Document:

Exhibit

Exhibit 10.1

Execution Copy

RAILCAR MANAGEMENT TRANSITION AGREEMENT
This RAILCAR MANAGEMENT TRANSITION AGREEMENT (this “Agreement”) is made and entered into as of December 16, 2016 (the “Effective Date”), by and among AMERICAN RAILCAR LEASING LLC, a Delaware limited liability company (“ARL”), AMERICAN RAILCAR INDUSTRIES, INC., a North Dakota corporation (“ARI”), and, solely for purposes of ARTICLE VI and ARTICLE IX, AMERICAN ENTERTAINMENT PROPERTIES CORP., a Delaware corporation (“AEPC”), SMRSH LLC, a Delaware limited liability company, and SMBC RAIL SERVICES LLC, a Delaware limited liability company.  ARL and ARI are at times referred to herein individually as a “Party” and collectively as the “Parties”.
WHEREAS, pursuant to that certain Equity and Asset Purchase Agreement, dated as of the date hereof (as amended, supplemented or modified from time to time, the “Purchase Agreement”), by and among ARL, AEPC, AEP Rail Corp. (collectively with AEPC, “Sellers”), SMBC Rail Services LLC (“Buyer”) and Sumitomo Mitsui Banking Corporation, solely for the purposes of ARTICLE I and XI therein, Buyer has agreed to acquire and Sellers have agreed to sell all of the issued and outstanding membership interests of ARL, as more fully described in the Purchase Agreement; 
WHEREAS, prior to the consummation of the transactions contemplated by the Purchase Agreement, ARL has operated a railcar leasing business on behalf of the Group Companies and as an agent and as manager on behalf of the ARI Entities (as each such term is defined below);
WHEREAS, after the consummation of the transactions contemplated by the Purchase Agreement, ARL intends to continue to operate a railcar leasing business on behalf of the Group Companies and ARI intends to operate a railcar leasing business on behalf of the ARI Entities; 
WHEREAS, ARI may, at a later date and with the mutual agreement of ARI and any RemainCo (as such term is defined below), become a manager or successor manager under a railcar management agreement with such RemainCo; and
WHEREAS, in anticipation of the transactions to be consummated pursuant to the Purchase Agreement, the Parties wish to conduct an orderly separation of their respective leasing businesses, including, among other things: (i) by transitioning the management of the ARI Entities’ railcar leasing business from ARL to ARI; (ii) by discharging certain obligations by and among the Group Companies and the ARI Entities; (iii) by ARI’s agreement to certain non-solicitation covenants; in each case, on the terms and conditions set forth herein; and (iv) by providing a mechanism for the possible later transition of the management of each RemainCo’s railcar leases from ARL to ARI.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
ARTICLE I.
DEFINITIONS
1.01    The following terms in this Agreement shall have the meaning given to such term as follows: 
“Action” means any claim, action, cause of action, suit, litigation, controversy, arbitration, investigation, formal inquiry, audit, hearing, charge, complaint, demand or notice of legal, administrative or other proceeding by or before any Governmental Entity or similar Person or body.

“Affiliate” means, with respect to any Person, any other Person who, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person.  For the avoidance of doubt, unless otherwise specified herein, the Group Companies shall be deemed Affiliates of Sellers (and vice versa) prior to and at the Initial Closing, and shall be deemed to be Affiliates of Buyer (and vice versa) after the Initial Closing, except that each RemainCo shall be deemed to be an Affiliate of Sellers (and vice versa) after the Initial Closing.  The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by Contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative thereto.
“Agency Shared Railcar Lease Agreement” means any lease Contract for any rolling stock or railcar, under which any of the Group Companies, either as original named party or as assignee, successor-in-interest, or designee, acts in a capacity as, or is named in a capacity that includes acting as, agent for the owner of rolling stock or railcars, either under the original Contract or under any of the riders, amendments, or supplements thereto.
“ARI Acknowledgment” means a Contract between the Customer, ARL and ARI, in a form of notice and acknowledgment reasonably satisfactory to ARL and ARI, which upon execution by the Customer, ARL and ARI, provides that (i) ARI Railcars pursuant to an ARI-ARL Shared Railcar Lease Agreement or ARI Only Shared Railcar Lease Agreement between the Customer and ARL, shall be governed by a new contractual arrangement between Customer and ARI on terms that are substantially similar to the existing terms of such Shared Railcar Lease Agreement (or, at the request of the Customer after a draft of such ARI Acknowledgement is delivered to the Customer, are on any such terms that ARI may agree to in its sole discretion (except that any revision to or omission of the release specified in clause (iv) shall require the consent of ARL)), (ii) any guarantors of such Shared Railcar Lease Agreement will continue to provide a guarantee under such new contractual arrangement, (iii) if applicable, any credit support be provided to ARI and (iv) ARL be released from its obligations with regards to ARI Railcars.
“ARI Books and Records” means originals or copies of any books and records, documents, data and information (in each case, in whatever form maintained) in the possession or control of the Group Companies that pertain or relate to the assets, liabilities, properties, businesses, conduct and operations of the ARI Entities, including, without limitation, ARI Data.
“ARI Data” means all data relating to the ARI Railcars within the Management System (as that term is defined in ARTICLE III).
“ARI Entities” means, collectively, ARI and its Subsidiaries.
“ARI Entity Railcars” means railcars owned (or leased as lessee) by any ARI Entity.
“ARI Only Shared Railcar Lease Agreement” means any Shared Railcar Lease Agreement pursuant to which the only railcars and rolling stock that are leased are ARI Railcars.
“ARI Railcars” means the rolling stock and railcars owned by ARI or its Subsidiaries other than Longtrain.
“ARI-ARL-Longtrain Shared Railcar Lease Agreement” means any Shared Railcar Lease Agreement pursuant to which ARI Railcars, Longtrain Railcars and ARL Railcars are leased.

	
			
	 
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“ARI-ARL Shared Railcar Lease Agreement” means any Shared Railcar Lease Agreement pursuant to which both ARI Railcars and ARL Railcars are leased.
“ARI-ARL RMA” means that certain Railcar Management Agreement, dated February 29, 2012, amended as of December 31, 2015, between ARI and ARL.
“ARL Railcars” means the rolling stock and railcars owned or leased (as lessee) by ARL or its Subsidiaries.
“Business Day” means any day, other than a Saturday, Sunday or other day on which banking institutions in the City of New York, New York, or in Tokyo, Japan, are required or authorized by Law or executive order to be closed.
“CAA” means that certain Collateral Agency Agreement, dated July 20, 2004, between U.S. Bank National Association, as Collateral Agent, ARL and each Pledgor thereto.
“Change of Control” means, with respect to any party (i) a direct or indirect transfer of the ownership of such party (other than to an Affiliate of such party), whether voluntary or by law, such that one or more transferees that did not immediately prior to such transfer control fifty percent (50%) or more of such party’s voting rights directly or indirectly controls fifty percent (50%) or more of such party’s voting rights after such transfer or (ii) any other sale, lease, license, transfer, purchase or other disposition of all or substantially all of the business of a party (other than to an Affiliate of such party), whether such sale is structured as a sale of stock, sale of assets, merger, consolidation, share exchange, business combination, reorganization, recapitalization, liquidation, dissolution or otherwise.
“Contract” means any agreement, indenture, undertaking, instrument, contract, purchase order, promise, loan, note, lease or other legally binding commitment or obligation, whether written or oral and whether express or implied.
“Covered Affiliate” means, as of the date of measurement, any Person that is Controlled, directly or indirectly, by Carl C. Icahn (“Icahn”), other than (a) (i) any company listed as an issuer on the most recent Schedule 13F filed by Icahn with the Securities and Exchange Commission as of the date hereof or as of the Initial Closing or (ii) any other Public Company in which Icahn or any of the Covered Affiliates has an interest as of the date hereof or acquires an interest after the date hereof, including ARI (except, in each case of the foregoing clauses (i) and (ii), to the extent that the applicable company ceases to be a Public Company), or (b) any direct or indirect Subsidiary of any company included within the foregoing clause (a); provided, that, notwithstanding the foregoing, Icahn Enterprises, L.P. shall be considered a Covered Affiliate.  For purposes of this definition, “Control” means possession, directly or indirectly, of power to elect a majority of the board of directors or other governing body of an entity (whether through ownership of securities or partnership or other ownership interests, by Contract or otherwise) and, without limiting the generality of the foregoing, (x) a Person who possesses, directly or indirectly, the power to Control the general partner of a limited partnership shall be deemed to Control such limited partnership, and (y) a Person who possesses, directly or indirectly, the power to Control the manager or managing member of a limited liability company shall be deemed to Control such limited liability company.  For purposes of this definition, “Public Company” means an entity having securities which are (i) listed on any tier of the New York Stock Exchange or the NASDAQ Stock Market or any other similar national or international securities exchange or (ii) quoted on any tier of the OTC Markets Group (including, without limitation, the OTCQX, OTCQB and OTC Pink marketplaces) or any other similar national or international quotation service.  For the avoidance of doubt, none of Cadus Corporation, CVR Energy, Inc., CVR Partners, LP, CVR Refining, LP, Federal-Mogul Holdings Corporation, Tropicana Entertainment Inc., Viskase Companies Inc., Voltari Corporation or any 

	
			
	 
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of their respective Subsidiaries shall be considered Covered Affiliates or Affiliates of ARI, unless and until any such Person ceases to be a Public Company or becomes a wholly owned Subsidiary of Icahn.
“Customer” means a party to any Shared Railcar Lease Agreement (other than Sellers, any ARI Entity or any Group Company) or any other Person (other than Sellers, any ARI Entity or any Group Company) who guarantees or is otherwise liable for the obligations of any such party under such Shared Railcar Lease Agreement.
“Enforceability Exceptions” means bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar Law of general application affecting or relating to the enforcement of creditors’ rights generally or general principles of equity, whether considered in a proceeding at Law or in equity.
“Governmental Approval” means the consent, approval, license, Permit, order, qualification, authorization of, or registration or other action by, or any filing with or notification to, any Governmental Entity.
“Governmental Entity” means any (i) federal, state, local, municipal, foreign or other government, (ii) governmental or quasi-governmental entity of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal), whether foreign or domestic, or (iii) body exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, whether foreign or domestic, including any arbitrator or arbitral tribunal or panel.
“Governmental Order” means any binding and enforceable order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Entity.
“Group Companies” means, collectively, ARL and its Subsidiaries; provided, that RemainCo shall not be a Group Company after the Initial Closing.
“Group Company Credit Facilities” means the credit facilities set forth on Schedule D hereto.
“Initial Closing” means the completion of the purchase of all the membership interests of ARL by SMBC Rail Services LLC, as contemplated by the Purchase Agreement.
“Initial Closing Date” means the actual date and time of the Initial Closing.
“LAA” means that certain Amended and Restated Lease Administration Agreement, dated October 2, 2006, between ARL, ARL Lease Administrators LLC, U.S. Bank National Association, and the Tranche II Owners thereto.
“Law” means any federal, state or local law (including common law), statute, ordinance, rule, regulation, judgment, order, injunction, stipulation, determination, decree, interpretation, bulletin, circular letter, published opinion, declaration, arbitration award or agency requirement or directive of, or by, any Governmental Entity.
“Longtrain” means Longtrain Leasing III, LLC, a Delaware limited liability company and a Subsidiary of ARI.
“Longtrain Acknowledgment” means a Contract between the Customer, ARL and ARI, in a form of notice and acknowledgment that is reasonably satisfactory to ARL and ARI, which upon the execution by 

	
			
	 
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the Customer, ARL and ARI (as agent for Longtrain), provides that (i) Longtrain Railcars or ARI Railcars pursuant to a Longtrain-ARL Shared Railcar Lease Agreement, Longtrain Only Shared Railcar Lease Agreement or ARI-ARL-Longtrain Shared Railcar Lease Agreement between the Customer and ARL, shall be governed by a new contractual arrangement between Customer and ARI (as agent for Longtrain) on terms that are substantially similar to the existing terms of such Shared Railcar Lease Agreement (or, at the request of the Customer after a draft of such Longtrain Acknowledgement is delivered to the Customer, are on any such terms that Longtrain may agree to in its sole discretion (except that any revision to or omission of the release specified in clause (iv) shall require the consent of ARL)), (ii) any guarantors of such Shared Railcar Lease Agreement will continue to provide a guarantee under such new contractual arrangement, (iii) if applicable, any credit support be provided to ARI (as agent for Longtrain) and (iv) ARL be released from its obligations with regards to the ARI Railcars or Longtrain Railcars.
“Longtrain-ARL RMA” means that certain Railcar Management Agreement, dated January 29, 2015, between Longtrain and ARL.
“Longtrain-ARL RMA Consent” means the applicable consents necessary with respect to the Longtrain-ARL RMA to effect the resignation of ARL as Manager under the Longtrain-ARL RMA and the appointment of ARI as Successor Manager under the Longtrain-ARL RMA or the termination of the Longtrain-ARL RMA and the entering into of a railcar management agreement between Longtrain and ARI, including the requisite consent of the noteholders under the Longtrain Indenture.
“Longtrain-ARL Shared Railcar Lease Agreement” means any Shared Railcar Lease Agreement pursuant to which both Longtrain Railcars and ARL Railcars are leased.
“Longtrain Indenture” means that certain Indenture, dated January 29, 2015, by and between Longtrain and U.S. Bank National Association, as Indenture Trustee.
“Longtrain Only Shared Railcar Lease Agreement” means any Shared Railcar Lease Agreement pursuant to which the only railcars and rolling stock that are leased are either (i) Longtrain Railcars or (ii) Longtrain Railcars and ARI Railcars.
“Longtrain Railcars” means the rolling stock and railcars owned by Longtrain.
“Mileage Payments” means compensation by railroads paid to owners of railcars or their assignees as a result of such owner supplying railcars used to transport commodities on such railroad’s system.
“Mileage Report” means any report from a railroad or the Association of American Railroads (or any successor thereto) concerning mileage or mileage compensation with respect to railcars administered under the LAA.
“New ARI Bank Account” means a bank account that shall be managed by ARL until the Initial Closing and managed by ARI thereafter, which for the avoidance of doubt shall not be the Lockbox Account (as defined in the ARI-ARL RMA).
“Permits” means permits, licenses, approvals, certificates, governmental qualifications, registrations, orders, variances, waivers and other authorizations of and from all Governmental Entities.
“Person” means any natural person, general or limited partnership, corporation, limited liability company, limited liability partnership, firm, joint stock company, Governmental Entity, unincorporated 

	
			
	 
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organization or association, trust, joint venture, association or other similar entity, whether or not a legal entity.
“Pre-Closing Transition Period” means the period of time beginning on the Effective Date and ending on the Initial Closing Date.
“RemainCo” means each entity that is, as of the date of its formation, a Subsidiary of ARL and that is formed prior to or contemporaneously with the Initial Closing in order to hold the RemainCo Railcars.  There shall not be more than two separate Persons that constitute a RemainCo.
“RemainCo Books and Records” means originals or copies of any books and records, documents, data and information (in each case, in whatever form maintained) in the possession or control of the Group Companies that pertain or relate to the assets, liabilities, properties, businesses, conduct and operations of any RemainCo, including, without limitation, RemainCo Data.
“RemainCo Data” means all data relating to the RemainCo Railcars within the Management System.
“RemainCo RMA” means each Railcar Management Agreement to be entered into by and between ARL and RemainCo as of the Initial Closing Date.
“RemainCo Railcars” means those rolling stock and railcars the ownership of which (or the rights therein as lessee) are transferred to any RemainCo by a Group Company on or before the Initial Closing Date, but only to the extent that, as of the relevant date, such rolling stock or railcars are owned (or leased as lessee) by such RemainCo.
“RemainCo Start Date” means the date on which ARI becomes the manager or successor manager under any RemainCo RMA, as applicable to the RemainCo Railcars that are owned (or leased as lessee) by the RemainCo party to such RemainCo RMA, in accordance with the terms of the applicable RemainCo RMA.
“Representative” means, with respect to any Person, the directors, officers, principals, partners, managers, members, employees, attorneys, advisors, agents, stockholders, equity holders, consultants, independent accountants, investment bankers, counsel or other representatives of such Person and of such Person’s Affiliates or, with respect to Sellers, such Sellers’ respective Covered Affiliates.
“Redacted Information” means any information with regards to pricing, monetary amounts, fees, car numbers, and term.
“Shared Railcar Lease Agreement” means any lease Contract for any rolling stock or railcar, under which any of the Group Companies, either as original named party or as assignee, successor-in-interest, or designee, acts in a capacity as, or is named in a capacity that includes acting as, agent for the owner of rolling stock or railcars (other than if the only owner or owners thereunder are one or more Group Companies), either under the original Contract or under any of the riders, amendments, or supplements thereto.
“Specified Obligations” means any Obligations of the Group Companies (i) under the ARI-ARL RMA and the Longtrain-ARL RMA that, solely to the extent provided for in either such agreement, survive following termination of such agreement and (ii) under this Agreement solely to the extent that such Obligations arise during the Pre-Closing Transition Period.

	
			
	 
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“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association, or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof or (ii) if a limited liability company, partnership, association, or other business entity (other than a corporation), a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more Subsidiaries of such Person or a combination thereof and for this purpose, a Person or Persons own a majority ownership interest in such a business entity (other than a corporation) if such Person or Persons shall be allocated a majority of such business entity’s gains or losses or shall be a, or control any, general partner of such business entity (other than a corporation).  The term “Subsidiary” shall include all Subsidiaries of such Subsidiary and shall refer to any Subsidiaries that exist now or may be created in the future. 
“Third Party Approval” means any consent, agreement, sublicense, approval, authorization, action, notice, estoppel certificate or waiver of, to or by any third party (other than a Governmental Entity).
1.02    Interpretation and Construction.  The words “hereof,” “herein,” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  Terms defined in the singular shall have correlative meanings when used in the plural, and vice versa.  The headings herein are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect any of the provisions hereof.  Where a reference in this Agreement is made to a Section or Article, such reference shall be to a Section or Article of this Agreement unless otherwise indicated.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”  The Parties have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement must be construed as if drafted jointly by the Parties and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.
ARTICLE II.
GENERAL MANAGEMENT TRANSITION COVENANTS
2.01    General.  Subject to the terms and conditions of this Agreement, during the Pre-Closing Transition Period, the Parties shall use their respective commercially reasonable efforts to cooperate with each other in all matters to effect an orderly and smooth transition of the railcar leasing business of the ARI Entities from ARL’s management to ARI’s management, and upon and following any RemainCo Start Date, the management of the railcar leases of the applicable RemainCo from ARL’s management to ARI’s management.  ARL shall perform, and shall cause the Group Companies to perform, the obligations set forth in this Agreement in exchange for ARI’s agreement in Section 2.07 and Section 2.10.  The Group Companies shall receive no fee, commission or other payment for performing the obligations set forth herein.
2.02    Ownership.  To the extent that the Group Companies or ARI Entities (or any of their respective Affiliates) own any property, assets, rights, licenses, permits, titles or interests of any kind and nature that are owned or held for the benefit of the other Party or its Subsidiaries, each Party hereby covenants that it will (and it will cause its Affiliates to), from time to time upon the other Party’s request, do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, all further acts, conveyances, transfers, assignments and assurances as reasonably may be required to convey or transfer to 

	
			
	 
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the applicable Party, any such property, assets, rights, titles, interests, liabilities, and/or obligations, as applicable, free and clear of all liens.
2.03    Coordinators.  Each Party shall designate in writing a representative to act as its primary contact person to coordinate the performance of this Agreement (collectively, the “Coordinators”).  Each Party may treat an act of a Coordinator of the other Party as being authorized by such other Party without inquiring behind such act or ascertaining whether such Coordinator had authority to so act; provided, that, no such Coordinator has authority to amend this Agreement or any of its terms.  Each Party shall, as applicable, advise the other Party in advance in writing of any change in the Coordinator, setting forth the name of the Coordinator to be replaced and the name of the replacement, and certifying that the replacement Coordinator is authorized to act for such Party in all matters relating to this Agreement as provided in this Section 2.03.  ARL’s initial Coordinator shall be John O’Bryan.  ARI’s initial Coordinator shall be Jeffrey S. Hollister.
2.04    Level and Scope of Obligations.  The Parties shall perform the obligations set forth herein in compliance in all material respects with all applicable Laws, rules and regulations, exercising the same degree of care, quality and timeliness as each exercises in performing the same or similar services for its own business.  Nothing in this Agreement shall require the Parties to perform, or cause to be performed, any obligations in a manner that would constitute a violation of applicable Law.
2.05    Access.  From and after the Effective Date until the earlier of the Initial Closing Date or the termination of this Agreement in accordance with its terms, ARL shall afford to the officers, employees, accountants, counsel and other Representatives of ARI, reasonable access, during normal business hours upon reasonable advance notice, to the books and records of ARL relevant to the obligations hereunder (but not the Group Companies’ systems except to the extent otherwise provided hereby or otherwise reasonably necessary to obtain access to such books and records and only for such purpose) subject to ARTICLE VII hereof and the terms of any confidentiality agreements or provisions between the Group Companies and the ARI Entities set forth in the ARI-ARL RMA, Longtrain-ARL RMA, LAA and CAA.
2.06    Books and Records.
(a)    Prior to the Initial Closing Date, Sellers shall use commercially reasonable efforts to cause all ARI Books and Records in the possession of the Group Companies to be segregated and delivered to ARI in such format as ARI may reasonably request.  From and after the Initial Closing Date, the Group Companies shall use commercially reasonable efforts to deliver any ARI Books and Records that may, from time to time, be in the possession of the Group Companies, to ARI, at ARI’s cost and in such format as ARI may reasonably request.  From and after any RemainCo Start Date, the Group Companies shall use commercially reasonable efforts to deliver the applicable RemainCo Books and Records that may, from time to time, be in the possession of the Group Companies, to ARI, at ARI’s cost (which ARI may recover from the applicable RemainCo) and in such format as ARI may reasonably request.
(b)    In the event that, following such delivery, except as ARI may agree in its sole discretion, (i) any copy, backup, image, or other form or version or electronic vestige of any portion of such ARI Books and Records (or, after any RemainCo Start Date, the applicable RemainCo Books and Records), remains accessible to or discoverable or retrievable by Buyer or the Group Companies (each, a “Residual Record”), or (ii) to the extent that any ARI Books and Records (or, after any RemainCo Start Date, the applicable RemainCo Books and Records) cannot reasonably be segregated from the other books and records of the Group Companies (each, a “Combined Record” and, together with a Residual Record, the “Maintained Records”), then, in the case of each (i) and (ii), from and after the Initial Closing (or, in the case of RemainCo Books and Records, the applicable RemainCo Start Date), ARL agrees that (X) it will not, and will cause its 

	
			
	 
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Affiliates and their respective Representatives not to, intentionally use or attempt to use any means to access, retrieve, restore, recreate, unarchive or otherwise gain access to or view any Maintained Record for any purpose, and (Y) it will, and will cause its Affiliates and their respective Representatives to, keep such Maintained Records confidential and treat such information as confidential information subject to ARTICLE VII hereof, in each case, subject to the terms and conditions of this Agreement.
(c)    Until the expiration of four (4) years after all obligations under this Agreement have been satisfied (or such later date as may be required by applicable Law), the Group Companies shall maintain the Maintained Records, and any books and records relating to the Group Companies’ management of the ARI Entities’ railcar leasing business (and, with respect to any RemainCo or RemainCo Railcars as to which the RemainCo Start Date has occurred, the Group Companies’ management of the applicable RemainCo Railcars prior to such RemainCo Start Date) and the provision of services hereunder (collectively, the “Total Record”), to the extent consistent with how such books and records were kept by the Group Companies with respect to the ARI Entities’ (and, as applicable, RemainCo’s) business prior to the consummation of the transactions contemplated by the Purchase Agreement (taking into account any change in the keeping of books and records that is necessary or reasonably desirable as a result of this Agreement and the transactions contemplated by the Purchase Agreement).  Notwithstanding the foregoing sentence, the Group Companies shall keep such books and records for a longer period of time as expressly directed in writing by ARI if ARI notifies ARL in writing that, in ARI’s reasonable discretion, the preservation of such books and records is necessary or advisable in connection with any pending or threatened Action that may involve ARI or any of its Affiliates (or, with respect to any RemainCo with respect to which the RemainCo Start Date has occurred, the applicable RemainCo).
(d)    Using only those Representatives of ARL that have a bona fide need to handle such information, ARL shall until the expiration of four (4) years after all obligations under this Agreement have been satisfied (or such later date as may be required by applicable Law) make the Total Record (including financial data required for filings and audits, in either electronic or paper form) available to the ARI Entities for use and copying (i) upon reasonable written notice, during normal business hours, (ii) subject to reasonably imposed security procedures and limitations, (iii) at ARI’s cost and (iv) subject to compliance with ARTICLE VII.  The Group Companies shall not access or use the Total Record, except as expressly directed in writing by ARI or as required by applicable Law, and shall destroy (unless prohibited from destroying by applicable Law) and certify the destruction of such books and records upon ARI’s request.
(e)    After the Initial Closing, except as ARI might agree in its sole discretion or as contemplated by this Agreement, if any Group Company receives Customer information related to the ARI Entity Railcars (or, after any RemainCo Start Date, the applicable RemainCo Railcars), it will (i) deliver such information to ARI, (ii) cease any review of such information, (iii) provide written notice to ARI regarding receipt of such information and (iv) reasonably cooperate with ARI in seeking to prevent such Group Company’s receipt of such information.  After the Initial Closing except as ARL might agree in its sole discretion or as contemplated by this Agreement, if any ARI Entity receives Customer information related to the ARL Railcars (or related to any railcars that cease to be a RemainCo Railcar, prior to the applicable RemainCo Start Date), it will (i) deliver such information to ARL, (ii) cease any review of such information, (iii) provide written notice to ARL regarding receipt of such information and (iv) reasonably cooperate with ARL in seeking to prevent such ARI Entity’s receipt of such information.
(f)    Notwithstanding anything to the contrary set forth in this Section 2.06, nothing in this Section 2.06 shall require any Group Company to take any action if such action would reasonably be expected to impair its ability to perform its obligations under the ARI-ARL RMA or the Longtrain-ARL RMA at any time such agreement remains in effect.

	
			
	 
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2.07    Non-Solicitation.  From the Effective Date until twenty-four (24) months after the Initial Closing Date, ARI shall not directly or indirectly, solicit for employment or hire any employee of any of the Group Companies; provided, however, that ARI or its Affiliates may solicit for employment or hire (a) as of the Effective Date, the individuals listed in Schedule A-1 hereto, (b) the individuals listed in Schedule A-2 hereto, each of whom may be solicited during the Pre-Closing Transition Period and who may be hired on or following the Initial Closing, (c) those employees of the Group Companies identified by Sellers to Buyer on a final list of individuals who will be employed by Sellers, ARI or their respective Affiliates following the Initial Closing in accordance with the timing set forth in the Purchase Agreement or (d) any Person who is terminated or otherwise discharged by any of the Group Companies following the Initial Closing whether with or without cause.  The foregoing sentence is referred to herein as the “Non-Solicitation/Non-Hire Provision.”  The Non-Solicitation/Non-Hire Provision shall lapse and be of no further force or effect, without any further action by any Person, immediately upon a Change of Control of ARL that occurs following the Initial Closing.
2.08    Transition Assistance.  During the Pre-Closing Transition Period, ARL shall make the individuals listed in Schedule A-2 hereto available on a reasonable basis to the ARI Entities to assist in planning and preparing for the transition to ARI of the management of the ARI Entities’ railcar leasing businesses, including assisting the ARI Entities in hiring employees and engaging third party contractors, if necessary; provided, that, assistance provided pursuant to this Section 2.08 shall not adversely disrupt such individual’s day-to-day duties to ARL.  For the avoidance of doubt, any assistance provided by ARL employees to ARI pursuant to the terms of the ARI-ARL RMA or the Longtrain-ARL RMA shall continue to be provided until such time as each such agreement is discharged and released in accordance with the terms of this Agreement.
2.09    ARL Only Railcar Lease Agreements.  Nothing herein shall require ARL to cooperate or assist ARI with ARI’s solicitation of or ARI’s entering into any lease Contract for any rolling stock or railcars with any counterparty to a lease Contract of ARL, if such counterparty is not a Customer, except that (i) ARL will provide to ARI as soon as practicable following the Effective Date, all contact information for all customers that are a party to an Agency Shared Railcar Lease Agreement (other than a Shared Railcar Lease Agreement), along with copies of all such Agency Shared Railcar Lease Agreements (other than Shared Railcar Lease Agreements and the Redacted Information); (ii) ARL shall from time to time provide ARI with copies of any additional contact information or such Agency Shared Railcar Lease Agreements (other than a Shared Railcar Lease Agreement and the Redacted Information) that come into any Group Company’s possession prior to the Initial Closing as soon as practicable after taking possession thereof; (iii) ARL has provided to ARI, or from time to time will provide as soon as practicable following the Effective Date, all contact information for all customers that have purchased ARI railcars prior to the date hereof or that do purchase ARI railcars from and after the date hereof until Initial Closing; (iv) nothing in this Section 2.09 shall relieve ARL of any of its obligations under the ARL-ARI RMA or the ARL-Longtrain RMA until such time as each such agreement is discharged and released in accordance with the terms of this Agreement; (v) nothing herein shall prohibit ARI from soliciting any customer, including, without limitation, any customer that is counterparty to a lease Contract of ARL; and (vi) ARL shall make John O’Bryan available on a reasonable basis to the ARI Entities to provide strategic planning assistance in connection with the ARI Entities’ activities under this Section 2.09.
2.10    Discharge of Obligations.  As of, and simultaneously with, the Initial Closing, the Group Companies and ARI Entities hereby agree, without any further action by any party, that any Contract or arrangement, including, without limitation, the agreements listed on Schedule E hereto, between any of the Group Companies on the one hand and any of the ARI Entities on the other hand shall be terminated (other than the ARI-ARL RMA, the Longtrain-ARL RMA, the CAA and the LAA which shall be terminated pursuant 

	
			
	 
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to Section 4.02 and Section 5.03, as applicable), and all obligations, duties, and liabilities (collectively, “Obligations”) thereunder shall be discharged and released hereby, and that such Obligations shall thereafter have no further force or effect (other than Obligations under the ARI-ARL RMA, the Longtrain-ARL RMA, the CAA and the LAA which shall be discharged and released pursuant to Section 4.02 and Section 5.03, as applicable); provided, that, nothing herein contained shall discharge or release or be deemed to discharge or release any Group Company or ARI Entity from its respective Obligations under (A) the agreements specifically listed on Schedule B hereto to the extent provided on Schedule B and (B) this Agreement (except that any Specified Obligations defined in clause (ii) of the definition of Specified Obligations shall be irrevocably discharged and released hereby only with respect to ARL and such Specified Obligations instead shall be undertaken by AEPC in accordance with Section 6.01(a) hereof).
2.11    Payments.  From and after the Initial Closing Date, if any Party or its Subsidiaries receives any money (including payment of any account receivables) or any payment that is attributable to a lease, good or service provided by the other Party or its Subsidiaries pursuant to the provisions of this Agreement or any other Contract, then the receiving Party shall hold such money or payment in trust for the respective other Party or Subsidiary, pay or transfer such money or payment, without setoff, to such other Party or Subsidiary as soon as practicable following receipt thereof and, in any case, within ten (10) Business Days from the date of receipt by the receiving Party or Subsidiary of such money or payment.  In all cases where any payments are to be shared or reapplied among the Group Companies and ARI Entities, the payments shall first be applied to the oldest unpaid invoices of each of them, pro rata, and then to the next oldest unpaid invoices of each of them, pro rata, and so on.  Notwithstanding the other provisions of this Section 2.11, all payments received by either party that are governed by the terms of the Longtrain-ARL RMA, the LAA or the CAA at any time shall be subject to and handled in accordance with the terms of such agreement (subject to the provisions of Section 5.02(d)).
2.12    Contact Information.  ARL has provided, or will provide as soon as practicable following the Effective Date, to ARI, all contact information for all customers that are a party to a Shared Railcar Lease Agreement, along with copies of all of the Shared Railcar Lease Agreements (other than the Redacted Information related only to ARL railcars) and correspondence and documentation and database information relating to ARI Railcars and Longtrain Railcars, including as to payment history (the “SRLA Information/Documents”).
2.13    Pre-Closing SRLA Information/Documents.  ARL shall provide ARI with copies of any additional SRLA Information/Documents that come into any Group Company’s possession prior to the Initial Closing as soon as practicable after taking possession of such SRLA Information/Documents.
2.14    Necessary Notices.  If applicable, in connection with the ARI Acknowledgements, the Longtrain Acknowledgements, and the assignments of Shared Railcar Lease Agreements to be made pursuant to this Agreement, ARL shall provide all necessary notices of the ARI Entities ownership (1) to each railroad from which Mileage Payments or Mileage Reports are delivered, (2) to the Official Railway Equipment Register, (3) to any Customers, and (4) to any other applicable third parties.
2.15    Management Services.
(a)    Services Provided.  The Parties acknowledge and agree that, prior to the Effective Date, ARL staff uses the Management System, on behalf of ARI and Longtrain in connection with ARL’s role as manager under the ARI-ARL RMA and the Longtrain-ARL RMA, to perform certain data administration services, including data input, reporting and extraction, related to the following functions: (1) fleet management; (2) customer and vendor billing coordination and payment; (3) production of 

	
			
	 
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management reports; (4) repair and maintenance; (5) general record-keeping; (6) regulatory compliance; and (7) marketing, re-leasing and sales (such data administration services, collectively, the “Services”).  From and after the Effective Date and until ARI confirms in writing that ARI is independently able to perform the Services using the Management System, but in no event later than six (6) months after the Initial Closing Date, each Group Company will continue to use the Management System to provide the Services or permit ARI resources to use the Management System to perform the Services (if the Parties so determine pursuant to Section 2.15(b)) in a manner consistent with the past practice of ARL under the ARI-ARL RMA and the Longtrain-ARL RMA prior to the Effective Date.  ARI shall provide such confirmation as soon as reasonably practicable. For the avoidance of doubt, (x) the Group Companies shall not be responsible for the provision of any Services other than to the extent that ARL was providing such Services to ARI or Longtrain prior to the Effective Date, and (y) ARI and Longtrain shall be responsible for all business decisions related to the functions set forth above and the Group Companies’ obligations under this Section 2.15(a) shall be limited to data administration in connection therewith.  For the avoidance of doubt, any assistance provided by ARL employees to ARI pursuant to the terms of the ARI-ARL RMA or the Longtrain-ARL RMA shall continue to be provided until such time as each such agreement is discharged and released in accordance with the terms of this Agreement.
(b)    Resources.  The Services shall be provided by a combination of (1) ARL employees; (2) ARI employees, who shall be engaged in connection with the Services at ARL’s reasonable request; or (3) temporary workers, consultants or contractors, to be retained by ARL with ARI’s prior written consent, such consent not to be unreasonably withheld. The Parties shall cooperate in good faith to determine the appropriate number and combination of the foregoing individuals.
(c)    Costs.  ARL’s provision of the Services shall be at ARI’s expense and shall be calculated based on the fully-loaded overhead cost to ARL of the staff used to perform the Services.  In the event that the Services are provided by temporary workers, consultants or contractors engaged by ARL in accordance with Section 2.15(b), ARI shall be responsible for the fully-loaded cost of any such temporary workers, consultants or contractors.
(d)    Limitation of Liability; Indemnity. In no event will ARL be liable to ARI in connection with providing Services other than in the case of (a) the fraud, gross negligence or willful misconduct of ARL or any of the Group Companies, or (b) a breach of the confidentiality obligations in ARTICLE VII by ARL or any of the Group Companies.  ARI will indemnify, defend, and hold ARL harmless against any and all claims, liabilities, damages, losses, costs, expenses (including, but not limited to, settlements, judgments, court costs and reasonable attorneys’ fees), fines and penalties (“Losses”) arising out of or relating to ARL’s or any Group Company’s performance of the Services under this Agreement, except to the extent that such Losses are the result of (x) the fraud, gross negligence or willful misconduct of ARL or any of the Group Companies, or (y) a breach of the confidentiality obligations in ARTICLE VII by ARL or any of the Group Companies.
ARTICLE III.
INTELLECTUAL PROPERTY
3.01    ARI Data.  All ARI Data shall belong solely and exclusively to ARI and shall be provided to ARI prior to or contemporaneously with the Management System.
3.02    Management System License.

	
			
	 
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(a)    By no later than thirty (30) days after the Effective Date, the Group Companies shall provide ARI with complete copies of the software system that ARL uses for the management of owned and leased railcar fleets, including, without limitation, all of the software (in both object code and source code form), scripts, configuration data, system set-up data, other data tables (but not ARL railcar or railcar lease data), interfaces, conversions, database backup and restore procedures, disaster recovery procedures and other non-hardware components and information reasonably necessary to make the system operational, as well as related documentation (collectively, the “Management System”).  ARL shall provide ARI any updates, upgrades or enhancements developed during the Pre-Closing Transition Period as soon as reasonably practicable.  ARL shall have no duty to provide any updates, upgrades or enhancements developed after the Initial Closing Date, nor any obligation to correct any errors in the Management System.  ARL shall use commercially reasonable efforts to ensure that (i) the copies of the Management System delivered to ARI do not contain the Group Companies’ confidential customer data (other than the Management System itself) and (ii) that the copies of the Management System retained by ARL do not include the confidential information of Sellers, their Covered Affiliates and any ARI Entities; provided, that, the Group Companies may retain a copy of the ARI Data to the extent necessary and solely for purposes of providing the services related to the Management System in this Section 3.02.  The Management System is being provided on an as-is basis without any representations or warranties of any kind.  For the avoidance of doubt, the license granted hereunder shall supersede any license to the Management System granted in the LAA with respect to ARI only, and Longtrain shall receive the benefits and burdens of both the license granted in the LAA and the license granted hereunder, except that nothing herein shall add to the burdens or reduce the rights of Longtrain or its successors and assigns under the LAA.
(b)    From and after the Effective Date, ARL shall and does grant the ARI Entities (the “Licensees”) a non-exclusive, worldwide, perpetual, irrevocable, fully paid-up, non-transferrable (except as set forth herein), non-sublicensable (except as set forth herein), royalty-free right and license to: (i) copy, install, execute, use, and allow use of the Management System by the Licensees and their respective employees, agents and independent contractors solely for the Licensees’ internal business purposes in connection with the Licensees’ railcar leasing businesses; (ii) deploy and allow access to the Management System online in conjunction with the Licensees’ internal business purposes substantially consistent with the deployment and allowance of access prior to the Effective Date, including, but not limited to, on Internet websites available to customers and/or the public; (iii) modify, adapt, translate, enhance, improve, and create derivative works from the Management System, which adaptations, translations, enhancements, improvements, and derivative works shall be the sole and exclusive property of Licensees; provided, that, any such ownership does not in any way interfere with or diminish ARL’s ownership of, and rights to, the Management System and shall not confer any additional rights to Licensees of the Management System; (iv) use the Management System for purposes of development, testing, back-up, disaster recovery, high availability, clustering and archiving; (v) use the Management System on any or all current and future operating systems and any or all current and future hardware platforms on which the Management System (in its current form or as modified by or on behalf of Licensees) is capable of running, regardless of hardware or operating system capacity; and (vi) transfer the Management System to other systems, hardware platforms or locations owned or controlled by a Licensee within any of its global computing environments.  Licensees may exercise the foregoing rights and licenses through their own personnel or through third-party service providers (including consultants, outsourcing providers, and disaster recovery providers) and, in connection with such exercise, Licensees may grant a limited sublicense to such parties, on terms no less restrictive than those contained herein.  For the avoidance of doubt, Licensees may not use the foregoing rights and licenses to provide railcar management services to, or to use the Management System or any portion thereof on behalf of or for the benefit of any Person that is not a Licensee or a Covered Affiliate, and Licensees may not transfer, sell, assign or otherwise dispose of the license granted hereunder; provided, that, Licensees shall be entitled to (i) assign their rights to and obligations regarding the Management System to one or more of 

	
			
	 
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their Covered Affiliates; (ii) assign their rights to and obligations regarding the Management System to any subsequent purchaser of all or substantially all of the Licensees’ leasing business (whether such sale or transfer is structured as a sale of a division, sale of a Subsidiary, sale of stock, sale of assets, merger, recapitalization or otherwise); (iii) collaterally assign the Management System to their lender(s) and hypothecate, pledge or otherwise use the Management System as security in connection with financing transactions; (iv) pledge a copy of the Management System pursuant to a provision in any of its intercreditor agreements substantially similar to Section 8 of the LAA; or (v) use the Management System for the benefit of any Person as part of a sale/lease back or structured financing transaction, where such Person owns railcars but is not engaged in the operation or leasing of railcars except through a third party manager.
(c)    The Group Companies shall own all right, title and interest in and to any intellectual property rights (including, without limitation, any inventions, works of authorship, processes, methods, algorithms, software and data structures) that are created by the Group Companies in the course of performance of this Agreement.  The ARI Entities shall have, and the Group Companies hereby grant to the ARI Entities, a non-exclusive, worldwide, perpetual, irrevocable, fully paid-up, royalty free right and license to fully exploit any intellectual property rights that are created by the Group Companies in the course of performance of this Agreement and that relate to or would be advantageous if used in the railcar leasing business, whether or not such intellectual property rights are created specifically and exclusively for the ARI Entities. 
(d)    For a period beginning on the Effective Date and ending on the date that is nine (9) months after the Initial Closing Date, ARL shall provide reasonable assistance and training to ARI in connection with the implementation and use of the Management System; provided, that, such assistance does not adversely disrupt the day-to-day business of ARL.  Notwithstanding anything to the contrary contained in this Section 3.02, ARL shall have no duty to provide ARI with access to any maintenance or support services that are provided by third parties.
(e)    Upon ARI’s written request, the Group Companies shall permanently delete all ARI Data (and, upon and following any RemainCo Start Date, all applicable RemainCo Data) and provide written certification of destruction signed by an authorized officer.  To the extent that any ARI Data or, as applicable, RemainCo Data, cannot be deleted (e.g., ARI Data or RemainCo Data on archived backup tapes), it shall be treated as a Maintained Record in accordance with Section 2.06.  Notwithstanding the foregoing, in no event shall the Group Companies be requested to take any action pursuant to this Section 3.02(e) if such action would reasonably be expected to impair its ability to perform its obligations under the ARI-ARL-RMA or the Longtrain-ARL RMA.
3.03    Trademark License.
(a)    ARI shall and does grant to the Group Companies the right and license to use the trademarks identified in the attached Schedule C (the “Licensed Trademarks”) in connection with the operation of and products associated with operating a railcar leasing business.  ARI grants the foregoing license for a period of six (6) months from and after the Initial Closing Date or such longer time period permitted by Section 3.03(b), solely to facilitate the removal of Licensed Trademarks from any and all vehicles, facilities, signage, railcars, equipment, stationery, business cards, advertising materials, web content, inventory, packaging, product, service and training literature, credit and collection materials and all other similar materials of the Group Companies; provided, however, that during such six (6) month transition period, subject to Section 3.03(b), the Group Companies shall use commercially reasonable efforts to change the Group Companies’ corporate names and to discontinue the use of the name “American Railcar” and the other Licensed Trademarks as soon as practicable.

	
			
	 
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(b)    Notwithstanding the foregoing, (i) if there is an outstanding Group Company Credit Facility currently in place with regards to any particular Group Company, that Group Company shall not be required to change its corporate name if it includes the Licensed Trademarks or any other similar term or derivative thereof until such time as such Group Company Credit Facility is refinanced, repaid, matured or otherwise terminated, and (ii) ARL shall not be required to remove the licensed trademarks from any Group Company railcars bearing those marks until such time as a railcar requires cleaning, maintenance or repair work or is otherwise in the possession or control of ARL. 
(c)    ARL acknowledges that it shall not have and shall not acquire any rights to or interest in the Licensed Trademarks and any derivatives thereof, and that all use of the Licensed Trademarks and any derivatives thereof, and any goodwill arising from such use, shall inure solely to the benefit of ARI.  Neither during the term of this license, nor after its expiration or termination shall ARL (i) assert, or permit or assist any third party to assert, any claim to the Licensed Trademarks or any goodwill relating to them; or (ii) adopt or use any name or mark that is a derivative of the Licensed Trademarks or is substantially similar to or likely to cause confusion with the Licensed Trademarks. 
(d)    ARL shall provide ARI with a written report on a quarterly basis, beginning on the first day of the first fiscal quarter following the Initial Closing and on the first day of each fiscal quarter thereafter, and ending with the fiscal quarter following the Initial Closing during which the Licensed Trademarks cease to be used by any Group Company or to appear on any ARL Railcars, that provides: (i) the name of every Subsidiary that continues to include the Licensed Trademarks or any other similar term or derivative thereof; (ii) the identification number of every railcar from which the Licensed Trademarks or any other similar term or derivative thereof have been removed during the preceding quarter; and (iii) a status update regarding any events that have occurred and any events that are expected to occur within the next thirty (30) days described in Section 3.03(b).  ARI shall also have the right to inquire at any reasonable time about, and ARL shall provide, the status of specific events related to Group Company Credit Facilities and railcars in each case that continue to include the Licensed Trademarks or any other similar term or derivative thereof.
(e)    ARL shall, and shall cause any Group Company to, notify relevant third parties, including Customers and vendors, of the change of name of any relevant Group Company within thirty (30) days of the legal name change of such entity, and shall upon request, provide ARI with written evidence that it has done so.
ARTICLE IV.
TRANSITION OF ARI RAILCARS
4.01    ARI Shared Railcar Lease Agreements.
(a)    ARI Acknowledgments.  As soon as reasonably practicable, but no later than twenty (20) Business Days after the Effective Date, ARL and ARI shall request that each Customer to an ARI-ARL Shared Railcar Lease Agreement or ARI Only Shared Railcar Lease Agreement execute an ARI Acknowledgment.  ARL and ARI shall cooperate in directing each such Customer to make the proper payments to a New ARI Bank Account.  At ARI’s request, the Group Companies shall execute and deliver customary and confirmatory assignments and, if necessary or appropriate, customary and confirmatory bills of sale evidencing ARI’s ownership of the ARI Railcars and ARI’s status as lessor.
(b)    Evidence of Assignment at or prior to Initial Closing.

	
			
	 
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(i)    At the Initial Closing, or prior to the Initial Closing if requested by ARI, with respect to each ARI-ARL Shared Railcar Lease Agreement where the Customer has not executed an ARI Acknowledgment, the Group Company party to the ARI-ARL Shared Railcar Lease Agreement and ARI shall execute and deliver an assignment and assumption agreement and, if necessary or appropriate, a customary and confirmatory bill of sale, each in a form reasonably satisfactory to ARL and ARI, evidencing the transfer of the interest of the applicable Group Company in the corresponding ARI Railcars and such ARI-ARL Shared Railcar Lease Agreement only with respect to the ARI Railcars to ARI.
(ii)    At the Initial Closing, or prior to the Initial Closing if requested by ARI, with respect to each ARI Only Shared Railcar Lease Agreement where the Customer has not executed an ARI Acknowledgment, the Group Company party to the ARI Only Shared Railcar Lease Agreement and ARI shall execute and deliver an assignment and assumption agreement and, if necessary or appropriate, a customary and confirmatory bill of sale, each in a form reasonably satisfactory to ARL and ARI, evidencing the transfer of the interest of the applicable Group Company in the corresponding ARI Railcars and such ARI Only Shared Railcar Lease Agreement to ARI.
(iii)    Within three (3) Business Days following the date of the execution and delivery specified in Sections 4.01(b)(i) and 4.01(b)(ii), ARL shall deliver executed transfer notices in form and substance reasonably satisfactory to ARI to each applicable Customer, notifying such Customer of the assignment of the ARI-ARL Shared Railcar Lease Agreement with respect to the ARI Railcars or the ARI Only Shared Railcar Lease Agreement, as applicable.
(iv)    After the Initial Closing, where the Customer has not executed an ARI Acknowledgment, with respect to any ARI Railcars that are removed from any ARI-ARL Shared Railcar Lease Agreement, the Group Companies will provide commercially reasonable confirmations or undertakings confirming that the ARI-ARL Shared Railcar Lease Agreement no longer applies to such ARI Railcars.
(v)    After the Initial Closing, where the Customer has not executed an ARI Acknowledgment with respect to the ARI Railcars, the Group Companies will provide reasonable confirmations or undertakings in favor of ARI’s existing or future lending groups, in a manner no more burdensome than the manner in which such actions were taken in respect of the Longtrain financings, including by providing access to the ARI-ARL Shared Railcar Lease Agreements and the payments in respect thereof (but in no event will this include acting as manager).
(vi)    After the Initial Closing, where the Customer has not executed an ARI Acknowledgment with respect to the ARI Railcars, the Group Companies will not amend any ARI-ARL Shared Railcar Lease Agreement with respect to the ARI Railcars without the prior written consent of ARI, and will follow all reasonable requests and directions from ARI with respect to remedial or enforcement actions thereunder with respect to the ARI Railcars to the extent necessary or appropriate to preserve or enforce ARI’s rights thereunder.  ARI will indemnify, defend, and hold ARL harmless against any and all Losses arising out of or relating to (1) ARL’s taking any action directed by ARI under this Section 4.01(b)(vi), (2) any breach by ARI under any ARI-ARL Shared Railcar Lease Agreement or (3) the ARI Railcars under any ARI-ARL Shared Railcar Lease Agreement that is assigned pursuant to Section 4.01(b)(i) above.  ARL will indemnify, defend, and hold ARI harmless against any and all Losses arising out of or relating to ARL’s failing to take any action directed by ARI in accordance with this Section 4.01(b)(vi) or arising out of or relating to a breach by ARL under any ARI-ARL Shared Railcar Lease Agreement with respect to ARI Railcars.

	
			
	 
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(c)    Further Efforts.  For a period of one (1) year after the Initial Closing, with respect to each ARI-ARL Shared Railcar Lease Agreement where the Customer has not executed an ARI Acknowledgment, ARL shall use its commercially reasonable efforts to work together with ARI to obtain an executed ARI Acknowledgment from such Customer and ARI agrees to cooperate with ARL for this purpose (which, for the avoidance of doubt, shall not be more burdensome than ARL’s requesting such Customer to execute such ARI Acknowledgment during ordinary course communications with such Customer).
4.02    Termination of ARI-ARL RMA.  As of, and simultaneously with, the Initial Closing, ARL and ARI hereby agree, without any further action by any Party, that the ARI-ARL RMA shall be terminated and all Obligations under the ARI-ARL RMA shall be discharged and released, and such Obligations shall thereafter have no further force or effect. Notwithstanding the foregoing, any Specified Obligations under the ARI-ARL RMA shall be discharged and released hereby, only as to ARL, and ARL shall be irrevocably discharged and released from any further Specified Obligations and such Specified Obligations instead shall be undertaken by AEPC in accordance with Section 6.01(a) hereof.
ARTICLE V. 
TRANSITION OF LONGTRAIN RAILCARS
5.01    Consents.
(a)    Efforts.  ARI shall, and shall cause the ARI Entities to, use commercially reasonable efforts to (i) obtain the Longtrain-ARL RMA Consent, (ii) obtain any consents required to remove Longtrain from the LAA and (iii) obtain any consents required to remove Longtrain from the CAA (together, the “Longtrain Consents”); provided, that, such efforts shall not require any ARI Entity to pay any consent fee or any similar fee.  ARL shall use commercially reasonable efforts to assist the ARI Entities with obtaining the Longtrain Consents.  For six (6) months following the Effective Date, ARI shall provide ARL and Buyer with prompt updates with respect to material developments in its efforts to obtain the Longtrain Consents and thereafter shall provide ARL and Buyer with bi-monthly reports detailing ARI’s progress and negotiations with respect to obtaining the Longtrain Consents.  The actual date on which the last Longtrain Consent and the transition from ARL to ARI as manager becomes effective is referred to herein as the “Longtrain Termination Date”, which shall not be a date earlier than the Initial Closing Date; provided, that, the date on which the transition from ARL to ARI as a manager becomes effective shall not be after the later of (i) twenty (20) Business Days following the date on which the Longtrain Consents become effective; (ii) the Initial Closing Date; or (iii) the date of the written confirmation under Section 2.15(a) hereof.
(b)    Designated Successor Manager.  ARL hereby agrees (i) to serve as the Successor Manager (as defined in the Longtrain-ARL RMA) under the Longtrain-ARL RMA, only with respect to the Longtrain Indenture, in the case of a Manager Termination Event (as defined in the Longtrain-ARL RMA) by ARI, or (ii) if the Longtrain-ARL RMA is terminated and in connection therewith ARI and Longtrain enter into a new railcar management agreement on substantially identical terms as the Longtrain-ARL RMA, to serve as a successor manager under such new railcar management, only with respect to the Longtrain Indenture, in the case of a Manager Termination Event (as defined substantially the same as it is defined in the Longtrain-ARL RMA) by ARI.
5.02    Longtrain Shared Railcar Lease Agreements
(a)    Longtrain Acknowledgments.  As soon as reasonably practicable, but no later than twenty (20) Business Days after the Effective Date, ARL and ARI shall request that each Customer to a 

	
			
	 
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Longtrain-ARL Shared Railcar Lease Agreement, Longtrain Only Shared Railcar Lease Agreement or ARI-ARL-Longtrain Shared Railcar Lease Agreement execute a Longtrain Acknowledgment.  Promptly following the Longtrain Termination Date, ARL and ARI shall cooperate in directing each such Customer to make the proper payments to a New ARI Bank Account.
(b)        Evidence of Assignment at or prior to Initial Closing.
(i)    At the Initial Closing, or prior to the Initial Closing if requested by ARI, with respect to each ARI-ARL-Longtrain Shared Railcar Lease Agreement and Longtrain-ARL Shared Railcar Lease Agreement where the Customer has not executed a Longtrain Acknowledgment, the Group Company party to the ARI-ARL-Longtrain Shared Railcar Lease Agreement or Longtrain-ARL Shared Railcar Lease Agreement, as applicable, ARI and Longtrain (or ARI as agent for Longtrain), as applicable, shall execute and deliver an assignment and assumption agreement, and, if necessary or appropriate, a customary and confirmatory bill of sale, each in a form reasonably satisfactory to ARL and ARI evidencing the transfer of the interest of the applicable Group Company in the corresponding ARI Railcars and Longtrain Railcars and such ARI-ARL-Longtrain Shared Railcar Lease Agreement or Longtrain-ARL Shared Railcar Lease Agreement, as applicable, only with respect to the ARI Railcars and Longtrain Railcars, to ARI or Longtrain (or to ARI as agent), as applicable.
(ii)    At the Initial Closing, or prior to the Initial Closing if requested by ARI, with respect to each Longtrain Only Shared Railcar Lease Agreement where the Customer has not executed a Longtrain Acknowledgment, the Group Company party to the Longtrain Only Shared Railcar Lease Agreement, ARI and Longtrain (or ARI as agent for Longtrain), as applicable, shall execute and deliver an assignment and assumption agreement, and, if necessary or appropriate, a customary and confirmatory bill of sale, each in a form reasonably satisfactory to ARL and ARI evidencing the transfer of the interest of the applicable Group Company in the corresponding ARI Railcars and Longtrain Railcars and such Longtrain Only Shared Railcar Lease Agreement to ARI or Longtrain (or to ARI as agent), as applicable.
(iii)    Within three (3) Business Days following the date of the execution and delivery specified in Sections 5.02(b)(i) and 5.02(b)(ii), ARL shall deliver executed transfer notices in form and substance reasonably satisfactory to ARI to each applicable Customer, notifying such Customer of the assignment of (1) the ARI-ARL-Longtrain Shared Railcar Lease Agreement or Longtrain-ARL Shared Railcar Lease Agreement with respect to the ARI Railcars or Longtrain Railcars or (2) Longtrain Only Shared Railcar Lease Agreement.
(iv)    After the Initial Closing, where the Customer has not executed a Longtrain Acknowledgment, with respect to any ARI Railcars or Longtrain Railcars that are removed from any ARI-ARL-Longtrain Shared Railcar Lease Agreement or Longtrain-ARL Shared Railcar Lease Agreement, the Group Companies will provide commercially reasonable confirmations or undertakings confirming that the ARI-ARL-Longtrain Shared Railcar Lease Agreement or Longtrain-ARL Shared Railcar Lease Agreement no longer applies to such ARI Railcars or Longtrain Railcars.
(v)    After the Initial Closing, where the Customer has not executed a Longtrain Acknowledgment with respect to the ARI Railcars or Longtrain Railcars, the Group Companies will provide reasonable confirmations or undertakings in favor of ARI’s or Longtrain’s existing or future lending groups, in a manner no more burdensome than the manner in which such actions were taken in respect of the Longtrain financings including by providing access to the ARI-ARL-Longtrain Shared Railcar Lease Agreements or Longtrain-ARL Shared Railcar Lease Agreements and the payments in respect thereof (but in no event will 

	
			
	 
	18
	 

this include acting as manager, unless it is, at such time, acting as manager or successor manager under the applicable railcar management agreement).
(vi)    After the Initial Closing, where the Customer has not executed a Longtrain Acknowledgment with respect to the ARI Railcars or Longtrain Railcars, the Group Companies will not amend any ARI-ARL-Longtrain Shared Railcar Lease Agreement or Longtrain-ARL Shared Railcar Lease Agreement with respect to the ARI Railcars or Longtrain Railcars without the prior written consent of ARI or Longtrain, as applicable.  ARI will indemnify, defend, and hold ARL harmless against any and all Losses arising out of or relating to (1) any breach by ARI under any ARI-ARL-Longtrain Shared Railcar Lease Agreement or Longtrain-ARL Shared Railcar Lease Agreement or (2) the ARI Railcars or the Longtrain Railcars under any ARI-ARL-Longtrain Shared Railcar Lease Agreement or Longtrain-ARL Shared Railcar Lease Agreement that is assigned pursuant to Section 5.02(b)(i) above and for which ARL is no longer acting as manager.  ARL will indemnify, defend, and hold ARI and Longtrain harmless against any and all Losses arising out of or relating to a breach by ARL under any ARI-ARL-Longtrain Shared Railcar Lease Agreement or Longtrain-ARL Shared Railcar Lease Agreement with respect to ARI Railcars and Longtrain Railcars and for which ARL is no longer acting as manager.
(c)    Further Efforts.  For a period of one (1) year after the Initial Closing, with respect to each Longtrain-ARL Shared Railcar Lease Agreement or ARI-ARL-Longtrain Shared Railcar Lease Agreement, where the Customer has not executed a Longtrain Acknowledgment, ARL shall use its commercially reasonable efforts to work together with ARI to obtain an executed Longtrain Acknowledgment from such Customer and ARI agrees to cooperate with ARL for this purpose (which, for the avoidance of doubt, shall not be more burdensome than requesting such Customer to execute such Longtrain Acknowledgment during ordinary course communications with such Customer).
(d)    Subcontracting.  After the Initial Closing but prior to the Longtrain Termination Date, ARL and ARI hereby agree to a sub-contractual arrangement (the “Subcontractor Agreement”) that shall take effect upon ARI’s written request, pursuant to which (i) ARI hereby agrees to assume and perform all of ARL’s obligations and duties under the Longtrain-ARL RMA (other than the Group Companies’ obligations with respect to the Lockbox Account (as defined in the LAA)), (ii) ARI will perform ARL’s obligations consistently with the Services Standard (as defined in the Longtrain-ARL RMA) and will provide ARL on the fifth (5th) Business Day of each calendar month with a certificate of an authorized officer of ARI (1) certifying that ARI has performed its obligations and duties under the Subcontractor Agreement and (2) detailing any material written complaint made by any Customer in the prior calendar month regarding ARI’s performance under the Subcontractor Agreement (without describing the identity of the Customer) and any material claim or complaint in writing by any noteholder under the Longtrain Indenture regarding the Subcontractor Agreement (without describing the identity of the noteholder), (iii) that notwithstanding the provisions of the Longtrain-ARL RMA that provide for certain fees to be paid to ARL, from and after the Initial Closing Date until the Subcontractor Agreement is terminated, ARL shall not be entitled to any fee, commission, or other payment under the Longtrain-ARL RMA attributable to the period from and after the Initial Closing Date until the Subcontractor Agreement is terminated and shall as promptly as practicable deliver to ARI any such fees that it receives attributable to such period, and (iv) that the Subcontractor Agreement will continue until the earlier of (1) the date that is thirty (30) months after the Initial Closing Date, (2) the Longtrain Termination Date, (3) the date upon which ARI’s performance or non-performance has caused a Manager Termination Event and (4) the date on which noteholders constituting the Requisite Majority (as defined in the Longtrain Indenture) have complained to ARL or ARI in writing about the Subcontractor Agreement.  ARL and ARI hereby agree to work together, in good faith, during the Pre-Closing Transition Period, to enter into a Contract to more fully document, in a form reasonably satisfactory to ARL and ARI, the Subcontractor Agreement.

	
			
	 
	19
	 

5.03    Termination of Longtrain Agreements.  ARL and ARI hereby agree that as of the effectiveness of the Longtrain Termination Date:
(a)    without any further action by any Party, that the Longtrain-ARL RMA shall be terminated and all Obligations under the Longtrain-ARL RMA shall be discharged and released, and such Obligations shall thereafter have no further force or effect.  Notwithstanding the foregoing, any Specified Obligations under the Longtrain-ARL RMA shall be discharged and released hereby, only as to ARL, and ARL shall be irrevocably discharged and released from any further Specified Obligations, and such Specified Obligations instead shall be undertaken by AEPC in accordance with Section 6.01(a) hereof; and
(b)    with respect to all ARI Railcars and Longtrain Railcars as to which an ARI Acknowledgement or Longtrain Acknowledgement is in effect, ARI and ARL shall, from time to time, take all steps required or appropriate to evidence that Longtrain and ARI shall be removed, discharged and released or be deemed to be discharged and released from its respective Obligations pursuant to the LAA and CAA (with respect to the applicable ARI Railcars and Longtrain Railcars), and, the ARI Railcars and the Longtrain Railcars, the Longtrain Only Shared Railcar Lease Agreements and the ARI Only Shared Railcar Lease Agreements shall be removed from the LAA and CAA (with respect to the applicable ARI Railcars and Longtrain Railcars).
ARTICLE VI.
UNDERTAKINGS
6.01    AEPC Undertakings.
(a)    AEPC hereby undertakes the payment and performance of any Specified Obligations that are discharged and released only with respect to the Group Companies pursuant to this Agreement.
(b)    From and after the Initial Closing, AEPC will indemnify, defend, and hold the Group Companies harmless against any and all Losses suffered or incurred by the Group Companies arising out of or relating to the Subcontractor Agreement, any ARI Entity’s obligations thereunder and any ARI Entity’s acts or omissions with respect thereto, including without limitation, any act or omission or other occurrence constituting (1) a breach or violation of any of the duties of the Manager under the Longtrain-ARL RMA or (2) a Manager Termination Event for purpose of the Longtrain-ARL RMA, and any such Losses suffered or incurred by ARL under Section 12 of the Longtrain-ARL RMA, except to the extent that such Losses are the result of the fraud, gross negligence or willful misconduct of ARL or any of the Group Companies after the Initial Closing.
6.02    Costs and Expenses.  During the period beginning on December 1, 2015 and ending on the date that is twelve (12) months after the Initial Closing Date, AEPC shall pay (or reimburse, as applicable) ARI the reasonable, documented and out-of-pocket (i) legal and other professional fees and expenses incurred by the ARI Entities in connection with the evaluation of the transactions contemplated by this Agreement and the Purchase Agreement and potential alternative transactions, and the due diligence and other activities relating to the transactions contemplated by this Agreement and the Purchase Agreement and potential alternative transactions, (ii) incremental costs of the ARI Entities to hire employees and/or independent contractors to engage in or perform activities previously engaged in or performed by the Group Companies under the ARI-ARL RMA, the Longtrain-ARL RMA, the CAA and the LAA (it being understood that the incremental costs of hiring independent contractors shall mean the costs, if any, over and above the comparable costs of hiring an employee to perform such work), including transition-related payments such as signing 

	
			
	 
	20
	 

bonuses, relocation expenses, finders’ fees, recruiters’ fees and other reasonable costs and expenses to hire or engage such individuals (but excluding ordinary course compensation payable to any such employees and/or independent contractors such as base salary, ordinary course bonuses, if any, and independent contractor fees that are not incremental costs as described above), (iii) taxes, other than franchise and income taxes, that directly relate to separating the management of the railcars owned by the ARI Entities from the Group Companies’ railcars, (iv) amounts payable by ARI to ARL in accordance with Section 2.15(c) and Section 2.15(d) hereof, and (v) other costs and expenses to be mutually agreed by AEPC and ARI, in their reasonable discretion, that relate to separating the management of the railcars owned by the ARI Entities from the Group Companies’ railcars.
6.03    Guarantee of SMRSH LLC and SMBC Rail Services LLC.
(a)    From and after the Initial Closing, subject to the conditions and limitations set forth below, each of SMRSH LLC and SMBC Rail Services LLC (collectively, the “SMBC Guarantors”), jointly and severally, hereby absolutely, irrevocably and unconditionally guarantees, as principal and not as surety, to the ARI Entities, (1) the due and punctual payment of all payment obligations of the Group Companies under this Agreement, and (2) the full, complete and timely performance of all covenants, agreements, duties and obligations applicable to the Group Companies pursuant to this Agreement, in each case arising at or after the Initial Closing (collectively, the “SMBC Guaranteed Obligations”).
(b)    Each of the SMBC Guarantors, jointly and severally, guarantees that the SMBC Guaranteed Obligations will be duly and punctually paid or performed in accordance with the terms of this Agreement.  If for any reason the Group Companies shall fail or be unable duly and punctually to pay or perform any of the SMBC Guaranteed Obligations as and when the same shall become due or otherwise required, then the SMBC Guarantors, jointly and severally, shall, subject to the terms and conditions of this Agreement, forthwith duly and punctually pay or perform such SMBC Guaranteed Obligation.  From and after the Initial Closing, each of the SMBC Guarantors further agrees that this Agreement, to the extent it requires the payment of money, constitutes a guaranty of payment when due and not of collection and is in no way conditioned or contingent upon any attempt to collect from any Group Company.  From and after the Initial Closing, each of the SMBC Guarantor’s liability under this Agreement shall be absolute, unconditional, irrevocable and continuing irrespective, without limitation, of:
(i)    any lack of validity or enforceability of this Agreement as a result of the application of any bankruptcy, insolvency, moratorium or other similar laws relating to creditors’ rights and general principles of equity to each of the SMBC Guarantors;
(ii)    any modification, amendment, consent, extension, forbearance or waiver of or any consent to departure from this Agreement that may be agreed to by each of the SMBC Guarantors;
(iii)    any action or inaction by any ARI Entity under or in respect of this Agreement, or any failure, lack of diligence, omission or delay on the part of any ARI Entity to enforce, assert or exercise any right, power or remedy conferred on any ARI Entity in this Agreement;
(iv)    any merger or consolidation of either of the SMBC Guarantors or any of their respective Affiliates into or with any Person, or any sale, lease or transfer of any of the assets of the parties hereto or any other Person to any other Person;
(v)    any change in the ownership of any of the parties hereto or any Person; or

	
			
	 
	21
	 

(vi)    any other occurrence, circumstance, happening or event, whether similar or dissimilar to the foregoing and whether foreseen or unforeseen, which otherwise might constitute a legal or equitable defense or discharge of the liabilities of a guarantor or surety or which otherwise might limit recourse against either of the SMBC Guarantors or any other Person.
(c)    Each of the SMBC Guarantors hereby unconditionally waives (i) any and all notices, including promptness, diligence, notice of acceptance of this Agreement and any other notice with respect to any of the SMBC Guaranteed Obligations and this Agreement, (ii) any presentment, demand, performance, protest, notice of non-payment as the same pertains to any Group Company, suit or the taking of other action by any ARI Entity against, and any other notice to, each of the SMBC Guarantors with respect to any of the SMBC Guaranteed Obligations, (iii) any right to require any ARI Entity to proceed against any Group Company or to exhaust any security held by any ARI Entity or to pursue any other remedy with respect to any of the SMBC Guaranteed Obligations, (iv) any defense based upon an election of remedies by any ARI Entity, unless the same would excuse performance by any Group Company under this Agreement with respect to any of the SMBC Guaranteed Obligations and (v) any duty of any ARI Entity to advise each of the SMBC Guarantors of any information known to any ARI Entity regarding any Group Company or its ability to perform under this Agreement with respect to any of the SMBC Guaranteed Obligations.  From and after the Initial Closing, any ARI Entity may at any time and from time to time without notice to or consent of any SMBC Guarantor and without impairing or releasing the obligations of the SMBC Guarantors hereunder, with respect to any of the SMBC Guaranteed Obligations, (A) agree with any Group Company to make any change in the terms of the SMBC Guaranteed Obligations, (B) take or fail to take any action of any kind in respect of any security for the SMBC Guaranteed Obligations, (C) exercise or refrain from exercising any rights against any Group Company or others, or (D) compromise or subordinate the SMBC Guaranteed Obligations, including any security therefor.  Any other suretyship defenses are hereby waived by each of the SMBC Guarantors with respect to any of the SMBC Guaranteed Obligations.
(d)    The provisions of this Section 6.03 shall continue to be effective or be reinstated, as the case may be, if (i) at any time and to the extent that any payment of any of the SMBC Guaranteed Obligations is rescinded or must otherwise be returned by the payee thereof to any Group Company or the SMBC Guarantors upon the insolvency, bankruptcy, reorganization or similar event of any Group Company or the SMBC Guarantors, all as though such payment had not been made or (ii) the obligations of each of the SMBC Guarantors under this Section 6.03, with respect to any of the SMBC Guaranteed Obligations, are released in consideration of a payment of money or transfer of property by any Group Company or any other Person and to the extent that such payment, transfer or grant is rescinded or must otherwise be returned by the recipient thereof to any Group Company or the SMBC Guarantors upon the insolvency, bankruptcy, reorganization or similar event of any Group Company or the SMBC Guarantors, all as though such payment, transfer or grant had not been made.
ARTICLE VII.
CONFIDENTIALITY
7.01    Obligation.
(a)    In addition to any obligations of confidentiality pursuant to other agreements between the Parties, without the prior written consent of the other Party, each Party shall hold in confidence and not disclose to any third party any confidential information received by it from the other Party or its Affiliates or Representatives; provided, that, either Party may share with its Representatives, in each case who have a “need to know” such confidential information. “Confidential information” shall include any passwords or user IDs related to the Management System or other intellectual property (the “Information Technology”) provided by the Group Companies to the ARI Entities.

	
			
	 
	22
	 

(b)    ARI agrees that it is responsible for any action or failure to act that would constitute a breach or violation of this Section 7.01 by ARI’s Covered Affiliates or Representatives that received such information from ARL.  ARL agrees that it is responsible for any action or failure to act that would constitute a breach or violation of this Section 7.01 by ARL’s Affiliates or Representatives that received such information from ARI.
(c)    ARI agrees that to the extent that it or any of its Representatives uses any Information Technology of the Group Companies in connection with this Agreement (whether on-site or remotely), it will adhere to the terms for use of such Information Technology, including any security rules, access agreements, procedures, user IDs and passwords provided by ARL to ARI in connection with such Information Technology.  Within ten (10) business days of the Effective Date, ARL and ARI will develop a protocol to prevent the sharing of competitively sensitive information between the Parties post-Initial Closing.
(d)    For purposes of this Agreement, confidential information shall not include information: (i) which is or becomes part of the public domain other than through breach of this Agreement or through the fault of the receiving Party; (ii) which is or becomes available to the receiving Party on a non-confidential basis, directly or indirectly, from a source (other than a Party to this Agreement, any Affiliate of ARL, any Covered Affiliate of ARI or any Representative of any Party) that is not known by such Party, after reasonable inquiry, to be bound by any confidentiality obligation to the other Party, its Affiliates or its Representatives with respect to such information, or otherwise known by such Party, its Affiliates or its Representatives, in each case, after reasonable inquiry, to be prohibited from transmitting the information to such Party, its Affiliates or its Representatives by a contractual, legal or fiduciary obligation; (iii) which is required to be disclosed by Law or governmental order; (iv) that is reasonably necessary to be disclosed in connection with any Action or in any dispute with respect to this Agreement (including in response to any summons, subpoena or other legal process or formal or informal investigative demand issued to the disclosing party in the course of any litigation, arbitration, mediation, investigation or administrative proceeding); or (v) the disclosure of which is mutually agreed to by the Parties in writing.
7.02    Effectiveness. The foregoing obligation of confidentiality shall be in effect so long as obligations remain outstanding under this Agreement and for a period of four (4) years thereafter.
7.03    Care and Inadvertent Disclosure. With respect to any confidential information, each Party agrees as follows:
(a)    it shall use the same degree of care in safeguarding such information as it uses to safeguard its own information which must be held in confidence; and
(b)    upon the discovery of any inadvertent disclosure or unauthorized use of such information, or upon obtaining notice of such a disclosure or use from the other Party, it shall take all necessary actions to prevent any further inadvertent disclosure or unauthorized use.
7.04    Disclosure Required by Law.  Notwithstanding anything in Section 7.01 to the contrary, in the event that ARL (or its Affiliates or Representatives) or ARI (or its Covered Affiliates or Representatives) is requested or required under applicable Law or the applicable rules or regulations of any securities exchange or similar self-regulatory organization having jurisdiction over such Party, its Affiliates or its Representatives, as applicable (including by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process), to disclose any information required to be treated as confidential pursuant to ARTICLE VII, it is agreed that, to the extent permitted by applicable Law, such Party shall as promptly as reasonably practicable (i) inform the other Party of the terms of any such request 

	
			
	 
	23
	 

or requirement, (ii) consult with the other Party on the advisability of taking legally available measures to resist or narrow any such request or requirement and (iii) cooperate with such other Party, at such other Party’s expense, in pursuing any such reasonable measures that such other Party determines to seek to resist or narrow any such request or requirement.  In the event that disclosure of such information is ultimately required, the disclosing Party shall, to the extent permitted by applicable Law, give the other Party written notice of the information to be disclosed as far in advance of its disclosure as is practicable and then may furnish that portion (and only that portion) of such information which it is required to disclose under such applicable Laws or rules or regulations, and ARL and its Affiliates and Representatives and ARI and its Covered Affiliates and Representatives, as the case may be, shall cooperate with the other Party, at such other Party’s expense, in its reasonable efforts to obtain an order or other reliable assurance that confidential treatment will be accorded any information so furnished.
ARTICLE VIII. 
TERM
8.01    Term. Except as otherwise provided in this ARTICLE VIII or as otherwise agreed in writing by the Parties, this Agreement shall become effective as of the Effective Date and shall terminate immediately upon the termination of the Purchase Agreement if the Purchase Agreement is terminated prior to Initial Closing; provided, that, notwithstanding the termination of this Agreement, the license and rights granted in Section 3.02 shall survive such termination and continue in perpetuity.
ARTICLE IX.
MISCELLANEOUS
9.01    Amendments. This Agreement may be amended, modified or supplemented only by a written agreement executed and delivered by duly authorized officers of both ARL and ARI or their applicable successors in interest.  This Agreement may not be amended, modified or supplemented except as provided in the immediately preceding sentence and any purported amendment modification or supplement by either party effected in a manner which does not comply with this Section 9.01 shall be void.
9.02    Successors and Assignment. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns; provided, that, neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by any Party without the prior written consent of the other Party.  Notwithstanding the foregoing, without the prior written consent of ARL, each of ARI and its permitted assigns may at any time, in their sole discretion, assign, in whole or in part, its rights and obligations pursuant to this Agreement (a) to one or more of their Affiliates (provided such assignment in no way increases, alters or changes any of the obligations hereunder, and provided, further, that no such assignment shall relieve ARI of its obligations hereunder); and (b) to any subsequent purchaser of all or substantially all of the assets of the ARI Entities or all or substantially all of the assets of the ARI Entities’ leasing business (whether any such sale is structured as a sale of stock, sale of assets, merger, consolidation, share exchange, business combination, reorganization, recapitalization, liquidation, dissolution or otherwise).
9.03    Integration. This Agreement contains the entire agreement between the Parties regarding the obligations hereof and supersedes any prior understandings, agreements or representations by or between the Parties, written or oral, which may have related to the subject matter hereof in any way.
9.04    Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in 

	
			
	 
	24
	 

person, by e-mail (followed by overnight courier), or by registered or certified mail (postage prepaid, return receipt requested) to the other Party as follows:
If to ARL, to:
	
	
	American Railcar Leasing, LLC

	100 Clark Street, Suite 201

	St. Charles, MO 63301

	Attention: John O’Bryan

	E-mail:  JObryan@arleasing.com

Only pre-Initial Closing, with a copy (which shall not constitute notice to ARL) to: 
	
	
	Thompson Hine LLP

	335 Madison Avenue, 12th Floor

	New York, NY 10017

	Attention:  Stuart Welburn

	E-mail:  Stuart.Welburn@ThompsonHine.com

	Attention: Todd Mason

	E-mail: Todd.Mason@ThompsonHine.com

Only post-Initial Closing, with a copy (which shall not constitute notice to ARL) to:
	
	
	Skadden, Arps, Slate, Meagher & Flom LLP

	Four Times Square

	New York, NY 10036

	Attention: David Ingles

	E-mail: David.Ingles@Skadden.com

If to ARI, to:
	
	
	American Railcar Industries, Inc.

	100 Clark Street

	St. Charles, MO 63301

	Attention: Yevgeny Fundler

	E-mail: yfundler@americanrailcar.com

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

	
			
	 
	25
	 

	
	
	Brown Rudnick LLP

	One Financial Center

	Boston, MA 02111

	Attention: James Bedar

	E-mail: jbedar@brownrudnick.com

9.05    Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the Law of any jurisdiction other than the State of New York.
9.06    Waiver.  The failure or delay of any Party to exercise or assert any of its rights, powers or privileges hereunder shall not constitute a waiver of such rights nor shall any single or partial exercise preclude any other or further exercise thereof or the exercise of any other right, power or privilege.
9.07    WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHTS TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR FROM SUCH PARTIES PERFORMANCE UNDER THIS AGREEMENT OR FROM THE FORMATION, BREACH, TERMINATION, VALIDITY, INTERPRETATION OR ENFORCEMENT OF THIS AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES IN RESPECT OF THIS AGREEMENT, OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE.  EACH PARTY HEREBY FURTHER AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES MAY FILE A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
9.08    Jurisdiction and Venue.
(a)    Each of the Parties irrevocably and unconditionally:
(i)    submits itself and its property to the exclusive jurisdiction of any state or federal court sitting in the State of New York in the County of New York, in any Action or proceeding arising out of or in connection with or relating to this Agreement, the transactions contemplated hereby, the formation, breach, termination or validity of this Agreement or the recognition and enforcement of any judgment in respect of this Agreement;
(ii)    agrees that all claims in respect of any Action or proceeding may be heard and determined in any such court and agrees not to bring any Action or proceeding arising out of or relating to this Agreement in any other court; and
(iii)    waives any defense (including inconvenient forum) that it may now or hereafter have to the venue or jurisdiction or to the maintenance of any Action or proceeding so brought and 

	
			
	 
	26
	 

agrees not to plead the same, and waives any bond, surety or other security that might be required of any other Party with respect thereto.
(b)    Each Party agrees that service of summons and complaint or any other process that might be served in any Action or proceeding may be made on such Party by sending or delivering a copy of the process to the Party to be served at the address of the Party and in the manner provided for the giving of notices in Section 9.04.  Nothing in this Section 9.08, however, shall affect the right of either Party to serve legal process in any other manner permitted by the Laws of the State of New York.  Each Party agrees that a final, non-appealable judgment in any Action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by Law.
9.09    Severability. Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable Law. If any portion of this Agreement is declared invalid for any reason in any jurisdiction, such declaration shall have no effect upon the remaining portions of this Agreement, which shall continue in full force and effect as if this Agreement had been executed with the invalid portions thereof deleted. 
9.10    Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same instrument.
9.11    Rights of the Parties. Nothing expressed or implied in this Agreement is intended or will be construed to confer upon or give any Person, other than the Parties, including their respective Subsidiaries, any rights or remedies under or by reason of this Agreement or any of the transactions contemplated hereby; provided, that, Licensees are intended third party beneficiaries under Section 3.02.
9.12    Reservation of Rights. Either Party’s waiver of any of its remedies afforded hereunder or at Law is without prejudice and shall not operate to waive any other remedies which that Party shall have available to it, nor shall such waiver operate to waive any Party’s rights to any remedies due to a future breach, whether of a similar or different nature.
9.13    Relationship of the Parties. It is expressly understood and agreed that in undertaking the obligations hereunder, each Party is acting as an independent contractor and that this Agreement does not constitute either Party as an employee, agent or other representative of the other Party for any purpose whatsoever. Nothing in this Agreement provides either Party with the right or authority to enter into any contract, warranty, guarantee or other undertaking in the name or for the account of the other Party, or to assume or create any obligation or liability of any kind, express or implied, on behalf of the other Party, or to bind the other Party in any manner whatsoever, or to hold itself out as having any right, power or authority to create any such obligation or liability on behalf of the other or to bind the other Party in any manner whatsoever (except as to any actions taken by either Party at the express written request and direction of the other Party). It is the understanding and intention of the Parties hereto that execution of and performance under this Agreement shall create no “joint employer” relationship between them.
9.14    Conflict. In case of conflict between the terms and conditions of this Agreement and any Schedule, the terms and conditions of such Schedule shall control and govern as it relates to the Service to which those terms and conditions apply.
9.15    Disputes.  Prior to initiating any legal proceeding, the Parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by negotiation between the Parties, which shall initially be between the Primary Coordinators and as necessary shall be escalated to each Party’s 

	
			
	 
	27
	 

executive management in order to facilitate prompt resolution of the dispute.  If the dispute has not been resolved by negotiation within thirty (30) days after either Party gives written notice of such dispute to the other Party, then either Party shall have the right to initiate an Action.
9.16    Specific Performance.  The Parties hereto agree that irreparable damage would occur in the event any provision of this Agreement was not performed in accordance with the terms hereof and that the Parties shall be entitled to seek specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the terms hereof, in addition to any other remedy at Law or in equity.  Each Party hereto expressly waives any requirement that any other Party hereto obtain any bond or provide any indemnity in connection with any action seeking injunctive relief or specific enforcement of the provisions of this Agreement.
* * *

	
			
	 
	28
	 

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

	
				
	 
	AMERICAN RAILCAR LEASING, LLC

	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	 
	 

	 
	

	 
	AMERICAN RAILCAR INDUSTRIES, INC.

	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	 
	 

	 
	

	 
	AMERICAN ENTERTAINMENT PROPERTIES CORP., solely for purposes of ARTICLE VI and ARTICLE IX

	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	 
	

	 
	 

	 
	SMRSH LLC, solely for purposes of ARTICLE VI and ARTICLE IX

	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	 
	

	 
	 

	 
	SMBC RAIL SERVICES LLC, solely for purposes of ARTICLE VI and ARTICLE IX

	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

	 
	 

Signature Page to Railcar Management Transition AgreementExhibit 101 - Amended Employment Agreement - Rouve

		
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			AMENDED AND RESTATED
		

		
			EMPLOYMENT AGREEMENT
		

		
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			This EMPLOYMENT AGREEMENT ("Agreement") was originally entered into as of March 16, 2015 ("Effective Date") and is hereby amended and restated as of December 15, 2016 by and between Spectrum Brands, Inc., a Delaware corporation, (the "Company"), Spectrum Brands Holdings, Inc., a Delaware corporation ("Parent"), and Andreas Rouvé ("Executive").
		

		
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			WHEREAS, the Company desires to employ Executive upon the terms and conditions set forth herein; and
		

		
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			WHEREAS, Executive is willing and able to accept such employment on the terms and conditions set forth herein; and
		

		
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			WHEREAS, Executive's employment with the Company is expressly conditioned upon the agreement by Executive to the terms and conditions of such employment as contained in this Agreement.
		

		
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			NOW THEREFORE, in consideration of the promises and mutual agreements contained herein, which include the provision of certain benefits and compensation to which Executive would not otherwise be entitled or receive, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive hereby agree as follows:
		

		
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				 1.
			Employment Duties and Acceptance.  The Parent hereby employs Executive as, and Executive agrees to serve and accept employment with the Parent as, Chief Executive Officer and President, reporting directly to the Board of Directors of the Parent.  During the Term (as defined in Section 2 hereof), Executive shall devote substantially all of his working time and best efforts to such employment and perform such duties as Chief Executive Officer, including those duties reasonably assigned by the Board of Directors consistent with Executive's position as Chief Executive and President of Parent.  As Chief Executive and President, Executive shall be responsible for the day to day management of the Company and shall have authority consistent with his title.  Executive shall be based at the Company's world headquarters located at 3001 Deming Way, Middleton, Wisconsin 53562.  In addition, during the Term, Executive agrees to serve without additional compensation as the Chief Executive Officer and President of the Company and any other subsidiaries or affiliates of the Parent, as reasonably requested by the Parent.

			
	
			
				 2.
			Term of Employment.  Subject to the termination of employment as set forth in Section 4 hereof, Executive's employment and appointment hereunder shall be for a term commencing on April 1, 2015 (the "Effective Date") and expiring thirty-six (36) months thereafter, or on April 1, 2018 (the "Initial Term").  Upon expiration of the Initial Term and subject to the termination of employment as set forth in Section 4 hereof, this Agreement shall automatically extend for successive renewal periods of one (1) year (the "Renewal Term(s)"), unless either party provides written notice at least ninety (90) days prior to the Renewal Term of 
		

		 

		

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			its election not to renew the Initial Term or any Renewal Term.  The Initial Term and any Renewal Term shall be collectively referred to as the "Term".

			
	
			
				 3.
			Compensation and Benefits.  During the Term of this Agreement and provided Executive's employment has not terminated pursuant to Section 4 hereof, in consideration for the performance by Executive of his duties hereunder, the Company shall pay or provide to Executive certain compensation and benefits as set forth in this Section 3 and such other compensation as the Board of Directors of the Parent (the "Board") or the Compensation Committee thereof (the "Compensation Committee") may determine (collectively, "Compensation and Benefits").  Executive agrees to accept the Compensation and Benefits as set forth in this Section 3 in full satisfaction for his performance hereunder and agrees that necessary withholdings for taxes, FICA contributions and the like shall be deducted from such Compensation.

		
			Base Salary.  Executive shall receive a base salary of Seven Hundred Thirty-five Thousand Dollars ($735,000) per annum for the duration of the Term (the "Base Salary"), which Base Salary shall be paid in equal semi-monthly installments in arrears.  The Compensation Committee shall review annually the Base Salary payable to Executive hereunder and may, in its sole discretion, increase (but not decrease) Executive's Base Salary.  Any such increased Base Salary shall be and become the "Base Salary" for purposes of this Agreement.
		

		
			Management Incentive Plan Bonus.  Executive shall be eligible to receive a Management Incentive Plan (or comparable successor plan) bonus for each fiscal year ending during the Term (commencing with Fiscal Year 2015), payable annually in arrears, which shall be based on a target amount of one hundred twenty-five percent (125%) of Base Salary (the "Target Amount") paid during the applicable Fiscal Year, provided the Company achieves certain annual performance goals (the "Performance Targets") as established by the Board and/or Compensation Committee from time to time, and beginning with Fiscal Year 2016, following consultation with Executive and such performance targets shall be communicated within seventy-five (75) days following the commencement of the applicable fiscal year (the "Bonus").  For Fiscal Year 2015, for the purposes of the Bonus calculation, the Base Salary and Bonus will be calculated for the period beginning on April 1, 2015 through September 30, 2015 and for the period prior to April 1, 2015, the Base Salary and the Bonus will be calculated in accordance with Executive's Registered Director's Agreement with Rayovac Europe GmbH, dated August 27, 2007 as amended October 1, 2007.  If Executive exceeds the Performance Target, the Bonus shall be increased in accordance with the formula approved by the Compensation Committee no later than the close of the first quarter of the applicable fiscal year; provided, however, in no event shall the Bonus exceed 250% of the Target Amount.  Any such increased annual Bonus shall be and become the "Bonus" for purposes of this Agreement.  The Bonus shall be payable in cash and/or stock (which shall be vested fully as of the date of transfer) the percentages of which shall be identical to those paid to the Company's senior executives as established by the Compensation Committee/Company, but not later than the seventy-fourth (74th) calendar day following the end of the fiscal year to which the Bonus relates.  Except as specifically set forth in Section 5(b), as a condition precedent to the payment of the Bonus, Executive must remain employed with the Company on the date the Bonus is paid.
		

		

		

		 

		

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		Insurance Coverages and Benefits.  Executive shall be eligible to participate in such insurance plans (including, but not limited to, healthcare, dental, life, and disability) and all other benefits, if any, as are made available from time to time by the Company to its executive officers, subject to the terms and conditions of such plans, as may be amended, modified or terminated from time to time.
		

		
			Equity Incentive Plan Award.  Executive shall be eligible to participate in the Company's Equity Incentive Program ("EIP") or comparable successor plan.  With respect to Fiscal 2015, Executive shall be provided a Parent restricted stock unit award valued at Three Million Dollars ($3,000,000) at the time of the award (the "EIP Award").  For the avoidance of doubt, the Three Million Dollars ($3,000,000) EIP grant for Fiscal 2015 is the sum of the original Two Million Dollars ($2,000,000) grant awarded in December 2014 and an additional One Million Dollars ($1,000,000) to be awarded as promptly as practicable following the Effective Date, but in no event more than thirty (30) days following the Effective Date.  Both the grant of the EIP Award and vesting of the earned EIP Award shall be in accord with the terms and conditions of the Stock Agreement and/or applicable plan (which currently is the Spectrum Brand Holdings, Inc.  2011 Omnibus Equity Award Plan (the "Equity Award Plan") and subject to the Compensation Committee's approval.
		

		
			Additional Equity Program Award.  Executive shall be eligible to participate in an additional Equity Program Award for the Fiscal Years 2015-2016,which is termed as the Spectrum $2B Equity Program, wherein Executive shall be eligible to receive a Parent restricted stock unit award valued at Three Million Dollars ($3,000,000) at the time of the award (the "S2B Equity Award").  For the avoidance of doubt, the Three Million Dollars ($3,000,000) S2B grant for Fiscal 2015-2016 is the sum of the original Two Million Dollars ($2,000,000) grant awarded in February 2015 and an additional One Million Dollars ($1,000,000) to be awarded as promptly as practicable following the Effective Date, but in no event more than thirty (30) days following the Effective Date.  Both the grant of the S2B Equity Award and vesting of the earned S2B Equity Award shall be in accord with the terms and conditions of the S2B Equity Award Plan and/or Stock Agreement and subject to the Compensation Committee's approval.
		

		
			Stock Based Awards.  At the sole discretion of the Compensation Committee of the Board during the Term, Executive may be eligible to receive additional grants of stock based, restricted stock units, and/or stock option awards.  Any award of stock, restricted stock units, and/or options shall be subject to the terms and conditions as established by the Compensation Committee of the Board.
		

		
			Relocation Benefits.  The Company shall provide Executive with the relocation benefits pursuant to the terms of the Spectrum Brands Relocation Policy for international transfers of senior executives, which benefits shall also include, but not be limited to: (i) movement of household goods from Executive's residence as of the Effective Date to the Madison, Wisconsin area; (ii) other relocation benefits under the Company's policies for executive-level international relocations; and (iii) provision of a Company-funded executive apartment for Executive's use for a period of six (6) months following Executive's commencement of employment with the Company.  The terms and conditions of these relocation benefits shall be governed by the Repayment Agreement, provided, however, that if Executive is 
		

		 

		

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		terminate without Cause (as defined below) or due to his death or Disability (as defined below), or if the Executive resigns for Good Reason (as defined below), the Executive will not be required to reimburse the Company for the financial assistance distributed to him or on his behalf pursuant to the Relocation Policy or this Agreement.  If there is any conflict between the terms of the Repayment Agreement and this Agreement, whether the Repayment Agreement is executed on or any time after the Effective Date, the terms of this Agreement shall control.  In addition, the Company shall pay all of the reasonable costs necessary to relocate Executive upon the termination of Executive's employment other than a termination for Cause or Executive's resignation without Good Reason.
		

		
			Vacation.  Executive shall be entitled to four (4) weeks of vacation for each full year.
		

		
			Vehicle.  Pursuant to the Company's policy for use of vehicles by executives, Executive shall be provided with the use of a leased vehicle.  Unless the Executive's employment is terminated by the Company for Cause pursuant to Section 4(a) or by the Executive voluntarily pursuant to Section 4(d), Executive shall be permitted to drive the Company vehicle for the duration of the 12 month period following termination and at the end of such 12-month period, Executive will be permitted to purchase the Company vehicle at the Company's book value of the vehicle as of the date of purchase.
		

		
			Tax Preparation and Estate Planning Assistance.  The Executive shall receive a stipend for fees incurred in connection with the advice and preparation of his income tax filings and returns for each calendar year that occurs during the Term and for his estate planning, all in accordance with the Company's policies.
		

		
			Other Expenses.  Executive shall be entitled to reimbursement of all reasonable and documented expenses actually incurred or paid by Executive in the performance of Executive's duties under this Agreement, upon presentation of expense statements, vouchers or other supporting information in accordance with Company policy.  All expense reimbursements and other perquisites of Executive are reviewable periodically by the Compensation Committee of the Board.
		

		
			D&O Insurance.  Executive shall be entitled to indemnification from the Company to the maximum extent provided by law, but not for any action, suit, arbitration or other proceeding (or portion thereof) initiated by Executive, unless authorized or ratified by the Board.  Such indemnification shall be covered by the terms of the Company's policy of insurance for directors and officers in effect from time to time (the "D&O Insurance").  Copies of the Company's charter, by-laws and D&O Insurance will be made available to Executive upon request.
		

		
			Pension Agreement.  The Pension Agreement between VARTA Gerảtebatterie GMBH and the Executive dated May 17, 1989 including the supplement of July 1, 1999, which was assumed by the Company, shall continue and remain in full force and effect.
		

		
			Legal Fees.  The Company shall pay Executive's legal fees incurred in connection with the preparation of this Agreement in an amount equal to $25,000.
		

		 

		

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				 4.
			Termination.

		
			Termination by the Company with Cause.  The Company shall have the right at any time to terminate Executive's employment hereunder upon written notice upon the occurrence of any of the following (any such termination being referred to as termination for "Cause"):
		

		
			the commission by Executive of any deliberate and premeditated act taken by Executive in bad faith against the interests of the Company that causes or is reasonably anticipated to cause material harm to the Company;
		

		
			Executive has been convicted of, or pleads nolo contendere with respect to any felony, or of any lesser crime or offense having as its predicate element fraud, dishonesty or misappropriation of the property of the Company that causes or is reasonably anticipated to cause material harm to the Company;
		

		
			the habitual drug addiction or intoxication of Executive which negatively impacts his job performance or Executive's failure of a company-required drug test;
		

		
			the willful failure or refusal of Executive to perform his duties as set forth herein or the willful failure or refusal to follow the direction of the Board, provided such failure or refusal continues after thirty (30) calendar days of the receipt of notice in writing from the Board of such failure or refusal, which notice refers to this Section 4(a) and indicates the Company's intention to terminate Executive's employment hereunder if such failure or refusal is not remedied within such thirty (30) day period; or
		

		
			Executive materially breaches any of the terms of this Agreement or any other agreement between Executive and the Company which breach is not cured within thirty (30) calendar days subsequent to notice from the Company to Executive of such breach, which notice refers to this Section 4(a) and indicates the Company's intention to terminate Executive's employment hereunder if such breach is not cured within such thirty (30) day period.
		

		
			If such definition of termination for "Cause" set forth above conflicts with such definition in Executive's time-based or performance based restricted stock unit or restricted stock award agreements (individually, the "Stock Agreement" and collectively, the "Stock Agreements"), or any agreements referred to therein, the definition set forth herein shall control.
		

		
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			Termination by Company for Death or Disability.  The Company shall have the right at any time to terminate Executive's employment hereunder upon thirty (30) calendar days prior written notice upon Executive's inability to perform his duties hereunder by reason of any mental, physical or other Disability for a period of at least six (6) consecutive months (for purposes hereof, "Disability" has the same meaning as in the Company's disability policy), if within thirty (30) calendar days after such notice of termination is given, Executive shall not have returned to the full-time performance of his duties.  The Company's obligations hereunder shall, subject to the provisions of Section 5(b), also terminate upon the death of Executive.
		

		

		

		 

		

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		Termination by Company without Cause.  The Company shall have the right at any time to terminate Executive's employment for any other reason without Cause upon ninety (90) calendar days prior written notice or immediately with payment of base salary in lieu of notice thereof to Executive.
		

		
			Termination for Non-renewal.  The termination of Executive's employment at any time following the failure of the Company to renew the Initial Term or any subsequent Renewal Term shall be deemed a termination without Cause as of the expiration of the Term for all purposes of this Agreement, unless the failure to renew is because of the Executive's refusal to renew.  Upon the expiration of the Initial Term or any Renewal Term then in effect under this Section 4(d), Executive's employment shall terminate.
		

		
			Termination in Connection with a Change in Control.  If in the period that begins sixty (60) days prior to the occurrence of a Change in Control (or, if earlier, upon the signing of a definitive agreement to enter into an event that actually results in a Change in Control) and ends upon the first anniversary of such Change in Control, Executive's employment is terminated by the Company without Cause (and not due to death or Disability) or by Executive for Good Reason (such termination, a "Change in Control Termination"), then the Executive shall be entitled to the payments, benefits and acceleration of unvested equity awards as set forth in Section 5(c) below.  For purposes of this Agreement, "Change in Control" shall have the meaning given it in the Omnibus Stock Plan.
		

		
			Voluntary Termination by Executive.  Executive shall be entitled to voluntarily terminate his employment hereunder upon ninety (90) calendar days' prior written notice to the Company.  Any such termination shall be treated as a termination by the Company for "Cause" under Section 5(a).
		

		
			Termination by Executive for Good Reason.  Executive shall be entitled to terminate his employment and appointment hereunder for Good Reason if the Company fails to remedy the condition creating the Good Reason within thirty (30) calendar days subsequent to written notice from Executive to the Company, and any such termination shall be treated as a termination by the Company without Cause.  Written notice of the existence of the condition creating the Good Reason termination must be given by the Executive to the Company within ninety (90) calendar days after the first occurrence of the condition.  For this purpose, "Good Reason" shall mean:
		

		
			any reduction, not consented to by Executive, in Executive's Base Salary or target annual bonus opportunity referred to in Section 3(b), then in effect;
		

		
			the relocation, not consented by Executive, of the Company's office at which Executive is principally employed as of the Effective Date to a location more than fifty (50) miles from such office, or the requirement by the Company that Executive be based at an office other than the Company's office at such location on an extended basis, except for required travel on the Company's business to an extent substantially consistent with Executive's business travel obligations;
		

		

		

		 

		

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		a substantial diminution or other substantive adverse change, not consented to by Executive, in the nature or scope of Executive's responsibilities, authorities, powers, functions or duties;
		

		
			a breach by the Company of any of its material obligations under this Agreement; or
		

		
			the failure of the Company to obtain the agreement for any successor to the Company or the Parent to assume and agree to perform this Agreement.
		

		
			Notice of Termination.  Any termination (except due to the death of Executive) shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 8.  For purposes of this Agreement, a "Notice of Termination" means a written notice given prior to the termination which (i) indicates the specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive's employment under the provision so indicated and (iii) if the termination date is other than the date of receipt of such notice, specifies the termination date of this Agreement (which date shall be not more than fifteen (15) calendar days after the giving of such notice, unless a longer notice is required pursuant to another section of this Agreement).  The failure by any party to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any right of the party or preclude the party from asserting such fact or circumstance in enforcing its rights under this Agreement.
		

		
			Upon termination of Executive's employment with the Company, unless the Company requests otherwise, Executive shall be deemed to have resigned, effective immediately, from all offices, directorships, and other positions he held with the Company and its affiliates and Executive shall execute any documents reasonably required to effectuate the foregoing.
		

			
	
			
				 5.
			Effect of Termination of Employment.

		
			Termination by the Company with Cause or Voluntarily by Executive.  If during the Term, the Executive's employment is terminated by the Company with Cause or if Executive voluntarily terminates his employment hereunder, Executive's Compensation and Benefits specified in Section 3 shall cease at the time of such termination, and Executive shall not be entitled to any compensation specified in Section 3 which was not required to be paid prior to such termination; provided, however, that Executive shall be entitled to continue to participate in the Company's medical benefit plans to the extent required by law.  Upon any such termination of employment, the Company shall promptly pay to Executive accrued salary and vacation pay, reimbursement for expenses incurred through the date of termination in accordance with the Company policy, and accrued benefits through the Company's benefit plans, programs and arrangements (the "Accrued Obligations").
		

		
			Without Cause, for Good Reason, Death or Disability.  If during the Term, the Executive's employment is terminated (i) by the Company without Cause, (ii) by Executive for Good Reason pursuant to Section 4(g), or (iii) by reason of death or by the Company for 
		

		 

		

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		Disability, the Company shall pay Executive the Accrued Obligations and Executive's Compensation and Benefits specified in Section 3 shall cease at the time of such termination, and Executive shall not be entitled to any compensation specified in Section 3 which was not required to be paid prior to such termination.  Without limiting the foregoing and provided (x) Executive executes a separation agreement with a release of claims agreeable to the Company as further set forth in Section 5(b)(v) below (to the extent that Executive is physically and mentally capable to execute such an agreement) and (y) Executive adheres to the restrictions set forth in Sections 6 and 7 below, the Company shall pay Executive the amounts and provide Executive the benefits as follows:
		

		
			The Company shall pay to Executive as severance a cash payment in an amount equal to the sum of (A) one and one-half (1-1/2) times Executive's Base Salary and (B) one (1) times the target annual Bonus of one hundred twenty five percent (125%) of Executive's then current Base Salary, such cash amount to be paid to Executive ratably monthly in arrears over the eighteen (18) month period immediately following such termination.  Additionally, the Company shall pay to Executive pro rata portion of the annual Bonus applicable to the Fiscal Year in which termination occurs based on the amount Executive would have earned for the Fiscal year in which termination occurs if Executive's employment had not ceased.  Such pro-ration shall be based on the number of weeks Executive worked during such fiscal year prior to such termination divided by fifty-two (52).  Payment of this pro-rated Bonus amount will be made in cash at the same time which a Bonus would have been paid to Executive for the fiscal year in which termination occurs if Executive had not terminated employment with the Company.  Payments otherwise receivable by Executive pursuant to this Section 5(b)(i) shall cease immediately upon the discovery by the Company of Executive's breach of the covenants contained in Sections 6 or 7 hereof.  
		

		
			For the eighteen (18)-month period immediately following such termination, the Company shall arrange to provide Executive and his dependents the additional benefits specified in Section 3(c) substantially similar to those provided to Executive and his dependents by the Company immediately prior to the date of termination, at no greater cost to Executive or the Company than the cost to Executive and the Company immediately prior to such date.  Benefits otherwise receivable by Executive pursuant to this Section 5(b)(ii) shall cease immediately upon the discovery by the Company of Executive's breach of the covenants contained in Sections 6 or 7 hereof.  In addition, benefits otherwise receivable by Executive pursuant to this Section 5(b)(ii) shall be reduced to the extent benefits of the same type are received by or made available to Executive during the eighteen (18)-month period following Executive's termination of employment (and any such benefits received by or made available to Executive shall be reported to the Company by Executive); provided, however, that the Company shall reimburse Executive for the excess, if any, of the cost of such benefits to Executive over such cost immediately prior to the date of termination.
		

		
			Executive's accrued vacation (determined in accordance with Company policy) at the time of termination shall be paid as soon as reasonably practicable.
		

		
			If Executive's employment with the Company terminates during the Term and Executive is eligible for benefits under this Section 5(b), Executive shall not be required to seek other employment or to attempt in any way to reduce any amounts payable to 
		

		 

		

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		Executive by the Company pursuant to this Section 5, and there shall be no reduction or offset of such payments following Executive's obtaining any other employment.
		

		
			A condition precedent to the Company's obligations to pay the severance and benefits in Section 5(b)(i) and (ii) shall be the Executive's execution and delivery within fifty-five (55) days following his termination of employment of a timely, effective and irrevocable release of claims in favor of the Company and its Affiliates, in the form provided by the Company within five (5) business days after day the Notice of Termination is delivered to Executive (such condition, the "Release Condition").  If the Executive fails to execute and deliver such release of claims within such fifty-five (55) day period, or if he revokes such release as provided therein, then he shall not receive the payments and benefits provided in Section 5(b)(i) and 5(b)(ii) or any other payment to which he is not otherwise entitled, except as provided in this Agreement.  Payments and benefits of amounts which do not constitute nonqualified deferred compensation and are not subject to Section 409A (as defined below) shall commence five (5) days after the Release Condition is satisfied and payments and benefits which are subject to Section 409A shall commence on the sixtieth (60th) day after termination of employment (subject to further delay, if required pursuant to Section 9(b) below) provided that the Release Condition is satisfied.
		

		
			Change in Control Termination.  Upon a Change in Control Termination, Executive shall be entitled to the payments and benefits as set forth in Section 5(b) above, and in addition all outstanding unvested time-based equity awards and all outstanding unvested performance-based equity awards (at target)  shall immediately vest in full, as provided in the applicable equity award agreement; provided, that as a condition precedent for Executive to be entitled to these payments, benefits and equity awards, he shall comply with the provisions of Section 5(b)(v) above.
		

			
	
			
				 6.
			Agreement Not to Compete.

		
			Executive agrees that during the Non-Competition Period (as defined below), he will not, directly or indirectly, in any capacity, either separately, jointly or in association with others, as an officer, director, consultant, agent, employee, owner, principal, partner or stockholder of any business, or in any other capacity, provide services of the same or similar kind or nature that he provides to the Company to, or have a financial interest in (excepting only the ownership of not more than two percent (2%) of the outstanding securities of any class listed on an exchange or the Nasdaq Stock Market), any competitor of the Company (which means any person or organization that is in the business of or makes money from designing, developing, or selling products or services similar to those products and services developed, designed or sold by the Company); provided, however, that Executive may provide services to or have a financial interest in a business that competes with the Company if his employment or financial interest is with a separately managed or operated division or affiliate of such business that does not compete with the Company.  The "Non-Competition Period" is period of Executive's employment hereunder plus a period of eighteen (18) months immediately thereafter.  In recognition, acknowledgement and agreement that the Company's business and operations extend throughout North America, Latin America, the European Union, Asia and any other worldwide location in which the Company does business, the parties agree that the geographic scope of this covenant not to compete shall extend North America, Latin America, 
		

		 

		

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		the European Union, Asia and any other worldwide location in which the Company does business.
		

		
			Without limiting the generality of Section 6(a) above, Executive further agrees that during the Non-Competition Period, he will not, directly or indirectly, in any capacity, either separately, jointly or in association with others, solicit divert, take away, or attempt to solicit, divert, or take away or otherwise contact any of the Company's customers with whom Executive had contact, responsibility for, or had acquired confidential information about by virtue of his or her employment with the Company at any time during his or her employment, if such contact is for the general purpose of selling products that satisfy the same general needs as any products that the Company had available for sale to its customers during the Non-Competition Period.
		

		
			Executive agrees that during the Non-Competition Period, he shall not (i) contact in order to induce, solicit or encourage any person to leave the Company's employ and (ii) hire any person who is an employee or consultant under contract with the Company or who was an employee or consultant during the six (6) month period preceding such activity, without the Company's written consent.  Nothing in this paragraph is meant to prohibit an employee of the Company that is not a party to this Agreement from becoming employed by another organization or person.
		

		
			The Non-Competition Period shall be tolled by and automatically extended by the length of a breach by Executive, to the extent permitted by law.  If a court determines that the foregoing restrictions are too broad or otherwise unreasonable under applicable law, including with respect to time or space, the court is hereby requested and authorized by the parties hereto to revise the foregoing restrictions to include the maximum restrictions allowed under the applicable law.
		

		
			Executive hereby agrees not to defame or disparage the Company, its affiliates and their respective officers, directors, members or employees.  Executive hereby agrees to cooperate with the Company and its affiliates, upon reasonable request, in refuting any defamatory or disparaging remarks by any third party made in respect of the Company or its affiliates or their directors, members, officers or employees.
		

		
			For purposes of this Section 6 and Section 7 below, the "Company" refers to the Company, the Parent, and any incorporated or unincorporated affiliates of the Company.
		

			
	
			
				 7.
			Secret Processes and Confidential Information.

		
			Executive agrees to hold in strict confidence and, except as the Company may authorize or direct, not disclose to any person or use (except in the performance of his services hereunder) any confidential information or materials received by Executive from the Company and any confidential information or materials of other parties received by Executive in connection with the performance of his duties hereunder.  For purposes of this Section 7(a), confidential information or materials shall include existing and potential customer information, existing and potential supplier information, product information, design and construction information, pricing and profitability information, financial information, sales and marketing 
		

		 

		

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		strategies and techniques and business ideas or practices.  The restriction on Executive's use or disclosure of the confidential information or materials shall remain in force during Executive's employment hereunder and until the earlier of (i) a period of seven (7) years thereafter or (ii) such information is of general knowledge in the industry through no fault of Executive or any agent of Executive.  Executive also agrees to return to the Company promptly upon its request any Company information or materials in Executive's possession or under Executive's control.  This Section 7(a) is not intended to preclude Executive from being gainfully employed by another.  Rather, it is intended to prohibit Executive from using the Company's confidential information or materials in any subsequent employment or employment undertaken that is not for the benefit of the Company during the identified period.
		

		
			Executive will promptly disclose to the Company and to no other person, firm or entity all inventions, discoveries, improvements, trade secrets, formulas, techniques, processes, know­how and similar matters, whether or not patentable and whether or not reduced to practice, which are conceived or learned by Executive during the period of Executive's employment with the Company, either alone or with others, which relate to or result from the actual or anticipated business or research of the Company or which result, to any extent, from Executive's use of the Company's premises or property (collectively called the "Inventions").  Executive acknowledges and agrees that all the Inventions shall be the sole property of the Company, and Executive hereby assigns to the Company all of Executive's rights and interests in and to all of the Inventions, it being acknowledged and agreed by Executive that all the Inventions are works made for hire.  The Company shall be the sole owner of all domestic and foreign rights and interests in the Inventions.  Executive agrees to assist the Company at the Company's expense to obtain and from time to time enforce patents and copyrights on the Inventions.
		

		
			Upon the request of, and, in any event, upon termination of Executive's employment with the Company for any reason, Executive shall promptly deliver to the Company all documents, data, records, notes, drawings, manuals and all other tangible information in whatever form which pertains to the Company, and Executive will not retain any such information or any reproduction or excerpt thereof.  Nothing in this Agreement or elsewhere shall prevent Executive from retaining his desk calendars, address book (including electronic address books and contacts lists) and rolodex.
		

		
			Nothing in this Section 7 diminishes or limits any protection granted by law to trade secrets or relieves Executive of any duty not to disclose, use or misappropriate any information that is a trade secret for as long as such information remains a trade secret.
		

			
	
			
				 8.
			Notices.  All notices or other communications hereunder shall be in writing and shall be deemed to have been duly given (a) when delivered personally, (b) upon confirmation of receipt when such notice or other communication is sent by facsimile or telex, (c) one (1) business day after delivery to an overnight delivery courier, or (d) on the fifth (5th) calendar day following the date of deposit in the United States mail if sent first class, postage prepaid, by registered or certified mail.  The addresses for such notices shall be as follows:

		
			For notices and communications to the Company: 
		

		

		

		 

		

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		Spectrum Brands, Inc.
3001 Deming Way
Middleton, Wisconsin 53562
Facsimile: (608) 278-6363 
Attention: General Counsel
		

		
			For notices and communications to Executive: at the address set forth in the records of the Company, as updated at the request of Executive from time to time.
		

		
			Any party hereto may, by notice to the other, change its address for receipt of notices hereunder.
		

		
			﻿
		

			
	
			
				 9.
			Section 409A.

		
			This Agreement is intended to satisfy the requirements of Section 409A of the Code ("Section 409A") with respect to amounts, if any, subject thereto and shall be interpreted and construed and shall be performed by the parties consistent with such intent.  Notwithstanding the foregoing, Executive shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or for the account of Executive in connection with payments and benefits provided in accordance with the terms of this Agreement (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any of its affiliates shall have any obligation to indemnify or otherwise hold Executive (or any beneficiary) harmless from any or all of such taxes or penalties.
		

		
			Notwithstanding anything in this Agreement to the contrary, the following special rule shall apply, if and to the extent required by Section 409A, in the event that (i) Executive is deemed to be a "specified employee" within the meaning of Section 409A(a)(2)(B)(i), (ii) amounts or benefits under this Agreement or any other program, plan or arrangement of the Company or a controlled group affiliate thereof are due or payable on account of "separation from service" within the meaning of Treasury Regulations Section 1.409A-l(h) and (iii) Executive is employed by a public company or a controlled group affiliate thereof: no payments hereunder that are "deferred compensation" subject to Section 409A shall be made to Executive prior to the date that is six (6) months after the date of Executive's separation from service or, if earlier, Executive's date of death; following any applicable six (6) month delay, all such delayed payments will be paid in a single lump sum on the earliest permissible payment date.
		

		
			Any payment or benefit due upon a termination of Executive's employment that represents a "deferral of compensation" within the meaning of Section 409A shall be paid or provided to Executive only upon a "separation from service," as defined in Treas.  Reg. § 1.409A-l(h).  Each payment made under this Agreement shall be deemed to be a separate payment for purposes of Section 409A.  Amounts payable under this Agreement shall be deemed not to be a "deferral of compensation" subject to Section 409A to the extent provided in the exceptions in Treasury Regulation §§ 1.409A-l(b)(4) ("short-term deferrals") and (b)(9) ("separation pay plans," including the exception under subparagraph (iii)) and other applicable provisions of Treasury Regulation § 1.409A-1 through A-6.
		

		

		

		 

		

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		Notwithstanding anything to the contrary in Agreement, any payment or benefit under this Agreement or otherwise that is exempt from Section 409A pursuant to Treasury Regulation § 1.409A-l(b)(9)(v)(A) or (C) (relating to certain reimbursements and in-kind benefits) shall be paid or provided to Executive only to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last day of the second calendar year following the calendar year in which Executive's "separation from service" occurs; and provided further that such expenses are reimbursed no later than the last day of the third calendar year following the calendar year in which Executive's "separation from service" occurs.  To the extent any indemnification payment, expense reimbursement, or the provision of any in-kind benefit is determined to be subject to Section 409A (and not exempt pursuant to the prior sentence or otherwise), the amount of any such indemnification payment or expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the indemnification payment or provision of in-kind benefits or expenses eligible for reimbursement in any other calendar year (except for any life-time or other aggregate limitation applicable to medical expenses), and in no event shall any indemnification payment or expenses be reimbursed after the last day of the calendar year following the calendar year in which Executive incurred such indemnification payment or expenses, and in no event shall any right to indemnification payment or reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.
		

			
	
			
				 10.
			General.

		
			Dispute Resolution.  In the event of any dispute or claim relating to or arising out of this Agreement, including without limitation, any claims of breach of contract or unlawful employment discrimination (collectively "Disputes"), such Disputes will be resolved by binding arbitration conducted by the American Arbitration Association ("AAA") in Madison, Wisconsin, in accordance with the AAA's National Rules for the Resolution of Employment Disputes.  The parties mutually agree that the arbitrator shall have no authority to award punitive or exemplary damages to the prevailing party.  Each party shall pay fifty percent (50%) of the cost of the arbitration, except as provided below.  Within twenty (20) days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law.  Any arbitration costs and expenses that are unique to arbitration or are in excess of the costs of filing the same claim in a court of competent jurisdiction shall be borne by the Company.
		

		
			Claims under Section 6 or 7.  With respect to any controversy, claim or dispute under Section 6 or 7 of this Agreement, the Parties each hereby irrevocably submits to the exclusive jurisdiction of any court of the United States located in the State of Wisconsin or in a State Court in Wisconsin.  Except as otherwise specifically provided in this Agreement, the Parties undertake not to commence any suit, action or proceeding based on any dispute between them that arises out of or relates to Section 6 or 7 of Agreement in a forum other than a forum described in this Section 10 provided, however, that nothing herein shall preclude either Party from bringing any suit, action or proceeding in any other court for the purposes of enforcing the provisions of this Section 10 or enforcing any judgment obtained by the Company.  The agreement of the Parties to the forum described in this Section 10 is independent of the law that may be applied in any suit, action, or proceeding, and the Parties agree to such forum even if such forum may under applicable law choose to apply non-forum law.  The Parties waive, to the 
		

		 

		

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		fullest extent permitted by applicable law, any objection which they now or hereafter have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding brought in an applicable court described in Section 10, and the Parties agree that they shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court.  The Parties agree that, to the fullest extent permitted by applicable law, a final and non-appealable judgment in any suit, action or proceeding brought in any applicable court described in Section 10 shall be conclusive and binding upon the Parties and may be enforced in any other jurisdiction
		

		
			Waiver of Jury Trial; Service.  THE PARTIES EXPRESSLY AND KNOWINGLY WAIVE ANY RIGHT TO A JURY TRIAL.  Each of the Parties hereto agrees that this Agreement involves at least One Hundred Thousand Dollars ($100,000) and that this Agreement has been entered into in express reliance on Section 2708 of Title 6 of the Delaware Code.  Each of the Parties hereto irrevocably and unconditionally agrees (i) that service of process may be made on such Party by mailing copies of such process to such Party at such Party's address as specified in Section 8 that service made pursuant to clause (i) above shall, to the fullest extent permitted by applicable law, have the same legal force and effect as if served upon such Party personally within the State of Delaware.
		

		
			Governing Law.  All matters relating to the interpretation, construction, application, validity, and enforcement of this Agreement will be governed by the laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule, whether of the State of Delaware or any other jurisdiction, that would cause the application of laws of any jurisdiction other than the State of Delaware.
		

		
			Amendment; Waiver.  This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument executed by all of the parties hereto or, in the case of a waiver, by the party waiving compliance.  The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same.  No waiver by any party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term or covenant contained in this Agreement.
		

		
			Successors and Assigns.  This Agreement shall be binding upon Executive, without regard to the duration of his employment by the Company or reasons for the cessation of such employment, and inure to the benefit of his administrators, executors, heirs and assigns, although the obligations of Executive are personal and may be performed only by him.  This Agreement shall also be binding upon and inure to the benefit of the Company and its subsidiaries, successors and assigns, including any corporation with which or into which the Company or its successors may be merged or which may succeed to their assets or business.
		

		
			Entire Agreement.  This Agreement and the schedule hereto constitute the entire understanding of the parties hereto with respect to the subject matter hereof and supersede all prior negotiations, discussions, writings and agreements between them with respect to the subject matter hereof, including, but not limited to Executive's Registered Director's Agreement 
		

		 

		

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			QB\42549688.2 

		

 

		with Rayovac Europe GmbH, dated August 27, 2007 as amended October 1, 2007, provided this provision explicitly excludes the Pension Agreement referenced in Section 3(m).
		

		
			Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.  Signatures delivered by facsimile (including by "pdf") shall be deemed effective for all purposes.
		

		
			Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or limit Executive's continuing or future participation during his employment hereunder in any benefit, bonus, incentive or other plan or program provided by the Company or any of its affiliates and for which Executive may qualify, except for any severance plan, program, policy or arrangement.  Amounts which are vested benefits or which Executive is otherwise entitled to receive under any plan or program of the Company or any affiliated company at or subsequent to the date of Executive's termination of employment with the Company shall, subject to the terms hereof or any other agreement entered into by the Company and Executive on or subsequent to the date hereof, be payable in accordance with such plan or program.
		

		
			Mitigation.  In no event shall Executive be obligated to seek other employment by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement.
		

		
			Equitable Relief.  Executive expressly agrees that breach of any provision of Sections 6 or 7 of this Agreement would result in irreparable injuries to the Company, that the remedy at law for any such breach will be inadequate and that upon breach of such provisions, the Company, in addition to all other available remedies, shall be entitled as a matter of right to injunctive relief in any court of competent jurisdiction without the necessity of posting bond or proving the actual damage to the Company.  If the Company or one of its affiliates shall institute any action or proceeding to enforce any such restrictive covenant, Executive hereby waives the claim or defense that the Company or such affiliate has an adequate remedy at law and agrees not to assert in any such action or proceeding the claim or defense that the Company has an adequate remedy at law.  The foregoing shall not prejudice the Company's right to seek any other relief to which it may be entitled.
		

		
			Severability.  Sections 6(a), 6(b), 6(c), 7(a), 7(b) and 10(i) of this Agreement shall be considered separate and independent from the other sections of this Agreement and no invalidity of any one of those sections shall affect any other section or provision of this Agreement.  However, because it is expressly acknowledged that the pay and benefits provided under this Agreement are provided, at least in part, as consideration for the obligations imposed upon Executive under Sections 6(a), 6(b), 6(c), 7(a) and 7(b), should Executive challenge those obligations or any court of competent jurisdiction determine that any of the provisions under these Sections is unlawful or unenforceable, such that Executive need not honor those provisions, then Executive shall not receive the pay and benefits, provided for in this Agreement following termination, (or if he has already received severance pay or benefits, Executive shall be required to repay such severance pay and benefits to the Company within ten (10) calendar days of written demand by the Company) if otherwise available to Executive, irrespective of the reason for the end of Executive's employment.  Except as set forth in the 
		

		 

		

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			QB\42549688.2 

		

 

		preceding two sentences, if any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.
		

		
			No Construction Against Drafter.  The parties acknowledge and agree that each party has reviewed and negotiated the terms and provisions of this Agreement and has had the opportunity to contribute to its revision.  Accordingly, the rule of construction to the effect that ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement.  Rather, the terms of this Agreement shall be construed fairly as to both parties and not in favor or against either party.
		

		
			Cooperation.  Executive agrees to cooperate with the Company, during the Term and for the two (2) years immediately thereafter, by being reasonably available to testify on behalf of the Company or any Affiliate in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, and to assist the Company, or any Affiliate, in any such action, suit or proceeding, by providing information and meeting and consulting at mutually agreeable times and places with the Board or its representatives or counsel, or representatives or counsel to the Company, or any Affiliate, as reasonably requested; provided that such obligation to cooperate does not unreasonably interfere with Executive's business or personal affairs.  The Company agrees to reimburse Executive for all reasonable expenses (including reasonable attorneys' fees) incurred by Executive in connection with his provision of testimony or assistance or other cooperation contemplated by this Section.
		

		
			Withholding.  The Company and its affiliates may withhold from any amounts payable to Executive hereunder all federal, state, city, foreign or other taxes that the Company may reasonably determine are required to be withheld pursuant to any applicable law or regulation or being understood that Executive shall be responsible for payment of all taxes in respect of the payments and benefits provided herein).
		

		
			Headings.  The headings in this Agreement are inserted for convenience of reference only and shall not be a part of or control or affect the meaning of any provision hereof.
		

		
			Representations of Executive.  Executive represents, warrants and covenants that as of the date hereof and as of the date Executive commences employment with the Company: (i) Executive has the full right, authority and capacity to enter into this Agreement and perform Executive's obligations hereunder, (ii) Executive is not bound by any agreement that conflicts with or prevents or restricts the full performance of Executive's duties and obligations to the Company hereunder during or after the Term, and (iii) the execution and delivery of this Agreement shall not result in any breach or violation of, or a default under, any existing obligation, commitment or agreement to which Executive is subject.
		

		
			Clawback.  The Executive acknowledges that to the extent required by applicable law (including without limitation Section 304 of the Sarbanes Oxley Act and Section 954 of the Dodd Frank Act) or by applicable award agreement, the Bonus and other incentive compensation shall be subject to any required clawback, forfeiture, recoupment or similar requirement.
		

		

		

		 

		

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		IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
		

		
			﻿
		

		
			SPECTRUM BRANDS HOLDINGS, INC.
		

		
			﻿
		

		
			﻿
		

		
			By: 
		

		
			Nathan E. Fagre
		

		
			Senior Vice President, General Counsel and Secretary
		

		
			﻿
		

		
			SPECTRUM BRANDS, INC.
		

		
			﻿
		

		
			﻿
		

		
			By: 
		

		
			Nathan E. Fagre
		

		
			Senior Vice President, General Counsel and Secretary
		

		
			﻿
		

		
			﻿
		

		
			EXECUTIVE:
		

		
			﻿
		

		
			 
		

		
			Andreas Rouvé
		

		
			 
		

		 

		

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			QB\42549688.2

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