Document:

ex10-16.htm

Exhibit 10.16

SECOND CONSENT, WAIVER AND MODIFICATION AGREEMENT

This Second Consent, Waiver and Modification Agreement (“Agreement”) is made and entered into as of December 31, 2015, by and among Be Active Holdings Inc., a Delaware corporation (the “Company”), and the parties identified on the signature page hereto (each a “Purchaser” and collectively, “Purchasers”).  Capitalized terms used but not defined herein will have the meanings assigned to them in each of the February 2014 Securities Purchase Agreements, December 2014 Securities Purchase Agreements, February 2014 Transaction Documents and December 2014 Transaction Documents (all as defined below), all of the foregoing as amended pursuant to a Consent, Waiver and Modification Agreement dated as of September 21, 2015 (“Consent Agreement”) and the December 2015 Securities Purchase Agreement and December 2015 Transaction Documents (as defined below).

WHEREAS, the Company and Purchasers identified on Schedule A entered into Securities Purchase Agreements (the “February 2014 Securities Purchase Agreements”) and related Transaction Documents with respect to the Securities identified on Schedule A (“February 2014 Transaction Documents”) as of February 18, 2014; and

WHEREAS, pursuant to the terms of the February 2014 Securities Purchase Agreements, the Company issued to the Purchasers Shares (“Shares”), Series C Preferred Stock (“Preferred Stock”) and Warrants (the “Warrants”); and

WHEREAS, the Company and Purchasers identified on Schedule B entered into Securities Purchase Agreements (the “December 2014 Securities Purchase Agreements”) and related Transaction Documents with respect to the Securities identified on Schedule B (“December 2014 Transaction Documents”) as of December 31, 2014; and

WHEREAS, on September 21, 2015, the Company and Purchasers entered into the Consent Agreement amending the terms of the February 2014 and December 2014 transactions; and

WHEREAS, pursuant to the terms of the December 2014 Securities Purchase Agreements, the Company issued to the Purchasers Secured Convertible Notes (“December 2014 Notes”), which December 2014 Notes were amended pursuant to the Consent Agreement; and

WHEREAS, the Company is contemplating an additional offering of an aggregate of up to $500,000 Purchase Price (“December 2015 Offering”) pursuant to the terms of the December 2015 Securities Purchase Agreement and related December 2015 Transaction Documents (collectively, the “December 2015 Transaction Documents”) on substantially the same terms and conditions as the December 2014 Notes, except as modified therein; and

WHEREAS, in connection with the December 2015 Offering, the Company intends to issue Secured Convertible Notes (“December 2015 Secured Notes”) pursuant to the terms of the December 2015 Offering with such December 2015 Secured Notes having a Maturity Date of December 31, 2016 and a Conversion Price equal to $0.0003 per Share (pre-reverse split and subject to further reduction); and

WHEREAS, in connection with the December 2015 Offering, each Purchaser possesses a right of participation (“Right of Participation”) and certain rights (“MFN Rights”) pursuant to Sections 4.12 and 4.15 respectively of each of the February 2014 Securities Purchase Agreements and December 2014 Securities Purchase Agreements; and

WHEREAS, pursuant to Section 4.14 of each of the February 2014 Securities Purchase Agreements and the December 2014 Securities Purchase Agreements, and Section 3(b) of the Warrants, upon a Share Dilutive Issuance or Dilutive Issuance (as described in the Warrants), the Purchasers are entitled to a Share Dilution Adjustment in connection with the Shares and converted Preferred Stock still held by Purchaser on such date of Share Dilutive Issuance, a reduction of the Conversion Price of the Preferred Stock and December 2014 Notes, and to the extent still applicable, a reduction of the Exercise Price of the Warrants together with an increase in the number of Warrant share issuable; and

 

  

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WHEREAS, pursuant to Section 4.20 of each of the February 2014 Securities Purchase Agreements and December 2014 Securities Purchase Agreements, the Company is prohibited, without the prior approval of Purchasers, from entering into any Variable Rate Transactions nor issuing any Variable Price Linked Equity Securities and certain other restrictions described in the last sentence of Section 4.20; and

WHEREAS, solely in connection with the December 2015 Offering, Purchasers will (i) waive the Right of Participation, (ii) waive their MFN Rights, (iii) release the Company from the restrictions described in the ninth recital above, and (iv) consent to the issuance of the December 2015 Secured Notes by the Company in connection with the December 2015 Offering; and

WHEREAS, pursuant to Section 5.5 of each of the February 2014 Securities Purchase Agreement and December 2014 Securities Purchase Agreement, a Majority in Interest may consent to a modification of any provision of the respective Securities Purchase Agreements on behalf of the Purchasers.

NOW THEREFORE, in consideration of promises and mutual covenants contained herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby consent and agree as follows:

1.           Upon the execution of this Agreement by a Majority in Interest, the Purchasers waive (i) the Right of Participation and their MFN Rights; and (ii) release the Company from the restrictions described in the ninth recital above.

 

2.           The Company hereby agrees and acknowledges that, effective prior to the effectuation of the reverse split described in Paragraph 4 below, the per Share Purchase Price of the Shares, the exercise price of the Warrants, to the extent applicable, and the Conversion Price of the December 2014 Notes is $0.0003 (pre-split), subject to further reduction as described in the February 2014 Transaction Documents and the December 2014 Transaction Documents.

3.           The Company acknowledges that on or before January 8, 2016, the Certificate of Designation of Preferences, Rights and Limitations of Series C Convertible Preferred Stock will have been amended so that upon conversion of one (1) share of Series C Preferred Share, ten (10) shares of Common Stock will be issued.  A copy of the filed amendment will be delivered to all holders of Series C Preferred Shares on or before January 8, 2016.  Failure to timely effectuate the foregoing will be an Event of Default under the February 2014 Transaction Documents, December 2014 Transaction Documents and the December 2015 Transaction Documents.

 

4.           In connection with a reverse split in the ratio of one new Share of Common Stock for each outstanding one thousand Shares of Common Stock which reverse split was effective as of December 24, 2015, the Company undertakes to reserve on behalf of the Purchasers within one business day after the effectuation of the reverse split the amount of Common Stock necessary for the Company to comply with all reservation obligations owed to Purchasers.  Failure to timely reserve such shares is an Event of Default under the February 2014 Transaction Documents and the December 2014 Transaction Documents.  The Company will not increase the par value of the Common Stock in connection with the reverse split.  The Company acknowledges that the reduction to $0.0003 of the Per Share Purchase Price, the Conversion Price and the exercise prices of the Warrants is effective prior to the consummation of the reverse split.

 

5.           The Company undertakes to deliver to the Purchasers on or before January 29, 2016, all of the additional Shares necessary to effectuate the adjustments of all securities held by Purchasers as of September 21, 2015 (pre-split) as a result of the Share Dilutive Issuances in connection with the Shares, converted but still held Preferred Stock and December 2014 Notes, if any, as well as the Warrant Dilutive Issuances all of the foregoing in the amounts as further described on Schedule C (reflecting the reset to $0.0003) (“Reset Shares”).  Anything to the contrary herein notwithstanding, or in the Schedules attached hereto, the Company agrees to deliver an accurate calculation and accounting of the amount of Shares representing the Reset Shares.  In the event the delivery of such Reset Shares would exceed the Beneficial Ownership Limitation applicable to any Purchaser, then the delivery of the Reset Shares which could cause any Purchaser to exceed the Beneficial Ownership Limitation will be deferred until such time as such Purchaser provides notice to the Company that such Purchaser may receive or beneficially own such Shares which exceeds the Beneficial Ownership Limitation without exceeding the then applicable Beneficial Ownership Limitation.  Anything to the contrary herein notwithstanding, the Company will reserve not fewer than 50,000,000 Shares for issuance as Reset Shares until such time as all such Reset Shares are actually issued.  The number of Shares

  

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to be delivered is currently being recalculated by both the Purchasers and the Company in order to prevent the Purchasers from receiving any Reset Shares in excess of the Beneficial Ownership Limitation.  Additionally, the number of Reset Shares to be delivered is subject to adjustment in the event records of the Transfer Agent provide information inconsistent with assumptions relied upon herein.

6.           Each of the Purchasers hereby represents the truth and accuracy of each Purchaser’s representations and warranties contained in each of the February 2014 and December 2014 Transaction Documents when made and also as if such representations and warranties were made as of the date hereof, except with respect to Section 3.2(j) of the February 2014 Securities Purchase Agreements and December 2014 Securities Purchase Agreements in connection with which trading might have been done in reliance on Section 4.2(i) of the February 2014 Securities Purchase Agreements and December 2014 Securities Purchase Agreements. The Company hereby represents the truth and accuracy of all of the Company’s representations and warranties contained in each of the February 2014 and December 2014 Transaction Documents when made and also as if such representations and warranties were made as of the date hereof, except as same have been modified or updated in Schedule C of the Consent Agreement or in the SEC Reports.

7.           The Purchasers’ right to participate in a Subsequent Financing as set forth in Section 4.12 of the December 2014 Securities Purchase Agreements is hereby extended until December 31, 2017.

8.           The Protection Period as employed in each of the February 2014 Securities Purchase Agreement and the December 2014 Securities Purchase Agreements is hereby extended until December 31, 2017.

9.           The restriction described in the last sentence of Section 4.20 in each of the February 2014 Securities Purchase Agreements and December 2014 Securities Purchase Agreements is extended until December 31, 2016.

10.           The Company acknowledges that this Agreement does not affect the holding period of any of the securities underlying the February 2014 Preferred Stock, the February 2014 Warrants, or the December 2014 Notes.

11.           The undersigned consent to the Company completing the December 2015 Offering and to the amendment of the Security Agreement and Guaranty to include the December 2015 Offering as a component of the Obligations and pari passu with the December 2014 Purchasers’ security interest to be secured by the Collateral and delivered in connection with the Security Agreement entered into in connection with the December 2014 Transaction Documents.  In connection therewith, the Company and Purchasers authorize the Collateral Agent to make such additional filings at the discretion of the Collateral Agent to memorialize such agreement.

12.           Annexed hereto is Amended Schedule A to the Security Agreement and the Guaranty.

13.           If the closing of the December 2015 Offering has not occurred by January 7, 2016, this Agreement will be null and void.

 

14.           Each of the Purchasers executing this Agreement represents to the Company that it has the authority to enter into and deliver this Agreement.

 

15.           The Company represents to the Purchasers that the books and records of the Company accurately reflect the information described on Schedules A and B.

 

16.           Except as specifically described herein, there is no other waiver expressed or implied.

 

17.           In this Agreement words importing the singular number include the plural and vice versa; words importing the masculine gender include the feminine and neutral genders. The word “person” includes an individual, body corporate, partnership, trustee or trust or unincorporated association executor, administrator or legal representative.

 

18.           This Agreement will be subject to amendment and/or waiver in the same manner and subject to the same requirements as described in the February 2014 Transaction Documents and December 2014 Transaction Documents.

 

  

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19.           The undersigned acknowledges and agrees that this Agreement is deemed notice of the Company’s obligations under Section 4.14(b) of the February 2014 Securities Purchase Agreements and December 2014 Securities Purchase Agreements, Section 5(g) of the December 2014 Notes and Section 3(g) of the December 2014 Warrants.

 

20.           The invalidity or unenforceability of any provision hereof will in no way affect the validity or enforceability of any other provision.

 

21.           All notices, demands, requests, consents, approvals, and other communications required or permitted in connection with this Agreement shall be made and given in the same manner set forth in Section 5.4 of each of the February 2014 Securities Purchase Agreements and December 2014 Securities Purchase Agreements.

 

22.           This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to conflicts of laws and principles that would result in the application of the substantive laws of another jurisdiction. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of New York in the federal courts located in the state of New York. Both parties and the individuals executing this Agreement and other agreements on behalf of the parties agree to submit to the jurisdiction of such courts and waive trial by jury. The prevailing party (which shall be the party which receives an award most closely resembling the remedy or action sought) shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.

 

23.           The division of this Agreement into articles, sections, subsections and paragraphs and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this agreement.

 

24.           This Agreement may be executed in counterparts, all of which when taken together shall be considered one and the same Agreement and shall become effective when the counterparts have been signed by each party and delivered to the other party, it is being understood that all parties need not sign the same counterpart. In the event that any signature is delivered by facsimile or PDF transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were an original thereof.

(Signatures to follow)

  

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SCHEDULE A SECOND CONSENT WAIVER AND MODIFICATION AGREEMENT

FEBRUARY 2014 PURCHASERS

	
PURCHASERS

	
SUBSCRIPTION AMOUNT

	
HS CONTRARIAN INVESTMENTS LLC

347 N. New River Drive East, #804

Fort Lauderdale, FL 33301

	
$150,000.00

	
GRQ CONSULTANTS INC. 401K

555 S. Federal Highway, #450

Boca Raton, FL 33432

Fax: 561-235-5379

	
$150,000.00

	
MICHAEL BRAUSER

4400 Biscayne Blvd., #850

Miami, FL 33137

Fax: 305-576-9298

	
$150,000.00

	
BIRCHTREE CAPITAL LLC

4400 Biscayne Blvd., #850

Miami, FL 33137

Fax: 305-576-9298

	
$100,000.00

	
ALPHA CAPITAL ANSTALT

Pradafant 7

9490 Furstentums

Vaduz, Lichtenstein

Fax: 212-586-8244

	
$500,000.00

	
MOMONA CAPITAL

510 Madison Avenue

New York, NY 10022

Fax: 212-586-8244

	
$50,000.00

	
THE JOHN ST. THOMAS AND BARBARA ST. THOMAS REV. 2005 TRUST DTD 9/9/2005

JOHN ST. THOMAS & BARBARA ST. THOMAS TTEES

10315 Cresta Drive

Los Angeles, CA 90064

Tel.: 310-858-4825

	
$20,000.00

	
BRIO CAPITAL MASTER FUND LTD.

100 Merrick Road, Suite 401W

Rockville Center, NY 11570

Tel.: 516-536-0500

	
$200,000.00

	
STRATCON PARTNERS

155 West 68th Street, #27E

New York, NY 10023

Tel.: 658-7878

	
$25,000.00

	
BST COLD LLC

1601 Sunset Plaza Drive

Los Angeles, CA 90069

Fax: 310-855-9475

	
$50,000.00

	
SANDOR CAPITAL MASTER FUND

2828 Routh Street, Suite 500

Dallas, TX 75201

Tel.: 214-849-9876

 

	
$99,999.99

  

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POINT CAPITAL INC.

285 Grand Avenue

Building 5, 2nd Floor

Englewood, NJ 07631

Tel.: 201-408-5126

	
$100,000.00

	
JILL STRAUSS

224 Quadro Vecchio Drive

Pacific Palisades, CA 90272

Fax: 310-855-9475

	
$25,000.00

	
CRAIG GOODSTADT

112 Chopin Drive

Wayne, NJ 07470

Tel.: 201-390-0994

	
$15,000.00

	
DENVILLE AND DOVER FUND LLC

4 South Orange Avenue, Unit 170

South Orange, NJ 07079

	
$115,000.00

	
MELECHDAVID, INC. RETIREMENT PLAN

100 S. Pointe Drive, #1405

Miami Beach, FL 33130

Fax: 860-476-1582

	
$50,000.00

	
TOTAL

	
$1,799,999.99

*  All share numbers disclosed herein are reflected as “pre-split” numbers.

  

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SCHEDULE B SECOND CONSENT WAIVER AND MODIFICATION AGREEMENT

DECEMBER 2014 PURCHASERS

	
PURCHASERS

	
SUBSCRIPTION AMOUNT

	
ALPHA CAPITAL ANSTALT

Lettstrasse 32

P.O. Box 1212

9490 Vaduz, Lichtenstein

Fax: 212-586-8244

Taxpayer ID# None

	
$75,000.00

	
BRIO CAPITAL MASTER FUND LTD.

100 Merrick Road, Suite 401W

Rockville Center, NY 11570

Tel.: 516-536-0500

Taxpayer ID# 98-1072321

	
$50,000.00

	
SANDOR CAPITAL MASTER FUND

2828 Routh Street, Suite 500

Dallas, TX 75201

Tel.: 214-849-9876

Taxpayer ID#: 27-0013809

	
$165,000.00

	
JSL KIDS PARTNERS

2828 Routh Street, Suite 500

Dallas, TX 75201

Tel.: 214-849-9876

Taxpayer ID#: 38-3784405

	
$35,000.00

	
BARRY HONIG

555 S. Federal Highway, Suite 450

Boca Raton, FL 33432

Taxpayer ID#: 118-66-6789

	
$100,000.00

	
TOTAL

	
$425,000.00

*  All share numbers disclosed herein are reflected as “pre-split” numbers.

  

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-20-EX-10.1

 Exhibit 10.1 

Certain confidential information contained in this Exhibit was omitted by means of redacting a portion of the text and replacing it with asterisks (***). This
Exhibit has been filed separately with the SEC without the redaction pursuant to a Confidential Treatment Request under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

TERMINATION AND FUTURE SHARING AGREEMENT 

This TERMINATION AND FUTURE SHARING AGREEMENT (this “Agreement”) is entered into as of September 30, 2015, by and among
WLR-Greenbrier Rail Inc., a Delaware corporation (the “Company”) and Greenbrier Leasing Company LLC, an Oregon limited liability company (“GLC”). Capitalized terms used herein but not otherwise defined shall
have the meaning set forth in the Railcar Purchase Agreement (as defined below). 
 Background 

WHEREAS, GLC and the Company are party to the following agreements: Syndication Agreement dated April 29, 2010, Advisory Services
Agreement dated April 29, 2010, Letter Agreement regarding Participation in Line of Credit Agreement dated April 29, 2010, and a Contract Placement Agreement dated April 29, 2010 (the “Prior Agreements”); and 

WHEREAS, in connection with GLC’s purchase of that certain railcar lease fleet (the “Lease Fleet”) from WL Ross-Greenbrier Rail
I LLC (“Rail I”), an affiliate of the Company, pursuant to a Railcar Purchase Agreement dated of even date herewith (the “Railcar Purchase Agreement”), the parties desire to terminate each of the Prior Agreements and enter into
this Agreement, in part, as an inducement (i) for Rail I to enter into the Railcar Purchase Agreement, and to consummate the transactions contemplated therein, and (ii) for the Company and its affiliates to cooperate in the performance of
the transactions contemplated by the Payoff Agreement, and the remarketing of the Lease Fleet. 
 Agreement 

NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereto, intending to be legally bound, do hereby agree
as follows: 
 1. Termination. The parties agree that at the Closing, each of the Prior Agreements shall be terminated automatically
without any further action by either party, provided, that, all provisions of each of the Prior Agreements that expressly or by their nature provide for rights, obligations, or remedies that extend beyond termination of the Prior Agreement shall
survive and remain in full force and effect. 
 2. Fee. At the Closing, GLC shall pay the Company a fee of $1,000,000, which fee and
all amounts allocated to the Company and any of its affiliates pursuant to the first paragraph of Section 4 subparagraph (iii) below from the Citizens Accounts (as defined below), the Company agrees shall be retained in the Company and
available to Rail I to satisfy any obligations owed to GLC under the Railcar Purchase Agreement by Rail I until December 15, 2016. Such fee is in exchange for the Company: 

(a) Terminating the Prior Agreements; 

(b) Causing Rail I to enter into the Railcar Purchase Agreement and consummate the transactions contemplated thereby; and 

(c) Agreeing to maintain the existence of Rail I until December 15, 2016 and the other covenants set forth below. 

  
 Page 1 of 5—TERMINATION AGREEMENT

 3. Future Distributions. 

As further consideration of the Company’s obligations under Section 2(a)-(d) above, GLC shall also make distributions to the
Company as contemplated and set forth under Section 3(c) of Exhibit A attached hereto (the “Future Distributions”). 

4. Covenants. 
 The
Company covenants and agrees to (i) maintain its existence and that of Rail I until December 15, 2016; (ii) to cooperate with GLC in the remarketing and sale of the Lease Fleet following the Closing; and (iii) to work together
with GLC in good faith, and cause its affiliates to work with GLC in good faith, to reconcile and properly allocate and distribute to the appropriate parties as may be mutually agreed the funds in each of the Citizens Bank of MA accounts set forth
on Exhibit B (collectively, the “Citizen Accounts”) within five days of Closing. 
 GLC agrees to promptly provide notice to the
Company of the occurrence of any Lease Fleet Event and, within 10 business days of the end of each calendar month, provide notice and reasonable supporting details of the receipt and calculation, as applicable, of all Lease Income, Residual Income,
Transaction Income and related Fleet Reserves and Distributable Cash. 
 GLC also agrees to reimburse the Company promptly upon demand for
all incremental necessary corporate services, accounting, audit and other out-of-pocket costs and expenses of maintaining its existence and the existence of Rail I, Holdings and the Accounts from December 15, 2015 through December 15,
2016. 
 5. Indemnification. 

(a) Indemnification. Each party (“Indemnifying Party”) agrees to indemnify and hold harmless the other party and such
party’s affiliates and its and their respective principals, officers, directors, shareholders, partners, members, managers and employees (each, an “Indemnified Party”) from and against, and to pay or reimburse any such Indemnified
Party for, any and all actions, claims, demands, proceedings, investigations, inquiries, liabilities, obligations, fines, deficiencies, costs, expenses, royalties, losses and damages (whether or not resulting from third party claims) related to or
arising out the Indemnifying Party’s Covered Acts, and to reimburse such Indemnified Party for out-of-pocket expenses (including reasonable and documented legal and accounting fees) incurred by it in connection with, or relating to
investigating, preparing to defend or defending any actions, claims or other proceedings (including any investigation or inquiry) arising in any manner out of, or in connection with, the Indemnifying Party’s Covered Acts (whether or not such
Indemnified Party is a named party in such proceeding); provided, however, that no party shall be responsible under this Section 5(a) for any claims, liabilities, losses, damages or expenses to the extent that they are
agreed by the Indemnifying Party and such Indemnified Party, or finally determined in arbitration or judicially (without right of further appeal), to result from actions taken by such Indemnified Party due to such Indemnified Party’s gross
negligence, willful misconduct, bad faith or knowing violation of applicable law. “Covered Acts” only includes breach of this Agreement, gross negligence, willful misconduct, bad faith or knowing violation of applicable law. 

(b) Limitation on Liability. In no event will any party to this Agreement be liable 

  
 Page 2 of 5—TERMINATION AGREEMENT

 
under this Agreement for any punitive, exemplary, indirect, special, incidental or consequential damages, including lost profits or savings, whether or not such damages are foreseeable, or in
respect of any liabilities relating to any third party claims (whether based in contract, tort or otherwise), unless such damages are owed and paid by such party to a third party. 

(c) Contribution. If and to the extent that the indemnification provided for in Section 5(a) is not enforceable for any
reason, the applicable Indemnifying Party agrees to make the maximum contribution possible pursuant to applicable law to the payment and satisfaction of any actions, claims, liabilities, losses and damages incurred by an Indemnified Party for which
such Indemnified Party would have otherwise been entitled to be indemnified hereunder. 
 6. Waiver and Release. Each of GLC and the
Company hereby waive and release any and all claims, counterclaims, debts, liabilities, demands, obligations, actions, and causes of action, known or unknown, vested or contingent, of every nature and kind, that either may now have or may have had
against the other, or any of their affiliates, and their and their affiliates’ respective past, present, and future officers, directors, shareholders, members, managers, employees, successors, and assigns (the “Released Parties”),
that may have arisen or accrued through the date of this Agreement, and upon Closing and through the closing date thereunder, whether arising under or relating to the Prior Agreements or otherwise, and forever release and discharge the Released
Parties from any and all claims, suits or causes of action they may have against any of them as of the date of this Agreement, and upon the Closing through the closing date thereunder, whether arising under or relating to the Prior Agreements or
otherwise. Notwithstanding anything to the contrary in this Section 6 the releases provided above shall not apply to any rights or obligations arising out of or related to this Agreement, the Railcar Purchase Agreement or any rights and
obligations set forth in the Prior Agreements that by their terms survive the expiration or termination of the Prior Agreements as more fully described in Section 1 above. Each of WL Ross-Greenbrier Rail Holdings I LLC (“Holdings”)
and the Company hereby waive and release any and all claims, counterclaims, debts, liabilities, demands, obligations, actions, and causes of action, known or unknown, vested or contingent, of every nature and kind, that either may now have or may
have had against the Lease Fleet, that may have arisen or accrued through the date of this Agreement, and upon Closing and through the closing date thereunder, whether arising under or relating to the Subordinated Loan Agreement dated April 27,
2010 between Rail I and Holdings, or otherwise. 
 7. Miscellaneous. 

(a) Confidentiality. The terms and conditions of this Agreement are confidential, and except as otherwise required by law, or disclosure
in any filing required of such party or such party’s affiliate with any securities commission or other regulatory agency or as may be required by the securities listing requirements applicable to such party or such party’s affiliates,
neither party shall disclose this Agreement or any portion hereof to any person other than its legal counsel, investors, affiliates, advisors and accountants without prior written consent of the other party. 

(b) Notices. All notices, demands and other communications given or delivered under this Agreement shall be in writing and shall be
deemed to have been given (i) when personally delivered as evidenced by a signed receipt, (ii) 3 business days after being mailed by first class mail, certified with return receipt requested, or (iii) upon actual receipt if delivered
by a reputable overnight courier for next business day delivery, to the following addresses (or such other address as is specified in writing): 

  
 Page 3 of 5—TERMINATION AGREEMENT

 Greenbrier Leasing Company LLC 

One Centerpointe Drive, Suite 200 

Lake Oswego, Oregon 97035 
 Attn:
General Counsel 
 WLR-Greenbrier Rail Inc. 

1166 Avenue of the Americas 
 New
York, New York 10036 
 Attn: Wendy L. Teramoto 

(c) Entire Agreement; Amendment and Modification. This Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof, superseding all prior understandings and agreements whether written or oral. This Agreement may not be amended or revised except by a writing signed by GLC and the Company. 

(d) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns but may not be assigned (and no duties may be delegated) by any party without the prior written consent of the other party hereto; provided that the Company may assign any of its rights to receive payments hereunder to any of its
affiliates (including related funds or investors) upon prior written notice to GLC and provided that the Company shall at all times remain liable hereunder notwithstanding such assignment, including, without limitation, remaining liable for any
indemnification hereunder. 
 (e) Governing Law; Venue. THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN TITLE 14 OF ARTICLE 5 OF THE GENERAL
OBLIGATIONS LAW). 
 (f) Waiver of Jury Trial. Each party hereby irrevocably waives any right it may have, and agrees not to request,
a jury trial for the adjudication of any dispute hereunder or in connection herewith or arising out of this Agreement or any transaction contemplated hereby. 

(g) Survival. The obligations under this Agreement shall survive until fully performed and with respect to indemnification obligations,
shall survive until the expiration of the statute of limitations for any claims that may be made thereunder. 
 (i) Counterparts.
This Agreement may be signed and delivered in multiple counterparts (including delivery by means of facsimile), each of which shall be deemed an original but which together shall constitute one and the same instrument. 

[signature page follows] 

  
 Page 4 of 5—TERMINATION AGREEMENT

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

			
	WLR-GREENBRIER RAIL INC.
		
	By:	 	/s/ Wendy Teramoto
	Name:	 	Wendy Teramoto
	Title:	 	Vice President

  

			
	 GREENBRIER LEASING COMPANY LLC

		
	By:	 	/s/ Larry Stanley
	Name:	 	Larry D. Stanley
	Title:	 	Vice President

  
 SIGNATURE PAGE—TERMINATION
AGREEMENT 

 EXHIBIT A 

Future Distributions 
  

	1)	Certain Definitions. 

  

	 	a)	“Distributable Cash” means Lease Income, Residual Income, and Transaction Income. 

  

	 	b)	“Fleet Reserve” means a reserve amount equal to GLC’s good faith estimate of unpaid trailing expenses for the Lease Fleet. 

 

	 	c)	“Lease Fleet Event” shall mean the sale or other transfer of any ownership interests by GLC in the Lease Fleet to unaffiliated third parties. 

 

	 	d)	“Lease Income” means the cash payments received by GLC or its affiliates made by lessees pursuant to leases under the Lease Fleet (including pre-Closing Lease Income which includes amounts in the Accounts at
Closing) (i) less out-of-pocket expenses (including pre-Closing trailing expenses and any interest expense associated with GLC’s borrowing in connection with its purchase of the Lease Fleet) reasonably incurred by GLC or its
affiliates in maintaining the Lease Fleet, and (ii) less any Fleet Reserve. 

  

	 	e)	“Payment Date” is the date when GLC makes a distribution of Distributable Cash in accordance with Section 2 of this Exhibit A. 

 

	 	f)	“Residual Income” means any amounts remaining in the Fleet Reserve after all trailing expenses have been paid, once finally determined by GLC, provided in the case of any Lease Fleet Event, within two weeks of
any Lease Fleet Event, GLC shall provide a calculation of any amounts to remain in the Fleet Reserve with respect to such assets sold and an estimated time when any amount remaining in such Fleet Reserve will convert to Residual Income.

  

	 	g)	“Transaction Income” means the cash consideration received by GLC in a Lease Fleet Event (i) less the documented out-of-pocket transaction costs of such Lease Fleet Event and (i) less
any Fleet Reserve. 

  

	2)	Timing of Cash Distributions. 

  

	 	a)	GLC will distribute Transaction Income within two business days following its receipt of cash consideration, in connection with each closing of a Lease Fleet Event. 

 

	 	b)	GLC will distribute Lease Income within ten business days following the end of each calendar month. 

  

	 	c)	GLC will distribute the Residual Income within ten days following GLC’s final determination of the Residual Income, if any. 

  

	3)	On each Payment Date, GLC shall pay to the Company, or retain for itself, Distributable Cash in the following priority and amounts: 

  

	 	a)	 First, GLC shall retain an amount, that when taken together with all prior amounts retained by GLC pursuant to this clause First, is equal to:
(i) the purchase price paid by GLC for the Lease 

  
 1 

EXHIBIT A 

	 	
Fleet at the Closing (the “Purchase Price”), (ii) plus the documented out-of-pocket expenses and closing costs incurred by GLC in connection with its purchase of the Lease
Fleet, the dollar amount which shall be provided by GLC to the Company no later October 31, 2015, (iii) plus $1 million, 

  

	 	b)	Second, GLC shall retain an amount, taken together with all prior amounts distributed pursuant to this clause Second, that would yield GLC a *** pre-tax internal annual rate of return on the total of (i) the
Purchase Price, (ii) less amounts borrowed to pay the Purchase Price, (iii) plus $1 million, (iv) plus the documented out-of-pocket expenses and closing costs incurred by GLC in connection with its purchase of the
Lease Fleet, the dollar amount which shall be provided by GLC to the Company no later October 31, 2015; 

  

	 	c)	Third, GLC shall pay the Company of *** and retain *** of the balance of the Distributable Cash until both (i) the amounts received by Company returns to the Company its original equity investment in Rail I of ***
(the “Original Equity Investment”) plus amounts that yield the Company a pre-tax internal annual rate of return of *** on the Original Equity Investment since the Closing and (ii) the amounts received by GLC under this
subsection returns to GLC its original investment in Rail I of *** (the “GLC Original Investment”) plus amounts that yield GLC a pre-tax internal rate of return of *** on the GLC Original Investment; and 

 

	 	d)	Fourth, GLC shall retain 100% of all Distributable Cash thereafter. 

 4) Example calculations of selected
provisions under this Exhibit A are attached hereto as Exhibit A-1. 

  
 2 

EXHIBIT A

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