Document:

exv10w2

Exhibit 10.2

RAILAMERICA, INC.

OMNIBUS STOCK INCENTIVE PLAN

Section 1. Purpose of Plan.

          The name of this plan is the RailAmerica, Inc. Omnibus Stock Incentive Plan (as amended from
time to time, the “Plan”). The Plan was adopted by the Board on June 3, 2008 and approved by the
stockholders of the Company on June 23, 2008, prior to any initial public offering of Company
Stock. The purpose of the Plan is to provide additional incentive to selected management
employees, directors and Consultants of the Company or its Subsidiaries whose contributions are
essential to the growth and success of the Company’s business, in order to strengthen the
commitment of such persons to the Company and its Subsidiaries, motivate such persons to faithfully
and diligently perform their responsibilities and attract and retain competent and dedicated
persons whose efforts will result in the long-term growth and profitability of the Company. The
Plan is also designed to encourage stock ownership by such persons, thereby aligning their interest
with the interests of the Company’s stockholders, and, if Section 162(m) of the Code applies, to
permit the payment of compensation that qualifies as performance-based compensation thereunder. To
accomplish such purposes, the Plan provides that the Company may grant the following Awards: (a)
Options, (b) Stock Appreciation Rights, (c) Restricted Shares, Deferred Shares, Performance Shares
or Other Stock-Based Awards (including, without limitation, unrestricted Shares), or (d) any
combination of the foregoing. Capitalized terms in this Section 1 not defined herein shall be
defined as provided in Section 2 hereof.

Section 2. Definitions.

          For purposes of the Plan, the following terms shall be defined as set forth below:

               (a) “Administrator” means the Board or, if and to the extent the Board does not administer
the Plan, the Committee, in accordance with Section 3 hereof.

               (b) “Affiliate” means an affiliate of the Company (or other referenced entity, as the case
may be) as defined in Rule 12b-2 promulgated under Section 12 of the Exchange Act.

               (c) “Award” means a grant under the Plan of Options, Stock Appreciation Rights, Restricted
Shares, Deferred Shares, Performance Shares or Other Stock-Based Award (including, without
limitation, unrestricted Shares).

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               (d) “Award Document” means any written agreement, contract or other instrument or document
evidencing an Award.

               (e) “Beneficial Owner” (or any variant thereof) has the meaning defined in Rule 13d-3 under
the Exchange Act.

               (f) “Board” means the Board of Directors of the Company.

               (g) “Cause” shall have the meaning set forth in the Participant’s employment or other
agreement with the Company, any Subsidiary or any Affiliate, provided that if the Participant is
not a party to any such employment or other agreement or such employment or other agreement does
not contain a definition of Cause, then Cause means (i) the continued failure by the Participant to
substantially perform his or her duties and obligations to the Company or any Subsidiary or
Affiliate, including without limitation, repeated refusal to follow the reasonable directions of
his or her employer, intentional violation of law in the course of performance of the duties of
Participant’s employment with the Company or any Subsidiary or Affiliate, engagement in misconduct
which is materially injurious to the Company or any Subsidiary or Affiliate, repeated absences from
work without a reasonable excuse, or intoxication with alcohol or illegal drugs while on the
Company’s or any Subsidiary’s or Affiliate’s premises during regular business hours (other than
any such failure resulting from his or her incapacity due to physical or mental illness); (ii)
fraud or material dishonesty against the Company or any Subsidiary or Affiliate; or (iii) a
conviction or plea of guilty or nolo contendere for the commission of a felony or a crime involving
material dishonesty. Determination of Cause shall be made by the Administrator in its sole
discretion.

               (h) “Change in Capitalization” means any (i) merger, consolidation, reclassification,
recapitalization, spin-off, spin-out, repurchase or other reorganization or corporate transaction
or event, (ii) dividend (whether in the form of cash, Stock, or other property), stock split or
reverse stock split, (iii) combination or exchange of shares, (iv) other change in corporate
structure or (v) declaration of a special dividend (including a cash dividend) or other
distribution, which, in any such case, the Administrator determines, in its sole discretion,
affects the Shares such that an adjustment pursuant to Section 5 hereof is required.

               (i) “Change in Control” means an event or series of events as a result of which the
Fortress Entities, collectively, directly or indirectly legally or beneficially own less than 50%
of the voting stock (or other equity interest) of the Company, in each case adjusted pursuant to
any stock (or share) split, stock (or share) dividend, recapitalization or reclassification of the
capital of the Company; provided, however, that a “Change in Control” shall not be deemed to occur:

               (1) upon an acquisition, merger, amalgamation, continuation into another jurisdiction or
other business combination involving the Company, including the sale of all or substantially all of
the assets of the Company (each, a “Business Combination”), if one or more Fortress Entities
collectively (I) directly or indirectly

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legally or beneficially own at least 30% of the voting stock (or other equity interest) of the
Company or the surviving/acquiring entity, as the case may be, and (II) continue to be the largest
shareholder (or other holder of equity) of the Company or the surviving/acquiring entity, as the
case may be, following such Business Combination, and a “Change in Control” will not result after
any such Business Combination so long as the conditions set forth in clauses (I) and (II) continue
to be satisfied; or

               (2) (I) upon an IPO (without regard to the percentage of voting stock (or other equity
interest) of the Company directly or indirectly legally or beneficially owned by the Fortress
Entities immediately after such IPO) or (II) without limiting clause (I), if at any time following
an IPO one or more Fortress Entities, collectively, directly or indirectly legally or beneficially
own at least 30% of the voting stock (or other equity interest) of the Company and are the largest
shareholder (or other holder of equity) of the Company.

               (j) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any
successor thereto.

               (k) “Committee” means any committee or subcommittee the Board may appoint to administer the
Plan. Subject to the discretion of the Board, the Committee shall be composed entirely of
individuals who meet such of the following qualifications as shall be applicable at the relevant
time: the qualifications of an “outside director” within the meaning of Section 162(m) of the
Code, a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act and any
other qualifications required by the applicable stock exchange on which the Stock is traded. If at
any time or to any extent the Board shall not administer the Plan, then the functions of the
Administrator specified in the Plan shall be exercised by the Committee. Except as otherwise
provided in the Company’s Certificate of Incorporation or Bylaws, as amended from time to time, any
action of the Committee with respect to the administration of the Plan shall be taken by a majority
vote at a meeting at which a quorum is duly constituted or unanimous written consent of the
Committee’s members.

               (l) “Company” means RailAmerica, Inc. (or any successor, except when the term “Company” is
used in the “Change in Control” definition).

               (m) “Consultant” means a consultant or advisor who is a natural person rendering bona fide
services to the Company or any Subsidiary, including, without limitation, any such person who is
employed by Florida East Coast Railway, L.L.C. or any of its Subsidiaries.

               (n) “Deferred Shares” means the right granted pursuant to Section 9 hereof to receive
Shares at the end of a specified deferral period or periods and/or upon attainment of specified
performance objectives.

               (o) “Disability” means that a Participant (i) as determined by the Administrator in its
sole discretion, is unable to engage in any substantial gainful activity

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by reason of any medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less than twelve (12)
months, or (ii) is, by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months, receiving income replacement benefits for a period of not less than three (3)
months under an accident and health plan covering employees of the Company or an Affiliate of the
Company.

               (p) “Eligible Recipient” means a key employee, director or Consultant of the Company or any
Subsidiary who has been selected as an eligible participant by the Administrator.

               (q) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

               (r) “Exercise Price” means the price per Share at which a holder of an Award granted
hereunder may purchase the Shares issuable upon exercise of such Award.

               (s) “Fair Market Value” as of a particular date means the fair market value of a Share as
determined by the Administrator in good faith; provided, further, that (i) if the Stock is admitted
to trading on a national securities exchange, the fair market value of a Share on any date for the
purpose of determining the Exercise Price of an Option or Stock Appreciation Right shall be the
closing sale price reported for such Share on such exchange on such date and for any other purposes
under this Plan or Award Documents hereunder shall be the closing sale price reported for such
Share on such exchange on the immediately preceding date, or, if no sale was reported on the
relevant date, the closing sale price reported for such Share on such exchange on the last day
preceding such date on which a sale was reported, (ii) if the Stock is admitted to quotation on the
National Association of Securities Dealers Automated Quotation (“Nasdaq”) System or other
comparable quotation system and has been designated as a National Market System (“NMS”) security,
the fair market value of a Share on any date for the purpose of determining the Exercise Price of
an Option or Stock Appreciation Right shall be the closing sale price reported for such Share on
such system on such date and for any other purposes under this Plan or Award Documents hereunder
shall be the closing sale price reported for such Share on such system on the immediately preceding
date, or, if no sale was reported on the relevant date, the closing sale price reported for such
Share on such system on the last day preceding such date on which a sale was reported, or (iii) if
the Stock is admitted to quotation on the Nasdaq System but has not been designated as an NMS
security, the fair market value of a Share on any date for the purpose of determining the Exercise
Price of an Option or Stock Appreciation Right shall be the average of the highest bid and lowest
asked prices of such Share on such date, if both bid and ask prices were reported on such date, and
for any other purposes under this Plan or Award Documents hereunder shall be the average of the
highest bid and lowest asked prices of such Share on the immediately preceding date, if both bid
and ask prices

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were reported on such date, or, if not, on the last date preceding the relevant date on which
both bid and ask prices were reported.

               (t) “Fortress Entity” means any of (i) Fortress Fund IV GP L.P. or any Affiliate thereof,
(ii) any investment vehicle (whether formed as a private investment fund, stock company,
partnership or otherwise) managed directly or indirectly by Fortress Investment Group LLC
(“Fortress”) or any of its Affiliates, including but not limited to Fortress Fund IV (Fund A) L.P
and its parallel affiliated funds (collectively, “Fortress Fund IV”) or (iii) any Person which has
the majority of its stock, partnership or membership interests owned, directly or indirectly, by
any Person described in the clause (ii) above.

               (u) “Incentive Stock Option” means an Option that is an “incentive stock option” within the
meaning of Section 422 of the Code, or any successor provision, and that is designated in the
applicable Award Document as an Incentive Stock Option.

               (v) “Initial Public Offering” or “IPO” means a firmly underwritten public offering pursuant
to a registration statement declared effective under the Exchange Act covering the offer and sale
of Shares for the account of the Company to the public generally in which the net proceeds to the
Company are not less than $100,000,000.

               (w) “Non-Employee Director” means a director of the Company who is not (i) an officer or
employee of the Company, or of any Subsidiary or Affiliate of the Company, or (ii) the Beneficial
Owner, whether directly or indirectly, of ten percent (10%) or more of the Stock.

               (x) “Nonqualified Stock Option” means any Option that is not an Incentive Stock Option,
including any Option that provides (as of the time such Option is granted) that it shall not be
treated as an Incentive Stock Option.

               (y) “Option” means an option to purchase Shares granted pursuant to Section 7 hereof.

               (z) “Other Stock-Based Awards” means a right or other interest granted to a Participant
under the Plan that may be denominated or payable in, valued in whole or in part by reference to,
or otherwise based on or related to, Stock, including but not limited to (i) unrestricted Shares
and (ii) restricted stock units, dividend equivalents or performance units, each of which may be
subject to the attainment of Performance Goals or a period of continued employment or other terms
or conditions as permitted under the Plan.

               (aa) “Participant” means (i) any Eligible Recipient selected by the Administrator, pursuant
to the Administrator’s authority in Section 3 hereof, to receive grants of Options, Stock
Appreciation Rights, Restricted Shares, Deferred Shares,

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Performance Shares, Other Stock-Based Awards (including, without limitation, unrestricted
Shares) or any combination of the foregoing, and upon his or her death, his or her successors,
heirs, executors and administrators, as the case may be, and (ii) any Non-Employee Director who is
eligible to receive Shares pursuant to Section 11 hereof.

               (bb) “Performance Goals” means performance goals based on one or more of the following
criteria: (i) earnings including operating income, earnings before or after taxes, earnings before
or after interest, depreciation, amortization, or extraordinary or special items or book value per
Share (which may exclude nonrecurring items); (ii) pre-tax income or after-tax income; (iii)
earnings per Share (basic or diluted); (iv) operating profit; (v) revenue, revenue growth or rate
of revenue growth; (vi) return on assets (gross or net), return on investment, return on capital,
or return on equity; (vii) returns on sales or revenues; (viii) operating expenses; (ix) stock
price appreciation; (x) cash flow, free cash flow, cash flow return on investment (discounted or
otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (xi)
implementation or completion of critical projects or processes; (xii) economic value created;
(xiii) cumulative earnings per Share growth; (xiv) operating margin or profit margin; (xv) Stock
price or total stockholder return; (xvi) cost targets, reductions and savings, productivity and
efficiencies; (xvii) strategic business criteria, consisting of one or more objectives based on
meeting specified market penetration, geographic business expansion, customer satisfaction,
employee satisfaction, human resources management, supervision of litigation, information
technology, and goals relating to acquisitions, divestitures, joint ventures and similar
transactions, and budget comparisons; (xviii) personal professional objectives, including any of
the foregoing performance goals, the implementation of policies and plans, the negotiation of
transactions, the development of long term business goals, formation of joint ventures, research or
development collaborations, and the completion of other corporate transactions; and (xix) any
combination of, or a specified increase in, any of the foregoing. Where applicable, the
Performance Goals may be expressed in terms of attaining a specified level of the particular
criteria or the attainment of a percentage increase or decrease in the particular criteria, and may
be applied to one or more of the Company, a Subsidiary or Affiliate, or a division or strategic
business unit of the Company, or may be applied to the performance of the Company relative to a
market index, a group of other companies or a combination thereof, all as determined by the
Committee. The Performance Goals may include a threshold level of performance below which no
payment shall be made (or no vesting shall occur), levels of performance at which specified
payments shall be made (or specified vesting shall occur), and a maximum level of performance above
which no additional payment shall be made (or at which full vesting shall occur). Each of the
foregoing Performance Goals shall be determined in accordance with generally accepted accounting
principles and shall be subject to certification by the Committee; provided that the Committee
shall have the authority to make equitable adjustments to the Performance Goals in recognition of
unusual or non-recurring events affecting the Company or any Subsidiary or Affiliate or the
financial statements of the Company or any Subsidiary or Affiliate, in response to changes in
applicable laws or regulations, or to account for items of gain, loss or expense determined to be
extraordinary or unusual in

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nature or infrequent in occurrence or related to the disposal of a segment of a business or
related to a change in accounting principles.

               (cc) “Performance Shares” means Shares that are subject to restrictions based upon the
attainment of specified performance objectives granted pursuant to Section 9 hereof.

               (dd) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i)
the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any of its Subsidiaries, (iii) an underwriter
temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation
owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company.

               (ee) “Restricted Shares” means Shares subject to certain restrictions granted pursuant to
Section 9 hereof.

               (ff) “Retirement” means a termination of a Participant’s employment, other than for Cause,
on or after attainment of age 65.

               (gg) “Shares” means shares of Stock.

               (hh) “Stock” means the common stock, par value $.01 per Share, of the Company, and any
successor security (pursuant to a merger, consolidation or other reorganization).

               (ii) “Stock Appreciation Right” means the right pursuant to an Award granted under Section
8 hereof to receive an amount equal to the excess, if any, of (i) the aggregate Fair Market Value,
as of the date such Stock Appreciation Right or portion thereof is surrendered, of the Shares
covered by such right or such portion thereof, over (ii) the aggregate Exercise Price of such right
or such portion thereof.

               (jj) “Subsidiary,” when used to determine whether an individual service provider can be an
Eligible Recipient of an Award hereunder which could be subject to Section 409A of the Code, means
any corporation or other entity in a chain of corporations or other entities (beginning with the
Company and ending with the Subsidiary to which the service provider provides direct services on
the date of grant of the Award) in which each corporation or other entity has a “controlling
interest” in another corporation or other entity in the chain and as to which the Company is
consequently an “eligible issuer of service recipient stock” (within the meaning of Internal
Revenue Regulation Section 1.409A-1(b)(5)(iii)(E)). An additional requirement applies when
“Subsidiary” is used to determine whether an employee can be an Eligible Recipient of an Incentive
Stock Option Award: “Subsidiary” then is also required to be a corporation in an unbroken chain of
corporations beginning with the Company, with each

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of the corporations (other than the last corporation in the unbroken chain) owning stock
possessing fifty percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in the chain at the time of the granting of the Incentive Stock
Option Award.

Section 3. Administration.

               (a) The Plan shall be administered by the Administrator and shall be administered in
accordance with the requirements of, to the extent each is, or becomes, applicable, (i) Section
409A of the Code, (ii) Section 162(m) of the Code (but only to the extent necessary and desirable
to maintain qualification of any Awards under the Plan intended to be qualified under Section
162(m) of the Code) and (iii) Rule 16b-3 under the Exchange Act (“Rule 16b-3”).

               (b) Pursuant to the terms of the Plan, the Administrator, subject, in the case of any
Committee, to any restrictions on the authority delegated to it by the Board, shall have the power
and authority, without limitation:

               (1) to select those Eligible Recipients who shall be Participants;

               (2) to determine whether and to what extent Stock Options, Stock Appreciation Rights,
Restricted Shares, Deferred Shares, Performance Shares or Other Stock-Based Awards (including,
without limitation, unrestricted Shares) or a combination of any of the foregoing, are to be
granted hereunder to Participants;

               (3) to determine whether Options are intended to be Incentive Stock Options or Nonqualified
Stock Options, provided, however, that Incentive Stock Options can only be granted to employees of
the Company or any Subsidiary (within the meaning of Sections 424(e) and (f) of the Code);

               (4) to determine the number of Shares to be covered by each Award granted hereunder;

               (5) to determine the terms and conditions, subject to the requirements of Section 409A of
the Code and not inconsistent with the terms of the Plan, of each Award granted hereunder
(including, but not limited to, (i) the restrictions applicable to Awards of Restricted Shares or
Deferred Shares and the conditions under which restrictions applicable to such Awards of Restricted
Shares or Deferred Shares shall lapse, (ii) the performance goals and periods, if any, applicable
to Awards of Deferred Shares and Performance Shares, provided that performance goals shall be
determined no later than such time as is required to ensure that any associated Award which is
intended to comply with the requirements of Section 162(m) of the Code so complies, (iii) the
Exercise Price, (iv) the vesting schedule applicable to Awards, (v) the number of Shares subject to
Awards and (vi) any amendments to the terms and conditions of outstanding Awards, including, but
not limited to reducing the Exercise

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Price of such Awards (but only pursuant to Section 5 hereof), extending the exercise period of
such Awards and accelerating the vesting schedule of such Awards);

               (6) to determine the terms and conditions, subject to the requirements of Section 409A of
the Code and not inconsistent with the terms of the Plan, which shall govern all written
instruments evidencing Stock Options, Stock Appreciation Rights, Restricted Shares, Deferred
Shares, Performance Shares or Other Stock-Based Awards (including, without limitation, unrestricted
Shares) or any combination of the foregoing granted hereunder;

               (7) to determine the Fair Market Value;

               (8) to determine the duration and purpose of leaves of absence which may be granted to a
Participant without constituting termination of the Participant’s employment for purposes of
Nonqualified Stock Options and Incentive Stock Options granted under the Plan;

               (9) to adopt, alter and repeal such administrative rules, guidelines and practices
governing the Plan as it shall from time to time deem advisable; and

               (10) to construe and interpret the terms and provisions of the Plan and any Award issued
under the Plan (and any Award Document relating thereto), and to otherwise supervise the
administration of the Plan and to exercise all powers and authorities either specifically granted
under the Plan or necessary and advisable in the administration of the Plan.

               (c) Notwithstanding paragraph (b) of this Section 3, (i) automatic, nondiscretionary grants
of Shares shall be made to Non-Employee Directors pursuant to and in accordance with the terms of
Section 11 hereof, (ii) neither the Board, the Committee nor their respective delegates shall have
the authority to reprice (or cancel and regrant) any Option or, if applicable, other Award at a
lower exercise, base or purchase price without first obtaining the approval of the Company’s
stockholders, and (iii) neither the Board, the Committee nor their respective delegates shall have
the authority to take any action that would cause any Award granted under the Plan to fail to
comply with Section 409A of the Code and any regulations or guidance promulgated thereunder, to the
extent applicable.

               (d) All decisions made by the Administrator pursuant to the provisions of the Plan shall be
final, conclusive and binding on all persons, including the Company and the Participants. No
member of the Board or the Committee, nor any officer or employee of the Company or any Subsidiary
acting on behalf of the Board or the Committee, shall be personally liable for any action,
omission, determination, or interpretation taken or made in good faith with respect to the Plan,
and all members of the Board or the Committee and each and any officer or employee of the Company
and of any Subsidiary acting on their behalf shall, to the maximum extent permitted by law, be

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fully indemnified and protected by the Company in respect of any such action, omission,
determination or interpretation.

Section 4. Shares Reserved for Issuance Under the Plan.

          Subject to Section 5 hereof, the maximum number of Shares that may be delivered pursuant to
Awards granted under the Plan is five thousand (5,000) Shares, as increased on the first day of
each fiscal year beginning in calendar year 2009 by a number of Shares equal to the lesser of (1)
one hundred (100) Shares and (2) two percent (2%) of the number of outstanding Shares on the last
day of the immediately preceding fiscal year. All such Shares that are available for the grant of
Awards under the Plan may be made subject to grants of Incentive Stock Options. From and after
such time as the Plan is subject to Code Section 162(m), the aggregate Awards granted during any
fiscal year to any single individual who is likely to be a “covered employee” as defined under Code
Section 162(m) shall not exceed (i) five thousand (5,000) Shares subject to Options or Stock
Appreciation Rights or (ii) five thousand (5,000) Shares subject to Restricted Stock, Deferred
Shares or Other Stock-Based Awards (including, without limitation, unrestricted Shares).
Determinations made in respect of the limitation set forth in the preceding sentence shall be made
in a manner consistent with Section 162(m) of the Code.

          Shares issued under the Plan may, in whole or in part, be authorized but unissued Shares or
Shares that shall have been or may be reacquired by the Company in the open market, in private
transactions or otherwise. If any Shares subject to an Award are forfeited, cancelled, exchanged
or surrendered or if an Award otherwise terminates or expires without a distribution of shares to
the Participant, the Shares with respect to such Award shall, to the extent of any such forfeiture,
cancellation, exchange, surrender, termination or expiration, again be available for Awards under
the Plan.

Section 5. Equitable Adjustments.

          In the event of any Change in Capitalization, an equitable substitution or proportionate
adjustment shall be made, in each case, as may be determined by the Administrator, in its sole
discretion, in (i) the aggregate number of Shares reserved for issuance under the Plan and the
maximum number of Shares that may be subject to Awards granted to any Participant in any calendar
or fiscal year, (ii) the kind, number and Exercise Price relating to outstanding Options and Stock
Appreciation Rights granted under the Plan, (iii) Performance Goals and (iv) the kind, number and
purchase price of Shares subject to outstanding Awards of Restricted Shares, Deferred Shares,
Performance Shares or Other Stock-Based Awards granted under the Plan, in each case as may be
determined by the Administrator, in its sole discretion, provided, however, that any fractional
shares resulting from the adjustment shall be eliminated. Such other equitable substitutions or
adjustments shall be made as may be determined by the Administrator, in its sole discretion.
Without limiting the generality of the foregoing, in connection with a Change in Capitalization,
the Administrator may provide, in its sole discretion, for the cancellation of any outstanding
Award granted hereunder in exchange for payment in

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cash or other property of the aggregate Fair Market Value of the Shares covered by such Award,
reduced by the aggregate Exercise Price or purchase price thereof, if any. Notwithstanding the
foregoing, any adjustment with respect to Incentive Stock Options shall be made in accordance with
the provisions of Section 424(h) of the Code and any regulations or guidance promulgated
thereunder, and no adjustment to any Award hereunder which is or becomes subject to Section 409A of
the Code shall cause the Award to fail to comply with the requirements of such Section, including
regulations or guidance promulgated thereunder. The Administrator’s determinations pursuant to
this Section 5 shall be final, binding and conclusive.

Section 6. Eligibility.

          Except as set forth in Section 11 hereof, the Participants under the Plan shall be selected
from time to time by the Administrator, in its sole discretion, from among Eligible Recipients;
provided, however, that Incentive Stock Options may only be granted to employees of the Company or
any Subsidiary. Notwithstanding the foregoing, Non-Employee Directors shall be eligible for Awards
in addition to those set forth in Section 11, as determined by the Administrator from time to time.

Section 7. Options.

               (a) General. The grant of an Option shall be evidenced by an Award Document, containing
such terms and conditions as the Administrator shall determine, in its discretion and in accordance
with the provisions hereof, which Award Document shall set forth, among other things, the Exercise
Price of the Option, the term of the Option and provisions regarding exercisability of the Option
granted thereunder. Each Option shall be clearly identified in the applicable Award Document as
either an Incentive Stock Option or a Nonqualified Stock Option. The provisions of each Option
need not be the same with respect to each Participant. More than one Option may be granted to the
same Participant and be outstanding concurrently hereunder. Options granted under the Plan shall
be subject to the terms and conditions set forth in this Section 7 and shall contain such
additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator
shall deem desirable and set forth in the applicable Award Document.

               (b) Exercise Price. The Exercise Price of an Option shall be determined by the
Administrator in its sole discretion at the time of grant, but in no event shall the Exercise Price
per Share underlying the Option be less than 100% of the Fair Market Value of a Share on the date
of grant. If a Participant owns or is deemed to own (by reason of the attribution rules applicable
under Section 424(d) of the Code) more than 10% of the combined voting power of all classes of
stock of the Company or of any Subsidiary and an Incentive Stock Option is granted to such
Participant, the option price of such Incentive Stock Option (to the extent required at the time of
grant by the Code) shall be no less than 110% of the Fair Market Value on the date such Incentive
Stock Option is granted.

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               (c) Option Term. The maximum term of each Option shall be fixed by the Administrator, but
no Option shall be exercisable more than ten years after the date such Option is granted. Moreover,
Incentive Stock Options granted to a Participant who owns or is deemed to own (by reason of the
attribution rules applicable under Section 424(d) of the Code) more than 10% of the combined voting
power of all classes of stock of the Company or of any Subsidiary, shall not be exercisable more
than five years after the date such Option is granted. Each Option’s term is subject to earlier
expiration pursuant to the applicable provisions in the Plan and the Award Document.
Notwithstanding the foregoing, the Administrator shall have the authority to accelerate the
exercisability of any outstanding Option at such time and under such circumstances as the
Administrator, in its sole discretion, deems appropriate.

               (d) Exercisability. Each Option shall be exercisable at such time or times and subject to
such terms and conditions, including the attainment of preestablished corporate performance goals,
as shall be determined by the Administrator in the applicable Award Document. The Administrator
may also provide that any Option shall be exercisable only in installments, and the Administrator
may waive such installment exercise provisions at any time, in whole or in part, based on such
factors as the Administrator may determine in its sole discretion. Notwithstanding anything to the
contrary contained herein, an Option may not be exercised for a fraction of a Share.

               (e) Method of Exercise. Options may be exercised in whole or in part by giving written
notice of exercise to the Company specifying the number of Shares to be purchased, accompanied by
payment in full of the aggregate Exercise Price of the Shares so purchased in cash or its
equivalent, as determined by the Administrator. As determined by the Administrator, in its sole
discretion, with respect to any Option or category of Options, payment in whole or in part may also
be made (i) by means of consideration received under any cashless exercise procedure approved by
the Administrator (including the withholding of Shares otherwise issuable upon exercise), (ii) in
the form of unrestricted Shares already owned by the Participant which have a Fair Market Value on
the date of surrender equal to the aggregate Exercise Price of the Shares as to which such Option
shall be exercised, (iii) any other form of consideration approved by the Administrator and
permitted by applicable law or (iv) any combination of the foregoing.

               (f) Limitations on Incentive Stock Options. To the extent that the aggregate Fair Market
Value (as of the date the relevant Options were granted) of the Shares with respect to which
Incentive Stock Options are exercisable for the first time by a Participant during any calendar
year under the Plan and any other stock option plan of the Company shall exceed $100,000, the
portion of such Incentive Stock Options in excess of $100,000 shall be treated as Nonqualified
Stock Options. Such Fair Market Value shall be determined as of the date on which each such
Incentive Stock Option is granted. No Incentive Stock Option may be granted to an individual if,
at the time of the proposed grant, such individual owns (or is deemed to own under the Code) stock
possessing more than 10% of the total combined voting power of all classes of stock of the Company
or of any Subsidiary unless (i) the Exercise Price of such Incentive Stock

12

 

Option is at least 110% of the Fair Market Value of a share of Stock at the time such
Incentive Stock Option is granted and (ii) such Incentive Stock Option is not exercisable after the
expiration of five years from the date such Incentive Stock Option is granted.

               (g) Rights as Stockholder. A Participant shall have no rights to dividends or any other
rights of a stockholder with respect to the Shares subject to an Option until the Participant has
given written notice of exercise, has paid in full for such Shares, has satisfied the requirements
of Section 15 hereof and, if requested, has given the representation described in paragraph (b) of
Section 16 hereof.

               (h) Transfers of Options. Except as otherwise determined by the Administrator, and in any
event in the case of an Incentive Stock Option, no Option granted under the Plan shall be
transferable by a Participant other than by will or the laws of descent and distribution. Unless
otherwise determined by the Administrator in accord with the provisions of the immediately
preceding sentence, an Option may be exercised, during the lifetime of the Participant, only by the
Participant or, during the period the Participant is under a legal disability, by the Participant’s
guardian or legal representative. The Administrator may, in its sole discretion, subject to
applicable law, permit the gratuitous transfer during a Participant’s lifetime of a Nonqualified
Stock Option, (i) by gift to a member of the Participant’s immediate family, (ii) by transfer by
instrument to a trust for the benefit of such immediate family members, or (iii) to a partnership
or limited liability company in which such family members are the only partners or members;
provided, however, that, in addition to such other terms and conditions as the Administrator may
determine in connection with any such transfer, no transferee may further assign, sell, hypothecate
or otherwise transfer the transferred Option, in whole or in part, other than by will or by
operation of the laws of descent and distribution. Each such permitted transferee shall agree to
be bound by the provisions of this Plan and the applicable Award Document.

               (i) Termination of Employment or Service.

               (1) Unless the applicable Award Document provides otherwise, in the event that the
employment or service of a Participant with the Company or any Subsidiary shall terminate for any
reason other than Cause, Retirement, Disability, or death, (A) Options granted to such Participant,
to the extent that they are exercisable at the time of such termination, shall remain exercisable
until the date that is 90 days after such termination, on which date they shall expire, and (B)
Options granted to such Participant, to the extent that they were not exercisable at the time of
such termination, shall expire at the close of business on the date of such termination. The
90-day period described in this Section 7(i)(1) shall be extended to one year after the date of
such termination in the event of the Participant’s death during such 90-day period.
Notwithstanding the foregoing, no Option shall be exercisable after the expiration of its term.

               (2) Unless the applicable Award Document provides otherwise, in the event that the
employment or service of a Participant with the Company or any

13

 

Subsidiary shall terminate on account of the Retirement, Disability, or death of the
Participant, (A) Options granted to such Participant, to the extent that they were exercisable at
the time of such termination, shall remain exercisable until the date that is one year after such
termination, on which date they shall expire and (B) Options granted to such Participant, to the
extent that they were not exercisable at the time of such termination, shall expire at the close of
business on the date of such termination. Notwithstanding the foregoing, no Option shall be
exercisable after the expiration of its term.

               (3) In the event of the termination of a Participant’s employment or service for Cause, all
outstanding Options granted to such Participant shall expire at the commencement of business on the
date of such termination.

               (j) Other Change in Employment Status. An Option shall be affected, both with regard to
vesting schedule and termination, by leaves of absence, changes from full-time to part-time
employment, partial disability or other changes in the employment status of a Participant, in the
discretion of the Administrator. The Administrator shall follow any applicable provisions and
regulations with respect to the treatment of Incentive Stock Options and the written policies of
the Company (if any), including such rules, guidelines and practices as may be adopted pursuant to
Section 3 hereof, as they may be in effect from time to time, with regard to such matters.

Section 8. Stock Appreciation Rights.

               (a) General. Stock Appreciation Rights may be granted either alone (“Free Standing
Rights”) or in conjunction with all or part of any Stock Option granted under the Plan (“Related
Rights”). In the case of a Nonqualified Stock Option, Related Rights may be granted either at or
after the time of the grant of such Stock Option. In the case of an Incentive Stock Option,
Related Rights may be granted only at the time of the grant of the Incentive Stock Option. The
Administrator shall determine the Eligible Recipients to whom, and the time or times at which,
grants of Stock Appreciation Rights shall be made; the number of Shares to be awarded, the price
per share, and all other conditions of Stock Appreciation Rights. Notwithstanding the foregoing,
no Related Right may be granted for more shares than are subject to the Stock Option to which it
relates and any Stock Appreciation Right must be granted with an Exercise Price not less than the
Fair Market Value of Stock on the date of grant. The provisions of Stock Appreciation Rights need
not be the same with respect to each Participant. Stock Appreciation Rights granted under the Plan
shall be subject to the following terms and conditions set forth in this Section 8 and shall
contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the
Administrator shall deem desirable, as set forth in the applicable Award Document.

               (b) Awards. Participants who are granted Stock Appreciation Rights shall have no rights as
stockholders of the Company with respect to the grant or exercise of such Stock Appreciation
Rights.

14

 

               (c) Exercisability.

               (1) Stock Appreciation Rights that are Free Standing Rights (“Free Standing Stock
Appreciation Rights”) shall be exercisable at such time or times and subject to such terms and
conditions as shall be determined by the Administrator at or after grant.

               (2) Stock Appreciation Rights that are Related Rights (“Related Stock Appreciation Rights”)
shall be exercisable only at such time or times and to the extent that the Stock Options to which
they relate shall be exercisable in accordance with the provisions of Section 7 above and this
Section 8 of the Plan; provided, however, that a Related Stock Appreciation Right granted in
connection with an Incentive Stock Option shall be exercisable only if and when the Fair Market
Value of the Stock subject to the Incentive Stock Option exceeds the Exercise Price of such Option.

               (d) Payment Upon Exercise.

               (1) Upon the exercise of a Free Standing Stock Appreciation Right, the Participant shall be
entitled to receive up to, but not more than, that number of Shares equal in value to the excess of
the Fair Market Value as of the date of exercise over the price per share specified in the Free
Standing Stock Appreciation Right (which price shall be no less than 100% of the Fair Market Value
on the date of grant) multiplied by the number of Shares in respect of which the Free Standing
Stock Appreciation Right is being exercised, with the Administrator having the right to determine
the form of payment.

               (2) A Related Right may be exercised by a Participant by surrendering the applicable
portion of the related Option. Upon such exercise and surrender, the Participant shall be entitled
to receive up to, but not more than, that number of Shares equal in value to the excess of the Fair
Market Value as of the date of exercise over the Exercise Price specified in the related Option
(which price shall be no less than 100% of the Fair Market Value on the date of grant) multiplied
by the number of Shares in respect of which the Related Stock Appreciation Right is being
exercised, with the Administrator having the right to determine the form of payment in accordance
with Section 8(d)(3) hereof. Options which have been so surrendered, in whole or in part, shall no
longer be exercisable to the extent the Related Rights have been so exercised.

               (3) Notwithstanding the foregoing, the Administrator may determine to settle the exercise
of a Stock Appreciation Right in cash or Shares (or in any combination of Shares and cash) to the
extent that such settlement does not violate Section 409A of the Code.

               (e) Non-Transferability.

15

 

               (1) Free Standing Stock Appreciation Rights shall be transferable only when and to the
extent that an Option would be transferable under Section 7 of the Plan.

               (2) Related Stock Appreciation Rights shall be transferable only when and to the extent
that the underlying Option would be transferable under Section 7 of the Plan.

               (f) Termination of Employment or Service.

               (1) In the event of the termination of employment or service with the Company or any
Subsidiary of a Participant who has been granted one or more Free Standing Stock Appreciation
Rights, such rights shall be exercisable at such time or times and subject to such terms and
conditions as shall be determined by the Administrator at or after grant.

               (2) In the event of the termination of employment or service with the Company or any
Subsidiary of a Participant who has been granted one or more Related Stock Appreciation Rights,
such rights shall be exercisable at such time or times and subject to such terms and conditions as
are set forth in the related Stock Options.

               (g) Term.

               (1) The term of each Free Standing Stock Appreciation Right shall be fixed by the
Administrator, but no Free Standing Stock Appreciation Right shall be exercisable more than ten
years after the date such right is granted.

               (2) The term of each Related Stock Appreciation Right shall be the term of the Stock Option
to which it relates, but no Related Stock Appreciation Right shall be exercisable more than ten
years after the date such right is granted.

Section 9. Restricted Shares, Deferred Shares and Performance Shares.

               (a) General. Awards of Restricted Shares, Deferred Shares or Performance Shares may be
granted either alone or in addition to other Awards granted under the Plan. The Administrator
shall determine the Eligible Recipients to whom, and the time or times at which, Awards of
Restricted Shares, Deferred Shares or Performance Shares shall be made; the number of Shares to be
awarded; the price, if any, to be paid by the Participant for the acquisition of Restricted Shares,
Deferred Shares or Performance Shares; the Restricted Period (as defined in paragraph (b) of this
Section 9), if any, applicable to Awards of Restricted Shares or Deferred Shares; the performance
objectives applicable to Awards of Deferred Shares or Performance Shares; and all other conditions
of the Awards of Restricted Shares, Deferred Shares and Performance Shares. The Administrator may
also condition the grant of the Award of Restricted Shares, Deferred Shares or Performance Shares
upon the exercise of Options, or upon such other criteria as the Administrator may determine, in
its sole discretion. If the restrictions, performance

16

 

objectives and/or conditions established by the Administrator are not attained, a Participant
shall forfeit his or her shares of Restricted Shares, Deferred Shares or Performance Shares. The
provisions of the Awards of Restricted Shares, Deferred Shares or Performance Shares need not be
the same with respect to each Participant.

               (b) Awards and Certificates. Each Participant who is granted an award of Restricted Shares
or Performance Shares may, in the Company’s sole discretion, be issued a stock certificate in
respect of such Restricted Shares or Performance Shares. Any such certificate so issued shall be
registered in the name of the Participant, and shall bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to any such Award.

               The Company may require that the stock certificates, if any, evidencing Restricted Shares or
Performance Shares granted hereunder be held in the custody of the Company until the restrictions
thereon shall have lapsed, and that, as a condition of any award of Restricted Shares or
Performance Shares, the Participant shall have delivered a stock power, endorsed in blank, relating
to the Shares covered by such award.

               With respect to awards of Deferred Shares, at the expiration of the Restricted Period, stock
certificates in respect of such shares of Deferred Shares may, in the Company’s sole discretion, be
delivered to the Participant, or his legal representative, in a number equal to the number of
Shares covered by the Deferred Shares award.

               Notwithstanding anything in this Plan to the contrary, any Restricted Shares, Deferred Shares
(at the expiration of the Restricted Period) or Performance Shares (whether before or after any
vesting conditions have been satisfied) may, in the Company’s sole discretion, be issued in
uncertificated form pursuant to the customary arrangements for issuing shares in such form.

               Further, notwithstanding anything in this Plan to the contrary, with respect to awards of
Deferred Shares, at the expiration of the Restricted Period, Shares shall promptly be issued
(either in certificated or uncertificated form) to the Participant and such issuance shall in any
event be made within such period as is required to avoid the imposition of a tax under Section 409A
of the Code.

               Further, notwithstanding anything in this Plan to the contrary, no stock certificates shall be
issued for fractional Shares in any event. Upon the vesting of any fractional Restricted Share or
fractional Performance Share, such fractional Share shall be settled in cash and, upon the
expiration of the Restricted Period with respect to any Deferred Shares, any fractional Share which
would otherwise be issued shall be settled in cash.

               (c) Restrictions and Conditions. The Awards of Restricted Shares, Deferred Shares and
Performance Shares granted pursuant to this Section 9 shall be subject to the following
restrictions and conditions and any additional restrictions or conditions as determined by the
Administrator at the time of grant or thereafter:

17

 

               (1) Subject to the provisions of the Plan and the Restricted Shares Award Document,
Deferred Shares Award Document or Performance Shares Award Document, as appropriate, governing any
such Award, during such period as may be set by the Administrator commencing on the date of grant
(the “Restricted Period”), the Participant shall not be permitted to sell, transfer, pledge or
assign Restricted Shares, Deferred Shares or Performance Shares awarded under the Plan; provided,
however, that the Administrator may, in its sole discretion, provide for the lapse of such
restrictions in installments and may accelerate or waive such restrictions in whole or in part
based on such factors and such circumstances as the Administrator may determine, in its sole
discretion, including, but not limited to, the attainment of certain performance-related goals, the
Participant’s termination of employment or service as a director or Consultant to the Company or
any Subsidiary, the Participant’s death or Disability; provided, however, that if any Deferred
Shares Award is, or may become, subject to Section 409A of the Code, any such discretionary act by
the Administrator shall be subject to the requirements of such Section. Notwithstanding the
foregoing, upon a Change in Control, the outstanding Awards shall be subject to Section 12 hereof.

               (2) Except as may be otherwise provided in a Restricted Share Award Document or Performance
Share Award Document, the Participant shall have no right with respect to Restricted Shares or
Performance Shares to vote as a stockholder of the Company during the Restricted Period or to
receive dividends which are declared with respect to Restricted Shares or Performance Shares with a
record date during the Restricted Period. Unless otherwise provided in the applicable Award
Document, any Shares receivable with respect to the Restricted Shares or Performance Shares
pursuant to an equitable adjustment under Section 5 hereof in connection with a Change in
Capitalization shall be subject to the same restrictions as the Restricted Shares or Performance
Shares. The Participant shall generally not have the rights of a stockholder with respect to
Awards of Deferred Shares during the Restricted Period; provided, however, that, subject to the
requirements of Section 409A of the Code, the Deferred Shares Award Document (or a related separate
Award Document) may provide the Participant with the right to receive dividend equivalent payments
with respect to the Deferred Shares subject to the Award during the Restricted Period (either
currently or upon the vesting of the Deferred Shares). Unless otherwise provided in an Award
Document or except as otherwise provided in the Plan, upon the vesting of a Deferred Shares Award
(or any portion thereof), there shall be delivered to the Participant, as soon as practicable
following the date on which such Award (or any portion thereof) vests (but in any event within such
period as is required to avoid the imposition of a tax under Section 409A of the Code), the number
of Shares equal to the number of Deferred Shares becoming so vested.

               (3) The rights of Participants granted Awards of Restricted Shares, Deferred Shares or
Performance Shares upon termination of employment or upon termination of service as a director or
Consultant to the Company or to any Subsidiary for any reason during the Restricted Period shall be
set forth in the Award Document.

18

 

Section 10. Other Stock-Based Awards.

               (a) The Administrator is authorized to grant Awards to Participants in the form of Other
Stock-Based Awards, as deemed by the Administrator to be consistent with the purposes of the Plan
and as evidenced by an Award Document. The Administrator shall determine the terms and conditions
of such Awards, consistent with the terms of the Plan, at the date of grant or thereafter,
including any Performance Goals and performance periods. Stock or other securities or property
delivered pursuant to an Award in the nature of a purchase right granted under this Section 10
shall be purchased for such consideration, paid for at such times, by such methods, and in such
forms, including, without limitation, Shares, other Awards, notes or other property, as the
Administrator shall determine, subject to any required corporate action.

               (b) To the extent that the Plan is, or becomes, subject to Section 162(m) of the Code, no
payment shall be made to a “covered employee” (within the meaning of Section 162(m) of the Code)
prior to the certification by the Committee that the Performance Goals have been attained. The
Committee may establish such other rules as it may determine with respect to the Other Stock-Based
Awards, provided, however, that in the event that the Plan is subject to Section 162(m) of the
Code, such rules, as they apply to Awards intended to comply with Section 162(m) of the Code, shall
be in compliance with Section 162(m) of the Code.

Section 11. Non-Employee Director Grants.

               (a) Annual Grant. Except as otherwise provided by the Administrator, on the first business
day after each annual stockholders’ meeting of the Company during the term of the Plan (beginning
with the first annual stockholders’ meeting which follows an Initial Public Offering), each
Non-Employee Director shall be granted that number of Shares, the aggregate Fair Market Value of
which shall equal fifteen thousand ($15,000) dollars on the date of grant (the “Non-Employee
Director Shares”). Notwithstanding the immediately preceding sentence, unless the Administrator
determines otherwise, no grant shall be made under this Section 11 to a Non-Employee Director who
is an officer or employee of any Fortress Entity or any Subsidiary or Affiliate of any Fortress
Entity. Any fractional amounts shall be settled in cash within ten business days after the date of
grant. The Non-Employee Director Shares shall be fully vested as of the date of grant.

               (b) Stock Availability. In the event that the number of Shares available for grant under
the Plan is not sufficient to accommodate the Awards of Non-Employee Director Shares, the remaining
Shares available for such automatic Awards shall be granted to each Non-Employee Director who is to
receive such an Award on a pro-rata basis. No further grants shall be made until such time, if
any, as additional Shares become available for grant under the Plan.

     Section 12. Accelerated Vesting In Connection With a Change in Control.

19

 

          In the event of a Change in Control, any outstanding Option that is not assumed or continued,
or an equivalent option or right is not substituted therefor pursuant to the Change in Control
transaction’s governing document, shall become fully vested and exercisable “immediately prior to”
the effective date of such Change in Control and shall expire upon the effective date of such
Change in Control. For purposes of this Section 12, “immediately prior to” means sufficiently in
advance of the Change in Control transaction such that there will be time for each affected
Participant to exercise his or her Option and participate in the Change in Control transaction in
the same manner as all other holders of Stock. If an Option becomes fully vested and exercisable
immediately prior to a Change in Control, the Administrator shall notify the affected Participant
in writing or electronically that the Option has become fully vested and exercisable, and that the
Option will terminate upon the Change in Control.

          Notwithstanding the immediately preceding paragraph, if a Change in Control (within the
meaning of the Plan) occurs, but the Change in Control does not also qualify as a “change in
control event” (within the meaning of Treasury Regulation Section 1.409A-3(i)(5)), then any such
outstanding Option that is subject to Section 409A of the Code (and is not assumed, continued or
substituted for) shall become fully vested and non-forfeitable; however, the Participant holding
such Option shall not be able to exercise the Option, except in accordance with the remaining terms
of the applicable Award Document or until such earlier time as the exercise complies with Section
409A of the Code.

          Unless otherwise determined by the Administrator and evidenced in an Award Document, in the
event that (i) a Change in Control occurs and (ii) the Participant’s employment is terminated by
the Company, its successor or its affiliate without Cause on or after the effective date of the
Change in Control but within the twelve (12) months immediately following such Change in Control,
then:

               (a) any unvested or unexercisable portion of any Award carrying a right to exercise shall
become vested and exercisable with respect to all of the Shares covered by such unvested portion of
such Award; and

               (b) the restrictions, deferral limitations, payment conditions and forfeiture conditions
applicable to any other Award granted under the Plan shall lapse with respect to all Shares covered
thereby and all such unvested Awards shall be deemed fully vested and any performance conditions
imposed with respect to such Awards shall be deemed to be fully achieved with respect to all Shares
covered thereby.

Section 13. Amendment and Termination.

          The Board (and to the extent provided in Section 19 hereof, the Administrator) may amend,
alter or terminate the Plan, but, except as provided in Section 5 or 19 hereof, no amendment,
alteration, or termination shall be made that would impair the rights of a Participant under any
Award theretofore granted without such Participant’s consent. Unless the Board determines
otherwise, the Board shall obtain approval of the

20

 

Company’s stockholders for any amendment that would require such approval in order to satisfy the
requirements of Sections 162(m) or 422 of the Code, any rules of the stock exchange on which the
Stock is traded or other applicable law. The Administrator may amend the terms of any Award
theretofore granted, prospectively or retroactively, but, subject to the immediately preceding
sentence and to Sections 5 and 19 of the Plan, no such amendment shall impair the rights of any
Participant without his or her consent.

Section 14. Unfunded Status of Plan.

          The Plan is intended to constitute an “unfunded” plan for incentive compensation. With
respect to any payments not yet made to a Participant by the Company, nothing contained herein
shall give any such Participant any rights that are greater than those of a general creditor of the
Company.

Section 15. Withholding Taxes.

          Each Participant shall, no later than the date as of which the value of an Award first becomes
includible in the gross income of the Participant for federal and/or state income tax purposes, pay
to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any
federal, state, or local taxes of any kind required by law to be withheld with respect to the
Award. The obligations of the Company under the Plan shall be conditional on the making of such
payments or arrangements, and the Company shall, to the extent permitted by law, have the right to
deduct any such taxes from any payment of any kind otherwise due to the Participant. Whenever cash
is to be paid pursuant to an Award granted hereunder, the Company shall have the right to deduct
therefrom an amount sufficient to satisfy any federal, state and local withholding tax requirements
related thereto. Whenever Shares are to be delivered pursuant to an Award, the Company shall have
the right to require the Participant to remit to the Company in cash an amount sufficient to
satisfy any federal, state and local withholding tax requirements related thereto. With the
approval of the Administrator, a Participant may satisfy the foregoing requirement by electing to
have the Company withhold from delivery of Shares or by delivering already-owned unrestricted
Shares, in each case, Shares having a value equal to, or less than, the minimum amount of tax
required to be withheld, and paying any balance of the amount required to satisfy withholding
requirements in cash. Such Shares shall be valued at their Fair Market Value on the date as of
which the amount of tax to be withheld is determined. Any fractional share amounts remaining after
the Company’s payments with respect to the Participant’s tax obligations shall be settled in cash.
Such an election may be made with respect to all or any portion of the Shares to be delivered
pursuant to an Award. The Company may also use any other method of obtaining the necessary payment
or proceeds, as permitted by law, to satisfy its withholding obligation with respect to any Option
or other Award.

Section 16. General Provisions.

               (a) Shares shall not be issued pursuant to the exercise of any Option granted hereunder
unless the exercise of such Option and the issuance and

21

 

delivery of such Shares pursuant thereto shall comply with all relevant provisions of law,
including, without limitation, the Securities Act of 1933, as amended, the Exchange Act and the
requirements of any stock exchange upon which the Stock may then be listed, and shall be further
subject to the approval of counsel for the Company with respect to such compliance.

               (b) The Administrator may require each person acquiring Shares to represent to and agree
with the Company in writing that such person is acquiring the Shares without a view to distribution
thereof. The certificates for such Shares may include any legend that the Administrator deems
appropriate to reflect any restrictions on transfer which the Administrator determines, in its sole
discretion, arise under applicable securities laws or are otherwise applicable.

               (c) All certificates for Shares delivered under the Plan shall be subject to such
stop-transfer orders and other restrictions as the Administrator may deem advisable under the
rules, regulations, and other requirements of the Securities and Exchange Commission, any stock
exchange upon which the Stock may then be listed, and any applicable federal or state securities
law, and the Administrator may cause a legend or legends to be placed on any such certificates to
make appropriate reference to such restrictions.

               (d) The Administrator may require a Participant receiving Shares pursuant to the Plan, as a
condition precedent to receipt of such Shares, to enter into a stockholder agreement or “lock-up”
agreement in such form as the Committee shall determine is necessary or desirable to further the
Company’s interests.

               (e) The adoption of the Plan shall not confer upon any Eligible Recipient any right to
continued employment or service with the Company or any Subsidiary, as the case may be, nor shall
it interfere in any way with the right of the Company or any Subsidiary to terminate the employment
or service of any of its Eligible Recipients at any time.

Section 17. Effective Date.

     The Plan became effective upon adoption by the Board on June 3, 2008 (the “Effective Date”),
and approval by stockholders of the Company on June 23, 2008.

Section 18. Term of Plan.

          No Award shall be granted pursuant to the Plan on or after the tenth anniversary of the
Effective Date, but Awards theretofore granted may extend beyond that date.

Section 19. Section 409A.

22

 

          This Plan is intended to comply with, and shall be administered in a manner that is intended
to comply with, Section 409A of the Code and shall be construed and interpreted in accordance with
such intent. Notwithstanding any other provision of the Plan, to the extent that any Award would
be subject to Section 409A of the Code, no such Award may be granted if it would fail to comply
with the requirements set forth in Section 409A of the Code and any regulations or guidance
promulgated thereunder. To the extent that an Award, issuance and/or payment is subject to Section
409A of the Code, it shall be awarded and/or issued or paid in a manner that will comply with
Section 409A of the Code, including any regulations or guidance promulgated thereunder. To the
extent that the Administrator determines that the Plan or any Award is subject to Section 409A of
the Code and fails to comply with the requirements of such Section, notwithstanding anything to the
contrary contained in the Plan or in any Award Document, the Administrator shall have the right, in
its discretion, to amend or terminate the Plan and/or amend, restructure, terminate or replace the
Award, without the consent of any Participant, to either not be subject to Section 409A or to
comply with the applicable provisions of such Section, including regulations or guidance
promulgated thereunder. Further, any provision of this Plan that would cause an Award, issuance
and/or payment to fail to satisfy any applicable provisions of Section 409A of the Code shall have
no force and effect until amended to comply with Code Section 409A (which amendment may be
retroactive to the extent permitted by applicable law). With respect to any Award that is subject
to Section 409A of the Code and provides for payment or issuance upon a termination of employment
or service with the Company and its Subsidiaries, such a termination shall be deemed to have
occurred under the Plan with respect to such award on the first day on which the Participant
holding the Award has experienced a “separation from service” within the meaning of such Section.

Section 20. Governing Law.

          Except to the extent preempted by any applicable federal law, the Plan shall be construed and
administered in accordance with the laws of the State of Delaware, without reference to its
principles of conflicts of law.

23exv10w4

Exhibit 10.4

FORM OF INDEMNIFICATION AGREEMENT

          AGREEMENT, dated as of                                          (this “Agreement”), between RailAmerica, Inc., a
Delaware corporation (the “Company”), and                                          (“Indemnitee”).

          WHEREAS, it is essential to the Company to retain and attract as directors and officers the
most capable persons available;

          WHEREAS, Indemnitee is a director and/or officer of the Company;

          WHEREAS, both the Company and Indemnitee recognize the increased risk of litigation and other
claims being asserted against directors and officers of public companies in today’s environment;

          WHEREAS, the Company’s Amended and Restated Certificate of Incorporation (“Certificate of
Incorporation”) and Amended and Restated Bylaws (“Bylaws”) require the Company to indemnify and
advance expenses to its directors and officers to the fullest extent permitted by law and the
Indemnitee has been serving and continues to serve as a director and/or officer of the Company in
part in reliance on such Certificate of Incorporation and Bylaws;

          WHEREAS, uncertainties as to the availability of indemnification created by recent court
decisions may increase the risk that the Company will be unable to retain and attract as directors
and officers the most capable persons available;

          WHEREAS, the board of directors of the Company (“Board of Directors”) has determined that the
inability of the Company to retain and attract as directors and officers the most capable persons
would be detrimental to the interests of the Company and that the Company therefore should seek to
assure such persons that indemnification and insurance coverage will be available in the future;

          WHEREAS, the parties intend that any rights the Indemnitee may have from Indemnitee-Related
Entities (as defined herein) shall be secondary to the primary obligation of the Company to
indemnify and hold harmless the Indemnitee under this Agreement; and

          WHEREAS, in recognition of Indemnitee’s need for protection against personal liability, and in
part to provide Indemnitee with specific contractual assurance that the protection promised by the
Company’s Certificate of Incorporation and Bylaws will be available to Indemnitee (regardless of,
among other things, any amendment to or revocation of such Certificate of Incorporation and Bylaws
or any change in the composition of the Company’s Board of Directors or acquisition transaction
relating to the Company), the Company wishes to provide in this Agreement for the indemnification
of and the advancing of expenses to Indemnitee to the fullest extent (whether partial or complete)
permitted by law and as set forth in this Agreement, and for the continued

 

 

coverage of Indemnitee under the directors’ and officers’ liability insurance policy of the
Company.

          NOW, THEREFORE, in consideration of the premises and of Indemnitee continuing to serve the
Company directly or, at its request, another enterprise, and intending to be legally bound hereby,
the parties hereto agree as follows:

     1. Certain Definitions. In addition to terms defined elsewhere herein, the following
terms have the following meanings when used in this Agreement:

	 	(a)	 	Change in Control: shall be deemed to have occurred
if (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended), other than Fortress Investment
Group LLC and its affiliates and other than a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or a
corporation owned directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company,
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said
Act), directly or indirectly, of securities of the Company representing 20% or
more of the total voting power represented by the Company’s then outstanding
Voting Securities, or (ii) during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board of
Directors and any new director whose election by the Board of Directors or
nomination for election by the Company’s stockholders was approved by a vote
of at least two-thirds (2/3) of the directors then still in office who either
were directors at the beginning of the period or whose election or nomination
for election was previously so approved, cease for any reason to constitute a
majority thereof, or (iii) the stockholders of the Company approve a merger or
consolidation of the Company with any other entity other than a merger or
consolidation which would result in the Voting Securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into Voting Securities of the
surviving entity) at least 80% of the total voting power represented by the
Voting Securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or the stockholders of the
Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of (in one transaction or a series
of transactions) all or substantially all the Company’s assets.
	 
	 	(b)	 	Claim: means any threatened, asserted, pending or
completed action, suit or proceeding, whether civil, criminal, administrative,
investigative or other, including any arbitration or other alternative

2

 

	 	 	 	dispute resolution mechanism, or any appeal of any kind thereof, or any
inquiry or investigation, whether instituted by (or in the right of) the
Company or any governmental agency or any other person or entity, in which
Indemnitee was, is, may be or will be involved as a party, witness or
otherwise.
	 
	 	(c)	 	Expenses: include attorneys’ fees and all other
direct or indirect costs, expenses and obligations, including judgments,
fines, penalties, interest, appeal bonds, amounts paid in settlement with the
approval of the Company, and counsel fees and disbursements (including,
without limitation, experts’ fees, court costs, retainers, appeal bond
premiums, transcript fees, duplicating, printing and binding costs, as well as
telecommunications, postage and courier charges) paid or incurred in
connection with investigating, prosecuting, defending, being a witness in or
participating in (including on appeal), or preparing to investigate,
prosecute, defend, be a witness in or participate in, any Claim relating to
any Indemnifiable Event, and shall include (without limitation) all attorneys’
fees and all other expenses incurred by or on behalf of an Indemnitee in
connection with preparing and submitting any requests or statements for
indemnification, advancement or any other right provided by this Agreement
(including, without limitation, such fees or expenses incurred in connection
with legal proceedings contemplated by Section 2(d) hereof).
	 
	 	(d)	 	Indemnifiable Amounts: means (i) any and all
liabilities, Expenses, damages, judgments, fines, penalties, ERISA excise
taxes and amounts paid in settlement (including all interest, assessments and
other charges paid or payable in connection with or in respect of such
liabilities, Expenses, damages, judgments, fines, penalties, ERISA excise
taxes or amounts paid in settlement) arising out of or resulting from any
Claim relating to an Indemnifiable Event, (ii) any liability pursuant to a
loan guaranty or otherwise, for any indebtedness of the Company or any
subsidiary of the Company, including, without limitation, any indebtedness
which the Company or any subsidiary of the Company has assumed or taken
subject to, and (iii) any liabilities which an Indemnitee incurs as a result
of acting on behalf of the Company (whether as a fiduciary or otherwise) in
connection with the operation, administration or maintenance of an employee
benefit plan or any related trust or funding mechanism (whether such
liabilities are in the form of excise taxes assessed by the United States
Internal Revenue Service, penalties assessed by the Department of Labor,
restitutions to such a plan or trust or other funding mechanism or to a
participant or beneficiary of such plan, trust or other funding mechanism, or
otherwise).

3

 

	 	(e)	 	Indemnifiable Event: means any event or occurrence,
whether occurring before, on or after the date of this Agreement, related to
the fact that Indemnitee is or was a director and/or officer or fiduciary of
the Company, or is or was serving at the request of the Company as a director,
officer, employee, manager, member, partner, tax matter partner, trustee,
agent, fiduciary or similar capacity, of another corporation, limited
liability company, partnership, joint venture, employee benefit plan, trust or
other entity or enterprise, or by reason of anything done or not done by
Indemnitee in any such capacity (in all cases whether or not Indemnitee is
acting or serving in any such capacity or has such status at the time any
Indemnifiable Amount is incurred for which indemnification, advancement or any
other right can be provided by this Agreement). The term “Company”, where the
context requires when used in this Agreement, may be construed to include such
other corporation, limited liability company, partnership, joint venture,
employee benefit plan, trust or other entity or enterprise.
	 
	 	(f)	 	Indemnitee-Related Entities: means any corporation,
limited liability company, partnership, joint venture, trust, employee benefit
plan or other entity or enterprise (other than the Company or any other
corporation, limited liability company, partnership, joint venture, trust,
employee benefit plan or other enterprise Indemnitee has agreed, on behalf of
the Company or at the Company’s request, to serve as a director, officer,
employee or agent and which service is covered by the indemnity described in
this Agreement) from whom an Indemnitee may be entitled to indemnification or
advancement of Expenses with respect to which, in whole or in part, the
Company may also have an indemnification or advancement obligation.
	 
	 	(g)	 	Independent Legal Counsel: means an attorney or firm
of attorneys (following a Change in Control, selected in accordance with the
provisions of Section 3 hereof) who is experienced in matters of corporate law
and who shall not have otherwise performed services for the Company or
Indemnitee within the last five years (other than with respect to matters
concerning the rights of Indemnitee under this Agreement, or of other
indemnitees under similar indemnity agreements).
	 
	 	(h)	 	Jointly Indemnifiable Claim: means any Claim for
which the Indemnitee may be entitled to indemnification from both an
Indemnitee-Related Entity and the Company pursuant to applicable law, any
indemnification agreement or the certificate of incorporation, bylaws,
partnership agreement, operating agreement, certificate of formation,
certificate of limited partnership or

4

 

	 	 	 	comparable organizational documents of the Company and an
Indemnitee-Related Entity.
	 
	 	(i)	 	Reviewing Party: means any appropriate person or
body consisting of a member or members of the Board of Directors or any other
person or body appointed by the Board of Directors who is not a party to the
particular Claim for which Indemnitee is seeking indemnification, or
Independent Legal Counsel.
	 
	 	(j)	 	Voting Securities: means any securities of the
Company which vote generally in the election of directors.

     2. Basic Indemnification Arrangement; Advancement of Expenses.

	 	(a)	 	In the event Indemnitee was, is or becomes a party to or
witness or other participant in, or is threatened to be made a party to or
witness or other participant in, a Claim by reason of (or arising in part out
of) an Indemnifiable Event, the Company shall indemnify Indemnitee to the
fullest extent permitted by law as soon as practicable but in any event no
later than thirty (30) days after written demand is presented to the Company,
and hold Indemnitee harmless against any and all Indemnifiable Amounts.
	 
	 	(b)	 	If so requested by Indemnitee, the Company shall advance
(within two business days of such request) any and all Expenses incurred by
Indemnitee (an “Expense Advance”). The Company shall, in accordance with such
request (but without duplication), either (i) pay such Expenses on behalf of
Indemnitee, or (ii) reimburse Indemnitee for such Expenses. Subject to
Section 2(d), Indemnitee’s right to an Expense Advance is absolute and shall
not be subject to any prior determination by the Reviewing Party that the
Indemnitee has satisfied any applicable standard of conduct for
indemnification.
	 
	 	(c)	 	Notwithstanding anything in this Agreement to the contrary,
Indemnitee shall not be entitled to indemnification or advancement of Expenses
pursuant to this Agreement in connection with any Claim initiated by
Indemnitee unless (i) the Company has joined in or the Board of Directors has
authorized or consented to the initiation of such Claim or (ii) the Claim is
one to enforce Indemnitee’s rights under this Agreement.
	 
	 	(d)	 	Notwithstanding the foregoing, (i) the indemnification
obligations of the Company under Section 2(a) shall be subject to the
condition that the Reviewing Party shall not have determined (in a written
legal opinion, in any case in which the Independent Legal Counsel is involved
as required by Section 3 hereof) that

5

 

	 	 	 	Indemnitee would not be permitted to be indemnified under applicable law,
and (ii) the obligation of the Company to make an Expense Advance pursuant
to Section 2(b) shall be subject to the condition that, if, when and to
the extent that the Reviewing Party determines (in a written legal
opinion, in any case in which the Independent Legal Counsel is involved as
required by Section 3 hereof) that Indemnitee would not be permitted to be
so indemnified under applicable law, the Company shall be entitled to be
reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for
all such amounts theretofore paid (it being understood and agreed that the
foregoing agreement by Indemnitee shall be deemed to satisfy any
requirement that Indemnitee provide the Company with an undertaking to
repay any Expense Advance if it is ultimately determined that the
Indemnitee is not entitled to indemnification under applicable law);
provided, however, that if Indemnitee has commenced or
thereafter commences legal proceedings in a court of competent
jurisdiction to secure a determination that Indemnitee should be
indemnified under applicable law, any determination made by the Reviewing
Party that Indemnitee would not be permitted to be indemnified under
applicable law shall not be binding and Indemnitee shall not be required
to reimburse the Company for any Expense Advance until a final judicial
determination is made with respect thereto (as to which all rights of
appeal therefrom have been exhausted or lapsed). Indemnitee’s undertaking
to repay such Expense Advances shall be unsecured and interest-free. If
there has not been a Change in Control, the Reviewing Party shall be
selected by the Board of Directors, and if there has been such a Change in
Control, the Reviewing Party shall be the Independent Legal Counsel
referred to in Section 3 hereof. If there has been no determination by
the Reviewing Party within thirty (30) days after written demand is
presented to the Company or if the Reviewing Party determines that
Indemnitee would not be permitted to be indemnified in whole or in part
under applicable law, Indemnitee shall have the right to commence
litigation in any court in the State of Florida or the State of Delaware
having subject matter jurisdiction thereof and in which venue is proper
seeking an initial determination by the court or challenging any such
determination by the Reviewing Party or any aspect thereof, including the
legal or factual bases therefor, and the Company hereby consents to
service of process and to appear in any such proceeding. Any
determination by the Reviewing Party otherwise shall be conclusive and
binding on the Company and Indemnitee.

     3. Change in Control. The Company agrees that if there is a Change in Control then
with respect to all matters thereafter arising concerning the rights of Indemnitee to indemnity
payments and Expense Advances under this Agreement or any

6

 

provision of the Bylaws or of the Certificate of Incorporation now or hereafter in effect, the
Company shall seek legal advice only from Independent Legal Counsel selected by Indemnitee and
approved by the Company (which approval shall not be unreasonably delayed, conditioned or
withheld). Such counsel, among other things, shall render its written opinion to the Company and
Indemnitee as to whether and to what extent the Indemnitee would be permitted to be indemnified
under applicable law. The Company agrees to pay the reasonable fees of the Independent Legal
Counsel and to indemnify fully such counsel against any and all expenses (including attorneys’
fees), claims, liabilities and damages arising out of or relating to this Agreement or its
engagement pursuant hereto.

     4. Indemnification for Additional Expenses. The Company shall indemnify Indemnitee
against any and all Expenses and, if requested by Indemnitee, shall advance such Expenses to
Indemnitee subject to and in accordance with Section 2(b), which are incurred by Indemnitee in
connection with any action brought by Indemnitee for (i) indemnification or an Expense Advance by
the Company under this Agreement or any provision of the Bylaws or of the Certificate of
Incorporation now or hereafter in effect and/or (ii) recovery under any directors’ and officers’
liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately
is determined to be entitled to such indemnification, Expense Advance or insurance recovery, as the
case may be; provided that Indemnitee shall be required to reimburse such Expenses in the event
that a final judicial determination is made (as to which all rights of appeal therefrom have been
exhausted or lapsed) that such action brought by Indemnitee, or the defense by Indemnitee of an
action brought by the Company or any other person, as applicable, was frivolous or in bad faith.

     5. Partial Indemnity, Etc. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the Expenses or other
Indemnifiable Amounts in respect of a Claim but not, however, for all of the total amount thereof,
the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is
entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that
Indemnitee has been successful on the merits or otherwise in defense of any or all Claims relating
in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein,
including dismissal without prejudice, Indemnitee shall be indemnified against all Expenses
incurred in connection therewith.

     6. Burden of Proof, Etc. In connection with any determination by the Reviewing Party
or otherwise as to whether Indemnitee is entitled to be indemnified hereunder the Reviewing Party,
court, any finder of fact or other relevant person shall presume that the Indemnitee has satisfied
the applicable standard of conduct and is entitled to indemnification, and the burden of proof
shall be on the Company (or any other person or entity disputing such conclusions) to establish, by
clear and convincing evidence, that Indemnitee is not so entitled.

     7. Reliance as Safe Harbor. For purposes of this Agreement, Indemnitee shall be
deemed to have acted in good faith and in a manner he or she reasonably believed to be in or not
opposed to the best interests of the Company if Indemnitee’s

7

 

actions or omissions to act are taken in good faith reliance upon the records of the Company,
including its financial statements, or upon information, opinions, reports or statements furnished
to Indemnitee by the officers or employees of the Company in the course of their duties, or by
committees of the Board of Directors, or by any other person (including legal counsel, accountants
and financial advisors) as to matters Indemnitee reasonably believes are within such other person’s
professional or expert competence and who has been selected with reasonable care by or on behalf of
the Company. In addition, the knowledge and/or actions, or failures to act, of any director,
officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of
determining the right to indemnity hereunder.

     8. No Other Presumptions. For purposes of this Agreement, the termination of any
Claim by judgment, order, settlement (whether with or without court approval) or conviction, or
upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee
did not meet any particular standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law. In addition, neither the
failure of the Reviewing Party to have made a determination as to whether Indemnitee has met any
particular standard of conduct or had any particular belief, nor an actual determination by the
Reviewing Party that Indemnitee has not met such standard of conduct or did not have such belief,
prior to the commencement of legal proceedings by Indemnitee to secure a judicial determination
that Indemnitee should be indemnified under applicable law shall be a defense to Indemnitee’s claim
or create a presumption that Indemnitee has not met any particular standard of conduct or did not
have any particular belief.

     9. Nonexclusivity, Etc. The rights of the Indemnitee hereunder shall be in addition
to any other rights Indemnitee may have under the Bylaws or Certificate of Incorporation or the
Delaware General Corporation Law or otherwise. To the extent that a change in applicable law
(whether by statute or judicial decision) permits greater indemnification by agreement than would
be afforded currently under the Bylaws or Certificate of Incorporation or this Agreement, it is the
intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so
afforded by such change. To the extent that there is a conflict or inconsistency between the terms
of this Agreement and the Certificate of Incorporation or Bylaws, it is the intent of the parties
hereto that the Indemnitee shall enjoy the greater benefits regardless of whether contained herein,
in the Certificate of Incorporation or Bylaws. No amendment or alteration of the Certificate of
Incorporation or Bylaws or any other agreement shall adversely affect the rights provided to
Indemnitee under this Agreement.

     10. Liability Insurance. To the extent the Company maintains an insurance policy or
policies providing directors’ and officers’ liability insurance, the Indemnitee shall be covered by
such policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for the Company’s directors and officers. If the Company has such insurance in effect at
the time the Company receives from Indemnitee any notice of the commencement of an action, suit or
proceeding, the Company shall give prompt notice of the commencement of such action, suit or
proceeding to the insurers in accordance with the procedures set forth in the policy. The

8

 

Company shall thereafter take all necessary or desirable action to cause such insurers to pay,
on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the
terms of such policy.

     11. Period of Limitations. No legal action shall be brought and no cause of action
shall be asserted by or in the right of the Company against Indemnitee, Indemnitee’s spouse, heirs,
executors or personal or legal representatives after the expiration of two years from the date of
accrual of such cause of action, and any claim or cause of action of the Company shall be
extinguished and deemed released unless asserted by the timely filing of a legal action within such
two-year period; provided, however, that if any shorter period of limitations is otherwise
applicable to any such cause of action such shorter period shall govern.

     12. Amendments, Etc. No supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by both of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

     13. Subrogation. Subject to Section 14 hereof, in the event of payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of
recovery of Indemnitee, who shall execute all papers reasonably required and shall do everything
that may be reasonably necessary to secure such rights, including the execution of such documents
necessary to enable the Company effectively to bring suit to enforce such rights. The Company
shall pay or reimburse all Expenses actually and reasonably incurred by Indemnitee in connection
with such subrogation.

     14. Jointly Indemnifiable Claims. Given that certain Jointly Indemnifiable Claims may
arise due to the relationship between the Indemnitee-Related Entities and the Company and the
service of the Indemnitee as a director and/or officer of the Company at the request of the
Indemnitee-Related Entities, the Company acknowledges and agrees that the Company shall be fully
and primarily responsible for the payment to the Indemnitee in respect of indemnification and
advancement of expenses in connection with any such Jointly Indemnifiable Claim, pursuant to and in
accordance with the terms of this Agreement, irrespective of any right of recovery the Indemnitee
may have from the Indemnitee-Related Entities. Under no circumstance shall the Company be entitled
to any right of subrogation or contribution by the Indemnitee-Related Entities and no right of
recovery the Indemnitee may have from the Indemnitee-Related Entities shall reduce or otherwise
alter the rights of the Indemnitee or the obligations of the Company hereunder. In the event that
any of the Indemnitee-Related Entities shall make any payment to the Indemnitee in respect of
indemnification or advancement of Expenses with respect to any Jointly Indemnifiable Claim, the
Company agrees that such payment or advancement shall not extinguish or affect in any way the
rights of the Indemnitee under this Agreement and further agrees that the Indemnitee-Related Entity
making such payment shall be subrogated to the extent of such payment to all of the rights of
recovery of the Indemnitee against the Company. Each of the Indemnitee-Related Entities shall be
third-party beneficiaries with respect to this Section 14, entitled to enforce this Section 14

9

 

against the Company as though each such Indemnitee-Related Entity were a party to this
Agreement.

     15. No Duplication of Payments. Subject to Section 14 hereof, the Company shall not
be liable under this Agreement to make any payment in connection with any Claim made against
Indemnitee to the extent Indemnitee has otherwise actually received payment (under any insurance
policy, or any provision of the Bylaws or of the Certificate of Incorporation or otherwise) of the
amounts otherwise indemnifiable hereunder.

     16. Defense of Claims. The Company shall be entitled to participate in the defense of
any Claim relating to an Indemnifiable Event or to assume the defense thereof, with counsel
reasonably satisfactory to the Indemnitee; provided that if Indemnitee believes, after
consultation with counsel selected by Indemnitee, that (i) the use of counsel chosen by the Company
to represent Indemnitee would present such counsel with an actual or potential conflict of
interest, (ii) the named parties in any such Claim (including any impleaded parties) include both
the Company and Indemnitee and Indemnitee concludes that there may be one or more legal defenses
available to him or her that are different from or in addition to those available to the Company,
or (iii) any such representation by such counsel would be precluded under the applicable standards
of professional conduct then prevailing, then Indemnitee shall be entitled to retain separate
counsel (but not more than one law firm plus, if applicable, local counsel in respect of any
particular Claim) at the Company’s expense. The Company shall not be liable to Indemnitee under
this Agreement for any amounts paid in settlement of any Claim relating to an Indemnifiable Event
effected without the Company’s prior written consent. The Company shall not, without the prior
written consent of the Indemnitee, effect any settlement of any Claim relating to an Indemnifiable
Event which the Indemnitee is or could have been a party unless such settlement solely involves the
payment of money and includes a complete and unconditional release of Indemnitee from all liability
on all claims that are the subject matter of such Claim. Neither the Company nor Indemnitee shall
unreasonably withhold, condition or delay its or his or her consent to any proposed settlement;
provided that Indemnitee may withhold consent to any settlement that does not provide a
complete and unconditional release of Indemnitee. In no event shall Indemnitee be required to
waive, prejudice or limit attorney-client privilege or work-product protection or other applicable
privilege or protection.

     17. No Adverse Settlement. The Company shall not seek, nor shall it agree to, consent
to, support, or agree not to contest any settlement or other resolution of any Claim(s), or
settlement or other resolution of any other claim, action, proceeding, demand, investigation or
other matter that has the actual or purported effect of extinguishing, limiting or impairing
Indemnitee’s rights hereunder, including without limitation the entry of any bar order or other
order, decree or stipulation, pursuant to 15 U.S.C. § 78u-4 (the Private Securities Litigation
Reform Act), or any similar foreign, federal or state statute, regulation, rule or law.

     18. Binding Effect, Etc. This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto and their respective successors, (including any
direct or indirect successor by purchase, merger, consolidation or

10

 

otherwise to all or substantially all of the business and/or assets of the Company), assigns,
spouses, heirs, executors and personal and legal representatives. The Company shall require and
cause any successor (whether direct or indirect by purchase, merger, consolidation, or otherwise)
to all or substantially all of the business and/or assets of the Company, by written agreement in
form and substance satisfactory to Indemnitee and his or her counsel, expressly to assume and agree
to perform this Agreement in the same manner and to the same extent that the Company would be
required to perform if no such succession had taken place. This Agreement shall continue in effect
regardless of whether Indemnitee continues to serve as an officer and/or director of the Company or
of any other entity or enterprise at the Company’s request.

     19. Security. To the extent requested by Indemnitee and approved by the Board of
Directors, the Company may at any time and from time to time provide security to Indemnitee for the
obligations of the Company hereunder through an irrevocable bank line of credit, funded trust or
other collateral or by other means. Any such security, once provided to Indemnitee, may not be
revoked or released without the prior written consent of such Indemnitee.

     20. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, all
portions of any paragraph of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby and (b) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable) shall be construed so
as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable
and to give effect to the terms of this Agreement.

     21. Specific Performance, Etc. The parties recognize that if any provision of this
Agreement is violated by the Company, Indemnitee may be without an adequate remedy at law.
Accordingly, in the event of any such violation, Indemnitee shall be entitled, if Indemnitee so
elects, to institute proceedings, either in law or at equity, to obtain damages, to enforce
specific performance, to enjoin such violation, or to obtain any relief or any combination of the
foregoing as Indemnitee may elect to pursue.

     22. Notices. All notices, requests, consents and other communications hereunder to
any party shall be deemed to be sufficient if contained in a written document delivered in person
or sent by facsimile, nationally recognized overnight courier or personal delivery, addressed to
such party at the address set forth below or such other address as may hereafter be designated on
the signature pages of this Agreement or in writing by such party to the other parties:

     (a) If to the Company, to:

11

 

RailAmerica, Inc.

7411 Fullerton Street, Suite 300

Jacksonville, Florida 32256

Fax:

Attn: Scott Williams, Esq.

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

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036-6522

Fax: (212) 735-2000

Attn: Joseph A. Coco, Esq.

     (b) If to the Indemnitee, to the address set forth on Annex A hereto.

All such notices, requests, consents and other communications shall be deemed to have been given or
made if and when received (including by overnight courier) by the parties at the above addresses or
sent by electronic transmission, with confirmation received, to the facsimile numbers specified
above (or at such other address or facsimile number for a party as shall be specified by like
notice). Any notice delivered by any party hereto to any other party hereto shall also be
delivered to each other party hereto simultaneously with delivery to the first party receiving such
notice.

     23. Counterparts. This Agreement may be executed in counterparts, each of which shall
for all purposes be deemed to be an original but all of which together shall constitute one and the
same agreement. Only one such counterpart signed by the party against whom enforceability is
sought needs to be produced to evidence the existence of this Agreement.

     24. Headings. The headings of the sections and paragraphs of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this Agreement or to
affect the construction or interpretation thereof.

     25. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware applicable to contracts made and to be performed
in such state without giving effect to the principles of conflicts of laws.

[Signature page follows]

12

 

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

	 	 	 	 	 	 	 
	 	 	RAILAMERICA, INC.	 	 
	 

	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	[Indemnitee]	 	 

[SIGNATURE PAGE TO INDEMNIFICATION AGREEMENT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]