Document:

Exhibit 10.1 FINALSARsAgreement2014

Exhibit 10.1

FORM OF
AMERICAN RAILCAR INDUSTRIES, INC.
2005 EQUITY INCENTIVE PLAN
STOCK APPRECIATION RIGHTS AGREEMENT

Name of SARs Holder:  
Grant Date:  
Total Number of SARs: 
Exercise Price Per SAR:  
SAR Term/Expiration Date: 
Pursuant to and in accordance with the American Railcar Industries, Inc. 2005 Equity Incentive Plan, as amended from time to time (the “Plan”), this Stock Appreciation Rights Agreement (the “Award Agreement” or “Agreement”) evidences the issuance to the person named above (the “SARs Holder”) by American Railcar Industries, Inc. (the “Company”), effective as of the date set forth above, of stock appreciation rights (the “SARs”). Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Plan.
1.Vesting Schedules.
Subject to the Plan and the other terms and conditions of this Agreement, the percentage of the Total Number of SARs (as it may be adjusted from time to time) shall vest on the respective dates if the SARs Holder is employed by the Company on the date(s) indicated below:
	
			
	Vesting Date
	# of Total 
SARs Vested
	% of Total Number of SARs Vested

	
			
	 
	 
	33.3%

	 
	 
	33.3%

	 
	 
	33.3%

2.Exercise.  The SARs issued to the SARs Holder shall be exercisable by delivery of an exercise notice in the form attached hereto as Exhibit A (the “Exercise Notice”), which shall state the election to exercise the SARs, the number of SARs being exercised (the “Exercised SARs”) and the SARs Holder’s agreement with respect to certain representations and agreements.  The SARs shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice.  The SARs may be exercised only in accordance with the Plan and the terms of this Agreement.  Upon the exercise of any SARs, the SARs Holder shall be paid by the Company, in 

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cash, an amount equal to the excess, if any, of (A) the aggregate Fair Market Value in respect of which the SARs are exercised, determined as of the time of such exercise, by the average high and low stock price on the Exercise day, over (B) the aggregate Exercise Price Per SAR of the SARs being exercised. No payments shall be made pursuant to the exercise of any SARs unless the issuance and exercise of the SARs complies with applicable laws, the Plan and this Award Agreement.  The timing of this payment will coincide with regular payroll cycles.
3.Adjustments.   In accordance with Section 3(c) of the Plan, the total number of SARs and the Exercise Price per SAR shall be adjusted from time to time to reflect changes in the Company’s capitalization and for certain other events as expressly set forth in the Plan.
4. No Rights as Stockholder.  Neither the issuance of SARs nor any action taken hereunder or thereunder or pursuant hereto or thereto shall be construed as (i) giving the SARs Holder any equity or interest of any kind in the Company or in any assets of the Company or any of its subsidiaries, or (ii) creating a trust of any kind or a fiduciary relationship of any kind between the SARs Holder and the Company or any of its subsidiaries.  The SARs Holder shall not have, in respect of the SARs or otherwise, any right to acquire or receive shares of common stock or other securities of the Company or any of its subsidiaries pursuant to the Plan or this Award Agreement or otherwise, shall not have any right to any adjustment or change hereunder as a result of any issuance of stock or other securities by the Company or any of its subsidiaries, and he or she shall not be deemed for any purpose to be a shareholder of the Company or any of its subsidiaries. 
5.Termination. Any vested SARs shall be exercisable for ninety (90) days after the SARs Holder’s employment with the Company (which for purposes of this Plan shall include employment with the Company and its direct and indirect consolidated subsidiaries) is terminated without Cause (as defined in the Plan); provided, however, if the employment is terminated by the Company for Cause, the SARs shall terminate immediately. Upon the SARs Holder’s death, any vested SARs may be exercised for a period of twelve (12) months from the date of death.  Notwithstanding anything to the contrary in the foregoing, in no event may any SARs be exercised after Expiration Date set forth above or as otherwise provided in the Plan.
6.Non-Transferable by the SARs Holder.  Except by will or the laws of descent, the SARs and all rights, title and interest therein granted hereunder are not transferable by the SARs Holder, directly or indirectly, by sale, assignment, pledge, hypothecation, transfer or otherwise (each a “Transfer”).  Except as provided above, no Transfer of the SARs granted hereunder, whether voluntary or involuntary, by the operation of law or otherwise, shall vest in any person or entity, any direct or indirect title, interest or right therein whatsoever, but immediately upon any such attempted Transfer, all SARs granted hereunder shall cease to exist and be extinguished and be of no further force or effect.
7.No Guarantee of Continued Service.  SARS HOLDER ACKNOWLEDGES AND AGREES THAT THE VESTING OF SARS PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING IN THE RELATIONSHIP AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING ENGAGED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER).  SARS HOLDER FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED EMPLOYMENT 

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FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH SARS HOLDER'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE THE RELATIONSHIP AT ANY TIME, WITH OR WITHOUT CAUSE.
8.Withholding.  All amounts paid to the SARs Holder hereunder shall be subject to  regular federal, state and, if applicable, local or foreign tax withholding and deductions imposed by any one or more federal, state, local and/or foreign governments, or pursuant to any foreign or domestic applicable law, rule or regulation.  
9.Entire Agreement; Governing Law.  The Plan is incorporated herein by reference.  The Plan and this Award Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and SARs Holder with respect to the subject matter hereof, and may not be modified (except as provided herein and in the Plan) adversely to the SARs Holder's interest except by means of a writing signed by the Company and SARs Holder.  This agreement is governed by the internal substantive laws but not the choice of law rules of the State of Delaware. 
10.Confidentiality, Non-Compete and Non-Solicit.  Pursuant to the terms and conditions of the Plan, SARs Holder has executed and delivered to the Company the Confidentiality, Non-Compete and Non-Solicit Agreement in form and substance acceptable to the Company.
11.SARs Holder Acknowledgement.  Receipt of a copy of the Plan represents that SARs Holder is familiar with the terms and provisions thereof, and hereby accepts this Award Agreement subject to all of the terms and provisions thereof.  SARs Holder has reviewed the Plan and this Award Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands all provisions of the Award Agreement.  SARs Holder hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Compensation Committee of the Board of Directors upon any questions arising under the Plan or this Award Agreement.  SARs Holder further agrees to notify the Company upon any change in the residence address indicated below.  A facsimile or photocopy of an executed counterpart of this Award Agreement shall be sufficient to bind the party or parties whose signature(s) appear thereon.

	
		
	SARs Holder:

By:  ________________________________   

	American Railcar Industries, Inc.:

By:  ________________________________   

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EXHIBIT A
to
Stock Appreciation Rights Agreement

2005 EQUITY INCENTIVE PLAN
EXERCISE NOTICE
American Railcar Industries, Inc.
100 Clark St.
St. Charles, MO 63301
Attention:  Treasury
		
	1.
	Exercise of SARs.  Effective as of today, ______________, 20___, the undersigned (“Holder”) hereby elects to exercise _________ SARs under and pursuant to the 2005 Equity Incentive  Plan (the “Plan”) and the Stock Appreciation Rights Agreement dated  ____________, 20___ (the “Award Agreement”).  Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Plan.  

		
	2.
	Representations of Holder.  Holder acknowledges that Holder has received, read and understood the Plan and the Award Agreement and agrees to abide by and be bound by their terms and conditions. 

		
	3.
	Tax Consultation.  Holder understands that Holder may suffer adverse tax consequences as a result of Holder's exercise of the SARs.  Holder represents that Holder has consulted with any tax consultants Holder deems advisable in connection with the purchase or disposition of the Shares and that Holder is not relying on the Company for any tax advice.

[Signatures appear on next page]

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SAR Exercise Notice

Submitted by:        Accepted by:

SARS HOLDER        AMERICAN RAILCAR INDUSTRIES, INC.

	
			
	

	 
	 

	Signature
	 
	By

	
			
	 
	 
	 

	Print Name
	 
	Title

Address:        

    

        
	
	
	 

	Date Received

        

2Exhibit 10.2 Fundler Offer Letter

Exhibit 10.2

February 26, 2014

Mr. Yevgeny Fundler
145 East 92nd Street
Apt 10-A
New York, NY 10128

Dear Yevgeny:

We are pleased to offer you the position of Senior Vice President & General Counsel with American Railcar Industries, Inc. (the “Company”) at a semi-monthly salary of $8,333.34 (annualized at $200,000), payable in accordance with the Company’s normal payroll practice.  Your employment is expected to begin on or about March 3, 2014.  In this position, you will report to me.  

Beginning in 2015, you will be eligible to participate in the Company’s annual bonus plan, with an annual bonus target of 50% of base salary.  Such bonus shall be deemed earned and payable only if the bonus is approved by the Company’s Compensation Committee of the Board of Directors (“Compensation Committee”) and will be subject to and paid in accordance with the terms and conditions of the annual bonus plan.  You must be an active employee of the Company on the date the bonus is paid.  For 2014, you are guaranteed to receive a bonus of 50% of your base salary, prorated for the number of completed months you are employed with the Company in 2014, which bonus will be paid no later than March 15, 2015, provided you are still actively employed with the Company on the date of payment.  

Beginning in 2014, you will also be eligible to participate in the Company’s long-term incentive plan, with an initial grant of stock appreciation rights (SARs) based on the increased value (if any) attributable to $80,000 worth of the Company’s stock above the market value as of the close of the market on your first day of employment.  Such grant shall be deemed earned and payable if the SARs are approved by the Company’s Compensation Committee and will be subject to and paid in accordance with the terms of the Company’s 2005 Equity Incentive Plan.  Generally, SARs vest equally over three years on the first, second, and third anniversaries of the grant date.  

Your salary and other compensation is subject to withholding for all applicable taxes required to be withheld by the Company as well as other authorized or required deductions.

You will be eligible to participate in the benefit programs made available to similarly-situated employees of the Company in accordance with the programs’ applicable terms and conditions.  You also will be entitled to vacation, which will accrue and must be used in accordance with the Company’s vacation policy.  Your prior continuous service with Icahn Enterprises LP and its affiliates will be counted towards eligibility for the Company’s benefits program (other than the Company’s 401(k) plan) and vacation.  Provided you participate in the Company’s 401(k) plan when you first become eligible, the Company will make a payment to you of $6,000 representing missed employer contributions since you will not be eligible for an employer contribution until you have one year of service with the Company.  The Company reserves the right to add, change, or terminate benefits at any time.

By July 31, 2014, you will establish and maintain a full-time permanent residency within 50 miles of the Company’s headquarters located at 100 Clark Street, St. Charles, MO 63301.  Your relocation will be considered complete on the date on which you finally move you and your family into a residential property under a residential lease of not less than 365 days (the “New Lease”) (collectively, the “Completion Date”) within 50 miles of the Company’s headquarters.  To assist you with expenses related to your relocation-including commutation on a weekly basis to and from New York City to St. Charles until such residency is established, the Company will on a weekly basis reimburse you for reasonable expenses incurred, including airfare and associated baggage fees, airport related taxi/car service fees, family moving expenses (with respect to the moving expenses, not to exceed the 

amounts estimated by a flat rate moving service as estimated in your February 20, 2014 email to Keith Schaitkin and Patricia Agnello, as we deem reasonable), car rental, house rental/temporary living and meal expenses for up to four (4) months until permanent housing is established, broker’s commission on the rental of a permanent/temporary residence, and the like.  The Company will also reimburse you approximately $3,000 in expenses your family already incurred by visiting the St. Louis area to look for permanent housing and to evaluate the school options for your children.  Additionally, the Company will reimburse you for (i) up to two (2) months of rent under the New Lease solely to the extent it overlaps with your New York City rental lease (not to exceed in the aggregate $7,200), and (ii) 2014-2015 private school deposit for your two children, to the extent such deposit is not refunded.  

During and after your employment, you shall not disclose to any third party any confidential or proprietary information of the Company, any of its affiliates or subsidiaries, or any of their respective owners, members, directors, managers or employees.  You further agree that during and after your employment you will not disparage, verbally or in writing, the Company, any of its affiliates or subsidiaries, or any of their respective owners, members, directors, managers, or employees.  All ideas, inventions, and intellectual property conceived, developed, or worked on by you (other than any of the foregoing that is unrelated to the Company’s business and conceived, developed, or worked on during your personal time) from the date your employment commences until the termination of such employment shall be the sole and exclusive property of the Company.  

At the appropriate time, you will be expected to execute certain employment documents (such as confidentiality and insider trading policies).

This letter does not constitute a contract or employment agreement.  You understand that your employment is “at will” and as such can be terminated at any time by either you or the Company, with or without cause and with or without prior notice.  Nothing contained in this letter shall limit or otherwise alter such at will employment.  Your employment will be subject to other policies, terms, and conditions that may be established by the Company from time to time.

We acknowledge that you will also be the General Counsel of American Railcar Leasing (“ARL”) as well as a consultant to Insight Portfolio Group LLC (“Insight”) and that you may provide ARL and Insight with the time needed to fulfill your responsibilities with respect to those positions.   

As an employee of the Company, you will be covered under its malpractice insurance policy (which the Company agrees to maintain with respect to your legal responsibilities, including the coverage for any legal opinions you may give to any third-parties in connection with the Company’s business)and will be eligible to access PLI for continuing legal education.  The Company will pay for your professional licensing and continuing legal education.

Please acknowledge the terms and conditions of this letter by signing where indicated below and return a signed original to me.

If you have any questions on this offer, please feel free to contact me.  We look forward to your joining our team!

Very truly yours,

Jeff Hollister
President & Interim Chief Executive Officer

Acknowledged this ____ day of ____________, 2014

_________________________________
Yevgeny Fundler

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