound, agree as set forth below:

                                    ARTICLE I
                                   DEFINITIONS

         When used in this Agreement, each capitalized term has the meaning
specified below:

         "AAR" means the Association of American Railroads.

<PAGE>

         "Action" means any action, claim, suit, litigation, arbitration, or
governmental investigation.

         "Adjustment Formula" has the meaning given in Section 2.4.

         "Affiliate" means, as to any person or entity, any other person or
entity that, directly or indirectly through one or more intermediaries,
controls, is controlled by or is under common control with such person or
entity, whether by contract, voting equity, legal right, court order or
otherwise.

         "Agreement" means this Agreement, together with the Exhibits and
Schedules attached hereto, as the same may be amended or updated from time to
time in accordance with the terms hereof, with the understanding that disclosure
in any one Schedule shall be deemed disclosure in each other Schedule to the
extent that applicability of such disclosure to each other Schedule, as the case
may be, is clear to the non-disclosing party (as opposed to the party making the
disclosure), determined in the good faith discretion of the non-disclosing
party.

         "Andersons" has the meaning given in the preamble to this Agreement.

         "Andersons Bill of Sale" means that certain bill of sale by and among
PRSC, Railcar and the Andersons, substantially in the form attached hereto as
Exhibit A.

         "Asset Purchase Agreement" has the meaning given in the recitals to
this Agreement.

         "Assumed Contracts" means the Contracts listed on Schedule A attached
hereto.

         "Assumed Liabilities" means the liabilities and obligations set forth
on Schedule B.

         "Basket" has the meaning given in Section 8.5.

         "Bill of Sale and Assignment and Assumption Agreement" means that
certain bill of sale and assignment and assumption agreement substantially in
the form attached hereto as Exhibit C.

         "Books and Records" means original (other than as noted in the
proviso), if available, or otherwise complete and correct copies of all of the
books, records, ledgers, files, data and information of Sellers that are Related
to the Purchased Assets; provided, however, tax returns and original financial
records shall not constitute Books and Records for purposes hereof (although
copies thereof shall be delivered to Buyer Parties).

         "Buyer" or "Buyers" has the meaning given in the preamble to this
Agreement.

         "Buyer Parties" has the meaning given in the preamble to this
Agreement.

         "Buyers Certificates" means those certain certificates of Buyer Parties
substantially in the form attached hereto as Exhibit D to be delivered to
Sellers at Closing pursuant to Section 6.3(d) hereof.

                                      -2-

<PAGE>

         "Buyers Financing" means Buyers' and their assigns' securitization
financing of certain of the Purchased Assets as contemplated with MBIA Insurance
Corporation, a New York corporation.

         "Buyer Indemnified Party" has the meaning given in Section 8.2.

         "Canadian Buyer" has the meaning given in the preamble to this
Agreement.

         "Canadian Seller" has the meaning given in the preamble to this
Agreement.

         "Cap Acquire" has the meaning given in the preamble to this Agreement.

         "Closing" means the closing of the transactions contemplated by this
Agreement to be effective at 12:01 a.m., local time, on the Closing Date, at the
offices of Chapman and Cutler LLP, 111 W. Monroe St., Chicago, Illinois, 60603
or such other place as the parties hereto may mutually agree.

         "Closing Date" means the effective date of the Closing, which shall
occur as promptly as reasonably practicable after the satisfaction of the
conditions to Closing set forth in Article VI.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Confidential Information" means information, whether disclosed orally
or in writing, concerning the Discloser's business, financial condition,
operations, assets, liabilities and technology which is non-public, confidential
or proprietary in nature and all notes, analyses, compilations, studies, plans,
interpretations or other documents prepared by the Recipient which contain or
are based upon such information furnished to the Recipient by the Discloser.

         "Contract File" means Sellers' contract file for an Assumed Contract or
Non-Conveyed Unit Lease, including maintenance records, if any, related to any
applicable Conveyed Units and/or Non-Conveyed Units.

         "Contracts" means all contracts, agreements, leases, relationships and
commitments, written or oral, to which Sellers are a party or by which Sellers
are bound Related to the Purchased Assets.

         "Conveyed Unit" means those units of railroad rolling stock, including
locomotives, identified in Schedule C hereto, including without limitation and
as applicable, all related parts, supplies, machinery, apparatus, accessions,
additions, improvements, fittings and things appurtenant thereto, and other
equipment or components of any nature from time to time incorporated or
installed therein and replacements thereof and substitutions therefor.

         "Customer Leases" means the leases of the Conveyed Units set forth in
Part I of Schedule A, and which are part of the Assumed Contracts.

         "Direct Purchaser" has the meaning given in Section 10.6.

                                      -3-

<PAGE>

         "Discloser" means a party hereto providing another party hereto with
its Confidential Information.

         "Dispute" has the meaning given in Section 8.7.

         "Employee Lease Agreement" means the employee lease agreement by and
among PRSC, Railcar and the Andersons, substantially in the form attached hereto
as Exhibit G.

         "Environmental Claim" means (a) any and all administrative, regulatory
or judicial actions, suits, demand letters, claims, proceedings or notices by
any Governmental Authority or other person alleging in writing violations of or
liability under Environmental Laws, or demanding remediation of conditions
pursuant to Environmental Laws, arising out of, based on or resulting from the
presence, Release or threatened Release into the environment, of any Hazardous
Materials, or (b) circumstances forming the basis of any violation of or
liability under any Environmental Law.

         "Environmental Laws" means all statutes, common laws, rules,
regulations, orders or judgments of any applicable federal, state, local or
foreign jurisdiction as in effect on the date of this Agreement relating to
pollution or protection of human health or the environment or Release or
threatened Release of Hazardous Materials, or to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials.

         "Environmental Permits" has the meaning given in Section 3.17(b).

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

         "Escrow Agent" means Wells Fargo Bank Minnesota, National Association,
as escrow agent under the Escrow Agreement.

         "Escrow Agreement" means the escrow agreement to be entered into as of
the Closing Date among applicable Sellers, applicable Buyer Parties and the
Escrow Agent with respect to the funding by Buyer Parties and disbursement to
Sellers of HST, GST and QST, pursuant to Section 7.2(c), substantially in the
form attached hereto as Exhibit F.

         "Event of Loss" with respect to any Conveyed Unit means any of the
following events with respect to such Conveyed Unit: (i) loss of Conveyed Unit
or the loss of use of such Conveyed Unit due to destruction, damage beyond
repair, or rendition of such Conveyed Unit permanently unfit for normal use for
any reason whatsoever as determined in accordance with AAR standards or, in the
absence thereof, in Sellers' reasonable discretion; (ii) any damage to such
Conveyed Unit which results in the receipt of insurance proceeds with respect to
such Conveyed Unit on the basis of an actual, constructive or compromised total
loss; (iii) the theft or disappearance of such Conveyed Unit which results in
the loss of possession of such Conveyed Unit for a period in excess of 60 days;
(iv) title to such Conveyed Unit shall be confiscated, requisitioned or
otherwise taken by a Governmental Authority, under the power of eminent domain
or otherwise; or (v) the requisition of use by any Governmental Authority (other
than by a United States Governmental Authority or a Canadian Governmental
Authority) for a period of greater than 90 days, or by a United States
Governmental Authority or a Canadian Governmental

                                      -4-

<PAGE>

Authority for a period extending beyond the earlier of (a) the end of any
relevant Assumed Contract then in effect with respect to such Conveyed Unit, or
(b) 90 days.

         "Excluded Assets" has the meaning given in Section 2.2.

         "Financial Information" has the meaning given in Section 3.4.

         "Financing Purchaser" has the meaning given in Section 10.6.

         "First Amendment" has the meaning given in the recitals to this
Agreement.

         "FRA" means the Federal Railroad Administration.

         "GST" has the meaning given in Section 7.2(c).

         "Governmental Authority" means any federal, state, provincial,
municipal or other governmental or quasi-governmental department, commission,
board, bureau, agency or instrumentality, or any court, in each case whether of
the United States, any of its possessions or territories, or of any foreign
nation.

         "HST" has the meaning given in Section 7.2(c).

         "Hazardous Material" means (a) any petroleum or petroleum products,
radioactive materials, asbestos in any form that is or could become friable,
urea formaldehyde foam insulation, and transformers or other equipment that
contain dielectric fluid containing polychlorinated biphenyls; (b) any
chemicals, materials or substances which are now defined as or included in the
definition of "hazardous substances," "hazardous wastes," "hazardous materials,"
"extremely hazardous wastes," "restricted hazardous wastes," "toxic substances,"
"toxic pollutants," or words of similar import, under any Environmental Law; and
(c) any other chemical, material, substance or waste, exposure to which is now
prohibited, limited or regulated under any Environmental Law.

         "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976 (15 U.S.C. Section 18a), as amended.

         "Intellectual Property" has the meaning given in Section 3.9.

         "Indemnified Party" has the meaning given in Section 8.4(a)(i).

         "Indemnifying Party" has the meaning given in Section 8.4(a)(i).

         "Interchange Rules" means the Interchange Rules or supplements thereto
of the Mechanical Division of the AAR as the same may be in effect from time to
time.

         "Key Employee" means any of Frank Zisak, Lawrence Smith and George E.
Holt, III.

         "Knowledge of Sellers" means the actual knowledge of Jim Smallwood,
Jeff Edelman, Doug Creech and Rick Wolbert, after due inquiry of other officers
and senior managers of Sellers responsible for the applicable matters covered
thereby.

                                      -5-

<PAGE>

         "Law" means any law, statute, ordinance, rule, regulation, judgment,
injunction, order, decree or code adopted, enacted or promulgated by any
Governmental Authority or the requirements of any self-regulatory agency
(including, without limitation, the AAR) as all of the foregoing is in effect on
the date hereof or on the Closing Date, as the case may be.

         "License Agreement" has the meaning given in Section 5.4.

         "Liens" means any and all liens, encumbrances, mortgages, charges,
claims, restrictions, pledges, security interests and impositions of any nature
or kind (including any conditional sale or other title retention agreement, any
lease in the nature thereof, and any agreement to give any security interest).

         "Losses" has the meaning given in Section 8.2.

         "Management Agreements" means those Assumed Contracts pursuant to which
a Seller manages units of railroad rolling stock for third parties, and which
are set forth in Schedule D hereto.

         "Material Adverse Effect" means, with respect to any entity or group of
entities or assets or liabilities, (a) a material adverse effect on or change
in, or any development that, insofar as reasonably can be foreseen, is
reasonably likely to have a material adverse effect on or change in the
business, operations, assets, liabilities, financial condition or results of
operations of the applicable matter taken as a whole, other than any change,
circumstance or effect (i) relating to the economy or securities markets in
general, (ii) relating generally to the industries in which such entity or group
of entities or assets or liabilities operates and not specifically relating to
it; provided, however, that any such change, circumstance or effect shall not
disproportionately affect such entity or group of entities or assets or
liabilities, or (iii) resulting from the execution or performance of this
Agreement or the announcement thereof; or (b) a material adverse effect on the
material interests or rights of or material benefits or remedies available to
such entity or group of entities under this Agreement.

         "Maximum Indemnity Amount" has the meaning given in Section 8.5.

         "Mexican Buyer" has the meaning given in the preamble to this
Agreement.

         "Mexican Seller" has the meaning given in the preamble to this
Agreement.

         "Non-Compete Agreement" means that certain non-compete agreement
substantially in the form attached hereto as Exhibit H.

         "Non-Conveyed Unit Leases" means those subleases of Non-Conveyed Units
which are set forth in Part VI of Schedule A and those other leases of
Non-Conveyed Units set forth on Schedule 3.12(A).

         "Non-Conveyed Units" means those units of railroad rolling stock
identified in Schedule 3.12(C) attached hereto, which are managed, but not
owned, by a Seller, pursuant to the Management Agreements described on Schedule
D and those units of railroad rolling stock

                                      -6-

<PAGE>

identified in Schedule 3.12(C) attached hereto, which are the subject of those
agreements described in Parts V and VI of Schedule A attached hereto.

         "Notice and Acknowledgment" means that certain notice and
acknowledgment substantially in the form attached hereto as Exhibit I to be sent
by Sellers to each lessee identified on Schedule E.

         "Original Agreement" has the meaning given in the recitals to this
Agreement.

         "Parent Guaranty" means that certain guaranty agreement substantially
in the form attached hereto as Exhibit J.

         "Permits and Licenses" means all of the permits, licenses, certificates
of authority, authorizations, registrations and approvals, governmental or
otherwise, that are necessary for and material to the use of the Purchased
Assets.

         "Permitted Liens" means (i) Liens for current Taxes, of any kind, not
yet due and payable or that are being contested in good faith by appropriate
proceeding for which adequate reserves have been established in accordance with
United States generally acceptable accounting principles, (ii) statutory Liens
arising or incurred in the ordinary course of business by operation of Law for
which payment is not yet due and payable or that are being contested in good
faith by appropriate proceeding for which adequate reserves have been
established, that individually or in the aggregate do not materially interfere
with the present use of the property subject thereto or affected thereby, or
otherwise materially impair the use of the Purchased Assets and (iii) Liens that
are listed on Schedule F attached hereto.

         "PRSC" has the meaning given in the preamble to this Agreement.

         "PUHCA" means the Public Utility Holding Company Act of 1935, as
amended.

         "Purchased Assets" means all of the assets or properties, personal,
tangible or intangible of the respective Sellers described on Schedule G, as
well as the Assumed Contracts, together with all security deposits retained by
Sellers with respect thereto (if any), Transfer Marks, Books and Records,
Contract Files, Conveyed Units, all warranties in relation to the Conveyed Units
(if transferable and if any), in each case wherever located.

         "Purchase Option Agreement" means that certain Purchase Option
Agreement dated as of December 12, 2003 by and among PRSC, Railcar and the
Andersons.

         "Purchase Price" means cash to Sellers in the amount of $82,512,033, as
such amount may be adjusted in accordance with Section 2.4, and payable by wire
transfer in immediately available funds pursuant to the instructions described
in Section 2.3.

         "QST" has the meaning given in Section 7.2(c).

         "Railcar" has the meaning given in the preamble to this Agreement.

                                      -7-

<PAGE>

         "Railcar Mark Usage Agreement" means one or more agreements related to
Buyers', (and, if applicable, the Andersons') right to utilize Sellers' railcar
marks substantially in the form(s) attached hereto as Exhibit K.

         "Recipient" means a party hereto receiving Confidential Information of
another party hereto.

         "Related to the Purchased Assets" means integral to and used in
connection with the Purchased Assets and necessary for the operation of the
Purchased Assets in connection with a railroad car leasing business as currently
operated by Sellers.

         "Release" means any release, spill, emission, leaking, injection,
deposit, disposal, discharge, dispersal, leaching or migration into the
atmosphere, soil, surface water, groundwater or property.

         "Representatives" has the meaning given in Section 5.7(a).

         "Required Consents" means those consents to be obtained by the parties
hereto that are necessary or required in order to give effect to the
transactions contemplated herein, including but not limited to those Required
Consents of Sellers that are specifically identified on Schedule H attached
hereto.

         "Residual Value Guarantees" means the Sellers' residual value
guarantees (that is, guarantees of the minimum value of the covered equipment)
to M&T Bank (formerly AllFirst Bank which was formerly First National Bank of
Maryland) in connection with certain transactions related to Westvaco
Corporation, Canadian Pacific Railway Company and Champion International
Corporation, as set forth on Schedule I hereto, and which are part of the
Assumed Liabilities.

         "Retained Liabilities" has the meaning given in Section 2.5.

         "Running Repairs" means, with respect to a Conveyed Unit, repairs
required by a railroad such that the affected Conveyed Unit cannot travel in
interchange service without the repair having been performed.

         "Second Amendment" has the meaning given in the recitals to this
Agreement.

         "Secured Financing" means Sellers' secured credit facility and lending
arrangements with institutional lenders, as set forth on Schedule J, all of
which have been paid in full by Sellers prior to the date hereof.

         "Seller" or "Sellers" has the meaning given in the preamble to this
Agreement.

         "Sellers Certificates" means certificates of Sellers substantially in
the form attached hereto as Exhibit L to be delivered to Buyer Parties at
Closing in accordance with Section 6.2(f) hereof.

         "Seller Indemnified Party" has the meaning given in Section 8.3.

                                      -8-

<PAGE>

         "Significant Assignee" has the meaning given in Section 10.6.

         "Stipulated Loss Value" means, with respect to each Conveyed Unit, the
value assigned to such Conveyed Unit in Schedule 8.4(c).

         "Storage Agreement" means one or more agreements related to Buyers'
(and, if applicable, the Andersons') storage rights at Sellers' facilities
substantially in the form(s) attached hereto as Exhibit N.

         "Tax" or "Taxes" means any and all taxes, levies, imposts, duties,
assessments, charges and withholdings imposed or required to be collected by or
paid over to any Governmental Authority, including any interest, penalties,
fines, assessments or additions imposed with respect to the foregoing.

         "Title Representation" has the meaning given in Section 8.1(b).

         "Transfer Marks" means the following car marks: ITGX, RMGX, RMMX, KPXX
and LSMX, to be included in the Purchased Assets.

         "Transition Agreement" means that certain transition services agreement
by and among PRSC, Railcar and the Andersons, substantially in the form attached
hereto as Exhibit O.

         "UCC" means the Uniform Commercial Code.

         "UMLER" means the Universal Machine Language Equipment Register
maintained by the AAR.

         "UMLER Designation" has the meaning given in Section 3.7(c).

         "UPE" has the meaning given in Section 4.7.

                                   ARTICLE II
                                PURCHASE AND SALE

         2.1      Purchase and Sale; Assignment and Assumption. At the Closing,
and upon all of the terms and subject to all of the conditions of this
Agreement, Sellers shall sell, transfer, assign, convey and deliver, and Buyer
Parties shall purchase, all of the Purchased Assets, free and clear of all Liens
other than Permitted Liens, and Buyer Parties shall pay the Purchase Price and
assume the Assumed Liabilities.

         2.2      Excluded Assets. Notwithstanding anything contained herein to
the contrary, all of Sellers' respective rights, title and interest in and to
all of the following properties, assets and rights (the "Excluded Assets") shall
be excluded from the Purchased Assets and shall not be sold, transferred,
assigned, conveyed or delivered to Buyer Parties at the Closing:

                  (a)      properties, assets and rights set forth on Schedule
2.2; and

                                      -9-

<PAGE>

                  (b)      any other properties, assets and rights that are not
specifically identified as Purchased Assets hereunder.

         2.3      Payment and Delivery at Closing. At the Closing, and upon all
of the terms and subject to all of the conditions of this Agreement, in
consideration of Sellers' sale, transfer, assignment, conveyance and delivery of
their respective rights, title and interest in and to the Purchased Assets to
Buyer Parties, Buyer Parties shall (i) assume the Assumed Liabilities and agree
to pay, perform and discharge the same and (ii) pay to Sellers the Purchase
Price, in accordance with the wire transfer instructions submitted to Buyer
Parties in writing by Sellers at least two (2) business days before Closing.

         2.4      Purchase Price Adjustment. Each of the parties hereto
acknowledges and agrees that in the ordinary course of business, certain of the
railcars or locomotives included as part of the Purchased Assets may be sold by
a Seller to a third party or may be materially damaged or completely destroyed
as a result of third party negligence or otherwise. In addition, in the ordinary
course of business, the Sellers may acquire additional railcars or locomotives
that, by operation of the terms of this Agreement, will be included as part of
the Purchased Assets. As a result, one business day prior to the Closing Date,
Sellers shall provide Buyer Parties with an updated Schedule 3.7(C) identifying
(i) any railcars or locomotives that have been sold or suffered material damage
or destruction that will be excluded from the Purchased Assets, and (ii) any
additional railcars or locomotives acquired by Sellers in the ordinary course of
business that will be included as part of the Purchased Assets, in each case
since delivery of the immediately preceding Schedule 3.7(C). Upon delivery of
the updated Schedule to Buyer Parties in accordance with the preceding sentence
(and completion of Buyer Parties' review thereof to the extent practicable), the
Purchase Price payable at Closing shall be adjusted to reflect such additions
and deletions in the composition and quantity of the Purchased Assets in
accordance with the formula (the "Adjustment Formula") set forth on Exhibit P.
Within ten (10) business days following the Closing, Sellers shall deliver to
Buyer Parties a final updated Schedule 3.7(C) as of the Closing Date. Rather
than the Adjustment Formula, the Stipulated Loss Value for each affected railcar
or locomotive shall be applied to such final updated Schedule 3.7(C), and, to
the extent of any change in such Schedule that is undisputed by the parties
hereto, within ten (10) business days after delivery to Buyer Parties of such
Schedule, if such change results in a decrease of the Purchase Price, Sellers
shall pay to Buyer Parties the amount by which the Purchase Price has decreased,
and if such change results in an increase of the Purchase Price, Buyer Parties
shall pay the amount by which the Purchase Price has increased. Resolution of
disputed items in such updated Schedule shall be addressed pursuant to the
provisions of Article VIII hereof.

         2.5      No Assumption of Retained Liabilities. Buyer Parties do not
and will not assume or be obligated for any liability or obligation of any
Seller, whether absolute or contingent, accrued or unaccrued, asserted or
unasserted, known or unknown, whether disclosed pursuant to this Agreement or
otherwise, not expressly assumed by Buyer Parties as an Assumed Liability (all
of such obligations and liabilities not being assumed herein called the
"Retained Liabilities"). All of the Retained Liabilities shall remain the sole
responsibility of Sellers and Sellers shall pay and satisfy such Retained
Liabilities when due in accordance with their terms to the extent that failure
thereof would create any liability, damage, harm or obligation on the part of
Buyer

                                      -10-

<PAGE>

Parties. Notwithstanding anything to the contrary elsewhere in this Agreement,
the following shall be (without limitation) Retained Liabilities:

                  (a)      Except as otherwise provided in Section 7.2, any
liability of Sellers for Taxes accruing or arising from the ownership of the
Purchased Assets on or before Closing;

                  (b)      Except for the Residual Value Guarantees and any
other Assumed Liability, any obligations of any Seller under any Assumed
Contract accruing or arising on or before the Closing;

                  (c)      Any liabilities under any Environmental Laws related
to the Purchased Assets accruing or arising on or before the Closing;

                  (d)      Any liabilities and obligations in respect of Actions
related to the Purchased Assets and accruing and arising on or before the
Closing, whether or not described on any Schedule to this Agreement, including
without limitation Actions described on Schedule 3.13;

                  (e)      Any liability of Sellers for any breach or failure to
perform any of Sellers' covenants and agreements contained in, or made pursuant
to, this Agreement, or, any liability of Sellers accruing or arising on or
before Closing for any breach or failure to perform any of Sellers' covenants
and agreements contained in any Contract, whether or not assumed hereunder,
including breach arising from assignment of Contracts hereunder without consent
of third parties;

                  (f)      Any liability of Sellers or their Affiliates for any
violation of or failure to comply with any Law of any Governmental Authority
related to the Purchased Assets and accruing or arising on or before the
Closing;

                  (g)      Any obligation to a third party to pay or return any
rental payments or other revenue earned or purportedly earned or other amounts
owing, including per diem revenues or amounts, accruing or arising in connection
with the operation of the Purchased Assets on or before the Closing;

                  (h)      Any liability relating to Excluded Assets;

                  (i)      With respect to any and all Conveyed Units, any
liability for the costs of Running Repairs that have been completed but not
billed or paid, that are in process or, with respect to Conveyed Units in shop,
that have not yet commenced; but only, in each case, to the extent such repairs
are completed and billed within thirty (30) days after Closing; and

                  (j)      Any other liability or obligation of any kind or
nature of Sellers whatsoever unless expressly assumed by Buyer Parties as an
Assumed Liability.

         2.6      Allocation of Purchase Price. The Purchase Price and the
amount of the Assumed Liabilities (to the extent they constitute part of the
amount realized by any Seller for income tax purposes) shall be allocated among
Sellers and among the Purchased Assets sold by each Seller in accordance with
Schedule 2.6, which Schedule shall identify each Purchased Asset located in

                                      -11-

<PAGE>

the United States, Canada (by province) and Mexico, respectively, and shall be
prepared and agreed to before the Closing Date. The allocations on Schedule 2.6
are to comply with the allocation method required by Section 1060 of the Code,
and the parties shall cooperate to comply with all procedural requirements of
Section 1060 and the regulations thereunder. Each party agrees that it will not
take, nor will it permit any affiliated person to take (including Affiliates),
for income tax purposes, any position inconsistent with the allocations on
Schedule 2.6; provided, however, that Buyer Parties' cost for the Purchased
Assets may differ from the total amount allocated on Schedule 2.6 to reflect
Buyer Parties' capitalized acquisition costs not included in the total amount so
allocated, and Sellers' amounts realized for the Purchased Assets may differ
from the total amount so allocated in order to reflect Sellers' transaction
costs that reduce the amounts realized for income tax purposes.

                                  ARTICLE III
                    REPRESENTATIONS AND WARRANTIES OF SELLERS

         Sellers, jointly and severally, hereby represent and warrant to Buyer
Parties that:

         3.1      Organization. Each Seller is duly organized, validly existing
and in good standing under the Laws of its respective jurisdiction of
incorporation or organization as set forth in the preamble to this Agreement
(which is its only place of incorporation or organization) and has full
corporate or other power and authority to own, operate and lease the Purchased
Assets that are owned, operated or leased by such Seller, as the case may be.
Each Seller is duly qualified to do business as a foreign corporation or
business entity and is in good standing in each jurisdiction in which such
qualification is necessary under applicable Law as a result of its respective
ownership, operation and leasing of the Purchased Assets, as the case may be.
The chief place of business and chief executive office of each Seller are
located at the address of such Seller set forth as such in Schedule 3.1. The
exact legal name of each Seller is set forth on the signature page hereto and
each Seller's organizational identification number, if any, is listed on
Schedule 3.1. Except as set forth in Schedule 3.1, none of the Sellers has
changed its name, changed its corporate structure, changed its jurisdiction of
organization, changed its chief place of business/chief executive office or, to
the Knowledge of Sellers, used any name other than its exact legal name at any
time during the past five years. Each Seller has delivered to Buyer Parties
true, correct and complete copies of its articles of incorporation and bylaws,
or other governing instruments, as the case may be.

         3.2      Authorization. Each Seller has all necessary right, power,
capacity and authority to execute and deliver this Agreement, to consummate the
transactions contemplated hereby and to perform its obligations hereunder, and
no other actions on the part of any Seller are necessary to authorize the
execution, delivery and performance of this Agreement or the consummation of the
transactions contemplated hereby. This Agreement has been duly executed and
delivered by each Seller and is a valid and binding obligation of each Seller,
enforceable against each Seller in accordance with its terms (except to the
extent that enforcement may be affected by applicable bankruptcy,
reorganization, insolvency and other Laws affecting creditors' rights and
remedies generally and by general principles of equity, regardless of whether
enforcement is sought at law or in equity).

                                      -12-

<PAGE>

         3.3      No Violation or Conflict; Consents. Except as set forth on
Schedule 3.3, the execution, delivery and performance of this Agreement and all
of the other documents and instruments contemplated hereby to which each Seller
is a party and the consummation of the transactions contemplated thereby do not
and will not (a) conflict with, violate or breach any Laws, judgment, order or
decree binding on such Seller, the articles of incorporation or bylaws or other
governing instruments, as the case may be, of such Seller, or any Assumed
Contract or Non-Conveyed Unit Lease to which such Seller is a party or by which
such Seller is bound, or (b) give any other party to any Assumed Contract or
Non-Conveyed Unit Lease any right of termination, cancellation, acceleration or
modification thereunder. Except for (i) the Required Consents and (ii) such
filings and consents as may be required pursuant to PUHCA and the HSR Act, as
the case may be and if any, prior to the Closing, no consent of any other
person, and no notice to, filing or registration with, or authorization, consent
or approval of, any Governmental Authority is necessary or is required to be
made or obtained by a Seller in connection with the execution and delivery of
this Agreement, the consummation of the transactions contemplated hereby or the
performance by each Seller of its obligations hereunder.

         3.4      Financial Information. Railcar and PRSC have furnished Buyer
Parties with financial information containing historical results of operations
and statements of assets and liabilities related to Railcar for the fiscal year
ending November 30, 2002 and for the nine (9) month period ending August 31,
2003, and to PRSC for the fiscal year ending December 31, 2002 and for the nine
(9) month period ending September 30, 2003, copies of which are set forth on
Schedule 3.4 hereto (the "Financial Information"). The Financial Information was
prepared in accordance with United States generally accepted accounting
principles, consistently applied, except as otherwise noted therein or set forth
on Schedule 3.4 attached hereto. Subject to the qualifications, assumptions and
other limitations specified in the Financial Information and any notes thereto,
the Financial Information fairly present in all material respects the results of
operations and financial position of Railcar and PRSC for the periods set forth
therein on a basis consistently applied with prior accounting periods.

         3.5      Absence of Change. Except as set forth on Schedule 3.5, as
contemplated by this Agreement or in connection with the payoff of the Secured
Financing, since February 28, 2003, (a) Sellers have operated the Purchased
Assets in the ordinary course of business, consistent with past practice, and
there has not been any event, occurrence or development which constitutes or, to
the Knowledge of Sellers, could reasonably be expected to have or result in a
Material Adverse Effect on the Purchased Assets, Assumed Liabilities, Buyer
Parties or on any Seller's ability to consummate the transactions contemplated
hereby or perform its obligations hereunder, (b) there has been no material
change in Sellers' employment relationships with any of the Key Employees other
than by reason of such Key Employees' death or disability, (c) no Seller has
made any material capital commitment or expenditure, or incurred or become
liable for any material debt or other material obligation or liability (except
for expenditures incurred in the ordinary course of business) or entered into
any guarantee or material agreement for the production or manufacture of goods
or equipment or the providing of services, other than such commitments or
expenditures that are incurred in the ordinary course of business, (d) other
than in the ordinary course of business, there has been no damage, destruction
or other casualty loss (whether or not covered by insurance) materially and
adversely affecting the Purchased Assets or that would materially and adversely
affect the Assumed Liabilities, (e) there has been no change in any method of
accounting or accounting practices by any Seller, and (f) there has been no

                                      -13-

<PAGE>

transaction or commitment made, nor any contract or agreement entered into,
relating to the Purchased Assets or any relinquishment of any contract or other
right material to the Purchased Assets or the Assumed Liabilities, other than
transactions or commitments (i) in the ordinary course of business and in
compliance with applicable Law, in all material respects, or (ii) expressly
contemplated by this Agreement or the Assumed Contracts.

         3.6      Absence of Undisclosed Liabilities. Except as and to the
extent expressly disclosed in the Financial Information or in Schedule 3.6,
Sellers do not have any liabilities required to be reflected on a balance sheet
or otherwise required to be disclosed in connection with a balance sheet in
accordance with generally accepted accounting principles other than commercial
liabilities and obligations incurred since August 31, 2003 in the ordinary and
normal course of business and consistent with past practice and none of which
has or will have a Material Adverse Effect on the Purchased Assets, the Assumed
Liabilities or Buyer Parties.

         3.7      Title Matters.

                  (a)      Other than Permitted Liens, each Seller has or will
have prior to the Closing and will convey to and vest the applicable Buyer
Parties with good and marketable title to, or a valid leasehold interest in, all
of the Purchased Assets owned or leased by such Seller, whether tangible or
intangible, personal or mixed, free and clear of all Liens.

                  (b)      Each Customer Lease is for the Conveyed Unit or Units
identified therein, as set forth on Schedule 3.7(B) hereto. Schedule 3.7(B)
contains a true, correct and complete list and description as of January 15,
2004 of all Customer Leases, including name of lessee, deal number (if
applicable), type of lease (full service, modified, triple net, etc.), base
lease rate (if applicable), number of lease payments remaining (if applicable
and as of the date indicated therein), final payment due date under lease (if
applicable), number of cars under lease and commencement date of lease.

                  (c)      Schedule 3.7(C) hereto sets forth a true, correct and
complete list as of January 15, 2004 of all Conveyed Units included in the
Purchased Assets, including, as to each Conveyed Unit, the month and year built
(and, if applicable, rebuilt), car type (by AAR equipment code), car mark and
number assigned to such Conveyed Unit in UMLER ("UMLER Designation"), volume
capacity (if known and if applicable), as expressed in cubic feet if a railcar,
or in horsepower if a locomotive, total (gross) weight on rail, the AAR
determination of extended life (if applicable), whether such Conveyed Unit is
subject to a Customer Lease (and, if so, the deal number), name of car owner,
whether such Conveyed Unit is primarily leased to a customer domiciled in Canada
or in Mexico and, if applicable, storage location (including description, city
and state).

                  (d)      Since February 28, 2003, Sellers have not received
any notice of the occurrence of any Event of Loss, or any event, which with the
passage of time would constitute an Event of Loss, with respect to any Conveyed
Unit, and, as of the Closing Date no Event of Loss will have occurred with
respect to any Conveyed Unit.

                  (e)      Each Customer Lease (i) to the Knowledge of Sellers,
constitutes the legal, valid and binding obligation of the lessee thereunder,
(ii) has not been satisfied other than

                                      -14-

<PAGE>

in the ordinary course, subordinated by Sellers, or rescinded, (iii) to the
Knowledge of Sellers, remains in full force and effect and (iv) to the Knowledge
of Sellers, is enforceable against such lessee in accordance with its terms
(except to the extent that enforcement may be affected by applicable bankruptcy,
reorganization, insolvency and other Laws affecting creditors' rights and
remedies generally and by general principles of equity, regardless of whether
enforcement is sought at law or in equity).

                  (f)      Except as set forth in Schedule 3.7(F), (i) to the
Knowledge of Sellers, no lessee under any Customer Lease is currently in
bankruptcy under the bankruptcy laws of the United States, Canada or Mexico, as
applicable; (ii) no provision of any Assumed Contract has been waived, amended,
or modified in any material respect, except by instruments or documents copies
of which have been delivered to Buyer Parties and reflected on Schedule 3.7(F)
and, in any event, no Assumed Contract has been waived, amended or modified
since its origination to cure a payment default or delinquency, (iii) no
delinquency or default by the lessee under any Customer Lease has occurred which
has been waived by any Seller and (iv) to the Knowledge of Sellers, the lessee
is in compliance with the terms of such Customer Lease in all material respects.

                  (g)      No Action is pending or, to the Knowledge of Sellers,
has been threatened asserting the invalidity of any Assumed Contract, or seeking
any determination or ruling that might adversely and materially affect the
validity or enforceability of any Assumed Contract.

                  (h)      Sellers have not assigned, pledged or hypothecated
any of the Assumed Contracts that constitute "chattel paper" for purposes of
Article 9 of the UCC other than in connection with the Secured Financing, all of
which assignments, pledges and hypothecations shall be released at or prior to
Closing. Except as set forth on Schedule 3.7(H), Sellers have, or prior to
Closing will have, in each Contract File an original executed copy of each
Customer Lease.

                  (i)      Notwithstanding any other provision in this
Agreement, no Assumed Contract has been originated in or is subject to the laws
of any jurisdiction whose laws would make the assignment and transfer thereof
pursuant to the terms hereof (or any subsequent assignment by Buyer Parties)
unlawful (except that with respect to Assumed Contracts acquired by Sellers
after origination thereof, the immediately preceding clause is limited to the
Knowledge of Sellers).

         3.8      Additional Representations Relating to Conveyed Units and
Assumed Contracts. As to the Conveyed Units and the Assumed Contracts:

                  (a)      To the Knowledge of Sellers, each Conveyed Unit is
marked with the UMLER Designation as noted on Schedule 3.8(A). Schedule 3.8(A)
further sets forth whether each Conveyed Unit is leased out pursuant to a
Customer Lease.

                  (b)      All applicable Laws in respect of each Assumed
Contract have been complied with by the Sellers and, to the Knowledge of
Sellers, by the lessees, in all material respects and each Assumed Contract
complies with all applicable Laws of the jurisdiction in which it was originated
in all material respects (except that with respect to Assumed Contracts

                                      -15-

<PAGE>

acquired by Sellers after origination thereof, the immediately preceding clause
is limited to the Knowledge of Sellers).

                  (c)      The lessee under each Customer Lease is (i) a United
States or Canadian governmental agency, or (ii) a United States or Canadian
common carrier by railroad engaged in the transportation of individuals or
property or owner of trackage facilities leased by such common carrier, or (iii)
a United States or Canadian corporation (provincial or federal), limited
partnership, limited liability company or other entity or (iv) a Mexican entity
listed on Schedule 3.8(C).

                  (d)      To the Knowledge of Sellers, any guarantees on behalf
of an applicable lessee required at the time of origination of an Assumed
Contract remain in full force and effect.

                  (e)      The Assumed Contracts were originated, acquired or
purchased by Sellers in the ordinary course of business. The origination,
acquisition and collection practices used by Sellers with respect to each
Assumed Contract have been legal in all material respects.

                  (f)      Except as set forth on Schedule 3.8(F), each lessee
under a Customer Lease has accepted the related Conveyed Unit or Units and after
reasonable opportunity to inspect and test, has not notified Sellers of any
defects therein.

                  (g)      Sellers have identified on Schedule 3.7(C) those
Conveyed Units having an extended life determined by AAR as a result of being
refurbished, modified or substantially rebuilt, and except as set forth on
Schedule 3.8(G), Sellers have in their Contract Files, and have filed, the
proper documentation with AAR to qualify such Conveyed Units for such extended
life along with updating UMLER records.

                  (h)      No Seller has received any correspondence from AAR or
FRA regarding any general or specific recalls for the Conveyed Units or any
required modifications, nor, to the Knowledge of Sellers, does there exist any
such general or specific recalls for any Conveyed Unit or any required
modifications.

                  (i)      The Purchased Assets are suitable for the uses for
which they are presently held by each such Seller. Except for the restrictions
requiring the Required Consents, none of the Purchased Assets is subject to any
restrictions with respect to the transferability thereof.

                  (j)      Each Assumed Contract provides for payment in United
States Dollars.

                  (k)      All Conveyed Units are located solely in the United
States, Canada or Mexico.

         3.9      Intellectual Property. Schedule 3.9 attached hereto, other
than as noted therein, contains a list of the material intellectual property
used by Sellers, other than intellectual property that is commercially
available, that is owned by or licensed to each Seller, and that is Related to
the Purchased Assets (the "Intellectual Property").

                                      -16-

<PAGE>

         3.10     Compliance with Law. Except as set forth on Schedule 3.10
attached hereto, the Purchased Assets have been operated by Sellers in
compliance with, and have been conducted in conformity to, all applicable Laws,
in each case in all material respects.

         3.11     Permits, Licenses, Certificates of Authority, etc. No Permits
and Licenses are used or are required by Law in connection with the Purchased
Assets as such Purchased Assets have been and are presently operated by Sellers.

         3.12     Contracts, Agreements, etc.

                  (a)      Schedule 3.12(A) attached hereto contains a correct
and complete list identifying each of the Assumed Contracts and each other
Contract. Sellers have provided Buyer Parties with true and complete copies of
all such Contracts, including all amendments, modifications, waivers and
elections applicable thereto.

                  (b)      Except as set forth on Schedule 3.12(B), as to each
Seller, each of the Assumed Contracts is a valid and binding obligation of each
applicable Seller, is in full force and effect and is enforceable in accordance
with its respective terms (subject to any applicable bankruptcy, insolvency,
reorganization, moratorium or other Laws affecting generally the enforcement of
creditors' rights and subject to general principles of equity, regardless of
whether enforcement is sought at law or in equity, and are in full force and
effect). Except as set forth on Schedule 3.12(B), there is not under any such
Assumed Contract, any existing material breach or material default (or event or
condition, which after notice or lapse of time, or both, would constitute a
material breach or material default) by the applicable Seller with respect
thereto. Each applicable Seller has performed, and to the Knowledge of Sellers,
every other party has performed, in each case, in all material respects, each
term, covenant and condition of each of the Assumed Contracts that is to be
performed at or before the date hereof. Except as set forth on Schedule 3.12(B),
none of the Assumed Contracts or Non-Conveyed Unit Leases provides the other
party thereto with a right to terminate or materially change the terms of such
Assumed Contract or Non-Conveyed Unit Lease in the event of the assignment of
such Assumed Contract or Non-Conveyed Unit Lease as contemplated in this
Agreement, and to the Knowledge of Sellers, no party to an Assumed Contract or
Non-Conveyed Unit Lease has plans to attempt to terminate, fail to perform or
alter any Assumed Contract or Non-Conveyed Unit Lease (in each case, in any
material respect) as a result of the transactions contemplated by this Agreement
or otherwise. To the Knowledge of Sellers, no event has occurred that would,
with the passage of time or compliance with any applicable notice requirements
or both, constitute a material default by any applicable Seller or, to the
Knowledge of Sellers, any other party under any of the Assumed Contracts or
Non-Conveyed Unit Leases and, to the Knowledge of Sellers, no party to any of
the Assumed Contracts or Non-Conveyed Unit Leases intends or has a reasonable
basis other than in the ordinary course of business upon which to cancel or
terminate any of the Assumed Contracts or Non-Conveyed Unit Leases.

                  (c)      Schedule 3.12(C) attached hereto contains a true,
correct and complete list as of January 15, 2004 of all Non-Conveyed Units,
including, as to each Non-Conveyed Unit, to the Knowledge of Sellers, the car
mark and number, the deal number, the owner of such Non-Conveyed Unit and the
year built.

                                      -17-

<PAGE>

                  (d)      Schedule 3.12(D) attached hereto contains a true,
correct and complete list and description as of January 15, 2004 of all
Non-Conveyed Unit Leases, including name of lessee, deal number (if applicable),
type of lease (full service, modified, triple net, etc.), base lease rate (if
applicable), number of lease payments remaining (if applicable and as of the
date indicated therein), final payment due date under lease (if applicable),
number of cars under lease and commencement date of lease.

         3.13     Litigation. Schedule 3.13 contains a complete list and
description of all Actions against Sellers related to the Purchased Assets for
which Sellers have identified the existence thereof to their insurance carriers
since January 1, 2000. Schedule 3.13 also contains a complete list and
description of all Actions related to the Purchased Assets that, to the
Knowledge of Sellers, are threatened or contemplated, or that are pending and
that have not been identified to Sellers' insurance carriers. Sellers have made
available to Buyer Parties access to Sellers' unprivileged files with respect to
each such Action.

         3.14     Employee Benefits. With respect to employees that primarily
work in connection with the Purchased Assets:

                  (a)      Except as set forth on Schedule 3.14, with respect to
current or former employees of Sellers, Sellers do not maintain, participate in
or contribute to any (i) deferred compensation or retirement plans or
arrangements, (ii) tax-qualified or nonqualified defined contribution or defined
benefit plans or arrangements which are employee pension benefit plans (as
defined in Section 3(2) of ERISA), (iii) employee welfare benefit plans (as
defined in Section 3(1) of ERISA), (iv) phantom stock appreciation right, stock
option, stock purchase or other stock based plans, or (v) any fringe benefit
plans or programs. Sellers do not maintain or contribute to any employee welfare
benefit plan that provides health, accident or life insurance benefits to former
employees, their spouses or dependents, other than in accordance with Section
4980B of the Code or Part 6 of Subtitle B of Title I of ERISA or other
applicable law.

                  (b)      Each employee pension benefit plan which is intended
to be a "qualified plan" has received an opinion letter from the Internal
Revenue Service as to the qualification under the Code of such plan.

                  (c)      With respect to each of the plans listed on Schedule
3.14, Sellers have made available to Buyer Parties true and complete copies of
(i) the plan documents, summary plan descriptions and summaries of material
modifications and other material employee communications about such plan, (ii)
the opinion letter received from the Internal Revenue Service, (iii) the Form
5500 Annual Report (including all schedules and other attachments for the most
recent plan year, (iv) all related trust agreements, insurance contracts or
other funding agreements which implement such plans and (v) all contracts
relating to each such plan, including, without limitation, service provider
agreements, insurance contracts, investment management agreements and record
keeping agreements.

                  (d)      All contributions and other payments required to have
been made by Sellers with respect to any plan described on Schedule 3.14 have
been or will be made when due.

                                      -18-

<PAGE>

                  (e)      To the Knowledge of Sellers, no plan described on
Schedule 3.14 is subject to any ongoing audit, investigation or other
administrative proceeding of any Governmental Authority nor has any Action been
commenced against any such plan (other than for benefits in the ordinary
course), in which the adverse result thereof would result in a Material Adverse
Effect on the Purchased Assets or on Buyer Parties after the Closing.

         3.15     Employment Matters. Except as set forth on Schedule 3.15, no
Seller is party to, bound by, or negotiating in respect of any collective
bargaining agreement or any other agreement with any labor union, association or
other employee group in connection with its railcar leasing business, nor, to
the Knowledge of Sellers, is any employee that primarily works in connection
with its railcar leasing business represented by any labor union or similar
association. Except as set forth on Schedule 3.15, no labor union or employee
organization has been certified or recognized as the collective bargaining
representative of any employee of Sellers that primarily works in connection
with its railcar leasing business. Except as set forth on Schedule 3.15, to the
Knowledge of Sellers, there are no formal union organizing campaigns or
representation proceedings in process or formally threatened with respect to any
employee of Sellers that primarily work in connection with its railcar leasing
business, nor are there any existing or, to the Knowledge of Sellers, threatened
at large labor strikes, work stoppages, organized slowdowns, unfair labor
practice charges, or labor arbitration proceedings affecting employees of
Sellers that primarily work in connection with its railcar leasing business.

         3.16     Taxes. Each Seller has filed all material Tax returns it is
required to have filed that relates to any of the Purchased Assets. There are no
unpaid Taxes, due and payable by any Seller, the non-payment of which is or
could become a Lien upon, or otherwise could adversely affect, any of the
Purchased Assets or the use thereof or could cause Buyer Parties to incur any
liability. The preceding representations and warranties are made only to the
Knowledge of Sellers with respect to any Taxes or Tax returns that are the
responsibility of any lessee or other user of any of the Purchased Assets
pursuant to the terms of any of the Assumed Contracts.

         3.17     Environmental Matters. Except as set forth on Schedule 3.17:

                  (a)      Each Seller is in compliance with all applicable
Environmental Laws related to the Purchased Assets. Except for matters that have
been fully resolved, no Seller has received any written communication from any
person or Governmental Authority that alleges that its operations in connection
with the Purchased Assets are not in compliance with applicable Environmental
Laws.

                  (b)      Each Seller has obtained all environmental, health
and safety permits and governmental authorizations (collectively, the
"Environmental Permits") necessary for the conduct of its railcar leasing
business, and all such permits are in good standing or, where applicable, a
renewal application has been timely filed and is pending agency approval, and
each Seller is in compliance with all terms and conditions of the Environmental
Permits.

                  (c)      There is no Environmental Claim pending or, to the
Knowledge of Sellers, threatened against or concerning the Purchased Assets.

                                      -19-

<PAGE>

                  (d)      No Release of any Hazardous Material has occurred on
or from any of the Purchased Assets, which requires investigation, assessment,
monitoring, remediation or cleanup under Environmental Laws.

                  (e)      There are no acts or omissions on the part of Sellers
relating to the Purchased Assets that could form the basis for liability or
potential liability under Environmental Laws.

         3.18     AS IS. The Conveyed Units comprising the Purchased Assets are
being sold, transferred, assigned, conveyed and delivered hereunder, as the case
may be, "AS IS, WHERE IS, WITH ALL FAULTS" without any representation or
warranty by Sellers or any other person other than the express representations
and warranties made by Sellers in this Article III.

         3.19     No Broker. No Seller (i) has had any dealings, negotiations or
communications with (other than with intermediaries engaged by potential
purchasers of the Purchased Assets) or retained any broker or other intermediary
in connection with the transactions contemplated by this Agreement or (ii) is
committed to any liability for any brokers' or finders' fees or any similar fees
in connection with the transactions contemplated by this Agreement.

         3.20     Canadian Competition Act. Assuming the Closing Date is the
date hereof (which assumption does not apply for purposes of Section 6.2(a)),
Sellers together with their affiliates (as defined in the Canadian Competition
Act) do not have assets in Canada that exceed $200 million Cdn. or annual gross
revenues from sales in, from and into Canada which exceed $250 million Cdn., in
each case as determined pursuant to section 109 of the Canadian Competition Act
and the regulations thereto.

         3.21     Investment Canada Act. The value of the Purchased Assets
located in Canada, calculated in the manner prescribed by the Investment Canada
Act, is less than $237 million Cdn., none of the Sellers of the Purchased Assets
in Canada is a financial institution (as such term is defined in the Bank Act
(Canada)) and the Sellers' respective railcar leasing businesses in Canada
utilizing the Purchased Assets do not engage in the carriage of passengers or
goods from one place to another by any means (which, for greater certainty, does
not include leasing an asset to a person that engages in the carriage of
passengers or goods from one place to another).

         3.22     Residual Value Guarantees. Schedule 3.22 attached hereto sets
forth, with respect to each Residual Value Guarantee, a true, correct and
complete list of all railroad cars as set forth in the related Assumed Contract
on the date of such Assumed Contract subject to such Residual Value Guarantee,
including, as to each such car, to the Knowledge of Sellers, the UMLER
Designation (mark and number), the customer name, the deal number, the number of
cars subject to each Residual Value Guarantee, the commencement and termination
dates of each underlying Contract, the guaranteed residual amount for each car,
purchase option (if any) and loss limit (if any).

                                   ARTICLE IV
                 REPRESENTATIONS AND WARRANTIES OF BUYER PARTIES

         Buyer Parties hereby represent and warrant to Sellers:

                                      -20-

<PAGE>

         4.1      Organization. Each Buyer Party is duly organized, validly
existing and in good standing under the Laws of its respective jurisdiction of
incorporation or organization as set forth in the preamble to this Agreement
(which is the only place of incorporation or organization) and has full
corporate or limited liability company power and authority to conduct its
respective business as it is presently being conducted and to own and lease its
respective properties and assets. Each Buyer Party is duly qualified to do
business as a foreign corporation, limited liability company or business entity
and is in good standing in each jurisdiction in which such qualification is
necessary under applicable Law as a result of the conduct of its respective
business or ownership and leasing of its respective properties and assets, as
the case may be. Each Buyer Party has delivered to Sellers true, correct and
complete copies of its certificate of incorporation, articles of organization
and limited liability company agreement, or other governing instruments, as the
case may be.

         4.2      Authorization. Each Buyer Party has all necessary right,
power, capacity and authority to execute and deliver this Agreement, to
consummate the transactions contemplated hereby and to perform its obligations
hereunder, and no other actions on the part of any Buyer Party or any Direct
Purchaser is necessary to authorize the execution, delivery and performance of
this Agreement or the consummation of the transactions contemplated hereby. This
Agreement has been duly executed and delivered by each Buyer Party and is a
valid and binding obligation of each Buyer Party, enforceable against each Buyer
Party in accordance with its terms (except to the extent that enforcement may be
affected by applicable bankruptcy, reorganization, insolvency and other Laws
affecting creditors' rights and remedies generally and by general principles of
equity, regardless of whether enforcement is sought at law or in equity).

         4.3      No Violation or Conflict; Consents. The execution, delivery
and performance of this Agreement and all of the other documents and instruments
contemplated hereby to which each Buyer Party is a party do not and will not (a)
conflict with, violate or breach any Laws, judgment, order or decree binding on
any Buyer Party or on any Direct Purchaser, its respective articles of
incorporation, bylaws or other governing instruments, as the case may be, of
such Buyer Party, or any material contract to which it is a party or by which it
is bound, or (b) give any other party to any material contract to which any
Buyer Party or any Direct Purchaser is a party or by which it is bound any right
of termination, cancellation, acceleration or modification thereunder. Except
for (i) the Required Consents and (ii) such filings and consents as may be
required pursuant to federal securities laws and the HSR Act, as the case may be
and if any, prior to the Closing, no consent of any other person, and no notice
to, filing or registration with, or authorization, consent or approval of, any
Governmental Authority is necessary or is required to be made or obtained by any
Buyer Party or any Direct Purchaser in connection with the execution, delivery
or performance of this Agreement by any Buyer Party or the consummation of the
transactions contemplated hereby.

         4.4      Litigation. There is no Action now pending or in effect, or,
to the knowledge of Buyer Parties, threatened or contemplated, that, in the
reasonable judgment of Buyer Parties, if adversely determined, would have a
Material Adverse Effect on any Buyer Party's or on any Direct Purchaser's
business, properties or assets, or the transactions contemplated by this
Agreement.

                                      -21-

<PAGE>

         4.5      Financial Capability. Buyer Parties have, or will have,
available on the Closing Date all funds necessary to enable Buyer Parties to
perform this Agreement in accordance with its terms.

         4.6      No Broker. Except as set forth on Schedule 4.6, no Buyer Party
nor any Direct Purchaser (i) has had any dealings, negotiations or
communications with or retained any broker or other intermediary in connection
with the transactions contemplated by this Agreement nor (ii) is committed to
any liability for any brokers' or finders' fees or any similar fees in
connection with the transactions contemplated by this Agreement.

         4.7      [intentionally omitted]

         4.8      Canadian Competition Act. Assuming the Closing Date is the
date hereof (which assumption does not apply for purposes of Section 6.3(a)),
Buyer Parties together with their affiliates (as defined in the Canadian
Competition Act) do not have assets in Canada that exceed $200 million Cdn. or
annual gross revenues from sales in, from and into Canada which exceed $150
million Cdn., in each case as determined pursuant to section 109 of the Canadian
Competition Act and the regulations thereto.

         4.9      Investment Canada Act. Each of the Buyer Parties is a WTO
investor within the meaning of the Investment Canada Act.

                                    ARTICLE V
                              PRE-CLOSING COVENANTS

         5.1      Conduct. Except as provided in this Agreement or as mutually
agreed by the parties hereto, until the earlier of Closing or the termination of
this Agreement in accordance with its terms, Sellers shall operate the Purchased
Assets only in the ordinary course of business, including, but not limited to,
with respect to Sellers' collection practices. Sellers shall use commercially
reasonable efforts to maintain the Purchased Assets in substantially the same
condition as existed on February 28, 2003, ordinary wear and tear and Events of
Loss excepted. In addition, Sellers shall use commercially reasonable efforts to
commit no act or omission not in the ordinary course of business that would
increase the Assumed Liabilities in any material respect. Sellers shall also use
commercially reasonable efforts to maintain their relationships with their
respective customers and with each of the Key Employees. Sellers will advise
Buyer Parties promptly of any development having a Material Adverse Effect on
the Purchased Assets and/or the Assumed Liabilities.

         5.2      Pre-Closing Actions of Sellers. Sellers covenant and agree
that pending the Closing, Sellers shall use their commercially reasonable
efforts (a) not to take any action that is inconsistent with the satisfaction of
any condition set forth in Section 6.1 or 6.2, (b) to pay and perform all of
their respective debts, obligations and liabilities related to the Purchased
Assets as and when they become due in the ordinary course, (c) not to take or
agree or commit to take any action that would make any representation or
warranty of such Seller under this Agreement inaccurate in any material respect
as of the Closing Date, or omit or agree or commit to omit to take any action
necessary to prevent any such representation or warranty from being inaccurate
in any material respect at the Closing Date, (d) to obtain all Required Consents
of Sellers, which

                                      -22-

<PAGE>

shall be reasonably satisfactory in form and substance to Buyer Parties,
including a provision permitting the further transfer and assignment of the
subject Purchased Assets to a Financing Purchaser, Direct Purchaser or the
assignee contemplated by Section 6.2(n) (if applicable), (e) to, acting in good
faith, obtain an executed Notice and Acknowledgment from each applicable lessee
of a Customer Lease (and thereafter, with lower priority, from each applicable
lessee of a Non-Conveyed Unit Lease), (f) to cause all original, executed copies
of Assumed Contracts constituting "chattel paper" under the UCC in the
possession of Sellers' lenders to be delivered to Buyer Parties or to the lender
or lender's agent under the Buyers Financing prior to or at the Closing and (g)
in acknowledgement of Buyers' need to securitize the Conveyed Units and related
Customer Leases, to bring lessee obligations under delinquent Customer Leases
current prior to Closing.

         5.3      Pre-Closing Actions of Buyer Parties. Buyer Parties covenant
and agree that, pending the Closing, Buyer Parties shall use their commercially
reasonable efforts (a) not to take any action that is inconsistent with the
satisfaction of any condition set forth in Section 6.1 or 6.3 hereof, (b) to pay
and perform all of their debts, obligations and liabilities as and when they
become due in the ordinary course, (c) not to take or agree or commit to take
any action that would make any representation or warranty of Buyer Parties under
this Agreement inaccurate in any material respect as of the Closing Date, or
omit or agree or commit to omit to take any action necessary to prevent any such
representation or warranty from being inaccurate in any material respect at the
Closing Date, (d) obtain all Required Consents of Buyer Parties, which shall be
reasonably satisfactory in form and substance to Sellers, (e) to, acting in good
faith, assist Sellers in obtaining an executed Notice and Acknowledgment from
each applicable lessee, and (f) to consummate the Buyers Financing.

         5.4      Access to Information. Subject to responsibilities of the
Andersons to indemnify Sellers in accordance with the terms and conditions of
that certain license agreement, dated March 14, 2003 (the "License Agreement"),
by and among the Andersons, Railcar and PRSC, Sellers shall afford Buyer
Parties, their representatives, agents, accountants, attorneys, lenders and
rating agencies the unrestricted opportunity to perform all reasonable
evaluations, research, and analysis of the Purchased Assets and Assumed
Liabilities that Buyer Parties deem necessary to consummate the transactions
contemplated by this Agreement. Sellers will make available to Buyer Parties and
their representatives, agents, accountants, attorneys, lenders and rating
agencies reasonable access to the Purchased Assets and documents and information
(including computer databases) relating to the Purchased Assets and Assumed
Liabilities, and reasonable access to personnel, accountants and counsel during
normal working hours.

         5.5      Further Assurances; Consents; Waiver of Notices. Each of the
parties hereto hereby agrees to proceed diligently (a) to obtain any and all
approvals of Governmental Authorities, Required Consents, Notice and
Acknowledgements from each applicable lessee of a Customer Lease and other third
party consents, approvals, notations and authorizations required to be obtained
by it in connection with the consummation of the transactions contemplated by
this Agreement, (b) to comply with all conditions and covenants applicable or
related to it as contemplated by this Agreement, and (c) to take all such
commercially reasonable other actions as are necessary or advisable in order to
cause the consummation of the transactions contemplated hereby.

                                      -23-

<PAGE>

         5.6      Publicity. All general notices, releases, statements and
communications to employees, suppliers, distributors and customers of Sellers
and to the general public and the press relating to the transactions
contemplated by this Agreement shall be made only at such times and in such
manner as may be mutually agreed upon in advance by the parties hereto in
writing; provided, however, that any party hereto shall be entitled to make a
public announcement of the foregoing if such announcement is required to comply
with Laws or any listing agreement with any national securities exchange or
inter-dealer quotation system and if it first gives prior written notice to the
other parties hereto of its intention to make such public announcement and
reasonable opportunity to comment.

         5.7      Confidentiality.

                  (a)      Each of the parties hereto, in the capacity of
Recipient, acknowledges and agrees that all Confidential Information of the
other parties hereto, in the capacity of Discloser, shall be used solely for the
purpose of evaluating the transactions contemplated by this Agreement and not in
any way directly or indirectly detrimental to Discloser and such Confidential
Information shall be kept strictly confidential by the Recipient and not
disclosed to any third party, except that the Recipient may disclose the
Confidential Information or portions thereof to its officers, directors,
managers, shareholders, members, employees, agents and advisors (the
"Representatives") who need to know such information for the purpose of
evaluating the transactions contemplated hereby or negotiating, discussing or
consulting with the Discloser or its Representatives concerning the same (it
being understood that the Recipient must inform its Representatives of the
confidential nature of the Confidential Information and have them agree to be
bound by the terms of this Section so as not to disclose the Confidential
Information to any other individual or entity). Each party agrees to be
responsible for any breach of this Section by its respective Representatives.
Notwithstanding the foregoing, each Recipient shall have no obligation pursuant
to this Section with respect to Confidential Information that: (a) was in the
public domain at the time of Discloser's disclosure of the Confidential
Information to Recipient; (b) entered the public domain through no fault of
Recipient subsequent to the time of Discloser's disclosure of the Confidential
Information to Recipient; (c) was in Recipient's possession free of any
obligation of confidence at the time of Discloser's disclosure of the
Confidential Information to Recipient; (d) can be shown by documentation to have
been independently developed by the Recipient without use of or reference to any
Confidential Information; or (e) is disclosed under operation of Law in
accordance with the following paragraph.

                  (b)      Further, notwithstanding anything herein to the
contrary, any party to this Agreement (and any Representative of any party to
this Agreement) may disclose to any and all persons, without limitation of any
kind, the tax treatment and tax structure of the transactions contemplated by
this Agreement and all materials of any kind (including opinions or other tax
analyses) that are provided to it relating to such tax treatment and tax
structure; provided, however, any such information relating to the tax treatment
or tax structure is required to be kept confidential to the extent necessary to
comply with any applicable securities Laws of the United States.

                                      -24-

<PAGE>

         5.8      Notices of Certain Events. Prior to Closing, each of Sellers
and Buyer Parties (except with respect to paragraph (d) below) shall have a duty
promptly to notify each other of:

                  (a)      Any notice or other communication from any person
alleging that the consent of such person is or may be required in connection
with the transactions contemplated by this Agreement;

                  (b)      Any notice or other communication from any
Governmental Authority in connection with the transactions contemplated by this
Agreement;

                  (c)      Any Action commenced or, to its knowledge threatened
against, relating to or involving, or otherwise affecting Sellers or Buyer
Parties that, if pending on the date of this Agreement, would have been required
to have been disclosed pursuant to Section 3.13 or 4.4, as the case may be, or
that relate to the consummation of the transactions contemplated by this
Agreement; and

                  (d)      The material damage or destruction by fire or other
casualty of any Purchased Asset or in the event that any Purchased Asset or part
thereof becomes the subject of any Action or, to the Knowledge of Sellers,
threatened Action for the taking thereof or any part thereof or of any right
relating thereto by condemnation, eminent domain or other government action.

                  (e)      As soon as such party is aware thereof, the
reasonable likelihood that any condition to Closing set forth in Article VI will
not be satisfied.

         5.9      Schedule Updates.

                  (a)      Sellers have delivered Schedules (as of January 15,
2004) to Buyer Parties, which are attached hereto and made a part hereof. Buyer
Parties have performed due diligence in connection with all such Schedules and
are satisfied therewith. Buyer Parties agree to promptly inform Sellers, in
writing, prior to Closing of any facts that come to their attention that may
indicate that any of Sellers' representations or warranties may be untrue or
that Sellers have otherwise breached any provision of this Agreement in a manner
that could give any Buyer Indemnified Party any indemnification rights under
Article VIII (although the failure by Buyer Parties to so inform Sellers shall
have no effect whatsoever on any of Buyer Parties' rights or remedies against
Sellers under this Agreement for any untrue representation or warranty made by
Sellers hereunder or any such other breach). Notwithstanding anything to the
contrary in this Agreement, except for information set forth in Article III and
the Schedules attached to this Agreement, as updated in accordance with this
Section 5.9, no review by Buyer Parties or knowledge of any Buyer Party relating
to the subject matter of this Agreement shall operate as a waiver or otherwise
affect the ability of Buyer Parties or their Affiliates to seek indemnification
under Article VIII.

                  (b)      Schedules A (Part I and Part II thereof), 3.7(B),
3.7(C), 3.12(C) and 3.12(D) shall be updated again as of the business day before
Closing. Each party understands and agrees that such updates may warrant, if
applicable, inclusion of additional Schedules. Sellers and Buyer Parties agree
that in the interest of time, the above referenced Schedules are being attached
hereto on the date hereof without the benefit of a thorough review by all

                                      -25-

<PAGE>

interested parties and that any inaccuracy reflected therein on the date hereof
shall not be deemed a breach of this Agreement provided that such inaccuracy
does not appear therein on the Closing Date. Modifications to Schedule 3.7(C)
prior to the Closing Date shall be subject to the provisions of Section 2.4
(Purchase Price Adjustment), while modifications to Schedule 3.7(C) to be made
immediately after the Closing Date (as contemplated in Section 2.4) shall be
subject to the provisions of Section 8.4(c). Each party hereto agrees to
cooperate with each other so that the contents of Schedule 3.7 are as accurate
as is reasonably practicable on and as of the Closing Date.

         5.10     Notice of Closing Date. Buyer Parties shall give Sellers at
least five (5) business days prior written notice of the Closing Date and
Sellers may rely upon such date for purposes of performing any of its
obligations hereunder.

                                   ARTICLE VI
               CONDITIONS PRECEDENT TO CONSUMMATION OF THE CLOSING

         6.1      Conditions Precedent to Each Party's Obligations to Close. The
respective obligations of each party to consummate the transactions contemplated
by this Agreement on the Closing Date are subject to the satisfaction or waiver
at or prior to the Closing of the following conditions precedent:

                  (a)      no order, decree or injunction shall have been
enacted, entered, promulgated or enforced by any Governmental Authority that
prohibits the consummation of the transactions contemplated by this Agreement;
provided, however, that the parties hereto shall use their reasonable best
efforts to have any such order, decree or injunction vacated or reversed;

                  (b)      all applicable waiting periods under the HSR Act and
similar Laws of a foreign jurisdiction, if any, shall have expired or been
terminated, and neither the Federal Trade Commission, the U.S. Department of
Justice nor any other Governmental Authority shall have instituted, or
threatened to institute, either before or after the expiration of such waiting
period, if any, a proceeding concerning this Agreement or the consummation of
the transactions contemplated hereby;

                  (c)      all consents, authorizations, orders, permits and
approvals from (or registrations, declarations or filings with) any Governmental
Authority required in connection with the execution, delivery and performance of
this Agreement and the transactions contemplated hereby shall have been obtained
or made, except where the failure to have obtained or made any such consent,
authorization, order, permit, approval, filing or registration will not have a
Material Adverse Effect on Sellers, Buyer Parties, the Purchased Assets or
Assumed Liabilities following the Closing;

                  (d)      the Bill of Sale and Assignment and Assumption
Agreement shall have been executed by the applicable parties thereto;

                  (e)      [intentionally omitted];

                  (f)      the Non-Compete Agreement shall have been executed by
the applicable parties thereto;

                                      -26-

<PAGE>

                  (g)      the Storage Agreement(s) shall have been executed by
the applicable parties thereto;

                  (h)      the Railcar Mark Usage Agreement(s) shall have been
executed by the applicable parties thereto;

                  (i)      the Transition Agreement shall have been executed by
the applicable parties thereto;

                  (j)      the Andersons Bill of Sale shall have been executed
by the applicable parties thereto;

                  (k)      the Employee Lease Agreement shall have been executed
by the applicable parties thereto;

                  (l)      the Escrow Agreement shall have been executed by
applicable parties hereto and the Escrow Agent;

                  (m)      Sellers and Buyer Parties shall have obtained Notice
and Acknowledgments from lessees of Customer Leases in the number and from the
lessees as are required to consummate the Buyers Financing; and.

                  (n)      Schedule 8.4(c) shall be satisfactory to each of the
parties hereto.

         6.2      Conditions Precedent to Obligations of Buyer Parties. The
obligation of Buyer Parties to consummate the transactions contemplated by this
Agreement on the Closing Date is subject to the satisfaction or waiver at or
prior to the Closing of the following conditions precedent:

                  (a)      the representations and warranties of Sellers
contained in Article III shall be true and correct in all respects at and as of
the Closing Date (or such other date as may be specified therein) with the same
force and effect as if those representations and warranties had been made at and
as of such time (with such exceptions, if any, necessary to give effect to
events or transactions expressly permitted herein), except in each case, where
such failure to be true and correct in all respects would not result in a
Material Adverse Effect on the Purchased Assets, Assumed Liabilities or Buyer
Parties;

                  (b)      each Seller shall have performed, in all respects,
all obligations and complied, in all respects, with all covenants contained
herein that are necessary to be performed or complied with by it at or before
Closing, except in each case, where such failure to perform and comply in all
respects would not result in a Material Adverse Effect on the Purchased Assets,
Assumed Liabilities or Buyer Parties;

                  (c)      all Required Consents of Sellers shall have been
obtained, and no Required Consent, including without limitation, the consents,
authorizations, orders, permits and approvals described in Section 6.1(c), shall
contain any terms or conditions that, in the reasonable judgment of Buyer
Parties, will have a Material Adverse Effect on Buyer Parties, or on Buyer
Parties' anticipated benefits to be obtained from the transactions contemplated
herein;

                                      -27-

<PAGE>

                  (d)      All amendments or supplements to the Schedules
pursuant to Section 5.9, in Buyer Parties' reasonable judgment, shall be
acceptable to Buyer Parties in all material respects, and shall not be likely to
materially and adversely affect Buyer Parties, the Purchased Assets or the
Assumed Liabilities (other than those amendments or supplements that solely
affect the matters taken into account by the Adjustment Formula);

                  (e)      there shall have occurred no Material Adverse Effect
on Sellers, the Purchased Assets or the Assumed Liabilities from February 28,
2003 to the Closing Date;

                  (f)      Buyer Parties shall have received the Sellers
Certificates;

                  (g)      Buyer Parties shall have received the Books and
Records;

                  (h)      Buyer Parties shall have received a Lien search
report with the Surface Transportation Board and comparable Lien search reports
from Mexican and Canadian Governmental Authorities, as applicable, and shall
further have received a UCC Lien search report with regard to the railcars and
locomotives included as part of the Purchased Assets and shall further have
received an opinion of counsel with respect to the results of such Lien search
reports, none of which shall evidence any Liens on the Purchased Assets (other
than Permitted Liens) that (i) cannot be cured on or prior to the Closing and
(ii) will prevent Buyers from obtaining the Buyers Financing as determined in
good faith by BB&T Capital Markets, a division of Scott & Stringfellow, Inc. and
as set forth in writing by an officer thereof;

                  (i)      the adjustment to the Purchase Price described in
Section 2.4, if any, shall not have increased the unadjusted Purchase Price by
more than $14,000,000;

                  (j)      [intentionally omitted]

                  (k)      Buyer Parties shall have received the Parent
Guaranty;

                  (l)      All original copies of each Assumed Contract in the
possession of Sellers and/or any lender or lender's agent in connection with the
Senior Financing (or any other financing arrangement of Sellers) shall have been
delivered to Buyers or the lender or lender's agent in connection with the
Buyers Financing;

                  (m)      None of the Key Employees shall have terminated his
employment relationship with Sellers prior to Closing, other than by reason of
such Key Employee's death or disability; and

                  (n)      BB&T Capital Markets, a division of Scott &
Stringfellow, Inc. shall have determined that no more than $2,000,000 of the
Purchase Price of Conveyed Units set forth in Schedule 3.7(C) and Customer
Leases set forth in Schedule 3.7(B) (as valued by BB&T Capital Markets, a
division of Scott & Stringfellow, Inc.) shall be ineligible to be securitized or
otherwise ineligible to be included in the Buyers Financing; provided, however,
if this condition is not satisfied, Buyer Parties may elect to waive this
condition in whole but not in part; and provided, further, that Buyers, to the
extent of such ineligible Conveyed Units and/or Customer Leases, may assign
their rights or obligations to purchase all (but not less than all) of such

                                      -28-

<PAGE>

ineligible Conveyed Units and/or Customer Leases to the Andersons upon the same
terms and conditions as set forth in this Agreement.

                  (o)      As applicable and as required under that certain
Agreement for Refundable Advance, dated December 19, 2003, between PRSC and the
Andersons, PRSC shall refund to the Andersons all sums due and owing thereunder.

         6.3      Conditions Precedent to Obligations of Sellers. The obligation
of Sellers to consummate the transactions contemplated by this Agreement on the
Closing Date is subject to the satisfaction or waiver at or prior to the Closing
of the following conditions precedent:

                  (a)      the representations and warranties of Buyer Parties
contained in Article IV shall be true and correct in all respects at and as of
the Closing Date (or such other date as may be specified therein) with the same
force and effect as if those representations and warranties had been made at and
as of such time (with such exceptions, if any, necessary to give effect to
events or transactions expressly permitted herein), except in each case, where
such failure to be true and correct in all respects would not result in a
Material Adverse Effect on the Retained Liabilities or Sellers;

                  (b)      Buyer Parties shall have performed, in all respects,
all obligations and complied, in all respects, with all covenants contemplated
herein that are necessary to be performed or complied with by it at or before
Closing, except in each case, where such failure to perform and comply in all
respects would not result in a Material Adverse Effect on the Retained
Liabilities or Sellers;

                  (c)      all Required Consents of Buyer Parties shall have
been obtained and no Required Consent, including without limitation the
consents, authorizations, orders, permits and approvals described in Section
6.1(c), shall contain terms or conditions that, in the reasonable judgment of
Sellers, will have a Material Adverse Effect on any Seller, or on any Seller's
benefits to be obtained from the transactions contemplated herein;

                  (d)      Sellers shall have received Buyers Certificates;

                  (e)      the adjustment to the Purchase Price described in
Section 2.4, if any, shall not have decreased the unadjusted Purchase Price by
more than $14,000,000;

                  (f)      [intentionally omitted]

                  (g)      [intentionally omitted]

                  (h)      [intentionally omitted]

                  (i)      Sellers shall have received certificates of insurance
confirming Buyer Parties' initial compliance with their respective obligations
set forth in Section 7.7;

                  (j)      Sellers shall have received all exemption
certificates and other applicable documentation to be provided by Buyer Parties
pursuant to Section 7.2; and

                                      -29-

<PAGE>

                  (k)      In the event Buyer Parties elect to waive the
condition to Closing set forth in Section 6.2(n) and/or assign the right to
purchase all (but not less than all) of the Conveyed Units and associated
Customer Leases not eligible to be included in Buyers Financing to the
Andersons, in accordance with Section 6.2(n), such assignment and the
ramifications thereof, including but not limited to, regulatory consequences,
shall be acceptable to Sellers and the Andersons shall purchase all such
Conveyed Units and associated Customer Leases prior to or concurrently with the
Closing.

                  (l)      The Andersons shall have delivered to Sellers its
notice of intention not to exercise the Option under, and shall have paid the
Option Fee required by, the terms of the Purchase Option Agreement.

         6.4      Procedure for Failure to Satisfy Conditions Prior to Closing.
With respect to conditions precedent set forth in Section 6.2, in the event
that, in Buyer Parties' reasonable judgment, any of such conditions precedent
have not been satisfied as of February 16, 2004 (or such later date as the
parties hereto may mutually agree upon in writing) or, with respect to
conditions precedent set forth in Section 6.3, in the event that, in Sellers'
reasonable judgment, any of such conditions precedent have not been satisfied as
of February 16, 2004 (or such later date as the parties hereto may mutually
agree upon in writing), then the party that was to have the benefit of such
unsatisfied condition precedent shall notify the other party (or parties, as
applicable) in writing indicating its election to (a) waive such condition
precedent or (b) if permissible, terminate this Agreement pursuant to Section
9.1(b). In lieu of the foregoing, Buyer Parties and Sellers may agree to
consummate the transactions contemplated by this Agreement on such additional
terms as are agreed to by Sellers and Buyer Parties.

                                  ARTICLE VII
                         POST-CLOSING AND OTHER MATTERS

         7.1      Access to Records. After the Closing, upon reasonable notice,
Buyer Parties shall give, or cause to be given, to Sellers, Sellers' Affiliates
and their respective Representatives, during normal business hours, access to
the Purchased Assets (subject to Sellers' agreement to be bound to an agreement
substantially similar to the License Agreement) and all books and records,
including without limitation the Books and Records, relating to the Purchased
Assets and Assumed Liabilities, and Buyer Parties shall permit such persons to
examine and copy such books and records and investigate such Purchased Assets
and Assumed Liabilities to the extent requested by Sellers and at Sellers'
expense in connection with any reasonable business purpose; provided, however,
that such access does not unreasonably disrupt the normal operations of Buyer
Parties or unreasonably interfere with the servicing, management or operation of
the Purchased Assets.

         7.2      Tax Matters.

                  (a)      No portion of the Purchase Price or Assumed
Liabilities constitutes any amount payable in respect of any Tax payable by
reason of the sale, purchase, or transfer of the Purchased Assets hereunder.

                                      -30-

<PAGE>

                  (b)      Sellers and Buyer Parties each shall pay 50% of all
transfer, sales, recording, and similar Taxes arising in connection with the
transactions contemplated hereunder and imposed by the United States of America,
any state thereof, or any political subdivision of the United States or any such
state; provided, however, that Buyer Parties shall pay 100% of any such Tax
incurred as a result of Buyer Parties' failure to timely provide a
sale-for-resale or other applicable exemption certificate or documentation. The
parties shall cooperate to comply with all Tax return and Tax payment
requirements for such Taxes, and shall provide such applicable exemption
certificates and other documentation and take such other actions as may be
reasonably necessary to minimize the amount of any such Taxes. If any party pays
any portion of such Tax which is the responsibility of another party under this
Section 7.2(b), the party responsible for the payment of such portion shall
reimburse the party having made the payment upon written demand therefor,
accompanied by documentation evidencing that such Tax has been paid.

                  (c)      With respect to Purchased Assets located in or based
in Canada, Buyer Parties shall pay (in addition to the applicable portion of the
Purchase Price) to the Seller which is selling Purchased Assets that are located
in Canada (i) all Canadian federal goods and services tax ("GST") payable in
respect of the sale and transfer of such Purchased Assets, (ii) all Canadian
federal harmonized tax ("HST") payable in respect of the sale and transfer of
such Purchased Assets, if any, situated in any of the provinces of Newfoundland
and Labrador, Nova Scotia, and New Brunswick, and (iii) all Quebec sales tax
("QST") payable in respect of the sale and transfer of such Purchased Assets, if
any, situated in the province of Quebec, it being understood that such Seller is
required to collect and remit GST, HST, and QST. In addition, Buyer Parties
shall provide to such Seller at Closing provincial sales tax purchase exemption
certificates with respect to such Purchased Assets for each of the following
provinces in which any of such Purchased Assets is situated: British Columbia,
Saskatchewan, Manitoba, Ontario, and Prince Edward Island. If Buyer Parties
cannot or do not provide such a certificate for any of the foregoing provinces,
Buyer Parties shall pay to such Seller the amount of provincial sales tax
payable in respect of the Purchased Assets located in such province. At Closing,
Buyer Parties shall pay to the Escrow Agent, to be held by such Escrow Agent in
escrow pursuant to the Escrow Agreement, the amounts of GST, HST, QST, and
provincial sales taxes calculated by such Seller on the basis of a preliminary
trace of the location of the relevant Purchased Assets within one week prior to
the Closing Date. As soon as practicable after the Closing Date, such Seller
shall determine the location of such Purchased Assets at the time of Closing,
recalculate the applicable amounts of GST, HST, QST, and provincial sales taxes,
and notify Buyer Parties in writing of the recalculated amount of each such tax
and recalculated amount of all such taxes in the aggregate. If the aggregate
amount deposited into escrow by Buyer Parties at Closing for all such taxes
differs from the aggregate amount of all such taxes as so recalculated, then (i)
when such Seller provides such written notification, the Escrow Agent shall be
directed to refund to Buyer Parties the amount by which the aggregate amount
deposited by Buyer Parties for all such taxes at Closing exceeds the aggregate
amount of all such taxes as so recalculated, or (ii) on the first business day
after the day of receipt of such written notification, Buyer Parties shall
deposit with the Escrow Agent the amount by which the aggregate amount of all
such taxes as so recalculated exceeds the aggregate amount deposited by Buyer
Parties for all such taxes at Closing. The Escrow Agreement shall require the
Escrow Agent to remit to each Seller which is selling Purchased Assets that are
located in Canada at Closing such escrowed amounts at least five (5) business
days before such time or times such Sellers are to timely remit to the
appropriate governmental authorities all such GST, HST, and QST (and, if
applicable,

                                      -31-

<PAGE>

provincial sales tax) paid by Buyer Parties. At the later of (i) the time of
notifying Buyer Parties of the recalculated amount of GST, HST and QST and
provincial sales tax or (ii) if applicable, one business day after the date
Buyer Parties deposit with the Escrow Agent (with written notice thereof to
Sellers) the amount by which the aggregate amount of all such taxes as so
recalculated exceeds the aggregate amount deposited by Buyer Parties at Closing,
each such Seller shall provide Buyer Parties with such required documentation
necessary for Buyer Parties to claim recovery of such taxes to the extent
recoverable under applicable law.

                  (d)      In the case of Purchased Assets sold to Buyer Parties
by Mexican Seller, Buyer Parties shall, in foreign currency (Mexican Pesos)
based on the official exchange rate published in the Diario Oficial de la
Federacion (Official Journal of the Federation) on the business day prior to the
Closing Date, remit to Mexican Seller the Mexican value added tax ("VAT") in
respect of the sale of such Purchased Assets equal to 15% of the amount of
Purchase Price payable for such Purchased Assets, at least five (5) business
days before the Mexican Seller is to timely remit to the appropriate
governmental authorities all such VAT, it being understood that the Mexican
Seller is required to collect and remit such VAT. Mexican Seller shall (as soon
as practicable after Closing) provide Buyer Parties with a formal Mexican
invoice, in accordance with the terms of Article 29-A of the Tax Code of the
Federation, covering the corresponding amount of the Purchase Price, plus the
applicable VAT. The formal Mexican invoice will reflect the dollar amount of the
corresponding Purchase Price, as well as the peso amount, based on the official
exchange rate published in the Diario Oficial de la Federacion (Official Journal
of the Federation) on the business day prior to the date of payment of the
corresponding Purchase Price. Additionally, at Closing, Mexican Seller shall
provide Buyer Parties with copies of the permanent import pedimentos
(declarations) as required by applicable law covering such Purchased Assets that
have been imported into Mexico on a permanent basis, and such other
documentation necessary for Buyer Parties to obtain recovery of such VAT, to the
extent recoverable under applicable law.

                  (e)      Notwithstanding any other provision of this
Agreement, (i) Sellers shall not pay, reimburse, be liable for, indemnify or
hold harmless any Buyer Indemnified Party from and against any Taxes for which
any lessee or other user of a Purchased Asset is liable under any of the Assumed
Contracts with respect to any period (or portion thereof) commencing after the
Closing, and (ii) Sellers shall be entitled to any amounts with respect to Taxes
that may become payable to or for the benefit of any Seller or its Affiliates
under any of the Assumed Contracts with respect to any period (or portion
thereof) ending on or before the Closing Date. Buyer Parties shall take any and
all actions that any Seller may reasonably request, at the expense of such
Seller, to permit such Seller to recover with respect to Taxes under any of the
Assumed Contracts.

         7.3      UMLER Designations and Restenciling. As promptly as
practicable following Closing (but in no event more than 30 days from the
Closing Date), Sellers shall take or cause its Affiliates to take, at Sellers'
expense and with Buyer Parties' assistance as required, all necessary action to
change the UMLER designation associated with the Transfer Marks so as to reflect
the change in ownership of the Transfer Marks following Closing. Buyer Parties
shall, at Buyer Parties' expense, register the change in ownership of the
Transfer Marks with RAILINC Corp., a subsidiary of the AAR. In addition,
following receipt of written notice by Sellers, Buyer Parties agree to reimburse
Sellers for all reasonable out of pocket expenses incurred by Sellers in

                                      -32-

<PAGE>

connection with restenciling each railcar owned by Sellers following the Closing
that utilized the LSMX car mark, each of which such cars is identified on
Schedule 7.3.

         7.4      Collections. With the understanding that Buyer Parties shall
be entitled to all rentals and revenues earned from the Purchased Assets
immediately following the Closing and that Sellers shall be entitled to all
rentals and revenues earned from the Purchased Assets through the Closing, as
amounts are collected by either Buyer Parties, Sellers or any of their
Affiliates or any other person or entity that are attributable to Buyer Parties
or Sellers in accordance with the terms hereof, as the case may be, Buyer
Parties or Seller shall or shall cause the receiving party to immediately remit
the same to the entitled party.

         7.5      Post-Closing Records. Following the Closing, each of Sellers
and Buyer Parties shall cause their respective records to be marked to reflect
the transfer of the Purchased Assets and Assumed Liabilities to Buyer Parties.
To the extent not already done, immediately following the Closing, Sellers shall
deliver each Contract File for each Assumed Contract to Buyer Parties together
will all maintenance records related to the Purchased Assets in their
possession.

         7.6      Further Assurances. At any time and from time to time after
the Closing, at either party's request and without further consideration,
Sellers or Buyer Parties, as the case may be, shall execute, and shall cause
their respective Affiliates to execute and deliver such other instruments of
sale, transfer, conveyance, assignment and confirmation and take such other
action as Sellers or Buyer Parties may reasonably deem necessary or desirable in
order to more effectively consummate the transactions contemplated herein.

         7.7      Additional Insured. From and after the Closing, Buyer Parties
shall maintain or shall cause to have maintained general liability insurance in
an aggregate amount of not less than $5,000,000, naming Sellers as additional
insureds thereunder, and property insurance in an amount not less than
$15,000,000, for a period of ten (10) years. Buyer Parties shall obtain such
insurance from an A-rated insurance company. Buyer Parties shall require the
insurance company to give Sellers at least 30 days advance written notice before
cancellation of such insurance.

         7.8      Corporate Existence. Each Buyer Party will keep in full effect
its existence, rights and franchises as a corporation, limited liability company
or other business entity, and will obtain and preserve its qualification to do
business as a foreign corporation, limited liability company or business entity
in each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of this Agreement or to perform its
duties hereunder. Any person into which any Buyer Party may be merged or
consolidated, or any entity resulting from any merger, conversion or
consolidation to which any Buyer Party shall be a party, shall be the successor
to such Buyer Party hereunder, without the execution or filing of any paper or
any further act on the part of any of the parties hereto, notwithstanding
anything herein to the contrary.

         7.9      Notices to Lessees. Sellers hereby grant to Buyer Parties the
right and authority to send written notice of the consummation of the
transactions contemplated by this Agreement to all lessees under, and other
parties to, the Assumed Contracts, as contemplated by the Notice

                                      -33-

<PAGE>

and Acknowledgement sent to lessees and as may otherwise be determined to be
required or desirable by Buyer Parties in their reasonable judgment.

                                  ARTICLE VIII
                            SURVIVAL; INDEMNIFICATION

         8.1      Limitation on and Survival of Representations and Warranties.

                  (a)      Buyer Parties and Sellers acknowledge and agree that
no representations or warranties have been made by the other in connection with
the transactions contemplated by this Agreement, except for those
representations and warranties made in Article III and Article IV hereof,
respectively.

                  (b)      All representations and warranties contained in this
Agreement shall survive the Closing for a period of three (3) years beginning on
the Closing Date, but not longer; provided, however, the representations and
warranties of Sellers set forth in (i) Section 3.7 (the "Title Representation")
(A) shall, to the extent the applicable provision of the Title Representation
relates to a railcar, survive for a period of time beginning at the Closing Date
and ending on December 31 of the year in which the railcar's useful life (or
extended useful life, if applicable), as existed on the Closing Date, ends in
accordance with AAR regulations, (B) shall, to the extent the applicable
provision of the Title Representation relates to a locomotive, survive for
twenty (20) years following the Closing, and (C) shall, to the extent the
applicable provision of the Title Representation relates to an Assumed Contract,
survive for a period of time following the Closing equal to the remaining
current term (and, provided there is no amendment or modification to any term of
such Assumed Contracts after the Closing Date, the survival period of time
following the Closing shall include any automatic renewal or other renewal of
such Assumed Contract exercisable solely in a lessee's discretion) of the
applicable Assumed Contract, and (ii) Section 3.16 and Section 3.17 shall
survive until the expiration of the applicable statute of limitations for the
matter giving rise to a claim thereunder. All representations and warranties
(other than the Title Representation and those set forth in Sections 3.16 and
3.17) shall only be effective with respect to any breach or claim when notice of
such breach or claim shall have been given in writing to the other party in
breach or against whom indemnification is sought within three (3) years
following the Closing Date. Any claim for indemnification for which notice has
been given within the prescribed period may be prosecuted to conclusion
notwithstanding the subsequent expiration of such period.

         8.2      Indemnification by Sellers. Subject to the limitations set
forth in Sections 8.4, 8.5, 8.6 and 8.8 Sellers hereby agree, jointly and
severally, to indemnify and hold Buyer Parties and their employees, officers,
directors, agents and Affiliates (each a "Buyer Indemnified Party") harmless
from and against any and all claims, demands, suits, proceedings, judgments,
losses, liabilities, damages, costs and expenses (including, but not limited to,
reasonable attorneys' fees) (collectively, "Losses") imposed upon or incurred by
any Buyer Indemnified Party as a result of or in connection with any of the
following:

                  (a)      Any inaccuracy or breach of a representation or
warranty made by any Seller in Article III of this Agreement;

                                      -34-

<PAGE>

                  (b)      The Retained Liabilities;

                  (c)      The breach of, or default in the performance by any
Seller of, any covenant, agreement or obligation to be performed by any Seller
pursuant to this Agreement or any agreement or instrument executed in connection
herewith or pursuant hereto;

                  (d)      Any liability arising out of or incurred in
connection with the failure of Sellers or Buyer Parties to comply with any and
all applicable bulk sales laws (and similar laws relating to Taxes of any state
or locality in the United States of America) relating to the transfer to Buyer
Parties of the Purchased Assets and the failure of Sellers to comply with
Section 6 of the Retail Sales Act (Ontario) and any similar provisions contained
in any applicable Canadian sales tax legislation; and

                  (e)      Any dispute or claim of any third party related to or
in connection with the existence of an originally executed counterpart of an
Assumed Contract which is in the possession of such third party and which is
based upon the fact that such originally executed counterpart constitutes
"chattel paper" under Article 9 of the UCC.

Sellers understand and acknowledge that the Andersons, in its capacity as
manager of certain of the Purchased Assets as described herein, will have the
right and obligation to claim any indemnification hereunder on behalf and for
the benefit of Buyer Parties, Financing Purchasers, Direct Purchasers and
Significant Assignees. Notwithstanding the foregoing or anything contained
herein to the contrary, any claims, demands, suits, proceedings, judgments,
losses, liabilities, damages, costs and expenses, including, but not limited to,
reasonable attorneys' fees (whether direct, consequential or otherwise) that may
be suffered by the Andersons in its capacity as a manager of certain of the
Purchased Assets on behalf of any other Buyer Party, Financing Purchaser, Direct
Purchaser, Significant Assignee or any other person or entity (and not directly
in its capacity as a Buyer Party) shall not be deemed "Losses" hereunder and
Sellers shall have no indemnification obligation therefor.

         8.3      Indemnification by the Andersons. Subject to the limitations
set forth in Sections 8.4, 8.5, 8.6 and 8.8, the Andersons, on behalf of itself
and Buyers hereby agrees to indemnify and hold Sellers and their employees,
officers, directors, agents and Affiliates (each a "Seller Indemnified Party")
harmless from and against any and all Losses imposed upon or incurred by any
Seller Indemnified Party as a result of or in connection with any of the
following:

                  (a)      Any inaccuracy or breach of a representation or
warranty made by Buyer Parties in Article IV of this Agreement;

                  (b)      The Assumed Liabilities;

                  (c)      That certain Lease Guaranty of PRSC in favor of CIT
Group/Equipment Financing, Inc. executed by PRSC in connection with the
assignment of that certain lease agreement, dated July 30, 1999, between PRSC
and CIT Group/Equipment Financing, Inc. (successor in interest to Bank Austria
Creditanstalt Holdings Corporation) to a Buyer Party and the related Lease
Transfer and Assumption Agreement; and

                                      -35-

<PAGE>

                  (d)      The breach of or default in the performance by Buyer
Parties of any covenant, agreement or obligation to be performed by Buyer
Parties pursuant to this Agreement or any agreement or instrument executed in
connection herewith or pursuant hereto.

         8.4      Procedure for Indemnification.

                  (a)      Third Party Claims.

                           (i)      If any party hereto shall claim
         indemnification hereunder (the "Indemnified Party") arising from any
         claim or demand of a third party, the Indemnified Party shall promptly
         (but in no event more than 90 days from the date the party considers
         itself entitled to make an indemnification claim hereunder) notify, in
         writing, the party from whom indemnification is sought (the
         "Indemnifying Party"), setting forth the nature of the claim or demand
         in detail. Notwithstanding the foregoing, each party agrees to provide
         all other parties hereto with prompt (but in no event more than 90 days
         from the date the party considers itself entitled to make an
         indemnification claim hereunder) written notice of each matter which
         would constitute a claim notwithstanding the applicability of the
         Basket (as hereafter defined) thereto. Except with respect to claims
         that could not exceed the Basket, as applicable, the Indemnifying Party
         shall have the right to compromise or, if appropriate, defend at its
         own cost and through counsel of its own choosing, any claim or demand
         of any third party giving rise to such claim for indemnification.
         Provision of the written notice and granting of the opportunity to
         compromise or defend, if applicable, each as described above, shall be
         conditions precedent to any Indemnifying Party's obligations under this
         indemnity; provided, however, that failure to give such written notice
         shall not affect the right to indemnification hereunder except to the
         extent of actual prejudice to the Indemnifying Party.

                           (ii)     In the event the Indemnifying Party
         undertakes to compromise or defend any such claim or demand, it shall
         promptly notify the Indemnified Party in writing of its intention to do
         so and shall use commercially reasonable efforts to limit the damages
         recoverable by any third party in connection therewith. The Indemnified
         Party shall fully cooperate with the Indemnifying Party and its counsel
         in the defense or compromise of such claim or demand. In the event the
         Indemnifying Party assumes the defense, the Indemnifying Party shall
         not be liable for any legal or other expenses incurred by the
         Indemnified Party in connection with such defense, other than
         reasonable out-of-pocket costs of investigation incurred prior to
         assumption of the defense by the Indemnifying Party. The Indemnified
         Party may participate in such defense at its own expense. No settlement
         of a third party claim or demand defended by the Indemnifying Party
         shall be made without the written consent of the Indemnified Party,
         which consent shall not unreasonably be withheld or delayed. The
         Indemnifying Party shall not, except with written consent of the
         Indemnified Party, which consent shall not unreasonably be withheld or
         delayed, consent to the entry of a judgment or settlement which does
         not include as a term thereof the giving by the claimant or plaintiff
         to the Indemnified Party of a release from all liability in respect of
         such third party claim or demand.

                                      -36-

<PAGE>

                           (iii)    In the event the Indemnifying Party does not
         undertake to compromise or defend any such claim or demand, the
         Indemnified Party shall undertake to compromise or defend any such
         claim or demand and shall use commercially reasonable efforts to limit
         the damages recoverable by any third party in connection therewith. The
         Indemnifying Party shall fully cooperate with the Indemnified Party and
         its counsel in the defense or compromise of such claim or demand. The
         Indemnifying Party may participate in such defense at its own expense;
         provided that the Indemnified Party does not reasonably object thereto.
         No settlement of a third party claim or demand defended by the
         Indemnified Party shall be made without the written consent of the
         Indemnifying Party, which consent shall not unreasonably be withheld or
         delayed. The Indemnified Party shall not, except with written consent
         of the Indemnifying Party, which consent shall not unreasonably be
         withheld or delayed, consent to the entry of a judgment or settlement
         which does not include as a term thereof the giving by the claimant or
         plaintiff to the Indemnifying Party of a release from all liability in
         respect of such third party claim or demand.

                  (b)      Direct Claims.

                           (i)      In connection with any Dispute directly
         between the parties hereto, each party hereto shall use commercially
         reasonable efforts to resolve such Dispute. Each Indemnifying Party
         covenants and agrees to use commercially reasonable efforts to cure any
         matter caused by such party giving rise to the applicable Dispute and
         each Indemnified Party covenants and agrees to use commercially
         reasonable efforts to mitigate any Losses incurred by such party
         related to such Dispute. Furthermore, each Indemnified Party shall,
         subject to clause (ii) hereof, as promptly as practicable (but in no
         event more than 90 days from the date the party considers itself
         entitled to make an indemnification claim hereunder) notify, in
         writing, the Indemnifying Party, setting forth the nature of the claim
         or demand in detail. If the parties are unable to agree upon a
         resolution of any Dispute within 60 days of receipt by the Indemnifying
         Party of a written notice of a Dispute, they shall each require members
         of their management teams or other relevant personnel to participate in
         a face-to-face meeting in a mutually convenient location selected by
         agreement of the parties, or failing such agreement, in St. Louis,
         Missouri, in an effort to resolve the Dispute. The face-to-face
         meeting, if any, shall occur within 90 days of receipt of a written
         notice of a Dispute and if any party thereto determines that further
         negotiations between the parties would not be useful, the parties shall
         resolve the matter in accordance with Section 8.7, if applicable, or by
         means of a Governmental Authority, if desired.

                           (ii)     Notwithstanding anything contained herein to
         the contrary, the Buyer Indemnified Parties may not bring a cause of
         action in or through any Governmental Authority against any Seller
         Indemnified Party or seek resolution of any Dispute in accordance with
         Section 8.7, until the cumulative unresolved maximum amount of Losses
         incurred by all Buyer Indemnified Parties equals or exceeds $250,000;
         provided, however, if the cumulative unresolved maximum amount of
         Losses incurred by all Buyer Indemnified Parties does not equal or
         exceed $250,000 in any one year following the initial anniversary of
         the Closing Date and any successive anniversary

                                      -37-

<PAGE>

         thereof, the Buyer Indemnified Parties may nevertheless institute such
         a claim not more than once per year.

                  (c)      With respect to any claim by Buyer Parties for
indemnification under Section 8.2(a) based upon a claim that (i) Sellers
breached the representation and warranty contained in Section 3.7(a) as a result
of, and solely as a result of, failure by Sellers to sell, transfer, convey and
deliver to Buyers good and marketable title to a Conveyed Unit set forth on
Schedule 3.7(C) on the Closing Date or (ii) as of the Closing Date, an Event of
Loss occurred with respect to any Conveyed Unit (each a "SLV Event"), then in
each case, the measure of damages with respect to each affected Conveyed Unit
shall be the Stipulated Loss Value of such Conveyed Unit. At such time as
Schedule 3.7(C) shall be updated as of the Closing Date in accordance with
Section 2.4, Schedule 8.4(c) shall be updated to reflect the Stipulated Loss
Value of each new railcar and locomotive added to Schedule 3.7(C).
Notwithstanding any other time periods for notice and resolution provided in
this Section 8.4 for indemnification procedures, but subject to the limitations
set forth in the last sentence of Section 8.5, the parties shall within ten (10)
business days after the Closing Date, cooperate with each other to confirm the
existence of facts that would give rise to any claim based upon an SLV Event. In
the event both parties confirm and agree upon the existence of facts that would
give rise to any claim based upon an SLV Event, the parties hereto shall
cooperate in an attempt to cure and mitigate the same for an amount less than
the applicable Stipulated Loss Value, if practical or possible, or if such is
not practical or possible, within ten (10) business days after such joint
determination, Sellers shall pay to Buyers the Stipulated Loss Value of the
affected Conveyed Unit. Without limiting the applicability of the Stipulated
Loss Value being the appropriate measure of damages for any claim based upon an
SLV Event, any dispute between the parties regarding the matters referenced
above shall be determined in accordance with the remaining provisions set forth
in this Article VIII. Notwithstanding the foregoing, nothing herein shall limit
Buyers' right to indemnification based upon an SLV Event at any time during the
applicable indemnification survival period set forth in Section 8.1(b).

         8.5      De Minimis Exclusion; Maximum Liability. Notwithstanding the
foregoing, (i) Sellers shall not be obligated to indemnify the Buyer Indemnified
Parties, and the Andersons shall not be obligated to indemnify the Seller
Indemnified Parties pursuant to this Article VIII unless and until the amount of
all Losses incurred by the Buyer Indemnified Parties, or by the Sellers
Indemnified Parties, as the case may be, exceeds $1,000,000 in the aggregate
(the "Basket"), in which event the party seeking indemnity may recover all
Losses incurred in excess of the Basket from the first dollar above the Basket,
and (ii) Sellers' maximum liability for Losses, in the absence of fraud, under
Section 8.2 shall be 50% of the Purchase Price and the Andersons' maximum
liability for Losses, in the absence of fraud, under Section 8.3 shall be 50% of
the Purchase Price (in each case, the "Maximum Indemnity Amount").
Notwithstanding the foregoing or anything contained herein to the contrary,
neither the Basket nor the Maximum Indemnity Amount set forth above in this
Section 8.5, shall apply to any indemnification obligations pursuant to Section
8.2(b), 8.2(c), 8.2(d), 8.2(e), 8.3(b) and 8.3(c) or to any indemnification
obligations of Sellers as a result of a breach of the Title Representation;
provided, however, (i) no Indemnifying Party shall be obligated to indemnify an
Indemnified Party in connection with the matters referenced in this sentence
unless and until the amount of all Losses incurred by the Indemnified Party
exceeds $25,000 in the aggregate, in which event the Indemnified Party may
recover all Losses including the initial $25,000, and (ii) Sellers'

                                      -38-

<PAGE>

maximum liability for all Losses for a breach of the Title Representation, in
the absence of fraud, shall be 100% of the Purchase Price.

         8.6      Offsets.

         The obligation of an Indemnifying Party to indemnify against any claim
or demand under this Article VIII shall be reduced by any amounts actually
recovered by the Indemnified Party with respect to such claim or demand or the
underlying facts under insurance policies, net of any increase that will occur,
or is reasonably likely to occur, in insurance premiums payable by the
Indemnified Party, whether by retrospective premium adjustments or any other
premium increase under the policy or policies under which the claim is made or
any other policy, where the increase results directly from filing the insurance
claim; provided, however, that this Section 8.6 shall apply only if this
provision does not constitute an improper waiver of the insurer's rights of
subrogation against the Indemnifying Party. Subject to Section 7.7, nothing
contained in this Section 8.6 shall be deemed to create an obligation of any
party hereto to maintain any form or level of insurance after the Closing, to
name any other party as an additional insured or to obtain approval for any
waiver of rights of subrogation.

         8.7      Dispute Resolution. Subject to Section 8.4(b)(ii), if the
consolidated, maximum amount that claimants are seeking with respect to any
disputes, claims or controversies arising out of or relating to this Agreement
(each, a "Dispute") does not exceed $2,000,000 (and if the claimants are not
seeking equitable relief), the parties agree to settle such Dispute by
arbitration administered by the American Arbitration Association under its
Commercial Arbitration Rules, as follows:

                  (a)      Each of the parties shall attempt, in good faith, to
agree upon a single impartial and independent arbitrator to conduct a final and
binding arbitration with respect to the Dispute. If the parties are unable to
agree on the selection of a single arbitrator, each shall choose an impartial
and independent arbitrator, each of which shall agree on a selection of a third
impartial and independent arbitrator, and the three arbitrators thus selected
shall resolve the Dispute as herein provided. Each arbitrator shall be familiar
with the railroad industry and shall have, to the extent practicable,
substantial experience in the financial, business or legal issues which are the
subject of, or implicated in, the Dispute. The parties consent to a single,
consolidated arbitration for all Disputes for which arbitration is permitted.
Any arbitration under this Section 8.7 shall be conducted in a mutually
convenient location selected by agreement of the parties, or failing such
agreement, in St. Louis, Missouri.

                  (b)      The parties shall utilize their commercially
reasonable efforts to conclude any arbitration within 180 days after the demand
for arbitration has been submitted to the American Arbitration Association.

                  (c)      Each party shall be permitted to present its case,
witnesses and evidence (including deposition testimony), if any, in the presence
of the other parties. A written transcript of the proceedings shall be made and
furnished to the parties. Except as otherwise expressly provided herein, the
tribunal shall determine the Dispute in accordance with the substantive,
procedural and evidentiary laws of the State of Delaware, without giving effect
to any conflict of law rules or other rules that might render such law
inapplicable or unavailable, and shall apply

                                      -39-

<PAGE>

this Agreement according to its terms; provided, however, that any award of the
tribunal may not exceed the remedies available to the prevailing party were the
Dispute to be litigated in a state or federal court sitting in the State of
Delaware (except that paragraph (e) of this Section will be given full force and
effect notwithstanding this proviso). The tribunal (in the event of a panel of
three arbitrators, a majority of the panel) shall render a written award on the
Dispute by majority vote accompanied by a reasoned decision as soon as
practicable after the closing of the hearing. The tribunal has no authority with
respect to any matter in which the claim exceeds $2,000,000 and, accordingly, is
without jurisdiction to enter an award in excess of $2,000,000.

                  (d)      The parties agree to be bound by any award or order
resulting from any arbitration conducted hereunder and further agree that
judgment on any award or order resulting from an arbitration conducted under
this Section 8.7 may be entered and enforced in any court having jurisdiction
thereof or having jurisdiction over any of the parties or any of their assets.

                  (e)      The costs of any arbitration, including the fees and
expenses of the arbitrators, shall be borne as determined by the arbitrator or
arbitrators. Each party to this Agreement shall bear the expense of its own
counsel, experts, witnesses, and preparation and presentation of proofs, except
to the extent such expenses constitute "Losses" that are eligible for
indemnification hereunder.

         8.8      Exclusive Remedies. After the Closing, absent fraud, the
parties' sole and exclusive recourse against each other for any Loss or claim of
Losses arising out of or relating to this Agreement and any other agreement or
instrument executed in connection herewith or pursuant hereto (other than the
License Agreement, Employee Lease Agreement, Railcar Mark Usage Agreement,
Transition Agreement, Storage Agreement and Consent to Public Announcement,
dated January 30, 2004, by and between PRSC, Railcar and the Andersons) shall be
expressly limited and subject to the provisions of this Article VIII. Sellers
hereby covenant and agree for the benefit of Buyers that they will not institute
against any Buyer, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or other similar proceeding under the laws of the United
States, any state of the United States or any foreign jurisdiction.

         8.9      Guaranties and Information. The obligations of Sellers under
this Article VIII shall be guaranteed by Progress Fuels Corporation, a Florida
corporation and parent of Sellers, pursuant to the terms and subject to the
conditions of the Parent Guaranty. Sellers shall deliver to Buyer Parties on or
before the Closing annual financial statements of Progress Fuels Corporation for
the three most recent fiscal years. Within four months after the end of each of
the three succeeding fiscal years of PRSC following Closing and thereafter
annually upon request of Buyer Parties, Sellers shall deliver an annual
financial statement of PRSC for the immediately preceding fiscal year so long as
the Parent Guaranty remains in effect. In the event and only in the event the
Andersons is no longer subject to the public reporting requirements of the
Securities Exchange Act of 1934, as amended, for so long as the Andersons has
indemnification obligations hereunder, upon written request of Sellers, the
Andersons shall deliver to Sellers, within four months after the end of each
fiscal year following Closing, an annual financial statement of the Andersons
for the immediately preceding fiscal year.

                                   ARTICLE IX
                                   TERMINATION

                                      -40-

<PAGE>

         9.1      Termination. This Agreement may be terminated and the
transactions contemplated by this Agreement may be abandoned at any time, prior
to the Closing only as follows:

                  (a)      by mutual written consent of the parties hereto;

                  (b)      by Buyer Parties or Sellers if the Closing Date shall
not have occurred on or before February 16, 2004 or such later date upon which
the parties shall mutually agree in writing (provided that the right to
terminate this Agreement under this Section 9.1(b) shall not be available to any
party whose failure to fulfill any obligation under this Agreement has been the
cause of, or has resulted in, the failure of the Closing Date to occur on or
before such date);

                  (c)      by Buyer Parties or Sellers, if any court of
competent jurisdiction in the United States or other Governmental Authority
shall have issued an order, decree or ruling or taken any other action
restraining, enjoining or otherwise prohibiting the transactions contemplated
hereby and such order, decree, ruling or other action shall have become final
and nonappealable; or

                  (d)      by either Sellers or Buyer Parties if the other party
is subject to voluntary or involuntary bankruptcy or insolvency proceedings and
such proceedings are not dismissed within thirty (30) days from the date of such
proceedings or agrees to sell all or substantially all of its assets to its
creditors or other similar adjudication or petition is made or entered under any
bankruptcy, reorganization, insolvency or other similar Law;

         9.2      Effect of Termination. If this Agreement is terminated
pursuant to Section 9.1 and the transactions contemplated by this Agreement are
not consummated, all further obligations of the parties under or pursuant to
this Agreement shall terminate without further liability of either party to the
other; provided, however, the obligations contained in this Section 9.2, Section
5.7, and Article X of this Agreement shall survive any such termination. Nothing
contained in this Section 9.2 shall relieve any party from liability for any
breach of this Agreement.

                                   ARTICLE X
                                  MISCELLANEOUS

         10.1     Amendment. This Agreement may not be amended or modified
except by an instrument in writing signed by all of the parties.

         10.2     Extension; Waiver. At any time prior to the Closing, the
parties may (a) extend the time for the performance of any of the obligations or
other acts of the other parties hereto, (b) waive any inaccuracies in the
representations and warranties contained herein or in any document, certificate
or writing delivered pursuant hereto, or (c) waive compliance with any of the
covenants, agreements or conditions contained herein. Any agreement on the part
of any party to any such extension or waiver shall be valid only if set forth on
an instrument in writing signed on behalf of such party and any waiver shall
only act with respect to the specific matter waived and shall not be deemed a
continuing waiver.

                                      -41-

<PAGE>

         10.3     Entire Agreement. This Agreement and the documents referred to
herein and to be delivered pursuant hereto and in connection herewith constitute
the entire agreement between the parties pertaining to the subject matter
hereof, and supersede all prior and contemporaneous agreements, understandings,
negotiations and discussions of the parties, whether oral or written, and there
are no warranties, representations or other agreements between the parties in
connection with the subject matter hereof, except as specifically described
above. The parties hereto acknowledge and agree that this Agreement supercedes,
in its entirety, the Asset Purchase Agreement which is terminated and of no
further force or effect.

         10.4     Expenses. Whether or not the transactions contemplated by this
Agreement are consummated, each of the parties hereto shall pay the fees and
expenses of their respective counsel, investment bankers, financial advisors,
accountants and other experts and the other expenses incident to the negotiation
and preparation of this Agreement and consummation of the transactions
contemplated hereby. In addition, Buyer Parties, on one hand, and Sellers, on
the other hand, shall pay one-half of the cost of the Lien search reports and
related legal opinions referenced in Section 6.2(h), however, subject to the
terms and conditions hereof, the cost of resolving any issues necessary for
Sellers to deliver the Purchased Assets to Buyer Parties free and clear of all
Liens other than Permitted Liens shall be borne by Sellers.

         10.5     Governing Law. This Agreement shall be construed and
interpreted according to the laws of the State of Delaware without regard to the
conflicts of law rules thereof.

         10.6     Assignment. This Agreement and Sellers' rights hereunder may
not be assigned by Sellers at any time without the prior written consent of
Buyer Parties, and any such attempt shall be null and void. Notwithstanding the
provisions of Section 10.11 of this Agreement, each Seller hereby acknowledges
that in addition to the possible assignment contemplated in Section 6.2(n), that
Buyer Parties intend to convey the Purchased Assets and assign all of their
right, title and interest in, to and under this Agreement to one or more
purchasers contemplated by the Buyer Financing, each of which will hold certain
of the Purchased Assets promptly following the Closing (each a "Financing
Purchaser") and to one or more purchasers not associated with the Buyer
Financing which will also hold certain of the Purchased Assets promptly
following the Closing (the "Direct Purchasers") and each Seller hereby agrees
that each such Financing Purchaser and Direct Purchaser and any assignee thereof
that acquires or has pledged to it all or substantially all of the assets of
such Financing Purchaser or Direct Purchaser (each a "Significant Assignee"), as
the case may be, and any beneficiary or other person claiming an interest
through any such Financing Purchaser, Direct Purchaser or Significant Assignee,
shall be a permitted assign of Buyer Parties' rights hereunder and may exercise
the rights of Buyer Parties hereunder and be entitled to all of the benefits of
Buyer Parties hereunder to the extent of such conveyance and/or assignment;
provided, however, notwithstanding any such assignment Buyer Parties shall
remain obligated hereunder. Buyer Parties agree to promptly notify Sellers in
writing in the event that any person or entity other than or in addition to the
Andersons will be managing indemnification claims against Sellers pursuant to
this Agreement; provided, however, that failure to give such notice shall not
affect the right hereunder to indemnification of Buyer Parties or their assigns.

         10.7     Notices. All communications, notices and disclosures required
or permitted by this Agreement shall be in writing and shall be deemed to have
been given when delivered

                                      -42-

<PAGE>

personally or by messenger or by overnight delivery service, or when mailed by
registered or certified United States mail, postage prepaid, return receipt
requested, or when received via telecopy, in all cases addressed to the person
for whom it is intended at the address set forth below or to such other address
as a party shall have designated by notice in writing to the other party in the
manner provided by this Section 10.7:

      If to PRSC:                       Progress Rail Services Corporation
                                        1600 Progress Drive
                                        Albertville, Alabama  35950
                                        Attention: Duane Cantrell
                                        Telecopy: 256-840-2721

      If to Railcar, Mexican Seller or  c/o Progress Rail Services Corporation
      Canadian Seller:                  1600 Progress Drive
                                        Albertville, Alabama  35950
                                        Attention: Duane Cantrell
                                        Telecopy: 256-840-2721

      In each case, with a copy to:     Progress Energy, Inc.
                                        410 South Wilmington Street
                                        Raleigh, North Carolina  27601
                                        Attention: David Fountain
                                        Telecopy: 919-546-2920

                                        and

                                        Hunton & Williams LLP
                                        One Hannover Square, Suite 1400
                                        421 Fayetteville Street Mall
                                        Raleigh, North Carolina  27601
                                        Attention: Tim Goettel
                                        Telecopy: 919-833-6352

      If to any Buyer Party:            The Andersons, Inc.
                                        480 W. Dussel Drive
                                        Maumee, Ohio  43537
                                        Attention: John Kraus
                                        Telecopy: 419-891-2749

                                               And

                                               Betsy Hall
                                        Telecopy: 419-891-6695
      In each case, with a copy to:     Foley and Lardner
                                        321 North Clark Street, Suite 2800
                                        Chicago, Illinois 60610
                                        Attention: Scott E. Early

                                   -43-

<PAGE>

                                        Telecopy: 312-832-4700

         10.8     Counterparts; Headings. This Agreement may be executed in
several counterparts, each of which shall be deemed an original, but such
counterparts shall together constitute but one and the same Agreement. The Table
of Contents, List of Schedules and Exhibits and Article and Section headings in
this Agreement are inserted for convenience of reference only and shall not
constitute a part hereof.

         10.9     Interpretation. Each party hereto has been represented by
counsel and has had an opportunity to negotiate the provisions hereof.
Therefore, this Agreement shall not be read in a light more favorable to one
party rather than another by reason of the drafting of this Agreement or
otherwise.

         10.10    Severability. If any provision, clause or part of this
Agreement, or the application thereof under certain circumstances, is held
invalid, the remainder of this Agreement, or the application of such provision,
clause or part under other circumstances, shall not be affected thereby.

         10.11    Benefit of Agreement. This Agreement shall be binding upon and
enforceable against, and shall inure to the benefit of, the parties hereto and
their respective successors in interest and permitted assigns. Nothing in this
Agreement shall or is intended to confer on any person or entity other than the
parties hereto and their successors in interest and permitted assigns, any
rights or remedies under or by reason of this Agreement.

         10.12    Waiver of Compliance. In reliance upon the indemnity set forth
in Section 8.2(d), Buyer Parties hereby waive Sellers' compliance with all
applicable bulk sales laws (and similar laws relating to Taxes of any state or
locality in the United States of America) relating to the transfer to Buyer
Parties of the Purchased Assets and Sellers' compliance with Section 6 of the
Retail Sales Act (Ontario) and any similar provision contained in any applicable
Canadian sales tax or provincial tax legislation.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -44-

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Asset Purchase
Agreement to be duly executed as of the day and year first above written.

                                  PROGRESS RAIL SERVICES CORPORATION

                                  By: /s/James V. Smallwood
                                      ------------------------------------------
                                  Name: James V. Smallwood
                                        ----------------------------------------
                                  Title: Senior Vice President
                                         ---------------------------------------
                                  RAILCAR, LTD.

                                  By: /s/ James V. Smallwood
                                      ------------------------------------------
                                  Name: James V. Smallwood
                                        ----------------------------------------
                                  Title: President
                                         ---------------------------------------

                                  PROGRESS RAIL SERVICES DE MEXICO, S.A. DE C.V.

                                  By: /s/ James V. Smallwood
                                      ------------------------------------------
                                  Name: James V. Smallwood
                                        ----------------------------------------
                                  Title: Legal Representative
                                         ---------------------------------------

                                  3079936 NOVA SCOTIA COMPANY

                                  By: /s/ David J. Hatcher
                                      ------------------------------------------
                                  Name: David J. Hatcher
                                        ----------------------------------------
                                  Title: Vice President
                                         ---------------------------------------
<PAGE>

                                  CAP ACQUIRE LLC

                                  By: /s/ Rasesh H. Shah
                                      ------------------------------------------
                                  Name: Rasesh H. Shah
                                        ----------------------------------------
                                  Title: Manager
                                         ---------------------------------------

                                  CAP ACQUIRE CANADA ULC

                                  By: /s/ Rasesh H. Shah
                                      ------------------------------------------
                                  Name: Rasesh H. Shah
                                        ----------------------------------------
                                  Title: President/Secretary
                                         ---------------------------------------

                                  CAP ACQUIRE MEXICO S. DE R.L. DE C.V.

                                  By: /s/ Rasesh H. Shah
                                      ------------------------------------------
                                  Name: Rasesh H. Shah
                                        ----------------------------------------
                                  Title: Legal Representative
                                         ---------------------------------------

                                  THE ANDERSONS, INC.

                                  By: /s/ Gary Smith
                                      ------------------------------------------
                                  Name: Gary Smith
                                        ----------------------------------------
                                  Title: Vice President, Finance and Treasures
                                         ---------------------------------------
<PAGE>

                                    AMENDMENT
                                       TO
                  AMENDED AND RESTATED ASSET PURCHASE AGREEMENT

         This AMENDMENT TO AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (this
"Amendment"), made as of February 12, 2003, by and among PROGRESS RAIL SERVICES
CORPORATION, an Alabama corporation ("PRSC"), RAILCAR, LTD., a Georgia
corporation ("Railcar"), PROGRESS RAIL SERVICES DE MEXICO, S.A. DE C.V., a
Mexico company ("Mexican Seller"), 3079936 NOVA SCOTIA COMPANY, a Nova Scotia
unlimited liability company ("Canadian Seller", and together with PRSC, Railcar
and Mexico Seller, each individually a "Seller" and collectively, "Sellers"),
CAP ACQUIRE, LLC, a Delaware limited liability company ("Cap Acquire"), CAP
ACQUIRE CANADA ULC, a Nova Scotia unlimited liability company ("Canadian
Buyer"), and CAP ACQUIRE MEXICO, S. DE R.L. DE C.V., a Mexican limited liability
company with variable capital ("Mexican Buyer", together with Cap Acquire and
Canadian Buyer, each individually a "Buyer" and collectively, "Buyers"), and THE
ANDERSONS, INC., an Ohio corporation (the "Andersons" and together with the
Buyers, each individually a "Buyer Party" and collectively, "Buyer Parties")
recites and provides as follows:

                                    RECITALS:

         A.       Sellers and Buyer Parties are parties to that certain Amended
and Restated Asset Purchase Agreement dated as of January 30, 2004 (the "Asset
Purchase Agreement").

         B.       The parties desire to further amend the Asset Purchase
Agreement on the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

         1.       Cap Acquire Canada ULC. The parties hereto acknowledge that
Canadian Buyer's legal existence did not begin until February 3, 2004 and,
accordingly, the Asset Purchase Agreement was not effective with respect to
Canadian Buyer. Canadian Buyer by its execution of this Amendment, hereby
becomes party to the Asset Purchase Agreement as of the date of its formation.

         2.       Amendments. The Asset Purchase Agreement is hereby amended as
follows:

                           (a)      Exhibit F shall be deleted and the "List of
                  Exhibits" shall be amended to delete the term "Escrow
                  Agreement" set forth opposite the text "Exhibit F" on such
                  page, and shall be replaced with the text "[Intentionally
                  omitted]".

                           (b)      The definitions of "Escrow Agent" and
                  "Escrow Agreement" are hereby deleted from Article I.

<PAGE>

                           (c)      The following sentence shall be inserted at
                  the end of Section 2.1:

                           "All Purchased Assets acquired by Canadian Buyer will
                  be acquired only from Canadian Seller."

                           (d)      The third sentence of Section 2.4 is hereby
                  modified by deleting therefrom the words "one business day
                  prior to the Closing Date" and inserting in lieu thereof "two
                  (2) business days prior to the Closing Date."

                           (e)      There shall be inserted in Article III a new
                  Section 3.23, as follows:

                           "3.23 Income Tax Act (Canada). Canadian Seller is not
                  a non-resident of Canada for purposes of the Income Tax Act
                  (Canada) and any applicable provincial taxing laws."

                           (f)      The first sentence of Section 5.9(b) shall
                  be amended by deleting the words "as of the business day
                  before Closing" and inserting in lieu thereof the words "as of
                  the second business day before Closing."

                           (g)      Section 6.1(l) is hereby amended and
                  restated in its entirety as follows:

                                    "(l)     [Intentionally omitted];"

                           (h)      Section 6.3(j) is hereby amended and
                  restated in its entirety as follows:

                                    "(j)     Sellers shall have received all
                  payments, exemption certificates and other applicable
                  documentation to be provided by Buyer Parties on the Closing
                  Date pursuant to Section 7.2; and"

                           (i)      Section 7.2(c) is hereby amended and
                  restated in its entirety as follows:

                                    "(c)     With respect to Purchased Assets
                  located in or based in Canada, Buyer Parties shall pay (in
                  addition to the applicable portion of the Purchase Price) to
                  the Seller which is selling Purchased Assets that are located
                  in Canada (i) all Canadian federal goods and services tax
                  ("GST") payable in respect of the sale and transfer of such
                  Purchased Assets, (ii) all Canadian federal harmonized tax
                  ("HST") payable in respect of the sale and transfer of such
                  Purchased Assets, if any, situated in any of the provinces of
                  Newfoundland and Labrador, Nova Scotia, and New Brunswick, and
                  (iii) all Quebec sales tax ("QST") payable in respect of the
                  sale and transfer of such Purchased Assets, if any, situated
                  in the province of Quebec, it being understood that such
                  Seller is required to collect and remit GST, HST, and QST. In
                  addition, Buyer Parties shall provide to such Seller at
                  Closing provincial sales tax purchase exemption certificates
                  with respect to such Purchased Assets for each of the
                  following

<PAGE>

                  provinces in which any of such Purchased Assets is situated:
                  British Columbia, Saskatchewan, Manitoba, Ontario, and Prince
                  Edward Island. If Buyer Parties cannot or do not provide such
                  a certificate for any of the foregoing provinces, Buyer
                  Parties shall pay to such Seller the amount of provincial
                  sales tax payable in respect of the Purchased Assets located
                  in such province. At Closing, Buyer Parties shall pay to the
                  applicable Seller, in foreign currency (Canadian Dollars)
                  based on the official exchange rate published on the business
                  day prior to the Closing Date, the amounts of GST, HST, QST,
                  and provincial sales taxes calculated by such Seller on the
                  basis of a preliminary trace of the location of the relevant
                  Purchased Assets within one week prior to the Closing Date. As
                  soon as practicable after the Closing Date, but in no event
                  later than fifteen (15) business days following the Closing
                  Date, such Seller shall determine the location of such
                  Purchased Assets at the time of Closing, recalculate the
                  applicable amounts of GST, HST, QST, and provincial sales
                  taxes, and notify Buyer Parties in writing of the recalculated
                  amount of each such tax and recalculated amount of all such
                  taxes in the aggregate. If the aggregate amount paid by Buyer
                  Parties at Closing for all such taxes differs from the
                  aggregate amount of all such taxes as so recalculated, then
                  (i) when such Seller provides such written notification, such
                  Seller shall refund to Buyer Parties, in foreign currency
                  (Canadian Dollars) based on the official exchange rate
                  published on the business day prior to the Closing Date, the
                  amount by which the aggregate amount paid by Buyer Parties for
                  all such taxes at Closing exceeds the aggregate amount of all
                  such taxes as so recalculated, or (ii) on the first business
                  day after the day of receipt of such written notification,
                  Buyer Parties shall pay to such Seller, in foreign currency
                  (Canadian Dollars) based on the official exchange rate
                  published on the business day prior to the Closing Date, the
                  amount by which the aggregate amount of all such taxes as so
                  recalculated exceeds the aggregate amount paid by Buyer
                  Parties for all such taxes at Closing. At the later of (i) the
                  time of notifying Buyer Parties of the recalculated amount of
                  GST, HST and QST and provincial sales tax or (ii) if
                  applicable, one business day after the date Buyer Parties pay
                  to Sellers the amount by which the aggregate amount of all
                  such taxes as so recalculated exceeds the aggregate amount
                  paid by Buyer Parties at Closing, each such Seller shall
                  provide Buyer Parties with such required documentation
                  necessary for Buyer Parties to claim recovery of such taxes to
                  the extent recoverable under applicable law."

                           (j)      Section 7.2(d) is hereby amended and
                  restated in its entirety as follows:

                                    "(d)     In the case of Purchased Assets
                  sold to Buyer Parties by Mexican Seller, Buyer Parties shall,
                  on the Closing Date, in foreign currency (Mexican Pesos) based
                  on the official exchange rate published in the Diario Oficial
                  de la Federacion (Official Journal of the Federation) on the
                  business day prior to the Closing Date, pay to Mexican Seller
                  the Mexican value added tax ("VAT") in respect of the sale of
                  such Purchased Assets equal to 15% of the amount of Purchase
                  Price payable for such Purchased Assets, it being understood
                  that the Mexican Seller is required to collect and remit such
                  VAT. Mexican

<PAGE>

                  Seller shall (as soon as practicable after the Closing Date,
                  but in no event later than fifteen (15) business days
                  following the Closing Date) provide Buyer Parties with a
                  formal Mexican invoice, in accordance with the terms of
                  Article 29-A of the Tax Code of the Federation, covering the
                  corresponding amount of the Purchase Price, plus the
                  applicable VAT. The formal Mexican invoice will reflect the
                  dollar amount of the corresponding Purchase Price, as well as
                  the peso amount, based on the official exchange rate published
                  in the Diario Oficial de la Federacion (Official Journal of
                  the Federation) on the business day prior to the date of
                  payment of the corresponding Purchase Price. Additionally, at
                  Closing, Mexican Seller shall provide Buyer Parties with
                  copies of the permanent import pedimentos (declarations) as
                  required by applicable law covering such Purchased Assets that
                  have been imported into Mexico on a permanent basis, and such
                  other documentation necessary for Buyer Parties to obtain
                  recovery of such VAT, to the extent recoverable under
                  applicable law."

                           (k)      Section 7.7 is hereby amended and restated
                  in its entirety as follows:

                                    "Additional Insured. From and after the
                  Closing, Buyer Parties shall maintain or shall cause to have
                  maintained general liability insurance in an aggregate amount
                  of not less than $5,000,000 per occurrence, naming Sellers as
                  additional insureds thereunder, and property insurance in an
                  amount not less than $5,000,000 per occurrence, each for a
                  period of ten (10) years. Buyer Parties shall obtain such
                  insurance from an A-rated insurance company. Buyer Parties
                  shall require the insurance company to give Sellers at least
                  30 days advance written notice before cancellation of such
                  insurance."

         3.       Ratification. Except as herein modified, the Asset Purchase
Agreement in all other respects is reaffirmed and ratified, and remains in full
force and effect.

         4.       Counterparts. This Amendment may be executed in several
counterparts, each of which shall be deemed an original, but such counterparts
together constitute but one and the same agreement.

                        [SIGNATURES ON FOLLOWING PAGES.]

<PAGE>

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

                                  PROGRESS RAIL SERVICES CORPORATION

                                  /s/ James V. Smallwood
                                  ----------------------------------------------
                                  James V. Smallwood
                                  Senior Vice President

                                  RAILCAR, LTD.

                                  /s/ James V. Smallwood
                                  ----------------------------------------------
                                  James V. Smallwood
                                  President

                                  PROGRESS RAIL SERVICES DE MEXICO, S.A. DE C.V.

                                  /s/ James V. Smallwood
                                  ----------------------------------------------
                                  James V. Smallwood
                                  Legal Representative

                                  3079936 NOVA SCOTIA COMPANY

                                  /s/ David J. Hatcher
                                  ----------------------------------------------
                                  David J. Hatcher
                                  Vice President

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<PAGE>

                                  CAP ACQUIRE, LLC

                                  By: Rasesh H. Shah
                                      -----------------------------------
                                  Rasesh H. Shah, Manager

                                  CAP ACQUIRE CANADA ULC

                                  By: Rasesh H. Shah
                                      -----------------------------------
                                  Rasesh H. Shah, President/Secretary

                                  CAP ACQUIRE MEXICO, S. DE R.L. DE C.V.

                                  By: Rasesh H. Shah
                                      -----------------------------------
                                  Rasesh H. Shah, Legal Representative

                                  THE ANDERSONS, INC.

                                  By: Gary Smith
                                      -----------------------------------
                                  Gary Smith, Vice President, Finance and
                                  Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}]]