Document:

BKH Ex-10.16 12 2014

Exhibit 10.16

THIRD AMENDMENT TO THE
AMENDED AND RESTATED
OUTSIDE DIRECTORS STOCK BASED COMPENSATION PLAN

This Third Amendment to the Amended and Restated Outside Directors Stock Based Compensation Plan (“Amendment”) is adopted by Black Hills Corporation (“Company”) effective the 1st day of January, 2015.
		
	1.
	RECITALS.

This document is the Third Amendment to the Amended and Restated Outside Directors Stock Based Compensation Plan which was adopted by the Company effective the 1st day of January, 2015 (“Plan”).  Under Section 11 of the Plan, the Company reserved the right to amend, modify, or discontinue the Plan provided only that any modification is not to reduce accrued and unpaid benefits.  The amendment hereunder does not reduce any accrued or unpaid benefits.
		
	2.
	AMENDMENTS TO SECTION 4. ADDITIONS TO ACCOUNTS.

Section 4b of the Plan is amended and restated as follows:

		
	b.
	For the Quarter Period December 1, 2007 through February 29, 2008, each Participant shall be entitled to a quarterly addition to their Account in the amount determined by dividing the sum of $11,333.33 by the market price of the Company common stock on February 29, 2008.  

For the Quarter Period beginning March 1, 2008, and for the remainder of the Plan year, and for each Plan year thereafter through November 30, 2010 each Participant shall be entitled to a quarterly addition to his or her Account in the amount of the number of Company common stock equivalents determined by dividing the sum of $12,500 by the market price of the Company common stock on the last day of the Quarter Period for each Quarter Period of the Plan Year that the Participant is eligible for benefits.  

For the Quarter Period December 1, 2010 through February 28, 2011, each Participant shall be entitled to a quarterly addition to their Account in the amount determined by dividing the sum of $14,166.67 by the market price of the Company common stock on February 28, 2011.  

For the Quarter Period beginning March 1, 2011, and for the remainder of the Plan year, and for each Plan year thereafter through November 30, 2012 each Participant shall be entitled to a quarterly addition to his or her Account in the amount of the number of Company common stock equivalents determined by dividing the sum of $15,000 by the market price of the Company common stock on the last day of the Quarter Period for each Quarter Period of the Plan Year that the Participant is eligible for benefits.  

For the Quarter Period December 1, 2012 through February 28, 2013, each Participant shall be entitled to a quarterly addition to their Account in the amount determined by dividing the sum of $17,500.00 by the market price of the Company common stock on February 28, 2013.  

For the Quarter Period beginning March 1, 2013, and for the remainder of the Plan year, and for each Plan year thereafter through November 30, 2014, each Participant shall be entitled to a quarterly addition to his or her Account in the amount of the number of Company common stock equivalents determined by dividing the sum of $18,750 by the market price of the Company common stock on the last day of the Quarter Period for each Quarter Period of the Plan Year that the Participant is eligible for benefits.  

For the Quarter Period December 1, 2014 through February 28, 2015, each Participant shall be entitled to a quarterly addition to their Account in the amount determined by dividing the sum of $19,583.33 by the market price of the Company common stock on February 28, 2015.  

For the Quarter Period beginning March 1, 2015, and for the remainder of the Plan year, and for each Plan year thereafter, each Participant shall be entitled to a quarterly addition to his or her Account in the amount of the number of Company common stock equivalents determined by dividing the sum of $20,000 by the market price of the Company common stock on the last day of the Quarter Period for each Quarter Period of the Plan Year that the Participant is eligible for benefits.  

If a Participant is not an Outside Director for the entire Quarter Period, then the Participant’s addition for the quarter should be prorated for the number of months that the Participant served as Outside Director.

		
	3.
	NO OTHER CHANGES.

Other than specifically set forth herein, all terms, conditions and provisions of the Plan shall remain the same.

Dated this 28th day of October, 2014.

BLACK HILLS CORPORATION

By /s/ David R. Emery        
Its Chairman, President and CEO

ATTEST:

/s/ Roxann R. Basham        
Secretary

(CORPORATE SEAL)trinityagreementexhibit1

EXECUTION VERSION             CH\2041570.2   SUPPLY AGREEMENT    This Supply Agreement (this “Agreement”) is made as of this 3rd day of November, 2014   (the “Effective Date”), by and between GATX Corporation, a corporation organized under the   laws of the State of New York (“Buyer”), and Trinity Rail Group, LLC, a limited liability   company organized under the laws of the State of Delaware (“Seller”) (collectively, the “Parties”   and individually, a “Party”).      In consideration of the mutual promises contained herein and other good and valuable   consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer   agree as follows:      1. TERM.  Except to the extent earlier terminated pursuant to the terms hereof, the term   of this Agreement shall commence on the Effective Date and end on March 13, 2020;   provided, that if Seller has not Delivered (as hereinafter defined) all of the Railcars (as   hereinafter defined) ordered by Buyer hereunder on or before such end date, this   Agreement shall expire on the date the last Railcar is Delivered (the “Term”).      2. PURCHASE COMMITMENT AND QUANTITY.  Except to the extent earlier   terminated pursuant to the terms hereof, (i) Buyer hereby commits to purchase during   the Term a total of eight thousand nine hundred fifty (8,950) Railcars (the “Base Order   Quantity”) and to submit to Seller, pursuant to the terms of this Agreement, Buyer’s   purchase orders to fulfill such commitment, and (ii) Seller agrees to manufacture, sell   and Deliver to Buyer during the Term the 8,950 Railcars as ordered by Buyer.    Notwithstanding anything to the contrary contained herein, Buyer shall not be required   to purchase, and Seller shall not be required to manufacture, sell and Deliver, any   Railcars in excess of the Base Order Quantity under the terms of this Agreement.        3. RAILCARS AVAILABLE FOR PURCHASE.     3.1. Except to the extent later removed from Exhibits A, B or C pursuant to Section   3.5, Seller shall make available for sale, and Buyer shall purchase, Railcars   consisting of one or more of (i) the types of Railcar listed in Exhibits A, B, and C   (the “Railcar Types”) as of the Effective Date; (ii) the Modified Railcars   (including those Railcars and Railcar Types treated as a Modified Railcar under   Section 3.4); and (iii) those railcars and railcar types, if any, that are added to   Exhibits A, B, or C after the Effective Date in accordance with Sections 3.3 or   3.4, or by mutual written agreement of the Parties (collectively, “Railcars” and   individually, a “Railcar”).  For the avoidance of doubt, each unit within an   articulated or drawbar-coupled string of railcars shall be considered a single   Railcar for all purposes hereunder.      

 

2       CH\2041570.2   3.2. Buyer may purchase from Seller hereunder, Railcar Types (i) that, on or after the   Effective Date, [*****]1 (each of the foregoing described in clauses (i) and (ii)   above, individually, a “Modified Railcar” and collectively, “Modified Railcars”),   and Exhibit A, B, and/or C, respectively, shall be amended without further action   by the Parties to include each such Modified Railcar.  [*****]   3.3. Buyer may not purchase “Excluded Railcars” as defined in this Section 3.3.    “Excluded Railcars” are (i) railcars or railcar types that are not listed on Exhibits   A, B, or C; (ii) railcars and railcar types [*****] (each of the foregoing described   in clause (ii) above, individually, a “Developed Railcar” and collectively,   “Developed Railcars”); or [*****].     [*****], then, in any such case, such Excluded Railcar shall thereafter constitute   a Railcar which Buyer may purchase from Seller and Exhibit A, B or C (as   applicable) shall be amended without further action by the Parties to include such   Excluded Railcar (except, in the case of clause (y) above, to the extent prohibited   under a written agreement between Seller and the Third Party that had previously   been the exclusive purchaser of such Excluded Railcar); [*****].   3.4. If a Railcar and/or Railcar Type meet the definition of a Developed Railcar set   out in Section 3.3 as well as the definition of a Modified Railcar set out in   Section 3.2, the Railcar shall be a Developed Railcar for all purposes under this   Agreement.    3.5. Once a Railcar is included on Exhibit A, B or C, Buyer may submit an Order for   such Railcar from Seller hereunder until such time that the Parties mutually agree   to remove such Railcar from such Exhibit.   3.6. For purposes of this Agreement:    3.6.1. “Third Party” shall mean any Person that is not a (i) Party to this Agreement   or (ii) an Affiliate (as hereinafter defined) of a Party to this Agreement;   3.6.2. “Affiliate” shall mean, with respect to any Person, any other Person   controlling, controlled by, or under common control with the first Person.   3.6.3. “Control” (including the terms “controlling,” “controlled by” and “under   common control with”) means the possession, directly or indirectly, of the   power to direct or cause the direction of the management or the policies of a   Person, whether through the ownership of at least 51% of the voting   securities, by contract or otherwise; and                                                       1 [*****] Certain information on this page has been omitted and filed separately with the Commission.  Confidential   treatment has been requested with respect to the omitted portions.     

 

3       CH\2041570.2   3.6.4. “Person” shall mean an individual, partnership, limited partnership, limited   liability company, trust, business trust, estate, corporation, custodian, trustee,   executor, administrator, nominee, business trust, registered limited liability   partnership, association, government, governmental subdivision,   governmental agency, governmental instrumentality and any other legal or   commercial entity in its own or in a representative capacity.   4. SPECIFICATION.        4.1. With respect to each Railcar Type set forth on Exhibits A, B, and C as of the   Effective Date, including a Railcar Type added pursuant to Section 3 hereof or by   mutual agreement of the Parties after the Effective Date, the applicable Railcar   “Specification” shall consist of (i) Seller’s then-current standard specification as   of the date of the applicable Seller’s Order Confirmation (as hereinafter defined)   for such Railcar as designated by the applicable “Seller Spec. No.” (hereinafter   referred to as “Seller Specification”), (ii) any materials, parts, Components, or   railcar configuration alternatives requested by Buyer (subject to Seller’s consent,   such consent not to be unreasonably withheld or delayed) specified in the   applicable Seller’s Order Confirmation (“Alternates”) and (iii) as subsequently   modified after the date of Seller’s Order Confirmation in any Change Orders (as   defined in Section 9.8), if applicable.  The Seller Specification shall not provide   for, and Seller may not use, non-new parts (other than non-new Buyer-Supplied   Components) on Railcars manufactured for Buyer hereunder without Buyer’s   prior written consent.    4.2. As of the Effective Date, Seller has provided a copy of the Seller Specification for   each Railcar Type set forth on Exhibits A, B, and C to Buyer (and, in the case of   Railcar Types added to Exhibits A, B, or C after the Effective Date, a copy will be   promptly provided to Buyer after such Railcar Type is added to the applicable   Exhibit).  Seller may reasonably modify the Seller Specification from time to time   during Term, which updates to the Seller Specification shall be identifiable by   revision date and version number and copies of which will be made available to   Buyer upon Buyer’s written request.  Notwithstanding the foregoing, at least sixty   (60) days prior to implementation, Seller shall notify Buyer in writing and provide   a copy of any updated Seller Specification that would reasonably be considered a   significant or material change to such Seller Specification, e.g., structural changes   to the Railcar Type, changes in Component manufacturer, make or model, and   changes to safety systems.    5. RAILCAR PRICING.      5.1. Pricing for Railcars Listed on Exhibit A.         5.1.1. Buyer’s Estimated Base Sales Price and Seller’s Order Confirmation   Price for Railcars listed on Exhibit A.  The “Buyer’s Estimated Base   Sales Price” for Railcars listed on Exhibit A shall be calculated by     

 

4       CH\2041570.2   [*****].  “Seller’s Order Confirmation Price” for Railcars listed on   Exhibit A shall equal [*****]2.         5.1.2. Invoice Price for Railcars on Exhibit A.  Seller’s “Invoice Price” for a   Railcar listed on Exhibit A shall be [*****].      5.1.3. [*****]      5.2. Pricing for Railcars Listed on Exhibits B and C.        5.2.1. Buyer’s Price for Railcars Listed on Exhibits B and C.  “Seller’s Order   Confirmation Price” for Railcars listed on Exhibits B or C shall be   [*****].          5.2.2. [*****].        5.2.3. Invoice Prices for Railcars on Exhibits B and C.  The “Invoice Price”   for a Railcar listed on Exhibits B or C shall be equal to [*****].      5.2.4. [*****].   5.2.5. [*****]   5.3. Pricing Examples.  The Parties agree that the pricing examples dated as of the   Effective Date and initialed by the Parties reflect the methodology by which   calculations shall be made for Railcar pricing pursuant to Sections 5 and 6   hereunder.   5.4. Review of Margin Schedule.  During the period of January 1, 2017 through   January 31, 2017, either Party may deliver a written notice (a “Review Notice”)   to the other Party requesting a meeting if it believes that the pricing in the   Margin Schedule is not reflective of then-current market pricing.  Upon the other   Party’s receipt of the Review Notice, the Parties shall (a) schedule a meeting to   occur no later than ten (10) business days after the date of such notice, and (b)   work in good faith to agree on a revised Margin Schedule reflective of then-   current market pricing, with the understanding that such revised pricing should   reflect an appropriate discount to the then-current pricing that Seller offers to its   best customers.  If, within thirty (30) days of the date of the Review Notice, the   Parties have not agreed (a) on a revised Margin Schedule or (b) that the Margin   Schedule does not need to be revised, then either Party may, at its sole option,   give irrevocable written notice of its intention to terminate the Agreement (an   “Intent to Terminate Notice”).  The Agreement shall automatically terminate   thirty (30) days after the date of such notice, except that the Parties’ obligations                                                      2 [*****] Certain information on this page has been omitted and filed separately with the Commission.  Confidential   treatment has been requested with respect to the omitted portions.     

 

5       CH\2041570.2   shall survive with respect to (x) all Scheduled Cars with Allocated Production   Slots scheduled to Deliver on or before December 31, 2017, and (y) all   Unscheduled Cars for which Buyer had submitted an Order as of the date of the   Intent to Terminate Notice, unless the Party receiving such Intent to Terminate   Notice agrees in writing before the effective date of such termination to revise   the Margin Schedule as follows:     5.4.1. If Buyer is the recipient of the Intent to Terminate Notice, Buyer must agree   in writing to increase each of the Margins set forth in the Margin Schedule   by [*****]3 for all tank cars on Exhibit A ordered as (A) Scheduled Cars   with Allocated Production Slots scheduled to Deliver on or after January 1,   2018, and (B) Unscheduled Cars for which the date of the applicable Order is   on or after the effective date of such increase of the Margins; or     5.4.2. If Seller is the recipient of the Intent to Terminate Notice, Seller must agree   in writing to decrease each of the Margins set forth in the Margin Schedule   by [*****] for all tank cars on Exhibit A ordered as (A) Scheduled Cars with   Allocated Production Slots scheduled to Deliver on or after January 1, 2018,   and (B) Unscheduled Cars for which the date of the applicable Order is on or   after the effective date of such decrease of the Margins; or   5.4.3. Irrespective of which Party is the recipient of the Intent to Terminate Notice,   the Parties mutually agree in writing to revise the Margin Schedule.      5.4.4. For clarity and by means of example only, if one of the Margins was equal to   twenty percent (20%) before Seller’s receipt of an Intent to Terminate   Notice, and Seller agreed to decrease the Margins by [*****] pursuant to   Section 5.4.2 above, the resulting Margin in this example would be [*****].    Similarly, if Buyer received an Intent to Terminate Notice, and Buyer agreed   to increase the Margins by [*****] pursuant to Section 5.4.1 above, the   resulting Margin in this example would be [*****].      6. SELLER’S STANDARD MANUFACTURING COST.        6.1. Except as otherwise expressly provided herein, all calculations of Seller’s   Standard Manufacturing Cost (as defined below) shall conform to and be made   using Seller’s Cost Accounting Policy and Procedure, dated and current as of the   Effective Date and initialed by the Parties (“Seller’s Costing Policy”).        6.1.1. Seller may modify Seller’s Costing Policy to the extent necessary to comply   with any changes in U.S. generally accepted accounting procedures (GAAP),   international financial reporting standards (IFRS) or other applicable   accounting regulatory mandates.                                                        3 [*****] Certain information on this page has been omitted and filed separately with the Commission.  Confidential   treatment has been requested with respect to the omitted portions.     

 

6       CH\2041570.2      6.1.2. [*****]4.         6.1.3. Following any modifications to Seller’s Costing Policy pursuant to Section   6.1.1, [*****], Seller shall promptly provide an updated copy (which shall   indicate the date of most recent revision) of Seller’s Costing Policy to Buyer,   which shall be initialed by the Parties and replace the prior version of   Seller’s Costing Policy as of the date of such revision without further action   of the Parties.        6.1.4. Notwithstanding anything to the contrary contained in Seller’s Costing   Policy, in the event of any conflicts between this Agreement and the Seller’s   Costing Policy, the terms of this Agreement shall control.        6.2. “Seller’s Standard Manufacturing Cost” means, with respect to any Railcar, an   amount equal to [*****] for such Railcar.     6.3. [*****].  “Components” means, for all Railcars, wheels, axles, sideframes,   bolsters, couplers, draft gear, air brake equipment, bearings and yokes and, as   applicable for certain Railcar Types, heads, nozzles, valves, fittings, gates,   hatches and doors.  [*****].      7. THIRD PARTY REVIEW.  Seller’s compliance with Sections 5 and 6 of this   Agreement is subject to Third Party review (“Third Party Review”), and the terms and   conditions of such Third Party Review are set forth on Exhibit G attached hereto.         8. [*****].       9. ORDERS.      9.1. Order Quantities.     9.1.1. “Order Year” means from March 14, 2016 through March 13, 2017 for the   first Order Year, and thereafter each following period of twelve (12)   consecutive months.     9.1.2. Buyer shall place orders for tank cars from Exhibit A that will be scheduled   to deliver at the rate of 150 tank cars per month between the months of   August 2016 through December 2019, inclusive (the “Monthly Order   Quantity”) for a total of 6,150 tank cars (“Scheduled Cars”).                                                        4 [*****] Certain information on this page has been omitted and filed separately with the Commission.  Confidential   treatment has been requested with respect to the omitted portions.     

 

7       CH\2041570.2   9.1.3. During each Order Year, Buyer will order 700 Railcars, which can be a mix   of either tank cars or freight cars from Exhibits A, B, and C for a total of   2,800 Railcars (“Unscheduled Cars”).        9.2. Production Slot Allocation for Scheduled Cars.  Seller shall schedule   [*****]5production slots in each month for the months of August 2016 through   December 2019, inclusive, for Scheduled Cars (“Allocated Production Slots”).    Notwithstanding the foregoing or anything to the contrary contained in this   Agreement, Seller will have no obligation to schedule more than [*****]   Allocated Production Slots in any one month during the Term.  For the avoidance   of doubt, accepted Orders for Unscheduled Cars are not eligible for Allocated   Production Slots and shall not impact the scheduling or Delivery of Scheduled   Cars in accordance with Section 9.6.1.      9.3. Unscheduled Cars.  Buyer’s Order(s) accepted by Seller’s Order Confirmation   for Unscheduled Cars will be placed in the next available production slot in   Seller’s then current backlog.  Buyer’s obligation to order the [*****] per Order   Year is firm and the duration of Seller’s railcar backlog and the effect such   backlog has on Delivery of Unscheduled Cars shall not permit Buyer to avoid   placing its required Order per Order Year for Unscheduled Cars.  [*****].      9.4. Monthly Price Lists; Pricing Proposals.  At the beginning of each Order Year,   Seller and Buyer shall mutually agree to a list totaling [*****] Railcars from   Exhibits A, B and C for which Seller shall provide Buyer with monthly updates,   as to Exhibit A Railcars, to Buyer’s Estimated Base Sales Price(s), and as to   Exhibit B and C Railcars, to the [*****] for such Railcars under then-current   market conditions, during the Order Year (the “Monthly Price List”).  In the event   a Railcar is not listed on the Monthly Price List, upon Buyer’s written request,   Seller shall provide Buyer with a written pricing proposal for the requested   Railcars within ten (10) business days following such request, which pricing   proposal shall be consistent with the terms of this Agreement.      9.5. Order Form.  Each order submitted by Buyer shall be in the form set forth on   Exhibit E attached hereto and shall be subject to the terms and conditions of this   Agreement (“Order”).  Each Order shall specify (i) the Railcar Type; (ii) the   quantity of Railcars for each Railcar Type; (iii) any Alternates for the Railcars   ordered; (iv) any new Buyer-Supplied Components that Buyer will be providing;   (v) any non-new Buyer-Supplied Components that Buyer will be providing; and   (vi) the price agreed upon by the Parties pursuant to Section 5.2.1 for the   Railcar(s) ordered.  Subject to Seller’s rights of rejection under Section 9.7, upon   Seller’s reasonable written request, Buyer will correct any Order that does not   conform to the form set forth on Exhibit E.                                                      5 [*****] Certain information on this page has been omitted and filed separately with the Commission.  Confidential   treatment has been requested with respect to the omitted portions.     

 

8       CH\2041570.2      9.6. Order Placement.        9.6.1. Orders for Scheduled Cars must be placed by Buyer [*****]6 prior to their   Allocated Production Slots by delivering each such Order per the instructions   on the Order form.  [*****].  Unless otherwise agreed by the Parties, such   Orders for Scheduled Cars shall be (i) filled in the order in which they were   placed, and (ii) Delivered by Seller within the final month of the applicable   Scheduled Car Lead Times.  Seller shall Deliver at least [*****].  If Buyer   fails to place one or more Orders for all or any portion of the Scheduled Cars   within the Scheduled Car Lead Times, Seller shall place the Order(s) for   Buyer consistent with Buyer’s default instructions for orders of Scheduled   Cars (“Default Scheduled Car Order Instructions”) set forth on Exhibit K   hereto; which Exhibit shall identify specific Railcar(s).  Subject to Section   9.7 (unless otherwise agreed by the Parties), Buyer may update the Default   Scheduled Car Order Instructions at any time by delivery of written notice to   Seller, provided each such update identifies specific Railcars, in which case   Exhibit K shall be amended without further action by the Parties to include   such updated Default Scheduled Car Order Instructions in Exhibit K and   such update shall be effective for all Orders following each such update.        9.6.2. Orders for Railcars on Exhibits B and C that constitute Unscheduled Cars   (“Exhibit B and C Unscheduled Cars”) will be placed by Buyer from time to   time by delivering each such Order per the instructions on the Order form.    In accordance with the procedures set forth in Section 9.6.3, such Exhibit B   and C Unscheduled Cars shall be added to Seller’s next available production   slots and added to Buyer’s Delivery Schedule.  [*****].  If Buyer fails to   place one or more Orders for all or any portion of the Order Year   Unscheduled Cars requirement by the first day of the last month of an Order   Year, Seller shall place the Order for Buyer with Buyer’s default instructions   for orders of Unscheduled Cars (“Default Unscheduled Car Order   Instructions”) set forth on Exhibit K hereto; which Exhibit shall identify   specific Railcar(s), and unless otherwise agreed by the Parties, shall consist   of Railcar(s) from Exhibit A only.  Subject to Section 9.7 (unless otherwise   agreed by the Parties), Buyer may update the Default Unscheduled Car Order   Instructions at any time by delivery of written notice to Seller, provided each   such update identifies specific Railcar(s), in which case Exhibit K shall be   amended without further action by the Parties to include such updated   Default Unscheduled Car Order Instructions in Exhibit K and such update   shall be effective for all Orders following each such update.                                                          6 [*****] Certain information on this page has been omitted and filed separately with the Commission.  Confidential   treatment has been requested with respect to the omitted portions.     

 

9       CH\2041570.2   9.6.3. Within five (5) business days after Seller’s receipt of an Order, and provided   Seller has not rejected the Order pursuant to Section 9.7, Seller shall provide   Buyer with an order confirmation, substantially in the form of Exhibit L and   in accordance with the terms hereof, confirming (i) the Seller’s Order   Confirmation Price for Railcars on Exhibits A, B, or C and (ii) the month the   Railcars will commence Delivery (the “Seller’s Order Confirmation”).    Within ten (10) business days of Seller’s issuance of an Order Confirmation,   Seller shall add Buyer’s Order to the Buyer Delivery schedule (the “Buyer’s   Delivery Schedule”) indicating the quantity of Railcars to be Delivered each   month (the “Committed Delivery Month”), a copy of which shall be   promptly provided to Buyer.  Within sixty (60) days of the first Railcar   Delivery in a Committed Delivery Month, Seller shall update Buyer’s   Delivery Schedule to reflect the week in which such Railcar will be   Delivered (the “Committed Delivery Date”), a copy of which update shall be   promptly provided to Buyer.  Any change to Buyer’s Delivery Schedule shall   require the written agreement of both Buyer and Seller.      9.6.4. Each Order for Railcars that (i) complies with this Section 9, (ii) has been   delivered to Seller in accordance with this Section 9, and (iii) which has not   been rejected by Seller within five (5) business days of its placement   pursuant to Section 9.7, shall be deemed to have been accepted by Seller and   shall represent a firm commitment by Seller to manufacture, sell, and   Deliver, and for Buyer to purchase and take Delivery of, the Railcars   specified in such Order in accordance herewith, regardless of whether Seller   has complied with its obligation to return a signed Order Confirmation to   Buyer in the time specified under Section 9.6.3.      9.6.5. Except to the extent the Parties otherwise mutually agree in a writing signed   by an officer of each Party, if any term or condition in Buyer’s Order,   Seller’s Order Confirmation, or other documentation by or from either Party   relating to the subject matter of the Order or of this Agreement conflicts with   or adds to or supplements a term or condition of this Agreement, the terms or   conditions of this Agreement shall control and the conflicting, additional or   supplemental term or condition, as the case may be, shall be without force or   effect with respect to such subject matter or Order.      9.7. Seller Order Rejection.  In the event that Seller does not have a production line   operating to produce Unscheduled Railcars on Exhibits B or C ordered by Buyer,   Seller shall notify Buyer within five (5) business days following receipt of such   Order that it cannot manufacture such Railcars, in which case Buyer shall place its   Order for different Railcars to replace such Railcars that Seller cannot     

 

10       CH\2041570.2   manufacture.  Notwithstanding anything to the contrary in this Agreement, Seller   shall ensure that, during the Term of this Agreement, [*****]7.        9.8. Change Order.  Once a Seller’s Order Confirmation has been issued to Buyer,   Buyer may request in writing a change in an Order specifying the particular   Railcars that are subject to Buyer’s request and the requested change.  Within ten   (10) business days following receipt of such request, Seller shall provide Buyer   with a Change Order quote (“Change Order Quote”) comprised of (i) any change   to the Buyer’s Delivery Schedule and (ii) any price adjustment for the Change   Order Request.  If Buyer accepts Seller’s Change Order Quote, Buyer shall issue   a confirming change Order (“Change Order”) to Seller within five (5) business   days after receipt of the Change Order Quote.  If Seller does not receive a timely   Change Order from Buyer accepting Seller’s Change Order Quote, Buyer’s Order   will not be modified, and the affected Railcars shall be built in accordance with   the original Specification and subject to the original Seller Order Confirmation   Price.       9.9. Regulation-Mandated Changes.  Seller will promptly notify Buyer of any   changes or additions to the Seller Specification mandated by changes in the   Regulations and provide to Buyer a copy of any such updated or additional Seller   Specification.  Any such changes or additions to the Specification that arise   between the date of the Seller’s Order Confirmation for a Railcar and the date of   Delivery for such Railcar shall be treated as a Change Order in accordance with   the procedures set forth in Section 9.8.        9.10. Lead Time Estimates.  Upon Buyer’s reasonable written request, Seller shall   provide Buyer with its then-current estimate of the next available delivery dates   for a Railcar Type as of the date of such request.      10. DELIVERY AND SHIPMENT.       10.1. Delivery and Title.     10.1.1. Unless otherwise agreed to in writing and signed by both Seller and Buyer,   “Delivery” (including the terms “Deliver” and “Delivered”) of the Railcars   shall be defined as (i) in the case of Railcars manufactured in the United   States, actual delivery of such Railcars, F.O.B. Seller’s plant or (ii) in the   case of Railcars manufactured in Mexico, actual delivery of such Railcars,   F.O.B. site on the United States side of the border at a site to be mutually   agreed between Buyer and Seller or, if no agreement has been reached by the   time such Railcar is ready for Delivery, at a site on the United States side of   the border determined by Seller.  Unless otherwise agreed to in writing and                                                      7 [*****] Certain information on this page has been omitted and filed separately with the Commission.  Confidential   treatment has been requested with respect to the omitted portions.     

 

11       CH\2041570.2   signed by both Seller and Buyer, Buyer agrees to Delivery of all or any   number of the Railcars as they are accepted pursuant to Section 11.1.     10.1.2. Subject to Section 10.1.3 below, exclusive ownership, rights of possession   and control, and risk of loss to each Railcar manufactured by Seller, whether   in the United States or Mexico, will pass to Buyer at the time of Delivery of   such Railcar.     10.1.3. Unless otherwise agreed to in writing and signed by both Seller and Buyer,   with respect to Railcars manufactured in Mexico, the acceptance of such   Railcars pursuant to Section 11.1 (i) represents Buyer’s authorization for   Seller to ship such Railcars to Buyer for Delivery, and (ii) shall not transfer   title or risk of loss of such Railcars until they have been Delivered by Seller   to Buyer at the F.O.B. site on the United States side of the border set forth in   Section 10.1.1 above.      10.2. After Delivery of a Railcar to Buyer as provided in Section 10.1, at Buyer’s   written request, Seller will ship such finished Railcar to Buyer or Buyer’s   customer at the place designated by Buyer to Seller and any resulting freight   charges shall be for Buyer’s account.  Such freight charges may appear as a line   item on Seller’s invoice for the Railcars if Seller pays such freight charges for   Buyer’s account.      10.3. [*****]8.      10.4. Force Majeure Events.        10.4.1. Seller shall not be liable for any delay or failure to perform in whole or in part   caused by “Force Majeure Events” which adversely impact the performance   of Seller’s obligations regardless of when occurring, including, but not   limited to, restrictions or Regulations imposed by the federal or any state   government or any subdivision or agency thereof or by acts of God; acts of   Buyer, its officers, directors, employees, agents or contractors, including, but   not limited to, Buyer’s failure to provide in a timely manner any parts,   Components, equipment or labor, including plans, drawings or engineers,   which it has agreed to supply; war, preparation for war or the acts or   interventions of naval or military executives or other agencies of   government; acts of terrorists; blockade, sabotage, vandalism, malicious   mischief, bomb scares, insurrection or threats thereof; rain that requires a   shutdown of a substantial portion of Seller’s facility where the Railcars are   being manufactured and/or the painting/coating area of such facility prior to   12:00 noon (local time) on a regularly scheduled work day; landslides,                                                      8 [*****] Certain information on this page has been omitted and filed separately with the Commission.  Confidential   treatment has been requested with respect to the omitted portions.     

 

12       CH\2041570.2   hurricanes, earthquakes or other natural calamity; delays of subcontractors or   of carriers by land, sea or air; delays due to changes in drawings or   Specification; collisions or fires, floods, strikes, work stoppages, shortage of   labor, lockouts or other industrial disturbances, accidents, casualties,   shortages or late delivery of supplies (including, without limitation, fuel   supplies) or raw materials (including, without limitation, steel) from usual   sources at customary pricing, or other causes beyond Seller’s reasonable   control.      10.4.2. In the event of any Force Majeure Event, the Parties agree the date of   Delivery or performance shall be extended for a period equal to the time lost   by reason of the delay; provided, however, that if the period of delay exceeds   one hundred eighty (180) days from the original Committed Delivery Date,   Buyer may cancel the Delivery of such Railcar subject to the delay due to the   Force Majeure Event.  Any cancelled Railcar shall be treated as having been   validly ordered for the purposes of Buyer’s obligations hereunder with   respect to the Base Order Quantity required under Section 2 and the   applicable Monthly Order Quantity required under Section 9.1.  If delivery   of any items necessary for the Delivery of such Railcars is delayed by Buyer   for more than thirty (30) days, Seller may adjust the Invoice Price payable   hereunder to reflect the direct damages attributable to such delay (e.g.,   increases in cost of supplies, shipping and the like), but not to include   indirect or consequential damages.  Nothing hereunder shall require Seller to   arrange for shipment and acceptance of any required materials in advance of   Seller’s actual needs.  In the event that the occurrence of a Force Majeure   Event affects a Party’s performance of its obligations hereunder for more   than 240 consecutive days, the other Party may terminate this Agreement   thereafter upon 30 days advance written notice.        11. QUALITY OF RAILCARS.       11.1. Inspection and Acceptance.  In the case of Railcars, Seller shall give Buyer   reasonable access to Seller’s manufacturing facilities to inspect the Railcars   during construction.  Such inspections shall be so conducted as to not interfere   unreasonably with Seller’s operations.  Acceptance or rejection of a Railcar shall   be made by Buyer before shipment of the Railcars manufactured in Mexico and   before Delivery of Railcars manufactured in the United States.  In the event Buyer   chooses to inspect the Railcars, upon completion of such inspection, Buyer shall   execute a certificate of acceptance covering all Railcars found to be completed in   accordance with the Specification and shall deliver the executed certificates of   acceptance to Seller (each, a “Certificate of Acceptance”).  Each Certificate of   Acceptance, with respect to Railcars covered thereby, shall indicate that, based   upon such inspection, such Railcars conform in workmanship, material and   construction, and in all other respects, to the applicable Specification and the   requirements and provisions of the applicable Order.  If Buyer, upon receiving   notice of when the Railcars will be ready for inspection and provided that such     

 

13       CH\2041570.2   Railcars are available for inspection, chooses not to have an inspector present   within three (3) business days after the date that the notice states that the Railcars   shall be ready for inspection or Buyer’s inspector fails to inspect the Railcars   within three (3) business days after the date that the notice states the Railcars will   be ready for inspection, Buyer shall be deemed to have accepted the applicable   Railcars at the close of business on the day that is three (3) business days after the   date that such Railcars were ready for inspection and Seller will execute, on   behalf of Buyer, a Certificate of Acceptance dated as of the day that is three (3)   business days after the date that such Railcars were ready for inspection.    Notwithstanding the foregoing, Seller may ship Railcars at any time upon Buyer’s   notification to Seller that it will not inspect Railcars for which Seller has provided   notice that Railcars are available for inspection.  The execution of a Certificate of   Acceptance shall not relieve the Seller of any of its obligations under the   Agreement nor shall it constitute a waiver by the Buyer with respect to any defect   or deficiency of workmanship, materials, construction or other deviation from the   terms and conditions of this Agreement.  Once a Certificate of Acceptance with   respect to a Railcar has been executed, Buyer shall have no rights of inspection   under this Section 11.1, nor any rights of rejection and cancellation under Section   11.2 with respect to such Railcar.     11.2. [*****]9.         11.3. Premises Liability Indemnification.  BUYER AGREES TO DEFEND, HOLD   HARMLESS AND INDEMNIFY SELLER AND ITS AFFILIATES,   SUBSIDIARIES, RELATED ENTITIES, OFFICERS, DIRECTORS,   SHAREHOLDERS, AGENTS AND EMPLOYEES (COLLECTIVELY   REFERRED TO AS THE “SELLER INDEMNITEES”), FROM AND   AGAINST ANY AND ALL CAUSES OF ACTION, SUITS, DEBTS,   CLAIMS, LIABILITIES, LOSSES, BODILY INJURIES OR DEATH,   DAMAGE TO REAL OR PERSONAL PROPERTY (INCLUDING THE   LOSS OR USE THEREOF), JUDGMENTS, COSTS, INCLUDING, BUT   NOT LIMITED TO, ACTUAL, INCIDENTAL AND COVER DAMAGES,   ATTORNEYS’ FEES, COURT COSTS AND EXPENSES OF WHATEVER   NATURE OR KIND, IN LAW OR IN EQUITY, INCURRED IN THE   DEFENSE OF THE SELLER INDEMNITEES OR OTHERWISE, TO THE   EXTENT ARISING OUT OF, OR RESULTING FROM ANY ACT,   ERROR, OMISSION, NEGLIGENCE OR MISCONDUCT OF BUYER,   BUYER’S EMPLOYEES, AGENTS (OTHER THAN ANY AGENT OF   BUYER WHO IS EMPLOYED BY SELLER) OR SUBCONTRACTORS,   OR ANY EMPLOYEE OF BUYER’S AGENT (OTHER THAN ANY   AGENT OF BUYER WHO IS EMPLOYED BY SELLER) OR   SUBCONTRACTOR WHILE ON SELLER’S PROPERTY.                                                      9 [*****] Certain information on this page has been omitted and filed separately with the Commission.  Confidential   treatment has been requested with respect to the omitted portions.     

 

14       CH\2041570.2      12. PAYMENT AND CLOSING.      12.1. Payment of Purchase Price and Closing of Sale.  On or before ten (10) business   days following Buyer’s receipt of (i) the shipping report for a Railcar, including   the lightweight of each Railcar shipped and each Railcar’s assigned number, (ii) a   Certificate of Acceptance executed by Buyer’s inspector, or the acceptance of any   such Railcar has been deemed pursuant to Section 11.1 hereof, (iii) Seller’s   invoice for such Railcar(s) with the Invoice Price broken down to detail the   components thereof, if applicable, and substantially in the form attached hereto as   Exhibit M hereof, and (iv) Seller’s executed Bill of Sale substantially in the form   attached hereto as Exhibit H, Buyer shall pay the Invoice Price for each Railcar   manufactured and Delivered by Seller and accepted by Buyer via wire transfer to   Seller (pursuant to such wire transfer instructions as Seller shall provide to Buyer   in advance of the due date for such amounts).        12.2. Taxes.  Buyer is solely responsible for all international, federal, state, or local   VAT, GST, sales, use, or other taxes, tariffs, duties, or charges imposed by any   governmental authority or agency, foreign or domestic, upon any Railcar   purchased and sold hereunder or upon the manufacture, sale, transportation, use,   or Delivery thereof (collectively, “Taxes”); provided, however, that Taxes shall   not include any Seller property taxes or taxes based on Seller’s income.  While it   is the intent of the Parties that Seller’s invoice for Railcars will include a line item   for Taxes, in the event an amount for applicable Taxes is not included in Seller’s   invoice for Buyer’s account, Buyer shall remain solely responsible for the   payment of such Taxes.  For the avoidance of doubt, no Taxes shall be included in   Seller’s Standard Manufacturing Cost for such Railcar.  Seller shall provide   receipts to Buyer evidencing Seller’s payment of any such Taxes.       12.3. Late Payments.  Other than with respect to amounts disputed up to a maximum   of $[*****]10 of unpaid disputed amounts, if any payment is not received by a   Party on the due date for such payment, and such failure continues for five (5)   days after such due date, such Party shall charge the other Party interest on any   unpaid balance at the prime rate per annum in effect on such due date at Bank of   America, Illinois, plus [*****]11 percent ([*****]%) or the highest rate permitted   by law, whichever is lower, from the date such payment was due through and   including the date on which actual payment in full is made by such other Party.                                                           10 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.   11 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

15       CH\2041570.2   13. MANUFACTURING WARRANTIES AND DISCLAIMERS; IP INDEMNITY       13.1. Manufacturing Warranties.      13.1.1. Seller warrants solely to Buyer that the assembly, construction and   manufacture of the Railcars by Seller, Seller’s employees and Seller’s   subcontractors will be in accordance with the Specification and Regulations   (as defined in Section 13.1.8) for a period of [*****] after Delivery of the   applicable Railcars, and that the material and workmanship of the Railcars   furnished by Seller, Seller’s employees and Seller’s subcontractors will be   free from defects under normal use and service for the [*****] warranty   period.  This warranty shall not apply to, and Seller shall not be responsible   for, any failure of any Railcar purchased hereunder which has been subjected   to misuse, negligence, alteration, accident, misloading, mishandling,   improper or deficient maintenance, or physical abuse.  Further, this warranty   by Seller shall not apply to, and Seller shall not be responsible for, the   deterioration of any Railcar purchased hereunder which results from normal   wear and tear during the [*****] warranty period.  Seller’s only obligation to   Buyer under this Section 13.1.1 is limited to promptly repairing or replacing,   at Seller’s exclusive option, the material and workmanship of the Railcar that   is not in conformity with this warranty.  Transportation charges and charges   associated with the removal of any commodity shall be prepaid by Buyer.    Seller shall determine, in its sole discretion, the place where any defective   Railcar will be replaced or repaired.  Seller shall not be required to repair or   replace any defective Railcar, however, unless Buyer first provides the   defective Railcar to Seller for an examination by Seller within sixty (60)   days of Buyer’s written notice of a potential defect and Seller’s examination   of the part or parts confirms the existence of a warranted defect.  [*****].          13.1.2. With respect to interior and exterior primers, paints, coatings, linings, and/or   sealants (the “Coatings”), Seller warrants that it will apply the Coatings   selected by Buyer in accordance with the Coating manufacturer’s   specifications and recommendations, and, except as set forth in this Section   13.1.2, Seller makes no other warranty, express or implied, with respect to   the Coatings or the adequacy of such Coating manufacturer’s specifications   and recommendations.  Seller may offer various choices of Coatings at   various prices and of various qualities.  The Coatings actually applied by   Seller shall be chosen by Buyer at Buyer’s sole discretion, subject to Seller’s   agreement to apply such Coatings, based on, but not limited to, Seller’s   ability to obtain and apply such Coatings.  Buyer’s choice of Coatings is   made at Buyer’s sole risk and, except as set forth below in this Section   13.1.2, Seller makes no warranty, express or implied, regarding the   suitability or effectiveness of any Coatings.  With respect to the Coatings,   Seller’s sole obligation under this Section 13.1.2 is limited to repair or   replacement, at the election of Seller, at Seller’s railcar repair shop or at a   shop selected by Seller, of the Coatings installed by Seller in any Railcar that     

 

16       CH\2041570.2   shall, within [*****]12 after Delivery be returned to Seller with   transportation charges and charges associated with the removal of any   commodity prepaid by Buyer; provided, however, that Buyer provides such   Railcar for an examination by Seller within sixty (60) days of written   notification by Buyer of a potential defective installation of Coatings and   such an examination confirms that the Coatings were defectively installed by   Seller.  [*****].       13.1.3. In the event that Buyer sells, leases, or otherwise assigns the Railcars, any   such transaction shall not otherwise modify or terminate Seller’s warranty.       13.1.4. In no event and under no circumstances shall Seller ever be liable to Buyer   for a breach of the warranty set forth herein in any amount greater than   Seller’s actual cost of repairing or replacing the defective Railcar that Buyer   purchased from Seller.  Under no circumstances shall Seller ever have   liability to any Third Party who asserts any claim by or through Buyer   alleging a breach of the warranty expressly set forth herein, which Seller   makes solely and exclusively to Buyer.  Any repair or replacement by Seller   pursuant to this warranty will not serve to extend the warranty in any way   beyond [*****] from the date the Railcar is Delivered to Buyer.        13.1.5. SELLER MAKES NO EXPRESS OR IMPLIED WARRANTY THAT ANY   PARTS, MATERIAL, EQUIPMENT OR COMPONENTS PURCHASED   FROM THIRD PARTY SUPPLIERS OR MANUFACTURERS   (HEREINAFTER, EACH A “SUPPLIER OR MANUFACTURER”) AND   INSTALLED IN OR ON THE RAILCARS ARE FREE FROM DEFECTS.    ANY PARTS, MATERIAL, EQUIPMENT OR COMPONENTS   PURCHASED FROM SUPPLIERS OR MANUFACTURERS AND   INSTALLED IN OR ON THE RAILCARS WILL BE COVERED UNDER   THE WARRANTY GIVEN BY THE SPECIFIC SUPPLIER OR   MANUFACTURER AND THE TERMS SET FORTH THEREIN. SELLER   AGREES TO COOPERATE WITH BUYER TO ENFORCE ANY SUCH   SUPPLIER OR MANUFACTURER WARRANTIES, BUT WILL NOT   FILE ANY LAWSUIT OR INSTITUTE OTHER LEGAL PROCEEDING   ON BUYER’S BEHALF AND/OR INCUR OTHER LEGAL FEES, COSTS   OR EXPENSES.  TO THE EXTENT EXPRESSLY PERMITTED BY ANY   SUCH SUPPLIER OR MANUFACTURER, SELLER AGREES TO   TRANSFER AND ASSIGN TO BUYER, WITHOUT WARRANTY OR   ASSUMPTION BY SELLER WITH RESPECT THEREOF, SUCH   SUPPLIER’S OR MANUFACTURER’S WARRANTIES COVERING   PARTS, MATERIAL, EQUIPMENT OR COMPONENTS FURNISHED   BY SUCH SUPPLIER OR MANUFACTURER.  AS TO SELLER’S                                                      12 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

17       CH\2041570.2   INSTALLATION OF PARTS, COMPONENTS OR EQUIPMENT   MANUFACTURED BY SUPPLIERS OR MANUFACTURERS, IF SUCH   SUPPLIER OR MANUFACTURER HAS A REPRESENTATIVE AT THE   JOB SITE DURING SUCH INSTALLATION, AND IF THE   INSTALLATION IS COMPLETED TO THE SATISFACTION OF SUCH   REPRESENTATIVE, IT SHALL BE PRESUMED, SUBJECT TO   REBUTTAL BY BUYER, THAT SELLER’S INSTALLATION HAS   BEEN COMPLETED BY SELLER IN ACCORDANCE WITH SUCH   SUPPLIER’S OR MANUFACTURER’S RECOMMENDATIONS IN A   GOOD AND WORKMANLIKE MANNER AND IN ACCORDANCE   WITH THE TERMS OF THIS AGREEMENT.        13.1.6. SELLER DOES NOT WARRANT ANY COMPONENTS, EQUIPMENT,   ENGINEERING, DESIGNS, PLANS OR WORKMANSHIP SPECIFIED   OR FURNISHED BY BUYER, BUYER’S SUBCONTRACTORS,   EMPLOYEES, ARCHITECTS OR ENGINEERS, OR ANY LABOR   PERFORMED BY OTHERS AT THE DIRECTION OR REQUEST OF   BUYER OR BUYER’S REPRESENTATIVE(S) AND SELLER   SPECIFICALLY DISCLAIMS ANY AND ALL WARRANTIES,   EXPRESS OR IMPLIED, IN CONNECTION THEREWITH.       13.1.7. THE WARRANTIES STATED HEREIN ARE EXCLUSIVE AND ARE   MADE BY SELLER SOLELY TO BUYER EXPRESSLY IN LIEU OF   ANY AND ALL OTHER WARRANTIES AND REMEDIES: (1)   EXPRESS OR IMPLIED; (2) WRITTEN OR ORAL; (3) AT LAW, IN   EQUITY OR UNDER CONTRACT, INCLUDING WITHOUT   LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY   OR FITNESS FOR A PARTICULAR PURPOSE; AND (4)   NOTWITHSTANDING ANY COURSE OF DEALING BETWEEN THE   PARTIES OR CUSTOM AND USAGE IN THE TRADE TO THE   CONTRARY.  OTHER THAN AS EXPRESSLY SET FORTH IN   SECTION 13.1.1, SELLER SHALL HAVE NO LIABILITY TO BUYER   AND BUYER SHALL NOT MAKE ANY CLAIM AGAINST SELLER OR   RECOVER ANY AMOUNT WHATSOEVER FROM SELLER FOR ANY   INDIRECT, SPECIAL, CONSEQUENTIAL, INCIDENTAL, COVER, OR   PUNITIVE DAMAGES THAT ARISE OUT OF OR RESULT FROM ANY   BREACH BY SELLER OF THE WARRANTIES EXPRESSLY SET   FORTH IN THIS AGREEMENT.       13.1.8. For purposes of this Agreement, “Regulations” shall mean all industry   standards for new railcar equipment, including without limitation, all rules,   statutes, regulations, directives and requirements of the United States of   America (including without limitation those of the United States Department   of Transportation) and the specifications and standards of the Association of   American Railroads applicable to new railroad equipment, in each case as   may be in effect on the date of construction of the applicable Railcars.      

 

18       CH\2041570.2   13.1.9. With respect to any material and workmanship of a Railcar that is not in   conformity with Seller’s warranty under Section 13.1.1, Seller shall (i)   develop and implement a corrective action plan, and (ii) deliver to Buyer’s   engineering or quality group and be reasonably available to discuss the   specifics of such corrective action plan, in each case within thirty (30) days   of Seller’s receipt of written notice of a warranty claim from Buyer.   13.2. Intellectual Property Infringement.        13.2.1. Subject to Section 13.2.2 below, Seller shall defend any suit or proceeding   brought against Buyer based on a claim that the Railcars, or any product,   accessory, part, component, or attachment thereof, furnished by Seller   under this Agreement, constitute an infringement of any patent of the   United States; provided that Seller is notified promptly, in writing, and is   given authority, information and assistance, at Seller’s expense, for the   defense of same.       13.2.2. Seller’s obligation under Section 13.2.1 shall not cover or apply to (i) any   product, accessory, part, component, or attachment that is not   manufactured by Seller (including any Buyer-Supplied Component),   except to the extent, and only to the extent, that the manufacturer of any   such item provides an indemnity against patent infringement to Seller and   (ii) the Railcars, or any part thereof, manufactured or supplied to Buyer's   design; and, as to such Railcars, or any part thereof, Seller assumes no   liability whatsoever for patent infringement.        13.2.3. Subject to Section 13.2.4 below, Buyer shall defend any suit or proceeding   brought against Seller based on a claim that Railcars, or any product,   accessory, part, component or attachment (including Buyer-Supplied   Components), manufactured or supplied by Seller to Buyer’s designs,   constitute an infringement of any patent of the United States; provided that   Buyer is notified promptly, in writing, and is given authority, information   and assistance, at Buyer’s expense, for the defense of same.      13.2.4. Buyer’s obligation under Section 13.2.3 shall not cover or apply to (i) any   product, accessory, part, component, or attachment that is not   manufactured by Buyer or (ii) a Buyer-Supplied Component, except to the   extent, and only to the extent, that the manufacturer or supplier of any   such item provides an indemnity against patent infringement to Buyer.        13.2.5. Seller shall pay all damages and costs awarded against Buyer in an   infringement claim covered under Sections 13.2.1 and 13.2.2.  In case the   Railcars, or any part thereof covered under Section 13.2.1, are involved in   such a suit, and are held to constitute infringement, and the use of the   Railcars, or any part thereof covered under Section 13.2.1, is enjoined,   Seller shall, at its own expense, and at its option, either procure for Buyer     

 

19       CH\2041570.2   the right to continue using said Railcar, replace same with non-infringing   equipment, modify said Railcar so that it becomes non-infringing, or   refund the Invoice Price of said Railcar.        13.2.6. Buyer shall pay all damages and costs awarded against Seller in an   infringement claim covered under Sections 13.2.3 and 13.2.4.  In case the   Railcars, or any part thereof covered under Section 13.2.3, are involved in   such a suit, and are held to constitute infringement, and the use of the   Railcars, or any part thereof covered under Section 13.2.3, is enjoined,   Buyer shall, at its own expense, and at its option, either procure for itself   the right to continue using said Railcar or part thereof, replace same with   non-infringing equipment or modify said Railcar or part thereof so that it   becomes non-infringing.        13.2.7. This Section 13.2 states the sole and entire liability of Seller and/or Buyer,   as applicable, for patent infringement by the Railcars, or any part thereof.    In case of any claim for defense and indemnity under this Section 13.2,   Seller and/or Buyer, as applicable, shall undertake to conduct any   proceedings which Seller or Buyer, as applicable, deems necessary to   defend the other Party in respect of such matter.  The indemnified Party   shall have the right to participate in those proceedings, at its own expense,   but control of the defense, the litigation, the negotiation, and any   settlement shall remain with the indemnifying Party.  This indemnity shall   be void if the indemnified Party fails to provide reasonable cooperation in   connection with any such defense or shall take any action without the prior   written consent of indemnifying Party that unreasonably or materially   prejudices the defense of any such matter.  In no event shall the   indemnifying Party be required to employ more than one firm of attorneys   in defense of any one matter, but nothing herein shall prevent the   indemnifying Party from doing so, at its option.       14. LIMITATION OF LIABILITY.  WITH RESPECT TO ANY BREACH OF THIS   AGREEMENT, IN NO EVENT SHALL EITHER PARTY HAVE LIABILITY TO   THE OTHER PARTY AND NEITHER PARTY SHALL MAKE ANY CLAIM   AGAINST THE OTHER OR RECOVER ANY AMOUNT WHATSOEVER FROM   THE OTHER FOR INDIRECT, CONSEQUENTIAL, SPECIAL, AND/OR PUNITIVE   DAMAGES.        15. LOCK-UP, RIGHT OF FIRST REFUSAL AND LAST LOOK.     15.1. Lock-Up.  Buyer shall not sell a Railcar for a period of at least one hundred   eighty (180) days following Delivery, provided, however, the 180-day lock-up   period shall not apply to (i) any asset-backed financing transaction for the benefit   of Buyer or any of its Affiliates, (ii) any merger, consolidation, business   combination, restructuring, reorganization, sale of all or substantially all of the   assets of Buyer, or any of its Affiliates or other transaction or series of related     

 

20       CH\2041570.2   transactions in which Buyer’s stockholders do not own or control a majority of   the outstanding voting shares of the continuing or surviving entity immediately   after such transaction(s), (iii) any sale of a Railcar to one of Buyer’s Affiliates,   (iv) any lease of a Railcar by Buyer to one of Buyer’s customers that includes a   purchase option exercisable by such customer after such lock-up period, or (v)   the sale of such Railcar to a Third Party subject to a lease with another Third   Party.      15.2. Right of First Refusal.  In the event that, during the period beginning on the   181st day following the Delivery of a Railcar purchased hereunder and ending on   the one (1) year anniversary of such Delivery (the “Option Period”), Buyer   desires to sell such Railcar to a Third Party, Buyer shall deliver to Seller a   written notice of the proposed sale (a “Sale Notice”) accompanied by a written   offer (the “Offer”) to sell such Railcar to Seller, on an “as is”, “where is” basis,   for an amount in cash equal to the Invoice Price paid by Buyer to Seller for such   Railcar pursuant to this Agreement, provided, however, no Sale Notice be   required to be delivered to Seller in connection with, and such right of first   refusal shall not apply to, (i) any asset-backed financing transaction for the   benefit of Buyer or any of its Affiliates, (ii) any merger, consolidation, business   combination, restructuring, reorganization, sale of all or substantially all of the   assets of Buyer, or any of its Affiliates or other transaction or series of related   transactions in which Buyer’s stockholders do not own or control a majority of   the outstanding voting shares of the continuing or surviving entity immediately   after such transaction(s), (iii) any sale of a Railcar to one of Buyer’s Affiliates,   (iv) any lease of a Railcar by Buyer to one of Buyer’s customers that includes a   purchase option exercisable by such customer after the lock-up period described   in Section 15.1, or (v) the sale of such Railcar to a Third Party subject to a lease   with another Third Party.  Each Sale Notice shall reasonably identify the   Railcar(s) that Buyer desires to sell to a Third Party during the Option Period but   shall not include the name of the proposed Third Party purchaser or any of the   terms or conditions of the proposed sale.  Seller may accept the Offer by   delivering written notice (an “Offer Notice”) to Buyer by no later than 5:00 p.m.,   Chicago time, on the tenth (10th) business day following the date of such Sale   Notice.  If Seller fails to timely deliver an Offer Notice to Buyer, Seller shall be   deemed to have rejected the Offer.  If Seller accepts the Offer, Seller shall close   on the purchase of such Railcar by no later than 5:00 p.m., Chicago time, on the   thirtieth (30th) day (or, if such day is not a business day, the immediately   following business day) following the date of such Offer Notice.  The purchase   price for such Railcar shall be paid in full on the closing date by wire transfer of   immediately available funds to an account specified by Buyer at least two (2)   days prior to the closing date.  In the event Seller does not accept the Offer,   Buyer may sell the Railcar that was the subject of such Sale Notice to any Third   Party purchaser following Seller’s rejection of the Offer.  If, at any time, Buyer   includes a Railcar in a “request for proposal” or other multiple-bid auction   process during the Option Period, in lieu of making the Offer otherwise required   hereby, Buyer shall provide Seller with the opportunity to participate in such     

 

21       CH\2041570.2   process and submit a bid to purchase such Railcar, in each case subject to the   terms and conditions of such process that are no less favorable to Seller in the   aggregate than the terms and conditions applicable to other participants in such   process.    15.3. [*****]13.      16. REPRESENTATIONS AND OTHER WARRANTIES OF SELLER.  Seller hereby   represents and warrants to and in favor of Buyer that:        16.1. at the time Seller Delivers each Railcar hereunder, Seller shall hold and convey   to Buyer good and marketable title to such Railcar free and clear of all   indentures, deeds of trust, mortgages, security interests, liens, claims, demands,   encumbrances, privileges, pledges, residual interests, re-marketing rights,   purchase options and other charges of every nature and kind whatsoever,    excepting (i) any such encumbrances resulting from the acts or omissions of   Buyer (or those acting under the authority of Buyer), and (ii) any rights of Seller   to a purchase money security interest applicable to such Railcars;      16.2. Seller is duly formed, validly existing and in good standing in the State of   Delaware and has all requisite limited liability company power and authority to   own, operate or lease the properties and assets now owned, operated or leased by   it and to carry on its business as currently conducted.  Seller is duly qualified or   licensed to do business as a foreign entity and is in good standing in each   jurisdiction where the character of its properties and assets owned, operated or   leased or the nature of its activities makes such qualification or license necessary,   except where the failure to be so qualified or licensed or in good standing does   not materially and adversely affect Seller’s ability to perform hereunder;      16.3. this Agreement and all certificates, documents, instruments and agreements   delivered under or in connection with this Agreement (i) have been properly   authorized by all necessary limited liability company action and (ii) do not   require the approval of any holder of units, membership interests, bonds,   debentures or other securities issued by Seller or outstanding under any   agreement, indenture or other instrument to which Seller is a party or by which   Seller or its property may be charged or affected;      16.4. Seller’s execution, delivery and performance of this Agreement and all   certificates, documents, instruments and agreements delivered by Seller under or   in connection with this Agreement, and Seller’s compliance with the terms,   conditions and provisions hereof and thereof do not, and will not, (i) constitute a   breach of any existing contractual obligation of Seller, (ii) violate any provision                                                      13 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

22       CH\2041570.2   of the certificate of formation or limited liability company agreement of Seller,   (iii) require the approval or the giving of prior notice to any Third Party or   government agency, (iv) breach or result in the breach of, constitute a default   under any of the provisions of, or result in the creation of any lien, charge,   encumbrance or security interest upon any property or assets of Seller, (v) violate   any judgment, order, injunction, decree or award of any court, administrative   agency or governmental body against, or binding upon, Seller, or (vi) constitute a   violation by Seller of any law, order or regulation applicable to Seller, in each   case so as to materially and adversely affect Seller’s ability to perform or   Buyer’s enjoyment of its rights hereunder;      16.5. this Agreement and all certificates, documents, instruments and agreements   delivered under or in connection with this Agreement, or in connection with the   consummation of the transactions contemplated hereunder, constitute legal, valid   and binding obligations of Seller, enforceable in accordance with their terms   except as enforceability may be limited by bankruptcy, insolvency,   reorganization, moratorium or other similar laws affecting the rights of creditors   generally and by general principles of equity; and      16.6. there are no legal or governmental investigations, actions or proceedings pending   or, to the knowledge of Seller, threatened in writing against Seller before any   court, administrative agency or tribunal which, if determined adversely, would,   individually or in the aggregate, materially adversely affect the transactions   contemplated by this Agreement or the ability of Seller to perform its obligations   hereunder.       17. REPRESENTATIONS AND WARRANTIES OF BUYER.  Buyer hereby represents   and warrants to and in favor of Seller that:        17.1. Buyer is duly incorporated, validly existing and in good standing in the State of   New York and has all requisite corporate power and authority to own, operate or   lease the properties and assets now owned, operated or leased by it and to carry   on its business as currently conducted.  Buyer is duly qualified or licensed to do   business as a foreign corporation and is in good standing in each jurisdiction   where the character of its properties and assets owned, operated or leased or the   nature of its activities makes such qualification or license necessary, except   where the failure to be so qualified or licensed or in good standing does not   materially and adversely affect Buyer’s ability to perform hereunder;      17.2. this Agreement and all certificates, documents, instruments and agreements   delivered under or in connection with this Agreement (i) have been properly   authorized by all necessary corporate action and (ii) do not require the approval   of any holder of shares, stocks, bonds, debentures or other securities issued by   Buyer or outstanding under any agreement, indenture or other instrument to   which Buyer is a party or by which Buyer or its property may be charged or   affected;     

 

23       CH\2041570.2      17.3. Buyer’s execution, delivery and performance of this Agreement and all   certificates, documents, instruments and agreements delivered by Buyer under or   in connection with this Agreement, and Buyer’s compliance with the terms,   conditions and provisions hereof and thereof do not, and will not, (i) constitute a   breach of any existing contractual obligation of Buyer, (ii) violate any provision   of the charter or by-laws of Buyer, (iii) require the approval or the giving of prior   notice to any Third Party or government agency, (iv) breach or result in the   breach of, constitute a default under any of the provisions of, or result in the   creation of any lien, charge, encumbrance or security interest upon any property   or assets of Buyer, (v) violate any judgment, order, injunction, decree or award   of any court, administrative agency or governmental body against, or binding   upon, Buyer, or (vi) constitute a violation by Buyer of any law, order or   regulation applicable to Buyer, in each case so as to materially and adversely   affect Buyer’s ability to perform or Seller’s enjoyment of its rights hereunder;      17.4. this Agreement and all certificates, documents, instruments and agreements   delivered under or in connection with this Agreement, or in connection with the   consummation of the transactions contemplated hereunder, constitute legal, valid   and binding obligations of Buyer, enforceable in accordance with their terms   except as enforceability may be limited by bankruptcy, insolvency,   reorganization, moratorium or other similar laws affecting the rights of creditors   generally and by general principles of equity; and        17.5. there are no legal or governmental investigations, actions, or proceedings   pending or, to the knowledge of Buyer, threatened in writing against Buyer   before any court, administrative agency or tribunal which, if determined   adversely, would, individually or in the aggregate, materially adversely affect the   transactions contemplated by this Agreement or the ability of Buyer to perform   its obligations hereunder.      18. DEFAULT.  Subject to Section 10.4 addressing Force Majeure Events, the occurrence   of any one or more of the following events shall constitute an event of default (“Event   of Default”) hereunder by a Party:        18.1. the failure of such Party to perform a material obligation hereunder; provided, that   such failure to perform is not cured by such Party within thirty (30) days after   receipt of written notice from the other Party specifying such failure to perform;        18.2. the failure by such Party to pay any amount due and payable pursuant to the terms   of this Agreement, other than amounts disputed by such Party up to a maximum   of $[*****]14 of unpaid disputed amounts; provided that such failure to pay is not                                                      14 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

24       CH\2041570.2   cured by such Party within [*****] after receipt of written notice from the other   Party specifying such failure to pay;      18.3. the (i) filing by such Party of a voluntary petition in bankruptcy, (ii) adjudication   of such Party as a bankrupt or insolvent, (iii) filing by such Party of any petition   seeking any reorganization, arrangement, composition, readjustment, liquidation,   dissolution, or similar relief for itself under the federal bankruptcy laws, (iv)   consent or acquiescence of such Party to the appointment of a trustee, receiver,   conservator, or liquidator of such Party for all, or any substantial portion of such   Party’s property or assets, or (v) filing of any involuntary petition in bankruptcy   against either Party (provided that any such filing is not withdrawn, vacated,   removed, discharged, or stayed within sixty (60) days thereafter);      18.4. the admission in writing by such Party of its inability to pay its debts as they   become due;      18.5. the notification in writing to a governmental agency by such Party of its pending   insolvency, or suspension or pending suspension of its operations;       18.6. the making by such Party of any general assignment for the benefit of its creditors   or the taking of similar actions for the protection or benefit of its creditors;       18.7. in the case of Seller, in the event that, during any rolling [*****]15 period during   the Term, [*****] percent ([*****]%) or more of the Railcars have been rejected   by Buyer pursuant to Section 11.2; or        18.8. in the case of Seller, in the event that, during any rolling [*****] period during   the Term, [*****] percent ([*****]%) or more of the Railcars have not been   Delivered within [*****] of their respective Committed Delivery Dates   (excluding delayed deliveries resulting from Force Majeure Events and those   resulting from quality rejection pursuant to Section 11.2).      The Parties agree that either Party’s initiation of the dispute resolution provisions   described in Section 21.9 will not be a prerequisite for a Party to give a notice of an   Event of Default or act to delay any of the time periods for cure specified above.      19. TERMINATION.  In addition to any other rights and remedies available under this   Agreement or at law, in equity or otherwise, but subject to Section 14 addressing the   limitation of liability, and in addition to the termination rights relating to a Force   Majeure Event as set forth in Section 10.4 and the delivery of an Intent to Terminate   Notice as set forth in Section 5.4, upon the occurrence of an Event of Default, the non-   defaulting Party may terminate this Agreement on a date that is [*****] after the date                                                      15 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

25       CH\2041570.2   appearing in a written notice to the other Party regarding such termination.  In the event   of Agreement termination under this Section 19, such termination shall not affect any   Party’s rights or obligations that accrued prior to the date of such termination, and any   Order of Railcars placed prior thereto shall be Delivered by Seller, and Buyer shall   accept Delivery of such Railcars that comply with the Specification as provided under   Section 11.1, in accordance with the terms of this Agreement regardless of the effective   date of the termination; provided that Buyer shall not be required to place any new   Orders after the date of the written notice of such termination (regardless of whether   Buyer has placed Orders for Railcars equal to the Base Order Quantity, or the Monthly   Order Quantity for the Order Month in which such termination occurs).    Notwithstanding the foregoing, in the event of a written notice of termination of this   Agreement by either Party as a result of the occurrence of an Event of Default   described in Section 18.3, the non-defaulting Party shall not have any further obligation   to Deliver Railcars (in the case of Seller) or to accept any Railcars (in the case of   Buyer), in either case arising under Orders pending as of the date of the Event of   Default.       20. SUPPLY OF SPARE PARTS.  For a period beginning on the date hereof and ending   on the [*****]16 of the date hereof, or, if Seller (or Seller’s successor) discontinues the   manufacturing of railcars for Third Parties or discontinues the manufacturing of   aftermarket railcar parts and Components before the expiration of such [*****] period   (“Discontinued Operations”), up to the date of Discontinued Operations, Seller (or such   successor) shall make spare parts, fixtures and assemblies for the Railcars that are   proprietary to Seller or Seller’s successors (“Spare Parts”) and shall be made available   to Buyer for purchase at Seller’s then market price.  In the event the date of   Discontinued Operations is before the expiration of such [*****] period, Seller (or   Seller’s successor) shall give Buyer as much advance written notice of such   Discontinued Operations as possible, but in no event less than [*****] notice.   In   addition, if Seller learns in writing that any of its Suppliers will cease to make any   Spare Parts, Seller shall give Buyer written notice of such Supplier’s decision promptly   upon learning of same.      21. MISCELLANEOUS.        21.1. Further Assurances.  Following acceptance of and payment for any Railcar   hereunder, Seller shall make, do, and execute or cause to be made, done, and   executed all such further acts, deeds and assurances as Buyer or Buyer’s counsel   may, at any time or from time to time, reasonably require to confirm Buyer’s   right, title, and interest in and to such Railcar in accordance with the intent and   meaning of this Agreement.                                                         16 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

26       CH\2041570.2   21.2. Records Provided to Buyer; UMLER Reporting.  Within thirty (30) days after   the transfer by Bill of Sale of any Railcar to Buyer, Seller will furnish Buyer with   copies, in electronic form, of documents described on Exhibit I attached hereto   (collectively, “Records”).  Prior to Delivery of any Railcar hereunder, Seller will   file an application with the AAR for a certificate of construction (a “Certificate of   Construction”) for each Railcar and shall provide Buyer with such Certificate of   Construction in electronic form, in each case as required by 49 CFR 179.5.   21.2.1. Prior to the Delivery of each Railcar, Seller shall report the following   information in UMLER:     21.2.1.1. Air brake test date;   21.2.1.2. Reflectorization application date;   21.2.1.3. Comprehensive equipment performance monitoring   (CEPM) component identification (CID) numbers as   required by applicable Regulations (as of the date of this   Agreement, CID numbers must be reported for each wheel   set, and effective as of January 1, 2016, CID numbers must   be reported for couplers, bolsters and side frames).   21.3. Communication and Correspondence.  Seller shall furnish to Buyer, promptly   upon Seller’s receipt thereof, copies of any notice or correspondence received by   Seller from any Third Party, including any governmental agency, with respect to   any Railcar manufactured by Seller for Buyer pursuant to the terms hereof.  Seller   shall also furnish to Buyer, promptly upon Seller’s receipt thereof, copies of any   notice or correspondence received by Seller from any manufacturer or supplier of   any part, material, equipment, or component installed in or on any Railcar   manufactured by Seller for Buyer pursuant to this Agreement.      21.4. Confidentiality.  In the course of performance hereunder, each of Buyer and   Seller (with respect to information disclosed by such Party, the “Disclosing   Party”) will disclose to the other Party (the “Receiving Party”), whether in   written, electronic, or oral form, information regarding the Disclosing Party’s   business plans, strategies, and processes that the Disclosing Party reasonably   regards as proprietary and confidential (“Confidential Information”).    Confidential Information shall include, but not be limited to, (1) delivery   schedules, (2) pricing, (3) margins, (4) Specification, (5) Orders, and the identities   of, and the requirements and pricing and delivery schedules for Buyer’s   customers, and (6) terms of this Agreement redacted by the Parties prior to public   disclosure.  The Receiving Party agrees to hold the Confidential Information   disclosed to it by or on behalf of the Disclosing Party in confidence, to take   commercially reasonable precautions to protect such Confidential Information   from disclosure and to use the Confidential Information only in connection with   the performance of its obligations under this Agreement, in each case for a period   of five (5) years from the date of disclosure.  Subject to Section 21.4.4 hereof, the     

 

27       CH\2041570.2   Receiving Party shall not disclose any Confidential Information to any of its   employees unless such employees need to know such Confidential Information in   order for the Receiving Party to perform its obligations or exercise its rights   hereunder; provided, however, that the Receiving Party takes commercially   reasonable precautions to prevent such employee from (i) disclosing Confidential   Information to other employees who do not need to know such Confidential   Information in order for the Receiving Party to perform its obligations or exercise   its rights hereunder, and (ii) using Confidential Information in such employee’s   business decisions that are unrelated to the Receiving Party’s performance of its   obligations or exercise of its rights under this Agreement.  Notwithstanding  the   foregoing, but subject to Section 21.4.1, the Receiving Party may disclose   Confidential Information to any of its legal, financial or tax planning   representatives (“Representatives”) who need to know such Confidential   Information in order for the Receiving Party to carry out its obligations or enforce   its rights hereunder and who have been informed of, and the Receiving Party shall   cause such Representatives to abide by this Section 21.4; provided, that Buyer   may also disclose Records that constitute Confidential Information to any Third   Party for the sole purpose of permitting, and only to the extent necessary to   enable, such Third Party to safely operate, repair, maintain or modify Railcars   purchased under this Agreement (the “Permitted Purpose”) so long as prior to   such disclosure, such Third Party enters into a confidentiality agreement with   Seller on customary terms to be negotiated and agreed upon by such Third Party   and Seller, with Seller’s agreement not to be unreasonably withheld, conditioned   or delayed.  Notwithstanding the foregoing, Buyer may also disclose Records that   constitute Confidential Information to any Third Party via electronic portal solely   for the Permitted Purpose, so long as (1) prior to such disclosure, such Third Party   enters into a confidentiality agreement with Buyer, which terms shall, in all   material respects, be no less restrictive than the terms set forth in this Section 21.4   and (2) Seller is stipulated in such confidentiality agreement to be a third party   beneficiary thereof and thereunder.  Each Party shall be responsible for any action   or failure to act that would constitute a breach or other violation of this Section   21.4 by its Representatives.        21.4.1. From and after the Effective Date, the Margin Schedule may not be disclosed   to any of Buyer’s directors, officers, employees or Representatives who are   not members of Buyer’s Clean Team.  For purposes of this Agreement,   “Buyer’s Clean Team” shall mean those officers, directors or employees of   Buyer identified by title or Buyer’s Representatives, in each case as   reasonably agreed to by the Parties prior to the Effective Date, but at a   minimum, Buyer’s Clean Team shall always consist of at least Buyer’s   highest ranking legal, finance and compliance officers; provided, that (a)   Buyer may remove individuals from Buyer’s Clean Team at any time and   from time to time without advance notice to Seller, and (b) in the event   Buyer desires to add any individuals to Buyer’s Clean Team subsequent to   the date hereof, Buyer shall provide Seller with the name and title of such   individuals, and such individuals will only be added to Buyer’s Clean Team     

 

28       CH\2041570.2   with Seller’s written approval.  Upon the request of one Party to the other   Party, the Parties shall enter into a Confidentiality Agreement substantially   in the form of the Parties’ Confidentiality Agreement, dated as of September   12, 2014 (the “Margin Schedule Review Confidentiality Agreement”) in   order to facilitate the consideration, evaluation and negotiation of any   adjustments to the Margin Schedule as contemplated in Section 5.4 of this   Agreement (“Margin Schedule Review”).  Notwithstanding the foregoing,   provided that the Parties have first entered into the Margin Schedule Review   Confidentiality Agreement, the provisions of this Section 21.4.1 related to   the Buyer’s Clean Team shall not apply with respect to, and during the   pendency of, the Margin Schedule Review.         21.4.2. Seller’s Standard Manufacturing Cost and Seller’s actual cost for Railcars,   or any component thereof, shall only be disclosed to Buyer’s Third Party   Reviewer as set forth in Exhibit G.        21.4.3. Confidential Information does not include information that: (i) the   Receiving Party can demonstrate was in its possession prior to being   disclosed by the Disclosing Party hereunder and the source of the   information was not under an obligation of confidentiality to the   Disclosing Party; (ii) is now, or hereafter becomes, through no act or   failure to act on the part of the Receiving Party, generally known to the   public; (iii) is rightfully obtained from a Third Party not bound under an   obligation of confidentiality to the Disclosing Party; or (iv) is   independently developed by the Receiving Party without reference to or   use of any Confidential Information.  The foregoing restrictions on   disclosure of Confidential Information do not apply to any disclosure of   Confidential Information with respect to which the Receiving Party is   advised by legal counsel that such disclosure is necessary or compelled (a)   under the federal securities laws or other applicable law, or by the rules   and regulations of the Securities and Exchange Commission (the “SEC”)   or of any stock exchange on which the Receiving Party’s stock is listed, or   (b) pursuant to the terms of any deposition, interrogatory, formal litigation   discovery request, subpoena, civil investigative demand, court order or   similar process to which the Receiving Party is subject; provided, that the   Receiving Party notifies the Disclosing Party (x) as promptly as   reasonably possible following its determination that such disclosure is   necessary or compelled under sub-clause (a) above, and (y) as promptly as   reasonably possible after service of such legal process and to the extent   legally permissible so that the Disclosing Party may seek an appropriate   protective order, confidential treatment, or other remedy.  In the event the   Receiving Party is required or compelled to disclose Confidential   Information pursuant to the immediately preceding sentence, the   Receiving Party may disclose only that portion of such Confidential   Information with respect to which the Receiving Party has been advised   by its counsel is required or compelled to be disclosed.     

 

29       CH\2041570.2      21.4.4. Upon the request of the Disclosing Party following the expiration or   termination of this Agreement, the Receiving Party will return or destroy   all of the Disclosing Party’s Confidential Information, except that the   Receiving Party may retain Confidential Information of the Disclosing   Party that is (i) necessary in connection with the enforcement of the   Receiving Party’s rights under this Agreement, (ii) required to be   maintained by the Receiving Party’s internal document retention policies   or (iii) contained in an archived computer system backup in accordance   with the Receiving Party’s security or disaster recovery procedures;   provided that any such retained or archived Confidential Information shall   remain subject to the provisions of this Section 21.4 for so long as it is   maintained or archived; provided, further, a Receiving Party’s legal or IT   employees may access such retained or archived Confidential Information   solely to the extent necessary to perform their respective functions   described under this Section 21.4.4.      21.4.5. Except as may be required by the federal securities laws or other   applicable law, or by the rules and regulations of the SEC or of any stock   exchange on which a Party’s stock is listed, no Party will make public the   existence or content of this Agreement or the negotiations leading to or   pursuant to this Agreement without the prior written consent of the other   Party; provided, that no Party will be prohibited from disclosing the   general nature of the business relationship established hereby at any time;   provided, further, that the Parties agree that Buyer shall be permitted to   file a copy of this Agreement with the SEC and in connection therewith   shall request confidential treatment for certain portions of this Agreement   and certain of the Exhibits attached hereto as agreed by the Parties.      21.5. Broker’s Commission.  Each Party agrees to indemnify and hold the other Party   harmless from and against any claims for commissions arising out of the acts of   such Party and for expenses (including reasonable attorneys’ fees) and costs   relating to such claims or otherwise relating to such Party’s retention of any   broker, finder or other Person relating to a sale of the Railcars.      21.6. Successors and Permitted Assigns.  Neither Party may assign, transfer, sell, or   convey this Agreement to a Third Party without the prior written consent of the   other Party, which consent will not be unreasonably withheld or delayed.  In the   event of a merger, consolidation or change in Control of a Party whereby this   Agreement transfers by operation of law (a “Transaction”) to such Party’s   successor in interest (the “Transferee”), then:      21.6.1. In the case of a Transaction involving Seller, the Invoice Price for any   Exhibit A Railcar that is charged by Transferee to Buyer shall not increase as   a result of the Transaction or be greater than what Seller’s Invoice Price for   any such Exhibit A Railcar would have been absent the Transaction and in     

 

30       CH\2041570.2   the ordinary course of Seller’s operation of its business (in either case, an   “impermissible increase”).  For purposes of determining impermissible   increases, upon reasonable request from Buyer, Transferee shall permit   Buyer or Buyer’s agent access to Transferee’s relevant books and records as   to an Exhibit A Railcar on commercially reasonable and confidential terms   and conditions (excluding direct access by Buyer to Transferee’s   manufacturing cost information, which access and review shall be handled in   a manner similar to that described under Exhibit G hereto but without   limitation as to the number of reviews).  Buyer may terminate this   Agreement with [*****]17 advance written notice in the [*****]       21.6.2. In the case of a Transaction involving Buyer, Seller may terminate this   Agreement with sixty (60) days advance written notice in the event (i) a   Transaction occurs prior to Buyer’s first acceptance of Railcars hereunder, or   (ii) after the Transaction, the Transferee competes with Seller in railcar   manufacturing in North America.         21.7. Severability.  Any term, condition or provision of this Agreement which is, or is   deemed to be, void, prohibited, or unenforceable in any jurisdiction shall be, as to   such jurisdiction, severable here from and ineffective to the extent of such   avoidance, prohibition, and unenforceability without in any way invalidating the   remaining terms, conditions, and provisions hereof.  Any such avoidance,   prohibition, and unenforceability in any jurisdiction shall not invalidate or render   unenforceable such term, condition, or provision in any other jurisdiction.      21.8. Governing Law.  THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN   MADE IN THE STATE OF DELAWARE AND SHALL BE CONSTRUED IN   ACCORDANCE WITH, AND THE RIGHTS AND LIABILITIES OF THE   PARTIES HEREUNDER SHALL BE GOVERNED BY, THE LAWS OF SUCH   STATE WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICT   OF LAW THEREOF.      21.9. Dispute Resolution.  Each dispute, claim or controversy arising out of or in any   manner related to this Agreement or the breach thereof (a “Dispute”) between the   Parties will be resolved or adjudicated in accordance with the provisions   described in this Section 21.9.       21.9.1. In the event of a Dispute, either Party may, but is not required to, provide   written notice of such Dispute to the other Party (a “Dispute Notice”) and   in such event, representatives at the vice president level of each Party shall   meet in person to attempt to resolve such Dispute (a “Dispute   Negotiation”).  Each Dispute Negotiation will take place at a time and                                                      17 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

31       CH\2041570.2   place agreed to by such representatives, within thirty (30) days after the   date of the Dispute Notice.  At any time after delivery of a Dispute Notice,   either Seller or Buyer may, at its discretion, either in addition or as an   alternative to such Dispute Negotiation, initiate mediation in Delaware,   administered by the American Arbitration Association (the “AAA”) under   its commercial mediation procedures then in effect.  While Buyer and   Seller shall have an obligation to participate in each Dispute Negotiation   and any mediation (provided the mediation is scheduled within sixty (60)   days after the date of the Dispute Notice and at a time and place   reasonably acceptable to Buyer and Seller), nothing herein shall obligate   Buyer or Seller to enter into any agreement or reach any conclusion as a   result of such Dispute Negotiation or mediation.      21.9.2. In the event that a Dispute Notice is provided and the Parties are unable to   reach a mutually satisfactory resolution of the Dispute within ninety (90)   days after the date through Dispute Negotiation or mediation of such   Dispute Notice, or at any time in the event that no Dispute Notice is   provided, either Party may, upon written notice to the other (an   “Arbitration Demand”) initiate a binding arbitration, to take place in   Delaware, administered by the AAA (the “Arbitration”) under the AAA   Commercial Arbitration Rules and Procedures (“AAA Rules”); provided,   however, that in the event of a conflict between the AAA Rules and the   provisions of this Section 21.9, the provisions of this Section 21.9 shall   control.  The Arbitration shall be heard and determined by a panel of three   (3) arbitrators (each an “Arbitrator”).  Within ten (10) business days after   the Arbitration Demand, each Party shall select, and provide written notice   to the other Party of the identity of, a single Arbitrator who shall be   deemed non-neutral and not subject to the provisions of Rule R-17 of the   AAA Rules.  The third Arbitrator shall be selected in accordance with   Rule R-11 of the AAA Rules within twenty (20) business days after the   Arbitration Demand; provided, however, that the third Arbitrator must be   a licensed attorney, have experience in manufacturing and be listed on the   AAA’s Large, Complex Commercial Case Panel (or such other equivalent   replacement roster of experienced arbitrators that the AAA designates),   unless the matter of dispute arises under or relates to Exhibit G, in which   case such third Arbitrator must be an accountant with cost accounting and   manufacturing experience.       21.9.3. Any issue concerning the extent to which any Dispute is subject to   Arbitration, or concerning the applicability, interpretation, enforceability   or validity of these procedures, shall be governed by the United States   Federal Arbitration Act and not by any state arbitration law.  Except in   connection with a Party’s application to a court of competent jurisdiction   for interim or conservatory injunctive relief, to preserve a claim, to   preserve a position superior to other creditors, to resolve any issue   concerning jurisdiction, the existence or validity of the Arbitration     

 

32       CH\2041570.2   provisions of this Section 21.9, or the extent to which any Dispute is   subject to Arbitration, or to compel Arbitration in accordance with this   Section 21.9, or to enforce judgment on the Arbitrators’ award, all of the   foregoing which shall be decided by a court of competent jurisdiction, no   Party may institute legal proceedings related to a Dispute.  Any legal   proceeding permitted by the foregoing will be heard and determined only   in a state or federal court sitting in Delaware and the Parties hereby   irrevocably submit to the exclusive jurisdiction of such courts in any such   legal proceeding, irrevocably waive any objection to venue, including the   defense of an inconvenient forum, to the maintenance of any such legal   proceeding, and irrevocably agree that written notice of such legal   proceeding in compliance with the notice provisions of this Agreement   constitutes valid and lawful service of process against them without the   necessity for service by any other means; provided, that, notwithstanding   the foregoing, the Parties have the right to enforce judgment on the   arbitrators’ award in any court of competent jurisdiction.      21.9.4. In any Arbitration initiated pursuant to this Section 21.9, the Parties shall   be permitted to take the following discovery without seeking leave of the   Arbitrators and each Party agrees to cooperate in producing all discovery   contemplated by this Section 21.9 or otherwise ordered by the Arbitrators.    The scope of discovery in the Arbitration shall be that each Party may   obtain discovery regarding any non-privileged matter that is relevant to   any Party’s claim or defense.        21.9.5. Each Party may serve requests for production of documents and other   tangible things and such requests and the responses thereto shall be in   accordance with the provisions of Rule 34 of the FRCP, as if such   provisions applied to the Arbitration, and such requests may include   requests for electronically stored information, which requests and   responses shall be in accordance with the provisions of Rule 34 and Rule   26(b)(2)(b) of the FRCP as if such provisions applied to the Arbitration   proceeding.  Each Party may serve interrogatories and such interrogatories   and the responses thereto shall be in accordance with the provisions of   Rule 33 of the FRCP as if such provisions applied to the Arbitration.  Each   Party may serve requests for admission and such requests and the   responses thereto shall be in accordance with the provisions of Rule 36 of   the FRCP as if such provisions applied to the Arbitration.  Each Party may   take up to 10 depositions of the other Party by serving a notice of   deposition and the other Party must produce the deponents as requested in   accordance with the provisions of Rule 30 of the FRCP, including Rule   30(b)(6), as if such provisions applied to the Arbitration; provided,   however, that a Party that seeks to present the testimony of a third-party   witness at the Arbitration must produce such witness for deposition prior   to the Arbitration and such deposition shall not count towards the   foregoing 10 deposition limit; provided, further, that a Party that seeks to     

 

33       CH\2041570.2   present the opinion testimony of an expert witness at the Arbitration must   produce a written expert report in accordance with the provisions of Rule   26(a)(2) of the FRCP as if such provisions applied to the Arbitration and   produce such expert witness for deposition prior to the Arbitration and   such deposition shall not count towards the foregoing 10 deposition limit.        21.9.6. The Parties agree that in the event of Arbitration and before engaging in   any discovery, they will execute a Confidentiality Agreement and Agreed   Protective Order in the form attached hereto as Exhibit J, which shall   govern the exchange of information produced by any party or non-party in   the Arbitration.  In such event, the Parties agree that they will request that   the Arbitrators enter the fully-executed Confidentiality Agreement and   Agreed Protective Order and that, in the case of any conflict between its   terms and the terms of this Agreement, the Confidentiality Agreement and   Agreed Protective Order shall control.  The Arbitrators may, upon written   request of any Party, limit the amount or scope of written discovery   described above only after all Parties have been given the opportunity to   oppose such request in writing.  In no event, however, may the Arbitrator   reduce the number of depositions provided for above.  The Arbitrator may   compel a Party to comply with discovery or its obligations under the   Confidentiality Agreement and Agreed Protective Order, including by   awarding attorneys’ fees, assessing monetary sanctions, and limiting a   Party’s use of evidence at hearing.  Any Party has the right to have any   hearing recorded by stenographic and video means with such Party   bearing the costs of the stenographer and videographer; provided,   however, that any other Party shall have to right to obtain transcripts from   the transcriber at such other Party’s own cost; provided, further, however,   that the Parties shall share equally the cost of any transcript requested by   the Arbitrators.      21.9.7. The Arbitrators have the right to award or include in their award any relief   that they deem proper, including money damages (with interest on unpaid   amounts from the date due), specific performance, injunctive relief,   monetary sanctions, and attorneys’ fees and costs; provided, that the   Arbitrators shall have no power to award punitive damages or damages   inconsistent with this Agreement, and the Parties expressly waive their   right to obtain such damages in the Arbitration or in any other forum.  In   no event shall the Arbitrators have any right, power, or authority to   change, alter, detract from, or add to the provisions of this Agreement, but   they shall have the power only to apply and interpret the provisions of this   Agreement.  The Arbitrators may not consider any settlement discussions   or offers that might have been made by the either Party, whether or not   made in connection with a Dispute Negotiation or mediation.  All aspects   of the Arbitration (including the existence, content and result of the   Arbitration) shall be treated as Confidential Information.  The Arbitrators’   decision shall be final and binding upon both Parties.  Each Party shall be     

 

34       CH\2041570.2   responsible for its own attorneys’ fees and costs, including filing fee and   final fee of the AAA, in connection with any such mediation or   Arbitration, subject to any award of attorneys’ fees and costs, and the   Parties shall share equally the costs of the mediator, the Arbitrators, the   AAA (to the extent in excess of filing and final fees), the mediation   location, and the Arbitration location.      21.9.8. The Arbitration award shall be a reasoned award, made within the time   limits imposed by R-41 of the AAA Rules; provided, however, that the   Arbitrators may extend the time limits of R-41 as they deem necessary.    After the award is received by the Parties and all time periods provided for   in R-46 have expired, one or both of the Parties may present the award to a   court of competent jurisdiction for confirmation.  The court’s confirmation   of the award shall be governed by Section 9 of the Federal Arbitration Act   (the “Act”), and the grounds for the court to vacate, modify, or correct the   award shall be limited to the grounds articulated in Sections 10 and 11 of   the Act.      21.10. Notices.  Unless otherwise expressly provided herein, all communications, notices   and requests under this Agreement shall be in writing and shall be deemed   received either (i) one (1) business day after being deposited, all charges prepaid,   with Federal Express or other commercial delivery service that guarantees next   business day delivery and provides a written confirmation of delivery, or (ii) on   the date of transmission, if sent by facsimile (receipt confirmed) or email.  The   addresses, facsimile numbers and email addresses for notice, unless changed by   notice, are as follows:      If to Seller:  Trinity Rail Group, LLC   2525 Stemmons Freeway   Dallas, TX  75207   Attn:  Dale Hill   Fax:  214-589-8819   Email:  Dale.Hill@trin.net      If to Buyer: GATX Corporation   222 West Adams Street   Chicago, IL  60661   Attn:  VP Fleet Management   Fax:  (312) 499-7536   Email:  vp-fpm@gatx.com   For any notice relating to matters under Sections 8, 10.4, 11.3, 13, 14, 15, 16, 17,   18, 19 or 21 of this Agreement, copies of such notice shall also be delivered to the   Parties’ respective legal counsel in the manner set forth above.  The addresses,   facsimile numbers and email addresses for notices, unless changed by notice, are   as follows:     

 

35       CH\2041570.2      If to Seller:  Trinity Industries, Inc.   2525 Stemmons Freeway   Dallas, TX  75207   Attn: Heather Randall   Fax:  214-589-8824   Email:  Heather.Randall@trin.net      If to Buyer:  GATX Corporation   222 West Adams Street   Chicago, IL  60661   Attn:  General Counsel   Fax:  (312) 621-6648   Email:  Deborah.Golden@gatx.com      21.11. Counterparts.  This Agreement may be executed in any number of counterparts   (including by means of facsimile or .PDF) each of which will be deemed an   original but all of such counterparts together shall constitute one and the same   instrument.      21.12. Entire Agreement and Amendments.  This Agreement, together with each   Exhibit attached hereto, and the other documents explicitly referenced herein   contain the entire agreement and understanding between the Parties with respect   to the subject matter hereof and, as of the execution hereof, supersedes all prior   agreements, understandings, and representations, whether oral or written, related   to the subject matter hereof, including that certain Confidentiality Agreement,   dated September 12, 2014, by and between Buyer and Seller, each of which are   hereby terminated and shall be of no further force and effect following the   execution and delivery hereof, provided that any confidential information   disclosed under the Confidentiality Agreement dated September 12, 2014 will   also be deemed to be Confidential Information under this Agreement.  No   amendment, modification, supplement, waiver, or release of any of the terms and   conditions contained herein shall be made except by mutual agreement to that   effect in writing and signed by all Parties.        21.13. Survival.  Regardless of the expiration or termination for any reason of this   Agreement, the rights and obligations set forth in this Agreement that require or   contemplate performance by a Party after such expiration or termination shall   remain in full force and effect to the extent required for their full observance and   performance, including, but not limited to, Sections 5.1.3, 5.2.4, 5.2.5, 5.4, 7,   11.3, 12, 13, 14, 15.1, 15.2, 16, 17, 19, 20 and 21.      21.14. Expenses.  Except as otherwise expressly set forth in this Agreement, each Party   will bear all of its own costs and expenses incurred in negotiating and complying   with such Party’s obligations arising pursuant to this Agreement.        

 

36       CH\2041570.2   21.15. No Agency Relationship.  Nothing contained in this Agreement will create any   agency, fiduciary, joint venture, or partnership relationship between the Parties.      21.16. No Third-Party Beneficiaries.  This Agreement will not confer any rights or   remedies upon any Person other than the Parties.      21.17. Headings.  The Section headings contained in this Agreement are inserted for   convenience only and will not affect in any way the meaning or interpretation of   this Agreement.      21.18. Construction.  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 will 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.    Unless the context requires otherwise, singular includes plural and vice versa and   any gender includes every gender, and where any word or phrase is given a   defined meaning, any other grammatical form of that word or phrase will have a   corresponding meaning.  The word “including” (and its variants, e.g. “includes”,   “include”) will mean “including without limitation” unless otherwise stated.    Unless the context requires otherwise, the words “hereof,” “herein,” “hereunder,”   “hereby,” or words of similar import refer to this Agreement as a whole and not to   any particular Section, subparagraph, clause or other subdivision hereof.  The   word “or” will be disjunctive but not exclusive.  Each reference to a Section   herein is to a Section of this Agreement.  Each Schedule, Exhibit, and Annex   attached hereto is incorporated herein and made a part hereof as if fully set forth   herein.      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]        

 

   [Signature page to Supply Agreement]    CH\2041570.2   IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the   Effective Date.      GATX CORPORATION            By:      Name:      Title:            TRINITY RAIL GROUP, LLC            By:      Name:      Title:           

 

       CH\2041570.2   Exhibit A   [*****]18                                                            18 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

       CH\2041570.2   Exhibit B   [*****]19                                                               19 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

       CH\2041570.2   Exhibit C   [*****]20                                                            20 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

       CH\2041570.2   Exhibit D   [*****]21                                                         21 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

       CH\2041570.2   Exhibit E   Order Form   RAILCAR ORDER FORM   To:     Company:    Telephone:    Order Date:    GATX CPP/BO#:       Car Type(s):       Quantity:       Alternates:      New Buyer-Supplied Components:      Non-New Buyer-Supplied Components:      Price:      Terms and Conditions:  This Order Form is subject to the terms and conditions of   the Supply Agreement dated November 3, 2014.       Executed by:      GATX Corporation         By: Name: ________________________________      Title: _________________________________      Signature: _____________________________              

 

       CH\2041570.2   Exhibit F   Form of Certificate of Acceptance   CERTIFICATE OF ACCEPTANCE           GATX PO   NUMBER     SELLER’S JOB   NUMBER           RAILCAR DESCRIPTION      In accordance with the Supply Agreement (“Agreement”) between GATX Corporation ("Buyer") and Trinity Rail Group, LLC   ("Seller"), dated November 3, 2014, the undersigned hereby certifies that on the date of this Certificate the following   Railcars were accepted by the Buyer in accordance with the Agreement.  The execution of this Certificate of Acceptance   shall not relieve the Seller of any of its obligations under the Agreement nor shall it constitute a waiver by the Buyer with   respect to any of its rights and remedies under the Agreement.          CAR NUMBER   LIGHT   WEIGHT   GALLONS   DATE   AVAILABLE   FOR   INSPECTION   OR RE-   INSPECTION   DATE   ACCEPTED   BO#                                                                                                                                                                                                                                           Accepted   Today:      Cumulative Accepted by   BO#:                              

 

       CH\2041570.2   Exhibit G   Third Party Review   1. General.         (a) Pursuant to Section 7 of the Agreement between Buyer and Seller dated   November 3, 2014, upon written notice to Seller, Buyer may initiate a Third Party   Review with respect to the matters set forth in Section 6 of this Exhibit G.       (b) Buyer may initiate a Third Party Review after the first Order Year of this   Agreement.  Thereafter, Buyer may request [*****]22.        2. Selection of Third Party Reviewer.  Within 30 days after Buyer’s notice to undertake a   Third Party Review, Buyer will appoint a reputable accounting firm to conduct the Third Party   Review, subject to Seller’s consent, such consent not to be unreasonably withheld or delayed (the   “Reviewer”), to the extent that such Reviewer does not have ethical conflicts given their then-   current or past dealings with either Party.  Seller agrees that [*****] is an acceptable Reviewer   as of the Effective Date.      3. Confidentiality.  The Parties agree that the Seller may require the Reviewer to enter into   and be bound by a confidentiality agreement in the form attached hereto as Schedule 1 to this   Exhibit G (the “Reviewer Confidentiality Agreement”).  Buyer acknowledges that all   information the Reviewer receives from Seller will be considered “Evaluation Material” as set   forth in the Reviewer Confidentiality Agreement and, except to the extent otherwise provided   under this Exhibit G or the Reviewer Confidentiality Agreement, the Reviewer will be prohibited   from disclosing any of such Evaluation Material, whether in writing or orally, to Buyer or any   other Person (other than to Reviewer’s employees who need to know such information for   purposes of the Third Party Review and who the Reviewer shall cause to comply with the   provisions of the Reviewer Confidentiality Agreement) or using such Evaluation Material other   than for purposes of its Third Party Review.  The Parties agree that the Reviewer may disclose   such Evaluation Material if (but only to the extent) required by applicable law or regulation,   including any subpoena or other similar form of process; provided, that the Reviewer will   provide, unless prohibited by law, Seller with prompt notice of any request that they disclose   Seller’s Evaluation Material so that Seller may object to the request and/or seek an appropriate   protective order.       4. Recordkeeping; Access.        (a) During the Term of this Agreement and continuing thereafter for the longer of   [*****] or the period necessary to (i) resolve any pending Dispute or (ii) complete any   Third Party Review authorized under the Agreement, Seller shall maintain a [*****].                                                          22 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

       CH\2041570.2   (b) Seller will provide the Reviewer with access to the Seller Records and Seller’s   personnel, accountants, and any other information that is reasonably necessary to perform   a Third Party Review and for the Reviewer to prepare and issue the Report (as defined in   Section 7 of this Exhibit G).  The Third Party Review will take place at Seller’s place of   business in Dallas, Texas and the Reviewer will not be permitted to (i) remove any of the   books, records, and information provided by Seller to the Reviewer from Seller’s place of   business or (ii) copy such books, records, or information for any purpose.  The Reviewer   may keep its working papers, reports and copies of information obtained from Seller   and/or Buyer in connection with the Third Party Review to comply with applicable law,   statute, rule, regulation, or professional standards promulgated by AICPA.  Any such   information so kept shall be retained in accordance with the terms of the Reviewer   Confidentiality Agreement.      5. Conduct of Review.  All Third Party Reviews will be performed during Seller’s normal   business hours and in a manner so as not to unreasonably interfere with Seller’s operations and   personnel.  Reviewer and Seller will cooperate with each other as necessary for Reviewer to   perform the Third Party Review in an expeditious and efficient manner.  Reviewer’s onsite   access to Seller’s place of business will be limited to a maximum of [*****]23 per Third Party   Review performed hereunder; provided, that Seller promptly responds to Reviewer’s reasonable   requests for access and information necessary to perform the Third Party Review.      6. Scope of Third Party Review.       (a) In connection with the Third Party Review, the Reviewer shall review Seller’s   Records to determine whether there were any discrepancies between (i) the [*****].      (b) In addition to its obligations set forth in Section 4 of this Exhibit G, Seller will, at   a minimum, prepare and deliver to the Reviewer, within thirty (30) days of its receipt of   notice that Buyer has elected to initiate a Third Party Review, the following information:      (i) A “Price Calculation List” for each Order of a Railcar listed on Exhibit A   to the Agreement for which Buyer received an invoice.  The Price Calculation   List shall consist of [*****].      (ii)  [*****].      (iii) [*****].      (c) [*****].      7. Report.        (a) The Reviewer shall prepare a written report (the “Report”) [*****].                                                      23 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

       CH\2041570.2   (b) [*****]24      (c) [*****]      8. Settlement Procedures.        (a) If the Report discloses any discrepancies (whether related to Seller’s [*****], or   otherwise), Buyer may, at its option, request in writing a refund or credit for such   discrepancies, which shall include a description of the basis for Buyer’s request founded   upon the Report.        (b) Seller shall have thirty (30) days from its receipt of Buyer’s request to respond.  If   Seller does not respond by the end of such thirty (30) day period or if Seller concurs with   any or all of the Reviewer’s findings, it shall issue a refund or credit to Buyer within ten   (10) business days in the full amount of Buyer’s request, unless Seller disputes a portion   of the Reviewer’s findings, in which case it shall issue a refund or credit to Buyer in the   amount that is not disputed by Seller.        (c) If Seller disputes any or all of the Reviewer’s findings, the Parties shall promptly   discuss the Reviewer’s findings under dispute and attempt to reach a settlement.  If the   Parties reach a settlement on any or all of the disputed findings, Seller shall issue a refund   or credit to Buyer within ten (10) business days in the agreed amount.  If the Parties   cannot reach a settlement on the remaining disputed findings within sixty (60) days from   the date of Buyer’s request for a refund or credit, Buyer may pursue such dispute under   the dispute resolution provisions set forth in Section 21.9 of the Agreement.        9. Buyer’s Access to the Report.  Buyer shall be permitted to retain copies of the Report.    Notwithstanding anything to the contrary contained in this Agreement, Buyer may utilize and   disclose the Report in connection with any Dispute.        10. Review Cost.  Buyer shall be solely responsible for all of its costs related to the Third   Party Review and the costs of the Reviewer.                                                      24 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

       CH\2041570.2   Schedule 1 to Exhibit G      Reviewer Confidentiality Agreement      CONFIDENTIALITY AGREEMENT      This Confidentiality Agreement (this “Agreement”) is between Trinity Rail Group, LLC,   2525 Stemmons Freeway, Dallas, TX 75207 (“TRail”), and PricewaterhouseCoopers LLP, 300   Madison Avenue, New York, NY 10017 (“Reviewer”).  Reviewer and TRail are sometimes   referred to herein individually as a “Party” and collectively as the “Parties”.      WHEREAS, Reviewer has been engaged by GATX Corporation (“GATX”) to perform   certain “Third Party Review” services (the “Services”) as provided for in that certain Supply   Agreement, by and between GATX and TRail, dated November 3, 2014 (the “Supply   Agreement”); and      WHEREAS, TRail is agreeable to Reviewer’s performance of the Services subject to the   terms and conditions of this Agreement;      NOW, THEREFORE, in consideration of the mutual covenants contained herein and   other good and valuable consideration the receipt and sufficiency of which are hereby   acknowledged, the Parties hereby agree as follows:       1. Evaluation Material.  “Evaluation Material” shall consist of any and all disclosures by   TRail to Reviewer with respect to Reviewer’s performance of the Services.      Notwithstanding the foregoing, Evaluation Material shall not include any information   that:      a. is or becomes publicly available other than by a breach of this Agreement by   Reviewer;      b. is acquired by Reviewer from a third party that is not, to Reviewer’s knowledge,   under any confidentiality obligation to TRail regarding such information;      c. is developed independently by Reviewer or GATX without reference to the   Evaluation Material; or      d. is disclosed by TRail to any person or entity free of confidentiality obligations to   TRail.      e. is known to Reviewer prior to the date of this Agreement.      f. is disclosed by Reviewer with the written approval of TRail.        

 

       CH\2041570.2   2. Disclosure to GATX.   Reviewer agrees not to disclose Evaluation Material to GATX or   GATX’s other representatives without TRail’s prior written consent.  TRail agrees that:   Reviewer may (i) disclose to GATX the report containing the information described in   Section 7(a) of Exhibit G to the Supply Agreement (“Exhibit G”) (the “Report”), and (ii)   may conduct general discussions with GATX and GATX’s representatives regarding the   overall scope or progress in the performance of the Services; provided, that with respect   to (ii) above, such disclosures or general discussions do not include any Evaluation   Material.  Subject to TRail’s execution of a release letter in a form acceptable to   Reviewer, Reviewer will provide any draft or final Report to TRail to review prior to   Reviewer disclosing such draft or final Report to GATX.  If TRail determines that such   Report needs to be redacted to avoid disclosure of Evaluation Material in accordance   with Section 7 of Exhibit G, Reviewer will redact the Reports in accordance with TRail’s   instructions.  After any version of the Report has been redacted, TRail will provide its   consent for Reviewer to disclose the Report to GATX, which consent shall not be   unreasonably withheld or delayed and shall include an acknowledgement that Reviewer has   complied with the requirements of this Agreement.      3. Responsibility.  Except for Reviewer’s obligations of confidentiality and restricted use   expressly set forth herein, Reviewer has no obligation towards TRail in relation to the   Services and TRail has no obligation to Reviewer.      4. Confidentiality and Use.  Subject to Section 2 of this Agreement, Reviewer agrees to   keep confidential the Evaluation Material and shall disclose such information only to its   agents and those personnel at Reviewer and its agents who have a need to know such   information for performance of the Services, and shall use such Evaluation Material   solely for the purpose of performing its Services.  Reviewer will be responsible for any   breach of this Agreement by its personnel and Reviewer’s agents and any employee of   Reviewer’s agents.      5. Disclosure Required by Law.  Notwithstanding anything to the contrary in this   Agreement, Reviewer may disclose Evaluation Material that Reviewer is advised by legal   counsel that such disclosure is required or compelled by law, statute, rule, or regulation,   including any subpoena or other legal process, but only to the extent such law, statute,   rule, or regulation, subpoena, or other legal process requires disclosure.  To the extent   reasonably possible, Reviewer will provide TRail with prompt notice of any request that   Reviewer has been advised to disclose Evaluation Material (so long as such notice is not   prohibited by such law, statute, rule, or regulation, subpoena or other legal process), so   that TRail may have the opportunity to object to the request and/or seek an appropriate   protective order.  If TRail is unable to obtain or does not timely seek a protective order   and Reviewer is legally requested or required to disclose such Evaluation Material,   disclosure of such Evaluation Material may be made by Reviewer without liability.      6. Return of Information.  Reviewer shall, upon TRail’s written request, return to TRail or   destroy all Evaluation Material in its possession; provided, however, that Reviewer may   keep a set of Evaluation Material in its working papers, reports and copies of information   solely and specifically to comply with applicable law, statute, rule, regulation or     

 

       CH\2041570.2   professional standards promulgated by the AICPA or other regulatory body with   jurisdiction.        7. Remedies.  Reviewer recognizes the confidential and proprietary nature of the Evaluation   Material and acknowledges that, in the event it is determined by a court that a breach of   the confidentiality provisions of this Agreement has occurred or is likely to occur, TRail   may suffer irreparable harm.  Accordingly, TRail shall be entitled to seek preliminary and   permanent injunctive relief in the event of a breach or threatened breach of this   Agreement, as well as all other applicable remedies at law or equity, including but not   limited to injunction or specific performance.      8. Term.  Other than as expressed in Section 6 above, Reviewer’s confidentiality obligations   under this Agreement will terminate five (5) years from the last date that the Services are   performed.      9. Governing Law.  This Agreement shall be governed and construed pursuant to the laws   of the State of Delaware, without giving effect to its conflict-of-laws principles.      10. Agreement.  This Agreement constitutes the only agreement between TRail and Reviewer   regarding the Evaluation Material and its disclosure and use with respect to the Services,   and supersedes any and all prior agreements, arrangements, and understandings between   the Parties as to such subject matter.        11. Modification.  This Agreement may not be modified, altered, or amended except in a   writing signed by the Parties.         12. Counterparts.  This Agreement may be executed in any number of counterparts   (including by means of facsimile or .PDF) each of which will be deemed an original but   all of such counterparts together shall constitute one and the same instrument.      IN WITNESS WHEREOF, authorized representatives of the Parties have signed this Agreement   as of the ___ day of _________________, 201__.         TRINITY RAIL GROUP, LLC   PRICEWATERHOUSECOOPERS LLP         By:____________________________   By:_______________________________      Name:__________________________   Name:_____________________________      Title:___________________________   Title:______________________________           

 

       CH\2041570.2   Exhibit H   Form of Bill of Sale    THIS BILL OF SALE is made and effective this _____ day of ________________,   20___ by TRINITY RAIL GROUP, LLC (“Seller”) to GATX CORPORATION (“Buyer”).        WITNESSETH:       FOR AND IN CONSIDERATION of the sum of Ten Dollars ($10) and other good and   valuable consideration, the sufficiency of which is hereby acknowledged, Seller bargains, grants,   sells, conveys, and transfer to Buyer all of Seller’s right, title and interest in and to those railcars   listed on Schedule A attached hereto (the “Cars”), to have and to hold the same, together with   appurtenances and privileges thereunto belonging or appertaining, for the benefit of Buyer, its   successors and assigns, forever.       Seller hereby makes such representations and gives such warranties with respect to the   Cars as set forth in the Supply Agreement between Buyer and Seller dated November 3, 2014   (the “Agreement”).  EXCEPT AS OTHERWISE PROVIDED IN THE AGREEMENT, THE   WARRANTIES IN THE AGREEMENT ARE EXCLUSIVE AND ARE IN LIEU OF ALL   OTHER WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING ANY   WARRANTY OF TITLE, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE.       IN WITNESS WHEREOF, this Bill of Sale has been executed and delivered effective as   of the day and year first written above.                     TRINITY RAIL GROUP, LLC              By:__________________________________________            Name:________________________________________            Title:_________________________________________                 

 

       CH\2041570.2      SCHEDULE A   TO BILL OF SALE          I. Invoice No.      II. Car Type:        III. Quantity of Cars:       IV. Car Marks:      V.        Running Numbers:                                

 

       CH\2041570.2   Exhibit I   Records   DOCUMENT TYPE FORMAT REQUIRED Required for    New Built Railcar    Certificate of Construction Adobe PDF Yes   Car Specification Sheet - to include   Builder file number (BO#)   Microsoft Word or Excel or Adobe  PDF Yes   Drawings- including but not limited to:       1. Arrangement    2. Assembly    3. Part    4. Calculation   One drawing per file in (*.dwg or *.dxf   drawing files) Adobe PDF files.  Electronic   drawing files names to include drawing   number, sheet and revision.          All upper level   arrangement and   assembly drawings   used to build the   Railcar, in   electronic format.    Seller will provide   Buyer with   reasonable access   to, but not copies   of, parts drawings.   Drawing List HTML, Adobe PDF, Microsoft Excel or   Plain Text (*.txt) file with entries that   include the drawing number, sheet, revision   and drawing title.   yes   Bill of Materials - to include Builder file   number    HTML, Microsoft Word or Excel or Adobe   PDF file of the entire BOM.   yes   Specialty List of additional vendor   components used to build the car. To   include lot and model number for:       1. Trucks    2. Couplers    3. Brakes    4. Running Gear   HTML, Adobe PDF, Microsoft Excel or   Plain Text (*.txt) file of the entire Specialty   list to include vendor name, component   name, component model number,   component lot number.   Any drawings to follow drawing   requirements above.   yes   Photograph - To include one full side and   A & B end views.   Digital high resolution color photograph or   8x10 color print.   yes   TCID  Adobe PDF yes   Qualification Acceptance Criteria Adobe PDF yes         RECORDS REQUIREMENTS:    1. All data listed herein for new built Railcars is to be in electronic format unless   otherwise agreed to by Buyer.   2. All electronic Railcar data outlined in this Exhibit will be compiled onto a data   CD with all data placed into a folder that carries the name of Document Type   listed above, i.e., Drawings, Photos, etc.  A sample CD detailing all folders and     

 

       CH\2041570.2   document formats is available upon request from GATX Rail Engineering.  This   is a sample of the typical CD contents and folder names.   3. The CD will be presented to Buyer as the close-out package for new built   Railcars.   4. The foregoing Records requirements and electronic Railcar data is subject to   change from time to time in accordance with Buyer’s Fleet Maintenance   Instruction (ETSD-15.0) and Seller’s acceptance of those changes.        

 

       CH\2041570.2   Exhibit J   Confidentiality Agreement   __________________, §   §   §       Claimant, §   §   AMERICAN ARBITRATION   ASSOCIATION CASE NO.    v. §   §      _______________   __________________,      §   §   §          Respondent. §        CONFIDENTIALITY AGREEMENT AND AGREED PROTECTIVE ORDER   The parties to this arbitration (the “Parties”), Claimant ______________ (“Claimant” or   “Party”) and Respondent _____________________ (“Respondent” or “Party”) enter into this   Confidentiality Agreement and Agreed Protective Order (“Agreement”) as follows:   1. The term “Discovery Material” shall mean all information, tangible items,   electronic material and documents produced by any Party or non-party in response to discovery   in the arbitration proceeding, _______________________, AAA Case No. ________________   (the “Arbitration”).  For purposes of this Agreement, “Discovery Material” shall also include   any affidavit, motion, memorandum, pleading, image, or other material presented to the   arbitration panel that discloses Discovery Material designated “Confidential” and retaining its   confidential designation.  This Agreement shall govern the handling of all such Discovery   Material.   2. The term “Confidential Discovery Material” shall refer to all Discovery Material   which has been designated by the producing Party (the “Producing Party”) as “Confidential”   because such Discovery Material contains Confidential Information.  “Confidential Discovery   Material” shall also include Discovery Material designated by the Producing Party as   “Confidential – Attorney Eyes Only.”  In designating information as “Confidential – Attorney   Eyes Only,” the Producing Party will make such a designation only as to that information that it     

 

       CH\2041570.2   believes contains highly sensitive business or technical information of the producing or   designation Party.  The “Confidential – Attorney Eyes Only” category is more fully explained in   paragraph 15 below, but is identified here as being part of “Confidential Discovery Material.”    For purposes of this Agreement, “Party” shall include each Party’s respective affiliates defined   as any person or entity (or sub-unit of any entity) that, directly or indirectly through one or more   intermediaries, controls, is controlled by, or is under common control with a Party.    “Confidential Information” is information in the possession of, prepared by, compiled by, or that   is used by a Party and (1) is proprietary to or about, or created by a Party; (2) gives a Party some   competitive business advantage, the opportunity of obtaining such advantage, disclosure of   which would be detrimental to the interest of the Party or contains business planning   information; or (3) is not typically disclosed by a Party, or known by persons who are not   employed by a Party or are not independent contractors of a Party.  Confidential Information is   also information regarding former and current employees, officers, and independent contractors   of a Party, including information regarding their employment and/or termination therefrom,   performance and compensation.  Confidential Information shall also include information   pertaining to past, current, and potential transactions engaged in or considered by a Party.    Confidential Information shall also include any information pertaining to current, former, and   prospective customers of a Party.  Confidential Information shall also include any financial   statements as to a Party to the extent that such information has not already been publicly   disclosed.  Confidential Information shall also include any other information that is   “Confidential Information” under Section 21.4 of the Supply Agreement dated November 3,   2014 between Claimant and Respondent (the “Supply Agreement”).    3. No Discovery Material designated as “Confidential” or “Confidential – Attorney   Eyes Only” hereunder or any copy, image, excerpt, or summary thereof shall be delivered or   disclosed to any person except as hereafter provided.  The contents of any such Confidential   Discovery Material shall not be revealed except to persons authorized hereunder and except as   so provided.  This Agreement does not apply to information furnished by Parties or non-parties     

 

       CH\2041570.2   that  (i) the Receiving Party (as defined below) can demonstrate was in its possession prior to   being disclosed by the Producing Party hereunder and the source of the information was not   under an obligation of confidentiality to the Producing Party; (ii) is now, or hereafter becomes,   through no act or failure to act on the part of the Receiving Party, generally known to the public;   (iii) is rightfully obtained from a Third Party not bound under an obligation of confidentiality to   the Producing Party; or (iv) is independently developed by the Receiving Party without   reference to or use of any Confidential Information.    4.  All Confidential Discovery Material produced in the Arbitration shall be used   only for the prosecution and/or defense of the Arbitration, and any person in possession of   Confidential Discovery Material shall maintain those materials in a reasonably secure manner   so as to avoid disclosure of their contents and in a manner no less secure than that used to   protect its own information of similar sensitivity or importance.   5. Unless otherwise provided herein, the “Confidential” designation set forth in this   Agreement must be made at or prior to the time of production of documents by, to the extent   possible, stamping the word “Confidential” on the first page of the Discovery Materials to be   deemed Confidential. Information provided in electronic format, to the extent possible, should be   designated as “Confidential” by correspondence between counsel.  Discovery Material produced   prior to entry of this Agreement may be designated as “Confidential” by referencing the Bates-   label of such information in correspondence between counsel or, if the material contains no   Bates-label, by describing the information in correspondence between counsel.  Discovery   Material in the form of testimony in deposition or otherwise may be designated as “Confidential”   by counsel so stating on the record at the time of such testimony or in correspondence between   counsel delivered within thirty (30) days after a transcript containing such testimony is delivered   to the Parties.  All testimony shall be treated as Confidential until the expiration of thirty (30)   days after a transcript containing such testimony is delivered to the Parties and thereafter only   such testimony designated as Confidential in accordance with the foregoing shall be treated as   Confidential.     

 

       CH\2041570.2   6. The inadvertent or unintentional production of discovery containing Confidential   Information that is not designated as Confidential Discovery Material at the time of the   production or disclosure shall not be deemed a waiver in whole or in part of a Party’s claim of   confidentiality, either as to the specific discovery produced or as to any other discovery relating   thereto or on the same related subject matter.  Documents containing Confidential Information   inadvertently or unintentionally produced without being designated as Confidential Discovery   Material may be retroactively designated by notice in writing of the designated class of each   document by Bates number or other adequate description and shall be treated appropriately from   the date written notice of the designation is provided to the Receiving Party.  To the extent that,   prior to such notice, a Party receiving the document or information may have disclosed it to   others outside the parameters of this Agreement, the Party shall not be deemed to have violated   this Agreement, but the Party shall cooperate with the designating Party’s effort to retrieve any   document or information promptly from such person and to limit any further disclosure pursuant   to this Agreement.   7. A Party who has received Discovery Material (the “Receiving Party”) that is   designated as “Confidential” and who objects to the designation of any Discovery Material as   Confidential Discovery Material, shall notify counsel for the Producing Party in writing of its   objection.  The Producing Party and the objecting Receiving Party shall attempt to resolve all   objections by agreement.  If any objections cannot be resolved by agreement, the Receiving   Party shall have fourteen (14) business days from the time in which the Receiving Party delivers   its written objection to apply to the arbitration panel for a determination as to whether the   Confidential designation is appropriate.  Until an objection has been resolved by agreement of   counsel or by order of the arbitration panel, the Discovery Material shall be treated as   Confidential Discovery Material subject to this Agreement.  In the event that a Receiving Party   fails to apply to the arbitration panel for a determination as to whether the Confidential   designation is appropriate within fourteen (14) business days of delivery of the written objection,   the Discovery Material to which the Receiving Party objected shall be treated as Confidential     

 

       CH\2041570.2   Discovery Material.  The burden of proof in any proceeding regarding whether the designation   of any document as “Confidential” is appropriate is at all times on the Party designating the   document as “Confidential.”   8. No Receiving Party shall disclose, summarize, describe, characterize, or   otherwise communicate Confidential Discovery Material except as permitted by this   Agreement.  Confidential Discovery Material shall not be disclosed, summarized, described,   characterized, or otherwise communicated in any way to anyone except:      a. The arbitration panel, all arbitration personnel (including all court reporters   employed in connection with this action) and all mediators;      b. Counsel of record in this action, and attorneys, paralegals, and other persons   employed or retained by such counsel who are assisting in the conduct of   this action;      c. Employees of the Parties or their Affiliates;      d. Actual and potential witnesses and deponents (and their counsel);      e. Experts, consultants and/or litigation support personnel (and employees of   such experts or consultants) who are not employees of any Party and who   are retained or consulted for the purpose of being retained by any Party in   connection with this action;      f. Any other person upon order of the arbitration panel or upon all Parties’   written agreement; and      g. Any person who was either an original author or recipient of a document   containing or constituting the Confidential Discovery Material.      All persons to whom Confidential Discovery Material is disclosed pursuant to Paragraphs 8   (c)-(g) above shall, prior to disclosure: (i) be advised that the Discovery Material is being   disclosed pursuant to and subject to the terms of this Agreement and may not be disclosed   other than pursuant to the terms hereof; and (ii) expressly agree to be bound by the terms of the   Agreement.  Execution of an Acknowledgement in the form attached hereto as Exhibit J-1   shall evidence such notification and agreement.     

 

       CH\2041570.2   9. All pleadings, including appendices that attach Confidential Discovery Material   as evidence and are presented to the arbitration panel shall be delivered in sealed envelopes   marked with the style and number of this action.      10. Nothing in this Agreement will be construed as limiting the Parties’ right to object   to any discovery or to object to the authenticity or admissibility of any evidence.    11. This Agreement will continue to be binding throughout and after the final   disposition of this action.  Within ninety (90) days after receiving notice of the entry of an award,   order, judgment or decree finally disposing of this action, all persons having received   Confidential Discovery Material will either return all Confidential Discovery Material and any   copies thereof (including summaries and excerpts) to the opposing Party or its attorney or   destroy all such Confidential Discovery Material and certify in writing to the opposing Party and   its attorney to that fact.  With regard to electronic copies of Confidential Discovery Material,   there is no obligation to return or destroy copies that are not reasonably accessible because of   undue burden or cost.     12. This Agreement shall not be construed to affect in any way the use, presentation,   introduction, or admissibility of any document, testimony, or other evidence at a deposition,   trial, or hearing in this arbitration; provided that any Party may ask the arbitration panel to hold   any proceeding in this action in camera on the grounds that such proceeding will involve or   relate to Confidential Discovery Material.   13. Nothing in this Agreement shall operate to require the production of documents,   testimony, and other materials and information that are privileged or otherwise protected from   discovery.   14. If any Party to this Agreement (a) is subpoenaed in another action, or (b) is served   with a demand in another action to which he or it is a Party, or (c) is served with any other legal   process by one not a party to this litigation seeking Confidential Discovery Material, the   Receiving Party shall give written notice to the Producing Party of such subpoena, demand, or   legal process within five (5) business days of receipt, and shall not produce any Discovery     

 

       CH\2041570.2   Material, unless Court-ordered, for a period of at least ten (10) business days after providing the   required notice to Producing Party.  If, within ten business (10) days of receiving such notice, the   Producing Party gives notice to the Receiving Party that the Producing Party opposes production   of its Confidential Discovery Material, the Receiving Party shall not thereafter produce such   Confidential Discovery Material except pursuant to a Court order requiring compliance with the   subpoena, demand, or other legal process.  The Producing Party shall be solely responsible for   asserting any objection to the requested production.  Nothing herein shall be construed as   requiring the Receiving Party to challenge or appeal any order requiring production of   Confidential Discovery Material covered by this Agreement, or to subject himself or itself to any   penalties for compliance with any legal process or order, or to seek any relief from the   arbitration panel.  Nothing herein shall prohibit the Receiving Party from producing Confidential   Discovery Material to any law enforcement or governmental agency which is within the scope of   such agency’s request and after providing at least five (5) business days’ notice to the Producing   Party and after providing the Producing Party a reasonable opportunity to object to such   production, provided that the production of any Confidential Discovery Material shall be at the   Producing Party’s cost and expense.   15. The Receiving Party may not disclose, summarize, describe, characterize, or   otherwise communicate documents or information designated as “Confidential – Attorney Eyes   Only” to any persons other than those identified in paragraphs 8(a), 8(b) and 8(e), who are the   only persons allowed to review such material.  This category of documents is reserved for a very   select group of documents and information and may only be used for that group of documents   that have not been disclosed to the public and that, if disclosed to the public, may cause   irreparable harm or damage to a Party.  The procedures for designating documents (paragraph 5),   objecting to any designation (paragraph 7), designating deposition testimony as confidential   (paragraphs 1 and 5) and filing “Confidential Materials” under seal (paragraph 9), shall apply to   documents designated “Confidential – Attorneys Eyes Only.”  Likewise, the duties and   responsibilities the Parties have to agree to permit retroactive designation (paragraph 6), to     

 

       CH\2041570.2   notify the other Party of a subpoena or order (paragraph 14) and to return or destroy documents   (paragraph 11) shall apply to documents designated as “Confidential – Attorney Eyes Only.”   16. The rights and obligations of the Parties to this Agreement are in addition to and   not in lieu of the rights and obligations of the Parties pursuant to the Supply Agreement,   including, without limitation, Section 21.4 thereof, which shall remain in full force and effect in   accordance with the terms thereof.      The provisions of this Agreement may be modified only upon written agreement of the   Parties.      AGREED:   Claimant ___________________________   ___________________________________   By: ________________________________      Respondent ___________________________   ___________________________________   By: ________________________________        

 

       CH\2041570.2   EXHIBIT J-1      ACKNOWLEDGEMENT      1.   My name is _______________________________________________________.  I live   at______________________________________________________________________.      2.  I am aware that the Confidentiality Agreement and Agreed Protective Order (the   “Agreement and Order”) have been entered in the Arbitration styled:   ________________________, AAA Case No. __________________ and a copy of the   Agreement and Order have been given to me.      3. I agree and promise that any documents, information, materials, or testimony, which are   protected under the Agreement and Order entered in this case and designated as   “Confidential Discovery Materials” will be used by me only in connection with the   above-captioned matter.      4. I agree and promise that I will not disclose or discuss such protected materials with   any person other than those individuals permitted by the Agreement and Order to   review such materials.      5. I understand and agree that any use of such confidential documents, information,   materials, or testimony obtained by me (or any portions or summaries thereof) in any   manner contrary to the provisions of the Agreement and Order may cause damage to one   or more of the Parties to the Arbitration and that I may be held responsible in a court of   law for causing such damage.           __________________________________        Signature           Printed Name:______________________         SWORN TO AND SUBSCRIBED BEFORE ME this _________ day of ____________, 20____.              __________________________________        NOTARY PUBLIC, STATE OF ________.           __________________________________        NOTARY’S PRINTED NAME           MY COMMISSION EXPIRES:___________________     

 

       CH\2041570.2   Exhibit K – Default Order Instructions         (I) Default Scheduled Car Order Instructions       In the event that Buyer fails to place one or more Orders for all or any portion of the   Scheduled Cars necessary to meet a Monthly Order Quantity by the applicable deadline, Seller   shall Order on Buyer’s behalf the number of Railcars necessary to fulfill such Monthly Order   Quantity by the applicable deadline.  All of such Railcars shall be the following Railcar Type:       Railcar Type – [*****]25    Seller Specification No. – [*****]    Gross Rail Load – [*****]    Typical Commodity – [*****]    Car Class – [*****]      (II) Default Unscheduled Car Order Instructions       In the event that Buyer fails to place one or more Orders for all or any portion of the   Unscheduled Cars required to be Ordered during an Order Year by the first day of the last month   of such Order Year, Seller shall Order on Buyer’s behalf the number of Railcars necessary to   fulfill the Unscheduled Car requirement for such Order Year.  All of such Railcars shall be the   following Railcar Type:       Railcar Type – [*****]    Seller Specification No. – [*****]    Gross Rail Load – [*****]    Typical Commodity – [*****]    Car Class – [*****]                                                      25 [*****] Certain information on this page has been omitted and filed separately with the Commission.    Confidential treatment has been requested with respect to the omitted portions.     

 

       CH\2041570.2   Exhibit L      Form of Seller’s Order Confirmation      [Date]         [Customer]   [Address]      Description of Railcar Types:      Railcar Type – Quantity:      Estimated Base Sales Price (per Railcar):   $      Estimated Scrap Surcharges (Included in Price):   $       Alternates:    1.     2.      Total – Alternates:    $      Seller’s Order Confirmation Price:    $      The Seller’s Order Confirmation Price is subject to adjustment in accordance with the terms and   conditions of the Supply Agreement dated November 3, 2014.      Delivery: Commencing ______________         

 

       CH\2041570.2   Exhibit M   Form of Invoice      TRINITY RAIL GROUP, LLC   2525 Stemmons Freeway - Box 568887 - Dallas, Texas  75356-8887   214-631-4420 - Fax 214-589-8939   FREIGHT CAR/TANK CAR   Sold To: Invoice Date:   Invoice No:   Cust No:   Cust PO No:   Our Order No:      Bill of Lading:   Ship To: Date Shipped:   Shipped Via:         Plant #___________   Salesman: Terms:   Shipped Description Unit Price Amount   2 3311 PD CAR, 5660 CF   RUNNING #'S:   GACX   9413   9414   2 $0.00   Remarks: Remit To: Trinity Industries, Inc.   P. O. Box 951716   Dallas, Texas  75395-1716   Wire Transfer To: Wachovia Bank   Atlanta, Georgia   ABA Routing #061-000-227   Trinity Industries, Inc.   Account #2000143245898           ** The total amount set out above is payable at the office of Trinity Industries, Inc. at Dallas, Dallas County, Texas.   Past due accounts will bear interest.  Invoice - DHL   ORIGINAL - CUSTOMER

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