Document:

EX-4.2

 Exhibit 4.2 
  

 
 ZQ|CERT#|COY|CLS|RGSTRY|ACCT#|TRANSTYPE|RUN#|TRANS#

COMMON STOCK 
PAR VALUE $0.01 
Certificate Number ZQ00000000 
ADS 
COMMON STOCK 
THIS CERTIFICATE IS TRANSFERABLE IN CANTON, MA, JERSEY CITY, NJ AND COLLEGE
STATION, TX 
Shares 
**000000****************** 
***000000***************** 
****000000**************** 
*****000000*************** 
******000000************** 
Advanced Drainage Systems, Inc. 
INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

THIS CERTIFIES THAT 
MR. SAMPLE & MRS. SAMPLE & MR.
SAMPLE & MRS. SAMPLE 
CUSIP XXXXXX XX X 
SEE REVERSE FOR CERTAIN
DEFINITIONS 
is the owner of 
***ZERO HUNDRED THOUSAND 
ZERO HUNDRED AND ZERO*** 
FULLY-PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK OF 
Advanced Drainage Systems, Inc. (hereinafter called the “Company”), transferable on the books of the Company in person or by duly authorized attorney, upon surrender of
this Certificate properly endorsed. This Certificate and the shares represented hereby, are issued and shall be held subject to all of the provisions of the Certificate of Incorporation, as amended, and the By-Laws, as amended, of the Company
(copies of which are on file with the Company and with the Transfer Agent), to all of which each holder, by acceptance hereof, assents. This Certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar.

Witness the facsimile seal of the Company and the facsimile signatures of its duly authorized officers. 
Chairman, President and Chief Executive Officer 
Executive Vice President, Chief Financial
Officer, 
Secretary and Treasurer 
Advanced Drainage Systems, Inc. 
SEAL 1966 
DATED DD-MMM-YYYY 
COUNTERSIGNED AND REGISTERED: 
COMPUTERSHARE TRUST COMPANY, N.A. 
TRANSFER AGENT AND REGISTRAR, 
By 
AUTHORIZED SIGNATURE 
ADS 
PO BOX 43004, Providence, RI 02940-3004 
MR A SAMPLE 
DESIGNATION (IF ANY) 
ADD 1 ADD 2 ADD 3 ADD 4 
CUSIP XXXXXX XX X 
Holder ID XXXXXXXXXX 
Insurance Value 1,000,000.00 
Number of Shares 123456 
DTC 123456789 123456789012345 
Certificate Numbers Num/No. Denom. Total 
1234567890/1234567890 1 1 1 
1234567890/1234567890 2 2 2 
1234567890/1234567890 3 3 3 
1234567890/1234567890 4 4 4 
1234567890/1234567890 5 5 5 
1234567890/1234567890 6 6 6 
Total Transaction 7 
1234567 

 

 
 ADVANCED DRAINAGE SYSTEMS, INC. 
THE COMPANY WILL
FURNISH WITHOUT CHARGE TO EACH SHAREHOLDER WHO SO REQUESTS, A SUMMARY OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OF THE COMPANY AND THE QUALIFICATIONS, LIMITATIONS OR
RESTRICTIONS OF SUCH PREFERENCES AND RIGHTS, AND THE VARIATIONS IN RIGHTS, PREFERENCES AND LIMITATIONS DETERMINED FOR EACH SERIES, WHICH ARE FIXED BY THE CERTIFICATE OF INCORPORATION OF THE COMPANY, AS AMENDED, AND THE RESOLUTIONS OF THE BOARD OF
DIRECTORS OF THE COMPANY, AND THE AUTHORITY OF THE BOARD OF DIRECTORS TO DETERMINE VARIATIONS FOR FUTURE SERIES. SUCH REQUEST MAY BE MADE TO THE OFFICE OF THE SECRETARY OF THE COMPANY OR TO THE TRANSFER AGENT. THE BOARD OF DIRECTORS MAY REQUIRE THE
OWNER OF A LOST OR DESTROYED STOCK CERTIFICATE, OR HIS LEGAL REPRESENTATIVES, TO GIVE THE COMPANY A BOND TO INDEMNIFY IT AND ITS TRANSFER AGENTS AND REGISTRARS AGAINST ANY CLAIM THAT MAY BE MADE AGAINST THEM ON ACCOUNT OF THE ALLEGED LOSS OR
DESTRUCTION OF ANY SUCH CERTIFICATE. 
The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they
were written out in full according to applicable laws or regulations: 
TEN COM - as tenants in common 
TEN ENT - as tenants by the entireties 
JT TEN - as joint tenants with right of survivorship
and not as tenants in common 
UNIF GIFT MIN ACT - Custodian 
(Cust) (Minor)

under Uniform Gifts to Minors Act 
(State) 
UNIF TRF MIN ACT - Custodian (until age ) 
(Cust) 
under Uniform Transfers to Minors Act 
(Minor) (State) 
Additional abbreviations may also be used though not in the above list. 
PLEASE INSERT SOCIAL
SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 
For value received, hereby sell, assign and transfer unto 
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE) 
Shares of
the common stock represented by the within Certificate, and do hereby irrevocably constitute and appoint Attorney to transfer the said stock on the books of the within-named Company with full power of substitution in the premises. 
Dated: 20 
Signature: 
Signature: Notice: The signature to this assignment must correspond with the name as written upon the face of the certificate, in every particular, without alteration or
enlargement, or any change whatever. 
Signature(s) Guaranteed: Medallion Guarantee Stamp 
THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings and Loan Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED
SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15. 
The IRS requires that we report the cost basis of certain shares acquired after
January 1, 2011. If your shares were covered by the legislation and you have sold or transferred the shares and requested a specific cost basis calculation method, we have processed as requested. If you did not specify a cost basis calculation
method, we have defaulted to the first in, first out (FIFO) method. Please visit our website or consult your tax advisor if you need additional information about cost basis. 
If you do not keep in contact with us or do not have any activity in your account for the time periods specified by state law, your property could become subject to state unclaimed
property laws and transferred to the appropriate state. 
1234567ARIMIPAgreement2014

Exhibit 10.1

AMERICAN RAILCAR INDUSTRIES, INC.
Management Incentive Plan for Fiscal Year 2014

I.PURPOSE
The American Railcar Industries, Inc. Management Incentive Plan (the “Plan”) has been established for Fiscal Year 2014 for those Participants defined under Section III below.

The purpose of this Plan is to provide additional compensation to Participants for their contribution to the achievement of the objectives of the Company, encouraging and stimulating superior performance by such individuals, and assisting in attracting and retaining highly qualified key employees.
II.    DEFINITIONS
A.    Base Salary equals the base annual salary for each Participant, effective as of January 1, 2014.  If a Participant’s Base Salary changes during the year, the Base Salary used to calculate the Bonus under this Plan will be prorated for the portion of the year each Base Salary was in effect based on a 12-month year. For the avoidance of doubt, Base Salary shall be determined before reductions for contributions (if any) under Code Section 401(k), and shall not include, without limitation and to the extent applicable, (i) any Financial Award under the Plan; (ii) variable compensation such as incentive awards, commissions or spot bonuses, if any; (iii) imputed income from such programs as life insurance, auto allowance, or non-recurring earnings such as moving or relocation expenses, allowances or perquisites, or reimbursed business expenses; (iv) long-term incentive compensation (including stock or stock-equivalent awards, if any); or (v) overtime, unless required to be included in Base Salary for purposes of the Plan in accordance with applicable law.
B.    Chief Executive Officer means the Chief Executive Officer of American Railcar Industries, Inc.
C.    Chief Financial Officer means the Chief Financial Officer of American Railcar Industries, Inc.
D.    Code means the Internal Revenue Code of 1986, as amended.
E.    Company means American Railcar Industries, Inc. and its subsidiaries and its successors and assigns.
F.    Compensation Committee means the Compensation Committee of the Board of Directors of the Company.
G.    Financial Awards mean the awards that Participants may earn pursuant to the Plan.
H.    Fiscal Year means the Company’s Fiscal Year beginning January 1, 2014 and ending December 31, 2014.
I.    Plan means the American Railcar Industries, Inc. Management Incentive Plan, as from time to time amended.
III.    EMPLOYEES COVERED BY THIS PLAN
Participating employees of the Company selected to participate in the Plan shall be subject to the review and approval by the Compensation Committee (each a “Participant”).  If a Participant vacates 

a listed position, the employee selected as the replacement would be eligible to participate in the Plan pro-rata for the months in the position, subject to approval by the Chief Executive Officer (except that, in the case of Participants who are executive officers, subject to the approval by the Compensation Committee in its sole discretion).  Notwithstanding the foregoing, no Participant shall be eligible to participate in the Plan unless he or she has returned to the Company an executed Confidentiality Agreement, Non-Compete and Non-Solicitation Agreement in connection with the Plan or any former or prior management incentive plan and acknowledged its understanding and acceptance of the Company’s policies consistent with the Company practices and procedures. 

In order to receive a payout under the Plan, on the actual bonus payout date, a Participant must be in good standing and not on a performance improvement plan or in corrective action status as a result of poor performance during the Fiscal Year.
IV.    FINANCIAL AWARD
A Participant in the Plan shall be entitled to a Financial Award computed as the product of:
	
									
	

Participant’s Base Salary
	

X
	

Target Bonus Percentage
	

X
	

Financial Performance as a % of  Target (on a 0% - 150% scale)
	

X
	

Individual Performance Rating (on a 0% - 150% scale)

	

=
	

Participant’s Financial Award (“Bonus”)

A.    “Participant’s Base Salary” shall be the Base Salary (as defined in Section II) of a Participant.
B.    “Target Bonus Percentage” that is selected for each Participant shall be subject to the review and approval by the Compensation Committee.
C.    “Individual Performance Rating” shall be based on an individual performance evaluation as determined in accordance with Section VI below.
D.    “Financial Performance as a % of Target” shall be determined in the manner set forth in Exhibit A based on the attainment of the “Adjusted EBITDA” target for the Fiscal Year. The financial target shall be the attainment by the Company in the Fiscal Year of an Adjusted EBITDA target established by the Compensation Committee. If the Company’s Adjusted EBITDA for the Fiscal Year is less than 90.0% of such target, no Financial Awards shall be made under this Plan.
It is intended that increases and decreases in Financial Awards that result from the application of Individual Performance Rating shall not result in an increase in the aggregate Plan payout that would otherwise apply based on the Financial Performance as a % of Target (as set forth on the attached Exhibit A) and Individual Performance Rating at the 100% level (such aggregate Plan payout being referred to as the “Maximum Bonus Pool”), and in the event that the Financial Awards otherwise calculated in accordance with this Section IV would exceed the Maximum Bonus Pool, each of the Financial Awards calculated on that basis shall be reduced pro rata in order that the aggregate Financial Awards shall not exceed the Maximum Bonus Pool.

V.    FINANCIAL PERFORMANCE TARGET AND PAYOUT RANGES
The financial performance target and payout ranges used under this Plan in the Fiscal Year have been approved by the Compensation Committee based on the annual business plan and are set forth in Exhibit A.  The payout percentage for the performance target will be based on the level of attainment as set forth in Exhibit A.  For purposes of the Plan (including, without limitation, Exhibit A), “Adjusted EBITDA” shall mean operating income including joint venture earnings (or loss) and other income (or loss), adjusted to exclude stock based compensation expense (or income), and before interest, taxes, depreciation, and amortization.

At any time prior to the final determination of awards, the Compensation Committee may, in its sole discretion, increase, decrease, or otherwise adjust performance measures, targets, and payout ranges used hereunder, as a result of extraordinary or non-recurring events, changes in applicable accounting rules or principles, changes in the Company’s methods of accounting, changes in applicable law, changes due to consolidations, acquisitions, or reorganizations affecting the Company and its subsidiaries and affiliates, or other similar changes in the Company’s business.

VI.    INDIVIDUAL PERFORMANCE RATING
A Participant’s personal goals shall be developed by the Participant’s supervisor for the Fiscal Year. The personal goals of the Chief Executive Officer and the other executive officers will be subject to the review and approval by the Compensation Committee. Attainment of such goals and other performance criteria, both quantifiable and non-quantifiable, may be used to arrive at an overall individual performance rating from 0% to 150%.  Such criteria shall be applied consistently to Participants with similar duties pursuant to an evaluation process to be reviewed and approved by the Company’s Human Resources Department.  Criteria that may be weighed in arriving at an individual performance rating will be based on such personal goals and may include, without limitation:

		
	•
	Achievement of performance targets established in Company’s annual budget

		
	•
	Development of staff

		
	•
	Successful development of new accounts/products

		
	•
	Improvement in product programs

		
	•
	Attainment of self-development objectives

		
	•
	Control or reduction of operating expenses by business unit

		
	•
	Safety record of facility or facilities

		
	•
	Quality program achievement

		
	•
	Business process improvements

The supervisor will assign a personal performance rating, from 0% to 150%, reflecting the Participant’s performance during the Fiscal Year.  The Chief Executive Officer reserves the right, in his sole discretion, to accept the personal performance percentage recommendation for each Participant or to modify any personal performance percentage for any Participant to achieve such dispersion of performance ratings as the Chief Executive Officer deems appropriate; provided, however, that the personal performance percentage recommendation of the Chief Executive Officer and other executive officers shall be subject to the review and approval by the Compensation Committee in its sole discretion.

VII.    COMPUTATION AND DISBURSEMENT OF FUNDS
As soon as practicable after the close of the Fiscal Year and approval of the Company’s annual financial statements, the Chief Financial Officer shall calculate the applicable financial and operating performance measures under the Plan.  The Chief Financial Officer shall then calculate the proposed payout under the Plan based upon the proposed achievement of the financial and operating performance measures and the achievement of the Participants’ Individual Performance Ratings.  The proposed payout shall be verified by the Chief Executive Officer and presented to the Compensation Committee for review and final approval.  Once approved, payment of the Financial Awards shall be made within 30 days after completion of the annual audit, but not later than September 30th of the calendar year following the fiscal year for which the award is earned. Any determination by the Compensation Committee made under this paragraph shall be final and binding on all parties.

Each Participant shall be liable for any and all federal, state, provincial, local or foreign taxes, pension plan contributions, employment insurance premiums, social insurance contributions, amounts payable to a governmental and/or regulatory body in the Participant’s country and other levies of any kind required by applicable laws to be deducted or withheld with respect to the awards granted pursuant to the Plan (collectively, the “Withholding Taxes”). The Company and its subsidiaries shall have the right to deduct and withhold all required Withholding Taxes from any payment or other consideration deliverable to the Participant.
VIII.    PRORATION OF FINANCIAL AWARDS
Any Participant who is not employed with the Company in a Bonus-eligible position on or prior to October 1, 2014 shall not be eligible to receive a Financial Award for the Fiscal Year, except as otherwise provided by the Compensation Committee.  Any Participant who is eligible for a Financial Award but who did not serve in a Bonus-eligible position during the entire 2014 Fiscal Year will be eligible to receive a pro-rated Bonus payment based on the amount of time such eligible Participant was actively and continuously employed in an eligible position during the Fiscal Year.
		
	•
	New Hires and Rehires – The Financial Award will be prorated based upon the number of full months the Participant was employed during the Fiscal Year.  For example, a Participant initially hired on July 1st would be eligible for 50% of the annual Financial Award.  In the case of rehires, there is no credit for prior service and the rehire date must occur prior to October 1st in order for the Participant to be Bonus-eligible under the Plan for the Fiscal Year.

		
	•
	Leaves of Absence - Time taken during a leave of absence (including disability leave) is not credited toward eligibility for a Financial Award; therefore, awards will be prorated for the length of time on leave of absence.  Furthermore, payments of Financial Awards are not considered earned and payable unless and until the Participant returns to work, with the exception of military leave.  If the leave of absence lasts nine months or more during the Fiscal Year, the Participant will not have met the three-month eligibility required to earn a Bonus for that Fiscal Year.

		
	•
	Promotions and Demotions – If the action results in a movement from one Bonus-eligible position to another Bonus-eligible position (with either a higher or lower Bonus target) a prorated Financial Award will be calculated.  The Financial Award will be calculated separately by factoring the time in each Bonus-eligible position by the corresponding Bonus target and Base Salary during the Participant’s tenure in each position.  However, if a 

Participant is both promoted and later demoted during the Fiscal Year, the Participant’s entire Bonus eligibility and Bonus target percent will be determined by the lower grade.
		
	•
	Status Change

		
	◦
	Change in employment status – The Financial Award is not payable unless the Participant has occupied a Bonus-eligible position for at least three months during the Fiscal Year on a full-time basis (i.e., 40-hour or more per week), unless specifically approved by the company’s CEO, and meets all eligibility criteria during the last full quarter of the Fiscal Year, i.e., from October 1st through December 31st.  The Financial Award will be based upon the Base Salary and the annual Bonus target while in the Bonus-eligible position.

		
	◦
	Bonus-eligible position to a non-Bonus eligible position – The Financial Award will be prorated based upon the time in a Bonus-eligible position as long as the Participant was in the position for a minimum of three months during the Fiscal Year.  A Participant must occupy a Bonus-eligible position prior to October 1st in order to be eligible to receive a Bonus payment for the Fiscal Year. The Financial Award will be based upon the Base Salary and the annual Bonus target while in the Bonus-eligible position.

		
	◦
	Non-Bonus-eligible position to a Bonus-eligible position – The Financial Award will be prorated based on the time worked, the corresponding Bonus target, and the Base Salary in effect while in the Bonus-eligible position as long as the Participant was in the eligible position for a minimum of three months during the Fiscal Year.  A Participant must move into the Bonus-eligible position prior to October 1st in order to be eligible to receive a Bonus payment for the Fiscal Year.

IX.    FORFEITURE / RECOUPMENT OF FINANCIAL AWARDS
Financial Awards are not considered earned until they are approved by the Compensation Committee and are actually paid by the Company.  Consequently, a Participant whose employment with the Company is voluntarily or involuntarily terminated prior to the actual Financial Award payment date will be ineligible for payment of the Financial Award, except as otherwise provided by the Compensation Committee in its sole and absolute discretion, in which case any such Financial Award to the terminated employee shall be paid at the time Financial Awards are paid to active employees pursuant to Section VII above. 
If the Compensation Committee, in its sole and absolute discretion, determines that (i) there has been misconduct or a gross dereliction of duty resulting in either a violation of law or Company policy or procedures, that, in either case, causes significant financial or reputational harm to the Company (or any of its affiliates), and that a Participant committed the misconduct/ gross dereliction of duty, or failed in his or her responsibility to manage or monitor the applicable conduct or risk; (ii) a conduct of a Participant involves an immoral act which is reasonably likely to impair the reputation of the Company (or any of its affiliates); (iii) a Participant committed, or was indicted for, a felony or any crime involving fraud or embezzlement or dishonesty or was convicted of, or entered a plea of nolo contendere to a misdemeanor (other than a traffic violation) punishable by imprisonment under federal, state or local law; (iv) a Participant violated any securities or employment laws or regulations; (v) a Participant materially breached the Confidentiality Agreement, Non-Compete and Non-Solicitation Agreement; or (vi) a Participant embezzled and/or 

misappropriated any property of the Company (or any of its affiliates) or committed any act involving fraud with respect to the Company (or any of its affiliates), then, to the extent not prohibited by applicable law, the Compensation Committee, in its sole and absolute discretion, may seek reimbursement from such Participant (and such Participant shall be obligated to repay) all or any portion of any payments made to such Participant in respect of the Financial Award; provided, however, that the Compensation Committee may only seek such reimbursement in respect of payments of the Financial Award  made to a Participant within the three-year period preceding the date that the Compensation Committee makes a determination that there has been misconduct or a gross dereliction of duty.
If the Compensation Committee determines, in its sole and absolute discretion, that calculations underlying the performance measures and targets, including but not limited to mistakes in the Company’s financial statements for the Fiscal Year, were incorrect, then the Compensation Committee may, in its sole and absolute discretion, seek to recover the amount of any payment made to Participants that exceeded the amount that would have been paid based on the corrected calculations; provided, however, that the Compensation Committee may only seek to recover such amounts within the three-year period preceding the date that the Compensation Committee makes a determination that the calculations were incorrect.

To the extent not prohibited by applicable law, if a Participant is an officer of the Company, or, if applicable, has otherwise been designated by the Board of Directors as an “officer” for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, the Board of Directors shall seek reimbursement of any payment made to such Participant in respect of the Financial Award in the event of a restatement of the Company’s (or any of its subsidiaries’) financial results (occurring due to material noncompliance with any financial reporting requirements under applicable securities laws) that reduced a previously granted payment made to such Participant in respect of the Financial Award.  In that event, the Compensation Committee may, in its sole and absolute discretion, seek to recover the amount of any such payment made to the Participant that exceeded the amount that would have been paid based on the restated financial results.
If the Company subsequently determines that it is required by law to apply a “clawback” or alternate recoupment provision to the Financial Award, under the Dodd-Frank Wall Street Reform and Consumer Protection Act or otherwise, then such clawback or recoupment provision also shall apply to such Financial Award, as if it had been included on the effective date of this Plan.
To the extent not prohibited under applicable law, the Company, in its sole and absolute discretion, will have the right to set off (or cause to be set off) any amounts otherwise due to a Participant from the Company in satisfaction of any repayment obligation of such Participant hereunder, provided that any such amounts are exempt from, or set off in a manner intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended.
For the avoidance of doubt, the Company’s rights under this Section IX shall apply to Participants, without regard to whether any such Participant is currently providing, or previously provided, services to the Company as an employee.
X.    ADMINISTRATION
This Plan shall be administered by the Company’s Human Resources Department, subject to the control and supervision of the Chief Executive Officer and the Compensation Committee.  In the event of a claim or dispute brought forth by a Participant (other than the Chief Executive Officer), 

the decision of the Chief Executive Officer as to the facts in the case and the meaning and intent of any provision of the Plan, or its application, shall be final, binding, and conclusive. In the event of a claim or dispute brought forth by the Chief Executive Officer, the decision of the Compensation Committee as to the facts in the case and the meaning and intent of any provision of the Plan, or its application, shall be final, binding, and conclusive.
XI.    NO EMPLOYMENT CONTRACT; FUTURE PLANS 
Participation in this Plan shall not confer upon any Participant any right to continue in the employ of the Company nor interfere in any way with the right of the Company to terminate any Participant’s employment at any time.  The Company is under no obligation to continue the Plan in future years.  Participation in this Plan shall also supersede and eliminate any incentive bonus plan or other contractual bonus arrangement (including, without limitation, any sales commission, safety incentive, personal incentives and project incentives) that the Participant has or may have had by contract or otherwise, except as may be expressly provided in the acceptance document that such Participant executes.
XII.    AMENDMENT OR TERMINATION
The Compensation Committee may at any time, or from time to time, in its sole and absolute discretion, (a) amend, alter or modify the provisions of this Plan, (b) terminate this Plan, or (c) terminate the participation of an employee or group of employees in this Plan; provided, however, that in the event of the termination of this Plan or a termination of participation, the Compensation Committee, in its sole and absolute discretion, may determine that a prorated award is payable to employees who were Participants in this Plan under such terms and conditions as established by the Compensation Committee in its sole and absolute discretion. 

XIII.    GENERAL PROVISIONS
A.    No rights of the Participants under this Plan shall be transferable or assignable by a Participant, either voluntarily or involuntarily by way of encumbrance, pledge, attachment, levy or charge of any nature (except as may be required by state or federal law).
B.    Nothing in the Plan shall require the Company to segregate or set aside any funds or other property for the purpose of paying any portion of an award.  No Participant, beneficiary or other person shall have any right, title or interest in any amount awarded under the Plan prior to the payment of such award to him or her.  A Participant’s rights to a Financial Award under this Plan are no greater than those of unsecured general creditors of the Company.
C.    By participating in the Plan, each Participant hereunder shall consent to the holding and processing of personal information provided by such Participant to the Company, any affiliate of the Company, trustee or third party service provider, for all purposes relating to the operation of the Plan. These include, but are not limited to: (i) administering and maintaining Participant records; (ii) providing information to the Company, its affiliates, trustees of any employee benefit trust, registrars, brokers or third party administrators of the Plan; (iii) providing information to future purchasers or merger partners of the Company or any of its affiliates, or the business in which the Participant works; and (iv) transferring information about the Participant to any country or territory that may not provide the same protection for the information as the Participant’s home country.

D.    This Plan is governed by the laws of the State of New York and as such will be construed under and in accordance with the laws of the State of New York without regard to conflicts of law.

    
	
				
	 
	 
	 
	 

	 
	Chief Executive Officer
	 
	Date

	 
	American Railcar Industries, Inc.
	 
	 

EXHIBIT A

	
						
	FINANCIAL PERFORMANCE FACTOR

	 
	 
	 
	 
	 

	 
	% of Target Achieved
	 
	Financial Performance as a % of Target
	 

	 
	 
	 
	 
	 

	 
	Less than 90.0%
	 
	0
	%
	 

	 
	90.0%
	 
	50.0
	%
	 

	 
	91.0%
	 
	55.0
	%
	 

	 
	92.0%
	 
	60.0
	%
	 

	 
	93.0%
	 
	65.0
	%
	 

	 
	94.0%
	 
	70.0
	%
	 

	 
	95.0%
	 
	75.0
	%
	 

	 
	96.0%
	 
	80.0
	%
	 

	 
	97.0%
	 
	85.0
	%
	 

	 
	98.0%
	 
	90.0
	%
	 

	 
	99.0%
	 
	95.0
	%
	 

	 
	100.0%
	 
	100.0
	%
	 

	 
	101.0%
	 
	102.0
	%
	 

	 
	102.0%
	 
	104.0
	%
	 

	 
	103.0%
	 
	106.0
	%
	 

	 
	104.0%
	 
	108.0
	%
	 

	 
	105.0%
	 
	110.0
	%
	 

	 
	106.0%
	 
	112.0
	%
	 

	 
	107.0%
	 
	114.0
	%
	 

	 
	108.0%
	 
	116.0
	%
	 

	 
	109.0%
	 
	118.0
	%
	 

	 
	110.0%
	 
	120.0
	%
	 

	 
	111.0%
	 
	122.0
	%
	 

	 
	112.0%
	 
	124.0
	%
	 

	 
	113.0%
	 
	126.0
	%
	 

	 
	114.0%
	 
	128.0
	%
	 

	 
	115.0%
	 
	130.0
	%
	 

	 
	116.0%
	 
	132.0
	%
	 

	 
	117.0%
	 
	134.0
	%
	 

	 
	118.0%
	 
	136.0
	%
	 

	 
	119.0%
	 
	138.0
	%
	 

	 
	120.0%
	 
	140.0
	%
	 

	 
	121.0%
	 
	142.0
	%
	 

	 
	122.0%
	 
	144.0
	%
	 

	 
	123.0%
	 
	146.0
	%
	 

	 
	124.0%
	 
	148.0
	%
	 

	 
	125% and above
	 
	150.0
	%

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