Document:

exv4w2

Exhibit 4.2

WARRANT AGREEMENT

AMONG

THE GREENBRIER COMPANIES, INC.,

WLR RECOVERY FUND IV, L.P.,

WLR IV PARALLEL ESC, L.P.

AND

THE OTHER HOLDERS FROM TIME TO TIME PARTY HERETO

Dated as of June 10, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	1.	 	DEFINITIONS
	 	 	1	 
	 	 	 
	 	 	 	 
	2.	 	ORIGINAL ISSUE OF WARRANTS
	 	 	5	 
	 	 	2.1 Form of Warrant Certificates
	 	 	5	 
	 	 	2.2 Execution and Delivery of Warrant Certificates
	 	 	5	 
	 	 	 
	 	 	 	 
	3.	 	EXERCISE PRICE; EXERCISE OF WARRANTS; TRANSFER AND EXPIRATION OF WARRANTS
	 	 	5	 
	 	 	3.1 Exercise Price
	 	 	5	 
	 	 	3.2 Exercise of Warrants
	 	 	6	 
	 	 	3.3 Expiration of Warrants
	 	 	7	 
	 	 	3.4 Method of Exercise; Payment of Exercise Price
	 	 	7	 
	 	 	3.5 Compliance with Securities Act
	 	 	8	 
	 	 	 
	 	 	 	 
	4.	 	DISTRIBUTIONS AND ADJUSTMENTS
	 	 	8	 
	 	 	4.1 Stock Dividend; Subdivision or Combination of Common Stock
	 	 	8	 
	 	 	4.2 Other Dividends and Distributions
	 	 	9	 
	 	 	4.3 Reorganization, Reclassification, Consolidation, Merger or Sale
	 	 	10	 
	 	 	4.4 Issuance of Additional Common Stock
	 	 	10	 
	 	 	4.5 Duplicative Adjustments
	 	 	12	 
	 	 	4.6 Fractional Shares
	 	 	12	 
	 	 	4.7 Notice of Adjustment
	 	 	13	 
	 	 	4.8 Successive Adjustments
	 	 	13	 
	 	 	 
	 	 	 	 
	5.	 	WARRANT TRANSFER BOOKS
	 	 	13	 
	 	 	 
	 	 	 	 
	6.	 	WARRANT HOLDERS
	 	 	13	 
	 	 	6.1 No Voting Rights
	 	 	14	 
	 	 	6.2 Right of Action
	 	 	14	 
	 	 	 
	 	 	 	 
	7.	 	REPRESENTATIONS AND WARRANTIES OF THE HOLDERS
	 	 	14	 
	 	 	7.1 Organization
	 	 	14	 
	 	 	7.2 Authorization
	 	 	14	 
	 	 	7.3 No Conflicts
	 	 	14	 
	 	 	7.4 Consents
	 	 	14	 
	 	 	7.5 Enforceable Obligations
	 	 	14	 
	 	 	7.6 Accredited Investor
	 	 	15	 

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TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	7.7 No Sale or Distribution
	 	 	15	 
	 	 	7.8 Speculative Nature of Investment
	 	 	15	 
	 	 	7.9 WLR Group Ownership and Activities
	 	 	15	 
	 	 	7.10 Litigation
	 	 	16	 
	 	 	 
	 	 	 	 
	8.	 	REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	16	 
	 	 	8.1 Existence, Power and Ownership
	 	 	16	 
	 	 	8.2 Authorization
	 	 	16	 
	 	 	8.3 No Conflicts
	 	 	16	 
	 	 	8.4 Consents
	 	 	16	 
	 	 	8.5 Enforceable Obligations
	 	 	17	 
	 	 	8.6 Capitalization
	 	 	17	 
	 	 	8.7 Litigation
	 	 	17	 
	 	 	 
	 	 	 	 
	9.	 	COVENANTS
	 	 	17	 
	 	 	9.1 Reservation of Common Stock for Issuance on Exercise of Warrants
	 	 	17	 
	 	 	9.2 Notice of Certain Actions
	 	 	18	 
	 	 	9.3 Compliance with Rights and Restrictions Agreement
	 	 	18	 
	 	 	9.4 Governmental Filing
	 	 	18	 
	 	 	 
	 	 	 	 
	10.	 	MISCELLANEOUS
	 	 	18	 
	 	 	10.1 Payment of Taxes
	 	 	18	 
	 	 	10.2 Surrender of Certificate
	 	 	18	 
	 	 	10.3 Mutilated, Destroyed, Lost and Stolen Warrant Certificates
	 	 	19	 
	 	 	10.4 Removal of Legends
	 	 	19	 
	 	 	10.5 Successors and Assigns; Assignment
	 	 	19	 
	 	 	10.6 No Third Party Beneficiaries
	 	 	20	 
	 	 	10.7 Entire Agreement
	 	 	20	 
	 	 	10.8 Severability
	 	 	20	 
	 	 	10.9 Amendment and Waiver
	 	 	20	 
	 	 	10.10 Delays or Omissions
	 	 	20	 
	 	 	10.11 Notices
	 	 	21	 
	 	 	10.12 Interpretation
	 	 	22	 
	 	 	10.13 Governing Law
	 	 	22	 

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TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	10.14 Counterparts
	 	 	22	 
	 	 	 
	 	 	 	 
	EXHIBIT A — Form of Warrant Certificate	 	 	 	 

 -iii-

 

 

WARRANT AGREEMENT

     This Warrant Agreement (the “Agreement”) is entered into as of June 10, 2009, among
The Greenbrier Companies, Inc., an Oregon corporation (the “Company”), WLR Recovery Fund
IV, L.P., a Delaware limited partnership (“WLR-IV”), WLR IV Parallel ESC, L.P., a Delaware
limited partnership (“Parallel Employee Fund”), and each of the other Holders (as defined
below) from time to time party hereto.

RECITALS

     WHEREAS, the Company, WL Ross & Co. LLC (“WLRCo.”), as administrative agent, and
WLR-IV and Parallel Employee Fund as the initial “Holders” thereunder, have entered into that
certain Credit Agreement, dated as of the date hereof (the “Credit Agreement”);

     WHEREAS, in order to induce WLR-IV and Parallel Employee Fund to enter into the Credit
Agreement, the Company does hereby agree to enter into this Agreement pursuant to which the Company
shall issue and deliver warrant certificates in substantially the form attached hereto as
Exhibit A (the “Warrant Certificate”) evidencing Warrants to purchase shares of the
Company’s common stock, no par value (“Common Stock”), subject to adjustment (the
“Issuance”), on the terms and subject to the conditions of this Agreement;

     WHEREAS, the Company, WLR-IV, Parallel Employee Fund, WLRCo. and each of the Holders from time
to time party to this Agreement are entering into an Investor Rights and Restrictions Agreement
(the “Rights and Restrictions Agreement”), dated as of the date hereof, in connection with
this Agreement and the Issuance; and

     WHEREAS, the applicable parties are entering into the transactions contemplated by this
Agreement and the Rights and Restrictions Agreement in part to pursue potentially mutually
beneficial investment opportunities, whether made through the Company and its Subsidiaries (as
defined in the Rights and Restrictions Agreement), as a joint venture or otherwise.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
contained herein, and intending to be legally bound hereby, the parties hereby agree as follows:

     1. DEFINITIONS.

     Unless otherwise specified herein, as used in this Agreement, the following terms shall have
the following meanings:

     Affiliate: the meaning set forth in the Rights and Restrictions Agreement.

     Antitrust Law: the Sherman Act, the Clayton Act, the HSR Act, the Federal Trade
Commission Act, and all other laws that are designed or intended to prohibit, restrict or regulate
actions having the purpose or effect of monopolization or restraint of trade or significant
impediments or lessening of competition or the creation or strengthening of a dominant
position

 

 

through merger or acquisition, in any case that are applicable to the transactions
contemplated by this Agreement.

     Applicable Exchange: the New York Stock Exchange, the Nasdaq Stock Market or the
American Stock Exchange on which the Common Stock is listed at the applicable time.

     Articles of Incorporation: the Company’s Articles of Incorporation (or equivalent
organizational document), as amended from time to time.

     Beneficial Owner, Beneficially Own and Beneficial Ownership: the
meanings given such terms in the Rights and Restrictions Agreement.

     Board: the board of directors of the Company.

     Business Combination: a merger, consolidation, statutory share exchange or similar
transaction involving the Company.

     Business Day: any day that is not a Saturday, Sunday or a day on which banks in New
York, New York are required or permitted by law to be closed.

     Capital Stock: the meaning set forth in the Rights and Restrictions Agreement.

     Change of Control: the meaning given such term in the Rights and Restrictions
Agreement.

     Common Stock: the meaning set forth in the recitals to this Agreement.

     Company: the meaning set forth in the preamble to this Agreement, together with its
successors and permitted assigns.

     Convertible Securities: the meaning set forth in the Rights and Restrictions
Agreement.

     Credit Agreement: the meaning set forth in the recitals to this Agreement.

     DOJ: means the United States Department of Justice or any successor thereto.

     Excess Shares: the meaning set forth in Section 3.2(c).

     Exchange Act: the Securities Exchange Act of 1934.

     Exchange Cap: the meaning set forth in Section 3.2(b).

     Excluded Stock: the meaning set forth in Section 4.4(b).

     Exercise Date: the meaning set forth in Section 3.2(a).

     Exercise Price: the meaning set forth in Section 3.1.

     Expiration Date: the meaning set forth in Section 3.3.

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     Fair Market Value:

          (i) in the case of shares of securities where, for a continuous period of at least four months
prior to the issuance thereof, other shares of the same class had already been listed on the
Applicable Exchange, the average of the daily volume-weighted average prices per share of such
securities for the 20 consecutive trading days immediately preceding the day as of which Fair
Market Value is being determined;

          (ii) in the case of securities not covered by (i) above, the Fair Market Value of such
securities shall be determined by either (A) an Independent Financial Expert appointed for such
purpose, using one or more valuation methods that the Independent Financial Expert in its best
professional judgment determines to be most appropriate, or (B) in good faith by the Board, if
agreed to by Holders holding a majority in interest of Warrants at such time outstanding, in either
case assuming such securities are fully distributed and are to be sold in an arm’s-length
transaction and there was no compulsion on the part of any party to such sale to buy or sell and
taking into account all relevant factors;

          (iii) in the case of cash, the amount thereof; and

          (iv) in the case of other property, the Fair Market Value of such property shall be determined
by either (A) an Independent Financial Expert appointed for such purpose, using one or more
valuation methods that the Independent Financial Expert in its best professional judgment
determines to be most appropriate, or (B) in good faith by the Board, if agreed to by Holders
holding a majority in interest of Warrants at such time outstanding, in either case assuming such
property is to be sold in an arm’s-length transaction and there was no compulsion on the part of
any party to such sale to buy or sell and taking into account all relevant factors.

     FTC: means the United States Federal Trade Commission or any successor thereto.

     Governmental Authority: means any government, or any political subdivision thereof,
any governmental or regulatory entity or body, department, commission, board, agency,
instrumentality or self-regulatory organization, and any court, tribunal or judicial body, in each
case whether federal, state, county, provincial or local, and whether domestic or foreign.

     Holders: WLR-IV, Parallel Employee Fund and, from time to time hereafter, the other
holders of the Warrants.

     HSR Act: means the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

     Independent Financial Expert: a nationally recognized financial advisory firm mutually
agreed to by the Company and Holders holding a majority in interest of the Warrants at such time
outstanding, which firm does not have a material financial interest or other material economic
relationship with either the Company or any member of the WLR Group or their respective Affiliates.
If the Company and Holders holding a majority in interest of the Warrants at such time outstanding
are unable to agree on an Independent Financial Expert, each of them shall choose promptly a
separate Independent Financial Expert and these two Independent
Financial Experts shall choose promptly a third Independent Financial Expert to determine the
applicable Fair Market Value.

-3-

 

     Initial Number: the meaning set forth in Section 4.4(a)(i).

     Invesco: the meaning set forth in Section 7.9(b).

     Invesco Mutual Funds Business: the meaning set forth in Section 7.9(b).

     IPC: the meaning set forth in Section 7.9(b).

     Issuance: the meaning set forth in the recitals to this Agreement.

     Parallel Employee Fund: the meaning set forth in the preamble to this Agreement.

     Per Share Fair Market Value: the meaning set forth in Section 4.2.

     Person: any individual, corporation, limited liability company, trust, joint venture,
association, joint stock company, partnership, Government Authority or entity.

     Preferred Stock: the meaning set forth in Section 8.6.

     Rights and Restrictions Agreement: the meaning set forth in the recitals to this
Agreement.

     SEC: the Securities and Exchange Commission.

     Securities Act: the Securities Act of 1933.

     Stockholder Rights Agreement: the meaning set forth in the Rights and Restrictions
Agreement.

     Total Current Voting Power: the meaning set forth in the Rights and Restrictions
Agreement.

     Transfer: the meaning set forth in the Rights and Restrictions Agreement.

     Underlying Common Stock: the shares of Common Stock issuable or issued upon the
exercise of the Warrants.

     Voting Agreement: the meaning set forth in Section 3.2(c).

     VWAP: the dollar volume-weighted average sales price for the Common Stock on the
Applicable Exchange during the applicable day beginning at 9:30:01 a.m., New York City time (or
such other time as the Applicable Exchange publicly announces is the official opening of trading),
and ending at 4:00:00 p.m., New York City time (or such other time as the Applicable Exchange
publicly announces is the official close of trading), as reported by Bloomberg through its “Volume
at Price” functions, or, if the foregoing does not apply, the dollar volume-weighted average price
of the Common Stock in the over-the-counter market on the electronic bulletin
board for such security during such day as reported by Bloomberg, or, if no dollar
volume-weighted average sales price is reported for such security by Bloomberg for such hours, the
average of the highest closing bid price and the lowest closing ask price of any of the market

-4-

 

makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National
Quotation Bureau, Inc.).

     Warrant Certificates: the meaning set forth in the recitals to this Agreement.

     Warrants: the warrants issued by the Company pursuant to this Agreement pursuant to
the Issuance.

     WLRCo.: the meaning set forth in the recitals to this Agreement.

     WLR Group: the meaning set forth in Section 1(a)(y) of the Stockholder Rights
Agreement as amended as of the date hereof and without giving effect to any later amendment or
termination thereof.

     WLR-IV: the meaning set forth in the preamble to this Agreement.

     2. ORIGINAL ISSUE OF WARRANTS.

          2.1 Form of Warrant Certificates. The Warrant Certificates shall be in registered form only and substantially in the form
attached hereto as Exhibit A, shall be dated the date on which signed by the Company and
may have such legends and endorsements typed, stamped, printed, lithographed or engraved thereon as
provided in Section 3.5 and as required by the Rights and Restrictions Agreement or as may be
required to comply with any law or with any rule or regulation pursuant thereto.

          2.2 Execution and Delivery of Warrant Certificates. (a) Simultaneously herewith and in accordance with Section 4.01(c) of the Credit Agreement,
Warrant Certificates evidencing Warrants entitling the Holders to purchase, subject to Section 3.2,
an aggregate of 3,377,903 shares of Common Stock shall be executed by the Company and delivered as
directed by WLR-IV in writing on or prior to the date hereof.

               (b) From time to time, the Company shall sign and deliver Warrant Certificates in required
denominations to Persons entitled thereto in connection with any transfer or exchange permitted
under this Agreement and the Rights and Restrictions Agreement. The Warrant Certificates shall be
executed on behalf of the Company by its President and any Vice President, either manually or by
facsimile signature printed thereon and shall not be valid for any purpose unless so signed.

     3. EXERCISE PRICE; EXERCISE OF WARRANTS; TRANSFER AND EXPIRATION OF WARRANTS.

          3.1 Exercise Price. Each Warrant Certificate shall, when signed by the Company, entitle the Holder thereof,
subject to the provisions of this Agreement, to purchase, except as provided in Sections 3.2 and
3.3 hereof, one share of Common Stock for each Warrant represented thereby, subject to all
adjustments made on or prior to the date of exercise thereof, at an exercise price (the
“Exercise Price”) of $6.00 per share, subject to all adjustments made on or prior to the
date of exercise thereof as herein provided.

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          3.2 Exercise of Warrants. (a) Subject to this Section 3.2, the Warrants shall be exercisable in whole or in part
from time to time on any Business Day (each, an “Exercise Date”) beginning on the date
hereof and ending on the Expiration Date, in the manner provided for herein.

               (b) In the event that events occurring after the date hereof would result in the adjustment
provisions of Article 4 hereof causing the Warrants to become exercisable in the aggregate for a
number of shares of Common Stock that would exceed the number of shares that the Company may issue
upon exercise of the Warrants under the applicable rules and regulations of the Applicable Exchange
(the “Exchange Cap”), from and after such time, upon exercise of any Warrant, for each
share of Common Stock for which such Warrant is exercised, in lieu of such share, the Company will
deliver (i) a portion of a share of Common Stock equal to a fraction, the numerator of which is the
Exchange Cap, less the aggregate number of shares of Common Stock previously issued upon exercise
of the Warrants (as adjusted for stock splits, dividends, contributions and the like), and the
denominator of which is the aggregate number of shares of Common Stock that would be issuable upon
exercise of the Warrants remaining outstanding as of such event without giving effect to this
Section 3.2(b) and (ii) an amount in cash equal to one minus such fraction multiplied by the Fair
Market Value of a share of Common Stock as of the date of exercise (with the effect that upon
exercise of all Warrants the total number of shares will not exceed the Exchange Cap, and the
obligation to deliver any excess shares otherwise deliverable upon such exercises but for the
operation of this Section 3.2(b) would be settled in cash), provided that the foregoing
shall not apply from and after such time as the Company obtains the approval of its shareholders as
required by the applicable rules and regulations of the Applicable Exchange for issuances of shares
of Common Stock in excess of the Exchange Cap (provided further, however,
that the Company shall expressly have no obligation to seek such shareholder approval).

               (c) Subject to the following sentence, the Company shall not be obligated to issue any shares
of Common Stock upon exercise of the Warrants and the Holders shall not be entitled to receive any
such shares of Common Stock if, and the Warrants shall not be exercisable to the extent that, the
issuance of such shares of Common Stock would, but for this Section 3.2(c) and the effect of the
provision set forth in Section 1(a)(y) of the Stockholder Rights Agreement, result in the WLR Group
(or, if the applicable Holder is not a member of the WLR Group, such Holder or any of its
Affiliates) becoming an “Acquiring Person” as that term is defined and calculated in accordance
with the Stockholder Rights Agreement as amended as of the date hereof and without giving effect to
any later amendment thereto (to the extent that such later amendment lowers or has the effect of
lowering the applicable percentage of Beneficial
Ownership for purposes of calculating whether any such Person is an “Acquiring Person”) or
termination thereof. In the event such shares may not be so issued as a result of this Section
3.2(c) (any such shares which may not be so issued, the “Excess Shares”), the Company shall
not be obligated to issue any Excess Shares unless and until such time as the Excess Shares
Beneficially Owned by the applicable Holder have become subject to and bound by the terms of the
voting agreement set forth in Section 4.9 of the Rights and Restrictions Agreement (such Section
4.9, the “Voting Agreement”) by executing a written document pursuant to which such Holder
acknowledges and agrees that any Excess Shares Beneficially Owned by it are subject to and bound by
the terms of the Voting Agreement.

-6-

 

          3.3 Expiration of Warrants. Any unexercised Warrants shall expire and the rights of the Holders of such Warrants to
purchase Underlying Common Stock shall terminate at the close of business on the fifth anniversary
of the date of this Agreement (the “Expiration Date”).

          3.4 Method of Exercise; Payment of Exercise Price. (a) Unless the Warrant is being exercised in accordance with Section 3.4(b), in order to
exercise a Warrant, the Holder thereof must surrender the Warrant Certificate evidencing such
Warrant to the Company, with the form on the reverse of or attached to the Warrant Certificate duly
executed, together with any required payment in full of the aggregate Exercise Price then in effect
for the shares of Underlying Common Stock as to which a Warrant Certificate is submitted for
exercise. Any such payment of the Exercise Price shall be payable in cash or other same-day funds,
provided that, in lieu of cash or other same-day funds, such Holder may pay all or any
portion of the Exercise Price by delivering to the Company written notice of its election to cancel
(including evidence, reasonably acceptable to the Company, of the cancellation of) principal amount
and/or accrued interest payable by the Company to such Holder under the Credit Agreement in an
aggregate amount equal to the aggregate Exercise Price then in effect for the shares of Underlying
Common Stock as to which a Warrant Certificate is submitted for exercise.

               (b) In lieu of exercising a Warrant in the manner provided above in Section 3.4(a), the Holder
thereof may, at its option at any time, elect to receive such number of shares of Common Stock upon
surrender of the applicable Warrant at the principal office of the Company together with notice of
such election as determined by the following formula:

	 	 	 	 	 
	Where

	 	X =
	 	The number of shares of Underlying Common Stock to be issued to the Holder pursuant to exercise under this
Section 3.4(b).
	 
	 	 	 	 
	 

	 	Y =
	 	The number of shares of Underlying Common Stock purchasable under the Warrant or, if only a portion of the
Warrant is being exercised, the portion of the Warrant being exercised (at the date of such calculation).
	 
	 	 	 	 
	 

	 	A =
	 	The Fair Market Value of one share of Underlying Common Stock (at the date of such calculation).
	 
	 	 	 	 
	 

	 	B =
	 	The Exercise Price (as adjusted to the date of such calculation).

                          (c) If fewer than all the Warrants represented by a Warrant Certificate are surrendered for
exercise under Section 3.4(a) or (b), such Warrant Certificate shall be surrendered and a new
Warrant Certificate of the same tenor and for the number of Warrants that were not surrendered
shall promptly be executed and delivered by the Company, and the Company shall register it in such
name or names as may be directed in writing by the Holder and deliver the new Warrant Certificate
to the Person or Persons entitled to receive the same. Upon surrender of a Warrant Certificate in
conformity with this Agreement, the Company shall instruct its transfer agent to transfer to the
Holder of such Warrant Certificate appropriate evidence of

-7-

 

ownership of any shares of Underlying
Common Stock or other securities or property (including any money) to which the Holder is entitled,
registered or otherwise placed in, or payable to the order of, such name or names as may be
directed in writing by the Holder, and shall deliver such evidence of ownership and any other
securities or property (including any money) to the Person or Persons entitled to receive the same,
together with an amount in cash in lieu of any fraction of a share as provided in Section 4.6.
Upon payment of the Exercise Price therefor or exercise in accordance with Section 3.4(b), a Holder
shall be deemed to own and have all of the rights associated with any Underlying Common Stock or
other securities or property (including money) to which it is entitled pursuant to this Agreement
upon the surrender of a Warrant Certificate in accordance with this Agreement. If the Holder shall
direct that such securities be registered in a name other than that of the Holder, such direction
shall be tendered in conjunction with a signature guarantee from an eligible guarantor institution
participating in a signature guarantee program approved by the Securities Transfer Association, and
any other evidence of authority that may be reasonably required by the Company.

          3.5 Compliance with Securities Act. (a) (i) No Warrant may be exercised (and the Company shall be under no obligation to
process any exercise) except in compliance with Section 3.2 and (ii) no Warrants or Underlying
Common Stock may be directly or indirectly Transferred, except in compliance with applicable
federal and state securities laws and the Rights and Restrictions Agreement (to the extent
applicable to the relevant Holder).

               (b) Subject to Section 10.4 and if and so long as required by the Rights and Restrictions
Agreement (to the extent applicable to the relevant Holder), each certificate representing the
Warrants and all securities issued pursuant to the exercise of the Warrants shall bear the legends
as provided for in Section 3.2 of the Rights and Restrictions Agreement.

     4. DISTRIBUTIONS AND ADJUSTMENTS.

          4.1 Stock Dividend; Subdivision or Combination of Common Stock. If the Company shall (i) declare a dividend in or make a distribution on its Common Stock
in shares of Common Stock, (ii) subdivide or reclassify (by any stock split, stock dividend,
recapitalization or otherwise) the outstanding shares of Common Stock into a greater number of
shares, or (iii) combine or reclassify (by reverse stock split or otherwise) the outstanding shares
of Common Stock into a smaller number of shares, the Exercise Price and the number of shares
of Common Stock issuable upon exercise of the Warrants at the time of the record date for such
dividend or distribution or the effective date of such subdivision, combination or reclassification
shall be proportionately adjusted so that the Holders after such date shall be entitled to
purchase, upon payment of the same aggregate amount as would have been payable before such date,
the number of shares of Common Stock which such Holders would have owned or been entitled to
receive in respect of the shares of Common Stock subject to the Warrants after such date had the
Warrants been exercised immediately prior to such date. If a dividend is declared and such
dividend is not paid, the number of shares of Common Stock issuable pursuant to the Warrants on
such date and the Exercise Price shall again be adjusted to be such number and Exercise Price, as
applicable, in effect immediately prior to such record date (giving effect to all adjustments that
otherwise would be required to be made pursuant to this Article 4 from and after such record date).

-8-

 

          4.2 Other Dividends and Distributions. In case the Company shall fix a record date for the making of a distribution to all holders
of shares of its Common Stock of securities, evidences of indebtedness, assets, cash, rights or
warrants (excluding regular quarterly cash dividends on shares of Common Stock of up to $0.08 per
share to the extent the Board determines to reinstate its prior regular quarterly dividend policy
after the date hereof (adjusted for stock splits, dividends, contributions and the like and with
any cash dividend pursuant to any such reinstated quarterly dividend policy to be deemed a “regular
quarterly cash dividend” for such purposes) out of surplus or net profits legally available
therefor and dividends payable in Capital Stock for which adjustment is made under Section 4.1),
then in each such case (unless the Company elects to reserve shares or other units of such
securities, evidences of indebtedness, assets, cash, rights or warrants for distribution to the
Holders upon the exercise of such Warrants so that any such Holder exercising its Warrants shall
receive upon such exercise (in addition to the shares of Common Stock to which such Holder is
entitled), unless such rights have terminated or expired in accordance with their terms prior to
such exercise, the amount and kind of such securities, evidences of indebtedness, assets, cash,
rights or warrants which such Holder would have received if such Holder had, immediately prior to
the record date for the distribution of the securities, evidences of indebtedness, assets, cash,
rights or warrants, exercised its Warrants for Common Stock), the Exercise Price in effect prior to
such record date shall be reduced immediately thereafter to the price determined by multiplying the
Exercise Price in effect immediately prior to the reduction by the quotient of (i) the closing sale
price on the Applicable Exchange of the Common Stock on the last trading day preceding the first
date on which the Common Stock trades regular way on the Applicable Exchange without the right to
receive such distribution, minus the amount of cash or the Fair Market Value of the securities,
evidences of indebtedness, assets, rights or warrants to be so distributed in respect of one share
of Common Stock (the “Per Share Fair Market Value”) divided by (ii) such closing sale price
on the Applicable Exchange on such date specified in clause (i); such adjustment shall be made
successively whenever such a record date is fixed. In such event, the number of shares of Common
Stock issuable upon the exercise of the Warrants shall be increased to the number obtained by
dividing (1) the product of (A) the number of shares of Common Stock issuable upon the exercise of
the Warrants before such adjustment, and (B) the Exercise Price in effect immediately prior to the
distribution giving rise to this adjustment by (2) the new Exercise Price determined in accordance
with the immediately preceding sentence.
Notwithstanding the foregoing, if the Fair Market Value of the securities, evidences of
indebtedness, assets, rights or warrants so distributed applicable to one share of Common Stock is
equal to or greater than the closing sale price on the Applicable Exchange of the Common Stock on
the date mentioned above, then, in lieu of the foregoing adjustments, adequate provision shall be
made so that each Holder shall instead have the right to receive the amount and kind of securities,
evidences of indebtedness, assets, rights or warrants which such Holder would have received in such
distribution had such Holder exercised its Warrant immediately prior to such record date. In the
event that a distribution for which an adjustment is made hereunder is not so made, the Exercise
Price and the number of shares of Common Stock issuable upon exercise of the Warrants then in
effect shall
be readjusted effective as of the date when the Board determines not to distribute
such shares, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to
the Exercise Price that would then be in effect and the number of shares of Common Stock that would
then be issuable upon exercise of the Warrants if such record date had not been fixed.

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          4.3 Reorganization, Reclassification, Consolidation, Merger or Sale. In case of any Business Combination, recapitalization or reclassification of Common Stock
(other than a reclassification of Common Stock referred to in Section 4.1), the Holders’ right to
receive shares of Common Stock upon exercise of the Warrants shall be converted into the right to
exercise the Warrants to acquire the number of shares of stock or other securities or property
(including cash) which the Common Stock issuable (at the time of such Business Combination,
recapitalization or reclassification) upon exercise of the Warrants immediately prior to such
Business Combination, recapitalization or reclassification would have been entitled to receive had
the Warrants been exercised immediately prior to consummation of such Business Combination,
recapitalization or reclassification; and in any such case, if necessary, the provisions set forth
herein with respect to the rights and interests thereafter of the Holders shall be appropriately
adjusted so as to be applicable, as nearly as may reasonably be practicable, to the Holders’ right
to exercise the Warrants in exchange for any shares of stock or other securities or property
pursuant to this paragraph. The Company shall not effect any such Business Combination where the
Warrants are assumed by the successor entity unless the successor entity (if other than the
Company) resulting from the Business Combination assumes by operation of law and, if not by
operation of law, by written instrument the obligation to deliver to the Holders such stock,
securities or property as, in accordance with this Section 4.3, the Holders may be entitled to
receive. In determining the kind and amount of stock, securities or property receivable upon
exercise of the Warrants following the consummation of such Business Combination, if the holders of
Common Stock have the right to elect the kind or amount of consideration receivable upon
consummation of such Business Combination, then the Holder shall have the right to make a similar
election (including being subject to similar proration constraints) upon exercise of the Warrants
with respect to the number of shares of stock or other securities or property which the Holders
shall receive upon exercise of the Warrants.

          4.4 Issuance of Additional Common Stock. (a) If the Company at any time on or after the date of this Agreement shall issue shares of
Common Stock (or Convertible Securities) (other than Excluded Stock (as defined below) or a
transaction to which Section 4.1, 4.2 or 4.3 is applicable) without consideration or
for a consideration per share (or having a conversion price per share) that is less than 95%
of the VWAP on the last trading day preceding the earlier of the date of the agreement on pricing
such shares and the public announcement of the proposed issuance of such shares (or such
Convertible Securities) then, in such event:

               (i) The number of shares of Common Stock issuable upon the exercise of the Warrants
immediately prior to the issuance of such shares (or of such Convertible Securities) (the
“Initial Number”) shall be increased to the number obtained by multiplying the Initial
Number by a fraction (A) the numerator of which shall be the sum of (1) the number of shares of
Common Stock of the Company outstanding (including shares of Common Stock into which outstanding
Convertible Securities may be exercised or converted) on such date and (2) the number of additional
shares of Common Stock issued (or into which Convertible Securities may be exercised or converted)
and (B) the denominator of which shall be the sum of (1) the number of shares of Common Stock
outstanding on such date (including shares of Common Stock into which outstanding Convertible
Securities may be exercised or converted) and (2) the number of shares of Common Stock which the
aggregate consideration receivable by the Company for the total number of shares of Common Stock so
issued (or into which Convertible Securities may be exercised or converted) would purchase at the
VWAP on the last trading day

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preceding the earlier of the date of the agreement on pricing such
shares and the public announcement of the proposed issuance of such shares (or such Convertible
Securities); and

               (ii) the Exercise Price payable upon exercise of the Warrants shall be adjusted by multiplying
such Exercise Price in effect immediately prior to the issuance of such shares (or of such
Convertible Securities) by a fraction, the numerator of which shall be the number of shares of
Common Stock issuable upon exercise of the Warrants prior to such date and the denominator of which
shall be the number of shares of Common Stock issuable upon exercise of the Warrants immediately
after the adjustment described in clause (i) above.

          (b) For purposes of the foregoing, the aggregate consideration receivable by the Company in
connection with the issuance of such shares of Common Stock or Convertible Securities shall be
deemed to be equal to the sum of the net offering price (after deduction of underwriting discounts,
commissions and any related expenses payable to third parties) of all such securities plus the
minimum aggregate amount, if any, payable upon exercise or conversion of any such Convertible
Securities into shares of Common Stock. If such Convertible Securities by their terms provide,
with the passage of time or otherwise, for any increase or decrease in the consideration payable to
the Company, or increase or decrease in the number of shares of Common Stock issuable, upon the
exercise, conversion or exchange thereof, such Exercise Price computed upon the original issuance
thereof (or upon the occurrence of a record date with respect thereto), and any subsequent
adjustments based thereon, shall, upon any such increase or decrease becoming effective, be
recomputed to reflect such increase or decrease insofar as it affects the rights of conversion or
exchange under such Convertible Securities. On the expiration of any such Convertible Securities,
the termination of any such rights to convert or exchange or the expiration of any rights related
to such Convertible Securities, such Exercise Price shall forthwith be readjusted to such Exercise
Price as would have obtained had the adjustment made upon the issuance of such rights, Convertible
Securities or rights related to such Convertible Securities, as the case may be, been made upon the
basis of the issuance of only the number of shares of Common Stock actually issued upon the
exercise of such rights, upon the
conversion or exchange of such Convertible Securities or upon the exercise of the rights
related to such Convertible Securities, as the case may be. “Excluded Stock” shall include
issuances:

               (i) of shares of Common Stock issued and outstanding on the date of this Agreement;

               (ii) of shares of Common Stock or Convertible Securities or options therefor issued or granted
to employees, officers, directors, consultants and other service providers for the primary purpose
of soliciting or retaining their services pursuant to any employee benefit plan, stock grant, stock
option plan or purchase plan, or stock option exchange plan or other employee stock incentive or
similar agreement approved by the Board;

               (iii) of securities issued or issuable upon conversion, exercise or exchange of warrants,
options, notes or other Convertible Securities outstanding on the date of this Agreement,
provided that the terms of the securities or rights are not amended on or after the date
hereof in a manner that would result in additional shares being issued thereunder or that would
reduce the effective issuance price of such securities or rights below the Exercise Price
immediately prior to such amendment;

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               (iv) of shares of Common Stock or Convertible Securities issuable upon exercise of the
Warrants to be issued pursuant to this Agreement;

               (v) of securities issuable pursuant to the Stockholder Rights Agreement (or any similar
successor rights agreement of the Company);

               (vi) of shares of Common Stock or Convertible Securities issued or issuable in connection with
any acquisition by the Company or joint venture agreements, in each case approved by the Board,
whether through an acquisition of stock or a merger of any business, assets or technologies the
primary purpose of which is not to raise equity capital;

               (vii) of securities in connection with a broadly-marketed public offering and sale for cash
conducted by the Company (including a 144A-type offering), provided that, to the Company’s
knowledge, no more than 5% of the outstanding Common Stock (or securities then convertible into or
exercisable for 5% of the outstanding Common Stock) are sold pursuant to such offering to any
single purchaser or group (excluding any underwriters or “initial purchasers,” in the case of a
144A-type offering, that initially agree to purchase such securities with the intent or for the
purpose of distribution in such offering);

               (viii) of securities for which the Holders of a majority of the outstanding Warrants and the
Company shall have elected by an affirmative vote or by written consent to treat as and be deemed
to be “Excluded Stock” for purposes of this Agreement; and

               (ix) of shares of Common Stock or Convertible Securities issued or deemed issued as a result
of a decrease in the Exercise Price of the Warrants resulting from the operation of Section 4.4.

     All Excluded Stock existing prior to the date of the applicable adjustment pursuant to Section
4.4(a) shall be deemed to be outstanding for all purposes of the computations pursuant to Section
4.4(a).

          4.5 Duplicative Adjustments. If and to the extent that an adjustment is made to a Warrant, the effect of which is to
duplicate any adjustment otherwise required by this Article 4, such duplicative adjustment shall
not be made in any case, to the extent that such adjustment is so duplicative, that would result in
a Holder receiving or becoming entitled to receive (A) any evidences of the Company’s indebtedness,
any shares of the Capital Stock or any other securities or property of any nature whatsoever
(including cash) or (B) any options, warrants or other rights to subscribe for or purchase the same
in any case, to the extent that such adjustment is so duplicative.

          4.6 Fractional Shares. No fractional shares shall be issued upon exercise of any Warrant. If any fractional share
of Common Stock otherwise would be issuable upon exercise of any Warrant, the Company may elect to
pay to the Holder, in lieu of issuing any fractional share, a sum in cash equal to such fraction
multiplied by the Fair Market Value of a share of Common Stock, or in lieu of making such cash
payment, the Company may elect to round up to the next whole share the number of shares of Common
Stock to be issued to any Holder upon exercise.

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          4.7 Notice of Adjustment. Whenever the number of shares of Common Stock or other stock or property issuable upon the
exercise of each Warrant is adjusted, as herein provided, the Company shall promptly provide notice
to each Holder notice of such adjustment or adjustments setting forth the number of shares of
Common Stock or other stock or property issuable upon the exercise of each Warrant after such
adjustment, setting forth a brief statement of the facts requiring such adjustment and setting
forth the computation by which such adjustment was made.

          4.8 Successive Adjustments. Any adjustments pursuant to this Article 4 shall be made successively whenever an event
referred to herein shall occur.

     5. WARRANT TRANSFER BOOKS.

          (a) The Warrant Certificates shall be issued in registered form only. The Company shall cause
to be kept a register in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Warrant Certificates and of transfers or exchanges of
Warrant Certificates as provided in this Agreement and the Rights and Restrictions Agreement.

          (b) All Warrant Certificates issued upon any registration of transfer or exchange of Warrant
Certificates shall be the valid obligations of the Company, evidencing the same obligations, and
entitled to the same benefits under this Agreement and the Rights and Restrictions Agreement, as
the Warrant Certificates surrendered for such registration of transfer or exchange.

          (c) Every Warrant Certificate surrendered for registration of transfer or exchange shall (if
so required by the Company) be duly endorsed, or be accompanied by a written instrument of transfer
in form satisfactory to the Company, duly executed by the Holder thereof or his attorney duly
authorized in writing.

          (d) No service charge shall be made to a Holder for any registration of transfer or exchange
of Warrant Certificates. The Company may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any registration of transfer or
exchange of Warrant Certificates.

          (e) Subject to compliance with any restrictions on transfer under applicable law and the
Rights and Restrictions Agreement, any Warrant Certificate when duly endorsed in blank shall be
deemed negotiable and when a Warrant Certificate shall have been so endorsed, the Holder thereof
may be treated by the Company and all other Persons dealing therewith as the absolute owner thereof
for any purpose and as the Person entitled to exercise the rights represented thereby, or to the
transfer thereof on the register of the Company, any notice to the contrary notwithstanding; but
until such transfer on such register, the Company shall treat the
registered Holder thereof as the owner for all purposes. No such transfer shall be registered
until the Company has been supplied with the aforementioned instruments of transfer and any other
such documentation as the Company may reasonably require.

     6. WARRANT HOLDERS.

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          6.1 No Voting Rights. Prior to the exercise of the Warrants, no Holder shall be entitled to any rights of a
shareholder of the Company in respect of such Holder’s Warrants or Warrant Certificates, including
the right to vote, to consent, to exercise any preemptive right, to receive any notice of meetings
of shareholders for the election of directors of the Company or any other matter or to receive any
notice of any proceedings of the Company.

          6.2 Right of Action. All rights of action in respect of this Agreement are vested in the Holders, and any
Holder, without the consent of the Holder of any other Holder, may, on such Holder’s own behalf and
for such Holder’s own benefit, enforce and may institute and maintain any suit, action or
proceeding against the Company suitable to enforce, or otherwise in respect of, such Holder’s right
to exercise or exchange such Holder’s Warrants in the manner provided in this Agreement or any
other obligation of the Company under this Agreement.

     7. REPRESENTATIONS AND WARRANTIES OF THE HOLDERS.

     Each Holder (except as set forth below) hereby represents and warrants that, as of the date
that such Holder becomes a party to this Agreement (or, if such Holder is WLR-IV or Parallel
Employee Fund, as of the date hereof):

          7.1 Organization. If an entity, it is duly organized, validly existing and in good standing under the laws of
its jurisdiction of organization.

          7.2 Authorization. It has all necessary power and authority to enter into this Agreement and the Rights and
Restrictions Agreement and to perform its obligations under, and to consummate the transactions
contemplated by, this Agreement and the Rights and Restrictions Agreement and has by proper action
duly authorized the execution and delivery of this Agreement and the Rights and Restrictions
Agreement.

          7.3 No Conflicts. None of the execution and delivery of this Agreement and the Rights and Restrictions
Agreement, nor the consummation of the transactions contemplated herein or therein, nor the
performance of and compliance with the terms and provisions hereof or thereof shall, (i) if an
entity, violate or conflict with any provision of its organizational documents or (ii) violate any
law, regulation, order, writ, judgment, injunction, decree or permit applicable to it.

          7.4 Consents. Subject to the requirements of the HSR Act, and the rules and regulations thereunder, if
applicable, no consent, approval, authorization or order of, or filing, registration or
qualification with, any court or Governmental Authority or other Person is required in connection
with the execution, delivery or performance by the Holder of this Agreement or the Rights and
Restrictions Agreement or the Warrants.

          7.5 Enforceable Obligations. This Agreement and the Rights and Restrictions Agreement have been duly executed and
delivered by the Holder and, assuming due authorization, execution and delivery hereof by the
Company, constitute legal, valid and binding obligations of the Holder, enforceable in accordance
with their terms subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles.

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          7.6 Accredited Investor. Such Holder is an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D promulgated under the Securities Act. Such Holder is a sophisticated investor with
such knowledge and experience in financial and business matters so as to be capable of evaluating
the merits and risks of the Warrant and the Underlying Common Stock and is capable of bearing the
economic risks of such Warrant and Underlying Common Stock. Such Holder has relied solely upon the
advice of such Holder’s legal counsel and accountants or other financial advisers with respect to
the legal, financial, business, tax and other considerations relating to the purchase of the
Warrant and the Underlying Common Stock and has been offered, during the course of discussions
concerning the issuance of the Warrant, the opportunity to ask such questions and inspect such
documents concerning the Company and its business and affairs as the Holder has requested so as to
understand more fully the nature of the investment and to verify the accuracy of the information
supplied. The Holder believes that it has received all the information that it considers necessary
or appropriate for deciding whether to acquire the Warrants.

          7.7 No Sale or Distribution. Such Holder is acquiring the Warrants for its own account and not with a view towards, or
for resale in connection with, the sale or distribution thereof, except pursuant to sales
registered or exempted under the Securities Act.

          7.8 Speculative Nature of Investment. The Holder understands and acknowledges that its investment in the Company is highly
speculative and involves substantial risks. The Holder can bear the economic risk of its
investment and is able, without impairing its financial condition, to hold the Warrants for an
indefinite period of time and to suffer a complete loss of its investment.

          7.9 WLR Group Ownership and Activities. WLR-IV and Parallel Employee Fund hereby represent and warrant to the Company, as of the
date hereof, that:

          (a) WLR Recovery Associates IV LLC is the general partner of WLR-IV, and WLRCo. is the
investment advisor of WLR-IV. WLR-IV and other funds within the WLR Group invest in financially
distressed businesses. WLR-IV’s investments generally consist of public and private equity and
debt securities, including distressed bank loans, claims and equity-linked and other securities.
Members of the WLR Group have invested in loans to various institutions pursuant to credit
facilities.

          (b) Invesco Ltd. (“Invesco”), indirectly through its subsidiary Invesco Private
Capital Inc. (“IPC”), owns WLRCo. and entities that invest in other private equity funds,
as well as directly into companies. Wilber L. Ross, Jr. is IPC’s Chairman and Chief Executive
Officer. The WLR Group’s activities are managed separately from Invesco’s mutual funds, managed
accounts and other investment activities (including Invesco and any Affiliate of Invesco other than
members of the WLR Group, the “Invesco Mutual Funds Business”), and customary firewall
procedures have been implemented between the WLR Group and the Invesco Mutual Funds Business
designed to prevent the sharing of information between the two businesses. No Person involved in
the Invesco Mutual Funds Business was involved in WLR-IV’s and Parallel Employee Fund’s decision to
invest in the Company, and as of the date hereof neither WLR-IV nor Parallel Employee Fund expects
any such Person to be involved in decisions as to the voting or disposition of any such investment.

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          (c) WLR-IV and Parallel Employee Fund believe that (i) neither Invesco nor any other Person
involved in the Invesco Mutual Funds Business directs the voting or disposition of any debt or
equity investments by the WLR Group and (ii) the WLR Group does not direct the voting or
disposition of any debt or equity investments by Invesco or the Invesco Mutual Funds Business.
Based on WLR-IV’s and Parallel Employee Fund’s understanding of the applicable legal requirements,
as of the date hereof, no Person involved in the Invesco Mutual Funds Business is required to be
reported, or when initially reported will be reported, as a Beneficial Owner of any securities of
the Company Beneficially Owned by a member of the WLR Group on any Schedule 13D to be filed by the
WLR Group with the SEC with respect to the transactions contemplated hereby.

          (d) Each of WLR-IV and Parallel Employee Fund is an institutional “accredited investor” within
the meaning of clauses (1), (2) and (3) of Rule 501(a) of Regulation D promulgated under the
Securities Act, and each of WLR-IV and Parallel Employee Fund invests in debt in the ordinary
course of their respective investment activities.

          7.10 Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge
of the Holder after due and diligent investigation, threatened or contemplated, at law,
in equity, in arbitration or before any Governmental Authority, by or against the Holder or
against its properties or revenues that purport to affect or pertain to this Agreement or the
Rights and Restrictions Agreement, or any of the transactions contemplated hereby or thereby.

     8. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     The Company hereby represents and warrants that, as of the date hereof:

          8.1 Existence, Power and Ownership. It is a corporation duly organized, validly existing and in good standing under the laws of
the State of Oregon.

          8.2 Authorization. It has the corporate power and authority to enter into this Agreement and the Rights and
Restrictions Agreement and to perform its obligations under, and consummate the transactions
contemplated by, this Agreement and the Rights and Restrictions Agreement and has by proper action
duly authorized the execution and delivery of this Agreement and the Rights and Restrictions
Agreement.

          8.3 No Conflicts. None of the execution and delivery of this Agreement and the Rights and Restrictions
Agreement, nor the consummation of the transactions contemplated herein or therein, nor the
performance of and compliance with the terms and provisions hereof or thereof shall, (i) violate or
conflict with any provision of its Articles of Incorporation or by-laws, (ii) violate any material
law, regulation, order, writ, judgment, injunction, decree or permit applicable to it, or (iii)
violate or conflict with any contractual provisions of, or cause an event of default under, any
material indenture, loan agreement, mortgage, deed of trust, contract or other agreement or
instrument to which it is a party or by which it or any of its properties may be bound.

          8.4 Consents. Subject to the requirements of the HSR Act, and the rules and regulations thereunder, if
applicable, no consent, approval, authorization or order of, or filing,

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registration or
qualification with, any court or Governmental Authority or other Person is required in connection
with the execution, delivery or performance of this Agreement or the Rights and Restrictions
Agreement or the Warrants.

          8.5 Enforceable Obligations. This Agreement and the Rights and Restrictions Agreement have been duly executed and
delivered by the Company and, assuming due authorization, execution and delivery hereof by the
Holders, constitute legal, valid and binding obligations of the Company, enforceable in accordance
with their terms subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles.

          8.6 Capitalization. As of the date hereof, the Company’s authorized Capital Stock consists of 75,000,000
shares, of which 25,000,000 shares are preferred stock, no par value (“Preferred Stock”),
200,000 shares of which are designated as Series A Participating Preferred Stock, of which none
were issued and outstanding, and 50,000,000 shares are Common Stock, of which 17,094,234 shares
were issued and outstanding as of June 5, 2009. As of the date hereof, no shares of Common Stock
are held in treasury and 12,160 shares of Common Stock are reserved for issuance upon exercise of
outstanding employee stock options. There are no shares of Capital Stock authorized or outstanding
other than the Common Stock and the Preferred Stock. There are no other classes of Capital Stock
of the Company authorized or outstanding. All of the outstanding shares of Common Stock are duly
authorized, validly issued, fully paid and non-assessable and were not issued in violation of any
preemptive or similar rights. There are no outstanding rights, options, warrants, conversion
rights or agreements or commitments of any character relating to the Company’s authorized and
issued, unissued or treasury shares of Common Stock, and the Company has not issued any debt
securities, other securities, rights or obligations that are currently outstanding and convertible
into or exchangeable for, or giving any Person a right to subscribe for or acquire, Common Stock of
the Company, in each case other than outstanding employee options and
the Company’s 23/8% Convertible
Senior Notes due 2026.

          8.7 Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge
of the Company after due and diligent investigation, threatened or contemplated, at law, in equity,
in arbitration or before any Governmental Authority, by or against the Company or any of its
subsidiaries or against any of their respective properties or revenues that purport to affect or
pertain to this Agreement or the Rights and Restrictions Agreement, or any of the transactions
contemplated hereby or thereby.

     9. COVENANTS.

          9.1 Reservation of Common Stock for Issuance on Exercise of Warrants. The
Company covenants that it shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued Common Stock, solely for the purpose of
issuance upon exercise of Warrants as herein provided, such number of shares of Common Stock as
shall then be issuable upon the exercise of all Warrants issuable hereunder. The Company covenants
that all shares of Common Stock which shall be issuable upon exercise of the Warrants shall, upon
such issuance, be duly and validly issued and fully paid and non-assessable.

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          9.2 Notice of Certain Actions. (a) At any time when the Company declares any distribution or dividend on its Common Stock
(other than any regular quarterly cash dividend), it shall give notice to the Holders that at such
time hold outstanding Warrants of any such declaration not less than 15 days prior to the related
record date for payment of the distribution or dividend so declared.

          (b) Upon actual knowledge by the Company of the occurrence of a Change of Control, the Company
shall give notice to the Holders that at such time hold outstanding Warrants of such occurrence not
less than 15 days prior to the date on which such Change of Control is expected to become effective
or promptly after actual knowledge by the Company.

          9.3 Compliance with Rights and Restrictions Agreement. The Company and each Holder covenant and agree to be bound by the provisions of the Rights
and Restrictions Agreement to the extent applicable to such Holder.

          9.4 Governmental Filing. The Company and the applicable Holders acknowledge that one or more filings under the HSR
Act may be necessary in connection with the issuance of the Underlying Common Stock upon exercise
of the Warrants. Prior to exercise of any Warrants, the Company and the applicable Holders shall,
if required, (i) file with the FTC and the Antitrust Division of the DOJ a Notification Form
relating to the exercise of such Warrants as required by the HSR Act, and (ii) file comparable
pre-merger or post-merger notification filings, forms and submissions with any foreign Governmental
Authority that are required by other applicable Antitrust Laws in connection with the exercise of
such Warrants. The expiration or early termination of any waiting period associated with any
required filings under the HSR Act or other applicable Antitrust Laws shall be a condition to the
exercise of any Warrants.

     10. MISCELLANEOUS.

          10.1 Payment of Taxes. The Company shall pay all transfer, stamp and other similar taxes that may be imposed in
respect of the issuance or delivery of the Warrants or in respect of the issuance or delivery by
the Company of any securities upon exercise of the Warrants with respect thereto. The Company
shall not be required, however, to pay any tax or other charge imposed in connection with any
transfer involved in the issuance of any certificate for shares of Common Stock or other securities
underlying the Warrants or payment of cash to any Person other than the Holder in respect of a
Warrant Certificate surrendered upon the exercise or purchase of a Warrant, and in case of such
transfer or payment, the Company shall not be required to issue any security or to pay any cash
until such tax or charge has been paid or it has been established to the Company’s satisfaction
that no such tax or other charge is due. The Company and the Holders agree that the issuance and
exercise of the Warrants is intended to be a capital transaction and not a compensatory
transaction, and any Holder who is not a U.S. Person for U.S. federal income tax purposes hereby
represents that the Common Stock would, if owned by such Holder, be capital assets in its hands for
U.S. federal income tax purposes.

          10.2 Surrender of Certificate. Any Warrant Certificate surrendered for exercise or purchase shall be promptly cancelled
and shall not be reissued by the Company. The Company shall destroy such cancelled Warrant
Certificates.

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          10.3 Mutilated, Destroyed, Lost and Stolen Warrant Certificates. (a) If (i) any mutilated Warrant Certificate is surrendered to the Company or (ii) the
Company receives evidence to its satisfaction of the destruction, loss or theft of any Warrant
Certificate, and there is delivered to the Company such appropriate affidavit of loss, applicable
processing fee and a corporate bond of indemnity as may be required by it to save it harmless,
then, in the absence of notice to the Company that such Warrant Certificate has been acquired by a
bona fide purchaser, the Company shall execute and deliver, in exchange for any such mutilated
Warrant Certificate or in lieu of any such destroyed, lost or stolen Warrant Certificate, a new
Warrant Certificate of like tenor and for a like aggregate number of Warrants.

          (b) Upon the issuance of any new Warrant Certificate under this Section 10.3, the Company may
require the payment of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and other expenses (including the reasonable fees and expenses of
counsel to the Company) in connection therewith.

          (c) Every new Warrant Certificate executed and delivered pursuant to this Section 10.3 in lieu
of any destroyed, lost or stolen Warrant Certificate shall constitute an original contractual
obligation of the Company, whether or not the destroyed, lost or stolen Warrant Certificate shall
be at any time enforceable by anyone, and shall be entitled to the benefits of this Agreement
equally and proportionately with any and all other Warrant Certificates duly executed and delivered
hereunder.

          (d) The provisions of this Section 10.3 are exclusive and shall preclude (to the extent
lawful) all other rights or remedies with respect to the replacement of mutilated, destroyed, lost,
or stolen Warrant Certificates.

          10.4 Removal of Legends. A Holder may surrender its Warrant Certificates or certificates evidencing Underlying
Common Stock to the Company, which shall exchange such certificates for certificates without the
legends referred to in Sections 2.1 and 3.5; provided that applicable federal and state
securities laws and the Rights and Restrictions Agreement no longer requires such legend.

          10.5 Successors and Assigns; Assignment. Except as otherwise expressly provided herein or in the Rights and Restrictions Agreement,
the provisions hereof shall inure to the benefit of, and be binding upon, the successors, permitted
assigns, heirs, executors and administrators of the parties hereto. This Agreement and the Warrant
Certificates may not be assigned by (a) the Company (other than by operation of law, including in
connection with a Change of Control) without the prior written consent of Holders holding a
majority in interest of the Warrants at such time outstanding or (b) any Holder without the prior
written consent of the Company, except that each Holder may assign their respective rights and
obligations without such consent in connection with a Transfer
of such Holder’s Warrants made pursuant to and in accordance with the requirements for a
Transfer of the Warrants made under Article 3 of the Rights and Restrictions Agreement;
provided, however, that the transferee agrees to be bound by Articles 3 and 5 of
the Rights and Restrictions Agreement, this Agreement and the applicable Warrant Certificates as a
“Holder” and the original Holder shall not be relieved from its obligations under this Agreement
(which, in the case of a Transfer pursuant to clause (vi) of Section 3.1(a) of the Rights and
Restrictions Agreement, may be accomplished by the transferee

-19-

 

being deemed to have so agreed by
virtue of its acceptance of the stock certificate or Warrant Certificate evidencing the applicable
equity interest bearing the restrictive legends reflecting such agreement).

          10.6 No Third Party Beneficiaries. Except to the extent that rights are expressly granted to a party under the terms of this
Agreement, this Agreement is not intended to create any rights, claims or benefits inuring to any
Person that is not a party hereto nor create or establish any third party beneficiary hereto.

          10.7 Entire Agreement. This Agreement, the Warrant Certificates and the Rights and Restrictions Agreement
(together with any other agreements entered into among the parties or their Affiliates in
connection herewith) constitute the entire agreement and supersede all prior agreements and
understandings, both written and oral, between the parties with respect to the subject matter
hereof and thereof.

          10.8 Severability. In case any provision of this Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

          10.9 Amendment and Waiver. No amendment, waiver or other modification of, or consent under, any provision of this
Agreement shall be effective against the Company, unless it is approved in writing by the Company,
and no amendment, waiver or other modification of, or consent under, any provision of this
Agreement shall be effective against any Holder, unless it is approved in writing by Holders
Beneficially Owning a majority in interest of the Warrants at such time outstanding;
provided that if any amendment or waiver operates in a manner that purports by its terms to
treat any Holder differently from any other Holder in a manner adverse to such Holder or that
modifies the terms upon which the Warrants are exercisable, redeemable or transferable, the consent
of such affected Holder shall also be required for such amendment or waiver to be binding on such
adversely affected Holder; provided further that any Holder may waive any rights or
provide consent with respect to itself; provided further that notwithstanding the
foregoing, the addition of a Holder as a party hereto in accordance with the terms of Article 3 of
the Rights and Restrictions Agreement shall not constitute an amendment hereto and may be effected
by the execution of a counterpart hereto only by such new Holder. No waiver of any breach of any
agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding
breach thereof or of any other agreement or provision herein contained.

          10.10 Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to
any party, upon any breach, default or noncompliance by another party under this Agreement, shall
impair any such right, power or remedy, nor shall it be construed to be a waiver of any such
breach, default or noncompliance, or any acquiescence therein, or of or in any similar breach,
default or noncompliance thereafter occurring. It is further agreed that any waiver, permit,
consent or approval of any kind or character on any Holder’s part of any breach, default or
noncompliance under this Agreement or any waiver on such Holder’s part of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either

-20-

 

under this Agreement, by law or
otherwise afforded to any party, shall be cumulative and not alternative.

          10.11 Notices. (a) Any notice, demand or delivery authorized by this Agreement shall be sufficiently given
or made, when sent by email or facsimile (with a copy thereof sent by first-class mail, postage
prepaid on the same day that the email or facsimile is dispatched) or when sent by overnight
delivery, in each case, addressed to any Holder at such Holder’s address shown on the register of
the Company and to the Company, WLR-IV or Parallel Employee Fund as follows:

	 	 	 
	If to the Company:

	 	The Greenbrier Companies, Inc.
	 

	 	One Centerpointe Drive, Suite 200
	 

	 	Lake Oswego, Oregon 97035
	 

	 	Fax: (503) 684-7553
	 

	 	Email: Martin.Baker@gbrx.com
	 

	 	Attention: General Counsel
	 
	 	 
	With a copy to:

	 	Wilson Sonsini Goodrich & Rosati, Professional Corporation
	 

	 	650 Page Mill Road
	 

	 	Palo Alto, California 94304
	 

	 	Fax: (640) 493-6811
	 

	 	Email: jfore@wsgr.com
	 

	 	Attention: John A. Fore
	 
	 	 
	If to WLR-IV or
Parallel Employee
Fund:

	 	WLR Recovery Fund IV, L.P.
	 

	 	1166 Avenue of the Americas, 27th Floor
	 

	 	New York, New York 10036
	 

	 	Fax: (212) 317-4891
	 

	 	Email: wlross@wlross.com
	 

	 	Attention: Wilbur L. Ross, Jr.
	 
	With a copy to:

	 	Jones Day
	 

	 	222 East 41st Street

	 

	 	New York, New York 10017
	 

	 	Fax: (212) 326-3800
	 

	 	Email: raprofusek@jonesday.com
	 

	 	Attention: Robert A. Profusek

or to such other address as shall have been furnished to the party giving or making such notice,
demand or delivery.

               (b) Any notice required to be given by the Company to the Holders pursuant to this Agreement,
shall be made in accordance with Section 10.11(a), to the Holders at their respective addresses as
set forth on their respective signature page at the time such Holder entered into this Agreement
and became a Holder or as otherwise shown on the register of the

-21-

 

Company. Any notice that is sent
in the manner herein provided shall be conclusively presumed to have been duly given when as set
forth in Section 10.11(a), whether or not the Holder receives the notice.

          10.12 Interpretation. The words “hereof”, “herein” and “hereunder” and words of like import used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. When reference is made in this Agreement to an Article or a Section, such reference
shall be to an Article or Section of this Agreement, unless otherwise indicated. The descriptive
headings of the several Articles and Sections of this Agreement are inserted for convenience and
shall not control or affect the meaning or construction of any of the provisions hereof. The
language used in this Agreement shall be deemed to be the language chosen by the parties hereto to
express their mutual intent, and no rule of strict construction shall be applied against any party.
Whenever the context may require, any pronouns used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns
shall include the plural, and vice versa. Any reference to any federal, state, local or foreign
statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder,
unless the context requires otherwise, and shall include all amendments of the same and any
successor or replacement statutes and regulations. All references to agreements shall mean such
agreement as may be amended or otherwise modified from time to time. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the
words “without limitation.”

          10.13 Governing Law. This Agreement and each Warrant Certificate issued hereunder and all rights arising
hereunder shall be governed by the internal laws of the State of New York.

          10.14 Counterparts. This Agreement may be executed in any number of counterparts (and by different parties
hereto in different counterparts, including Persons who become a party to this Agreement after the
date hereof), each or which shall be deemed an original, but all of which together constitute one
and the same instrument.

[Remainder of Page Intentionally Left Blank.]

-22-

 

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

	 	 	 	 	 	 	 
	 	 	THE GREENBRIER COMPANIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark J. Rittenbaum	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Mark J. Rittenbaum	 	
	 

	 	 	 	Title: Executive Vice President, Treasurer 

           and Chief Financial Officer	 	
	 
	 	 	 	 	 	 
	 	 	WLR RECOVERY FUND IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	WLR Recovery Associates IV LLC,

its General Partner	 	 
	 

	 	By:
	 	WL Ross Group, L.P.,

its Managing Member	 	 
	 

	 	By:
	 	El Vedado, LLC,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael J. Gibbons	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Michael J. Gibbons	 	 
	 

	 	 	 	Title: Manager	 	 
	 
	 	 	 	 	 	 
	 	 	WLR IV PARALLEL ESC, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	WLR Recovery Associates IV LLC,

its Attorney-in-fact	 	 
	 

	 	By:
	 	WL Ross Group, L.P.,

its Managing Member	 	 
	 

	 	By:
	 	El Vedado, LLC,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. Gibbons	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Michael J. Gibbons	 	 
	 

	 	 	 	Title: Manager	 	 

[Warrant Agreement]

 

 

EXHIBIT A

FORM OF FACE OF WARRANT CERTIFICATE

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE
STATE SECURITIES LAWS OR BLUE SKY LAWS.

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE SUBJECT TO RESTRICTIONS ON VOTING,
TRANSFER AND CERTAIN OTHER LIMITATIONS SET FORTH IN THAT CERTAIN INVESTOR RIGHTS AND RESTRICTIONS
AGREEMENT, DATED AS OF JUNE 10, 2009, AMONG THE GREENBRIER COMPANIES, INC., WLR RECOVERY FUND IV,
L.P., WLR IV PARALLEL ESC, L.P., WL ROSS & CO. LLC AND EACH OF THE OTHER HOLDERS FROM TIME TO TIME
PARTY THERETO, COPIES OF WHICH INVESTOR RIGHTS AND RESTRICTIONS AGREEMENT ARE ON FILE AND AVAILABLE
AT THE PRINCIPAL OFFICE OF THE GREENBRIER COMPANIES, INC.

     THE HOLDER HEREOF, BY VIRTUE OF ITS ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY
ARTICLES 3 AND 5 OF THE INVESTOR RIGHTS AND RESTRICTIONS AGREEMENT AND THE WARRANT AGREEMENT AND
THIS CERTIFICATE.

WARRANTS TO PURCHASE COMMON STOCK

OF THE GREENBRIER COMPANIES, INC.

			
	 	 	 
	No.                    
	 	Certificate for                      Warrants

     This certifies that [HOLDER], or registered assigns, is the registered holder of the number of
Warrants set forth above. Each Warrant entitles the holder thereof (a “Holder”), subject
to the provisions contained herein and in the Warrant Agreement (as defined below) and the Rights
and Restrictions Agreement (as defined below), to purchase from The Greenbrier Companies, Inc. (the
“Company”), one share of the Company’s common stock, no par value (“Common Stock”),
subject to adjustment upon the occurrence of certain events specified herein and in the Warrant
Agreement, at the exercise price (the “Exercise Price”) of $6.00 per share, subject to
adjustment upon the occurrence of certain events specified herein and in the Warrant Agreement.
Capitalized terms not otherwise defined herein shall have the meanings set forth in the Warrant
Agreement.

A-1

 

     This Warrant Certificate is issued pursuant to, and in accordance with, the Warrant Agreement,
dated as of June 10, 2009 (the “Warrant Agreement”), among the Company, WLR Recovery Fund
IV, L.P. (“WLR-IV”) and WLR IV Parallel ESC, L.P. (“Parallel Employee Fund”) and
each of the other Holders from time to time party thereto, and is subject to the terms and
provisions contained in the Warrant Agreement, as well as certain terms and provisions of the
Investor Rights and Restrictions Agreement, dated as of June 10, 2009 (the “Rights and
Restrictions Agreement”), among the Company, WLR-IV, Parallel Employee Fund, WL Ross & Co. LLC
and each of the Holders from time to time party thereto, to all of which terms and provisions the
Holder of this Warrant Certificate consents by acceptance hereof. The Warrant Agreement and the
Rights and Restrictions Agreement are hereby incorporated herein by reference and made a part
hereof. Reference is hereby made to the Warrant Agreement and the Rights and Restrictions
Agreement for a full statement of the respective rights, limitations of rights, duties, obligations
and immunities thereunder of the Company, WLR-IV, Parallel Employee Fund and the Holders.

     This Warrant Certificate shall terminate and be void as of the close of business on the
Expiration Date.

     As provided in the Warrant Agreement and subject to the terms and conditions therein set
forth, the Warrants shall be exercisable from time to time on any Business Day and ending on the
Expiration Date.

     All shares of Common Stock issuable by the Company upon the exercise of Warrants shall, upon
such issue, be duly and validly issued and fully paid and non-assessable.

     In order to exercise a Warrant, the registered Holder hereof must surrender this Warrant
Certificate at the corporate office of the Company, with the Exercise Subscription Form on the
reverse hereof duly executed by the Holder hereof, with signature guaranteed as therein specified,
together with, if applicable, any required payment in full of the Exercise Price then in effect for
the share(s) of Underlying Common Stock as to which the Warrant(s) represented by this Warrant
Certificate are submitted for exercise, all subject to the terms and conditions hereof and of the
Warrant Agreement and the Rights and Restrictions Agreement. Any cash payment of the Exercise
Price shall be by certified or official bank check drawn on a New York City bank payable to the
order of the Company.

     This Warrant Certificate and all rights hereunder are transferable by the registered Holder
hereof, subject to the terms of the Warrant Agreement and the Rights and Restrictions Agreement, in
whole or in part, on the register of the Company, upon surrender of this Warrant Certificate for
registration of transfer at the office of the Company, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company duly executed by, the Holder
hereof or his attorney duly authorized in writing, with signature guaranteed as specified in the
attached Form of Assignment on the reverse hereof. Upon any partial transfer, the Company shall
issue and deliver to such Holder a new Warrant Certificate or Certificates with respect to any
portion not so transferred. PLEASE SEE THE WARRANT AGREEMENT AND THE RIGHTS AND RESTRICTIONS
AGREEMENT FOR APPLICABLE RESTRICTIONS ON TRANSFER OF THIS WARRANT CERTIFICATE.

A-2

 

     No service charge shall be made to a Holder for any registration of transfer or exchange of
the Warrant Certificates, but the Company may require payment of a sum sufficient to cover any tax
or other governmental charge payable in connection therewith.

     Subject to compliance with any restrictions on transfer under applicable law and the Rights
and Restrictions Agreement, each taker and holder of this Warrant Certificate by taking or holding
the same, consents and agrees that this Warrant Certificate when duly endorsed in blank shall be
deemed negotiable and that when this Warrant Certificate shall have been so endorsed, the Holder
hereof may be treated by the Company and all other Persons dealing with this Warrant Certificate as
the absolute owner hereof for any purpose and as the Person entitled to exercise the rights
represented hereby, or to the transfer hereof on the register of the Company, any notice to the
contrary notwithstanding, but until such transfer on such register, the Company may treat the
registered Holder hereof as the owner for all purposes.

     This (a) Warrant Certificate and the Warrant Agreement and (b) the Rights and Restrictions
Agreement are subject to amendment as provided in the Warrant Agreement and the Rights and
Restrictions Agreement, respectively.

     Copies of the Warrant Agreement and the Rights and Restrictions Agreement are on file at the
office of the Company and may be obtained by writing to the Company at the following address: One
Centerpointe Drive, Suite 200, Lake Oswego, Oregon 97035, Attention: General Counsel.

     This Warrant Certificate shall not be valid for any purpose until it shall have been signed by
the Company.

Dated:                     , 2009

	 	 	 	 	 
	 	THE GREENBRIER COMPANIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-3

 

FORM OF REVERSE OF WARRANT CERTIFICATE

EXERCISE SUBSCRIPTION FORM

(To be executed only upon exercise of Warrant)

To: The Greenbrier Companies, Inc. (the “Company”)

     The undersigned irrevocably exercises                      of the Warrants for the purchase of
one share (subject to adjustment in accordance with the Warrant Agreement) of the Company’s common
stock, no par value (“Common Stock”), of the Company for each Warrant represented by the
Warrant Certificate and (a) herewith makes payment of $                     (such payment being by certified
or official bank check drawn on a New York City bank payable to the order of                     )
or cancellation of indebtedness in accordance with Section 3.4(a) or (b) surrenders such Warrants
for exercise of                                 shares of Common Stock pursuant to Section 3.4(b), all at the Exercise
Price and on the terms and conditions specified in the within Warrant Certificate and the Warrant
Agreement, surrenders this Warrant Certificate and all right, title and interest therein to the
Company and directs that the shares of Common Stock deliverable upon the exercise of such Warrants
be registered in the name and delivered at the address specified below. Capitalized terms not
otherwise defined herein shall have the meanings set forth in the Warrant Agreement.

     Notwithstanding anything to the contrary contained herein, this Exercise Subscription Form
shall constitute a representation by the Holder submitting this Exercise Subscription Form that,
after giving effect to the exercise provided for in this Exercise Subscription Form, but subject to
Section 3.2(c), the undersigned holder believes in good faith (based on the Company’s publicly
available SEC filings) that the exercise contemplated hereby shall not result in such holder or any
of its Affiliates (or, if the holder is a member of the WLR Group, shall not result in the WLR
Group) becoming an “Acquiring Person” as that term is defined and calculated in accordance with the
Stockholder Rights Agreement as amended as of the date hereof and without giving effect to any
later amendment thereto (to the extent that such later amendment lowers or has the effect of
lowering the applicable percentage of Beneficial Ownership for purposes of calculating whether any
such Person is an “Acquiring Person”) or termination thereof; provided, further,
however, that in the event the exercise contemplated hereby does result in the issuance of
Excess Shares, the undersigned acknowledges and agrees that it and such shares shall be subject to
and bound by terms of the Voting Agreement set forth in Section 4.9 of the Rights and Restrictions
Agreement with respect to any such Excess Shares and agrees to comply therewith as if a party
thereto (regardless of whether the undersigned is a party thereto).

     Subject to Section 3.2(b) of the Warrant Agreement, this Exercise Subscription Form shall
constitute a representation by the Holder submitting this Exercise Subscription Form that the
Holder understands and agrees that the Company shall not issue any shares of Common Stock upon
exercise of the Warrant and the Holder shall not be entitled to receive any shares of Common Stock
if the issuance of such shares of Common Stock would exceed that aggregate number of shares of
Common Stock which the Company may issue upon exercise of the

 

 

Warrants pursuant to the Company’s obligations under the applicable rules or regulations of
the Applicable Exchange.

Date:                     

	 	 	 
	 

	 	*
	 

	 	 
	 

	 	(Signature of Owner)
	 
	 	 
	 

	 	 
	 

	 	(Street Address)
	 
	 	 
	 

	 	 
	 

	 	(City)                                           (State) (Zip Code)
	 
	 	 
	 

	 	Signature Guaranteed by:
	 
	 	 
	 

	 	 
	 
	 	 
	Securities to be issued to:
	 	 
	 
	 	 
	Please insert social security or identifying number:
	 	 
	 

	 	 
	 
	 	 
	Name:
	 	 
	 

	 	 
	 
	 	 
	Street Address:
	 	 
	 

	 	 
	 
	 	 
	City, State and Zip Code:
	 	 
	 

	 	 
	 
	 	 
	Any unexercised Warrants evidenced by the within Warrant Certificate to be issued to:
	 
	 	 
	Please insert social security or identifying number:
	 	 
	 

	 	 
	 
	 	 
	Name:
	 	 
	 

	 	 
	 
	 	 
	Street Address:
	 	 
	 

	 	 
	 
	 	 
	City, State and Zip Code:
	 	 
	 

	 	 

 

			
	*	 	The signature must correspond with the name as written
upon the face of the within Warrant Certificate in every particular, without
alteration or enlargement or any change whatever, and must be guaranteed by a
financial institution satisfactory to the Company.

 

 

FORM OF ASSIGNMENT

     FOR VALUE RECEIVED the undersigned registered Holder of the within Warrant Certificate hereby
sells, assigns and transfers unto the Assignee(s) named below (including the undersigned with
respect to any Warrants constituting a part of the Warrants evidenced by the within Warrant
Certificate not being sold, assigned or transferred hereby) all of the right of the undersigned
under the within Warrant Certificate, with respect to the number of Warrants set forth below:

	 	 	 	 	 	 	 
	 	 	 	 	Social Security	 	 
	 	 	 	 	or other	 	 
	 	 	 	 	Identifying	 	 
	 	 	 	 	Number of	 	Number of
	Names of Assignees	 	Address	 	Assignee(s)	 	Warrants
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

and does hereby irrevocably constitute and appoint                      the undersigned’s attorney to make
such transfer on the books of                      maintained for that purpose, with full power of
substitution in the premises.

Date:                     

	 	 	 
	 

	 	*
	 

	 	 
	 

	 	(Signature of Owner)
	 
	 	 
	 

	 	 
	 

	 	(Street Address)
	 
	 	 
	 

	 	 
	 

	 	(City)                     (State) (Zip Code)
	 
	 	 
	 

	 	Signature Guaranteed by:
	 
	 	 
	 

	 	 

 

			
	*	 	The signature must correspond with the name as written
upon the face of the within Warrant Certificate in every particular, without
alteration or enlargement or any change whatever, and must be guaranteed by a
financial institution satisfactory to the Company.exv4w3

Exhibit
4.3

INVESTOR RIGHTS AND RESTRICTIONS AGREEMENT

AMONG

THE GREENBRIER COMPANIES, INC.,

WLR RECOVERY FUND IV, L.P.,

WLR IV PARALLEL ESC, L.P.,

WL ROSS & CO. LLC

(solely with respect to Section 4.8 and 7.3 through 7.12)

AND

THE OTHER HOLDERS FROM TIME TO TIME PARTY HERETO

Dated as of June 10, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	1.	 	DEFINITIONS	 	 	1	 
	 
	 	1.1.	 	Definitions	 	 	1	 
	2.	 	CORPORATE GOVERNANCE RIGHTS	 	 	7	 
	 
	 	2.1.	 	Board Designee	 	 	7	 
	 
	 	2.2.	 	Confidentiality	 	 	9	 
	 
	 	2.3.	 	Rights Solely for WLR	 	 	10	 
	3.	 	TRANSFERS	 	 	10	 
	 
	 	3.1.	 	Transfer Restrictions	 	 	10	 
	 
	 	3.2.	 	Legends; Securities Act Compliance	 	 	14	 
	 
	 	3.3.	 	Additional Matters	 	 	15	 
	4.	 	CERTAIN COVENANTS AND OTHER AGREEMENTS	 	 	15	 
	 
	 	4.1.	 	Standstill	 	 	15	 
	 
	 	4.2.	 	Anti-Takeover Provisions	 	 	18	 
	 
	 	4.3.	 	Restrictions on Hedging	 	 	19	 
	 
	 	4.4.	 	Acquisition of Additional Voting Stock	 	 	19	 
	 
	 	4.5.	 	Election of Directors; Quorum	 	 	19	 
	 
	 	4.6.	 	Notices Regarding Ownership	 	 	20	 
	 
	 	4.7.	 	Stockholder Rights Agreement	 	 	20	 
	 
	 	4.8.	 	Investment Committee	 	 	20	 
	 
	 	4.9.	 	Voting Agreement	 	 	22	 
	 
	 	4.10.	 	Rights Solely for WLR	 	 	22	 
	5.	 	REGISTRATION RIGHTS	 	 	23	 
	 
	 	5.1.	 	Registration	 	 	23	 
	 
	 	5.2.	 	Registration Procedures, Rights and Obligations	 	 	25	 
	 
	 	5.3.	 	Expenses of Registration	 	 	28	 
	 
	 	5.4.	 	Indemnification; Contribution	 	 	28	 
	 
	 	5.5.	 	Representations, Warranties and Indemnities to Survive	 	 	29	 
	 
	 	5.6.	 	Information by the Selling Holders	 	 	29	 
	 
	 	5.7.	 	Market Standoff Agreement	 	 	29	 

-i- 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	5.8.	 	Termination of Registration Rights	 	 	30	 
	 
	 	5.9.	 	Transfer of Registration Rights	 	 	30	 
	6.	 	COMPANY SECURITIES OFFERINGS	 	 	30	 
	 
	 	6.1.	 	Stock Issuances Below Minimum Price	 	 	30	 
	 
	 	6.2.	 	Participation Rights	 	 	31	 
	 
	 	6.3.	 	Certain Rights Offerings	 	 	33	 
	 
	 	6.4.	 	Termination	 	 	33	 
	7.	 	MISCELLANEOUS	 	 	34	 
	 
	 	7.1.	 	Termination	 	 	34	 
	 
	 	7.2.	 	Expenses	 	 	34	 
	 
	 	7.3.	 	Successors and Assigns; Assignment	 	 	34	 
	 
	 	7.4.	 	No Third Party Beneficiaries	 	 	34	 
	 
	 	7.5.	 	Entire Agreement	 	 	34	 
	 
	 	7.6.	 	Severability	 	 	35	 
	 
	 	7.7.	 	Amendment and Waiver	 	 	35	 
	 
	 	7.8.	 	Delays or Omissions	 	 	35	 
	 
	 	7.9.	 	Notices	 	 	35	 
	 
	 	7.10.	 	Interpretation	 	 	36	 
	 
	 	7.11.	 	Governing Law	 	 	37	 
	 
	 	7.12.	 	Counterparts	 	 	37	 

-ii- 

 

INVESTOR RIGHTS AND RESTRICTIONS AGREEMENT

     THIS INVESTOR RIGHTS AND RESTRICTIONS AGREEMENT (this “Agreement”) is entered as of
June 10, 2009, among The Greenbrier Companies, Inc., an Oregon corporation (the “Company”),
and WLR Recovery Fund IV, L.P., a Delaware limited partnership (“WLR-IV”), WLR IV Parallel
ESC, L.P., a Delaware limited partnership (“Parallel Employee Fund”), WL Ross & Co. LLC, a
Delaware limited liability company (which shall be a party hereto solely for purposes of Sections
4.8 and 7.3 through 7.12) (“WLRCo.”), and each of the other Holders (as defined below) from
time to time party hereto.

RECITALS

     WHEREAS, the Company has entered into that certain Credit Agreement, dated as of the date
hereof (the “Credit Agreement”), with WLRCo., as administrative agent, and WLR-IV and
Parallel Employee Fund as the initial “Holders” thereunder; and

     WHEREAS, simultaneously herewith and in order to induce WLR-IV and Parallel Employee Fund to
enter into the Credit Agreement, the Company is entering into a Warrant Agreement (the “Warrant
Agreement”) pursuant to which the Company shall issue and deliver warrant certificates
evidencing warrants (the “Warrants”) to purchase up to an initial aggregate maximum of
3,377,903 shares of the Common Stock, subject to adjustment as set forth therein, all as
subject to and in conformity with the terms of the Warrant Agreement; and

     WHEREAS, the parties hereto desire to enter into this Agreement with respect to certain
arrangements relating to the Company, the Warrant Agreement, the Warrant certificates, the Warrants
and the Underlying Common Stock; and

     WHEREAS, the applicable parties are entering into the transactions contemplated by the Warrant
Agreement and this Agreement in part to pursue potentially mutually beneficial investment
opportunities, whether made through the Company and its Subsidiaries, a joint venture or otherwise.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
contained herein, and intending to be legally bound hereby, the parties hereby agree as follows:

     1. DEFINITIONS

          1.1. Definitions. Unless otherwise specified herein, as used in this Agreement, the following terms shall
have the following meanings:

          “Additional Acquired Shares” has the meaning set forth in Section 3.1(a).

          “Affiliate” means, as to any Person (the “subject Person”), any other Person
which, directly or indirectly, is in control of, is controlled by or is under common control with the subject Person. A Person shall be deemed to control another Person if the controlling
Person possesses, directly or indirectly, the power to direct or cause the direction of the
management

 

 

and policies of the other Person, whether through the ownership of voting securities, by
contract or otherwise; provided, however, that, with respect to any member of the
WLR Group, “Affiliate” shall not include any Invesco Entities. “Affiliated” shall
have the correlative meaning.

          “Agreement” has the meaning set forth in the preamble of this Agreement.

          “Applicable Exchange” has the meaning assigned to such term in the Warrant Agreement.

          “Beneficial Owner”, “Beneficially Own” and “Beneficial Ownership” have
the meanings set forth in Rule 13d-3 under the Exchange Act, including the provision that any
member of a “group” shall be deemed to have beneficial ownership of all securities beneficially
owned by other members of the group, and a Person’s beneficial ownership of securities shall be
calculated in accordance with the provisions of such Rule; provided, however, that
a Person shall be deemed to be the beneficial owner of any security which may be acquired by such
Person whether within 60 days or thereafter, upon the conversion, exchange or exercise of any
rights, options, warrants or similar securities to subscribe for, purchase or otherwise acquire (x)
capital stock of any Person or (y) debt or other evidences of indebtedness, capital stock or other
securities directly or indirectly convertible into, or exercisable or exchangeable for, such
capital stock of such Person. Unless specified otherwise, all calculations of Beneficial Ownership
shall be made by including securities that the Person (and any group of which such Person is a
member), but not any other Person (except member(s) of a group of which such Person is a member),
has the right to acquire in both the numerator and the denominator. Notwithstanding the foregoing,
for purposes of this Agreement and the Warrant Agreement, the Beneficial Ownership of Common Stock
by WLR-IV, Parallel Employee Fund and the other members of the WLR Group (and the related terms
“Beneficial Owner” and “Beneficially Own”) shall be calculated as set forth in Sections 1(a)(y)(D),
(E) and (F) of the Stockholder Rights Agreement as amended as of the date hereof and without giving
effect to any later amendments thereto or termination thereof.

          “Board” has the meaning assigned to such term in the Warrant Agreement.

          “Board Designee” has the meaning assigned to such term in Section 2.1(a).

          “Business” has the meaning assigned to such term in Section 4.8(a).

          “Business Day” has the meaning assigned to such term in the Warrant Agreement.

          “Capital Stock” means any and all shares of capital stock of the Company, including
any and all shares of Common Stock.

          “Change of Control” means an event or series of events by which (i) any Person
acquires Beneficial Ownership of 50% or more of the outstanding shares of Common Stock, (ii) all or
substantially all of the consolidated assets of the Company are sold, leased, exchanged or
Transferred to any Person or group of Persons, (iii) the Company is consolidated, merged,
amalgamated, reorganized or otherwise enters into a similar transaction in which it is
combined with another Person, unless the Persons who Beneficially Own the outstanding Voting Stock
of

-2-

 

the Company immediately before consummation of the transaction Beneficially Own a majority of
the outstanding Voting Stock of the combined or surviving entity immediately thereafter in
substantially the same proportion among such Persons as prior to giving effect to such transaction,
or (iv) the holders of Capital Stock approve of any plan or proposal for the liquidation or
dissolution of the Company.

          “Common Stock” means the Common Stock, no par value per share, of the Company and any
securities issued in respect thereof, or in substitution therefor, in connection with any stock
split, dividend or combination, or any reclassification, recapitalization, merger, consolidation,
exchange or other similar reorganization.

          “Company” has the meaning assigned to such term in the preamble of this Agreement,
together with its successors and permitted assigns.

          “Competitor” means any Person identified in good faith by the Company as one of its
significant competitors in North America or Europe in a certification previously delivered by the
Company to WLR-IV and signed by the Chief Executive Officer or Chief Financial Officer of the
Company, as such certification is supplemented or amended from time to time, with the consent of
WLR-IV, which consent shall not be unreasonably withheld; provided that, for the purposes
of Section 3.1(b)(iv) such Person was identified as such prior to the applicable Transfer of
Company securities.

          “Convertible Securities” means all securities exercisable or exchangeable for, or
convertible into, Voting Stock.

          “Credit Agreement” has the meaning assigned to such term in the recitals to this
Agreement.

          “Demand Registrable Securities” has the meaning assigned to such term in Section
5.1(c).

          “Demand Registration Statement” has the meaning assigned to such term in Section
5.1(c).

          “Demand Request” has the meaning assigned to such term in Section 5.1(c).

          “Designee Termination Date” has the meaning assigned to such term in Section 2.1(d).

          “Director” means any member of the Board.

          “Excess Shares” has the meaning assigned to such term in the Warrant Agreement.

          “Exchange Act” has the meaning assigned to such term in the Warrant Agreement.

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          “group” means a group of Persons within the meaning of Section 13 of the Exchange Act
and Regulation 13D-G thereunder.

          “Hedging Transaction” means any short sale (whether or not against the box) or any
purchase, sale or grant of any right (including any put or call option, swap or other derivative
transaction whether settled in cash or securities) to obtain a “short”, “call” or “put equivalent
position” or total equity return swap with respect to the Common Stock.

          “Holder” means WLR-IV, Parallel Employee Fund and the other holders from time to time
of Warrants or the Underlying Common Stock on the date hereof or who become a party to this
Agreement pursuant to and in accordance with a Transfer permitted under Article 3;
provided, that (a) for purposes of Article 5 of this Agreement, “Holders” means only those
parties that hold shares of Underlying Common Stock that are Registrable Securities and (b)
Transferees who acquire Underlying Common Stock or Warrants in accordance with Section 3.1 of this
Agreement, who are not members of the WLR Group and who are required to become “Holders” for
purposes of this Agreement, shall be subject to, and entitled to the benefits of, Article 3 (but
only to the extent set forth therein applicable to such Transferee) and Article 5 hereof but shall
not be subject to, or have the benefits of, Article 2 or 4 hereof.

          “Indemnified Party” has the meaning assigned to such term in Section 5.4(c).

          “Indemnifying Party” has the meaning assigned to such term in Section 5.4(c).

          “Initial WLR Designees” has the meaning assigned to such term in Section 2.1(a).

          “Invesco Entities” has the meaning assigned to such term in Section 1(a)(y)(E) of the
Stockholder Rights Agreement as amended as of the date hereof and without giving effect to any
later amendment or termination thereof.

          “Investment Committee” has the meaning assigned to such term in Section 4.8(a).

          “Investment Opportunities” has the meaning assigned to such term in Section 4.8(a).

          “Lock-Up” has the meaning assigned to such term in Section 5.7.

          “Mandatory Black-Out Period” means each period during which Persons are generally
restricted from trading in Common Stock pursuant to the Company’s then-applicable insider trading
policy as from time to time adopted by the Board in good faith.

          “Majority Holders” has the meaning assigned to such term in Section 5.2(c).

          “Managing Underwriters” has the meaning assigned to such term in Section 5.2(c).

          “Market Cut-Back” has the meaning assigned to such term in Section 5.2(d).

          “Minimum Price” has the meaning assigned to such term in Section 6.1.

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          “N&CG Committee” has the meaning assigned to such term in Section 2.1(a).

          “180-Day Limitation” has the meaning assigned to such term in Section 5.2(a).

          “Offering Notice” has the meaning assigned to such term in Section 6.2(b).

          “Parallel Employee Fund” has the meaning assigned to such term in the preamble of this
Agreement.

          “Permitted Transferee” has the meaning assigned to such term in Section 3.1(a).

          “Permitted Representatives” has the meaning assigned to such term in Section 2.2.

          “Person” has the meaning assigned to such term in the Warrant Agreement.

          “Piggyback Notice” has the meaning assigned to such term in Section 5.1(d).

          “Piggyback Registration” has the meaning assigned to such term in Section 5.1(d).

          “Prospectus” shall mean the prospectus relating to the Underlying Common Stock
included in a Registration Statement, as such prospectus may be amended or supplemented from time
to time, in each case including all materials incorporated by reference therein.

          “Purchase Rights” has the meaning assigned to such term in Section 6.3.

          “Registrable Securities” means all or any of the shares of Underlying Common Stock
and, subject to the limitations set forth therein, any shares of Common Stock issued pursuant to
Section 6.2 and 6.3, if applicable; provided, however, that such shares shall cease
to be Registrable Securities (i) when such shares shall have been sold or Transferred pursuant to a
Registration Statement, (ii) when such shares have been Transferred in compliance with Rule 144
under the Securities Act, or are Transferable by a Person who is not an Affiliate of the Company
pursuant to Rule 144 without any volume or manner of sale restrictions thereunder, or (iii) if such
shares shall have ceased to be outstanding.

          “Registration Request” has the meaning assigned such term in Section 5.1(c).

          “Registration Statement” means any Shelf Registration Statement, Demand Registration
Statement or registration statement used in connection with a Piggyback Registration.

          “Restricted Securities” has the meaning assigned such term in Section 3.2(a).

          “SEC” has the meaning assigned to such term in the Warrant Agreement.

          “Securities Act” has the meaning assigned to such term in the Warrant Agreement.

-5-

 

          “Shelf Registration Statement” has the meaning assigned such term in Section 5.1(a).

          “Shelf Request” has the meaning assigned to such term in Section 5.1(a).

          “Standstill Period” means the period beginning on the date hereof and ending on the
earlier of (i) the fifth anniversary of the date hereof and (ii) the date that the WLR Group no
longer has Beneficial Ownership of at least 5% of the Total Current Voting Power of the Company.

          “Stockholder Rights Agreement” means the Rights Agreement, dated as of July 13, 2004,
between the Company and EquiServe Trust Company, N.A., as amended by Amendment No. 1, dated
November 9, 2004, Amendment No. 2, dated February 5, 2005, and Amendment No. 3, dated June 10,
2009, unless the context otherwise requires, as amended or supplemented from time to time, and any
other shareholder rights agreement of the Company commonly known as a “poison pill.”

          “Subsidiary” means, with respect to any party, any corporation, partnership, trust,
limited liability company or other non-corporate business enterprise in which such party (or
another Subsidiary of such party) holds stock or other ownership interests representing (A) more
than 50% of the voting power of all outstanding stock or ownership interests of such entity, (B)
the right to receive more than 50% of the net assets of such entity available for distribution to
the holders of outstanding stock or ownership interests upon a liquidation or dissolution of such
entity, or (C) a general or managing partnership interest in such entity.

          “Third Party” has the meaning assigned to such term in Section 4.1(b)(i).

          “Total Current Voting Power” means at the time of determination of Total Current
Voting Power, the total number of votes which may be cast on the election of Directors at any
meeting at which all classes of Voting Stock are entitled to vote (assuming for this purpose that
all Warrants have been exercised at the applicable time).

          “Tranche Request” has the meaning assigned to such term in Section 5.1(b).

          “Transfer” means, directly or indirectly, to sell, transfer, distribute, assign,
pledge, loan, hedge, encumber, hypothecate or similarly dispose of (by merger, operation of law or
otherwise), either voluntarily or involuntarily, or to enter into any contract, option or other
legally binding commitment with respect to the sale, transfer, distribution, assignment, pledge,
encumbrance, hypothecation or similar disposition of (by merger, operation of law or otherwise),
any Voting Stock, any Convertible Securities, or any interest in any Voting Stock or Convertible
Securities.

          “Underlying Common Stock” has the meaning assigned to such term in the Warrant
Agreement.

          “Voting Stock” means shares of the Common Stock and any other securities of the
Company or its successor having the power generally to vote in the election of members of

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the Board or the equivalent of its successor (but not class voting rights which apply upon the
occurrence of certain events, such as dividend arrearages).

          “Warrant Agreement” has the meaning assigned to such term in the recitals to this
Agreement.

          “Warrants” has the meaning assigned to such term in the recitals to this Agreement.

          “WLR Board Designee” has the meaning assigned to such term in Section 2.1(a).

          “WLR-IV” has the meaning assigned to such term in the preamble of this Agreement.

          “WLRCo.” has the meaning assigned to such term in the preamble of this Agreement.

          “WLR Group” has the meaning assigned to such term in the Warrant Agreement.

     2. CORPORATE GOVERNANCE RIGHTS

          2.1. Board Designee.

          (a) The Company will cause two designees of WLR-IV to be appointed to the Board (the
“Initial WLR Designees”), one of whom shall be a Class I Director and one of whom shall be
a Class II Director, and will cause each such appointment to be effective on the first Business Day
after the date hereof. To the extent required by applicable law, the Company’s articles of
incorporation or by-laws, at the first annual meeting of the Company’s shareholders after the date
hereof, the Company shall propose that the Company’s shareholders ratify the appointment
contemplated hereby of the Initial WLR Designees. In addition, and without limiting the foregoing,
from and after the date hereof through the Designee Termination Date, with respect to any meeting
of the Company’s shareholders at which Class I Directors are elected generally, including the first
annual meeting of the Company’s shareholders after the date hereof (or, if the Board is not
classified at any such time, with respect to any meeting of the Company’s shareholders at which
Directors are elected generally), the Company shall nominate an individual designated by WLR-IV to
the Board (as a Class I Director if at such time the Board is classified) (the “WLR Board
Designee” and collectively, with the Initial WLR Designees, the “Board Designees”);
provided, however, that no nomination of a WLR Board Designee shall be required
unless such nominee shall (i) be qualified and suitable to serve as a member of the Board under all
applicable corporate governance policies and guidelines of the Company and the Board, and
applicable legal, regulatory and Applicable Exchange requirements, (ii) not be (or be a
representative of or otherwise Affiliated with) a Competitor, and (iii) be acceptable to the Board
(including the Nominating and Corporate Governance Committee (the “N&CG Committee”) of the
Board) in its good faith discretion. As of the date hereof, the Board has determined that Wilbur
L. Ross, Jr. and Wendy L. Teramoto are acceptable Board Designees pursuant to the foregoing
criteria. WLR-IV shall take all necessary action to cause any proposed WLR Board Designee (other than Wilbur L. Ross, Jr. and Wendy L. Teramoto, so long as there is
no new development or change in circumstance affecting the designation of either of them that

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would reasonably cause the Board to review and update the Board’s determination that either of them would
be an acceptable WLR Board Designee) to make himself or herself reasonably available for
interviews, to consent to such reference and background checks or other investigations and to
provide such information as the Board or the N&CG Committee may reasonably request. In addition,
each proposed WLR Board Designee shall provide such information necessary to determine whether the
proposed WLR Board Designee is independent from the Company under various requirements and
institutional investor guidelines and such other information necessary to determine any disclosure
obligations of the Company as the Board or the N&CG Committee may reasonably request. The Company
agrees to use the same efforts to cause the WLR Board Designee to be elected to the Board (and to
cause the appointment of the Initial WLR Designees to be ratified as described above) as it uses to
cause other nominees of the Board to be elected and, once elected or ratified, as applicable, each
Board Designee shall serve until his or her respective successor is elected and qualified or until
his or her earlier death, disability or resignation or removal by the shareholders of the Company.
Provided that the WLR Board Designee then meets the requirements set forth in the third sentence of
this Section 2.1(a) and the Designee Termination Date has not yet occurred, the Company shall
nominate such WLR Board Designee for re-election as a Director at the end of each term of such WLR
Board Designee as part of the slate proposed by the Company that is included in the proxy statement
(or consent solicitation or similar document) of the Company relating to the election of the Board.
In the event that the WLR Board Designee ceases to be a member of the Board, so long as the
Designee Termination Date has not occurred, WLR-IV may select another individual to fill the
vacancy created thereby and, if the Board determines that such individual meets the criteria set
forth in the third sentence of this Section 2.1(a), such individual shall become the WLR Board
Designee and shall be appointed to fill such vacancy.

          (b) The Board Designees shall be subject to the policies and requirements of the Company and
its Board, including the Corporate Governance Guidelines of the Board and the Company’s Business
Conduct Policy, and shall comply with the Company’s insider trading policy, in a manner consistent
with the general application of such policies and requirements to other members of the Board. The
Company shall indemnify the Board Designees and provide the Board Designees with director and
officer insurance to the same extent it indemnifies and provides insurance for the other members of
the Board pursuant to its organizational documents, applicable law or otherwise. The Company shall
pay the Board Designees customary compensation and benefits provided to other Directors who are not
employees of the Company and shall reimburse the Board Designees for their reasonable out-of-pocket
expenses incurred for the purpose of attending meetings of the Board or committees thereof, in
accordance with the Company’s general reimbursement policy in effect from time to time.

          (c) Prior to the Designee Termination Date, if no Board Designee is currently serving on the
Board, WLR-IV shall have the right to designate a representative who may attend meetings of the
Board and any Board committee meetings (whether such meetings are held in person, telephonically or
by other means) in a non-voting, observer capacity and the Company shall provide such
representative with copies of all notices, minutes, consents and other materials that it provides
Directors at the same time as delivered to such Directors; provided that the Company may
exclude such representative from any meeting or portions thereof and exclude such materials or portions thereof (as long as Company notifies WLR-IV that such materials
have been excluded and certifies that it has determined in good faith that such exclusion is

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reasonably necessary to (i) preserve attorney-client privilege or (ii) protect against disclosure
of information related to the Warrants or any other matter which any member of the WLR Group has an
interest that is different from the interests of shareholders generally). As a condition precedent
to becoming a non-voting observer, each individual designated as a representative of WLR-IV
pursuant to this Section 2.1(c) shall execute a confidentiality agreement with the Company on
customary terms. Any Board observation rights granted pursuant to this Section 2.1(c) shall
terminate and be of no further force or effect upon the earlier to occur of (i) a Board Designee
again serving on the Board and (ii) the Designee Termination Date.

          (d) All obligations of the Company pursuant to this Section 2.1 shall terminate upon the first
to occur of: (i) the fifth anniversary of the date of this Agreement, (ii) the date that the WLR
Group no longer has Beneficial Ownership of at least 5% of the Total Current Voting Power of the
Company, (iii) any Person shall have acquired Beneficial Ownership of 50% or more of the
outstanding shares of Common Stock, (iv) the Company is consolidated, merged, amalgamated,
reorganized or otherwise enters into a similar transaction in which it is combined with another
Person, unless the Persons who Beneficially Own the outstanding Voting Stock of the Company
immediately before consummation of the transaction Beneficially Own a majority of the outstanding
Voting Stock of the combined or surviving entity thereafter in substantially the same proportion
among such Persons as prior to giving effect to such transaction, (v) WLR-IV irrevocably waives and
terminates in writing, on behalf of itself and the other members of the WLR Group, all of its and
their rights under this Section 2.1, or (vi) WLR-IV, Parallel Employee Fund or any Permitted
Transferee has breached the terms of this Agreement in any material respect and, with respect to
breaches that are curable, such member of the WLR Group does not cure any such breach within 30
days of written notice of such breach from the Company (the date of such termination the
“Designee Termination Date”). For avoidance of doubt, any breach by any member of the WLR
Group of Sections 4.1, 4.5 or 4.9 shall be deemed material and not curable for purposes of the
foregoing clause (vi).

          (e) Each of WLR-IV, Parallel Employee Fund and each Permitted Transferee shall cause any WLR
Board Designee to resign, if requested by the Company, from the Board effective upon an event
described in clause (iii), (iv) or (vi) of Section 2.1(d). Each of WLR-IV, Parallel Employee Fund
and each Permitted Transferee agrees that the obligations imposed on them in this Section 2.1(e)
are special, unique and of an extraordinary character, and that, in the event of breach by any of
them or a WLR Board Designee of this Section 2.1(e), damages would not be an adequate remedy and
the Company shall be entitled to specific performance and injunctive and other equitable relief in
addition to any other remedy to which it may be entitled, at law or in equity; and each of WLR-IV,
Parallel Employee Fund and each Permitted Transferee further agrees to waive any requirement for
the securing or posting of any bond in connection with the obtaining of any such injunctive or
other equitable relief.

          2.2. Confidentiality. Each of WLR-IV, Parallel Employee Fund and each Permitted Transferee agrees, and shall
cause each of its Affiliates, to (i) keep confidential all proprietary or non-public information of
the Company and its Subsidiaries received by participation in the activities of the Board (whether from a Board Designee, non-voting observer or otherwise) or otherwise received by it
from the Company, its Subsidiaries or their respective representatives, or any member of the WLR
Group or its representatives, (ii) not disclose or reveal any such information to any Person
without the prior written consent of the Company

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other than to those of WLR-IV’s, Parallel Employee Fund’s, each Permitted Transferee’s or their respective Affiliates’ directors, general partner and
officers, attorneys, accountants and financial advisors (“Permitted Representatives”) whom
such Person determines in good faith need to know such information for the purpose of evaluating,
monitoring or taking any other action with respect to the investment by the members of the WLR
Group in the Warrants or Underlying Common Stock, and (iii) cause those Permitted Representatives
to observe the terms of this Section 2.2; provided that nothing herein shall prevent
WLR-IV, Parallel Employee Fund, a Permitted Transferee or any of their respective Affiliates from
disclosing any information that (1) is or becomes generally available to the public in accordance
with law other than (A) as a result of any action or inaction by WLR-IV, Parallel Employee Fund, a
Permitted Transferee or any of their respective Affiliates, Permitted Representatives or
Subsidiaries, in violation of this Section 2.2, (B) in violation of any other confidentiality
agreement between the Company and such Person, or (C) in violation of any other contractual, legal
or fiduciary duty of such Person, (2) was within WLR-IV’s, Parallel Employee Fund’s or any of their
respective Affiliate’s possession or developed by such Person prior to being furnished with such
information (provided that the source of such information was not bound by a
confidentiality agreement with, or other contractual, legal or fiduciary obligation of
confidentiality to, the Company with respect to such information), (3) becomes available to WLR-IV,
Parallel Employee Fund, a Permitted Transferee or any of their respective Affiliates on a
non-confidential basis from a source other than the Company (provided that such source is
not bound by a confidentiality agreement with, or other contractual, legal or fiduciary obligation
of confidentiality to, the Company with respect to such information), or (4) is required to be
disclosed by law or order (provided that, prior to such disclosure, WLR-IV or such
Affiliate shall, unless prohibited by law or order, promptly notify the Company of any such
disclosure, use reasonable efforts to limit the disclosure requirements of such law or order, and
maintain the confidentiality of such information to the maximum extent permitted by law or order).
Each of WLR-IV, Parallel Employee Fund and each Permitted Transferee shall not, and shall cause
each of its Affiliates not to, contravene applicable insider trading policies and laws as they
relate to the Company.

          2.3. Rights Solely for WLR. The rights and obligations of WLR-IV, Parallel Employee Fund and their Permitted Transferees
pursuant to this Article 2 shall only apply to WLR-IV, Parallel Employee Fund and their Permitted
Transferees, and may not be Transferred to any other Person.

     3. TRANSFERS

          3.1. Transfer Restrictions.

          (a) Until the date that is the fifth anniversary of the date hereof, no Holder may Transfer
any of the Warrants or the Underlying Common Stock, or, in the case of any member of the WLR Group,
any Common Stock acquired by it pursuant to the application of Sections 4.4, 6.2 or 6.3 (the
“Additional Acquired Shares”), except (i) a Transfer (x) to the Company, (y) in a
transaction that has been specifically approved by the Company in writing, or (z) pursuant to a
tender offer or transaction described in clause (iii) or (iv) of the definition of Designee
Termination Date set forth in Section 2.1(d), in each case, approved by the Board, (ii) a Transfer
by a member of the WLR Group to another member of the WLR Group (a “Permitted

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Transferee”), (iii) in the case of the Underlying Common Stock or Additional Acquired Shares, a Transfer to a
Transferee that is not a Holder or an Affiliate of such Transferring Holder pursuant to an
effective registration statement covering the resale of the Restricted Securities, (iv) in the case
of the Underlying Common Stock or Additional Acquired Shares, a Transfer to a Transferee that is
not a Holder or an Affiliate of the Transferring Holder pursuant to Rule 144 under the Securities
Act, (v)(x) a private Transfer to a Person that is not a Permitted Transferee that is otherwise
exempt from the registration requirements of the Securities Act (including any such Transfer in
connection with the Transfer to such Person of a loan interest under and in accordance with the
Credit Agreement), and (y) in the case of a Person that is an individual, as a bona fide gift or
gifts, or by will or intestacy, or solely for charitable purposes, or to any trust, limited
partnership or limited liability company the beneficiaries or members of which are exclusively such
Holder or the immediate family or such Holder (for purposes hereof, “immediate family” shall mean
any relationship by blood, adoption or marriage not more remote than first cousin), provided such
Transfer does not involve a disposition for value), or (vi) a Transfer by a Holder that is a
limited partnership to the limited partners of such Holder (whether in a single transaction or
series of related transactions) in connection with which all or a portion of such securities are
distributed on a basis proportionate with such limited partners’ equity interest in such Holder;
provided, however, that each such Transfer must comply with such of the following
requirements as are applicable:

          (A) in the case of a Transfer pursuant to clause (iv) or (v)(x) of this Section
3.1(a), as a condition precedent to such Transfer, unless otherwise agreed by the
Company in writing, the Transferor delivers an opinion of counsel reasonably
satisfactory to the Company to the effect that the proposed Transfer is exempt from
registration under the Securities Act and applicable state securities laws;

          (B) in the case of a Transfer pursuant to clause (ii) or (v) of this Section
3.1(a), as a condition precedent to such Transfer, the Transferee delivers a written
instrument to the Company, in form and substance reasonably satisfactory to the
Company, confirming that such Transferee is subject to and bound by the obligations
of this Agreement as a “Holder” and, in the case of a Transfer pursuant to clause
(ii) of this Section 3.1(a), as a “Permitted Transferee,” including the obligations
contained in this Article 3 to the extent applicable to such Transferee;
provided, however, that no such Transfer pursuant to clause (ii)
shall relieve the applicable Holder of any of its obligations under this Agreement
(and the applicable member of the WLR Group shall cause any applicable Permitted
Transferee to comply with this Agreement and the Warrant Agreement, as applicable to
it); provided, further, if any Permitted Transferee ceases to be a member of the WLR Group after a Transfer pursuant to clause (ii) of this
Section 3.1(a), such Permitted Transferee must, at or prior to the time at which
such Person ceases to be a member of the WLR Group, Transfer such Transferred
securities to a member of the WLR Group;

          (C) in the case of a Transfer of shares of Underlying Common Stock or
Additional Acquired Shares pursuant to clause (vi) of this Section 3.1(a), the
Transferring Holder delivers a written instrument to the Company in form and

-11-

 

substance reasonably satisfactory to the Company (which such instrument may be
relied upon by the Company for purposes of determining the Holders for purposes of
Article 5 until such time as the Company receives written notice otherwise from the
Transferring Holder or the applicable Transferee) confirming, with respect to each
Transferee, that either:

     (1) (x) such Transferee is not at the time of such Transfer, and has
not been during the three months prior to such Transfer, an Affiliate of the
Company or the Transferring Holder, (y) the Underlying Common Stock was not
issued less than 12 months prior to the Transfer (if the exercise of the
Warrant occurred pursuant to Section 3.4(a) of the Warrant Agreement), and
(z) the Transfer of the Underlying Common Stock received upon the exercise
of such Warrant (if the exercise of the Warrant occurred pursuant to Section
3.4(b) of the Warrant Agreement) did not occur within 12 months of the date
of this Agreement, in which case such Transferee shall not be subject to any
provision of this Agreement and the securities so Transferred shall not be
required to bear the legends set forth in Section 3.2(a); or

     (2) (x) such Transferee is at the time of such Transfer, and/or has
been during the three months prior to such Transfer, an Affiliate of the
Company or the Transferring Holder, (y) the Underlying Common Stock was
issued less than 12 months prior to the Transfer (if the exercise of the
Warrant occurred pursuant to Section 3.4(a) of the Warrant Agreement), or
(z) the Transfer of the Underlying Common Stock occurred within 12 months of
the date of this Agreement (if the exercise of the Warrant occurred pursuant
to Section 3.4(b) of the Warrant Agreement), in which case such securities
so Transferred shall constitute Registrable Securities for purposes of
Article 5 (and such Transferee shall have agreed to be bound by Article 5 of
this Agreement (which, in the case of a Transfer pursuant to clause (vi) of
Section 3.1(a), may be accomplished by the Transferee being deemed to have
so agreed by virtue of its acceptance of the stock certificate evidencing
the applicable equity interest bearing the restrictive legends reflecting
such agreement)) and shall be required to bear the legends set forth in the
first paragraph of Section 3.2(a));

          (D) in the case of a Transfer of Warrants pursuant to clause (vi) of this
Section 3.1(a), the Transferee shall have agreed to be bound by Articles 3 and 5 of
this Agreement and the Warrant Agreement and the Warrant Certificate
so distributed (which, in the case of a Transfer pursuant to clause (vi) of
Section 3.1(a), may be accomplished by the Transferee being deemed to have so agreed
by virtue of its acceptance of the Warrant Certificate evidencing the applicable
equity interest bearing the restrictive legends reflecting such agreement);
provided that, if at the time of exercise of such Warrants the Holder
thereof delivers a written instrument to the Company in form and substance
reasonably satisfactory to the Company confirming the shares of Underlying Common
Stock to be received upon such exercise will not constitute Registrable Securities,
then such

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Transferee shall be automatically released from all obligations, and not
be entitled to any rights, under this Agreement and such shares of Underlying Common
Stock shall not be required to bear the legends set forth in Section 3.2(a).

          (E) no such Transfers may be made prior to the six-month anniversary of the
date hereof, except for a Transfer pursuant to clause (i), (ii) or (v), but in the
case of a Transfer pursuant to clause (v) either solely in connection with the
Transfer to a Person of a loan interest under and in accordance with the Credit
Agreement of this Section 3.1(a) or Transfer pursuant to subclause (y) thereof; and

          (F) no Holder that is subject to (or an Affiliate of a Person that is subject
to) the Company’s then-applicable insider trading policy may Transfer any of the
Warrants or any shares of Underlying Common Stock during any Mandatory Black-Out
Period, except to the extent permitted under such trading policy.

          (b) Notwithstanding the foregoing, no Holder, unless specifically approved by the Company in
writing or pursuant to a tender offer or transaction described in clause (iii) or (iv) of the
definition of Designee Termination Date set forth in Section 2.1(d), in each case, approved by the
Board, may Transfer Warrants or the Underlying Common Stock or, in the case of any member of the
WLR Group, any Additional Acquired Shares:

          (i) to any Person (other than a Permitted Transferee and the WLR Group) such
that, after consummation of such Transfer, the Transferred securities when
aggregated with any other securities Beneficially Owned by such Person, such Person
would have Beneficial Ownership of Voting Stock representing in the aggregate, to
such Holder’s knowledge, 5% or more of the Total Current Voting Power;

          (ii) if the securities to be Transferred represent in the aggregate 5% or more
Beneficial Ownership of the outstanding Voting Stock of the Company and the Transfer
is made (A) in the case of a Transfer pursuant to clause (iii) or (iv) of Section
3.1(a), in a block trade or similar transaction, or (B) to a single purchaser (other
than the Company or a Permitted Transferee and the WLR Group) in one or a series of
related transactions or, to such Holder’s knowledge, to a group in one or a series
of related transactions;

          (iii) if such Transfer would be in violation of applicable laws and
regulations; or

          (iv) if the identity of the Transferee is known by such Holder and such
Transferee is a Competitor or, to such Holder’s knowledge, any of the Subsidiaries
or Affiliates of any Competitor.

          (c) Prior to any Transfers of Warrants or any Voting Stock to any Person under Section
3.1(a)(v), the Holder shall obtain a written certification from such Person

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regarding the amount of, and intentions with respect to, the Beneficial Ownership of Voting Stock held by such Person.

          (d) Each Holder acknowledges that the issuance of the Warrants and the Underlying Common Stock
have not been registered under the Securities Act and may not be Transferred except pursuant to an
effective registration statement under the Securities Act or pursuant to an exemption from
registration under the Securities Act.

          3.2. Legends; Securities Act Compliance.

          (a) Each Holder agrees to the imprinting of the following legend on any certificate evidencing
any of the Warrants and the Underlying Common Stock and any Additional Acquired Shares (provided
that the legend set forth in the third immediately following paragraph shall only be affixed to a
security Transferred in reliance on clause (vi) of Section 3.1(a) hereof) (as so legended, the
“Restricted Securities”), unless such legend is no longer required with respect to such
Holder as contemplated by the provisions of Section 3.2(b):

     “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE
STATE SECURITIES LAWS OR BLUE SKY LAWS.”

     “THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE SUBJECT TO RESTRICTIONS ON VOTING,
TRANSFER AND CERTAIN OTHER LIMITATIONS SET FORTH IN THAT CERTAIN INVESTOR RIGHTS AND RESTRICTIONS
AGREEMENT, DATED AS OF JUNE 10, 2009, AMONG THE GREENBRIER COMPANIES, INC., WLR RECOVERY FUND IV,
L.P., WLR IV PARALLEL ESC, L.P., WL ROSS & CO. LLC AND EACH OF THE OTHER HOLDERS FROM TIME TO TIME
PARTY THERETO, COPIES OF WHICH INVESTOR RIGHTS AND RESTRICTIONS AGREEMENT ARE ON FILE AND AVAILABLE
AT THE PRINCIPAL OFFICE OF THE GREENBRIER COMPANIES, INC.”

     “THE HOLDER HEREOF, BY VIRTUE OF ITS ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY
ARTICLES 3 (IF APPLICABLE) AND 5 OF THE INVESTOR RIGHTS AND RESTRICTIONS AGREEMENT AND, IF THE
SECURITIES EVIDENCED BY THIS CERTIFICATE ARE WARRANTS, THE WARRANT AGREEMENT AND THIS CERTIFICATE.”

          (b) In the event that any Warrants, Underlying Common Stock or Additional Acquired Shares are
Transferred pursuant to Section 3.1(a)(iii), Section 3.1(a)(iv) or, to the extent such securities
are not required to bear legends pursuant to Section 3.1(a)(C) or (D),

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Section 3.1(a)(vi), the Company shall promptly upon request remove the legends set forth above from the certificates
representing such Warrants or Underlying Common Stock, as applicable.

          3.3. Additional Matters.

     The Company shall not be required to register any Transfer of the Warrants or the Underlying
Common Stock in violation of this Article 3. The Company may, and may instruct any transfer agent
for the Company to, place such stop transfer orders as may be required on the transfer books of the
Company in order to ensure compliance with the provisions of this Article 3.

     4. CERTAIN COVENANTS AND OTHER AGREEMENTS

          4.1. Standstill.

          (a) Subject to Sections 4.1(b), 4.1(c) and 4.4, each of WLR-IV, Parallel Employee Fund and
each Permitted Transferee agrees that during the Standstill Period, without the prior written
approval of the Company, such Person shall not, and shall cause each member of the WLR Group not
to, act alone or in concert with any other Person or group to, directly or indirectly:

          (i) acquire or agree to acquire, whether by purchase, tender or exchange offer,
through the acquisition of control of another Person (including by way of merger or
consolidation), by joining a partnership, syndicate or other group, through the use
of a derivative instrument or voting agreement, or otherwise, (x) without the prior
consent of a representative of the Company who has been authorized by the Board to
approve or disapprove such transactions on behalf of the Company generally, debt
securities of the Company or (y) Beneficial Ownership of Voting Stock, except that
members of the WLR Group may (A) Beneficially Own the Warrants and the shares of
Underlying Common Stock, (B) acquire Beneficial Ownership of additional shares of
Common Stock pursuant to Sections 6.2 and 6.3, and (C) acquire Beneficial Ownership
of additional shares of Common Stock representing in the aggregate not more than
3.4% of the Total Current Voting Power;

          (ii) (A) solicit or participate in any “solicitation” of “proxies” (as such
terms are used in the rules of the SEC) with respect to any Voting Stock or (B) seek
to advise or influence any Person with respect to the voting of any Voting Stock
(other than in accordance with and consistent with the recommendation of the Board);
provided, that the limitation contained in this clause (ii) shall not apply
to any proposal recommended by the Board to be voted on by the Company’s
shareholders that is not first publicly proposed by any member of the WLR Group;

          (iii) deposit any Voting Stock or any Convertible Securities in a voting trust
or, except as otherwise provided or contemplated herein or the Warrant Agreement,
subject any Voting Stock to any arrangement or agreement with any Person with
respect to the voting of such Voting Stock, other than any

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such trust, arrangement or agreement the only parties to, or beneficiaries of, which are members of the WLR
Group, the terms of which do not require or expressly permit any party thereto to
act in a manner inconsistent with this Agreement;

          (iv) form, join or participate in a group (other than a group comprised solely
of other members of the WLR Group) with respect to any Voting Stock or Convertible
Securities; provided, however, such Person shall not be deemed to
have formed, joined or participated in a group with another Person solely as a
result of one or more Persons selling Registrable Securities under Article 5;

          (v) effect or seek, offer or propose to effect any Change of Control of the
Company or any recapitalization, restructuring, liquidation, dissolution or other
transaction with respect to the Company or any of its Subsidiaries or Affiliates;
provided, however, nothing herein shall prohibit any member of the
WLR Group from taking any such action if such offer or proposal (A) is specifically
requested to be made in writing by the Board prior to the making off such offer or
proposal or (B) where such action is comprised solely of discussions with or
proposals to the Board and senior executives of the Company on a confidential basis;

          (vi) authorize any representative of any member of the WLR Group to be named as
a director candidate on a proxy or ballot of any other Person relating to a matter
to be voted on at a meeting of the Company’s shareholders, other than the proxy or
ballot of the Company with the recommendation of the Board;

          (vii) otherwise effect or seek, offer or propose to effect control of, or
influence over, the management, Board or policies of the Company, its Subsidiaries
or controlled Affiliates or to publicly seek a waiver, amendment or modification of
any provision of this Section 4.1(a); provided, however, that no
action by the Board Designee (solely in his or her capacity as such) shall be deemed
to violate this Section 4.1(a)(vii) and nothing herein shall prohibit any member of the WLR Group from taking any such action if such action (A) is
specifically requested to be made in writing by the Board prior to the taking of
such action or (B) where such action is comprised solely of discussions with or
proposals to the Board and senior executives of the Company on a confidential basis;

          (viii) call or join with any other Person (other than the Board) in calling any
special meeting of the shareholders of the Company; or

          (ix) otherwise (A) take any action that would reasonably be expected to compel
the Company to make a public announcement regarding, (B) publicly disclose any
intention, plan or arrangement that is inconsistent with, or

-16-

 

(C) advise, induce or knowingly substantially assist any Person in connection with, any of the matters set
forth in this Section 4.1.

          (b) The restrictions set forth in Section 4.1(a) shall not prohibit any member of the WLR
Group from participating in any tender offer, or participating in or voting for any transaction of
the type described in clause (iii) or (iv) of the definition of Designee Termination Date. In
addition, the restrictions set forth in Section 4.1(a) shall not apply if any of the following
occurs (provided, that if any event described in clause (i) of this Section 4.1(b) occurs
but such Third Party announces it has abandoned such offer, in clause (iii) of this Section 4.1(b)
occurs but such agreement is subsequently terminated or in clause (iv) of this Section 4.1(b)
occurs but the Company publicly announces that it is no longer exploring strategic alternatives or
makes a similar public announcement indicating that it is no longer considering a change in control
of the Company, then the restrictions set forth in Section 4.1(a) shall thereafter resume 30 days
after such time (as long as at such time no new events of the following type has occurred) and
continue to apply if a Board Designee is then serving as a member of the Board):

          (i) a third party who is not a member of the WLR Group or an Affiliate thereof
(excluding for this purpose the proviso in the definition of “Affiliate” in Section
1.1) (a “Third Party”) commences (within the meaning of Rule 14d-2 under the
Exchange Act) a bona fide tender or exchange offer for more than 35% of the
outstanding Voting Stock and the Board either (A) redeems or amends the Stockholder
Rights Agreement so as to make it inapplicable to such proposal or (B) does not
recommend against the tender or exchange offer within ten Business Days after the
commencement thereof or such longer period as shall then be permitted under SEC
rules; or

          (ii) a Third Party acquires Beneficial Ownership of 35% of the outstanding
Voting Stock; or

          (iii) the Company enters into an agreement pursuant to which a Third Party
would acquire all or substantially all of the assets of the Company or providing for
an acquisition (by way of merger, tender offer or otherwise) of more than 35% of the
outstanding Voting Stock or a transaction in which the Company would be merged or
consolidated with another Person, unless immediately following the consummation of
such transaction the shareholders of the Company immediately prior to the consummation of such transaction would continue to
hold (in substantially the same proportion as their ownership of the Company’s
voting stock immediately prior to the transaction) more than 65% of all of the
outstanding common stock or other securities entitled to vote for the election of
directors of the surviving or resulting entity in such transaction or any direct or
indirect parent thereof; or

          (iv) the Company publicly announces that it is exploring strategic
alternatives, or makes any similar public announcement indicating that it is
actively seeking a change in control of the Company and, in any such event, such
announcement is made with the approval of the Board.

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          (c) If the Company engages in a transaction with another Person pursuant to which such Person
acquires Beneficial Ownership of shares of Common Stock representing in excess of 20% of Total
Current Voting Power through open market purchases or purchases from the Company for cash, or a
combination thereof, where such transaction is primarily for the purpose of raising capital and not
part of a broader strategic transaction or relationship, and the Company amends its then effective
Stockholder Rights Agreement to facilitate such ownership and either does not enter into a
standstill agreement with respect to such Person’s ownership or enters into a standstill agreement
with respect to such Person’s ownership which includes standstill provisions that are less
favorable to the Company than those contained in Section 4.1(a) hereof, but only with respect to
(a) the duration of the Standstill Period (or its equivalent), (b) the restrictions on such
Person’s ability to purchase equity securities of the Company or (c) the remainder of the
standstill provisions contained in Section 4.1(a) hereof taken as a whole (unless they are not
substantially less favorable to the Company as determined by the Board in its sole discretion),
then the definition of Standstill Period herein and Section 4.1(a)(i) hereof shall be automatically
amended to the extent necessary to conform them to the corresponding provisions of the agreement
with such Person and the Company shall promptly notify WLR-IV in writing of such amendments;
provided that WLR-IV may, on behalf of itself and the other members of the WLR Group, by
written notice to the Company reject each such change (or group of changes as a whole in the case
of the foregoing clause (c)) and elect to retain (a) the definition of Standstill Period herein,
(b) the provisions contained in Section 4.1(a)(i) hereof, or (c) the remainder of the standstill
provisions taken as a whole, as applicable, in each case as in effect as of immediately prior to
the date on which such provisions would have otherwise been amended in accordance with this Section
4.1(c).

          (d) Nothing in clause (v) or clause (vii) of Section 4.1(a) shall be construed to prohibit a
Board Designee from confidentially, in good faith and in the performance of his or her duties as a
Director, discussing a proposal concerning any extraordinary transaction involving the Company or
any successor thereto, any Subsidiary or division thereof, or any of their respective securities or
assets, with the Board and representatives of the Company and its advisors who are involved in the
evaluation or execution of any such proposal on behalf of the Company.

          (e) During the Standstill Period, each member of the WLR Group shall promptly notify the
Company of any new acquisition or disposition, or entry into any agreement or arrangement which
could reasonably result in any new acquisition or disposition, that would result in an increase or
decrease, as applicable, of more than 1% of the Beneficial Ownership of Voting Stock or Convertible
Securities of the WLR Group.

          4.2. Anti-Takeover Provisions. The Company represents that at or prior to the date hereof, it has taken all actions
necessary, if any, such that, as of the date hereof, none of (a) receipt of the Warrants by WLR-IV
or Parallel Employee Fund, (b) receipt of Underlying Common Stock by WLR-IV or Parallel Employee
Fund, (c) purchases of Additional Acquired Shares permitted by Section 4.4, or (d) the entry by
each of WLR-IV and Parallel Employee Fund into this Agreement and the performance by each such
Person of its rights and obligations pursuant to this Agreement, shall (i) cause any
member of the WLR Group to be subject to the restriction on business combinations with
interested shareholders contained in Section 60.835 of Oregon Revised Statutes or under any similar
takeover or interested shareholder law applicable

-18-

 

to the transactions contemplated by this
Agreement, (ii) constitute a “control share acquisition” under Sections 60.801 to 60.813 of Oregon
Revised Statutes or under any similar control share acquisition law applicable to the transactions
contemplated by this Agreement, (iii) violate any provision of the Company’s articles of
incorporation or by-laws (as amended) or other similar organizational documents of its
Subsidiaries, (iv) require any approval by the Company’s shareholders under the rules of the
Applicable Exchange, (v) cause any member of the WLR Group to become an “Acquiring Person” under
the Stockholder Rights Agreement, or (vi) otherwise trigger or cause any rights to arise under or
in respect of, any provision of any of the Company’s articles of incorporation, by-laws or any
contract or instrument to which the Company or any of its Subsidiaries is a party that would have a
material adverse effect on the Company and its Subsidiaries, taken as a whole, or the ability of
the Company to perform its obligations hereunder or under the Warrant Agreement; provided
that the aggregate Beneficial Ownership of the WLR Group (taken together) of Common Stock, does not
exceed the WLR Grandfathered Percentage (as defined and calculated in the Stockholder Rights
Agreement, as amended as of the date hereof).

          4.3. Restrictions on Hedging. During the Standstill Period, no member of the WLR Group shall engage in any Hedging
Transaction with respect to Warrants or the Underlying Common Stock or the Additional Acquired
Shares.

          4.4. Acquisition of Additional Voting Stock.

          Each of WLR-IV, Parallel Employee Fund and each Permitted Transferee shall disclose in its
Schedule 13D filing initially disclosing this Agreement and the Warrant Agreement that it intends,
depending on market conditions and other factors, to spend up to $1.5 million to purchase
additional shares of Common Stock in open market transactions.

          4.5. Election of Directors; Quorum.

          (a) During the Standstill Period, at every meeting (or action by written consent, if
applicable) of the shareholders of the Company, and at every postponement or adjournment thereof,
each of WLR-IV, Parallel Employee Fund and each Permitted Transferee shall, and shall cause member
of the WLR Group to (subject to the Company’s compliance with Section 2.1 in connection with such
meeting (or action by written consent)), vote any and all shares of Common Stock Beneficially Owned
by it or them, or to cause any such shares to be voted (in each case to the extent such Common
Stock Beneficially Owned by it or them is eligible to so vote), in connection with any election or
removal of Directors as follows: (i) in the manner recommended by the Board, with respect to a
number of shares of Common Stock Beneficially Owned that is equal to (A) the total number of shares
of Common Stock Beneficially Owned by WLR-IV, Parallel Employee Fund or such Permitted Transferee (and
eligible to vote), multiplied by (B) a fraction (1) the numerator of which is the total number of
shares of Common Stock voted by all shareholders of the Common Stock in the manner recommended by
the Board with respect to the election or removal of each Director and (2) the denominator of which
is the total number of shares of Common Stock represented at the applicable meeting, in person or
by proxy, and (ii) in WLR-IV, Parallel Employee Fund’s or such Permitted Transferee’s discretion,
with respect to all other shares of Common Stock Beneficially Owned by WLR-IV, Parallel Employee
Fund or such Permitted Transferee.

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          (b) During the Standstill Period, at every meeting (or action by written consent, if
applicable) of the shareholders of the Company called by the Board, and at every postponement or
adjournment thereof, WLR-IV, Parallel Employee Fund and each Permitted Transferee thereof agrees to
cause any and all shares of Common Stock Beneficially Owned by it or them and entitled to be voted
thereat to be present in person or represented by proxy at the meeting so that all such shares
shall be counted as present for determining the presence of a quorum at such meeting.

          4.6. Notices Regarding Ownership.

     During the Standstill Period, each of WLR-IV, Parallel Employee Fund and each Permitted
Transferee shall, and shall cause each other member of the WLR Group to, provide written notice to
the Company within two Business Days after any Transfer by such Person, as applicable, of any
Warrants, the Underlying Common Stock or any Additional Acquired Shares and shall state an accurate
accounting of the resulting Beneficial Ownership of such Person.

          4.7. Stockholder Rights Agreement.

     The Company agrees that it shall not adopt any other shareholder rights agreement of a type
commonly known as a “poison pill” unless the Company takes such action as is necessary to ensure
that the provisions of such shareholders rights agreement are no more restrictive with respect to
the WLR Group’s permitted Beneficial Ownership of the Company’s securities than the Stockholder
Rights Agreement as amended as of the date hereof and without giving effect to any later amendment
thereto (to the extent that such later amendment would lower the applicable percentage of
Beneficial Ownership for purposes of calculating whether any Person is an “Acquiring Person” under
the Stockholder Rights Agreement) or termination thereof.

          4.8. Investment Committee

          (a) WLRCo. and the Company believe that there may be potentially attractive investment
opportunities (“Investment Opportunities”) in the railcar and marine barge manufacturing
business and the railcar leasing, management services and aftermarket (e.g.,
refurbishments, parts and repairs) businesses in the United States, Canada and Mexico (the
“Business”) that may be in their respective best interests to jointly pursue. Accordingly,
unless and until the earlier of (1) the Designee Termination Date and (2) the date on which either
party in its sole discretion determines otherwise (in which event it may upon notice terminate this
Section 4.8(a) without liability to the other), each of WLRCo. and the Company shall designate
at least one of its senior executives or directors (which designee may be appointed,
removed or replaced in such party’s sole discretion) to serve on a committee (the “Investment
Committee”) that shall be charged with (i) reviewing Investment Opportunities, (ii) considering
whether the Company, alone or in conjunction with Affiliate(s) of WLRCo., should pursue such
Investment Opportunities, and (iii) if appropriate, mutually recommending such Investment
Opportunities and possible financing therefor to the Company. The Investment Committee shall
establish its own procedures for the conduct of its activities. All out-of-pocket expenses of the
Investment Committee and its members shall be paid or promptly reimbursed by the Company pursuant
to the Company’s normal expense reimbursement procedures, including, with prior written approval of
the Company, if applicable, fees and expenses of external advisors to the Investment

-20-

 

Committee. The Investment Committee shall make recommendations and reports from time to time to the Board (or
a committee of the Board for the purpose of reviewing and evaluating Investment Opportunities).
The Investment Committee may also, from time to time in its discretion, consider and make
recommendations concerning Investment Opportunities outside of North America. Any deliberations by
the Board (or any such committee) with respect to any Investment Opportunity shall be conducted in
accordance with the policies and requirements of the Board and applicable law and, without limiting
the general applicability of the foregoing, WLRCo. specifically acknowledges and agrees that, at
the request of the Board or any such committee in its sole discretion, the Company may, through the
Board, any such committee or otherwise, preclude any Board Designee from participating in any
deliberations, and not share information with WLRCo. or any Board Designee, with respect to an
Investment Opportunity that the Board or any such committee determines in its sole discretion
gives, or may give, rise to a conflict of interest between the Company, on the one hand, and
WLRCo., on the other hand, and so doing shall not be deemed to constitute a breach of any
contractual or legal obligation to WLRCo. or any Board Designee.

          (b) In no event shall the Company, WLRCo. or their respective Affiliates have any obligation
hereunder or otherwise to pursue any particular Investment Opportunity or provide debt or equity
financing therefor, whether or not such Investment Opportunity is recommended by the Investment
Committee or the Board. Each of WLRCo. and the Company expressly acknowledges and agrees that (i)
each is involved in investment and other business activities, which may be competitive with the
investments or other business activities of the other and (ii) any decision to invest or provide
equity or debt financing with respect to any Investment Opportunity may be made by each party (or
its Affiliate(s), as applicable) in such Person’s sole discretion.

          (c) Notwithstanding any other provision of this Section 4.8, during the period beginning on
the date hereof and ending on the earliest of (x) the fifth anniversary of this Agreement, (y) the
occurrence of an event of the type described in clauses (iii), (iv), (v) or, at the election of the
Company, (vi) of the definition of Designee Terminate Date in Section 2.1(d), and (y) the removal
of, or failure to ratify the appointment or election of, the WLR Board Designee pursuant to a proxy
contest, each of the Company and WLRCo. shall, and shall cause its respective controlled Affiliates
to, disclose to the other all Investment Opportunities made available to it or such Affiliate which
would involve an investment of more than $10.0 million of debt or equity capital in the Business.
WLRCo. and the Company shall discuss in good faith whether and how to jointly pursue such
Investment Opportunity, it being acknowledged that neither party nor any of its respective
Affiliates shall have any obligation hereunder (i) to provide, seek or accept (from the other or otherwise)
debt or equity financing or otherwise
pursue any such opportunity), (ii) to take any action in respect of any possible Investment
Opportunity if and to the extent that it determines in good faith that so doing would constitute
(A) a breach of (x) any contractual obligation of such Person under a contract which such Person is
a party or bound as of the date hereof or (y) any contractual obligation to which such Person
becomes a party or bound in the future (provided that, as to any such contractual obligation, such
Person has endeavored in good faith to negotiate an exclusion therefrom that would have permitted
such Person to share information with the other party as herein contemplated) or (B) a violation of
any laws or legal duties to which such party or any of its Affiliates is subject, or (iii) in
respect of potential investments by the Company in, or acquisitions by the Company of, rail

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cars in the ordinary course of its business or Investment Opportunities or other transactions pursued by
Persons as separately identified and agreed to by the Company and WLRCo.

          (d) The provisions of this Section 4.8 apply to WLRCo. and the Company and their respective
Affiliates only, and may not be transferred or assigned by either such party to any other Person
(other than by operation of law), without the prior written consent of the other party.

          4.9. Voting Agreement.

     Each of WLR-IV, Parallel Employee Fund and each Permitted Transferee agrees that, to the
extent that the WLR Group in the aggregate Beneficially Owns Excess Shares, such Person shall vote
any and all Excess Shares Beneficially Owned by it, or cause any such shares to be voted (in each
case to the extent such Common Stock Beneficially Owned by it or them is eligible to so vote), in
the same proportion as the votes of all shareholders of the Company (other than the members of the
WLR Group), present in person or by proxy at the meeting or by written consent. Each of WLR-IV,
Parallel Employee Fund and each Permitted Transferee, on behalf of itself and each other member of
the WLR Group, hereby constitutes and appoints the President and Secretary of the Company, and each
of them, with full power of substitution, as its proxies to represent and to vote all of the Excess
Shares in accordance with the terms and provisions of this Section 4.9. The proxy granted pursuant
to the immediately preceding sentence is given in consideration of the agreements and covenants of
the Company and the members of the WLR Group in connection with the transactions contemplated by
this Agreement, the Warrant Agreement and the Credit Agreement and, as such, is coupled with an
interest and shall be irrevocable unless and until this Agreement terminates or expires pursuant to
Section 7.1. None of WLR-IV, Parallel Employee Fund or any Permitted Transferee, on behalf of
itself and each other member of the WLR Group, shall hereafter, unless and until this Agreement
terminates or expires pursuant to Section 7.1, grant any other proxy or power of attorney with
respect to any of the Excess Shares, deposit any of the Excess Shares into a voting trust or enter
into any agreement (other than this Agreement), arrangement or understanding with any Person to
vote, grant any proxy or give instructions with respect to the voting of any of the Excess Shares,
in each case, except as is consistent with the terms of this Section 4.9. Any shares of Common
Stock that are in excess of the WLR Grandfathered Percentage (as defined in the Stockholder Rights
Agreement as amended as of the date hereof and without giving effect to any later amendment
thereof) (a) under the circumstances described in paragraph (F) of Section 1(a)(y) of
the Stockholder Rights Agreement (but only to the extent set forth in clause (2) of the
proviso to such paragraph (F)) or (b) as a result of the application of provisions of Section 6.3,
shall, in each case, constitute Excess Shares for purposes hereof and shall be subject to the
provisions of this Section 4.9, so long as required in order for a member of the WLR Group to avoid
being deemed an “Acquiring Person” for purposes of the Stockholder Rights Agreement as amended as
of the date hereof and without giving effect to any later amendment thereof.

          4.10. Rights Solely for WLR.

     The rights and obligations of WLR-IV, Parallel Employee Fund, their Permitted Transferees and
the other members of the WLR Group under this Article 4 shall only apply to

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WLR-IV, Parallel Employee Fund, their Permitted Transferees and the other members of the WLR Group
and may not be Transferred to any other Person.

     5. REGISTRATION RIGHTS

          5.1. Registration.

          (a) If at any time after the six-month anniversary date of this Agreement, the Company shall
receive from one or more Holders a written request (a “Shelf Request”) that the Company
register pursuant to Rule 415(a)(1)(i) under the Securities Act (or any successor rule with similar
effect) a delayed offering of Registrable Securities, equal to at least 5% of the Voting Stock of
the Company outstanding on the date of such Shelf Request (or, if the aggregate number of
Registrable Securities held by all Holders on such date is less than 5% of such Voting Stock, then
such number), then the Company shall use its reasonable efforts to cause the offer and sale of the
Registrable Securities specified in such Shelf Request to be registered as soon as reasonably
practicable and, in connection therewith, shall prepare and file with the SEC as soon as
practicable after receipt of such Shelf Request, a shelf registration statement on Form S-3
relating to such Registrable Securities, if such Form S-3 (or any successor form thereof) is
available for use by the Company, to effect such registration (a “Shelf Registration
Statement”); provided, however, that each such Shelf Request shall (i) name
each of the Holders making such Shelf Request, (ii) specify the number of Registrable Securities
intended to be offered and sold by such Holders pursuant thereto, (iii) express the intention of
each such Holder to offer or cause the offering of such Registrable Securities pursuant to such
Shelf Registration Statement on a delayed basis in the future, (iv) describe the nature or method
of the proposed offer and sale of such Registrable Securities pursuant to such Shelf Registration
Statement, and (v) contain an undertaking of each such Holder to provide all such information and
materials and take all such actions as may be required in order to permit the Company to (A) comply
with all applicable requirements of the Securities Act, the Exchange Act and the rules and
regulations of the SEC thereunder, and (B) obtain any desired acceleration of the effective date of
such Shelf Registration Statement. The Holders shall not be entitled to make more than one Shelf
Request during any 365-day period. Any offers and sales of Registrable Securities pursuant to a
Shelf Registration Statement shall be made only pursuant to a Tranche Request.

          (b) After a Shelf Registration Statement has been declared effective under the Securities Act
by the SEC, then, upon the written request of the Holders named in the Shelf Request (a
“Tranche Request”), the Company shall prepare such amendments to such Shelf Registration
Statement (including post-effective amendments), if any, and such amendments or supplements to the
prospectus relating to the Registrable Securities to be offered thereunder, as are necessary to
facilitate the distribution of such Registrable Securities pursuant to such Tranche Request;
provided, however, that such Tranche Request shall (i) name each of the Holders
making such Tranche Request, (ii) specify the number of Registrable Securities intended to be
offered and sold by each such Holder pursuant thereto (which number of Registrable Securities shall
not, with respect to all such Holders making such Tranche Request, be less than 2% of the Voting
Stock of the Company outstanding on the date of such Tranche Request (or, if the aggregate number
of Registrable Securities held by all Holders on such date is less than 2% of such Voting Stock,
then such number)), (iii) express the present intention of each such Holder to offer or cause the
offering of such Registrable Securities pursuant to the Shelf Registration

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Statement, (iv) describe the nature or method of distribution of such Registrable Securities pursuant to the Shelf
Registration Statement (including, in particular, whether the Holders plan to effect such
distribution by means of an underwritten offering), and (v) contain the undertaking of each such
Holder to provide all such information and materials and take all such actions as may be required
in order to permit the Company to comply with all applicable requirements of the Securities Act,
the Exchange Act and the rules and regulations of the SEC thereunder.

          (c) If at any time after the six-month anniversary date of this Agreement, a Shelf
Registration Statement on Form S-3 is not available for use to the Company, then one or more
Holders may make a written request (a “Demand Request” and, together with a Tranche
Request, a “Registration Request”) that the Company register on Form S-1 under the
Securities Act the offer and sale of Registrable Securities equal to at least 2% of the Voting
Stock of the Company outstanding on the date of such Demand Request (or, if the aggregate number of
Registrable Securities held by all Holders on such date is less than 2% of such Voting Stock, then
such number), and the Company shall use its reasonable efforts to cause the offer and sale of the
Registrable Securities specified in such Demand Request to be registered as soon as reasonably
practicable and, in connection therewith, shall prepare and file with the SEC as soon as
practicable after receipt of such Demand Request, a registration statement on Form S-1 (the
“Demand Registration Statement”) to effect such registration; provided,
however, that each such Demand Request shall (i) name each of the Holders making such
Demand Request, (ii) specify the aggregate number of Demand Registrable Securities intended to be
offered and sold by the participating Holders pursuant thereto, (iii) express the present intention
of each such Holder to offer or cause the offering of such Demand Registrable Securities pursuant
to such Demand Registration Statement, (iv) describe the nature or method of distribution of such
Registrable Securities pursuant to such Demand Registration Statement (including, in particular,
whether any such Holder plans to effect such distribution by means of an underwritten offering),
and (v) contain the undertaking of each such Holder to provide all such information and materials
and take all such actions as may be required in order to permit the Company to (A) comply with all
applicable requirements of the Securities Act, the Exchange Act and the rules and regulations of
the SEC thereunder, and (B) obtain any desired acceleration of the effective date of such Demand
Registration Statement.

          (d) If, other than pursuant to Section 5.1(a) through (c), the Company proposes or is required
to file a registration statement under the Securities Act with respect to an underwritten offering
of shares of Common Stock, whether or not for sale for its own account (other than a registration
statement (i) on Form S-4, Form S-8 or any successor forms thereto, (ii) filed solely in connection
with any employee benefit or dividend reinvestment plan, or (iii) relating solely to an offering of
securities by the Company on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act), then the Company shall give prompt written notice of such proposed filing at least
three Business Days before the anticipated filing date (the “Piggyback Notice”) to each
Holder. The Piggyback Notice shall offer Holders the opportunity to include in such registration
statement the number of Registrable Securities as they may request (a “Piggyback
Registration”). Subject to Section 5.2(d), the Company shall include in each such
Piggyback Registration all Registrable Securities with respect to which the Company has received written
requests for inclusion therein by the Holders. The Holders shall be permitted to withdraw all or
part of the Registrable Securities from a Piggyback Registration at any time at least two Business
Days prior to the effective date of the Registration Statement relating to such

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Piggyback Registration. The Company shall be required to maintain the effectiveness of the Registration
Statement for a Piggyback Registration for a period of 90 days after the effective date thereof or
such shorter period in which all Registrable Securities included in such Registration Statement
have actually been sold.

          5.2. Registration Procedures, Rights and Obligations.

     The procedures to be followed by the Company and each selling Holder, and the respective
rights and obligations of the Company and such Holders, with respect to the preparation, filing and
effectiveness of a Registration Statement, and the distribution of Registrable Securities pursuant
thereto, are as follows:

          (a) The Holders shall not be entitled to make, collectively, more than one Registration
Request during any 180-day period (the “180-Day Limitation”); provided,
however, that any Registration Request that (i) is withdrawn by the requesting Holders
following the imposition of a stop order by the SEC with respect to the corresponding Registration
Statement, (ii) is withdrawn by such Holders as a result of the exercise by the Company of its
suspension rights pursuant to Section 5.2(f) hereof, (iii) is withdrawn by such Holders as a result
of a Market Cut-Back, or (iv) in the case of any Demand Request, does not result in the
corresponding Demand Registration Statement being declared effective by the SEC, shall not count
for the purposes of determining compliance with the 180-Day Limitation. Any Registration Request
that is withdrawn by the Holders for any reason other than as set forth in the previous sentence
shall count for purposes of determining compliance with the 180-Day Limitation.

          (b) The Company shall (i) use commercially reasonable efforts to cause each Registration
Statement to be declared effective promptly and (ii)(A) to keep such Registration Statement
continuously effective and (B) to prepare and file with the SEC such amendments and supplements to
each Registration Statement and each Prospectus used in connection therewith as may be necessary to
make and to keep such Registration Statement effective and to comply with the provisions of the
Securities Act with respect to the sale or other disposition of all Registrable
Securities proposed to be distributed pursuant to such Registration Statement until, in the
case of clause (ii) the earliest to occur of (1) the sale or other disposition of the Registrable
Securities so registered, (2) 90 days after (x) in the case of Registrable Securities offered
pursuant to a Tranche Request, the date of the final prospectus used to confirm sales in connection
therewith or (y) in the case of Registrable Securities offered pursuant to a Demand Request, the
effective date of the applicable Demand Registration Statement, and (3) the termination of the
Holders’ registration rights pursuant to Section 5.8 hereof.

          (c) In connection with any underwritten offering pursuant to a Demand Registration Statement
or Shelf Registration Statement, the Company, on the one hand, and the Holders of a majority
interest in the Registrable Securities electing to participate in such underwritten offering (the
“Majority Holders”), on the other hand, shall each select one investment banking firm to
serve as co-manager of such offering. The co-manager selected by the Company shall be subject to
the prior approval of the Majority Holders, which approval shall not be unreasonably withheld. The
co-manager selected by the Majority Holders shall be subject to the prior approval of the Company,
which approval shall not be unreasonably withheld. Each of the co-managers so selected by the
Company and Majority Holders are hereinafter collectively

-25-

 

referred to as the “Managing
Underwriters.” The underwriter selected by the Majority Holders shall be the lead Managing
Underwriter, whose responsibilities shall include running the “books” for any offering. The
Company shall, together with the selling Holders, enter into an underwriting agreement with the
Managing Underwriters, which agreement shall contain representations, warranties, indemnities and
agreements then customarily included by an issuer in underwriting agreements with respect to
secondary distributions under shelf registration statements and shall stipulate that the Managing
Underwriters shall receive equal commissions and fees and other remuneration in connection with the
distribution of any Registrable Securities thereunder.

          (d) Notwithstanding any other provision of this Agreement, in connection with any underwritten
offering, the number of Registrable Securities proposed to be distributed by the Holders pursuant
thereto may be limited by the Managing Underwriters if such Managing Underwriters determine that
the sale of such Registrable Securities would significantly and adversely affect the market price
of the Common Stock (a “Market Cut-Back”); provided, however, that, in the
case of a Registration Request made after the third anniversary hereof, the Managing Underwriters
may only make such determination with respect to one underwritten offering in each 12-month period;
provided, further, however, in the case of an underwritten offering
pursuant to a Piggyback Registration, the number of Registrable Securities proposed to be
distributed by Holders pursuant thereto may be limited by the applicable Managing Underwriters if
such Managing Underwriters determine that the sale of such Registrable Securities would
significantly and adversely affect the market price of the Common Stock and any such determination
shall not count for purposes of the foregoing proviso. If the Majority Holders disapprove of the
terms of any proposed underwritten offering of Registrable Securities (including, without
limitation, any reduction in the number of Registrable Securities to be sold by the Majority
Holders pursuant to this Section 5.2(d)), the Majority Holders may elect to withdraw therefrom by
written notice to the Company and the Managing Underwriters.

          (e) Subject to Section 5.1(d), in the event that the Company receives a Shelf Request, Tranche
Request or Demand Request at a time when the Company (i) shall have filed,
or has a bona fide intention to file, a registration statement with respect to a proposed
public offering of equity or equity-linked securities or (ii) has commenced, or has a bona fide
intention to commence, a public offering of equity or equity-linked securities pursuant to an
existing effective shelf or other registration statement, then the Company shall be entitled to
suspend, for a period of up to 90 days after the receipt by the Company of such request, the filing
of any Registration Statement or the implementation of any Tranche Request.

          (f) The Company shall not be required to file a Registration Statement or to cause a
Registration Statement to be declared effective and may suspend any distribution of Registrable
Securities pursuant to any effective Registration Statement (i) during any Mandatory Black-Out
Period (but only for so long as such Mandatory Black-Out Period is in existence) or (ii) if the
Company shall have determined in good faith that because of valid business reasons (not including
the avoidance of the Company’s obligations hereunder), including plans for a registered public
offering, an acquisition or other proposed or pending corporate developments and similar events or
because of filings with the SEC, it is in the best interests of the Company to delay such
effectiveness or suspend such use. Prior to such delay or suspension with respect to clause (ii)
above, the Company shall provide the Holders with written notice of such delay or

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suspension, which
notice need not specify the nature of the event giving rise to such suspension (and, upon receipt
of such notice, each Holder agrees not to sell any Registrable Securities pursuant to a
Registration Statement until such Holder is advised in writing that the applicable Prospectus may
be used, which notice the Company agrees to provide promptly following the lapse of the event or
circumstances giving rise to such suspension). Each Holder shall keep confidential any
communications received by it from the Company regarding the suspension of the use of any
Prospectus (including, without limitation, the fact of the suspension), except as required by
applicable law. The Company may delay the effectiveness of any Registration Statement pursuant to
clause (ii) above for up to 60 days and may suspend any distribution of Registrable Securities
pursuant to clause (ii) above for up to 60 days in any one time; provided that such right
to delay the effectiveness of or suspend a Registration Statement shall be exercised by the Company
not more than twice or for more than 90 days in the aggregate in any 12-month period; and
provided further, that the restrictions set forth in this sentence shall not be
applicable to any Piggyback Registration.

          (g) The Company shall promptly notify each selling Holder of any stop order issued or, to the
Company’s knowledge, threatened to be issued, by the SEC with respect to any Registration
Statement, and in each such case shall use its best efforts to prevent the entry of such stop order
or to remove it if entered at the earliest possible date.

          (h) The Company shall furnish to each selling Holder (and any underwriters in connection with
any underwritten offering) such number of copies of any Prospectus, in conformity with the
requirements of the Securities Act, as such Holders (and such underwriters) shall reasonably
request in order to effect the offering and sale of any Registrable Securities to be offered and
sold, but only while the Company shall be required under the provisions hereof to cause the
Registration Statement pursuant to which such Registrable Securities are intended to be distributed
to remain current.

          (i) The Company shall use commercially reasonable efforts to register or qualify the
Registrable Securities covered by any Registration Statement under the state
securities or “blue sky” laws of such states as the selling Holders shall reasonably request
and maintain any such registration or qualification current until the earliest to occur of (i) the
sale of such Registrable Securities so registered, (ii) 90 days after (A) in the case of an
offering of Registrable Securities pursuant to a Tranche Request, the date of the final prospectus
used to confirm sales in connection with such distribution or (B) in all other cases, the effective
date of the applicable Registration Statement, and (iii) the termination of the Holders’
registration rights pursuant to Section 5.8 hereof; provided, however, that the
Company shall not be required to take any action that would subject it to the general jurisdiction
of the courts of any jurisdiction in which it is not so subject or to qualify as a foreign
corporation in any jurisdiction where the Company is not so qualified.

          (j) In the case of an underwritten offering in which any Holder is deemed to be, or reasonably
determines upon advice of counsel it may be deemed or alleged to be, an underwriter or is required
under applicable securities laws to be described in the Registration Statement or the Prospectus
forming a part thereof as an underwriter, the Company shall use commercially reasonable efforts to
(i) furnish to each such participating Holder and to each underwriter engaged in an underwritten
offering of Registrable Securities, a signed counterpart,

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addressed to the participating Holders
and such underwriter, of (A) an opinion or opinions of counsel to the Company and (B) a comfort
letter or comfort letters from the Company’s independent registered public accounting firm, each in
customary form and covering such matters of the type customarily covered by opinions or comfort
letters, as the case may be, as the Majority Holders of the managing underwriters may reasonably
request and (ii) use commercially reasonable efforts to make appropriate members of its management
reasonably available for due diligence purposes, “road show” presentations and analyst
presentations in connection with any distributions of Registrable Securities.

          (k) The Company shall use commercially reasonable efforts to cause all Registrable Securities
to be listed on each securities exchange on which similar securities of the Company are then
listed.

          5.3. Expenses of Registration.

     Except as specifically provided herein, all registration expenses incurred in connection with
any registration, qualification or compliance hereunder shall be borne by the Company. All selling
expenses incurred in connection with any registrations hereunder shall be borne by the selling
Holders of the securities so registered pro rata on the basis of the aggregate offering or sale
price of the securities so registered.

          5.4. Indemnification; Contribution.

          (a) In the case of any offering registered pursuant to this Article 5, the Company hereby
indemnifies and agrees to hold harmless each selling Holder (and its officers and directors), any
underwriter (as defined in the Securities Act) of Registrable Securities offered by such Holders,
and each Person, if any, who controls such Holder or any such underwriter
within the meaning of Section 15 of the Securities Act against any losses, claims, damages or
liabilities, joint or several, to which any such Persons may be subject, under the Securities Act
or otherwise, and to reimburse any of such Persons for any legal or other expenses reasonably
incurred by them in connection with investigating any claims or defending against any actions,
insofar as such losses, claims, damages or liabilities arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the registration statement
under which such Registrable Securities were registered under the Securities Act pursuant to this
Article 5, the prospectus contained therein (during the period that the Company is required to keep
such prospectus current), or any amendment or supplement thereto, or the omission or alleged
omission to state therein (if so used) a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances in which they were made, not
misleading, except insofar as such losses, claims, damages or liabilities arise out of or are based
upon any such untrue statement or omission or alleged untrue statement or omission made in reliance
upon information furnished to the Company in writing by any Holder or any underwriter for such
Holder specifically for use therein.

          (b) By requesting registration under this Article 5, each Holder agrees, if Registrable
Securities held by such Holder are included in the securities as to which such registration is
being effected, and each underwriter shall agree, in the same manner and to the same extent as set
forth in the preceding paragraph, to indemnify and to hold harmless the

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Company and its directors and officers and each Person, if any, who controls the Company within the meaning
of the Securities Act against any losses, claims, damages or liabilities, joint or several, to which any of such
Persons may be subject under the Securities Act or otherwise, and to reimburse any of such Persons
for any legal or other expenses incurred in connection with investigating or defending against any
such losses, claims, damages or liabilities, but only to the extent it arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged omission of a material
fact in any registration statement under which the Registrable Securities were registered under the
Securities Act pursuant to this Article 5, any prospectus contained therein, or any amendment or
supplement thereto, which was based upon and made in conformity with information furnished to the
Company in writing by such Holder or such underwriter expressly for use therein.

          (c) Each party entitled to indemnification under this Section 5.4 (the “Indemnified
Party”) shall give notice to the party required to provide indemnification (the
“Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any
claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the
defense of any such claim or any litigation resulting therefrom, provided that counsel for
the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not be unreasonably withheld), and the
Indemnified Party may participate in such defense at its own expense, and provided,
further that the failure of any Indemnified Party to give notice as provided herein shall
not relieve the Indemnifying Party of its obligations under this Article 5 unless such failure
resulted in actual detriment to the Indemnifying Party. No Indemnifying Party, (i) in the defense
of any such claim or litigation, shall, except with the consent of each Indemnified Party, which
consent shall not be unreasonably withheld, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect to such claim or
litigation, or (ii) shall
be liable for amounts paid in any settlement if such settlement is effected without the
consent of the Indemnifying Party, which consent shall not be unreasonably withheld.

          5.5. Representations, Warranties and Indemnities to Survive. The indemnity contained in this
Article 5 shall remain operative and in full force and
effect regardless of (i) any termination of any underwriting or agency agreement, (ii) any
investigation made by or on behalf of the selling Holders, the Company or any underwriter or agent
or controlling Person, or (iii) the consummation of the sale or successive resales of the
Registrable Securities.

          5.6. Information by the Selling Holders. Each selling Holder shall furnish to the Company such
information regarding such Holder in
the distribution of Registrable Securities proposed by such Holder as the Company may reasonably
request in writing and as shall be required in connection with any registration, qualification or
compliance referred to in this Article 5.

          5.7. Market Standoff Agreement. In connection with the public offering by the Company of any of
its securities, each Holder
agrees that, upon the request of the Company or the underwriters managing any underwritten offering
of the Company’s securities, such Holder shall agree in writing (the “Lock-Up”) that
neither such Holder nor any controlled Affiliate of such Holder shall, directly or indirectly,
offer to sell, contract to sell, make any short sale of, or

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otherwise sell, dispose of, loan, gift,
pledge or grant any options or rights with respect to, any securities of the Company (other than
those included in such registration statement, if any) now or hereafter acquired by the Holder (or
any controlled Affiliate of the Holder) or with respect to which such Holder (or any controlled
Affiliate of such Holder) has or hereafter acquires the power of disposition without the prior
written consent of the Company and such underwriters for such period of time (not to exceed 14 days
prior to the date such offering is expected to commence and 90 days after the date of the final
prospectus delivered to the underwriters for use in confirming sales in such offering) as may be
requested by the Company and the underwriters; provided, however, that no Holder
(nor any controlled Affiliate of any Holder) shall be bound by such Lock-Up (i) more than once
during any 12-month period, (ii) if such Holder and its Affiliates Beneficially Own, in the
aggregate, less than 5% of the Voting Stock of the Company outstanding as of the date on which the
Lock-Up is requested by the Company, or (iii) that is more restrictive than the Lock-Up that
applies to the Company’s directors and Section 16 officers generally in such instance (other than
for exceptions customary for individuals, such as those set forth in Section 3.1(a)(v)(y) hereof).
Each Holder agrees that the Company may instruct its transfer agent to place stop-transfer
notations in its records to enforce the provisions of the Lock-Up contained in this Section 5.7.

          5.8. Termination of Registration Rights. The rights of any Holder to cause the Company to
register offers and sales of Registrable
Securities under Article 5 hereof shall terminate on the earlier of (a) the later of (i) the second
anniversary of the date on which all of the Warrants shall have been exercised or
expired and (ii) the fifth anniversary hereof and (b) the date on which there cease to be any
Registrable Securities outstanding.

          5.9. Transfer of Registration Rights. The rights contained in this Article 5 to cause the Company to register the offer and sale
of the Registrable Securities, may be assigned or otherwise conveyed by a Holder only pursuant to
and in connection with a Transfer permitted under Article 3 hereof.

     6. COMPANY SECURITIES OFFERINGS

          6.1. Stock Issuances Below Minimum Price. After the date hereof, the Company shall not issue
Common Stock (or Convertible Securities)
without consideration or for consideration per share (or having a conversion or exercise price per
share) that is less than $6.00 (as adjusted for stock splits, dividends, combinations and the like)
(the “Minimum Price”) unless approved in writing by Holders Beneficially Owning a majority
in interest of the Underlying Common Stock Beneficially Owned by all Holders, which approval shall
not be unreasonably withheld, except that the foregoing shall not apply to:

          (i) shares of Common Stock issued and outstanding on the date of this Agreement;

          (ii) shares of Common Stock or Convertible Securities or options therefor issued or granted to
employees, officers, directors, consultants and other service providers for the primary purpose of
soliciting or retaining their services pursuant to any employee benefit plan, stock grant, stock
option plan or purchase plan, or stock option exchange plan or other employee stock incentive or
similar agreement approved by the Board;

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          (iii) securities issued or issuable upon conversion, exercise or exchange of warrants,
options, notes, or other Convertible Securities outstanding on the date of this Agreement,
provided that the terms of the securities or rights are not amended on or after the date
hereof in a manner that would result in additional shares being issued thereunder or that would
reduce the effective issuance price of such securities or rights below the Minimum Price in effect
immediately prior to such amendment;

          (iv) shares of Common Stock or Convertible Securities issuable upon exercise of the Warrants
to be issued pursuant to the Warrant Agreement;

          (v) shares of Common Stock or Convertible Securities issued or issuable in respect of any
transactions with respect to which adjustments are made pursuant to Sections 4.1, 4.2 or 4.3 of the
Warrant Agreement;

          (vi) securities issuable pursuant to the Stockholder Rights Agreement (or any similar
successor rights agreement of the Company);

          (vii) shares of Common Stock or Convertible Securities issued or issuable in connection with
any acquisition by the Company or joint venture agreements, in each case approved by the Board,
whether through an acquisition of stock or a merger of any business, assets or technologies the
primary purpose of which is not to raise equity capital, but only to the extent the Board
determines, based on good faith estimates, that the pro forma effect of the acquisition will be
accretive to its consolidated earnings for the next succeeding fiscal year following the
consummation of such transaction;

          (viii) shares of Common Stock or Convertible Securities issued or deemed issued as a result of
a decrease in the Exercise Price of the Warrants resulting from the operation of Section 4.4 of the
Warrant Agreement; and

          (ix) securities issued in connection with the substantially concurrent repayment in full by
the Company of all principal and accrued interest with respect to indebtedness outstanding and all
expenses then payable under the Credit Agreement.

          6.2. Participation Rights.

          (a) If allowable by then applicable law and the rules and regulations of the Applicable
Exchange (without obtaining shareholder approval) as determined in good faith by the Company (after
consultation with legal counsel and, if appropriate, representatives of the SEC and/or the
Applicable Exchange and, if requested, a representative of the WLR Group or its counsel) and
subject to Section 6.2(c) hereof, in connection with an offering by the Company of shares of Common
Stock registered under the Securities Act on Form S-1 or S-3 (other than an offering in which the
Company reasonably believes the per share price to the public will be at least $6.00 (as adjusted
for stock splits, dividends, combinations and the like)), the Company shall, or shall cause the
managing underwriters or placement agents, as applicable, of such offering to, allocate in
accordance with this Section 6.2(a) and Section 6.2(b) to each member of the WLR Group that holds
Warrants on the date of the applicable Offering Notice, upon the terms applicable to the other
investors in such offering, a portion of the shares of Common Stock

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so offered up to an amount
equal to the product of (a) the aggregate number of such shares (disregarding for such purpose
shares offered or sold pursuant to any over-allotment option) multiplied by (b)(i) the number of
shares of Underlying Common Stock issuable upon exercise of all Warrants owned by such member of
the WLR Group (without duplication) divided by (ii) the sum of (A) the aggregate number of shares
of Common Stock outstanding as of the day immediately preceding the date of the Offering Notice and
(B) the aggregate number of shares of Underlying Common Stock issuable upon exercise of all
Warrants then held by members of the WLR Group, in each case, determined without giving effect to
any limitations on the exercisability of such Warrants under Section 3.2(b) or 3.2(c) of the
Warrant Agreement.

          (b) In connection with an offering to which Section 6.2(a) applies, the Company shall provide
each applicable member of the WLR Group notice of such offering (such notice, the “Offering
Notice”) at least seven Business Days prior to the date on which such shares are first offered
for sale to the public, which notice shall include (i) the first date on which the Company expects
to make such offer, (ii) the aggregate number of shares that the Company intends to offer and, to
the extent practicable, an indication of the expected price range or
expected basis for determining the price to public, (iii) the date and time by which the
recipient thereof shall be required to submit a preliminary indication of interest with respect to
participation in such offering, which deadline shall be no earlier than 5:00 p.m. PT on the third
Business Day immediately preceding the date identified pursuant to clause (i), and (iv) the
identity of the managing underwriters or placement agents, if any, for such offering. No later
than the date and time specified in the Offering Notice, each member of the WLR Group that wishes
to exercise its rights under Section 6.2(a) shall deliver to the Company and the managing
underwriters or placement agents, as applicable, of such offering, a written statement setting
forth the number of shares that such Person is interested in purchasing, which statement shall
indicate different numbers of shares based on assumed prices to the public for such offering. The
Company and each member of the WLR Group acknowledges that such indication of interest is not
intended to be an offer to purchase, but merely an indication of interest to assist the Company and
the managing underwriters or placement agent, as applicable, in structuring such offering and
preparing appropriate disclosure for the prospectus or preliminary term sheet related to such
offering. No later than the time at which the managing underwriters or placement agents, as
applicable, of such offering obtain from potential investors final indications of interest prior to
the pricing of such offering, each member of the WLR Group that has submitted a preliminary
indication of interest shall provide its final indication of interest to the Company and the
managing underwriters or placement agents, as applicable.

          (c) Notwithstanding the foregoing, if the Company determines in good faith that such offer and
sale to members of the WLR Group would conflict with applicable law or the rules and regulations of
the Applicable Exchange (without obtaining shareholder approval) (after consultation with legal
counsel and, if appropriate, representatives of the SEC and/or the Applicable Exchange and, if
requested, a representative of the WLR Group or its counsel) or prevent or materially delay the
consummation of such offering, no member of the WLR Group shall have any right to participate in
such offering and in lieu of such participation, to the extent permissible by then applicable law
and the rules and regulations of the Applicable Exchange (without obtaining shareholder approval)
as determined in good faith by the Company (after consultation with legal counsel and, if
appropriate, representatives of the SEC and/or the Applicable Exchange and, if requested, a
representative of the WLR Group or its counsel), the

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Company shall use reasonable efforts to
arrange for the private placement of a number of shares of Common Stock equal to that which such
applicable members of the WLR Group would have been entitled to purchase pursuant to Section 6.2(a)
in a transaction exempted from the registration requirements of the Securities Act, at the same
price at which shares were initially offered to the public (or, if the Company is restricted by
applicable law or the rules and regulations of the Applicable Exchange (without obtaining
shareholder approval) in its ability to sell and issue such number of shares, the maximum number of
shares of Common Stock allowable under such laws or rules and regulations). If any member of the
WLR Group elects to purchase shares in such private placement, such shares shall not be deemed
Registrable Securities until the six-month anniversary of the issuance thereof.

          (d) Each of WLR-IV, Parallel Employee Fund and each Permitted Transferee agree that any
exercise by any member of the WLR Group of its rights under this Section 6.2 shall be deemed to be
a waiver on behalf of it and each other member of the WLR Group of the rights of the WLR Group
under Article 5 in the applicable transaction. WLR-IV may waive the rights under this Section 6.2
on behalf of itself and the other members of the WLR Group.

          6.3. Certain Rights Offerings. If at any time on or after the date hereof, the Company
grants or issues rights to purchase
Common Stock pro rata to the record holders of shares of Common Stock at a per share price of less
than $6.00 (as adjusted for stock splits, dividends, combinations and the like) (the “Purchase
Rights”), then the Company shall offer each member of the WLR Group and any Holder that
received its Warrant pursuant to clause (vi) of Section 3.1(a) (but solely with respect to such
Warrants) that holds Warrants on the record date for grant or issuance of such rights, the right to
acquire, upon the terms applicable to such Purchase Rights, the aggregate number of shares of
Common Stock which such Holder could have acquired if such Holder had held a number of shares of
Underlying Common Stock equal to: (a) the number of shares of Underlying Common Stock issuable
upon exercise of all Warrants owned by such member of the WLR Group (without duplication) divided
by (b) the sum of (i) the aggregate number of shares of outstanding Common Stock and (ii) the
aggregate number of shares of Underlying Common Stock issuable upon exercise of all Warrants then
held by members of the WLR Group, in each case, determined as of the date immediately prior to the
date on which a record is taken for the grant or issuance of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be
determined for the grant or issue of such Purchase Rights, and in each case, determined without
giving effect to any limitations on the exercisability of such Warrants under Section 3.2(b) or
3.2(c) of the Warrant Agreement. Notwithstanding anything herein or in the Warrant Agreement to the
contrary, if any Person exercises his, her or its rights under this Section 6.3 with respect to a
particular grant or issuance of Purchase Rights, such exercise shall be deemed a waiver of such
Person to the adjustment provided for in Section 4.2 of the Warrant Agreement to the Exercise Price
of the Warrants, and number of shares issuable upon exercise of the Warrants, held by such Person
in respect of such grant or issuance of Purchase Rights.

          6.4. Termination. The provisions of this Article 6 shall terminate upon the earliest to occur of: (a) in the
case of Section 6.1 and Section 6.2, the 18-month anniversary hereof, and, in the case of Section
6.3, the fifth anniversary hereof, (b) the date on which Warrants shall have been exercised such
that at least 50% of the aggregate number of shares of Underlying Common Stock as of the date
hereof (as adjusted for stock splits, dividends,

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combinations and the like) shall have been issued,
(c) the date on which members of the WLR Group Beneficially Own less than 50% of the aggregate
number of shares of Underlying Common Stock as of the date hereof (as adjusted for stock splits,
dividends, combinations and the like), and (d) the occurrence of an event described in clause (iii)
or (iv) of the definition of Designee Termination Date in Section 2.1(d).

     7. MISCELLANEOUS

          7.1. Termination. This Agreement shall terminate, except for Sections 5.4, and 5.5 and this Article 7 and as
otherwise provided in this Agreement, as follows: (i) as to each Holder on the date that such
Holder no longer Beneficially Owns, and has no contractual or other right to acquire, any Warrants
or Underlying Common Stock, (ii) upon the written consent of the parties hereto in
such number and manner required for amendments hereto as provided in Section 7.7, or (iii)
except for Article 5 hereof, upon assignment by the Company in connection with a Change of Control
consummated without the consent of Holders.

          7.2. Expenses. Except as otherwise provided herein, all expenses incurred in connection with this
Agreement and the transactions contemplated hereby shall be paid by the party incurring such
expenses; provided, however, that the Company shall pay all reasonable
out-of-pocket costs incurred by WLR-IV, Parallel Employee Fund and Victoria McManus (and her
Affiliates) in connection with the negotiation and execution of this Agreement and the Warrant
Agreement.

          7.3. Successors and Assigns; Assignment. Except as otherwise expressly provided herein, the provisions hereof shall inure to the
benefit of, and be binding upon, the successors, permitted assigns, heirs, executors and
administrators of the parties hereto. This Agreement may not be assigned by (a) the Company (other
than by operation of law, including in connection with a Change of Control), without the prior
written consent of the Holders holding a majority of the Underlying Common Stock Beneficially Owned
by all Holders or (b) any Holder without the prior written consent of the Company, except that
each Holder may assign their respective rights and obligations without such consent in connection
with a Transfer made pursuant to and in accordance with the requirements for a Transfer under
Section 3.1 and to the extent and as set forth in Section 3.1 (but only with respect to the
Warrants or Underlying Common Stock, as applicable, so Transferred).

          7.4. No Third Party Beneficiaries. Except to the extent that rights are expressly granted to a party under the terms of this
Agreement, this Agreement is not intended to create any rights, claims or benefits inuring to any
Person that is not a party hereto nor create or establish any third party beneficiary hereto.

          7.5. Entire Agreement. This Agreement and the Warrant Agreement (together with any other agreements entered into
among the parties or their Affiliates in connection herewith) constitute the entire agreement and
supersede all prior agreements and understandings, both written and oral, between the parties with
respect to the subject matter hereof and thereof.

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          7.6. Severability. In case any provision of this Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

          7.7. Amendment and Waiver. No amendment, waiver or other modification of, or consent under, any provision of this
Agreement shall be effective against the Company, unless it is approved in writing by the Company,
and no amendment, waiver or other modification of, or consent under, any provision of this
Agreement shall be effective against any Holder, unless it is approved in writing by Holders
Beneficially Owning a majority in interest of the Underlying Common Stock Beneficially Owned by all
Holders; provided that if any amendment or waiver operates in a manner that purports by its
terms to treat any Holder differently from any other Holder in a manner adverse to such Holder, the
consent of such affected Holder shall also be required for such amendment or waiver to be binding
on such adversely affected Holder; provided further that any Holder may waive any
rights or provide consent with respect to itself; provided further that
notwithstanding the foregoing, the addition of a Holder as a party hereto in accordance with the
terms of Article 3 shall not constitute an amendment hereto and may be effected by the execution of
a counterpart hereto by such Holder and the Company. No waiver of any breach of any agreement or
provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof
or of any other agreement or provision herein contained.

          7.8. Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to
any party, upon any breach, default or noncompliance by another party under this Agreement, shall
impair any such right, power or remedy, nor shall it be construed to be a waiver of any such
breach, default or noncompliance, or any acquiescence therein, or of or in any similar breach,
default or noncompliance thereafter occurring. It is further agreed that any waiver, permit,
consent or approval of any kind or character on any Holder’s part of any breach, default or
noncompliance under this Agreement or any waiver on such Holder’s part of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this Agreement, by law or
otherwise afforded to any party, shall be cumulative and not alternative.

          7.9. Notices.

          (a) Any notice, demand or delivery authorized by this Agreement shall be sufficiently given or
made when sent by email or facsimile (with a copy thereof sent by first-class mail, postage prepaid
on the same day that the email or facsimile is dispatched) or when sent by overnight delivery, in
each case addressed to any Holder at such Holder’s address shown on the register of the Company and
to the Company, WLR-IV, Parallel Employee Fund or WLRCo. as follows:

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	If to the Company:

	 	The Greenbrier Companies, Inc.

One Centerpointe Drive, Suite 200

Lake Oswego, Oregon 97035

Fax: (503) 684-7553

Email: Martin.Baker@gbrx.com

Attention: General Counsel
	 
	With a copy to:

	 	Wilson Sonsini Goodrich & Rosati, Professional Corporation

650 Page Mill Road

Palo Alto, California 94304

Fax: (640) 493-6811

Email: jfore@wsgr.com

Attention: John A. Fore
	 
	If to WLR-IV,

Parallel Employee

Fund or WLRCo.:

	 	WLR Recovery Fund IV, L.P.

1166 Avenue of the Americas, 27th Floor

New York, New York 10036

Fax: (212) 317-4891

Email: wlross@wlross.com

Attention: Wilbur L. Ross, Jr.
	 
	With a copy to:

	 	Jones Day

222 East 41st Street

New York, New York 10017

Fax: (212) 326-3800

Email: raprofusek@jonesday.com

Attention: Robert A. Profusek

or to such other address as shall have been furnished to the party giving or making such notice,
demand or delivery.

          (b) Any notice required to be given by the Company to the Holders pursuant to this Agreement
shall be made in accordance with Section 7.9(a) to the Holders at their respective addresses as set
forth on their respective signature page at the time such Holder entered into this Agreement and
became a Holder or as otherwise shown on the register of the Company. Any notice that is sent in
the manner herein provided shall be conclusively presumed to have been duly given as set forth in
Section 7.9(a) whether or not the Holder receives the notice.

          7.10. Interpretation. The words “hereof”, “herein” and “hereunder” and words of like import used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. When reference is made in this Agreement to an Article or a Section, such reference
shall be to an Article or Section of this Agreement, unless otherwise indicated. The descriptive
headings of the several Articles and Sections of this Agreement are inserted for convenience and
shall not control or affect the meaning or construction of any of the provisions hereof. The
language used in this Agreement shall be deemed to be the language chosen by the parties hereto to
express their mutual intent, and no rule of strict construction shall

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be applied against any party.
Whenever the context may require, any pronouns used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns
shall include the plural, and vice versa. Any reference to any federal, state, local or foreign
statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder,
unless the context requires otherwise, and shall include all amendments of the same and any
successor or replacement statutes and regulations. All references to agreements shall mean
such agreement as may be amended or otherwise modified from time to time. Whenever the words
“include,” “includes” or “including” are used in this Agreement, they shall be deemed to be
followed by the words “without limitation.”

          7.11. Governing Law. This Agreement and all rights arising hereunder shall be governed by the internal laws of
the State of New York.

          7.12. Counterparts. This Agreement may be executed in any number of counterparts (and by different parties
hereto in different counterparts, including Persons who become a party to this Agreement after the
date hereof), each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

[Remainder of Page Intentionally Left Blank.]

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     IN WITNESS WHEREOF, the parties hereto have executed this Investor Rights and Restrictions
Agreement as of the date first set forth above.

	 	 	 	 	 
	 	THE GREENBRIER COMPANIES, INC.

 	 
	 	By:  	/s/ Mark J. Rittenbaum	 
	 	 	Name:  	Mark J. Rittenbaum	 
	 	 	Title:  	Executive Vice President, Treasurer and Chief Financial Officer	 
	 
	 	WLR RECOVERY FUND IV, L.P.,

 	 
	 	By:  	WLR Recovery Associates IV LLC,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	                  WL Ross Group, L.P.,
 	 
	 	 	its Managing Member 	 
	 	 	 
	 	By:  	                  El Vedado, LLC,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	/s/ Michael J. Gibbons	 
	 	 	Name:  	Michael J. Gibbons	 
	 	 	Title:  	Manager	 
	 
	 	WLR IV PARALLEL ESC, L.P.

 	 
	 	By:  	WLR Recovery Associates IV LLC,
 	 
	 	 	its Attorney-in-fact 	 
	 	 	 
	 	By:  	
WL Ross Group, L.P.,
 	 
	 	 	its Managing Member 	 
	 	 	 
	 	By:  	                                           El Vedado, LLC,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	/s/ Michael J. Gibbons	 
	 	 	Name:  	Michael J. Gibbons	 
	 	 	Title:  	Manager	 
	 
	 	WL ROSS & CO. LLC,

for purposes of Sections 4.8 and 7.3 through 7.12 only

 	 
	 	By:  	INVESCO Private Capital, Inc.,
 	 
	 	 	its Managing Member 	 
	 	 	 
	 	By:  	/s/ Michael J. Gibbons	 
	 	 	Name:  	Michael J. Gibbons	 
	 	 	Title:  	Chief Financial Officer	 

[Investor Rights and Restrictions Agreement]

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