Document:

Exhibit 10.50

 

Description of Compensatory Arrangement

 

On April 19, 2017, the Board of Directors of NeuroOne Medical
Technologies Corporation (the “Company”) increased the annual performance bonus target of Thomas Bachinski, the Company’s
chief development officer, to 35% of his base salary for 2017. Pursuant to the offer letter, dated January 9, 2017, Mr. Bachinski
was previously entitled to an annual performance bonus target of 25% of his base salary.supplyagrmntgatxredacc0b

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                SUPPLY AGREEMENT         This Supply Agreement (this “Agreement”) is made as of this 30th day of July, 2018 (the  “Effective Date”), by and between GATX Corporation, a corporation organized under the laws  of  the  State  of  New  York  (“Buyer”),  and  American  Railcar  Industries,  Inc.,  a  corporation  organized under the laws of the State of North Dakota (“Seller”) (collectively, the “Parties” and  individually, a “Party”).                In  consideration  of  the  mutual  promises  contained  herein  and  other  good  and  valuable  consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer  agree as follows:          1.    TERM.  Except to the extent earlier terminated pursuant to the terms hereof, the term of        this Agreement shall commence on the Effective Date and end on December 31, 2023        (the  “Term”); provided,  that  if  Seller  has  not  Delivered  (as  defined  in  Section  10.1        hereof) all of the Railcars (as defined in Section 3.1 hereof) ordered by Buyer hereunder        on or before the end date of the Term, the Term of this Agreement shall expire on the        date the last Railcar is Delivered.          2.    PURCHASE COMMITMENT AND QUANTITY; ADDITIONAL CAPACITY.           2.1.  Base  Order  Quantity.  Except  to  the  extent  earlier  terminated  pursuant  to  the              terms  hereof,  (i)  Buyer  hereby  commits  to  purchase  during  the  Term  a  total  of              seven thousand six hundred fifty (7,650) Railcars (the “Base Order Quantity”) and              to  submit  to  Seller,  pursuant  to  the  terms  of  this  Agreement,  Buyer’s  purchase              orders to fulfill such commitment, and (ii) Seller agrees to manufacture, sell and              Deliver to Buyer during the Term the Base Order Quantity of Railcars as ordered              by Buyer.         2.2.  Additional  Railcars.   Buyer  shall  have  the  option  (but  not  the  obligation)  to              purchase up to an additional [*****] (the “Additional Railcar Monthly Quantity”)              Railcars  per  month  (such  Railcars,  the  “Additional  Railcars”),  on  a  month-by-             month basis, scheduled to Deliver during the Base-Term, such Additional Railcars              not  to  exceed [*****] (each,  an  “Additional  Railcar  Option”),  by  delivery  of              irrevocable written notice in accordance with Section 9.3 hereof.         2.3.  Notwithstanding  anything  to  the  contrary  contained  herein,  Buyer  shall  not  be              required  to  purchase,  and  Seller  shall  not  be  required  to  manufacture,  sell  and              Deliver, any Railcars in excess of (i) the Base Order Quantity, or (ii) in the event              any  Additional  Railcar  Options  are  exercised,  the  Additional  Railcar  Monthly              Quantity, under the terms of this Agreement.                                             

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.    3.    RAILCARS AVAILABLE FOR PURCHASE; CERTAIN DEFINITIONS.           3.1.  Seller shall make available for sale, and Buyer shall have the opportunity to              purchase, in accordance with the terms hereof, the types of railcars (the “Railcar              Types”) set forth on Exhibit A.  Railcars of the Railcar Types set forth on Exhibit              A shall be referred to herein as a “Railcar” or “Railcars”.  In the event that, after              the Effective Date, a New Railcar Type (as defined below) becomes available,              such New Railcar Type shall be deemed added to Exhibit A [*****] and Buyer              shall thereafter have the opportunity to purchase Railcars of such New Railcar              Type.  Seller shall use its commercially reasonable efforts to promptly, but in no              event later than [*****] after a New Railcar Type becomes available for              purchase, notify Buyer that a New Railcar Type has become available for              purchase.  A “New Railcar Type” becoming available for purchase means              [*****].  For any New Railcar Type that is deemed added to Exhibit A in              accordance with this Section 3.1, such New Railcar Type shall be designated as a              “Tank Railcar Category” Railcar, “Non-Tank Railcar Category” Railcar, or              [*****] Railcar on Exhibit A.  [*****].                      3.2.  For purposes of this Agreement:              3.2.1. “Affiliate”  shall  mean,  with  respect  to  any  Person,  any  other  Person                  controlling, Controlled by, or under common Control with the first Person.             3.2.2. “Components”  means,  for  all  Railcars,  running  gear  (trucks,  braking and                  draft systems) and closures (valves, fittings, gates, hatch covers).             3.2.3. “Control”  (including  the   terms  “controlling,”  “controlled  by”  and  “under                  common control  with”) means  the possession,  directly or indirectly, of the                  power to direct or cause the direction of the management or the policies of a                  Person, whether through the ownership of at least fifty one percent (51%) of                  the voting securities, by contract or otherwise.              3.2.4. [*****].             3.2.5. “Order  Year”  shall  mean,  within  respect  to  the  Initial-Term,  the  period                  beginning  on  April [*****] 2019  and  ending  on  December  31,  2019,  and                  with respect to the Base-Term, beginning on January 1, 2020, each calendar                  year period of twelve (12) consecutive months during the Base-Term.             3.2.6. “Person” shall mean an individual, partnership, limited partnership, limited                  liability company, trust, business trust, estate, corporation, custodian, trustee,                  executor,  administrator,  nominee,  business  trust,  registered  limited  liability                  partnership,  association,  government,  governmental  subdivision,                                         2    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                    governmental  agency,  governmental  instrumentality  and  any  other  legal  or                  commercial entity in its own or in a representative capacity.            3.2.7. “Tank  Railcar  Category”  shall  mean  the  category  of  Railcar  Types                 designated  as  “Tank”  Railcar  Types  on Exhibit  A,  which  shall  include                 Railcars constructed to AAR mechanical designation “T”.            3.2.8. “Non-Tank  Railcar  Category”  shall  mean  the  category  of  Railcar  Types                 designated as “Non-Tank” Railcar Types on Exhibit A, which shall include                 Railcars constructed to AAR mechanical designations other than “T”.             3.2.9. [*****].             3.2.10. [*****].   4.    SPECIFICATION.                4.1.  With respect to each Railcar, the applicable “Specification” shall conform to then-             current  applicable  Regulations  and  shall  consist  of  (i)  Seller’s  then-current              standard specification for the Railcar Type of such Railcar as of the date of the              applicable  Seller’s  Order  Confirmation  (as  defined  in  Section  9.9.2  hereof)  as              designated by the applicable “Seller Spec. No.” (hereinafter referred to as “Seller              Specification”),  (ii)  any  materials,  parts,  Components,  or  railcar  configuration              alternatives  requested  by  Buyer  and  specified  in  the  applicable  Seller’s  Order              Confirmation  (“Alternates”) and (iii) as  subsequently modified after the  date of              Seller’s Order Confirmation in any Change Orders (as defined in Section 9.10), if              applicable.  The Seller  Specification shall  not include,  and  Seller  may  not  use,              [*****].                      4.2.  As of the Effective Date and within [*****] of the first day of each Order Year              following  the  Effective  Date,  Seller  shall  provide  a  copy  of  the Seller              Specification for each Railcar Type listed on Exhibit A-2 to Buyer.  In the case of              Railcar Types that may be added to Exhibit A-2 in accordance with Section 9.7              and  New  Railcar  Types  that  may  be  added  to Exhibit  A in  accordance  with              Section  3.1,  a  copy  of  the Seller Specification  for  such  Railcar  Type  added  to              Exhibit  A-2 or  such  New  Railcar  Type  added  to Exhibit  A shall  be [*****].               Seller may reasonably modify the Seller Specification from time to time during              Term, which updates to the Seller Specification shall be identifiable by revision              date  and  version  number  and  copies  of  which  will  be  made  available  to  Buyer              upon  Buyer’s  written  request.   Notwithstanding  the  foregoing,  at  least [*****]              prior to the implementation of an updated Seller Specification, Seller shall notify              Buyer  in  writing  and  provide  a  copy  of  any  updated Seller Specification  for              Railcar  Types  then-listed  on Exhibit  A-2 or  New  Railcar  Types  then-listed  on              Exhibit A that would reasonably be considered a significant or material change to                                         3    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                such Seller Specification,  e.g.,  structural  changes  to  the  Railcar  Type,  as              applicable, changes in Component manufacturer, make or model, and changes to              safety systems.                      4.3.  [*****].   5.    RAILCAR PRICING.         5.1.  Pricing for Railcars Other Than [*****].                       5.1.1. Buyer’s  Estimated  Base  Sales  Price  and  Seller’s  Order  Confirmation                  Price  for  Railcars  Other  Than [*****].   The  “Buyer’s  Estimated  Base                  Sales Price”  for  Railcars  (other  than  Railcars  in  the [*****])  shall  be                  calculated  by [*****].   “Seller’s  Order  Confirmation  Price”  for  Railcars                  (other than Railcars in the [*****]) shall equal [*****].                               5.1.2. Invoice Price for Railcars Other Than [*****].  Seller’s “Invoice Price”                  for a Railcar (other than Railcars in the [*****]) shall be calculated [*****].                      5.1.3. Seller’s  Order  Confirmation  Price  and  Invoice  Price for [*****].                   Notwithstanding Section 5.1.2 above, Seller’s Order Confirmation Price and                  Invoice Price for a [*****] (as defined in Section Error! Reference source                  not found.) for [*****] (as defined in Section Error! Reference source not                  found.) shall also include [*****].                5.2.  Pricing for [*****].               5.2.1. Seller’s  Order  Confirmation  Price  for [*****].  “Seller’s  Order                  Confirmation Price” for Railcars in the [*****] shall equal [*****].               5.2.2. [*****].             5.2.3. Invoice  Price  for [*****].   Seller’s  “Invoice  Price”  for Railcars  in  the                  [*****] shall be calculated [*****].              5.2.4. New Railcar Types that are [*****].  Subject to Sections 5.2.1, 5.2.2, and                  5.2.3, Seller shall offer any Railcars of New Railcar Types that are added to                  Exhibit A after the Effective Date in accordance with Section 3.1 that are in                  the [*****] for sale to Buyer at [*****].         5.3.  [*****].             5.3.1. [*****],                                          4    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                      5.3.1.1. [*****].                                              5.3.1.2. [*****].                             5.3.1.3. [*****].                                        5.3.2. [*****].             5.3.3. [*****].             5.3.4. [*****].         5.4.  Pricing Examples.  The Parties agree that the pricing examples dated as of the              Effective  Date  and  initialed  by  the  Parties  reflect  the  methodology  by  which              calculations  shall  be  made  for  Railcar  pricing  pursuant  to  Sections 5 and 6              hereunder.         5.5.  [*****].   6.    SELLER’S STANDARD MANUFACTURING COST.         6.1.  Except  as  otherwise  expressly provided  herein,  all calculations  of  Seller’s              Standard Manufacturing Cost (as defined below) shall conform to and be made              using Seller’s costing guidebook (the “Costing Guidebook”) and costing policy,              each  dated  and  current  as  of  the  Effective  Date,  initialed  by  the  Parties  and              separately delivered (collectively, “Seller’s Costing Policy”).                    6.1.1. Subject to Section 6.1.2 with respect to the Costing Guidebook, Seller may                  modify Seller’s Costing Policy [*****].                               6.1.2. Seller may modify its Costing Guidebook [*****].                      6.1.3. [*****].                              6.1.4. [*****].                     6.1.5. Following any modifications to Seller’s Costing Policy permitted hereunder,                  Seller shall [*****] provide an updated copy (which shall indicate the date                  of the most recent revision) of Seller’s Costing Policy to Buyer, which shall                  be initialed by the Parties and replace the prior version of Seller’s Costing                  Policy as of the date of such revision without further action of the Parties.                                                        5    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.              6.1.6. Notwithstanding  anything  to  the  contrary  contained  in  Seller’s  Costing                  Policy, in the event of any conflicts between this Agreement and the Seller’s                  Costing Policy, the terms of this Agreement shall control.                        6.2.  “Seller’s  Standard  Manufacturing  Cost”  means,  with  respect  to  any  Railcar,              [*****].         6.3.  [*****].             6.3.1. [*****].               6.3.2. [*****].    7.    AUDIT.          7.1.  During the Term of this Agreement and continuing thereafter for [*****], Seller              shall  maintain  (x) [*****] (collectively,  the  “Seller  Records”)  and  (y) [*****]              (collectively,  the “Seller  Production  Plans”),  in  each  case  for  each  Order  Year              during the Term.  Seller shall maintain the Seller Records in conformance with              generally accepted accounting principles.  [*****].         7.2.  During  the  Term  and  for [*****],  Buyer  or  its  representatives  may,  at  Buyer’s              expense, use the services of a third party auditor mutually agreeable to the parties              (the  “Auditor”)  to  audit  and  inspect  (i)  the  Seller  Records [*****] (a  “Seller              Records  Audit”),  and  (ii)  the  Seller  Production  Plans [*****] (a  “Seller              Production Plans Audit”).  For purposes of this Agreement, an “Audit” may refer              to  a  Seller  Records  Audit  or  Seller  Production  Plans  Audit.   Seller  and  Buyer              agree that, subject to the execution of the confidentiality agreement referenced in              the  following  sentence, [*****] is  an  acceptable  Auditor  for  purposes  of  this              Agreement.  Seller shall not unreasonably withhold or condition its approval of              such Auditor; provided, that no Auditor shall be permitted to perform an Audit              without  first  executing  a  confidentiality  agreement  reasonably acceptable  to              Seller,  substantially  in  the  form  attached  hereto  as Exhibit  H hereof.   Such              confidentiality agreement shall provide, among other things, that the Auditor (but              not Buyer) shall be entitled to review, as part of the Audit, the Seller Records or              the Seller Production Plans, as applicable, and such Auditor may share the results              of the Audit with Buyer on a “no-name basis” (as to Seller’s other customers), but              may not share the Seller Records or the Seller Production Plans provided to the              Auditor.  Any Audit performed under this Section 7.2 shall be conducted at any              time during Seller’s regular business hours at Seller’s principal place of business              and shall not unreasonably interfere with Seller’s operations; provided, that Seller              will provide the Auditor with access to the Seller Records or the Seller Production              Plans,  as  applicable,  and  Seller’s  personnel,  accountants,  and  any  other              information that is reasonably necessary to perform an Audit.                                           6    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.          7.3.  Any Seller Records Audit shall require at  least [*****] advance notice.  Buyer              shall  not  exercise  its  audit  rights  for  a  Seller  Records  Audit  under  Section 7.2              more than [*****] in any [*****].         7.4.  If a Seller Records Audit discloses any discrepancies with respect [*****], Buyer              may request in writing a refund or credit for such discrepancies.  Seller shall have              [*****] from its receipt of Buyer’s request to respond.  If Seller does not respond              by  the  end  of  such [*****] period  or  if  Seller  concurs  with  any  or  all  of  the              Auditor’s findings, it shall issue a refund or credit to Buyer within [*****] in the              full amount of Buyer’s request, unless Seller disputes a portion of the Auditor’s              findings, in which case it shall issue a refund or credit to Buyer in the amount that              is not disputed by Seller.  If Seller disputes any or all of the Auditor’s findings,              the  Parties  shall  promptly  discuss  the  Auditor’s  findings  under  dispute  and              attempt to reach a settlement.  If the Parties reach a settlement on any or all of the              disputed findings, Seller shall issue a refund or credit to Buyer within [*****] in              the  agreed  amount.   If  the  Parties  cannot  reach  a  settlement  on  the  remaining              disputed findings within [*****] from the date of Buyer’s request for a refund or              credit, Buyer may [*****].         7.5.  [*****].     8.    [*****].     9.    ORDERS.          9.1.  Base Order Quantities.              9.1.1. Buyer shall place Orders for Railcars that will be scheduled to Deliver at the                 rate  of [*****] (the  “Initial-Term”),  for  a  cumulative  total  of [*****]                 (“Initial-Term Railcars”).             9.1.2. Buyer shall place Orders for Railcars that will be scheduled to Deliver at the                 rate of [*****] (the “Base-Term”), for a cumulative total of [*****] (“Base-                Term Railcars”).            9.1.3. Each of the Base Order Quantity of Railcars described in Sections 9.1.1 and                 9.1.2 above shall be collectively referred to herein as “Scheduled Railcars”.                  The  term  “Monthly  Order  Quantity”  shall  mean  the  applicable  number  of                 Railcars that Buyer shall Order on a monthly basis pursuant to Sections 9.1.1                 and 9.1.2 above.         9.2.  Intentionally Omitted.                                          7    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.          9.3.  Orders of Additional Railcars.              9.3.1. Upon  Buyer’s  written  request,  Buyer  may  elect  to  exercise  an  Additional                 Railcar Option.  In the event that an Additional Railcar Option is exercised,                 Buyer shall, subject to Section Error! Reference source not found. below,                 place Orders for up to the Additional Railcar Monthly Quantity of Additional                 Railcars that will be scheduled to Deliver [*****]; provided, that Seller shall                 not  be  required  to  Deliver  more  than the  Additional  Railcar  Monthly                 Quantity of Additional Railcars in any month during the Term[*****].            9.3.2. [*****].         9.4.  [*****].            9.5.  [*****].            9.5.1. [*****].            9.5.2. [*****].            9.5.3. [*****].                 9.6.  Production Slot Allocation[*****].                                    9.6.1. Seller shall schedule (i) [*****] car production slots  in each month during                 the Initial-Term for Scheduled Railcars, and (ii) [*****] car production slots                 in each month during the Base-Term for Scheduled Railcars, and (iii) in the                 event  that  an  Additional  Railcar  Option  has  been  exercised, the  applicable                 amount  of  car  production  slots  in  the  scheduled  Delivery  month  for  such                 Additional Railcars (collectively, “Allocated Production Slots”).                                    9.6.2. [*****].              9.6.3. [*****].                  9.7.  [*****] Price  Lists;  Pricing  Proposals.  During [*****],  Buyer  shall  provide              Seller with a list totaling [*****] Railcars of the Railcar Types listed on Exhibit              A-2 hereto for which Seller shall provide Buyer with [*****] updates to Buyer’s              Estimated  Base  Sales  Price(s)  (the  “[*****] Price  List”).   In  the  event  that  a              Railcar of a particular Railcar Type is not listed on the [*****] Price List, upon              Buyer’s  written  request,  Seller  shall  use  commercially  reasonable  efforts  to              promptly  provide  Buyer  with  a  written  pricing  proposal  for  Railcars  of  the              requested Railcar Type, but in any event within [*****] following such request,                                         8    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                which  pricing  proposal  shall  be  consistent  with  the  terms  of  this  Agreement              [*****].                9.8.  Order Form.  Each order submitted by Buyer shall be in the form set forth on              Exhibit B attached hereto and shall be subject to the terms and conditions of this              Agreement  (“Order”).   Each  Order  shall  specify  (i)  the  Railcar  Type;  (ii)  the              quantity  of  Railcars  for  each  Railcar  Type;  (iii)  any  Alternates  for  the  Railcars              ordered;  (iv)  any [*****];  (v)  any [*****];  and [*****].   Upon  Seller’s              reasonable written request, Buyer will promptly correct any Order that does not              conform to the form set forth on Exhibit B.                9.9.  Order Placement.                          9.9.1. Monthly Orders for Railcars of specific Railcar Types must be placed prior                 to their Allocated Production Slots by delivering each such Order to Seller                 on an Order form (i) at least [*****] in advance, in the case of Scheduled                 Railcars [*****],  (ii) at  least [*****] in  advance in  the  case of Scheduled                 Railcars [*****], and  (iii)  at  least [*****] in  advance  in  the  case  of                 Additional Railcars (as applicable, the “Lead Times”); [*****].            9.9.2. Within [*****] after Seller’s receipt of an Order, Seller shall provide Buyer                 with  an  order  confirmation,  substantially  in  the  form  of Exhibit  C and  in                 accordance  with  the  terms  hereof,  confirming  (i)  the  Seller’s  Order                 Confirmation  Price  for  Railcars  and  (ii)  the  month the  Railcars  will                 commence Delivery (the “Seller’s Order Confirmation”).  Within [*****] of                 Seller’s issuance of an Order Confirmation, Seller shall add Buyer’s Order to                 the  Buyer  Delivery  schedule  (the  “Buyer’s  Delivery  Schedule”)  indicating                 the  quantity of  Railcars  to  be  Delivered  each  month  (the  “Committed                 Delivery  Month”),  a  copy  of  which  shall  be  promptly  provided  to  Buyer.                  Within [*****] of the first Railcar Delivery in a Committed Delivery Month,                 Seller  shall  update  Buyer’s  Delivery  Schedule  to  reflect [*****] (the                 “Committed  Delivery  Date”),  a  copy  of  which  update  shall  be  promptly                 provided to Buyer.  [*****].              9.9.3. Each Order for Railcars that complies with this Section 9 shall be deemed to                 have  been  accepted  by  Seller  and  shall  represent  a  firm  commitment  by                 Seller to manufacture, sell, and Deliver, and for Buyer to purchase and take                 Delivery  of,  the  Railcars  specified  in  such  Order  in  accordance  herewith,                 regardless  of  whether  Seller  has  complied  with  its  obligation  to  return  a                 signed  Order  Confirmation  to  Buyer  in  the  time  specified  under  Section                 9.9.2.                                          9    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.             9.9.4. If any term or condition in Buyer’s Order, Seller’s Order Confirmation,  or                 other documentation by or from either Party relating to the subject matter of                 the Order or of this  Agreement conflicts  with  or adds  to  or supplements  a                 term  or  condition  of  this  Agreement,  the  terms  or  conditions  of  this                 Agreement shall control and the conflicting, additional or supplemental term                 or condition, as the case may be, shall be without force or effect with respect                 to such subject matter or Order, unless and to the extent the Parties otherwise                 expressly agree to override a specific term or condition of this Agreement in                 a writing signed by a senior officer (vice president level or higher) of each                 Party.         9.10. Change Order.  Once a Seller’s Order Confirmation has been issued to Buyer,              Buyer  may  request  in  writing  a  change  in  an  Order  specifying  the  particular              Railcars  that  are  subject  to  Buyer’s  request  and  the  requested  change.   Within              [*****] following  receipt  of  such  request,  Seller  shall  provide  Buyer  with  a              change  order  quote  (“Change  Order  Quote”)  comprised  of [*****].   If  Buyer              accepts  Seller’s  Change  Order  Quote,  Buyer shall  issue  a  confirming  change              Order  (“Change  Order”)  to  Seller  within [*****] after  receipt  of  the  Change              Order Quote.   If Seller  does  not  receive a Change  Order from  Buyer accepting              Seller’s Change Order Quote within such required timeframe, Buyer’s Order will              not be modified, and the affected Railcars shall be built in accordance with the              original Seller Specification and subject to the original Seller Order Confirmation              Price. [*****].           9.11. Regulation-Mandated  Changes.   Seller  will  promptly  notify  Buyer of  any              changes or additions to the Seller Specification mandated by the DOT, the FRA,              Transport Canada, or the AAR (“Regulation-Mandated Changes”) and provide to              Buyer a copy of any such updated or additional Seller Specification.  [*****].                      9.12. Construction Locations.  Except as otherwise agreed in writing by the Parties,              all Railcars shall be manufactured and assembled at [*****].   10.   DELIVERY, TITLE AND SHIPMENT.         10.1. Delivery; Title.  Unless otherwise agreed to in writing and signed by both Seller              and  Buyer,  “Delivery”  (including  the  terms  “Deliver”  and  “Delivered”)  of  the              Railcars  shall  be  defined  as  providing  disposition  to  the  railroad  for  the  first              forwarding  of  a  Railcar,  F.O.B.  Seller’s  plant.   Unless  otherwise  agreed  to  in              writing and signed by both Seller and Buyer, Buyer agrees to accept Delivery of              all or any number of the Railcars as they are accepted pursuant to Section 11.1.               Exclusive ownership, rights of possession and control, and risk of loss and title to              each Railcar manufactured by Seller will pass to Buyer at the time of Delivery of              such Railcar.                                         10    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.          10.2. Shipment.  After  acceptance  of  a  Railcar  in  accordance  with  Section  11.1,  at              Buyer’s  written  request,  Seller  will  Deliver  such  Railcar  towards  Buyer  or              Buyer’s customer at the place designated by Buyer to Seller and [*****].         10.3. [*****].                       10.4. Force Majeure Events.                          10.4.1. Neither Party shall be liable for any delay or failure to perform in whole or in                  part  caused  by  a  Force  Majeure  Event  (as  defined  below)  which  adversely                  impact  the  performance  of  such  Party’s  obligations regardless  of  when                  occurring, including, but not limited to, (i) restrictions or regulations imposed                  by the federal or any state government or any subdivision or agency thereof;                  acts of God; war, preparation for war or the acts or interventions of naval or                  military  executives  or  other  agencies  of  government;  acts  of  terrorists;                  blockade, sabotage, vandalism, malicious mischief, bomb scares, insurrection                  or threats thereof; landslides, hurricanes, earthquakes or other natural calamity;                  collisions, fires, floods, accidents, or casualties, or other causes beyond such                  Party’s reasonable control; and (ii) as to Seller, delays of subcontractors or of                  carriers by land, sea or air; strikes, work stoppages, shortage of labor, lockouts                  (other  than  Seller  instituted  lockouts)  or  other  industrial  disturbances;                  shortages  or  late  delivery  of  supplies  (including,  without  limitation,  fuel                  supplies) or raw materials (including, without limitation, steel)  (collectively,                  “Force  Majeure  Events”).   Notwithstanding  the  foregoing, a  Force  Majeure                  Event shall not include a Party’s inability to make payments required under                  this Agreement except to the extent that such Party is unable to access funds                  that would  otherwise be  available to it but for a  failure or disruption of the                  national or global banking system or the systems of such Party’s bank that is                  not attributable to any failing of such Party.                    10.4.2. In  the  event  of  any  Force  Majeure  Event,  the  affected  Party  shall  provide                  prompt written notice to other Party of the occurrence of such Force Majeure                  Event, its effect on such Party’s performance hereunder, and how long such                  Party expects the Force Majeure Event to continue, which the affected Party                  shall  update  in  writing  as  reasonably  necessary  to  keep  the  other  Party                  informed  of  the  status  thereof.   The  affected  Party  shall  use  commercially                  reasonable efforts to diligently end the failure or delay and ensure the effects                  of such Force Majeure Event are minimized.  The affected Party shall resume                  the performance of its obligations as soon as reasonably practicable.                     10.4.3. In  the  event  of  any  Force  Majeure  Event,  the  Parties  agree  the  date  of                  Delivery or performance shall be extended for a period equal to the time lost                  by reason of the delay; provided, however, that if the period of delay exceeds                                         11    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                    [*****] from  the  original  Committed  Delivery  Date  (the  “Excused  Delay                  Period”), Buyer may, upon written notice and at any time after the expiration                  of the Excused Delay Period, [*****].                     10.4.4. In the event that the occurrence of a Force Majeure Event affects a Party’s                  performance  of  its  obligations  hereunder  for  more  than  two  hundred  forty                  (240)  consecutive  days,  the  other  Party  may  terminate  this  Agreement                  thereafter upon [*****] advance written notice.     11.   QUALITY OF RAILCARS.         11.1. Inspection and  Acceptance.  Seller shall  give  Buyer  (or  its  agent  or              representative) reasonable access to Seller’s manufacturing facilities to inspect the              Railcars  during  construction.   Such  inspections  shall  be  so  conducted  as  to  not              interfere  unreasonably  with  Seller’s  operations.   Acceptance  or  rejection  of  a              Railcar shall be made by Buyer before Delivery of Railcars manufactured in the              United States.  In the event Buyer chooses to inspect the Railcars or have its agent              or representative inspect the Railcars, upon completion of such inspection, Buyer              or  its  agent  or  representative,  as  applicable,  shall  execute  a  certificate  of              acceptance  substantially  in  the  form  of Exhibit  D hereof  covering  all  Railcars              found to  be completed in accordance with  the Specification  and shall promptly              deliver the  executed  certificates  of  acceptance  to  Seller  (each,  a  “Certificate  of              Acceptance”).  Each Certificate of Acceptance, with respect to Railcars covered              thereby, shall indicate that, based upon such inspection, such Railcars conform in              workmanship,  material  and  construction,  and  in  all  other  respects,  to  the              applicable  Specification  and  the  requirements  and  provisions  of  the  applicable              Order.  If  Buyer,  upon  receiving  notice  of  when  the  Railcars  will  be  ready  for              inspection and provided that such Railcars are available for inspection, chooses              not to have an inspector present within [*****] after the date that the notice states              that the Railcars shall be ready for inspection or Buyer’s inspector fails to inspect              the Railcars within [*****] after the date that the notice states the Railcars will be              ready  for  inspection,  Buyer  shall  be  deemed  to  have  accepted  the  applicable              Railcars at the close of business on the day that is [*****] after the date that such              Railcars were ready for inspection and Seller will execute, on behalf of Buyer, a              Certificate of Acceptance dated as of the day that is [*****] after the date that              such  Railcars  were  ready  for  inspection.   Notwithstanding  anything  to  the              contrary set forth herein or in any Certificate of Acceptance, the execution of a              Certificate  of  Acceptance  shall  not  relieve  the  Seller  of  any  of  its  obligations              under the Agreement nor shall it constitute a waiver by the Buyer of any of its              rights and remedies under this Agreement with respect to any defect or deficiency              of  workmanship,  materials,  construction  or  other  deviation  from  the  terms  and              conditions  of  this  Agreement.   For  the  avoidance  of  doubt,  the  rights  and              obligations  of  Buyer  (or  its  agent  or  representative,  as  applicable)  under  this                                         12    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                Section 11.1 shall apply exclusively to  Buyer (or its  agent  or representative, as              applicable), and shall not apply to any lessee or customer of Buyer.                       11.2. Rejected  Railcar. If,  prior  to  the  Delivery  of  a  Railcar,  Buyer’s  inspection              determines  that  the  manufacture  of  the  Railcar  does  not  comply  with  the              applicable Specification, Buyer may reject such Railcar and, in such event, Buyer              shall notify Seller in writing no later than the [*****] immediately following the              completion of Buyer’s inspection, specifying in reasonable detail the reason(s) for              such rejection.  Seller shall substitute for the rejected Railcar the next Railcar in              Seller’s  production  line  for  Railcars  identical  to  the  rejected  Railcar  that  were              ordered  contemporaneously  therewith  and  repair  or  replace  the  rejected  Railcar              for  re-inspection  and  acceptance  by  Buyer.  The  foregoing  process  shall  be              repeated until the replacement Railcar or corrected Railcar is acceptable to Buyer;              provided, however, that if within [*****] from and after the date the final Railcar              is Delivered under such Order (excluding any Railcars not Delivered due to the              rejection of such Railcar in accordance with this Section 11.2), Seller has failed to              either  repair  a  Railcar  that  was  rejected  so  that  it  complies  with  the  applicable              Specification  and  Regulations  or  provide  a  replacement  Railcar  for  the  Railcar              that was rejected [*****].  For the avoidance of doubt, the rights and obligations              of  Buyer  (or  its  agent  or  representative,  as  applicable)  under  this  Section  11.2              shall apply exclusively to Buyer (or its agent or representative, as applicable), and              shall not apply to any lessee or customer of Buyer.                12.   PAYMENT AND CLOSING.         12.1. Payment  of  Purchase  Price  and  Closing  of  Sale.  On  or  before [*****]              following  Buyer’s  receipt  of  (i)  the  shipping  report  for a  Railcar,  including  the              lightweight  of  each  Railcar  shipped  and  each  Railcar’s  assigned  number,  (ii)  a              Certificate of Acceptance executed by Buyer’s inspector, or the acceptance of any              such  Railcar  has  been  deemed  pursuant  to  Section  11.1  hereof,  (iii)  Seller’s              invoice  for  such  Railcar(s)  with  the  Invoice  Price  broken  down  to  detail  the              components thereof, if applicable, and substantially in the form attached hereto as              Exhibit E hereof, and (iv) Seller’s executed Bill of Sale substantially in the form              attached hereto as Exhibit F, Buyer shall pay the Invoice Price for each Railcar              manufactured and Delivered by Seller and accepted by Buyer via wire transfer or              ACH to Seller (pursuant to such payment instructions for each method of payment              as Seller shall provide to Buyer in advance of the due date for such amounts).                  12.2. Taxes.  Buyer  is  solely  responsible  for  all  federal,  state,  or  local  sales,  use,  or              other  taxes  or  charges,  however  designated  or  imposed,  by  any  domestic              governmental  authority  or  agency, upon  any  Railcar  purchased  and  sold              hereunder,  or  upon  the  sale,  transportation,  use,  or  Delivery  thereof,  that  is              required to be paid or collected by Seller, directly or indirectly, whether the same                                         13    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                is assessed against Seller on behalf of Buyer or by virtue of Seller’s contracts with              Seller’s  vendors  (collectively,  “Taxes”) [*****]. In  the  event  an  amount  for              applicable Taxes  is  not  included in  Seller’s  invoice for Buyer’s  account,  Buyer              shall remain solely responsible for the payment of such Taxes.  [*****].                12.3. Late Payments.  [*****] if any payment is not received by a Party on or before              the due date for such payment, and such failure continues for [*****] after such              due date, such Party shall charge the other Party interest on any unpaid balance at              the prime rate per annum in effect on such due date at Bank of America, Illinois,              plus [*****] or the highest rate permitted by law, whichever is lower, from the              date  such  payment  was  due  through  and  including  the  date  on  which  actual              payment in full is made by such other Party.                12.4. [*****].    13.   MANUFACTURING WARRANTIES AND DISCLAIMERS; IP INDEMNITY          13.1. Manufacturing Warranties.                    13.1.1. Seller warrants to Buyer that, for a period of [*****] after Delivery of the                  applicable  Railcars  (the  “Warranty  Period”),  (i)  the  assembly, construction                  and manufacture of the  Railcars by Seller, Seller’s  employees and Seller’s                  subcontractors will be in accordance with the Specification and Regulations                  (as defined in Section 13.1.8), and (ii) the material and workmanship of the                  Railcars furnished by Seller, Seller’s employees and Seller’s subcontractors                  will  be  free  from  defects  under  normal  use  and  service  for  the  Warranty                  Period.  Seller’s warranties in this Agreement shall not apply to, and Seller                  shall not be responsible for, any failure of any Railcar purchased hereunder                  which  has  been  subjected [*****].  Further,  Seller’s  warranties  in  this                  Agreement  shall  not  apply  to,  and  Seller  shall  not  be  responsible  for,  the                  deterioration of any Railcar purchased hereunder to the extent resulting from                  [*****].  Seller’s only obligation to Buyer and Buyer’s sole and exclusive                  remedy  for  any  warranty  claims  related  to  or  arising  from  the  Railcars  is                  limited to promptly repairing, modifying or replacing, at Seller’s exclusive                  option, the material and workmanship of the Railcar that is not in conformity                  with Seller’s warranties in this Agreement.  [*****].  Seller and Buyer shall                  jointly determine the place where any defective Railcar will be replaced or                  repaired.   Upon  Seller’s  reasonable  request,  Buyer  will  ship [*****] any                  defective  Railcar  to  such  location.   Buyer  will  not  repair  (except  running                  repairs), replace or discard any defective Railcar until Seller has first been                  given  a  reasonable  opportunity  to  inspect  the  alleged  defect,  which                  inspection shall occur no later than [*****] after Buyer notified Seller of the                  defective Railcar; provided, that each Party shall be responsible for their own                                         14    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                    costs  incurred  in  connection  with  such  inspection.   Any  warranty  claims                  related to or arising from a Railcar must be made by Buyer in writing.  Buyer                  will  use  its  commercially  reasonable  efforts  to  promptly  provide  written                  notice to Seller of its determination that there has been a breach of warranty,                  but in no event can a breach of warranty claim be made more than [*****]                  from the date of Delivery of such Railcar.                        13.1.2. With respect to interior and exterior primers, paints, coatings, linings, and/or                  sealants  (the  “Coatings”),  Seller  warrants  that  it  will  apply  the  Coatings                  selected  by  Buyer  in  accordance  with  the  Coating  manufacturer’s                  specifications and recommendations, and, except as set forth in this Section                  13.1.2, Seller makes no other warranty, express or implied, with respect to                  the Coatings or the adequacy of such Coating manufacturer’s specifications                  and  recommendations.   Seller  may  offer  various  choices  of  Coatings  at                  various  prices  and  of  various  qualities.   The  Coatings  actually  applied  by                  Seller shall be chosen by Buyer at Buyer’s sole discretion, subject to Seller’s                  agreement  to  apply  such  Coatings,  based  on,  but  not  limited  to,  Seller’s                  ability  to  obtain  and  apply  such  Coatings.   Buyer’s  choice  of  Coatings  is                  made  at  Buyer’s  sole  risk  and,  except  as  set  forth  below  in  this  Section                  13.1.2,  Seller  makes  no  warranty,  express  or  implied,  regarding  the                  suitability or effectiveness of any Coatings.  With respect to the Coatings, for                  a  period  of [*****] after  Delivery  of  the  applicable  Railcars,  Seller’s  sole                  obligation under this Section 13.1.2 is limited to repair or replacement, at the                  election  of  Seller,  of the  Coatings  defectively  installed  by  Seller  in  any                  Railcar.  [*****]  Seller and Buyer shall jointly determine the place where                  any  defectively  installed  Coatings  will  be  replaced  or  repaired.   Upon                  Seller’s  reasonable  request,  Buyer  shall  provide  such  Railcar  for  an                  examination by Seller promptly following written notification by Buyer of a                  potential defective installation of Coatings; provided, that each Party shall be                  responsible  for  their  own  costs  incurred  in  connection  with  such                  examination.   If  the  Parties  determine  that  a  defectively  installed  Coating                  cannot be practically repaired, Seller shall replace the Coating.                              13.1.3. In the event that Buyer sells, leases or otherwise transfers the Railcars, any                  such transaction shall not otherwise modify or terminate Seller’s warranties                  in this Agreement, and Buyer shall be permitted to assign such warranties to                  the  purchaser,  lessee  or  transferee  of  the  Railcars.  In  the  event  of  such                  assignment,  Buyer’s  assignee  shall  be  limited  to  the  same  warranties  as                  Buyer as set forth in this Agreement and such assignee shall adhere to the                  limitations and obligations required to be undertaken by Buyer as a condition                  of such warranties. Such assignee may take no greater or additional rights or                  remedies  in  addition  to  those  set  forth  in  this  Agreement with  respect  to                  Seller’s  warranties  and  shall  be  notified  by  Buyer  of  its  rights  as  set  forth                                         15    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                    herein  with  respect  to  Seller’s  warranties.  In  connection  with  any  such                  assignment, Buyer shall be permitted to share the terms of such warranties                  with the proposed assignee and the restrictions set forth in Section 20.4 shall                  not apply to such disclosure. [*****].              13.1.4. [*****].             13.1.5. SELLER MAKES NO EXPRESS OR IMPLIED WARRANTY THAT ANY                  PARTS  OR  COMPONENTS  PURCHASED  FROM  THIRD  PARTY                  SUPPLIERS  OR  MANUFACTURERS  (HEREINAFTER,  EACH  A                  “SUPPLIER OR MANUFACTURER”) AND INSTALLED IN OR ON THE                  RAILCARS  ARE  FREE  FROM  DEFECTS.   ANY  PARTS  OR                  COMPONENTS        PURCHASED       FROM      SUPPLIERS      OR                  MANUFACTURERS  AND  INSTALLED  IN  OR  ON  THE  RAILCARS                  WILL  BE  COVERED  UNDER  THE  WARRANTY  GIVEN  BY  THE                  SPECIFIC  SUPPLIER  OR  MANUFACTURER  AND  THE  TERMS  SET                  FORTH    THEREIN.      SELLER    AGREES    TO   REASONABLY                  COOPERATE WITH BUYER TO ENFORCE ANY SUCH SUPPLIER OR                  MANUFACTURER  WARRANTIES.   TO  THE  EXTENT  EXPRESSLY                  PERMITTED  BY  ANY  SUCH  SUPPLIER  OR  MANUFACTURER,                  SELLER  AGREES  TO  TRANSFER  AND  ASSIGN  TO  BUYER,                  WITHOUT  WARRANTY  OR  ASSUMPTION  BY  SELLER  WITH                  RESPECT  THEREOF,  SUCH  SUPPLIER’S  OR  MANUFACTURER’S                  WARRANTIES  COVERING  PARTS  OR  COMPONENTS  FURNISHED                  BY  SUCH  SUPPLIER  OR  MANUFACTURER.   UPON  BUYER’S                   REQUEST,  SELLER  SHALL  PROVIDE  A  LIST  OF  THE  TERM  AND                  GENERAL  DESCRIPTION  OF  THE  WARRANTIES  THAT  IT  HAS                  FROM ITS PRIMARY SUPPLIERS OR MANUFACTURERS OF PARTS                  OR  COMPONENTS, AND SHALL  OTHERWISE SUPPLEMENT SUCH                  INFORMATION  FROM  TIME  TO  TIME  AS  BUYER  MAY                  REASONABLY REQUEST.                    13.1.6. THE  WARRANTIES  STATED      IN  THIS  AGREEMENT  ARE                  EXCLUSIVE AND ARE MADE BY SELLER TO BUYER EXPRESSLY                  IN  LIEU  OF  ANY  AND  ALL  OTHER  WARRANTIES,  EXPRESS  OR                  IMPLIED,  WRITTEN  OR  ORAL,  AT  LAW,  IN  EQUITY  OR  UNDER                  CONTRACT,  INCLUDING  WITHOUT  LIMITATION,  ANY  IMPLIED                  WARRANTY  OF  MERCHANTABILITY  OR  FITNESS  FOR  A                  PARTICULAR PURPOSE.             13.1.7. NOTWITHSTANDING  ANY  COURSE  OF  DEALING  BETWEEN  THE                  PARTIES  OR  CUSTOM  AND  USAGE  IN  THE  TRADE  TO  THE                  CONTRARY,  OTHER  THAN  AS  EXPRESSLY  SET  FORTH  IN  THIS                                         16    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                    AGREEMENT,  SELLER  SHALL  HAVE  NO  LIABILITY  TO  BUYER                  AND BUYER SHALL NOT MAKE ANY CLAIM AGAINST SELLER OR                  RECOVER ANY AMOUNT WHATSOEVER FROM SELLER FOR ANY                  INDIRECT,    SPECIAL,   CONSEQUENTIAL,       LOST    PROFITS,                  INCIDENTAL, COVER, OR PUNITIVE DAMAGES THAT ARISE OUT                  OF OR RESULT FROM ANY BREACH BY SELLER OF ANY AND ALL                  WARRANTIES,  EXPRESS  OR  IMPLIED,  WRITTEN  OR  ORAL,  AT                  LAW,  IN  EQUITY  OR  UNDER  CONTRACT,  INCLUDING  WITHOUT                  LIMITATION,  ANY  IMPLIED  WARRANTY  OF  MERCHANTABILITY                  OR FITNESS FOR A PARTICULAR PURPOSE [*****].                    13.1.8. For  purposes  of  this  Agreement,  “Regulations”  shall  mean  all  industry                  standards for new railcar equipment, including without limitation, all rules,                  statutes,  regulations,  directives  and  requirements  of  the  United  States  of                  America  and  Canada  (including,  without  limitation,  those  of  the  United                  States  Department  of  Transportation  (“DOT”),  the  Federal  Railroad                  Administration (“FRA”), and Transport Canada) and the specifications and                  standards of the Association of American Railroads (“AAR”) applicable to                  new  railroad  equipment,  in  each  case  as  may  be  in  effect  on  the  date of                  construction of the applicable Railcars.             13.1.9. With  respect  to  any  material  and  workmanship  of  a  Railcar  that  is  not  in                 conformity  with Seller’s warranty  under  Sections  13.1.1  or  13.1.2,  Seller                 shall  (i)  develop  and  implement  a  corrective  action  plan  reasonably                 acceptable to Buyer, and (ii) deliver to Buyer’s engineering or quality group                 and be reasonably available to discuss the specifics of such corrective action                 plan, in  each case within [*****] of Seller’s  receipt of written notice of a                 warranty claim from Buyer.         13.2. Intellectual Property Infringement.             13.2.1. Subject  to  Section  13.2.2, Seller  shall  indemnify,  defend  and  hold  Buyer                  harmless from all losses, damages, liabilities, deficiencies, claims, actions,                  judgments, settlements, interest, awards, penalties, fines, costs, or expenses,                  including  reasonable  attorneys’  fees  (collectively,  “Losses”)  arising  from                  any claim that the Railcars, or any product, accessory, part, Component, or                  attachment thereof, furnished by Seller under this Agreement, constitute an                  infringement of any intellectual property right of a third party, including, but                  not  limited  to,  any  patent  rights.   Buyer  shall  promptly  notify  Seller  in                  writing  of  any  such  claim  for  and  provide  information  and  assistance                  reasonably requested by Seller (at the Seller’s expense) for the defense of                  the same.                                           17    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.              13.2.2. In case the Railcars, or any or any product, accessory, part, Component, or                  attachment thereof covered under Section 13.2.1, constitute infringement of                  any intellectual property right of a third party, and the use of the Railcars, or                  any part thereof covered under Section 13.2.1, is enjoined, Seller shall use                  its  best  efforts  to  promptly,  at  its  own  expense,  and  at  its  option,  either                  procure for Buyer the right to continue using said Railcar, replace same with                  non-infringing  equipment,  or  modify  said  Railcar  so  that  it  becomes  non-                 infringing or refund the Invoice Price of said Railcar.             13.2.3. Seller’s obligations under Section 13.2.1 and Section 13.2.2 shall not cover                  or apply to any product, accessory, part, Component, or attachment that is                  not manufactured by Seller (including any Buyer-Supplied Component) or                  that  are  manufactured  by  Seller  to  specifications  or  designs  provided  by                  Buyer that differ from Seller Specifications or designs.             13.2.4. Buyer  shall indemnify,  defend and  hold Seller  harmless  from  all  Losses                  arising  from  any  claim  that  Railcars,  or  any  product,  accessory,  part,                  Component  or  attachment  (including  Buyer-Supplied  Components),                  manufactured or supplied by Seller to specifications or designs provided by                  Buyer that  differ  from  Seller  Specifications  or  designs,  constitute  an                  infringement of any intellectual property right of a third party, including, but                  not  limited  to,  any  patent  rights.  Seller  shall  promptly  notify  Buyer  in                  writing of any such claim and provide information and assistance reasonably                  requested  by  Buyer  (at  the  Buyer’s  expense)  for  the  defense  of  the  same.                  Buyer shall use its  best efforts to  promptly, at  its  own expense, and at its                  option, either procure for itself the right  to continue using said Railcar or                  part  thereof,  replace  same  with  non-infringing  equipment  or  modify  said                  Railcar or part thereof so that it becomes non-infringing.              13.2.5. This Section 13.2 states the sole and entire liability of Seller and/or Buyer,                  as applicable, to the other Party for infringement of any intellectual property                  right  of  a  third  party,  including,  but  not  limited  to,  any  patent  rights in                  relation  to  the  Railcars,  or  any  product,  accessory,  part,  Component  or                  attachment (including Buyer-Supplied Components) thereof.                                          18    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.    14.   LIMITATION  OF  LIABILITY.       NEITHER  PARTY  OR  SUCH  PARTY’S        ASSIGNEE SHALL HAVE    LIABILITY  TO THE OTHER  PARTY WITH RESPECT        TO  ANY  CLAIMS  UNDER   THIS  AGREEMENT,  WHETHER  FOR  BREACH  OF        WARRANTY,  IN  CONTRACT,  IN  TORT,  FOR  STRICT  LIABILITY,  FOR        PRODUCT  LIABILITY,  OR  FOR  OTHER  CAUSES  OF  ACTION,  FOR  INDIRECT,        INCIDENTAL,  CONSEQUENTIAL,  LOST  PROFITS,      SPECIAL,  COVER,  OR        PUNITIVE DAMAGES; [*****].   15.   REPRESENTATIONS AND OTHER WARRANTIES OF SELLER.  Seller hereby        represents and warrants to and in favor of Buyer that:           15.1. at the time Seller Delivers each Railcar hereunder, Seller shall hold and convey to              Buyer good and marketable title to such Railcar free and clear of all indentures,              deeds  of  trust,  mortgages,  security  interests,  liens,  claims,  demands,              encumbrances,  privileges,  pledges,  residual  interests,  re-marketing  rights,              purchase  options  and  other  charges  of  every  nature  and  kind  whatsoever,              excepting any such encumbrances resulting from the acts or omissions of Buyer              (or  those  acting  under  the  authority  of  Buyer)  (collectively,  “Encumbrances”).               For the avoidance of doubt, nothing in this Section 15.1 shall prevent Seller from              making  or  incurring  liens,  security  interests,  encumbrances  or  pledges  in  the              ordinary  course  of  its  business  in  order  to  obtain  financing  and  other  working              capital; provided, that Seller conveys good and  marketable title to each  Railcar              free  and  clear  of  Encumbrances  in  accordance  with  this  Section  15.1  and  that              nothing herein relieves Seller of its obligation to so deliver title hereunder;                15.2. Seller is duly formed, validly existing and in good standing in the State of North              Dakota  and  has  all  requisite  corporate  power  and  authority  to  own,  operate  or              lease the properties and assets now owned, operated or leased by it and to carry on              its  business  as  currently  conducted.   Seller is  duly  qualified  or  licensed  to  do              business as a foreign entity and is in good standing in each jurisdiction where the              character of its properties and assets owned, operated or leased or the nature of its              activities makes such qualification or license necessary, except where the failure              to  be  so  qualified  or  licensed  or  in  good  standing  does  not  materially  and              adversely  affect  Seller’s  ability  to  perform  hereunder.   Seller  has  all  permits,              licenses  and  government  approvals  necessary  to  manufacture  and  sell  the              Railcars;                15.3. this  Agreement  and  all  certificates,  documents,  instruments  and  agreements              delivered  under  or  in  connection  with  this  Agreement  (i)  have  been  properly              authorized by all necessary corporate action and (ii) do not require the approval of              any holder of shares, stocks, bonds, debentures or other securities issued by Seller              or outstanding under any agreement, indenture or other instrument to which Seller              is a party or by which Seller or its property may be charged or affected;                                         19    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                  15.4. Seller’s  execution,  delivery  and  performance  of  this  Agreement  and  all              certificates, documents, instruments and agreements delivered by Seller under or              in  connection  with  this  Agreement,  and  Seller’s  compliance  with  the  terms,              conditions and provisions hereof and thereof do not, and will not, (i) constitute a              breach of any existing contractual obligation of Seller, (ii) violate any provision              of the certificate of incorporation or bylaws of Seller, (iii) require the approval or              the giving of prior notice to any third party or government agency, (iv) breach or              result  in  the  breach  of,  constitute  a  default  under  any  of  the  provisions  of,  or              result in the creation of any lien, charge, encumbrance or security interest upon              any  property  or  assets  of  Seller,  (v)  violate  any  judgment,  order,  injunction,              decree  or  award  of  any  court,  administrative  agency  or  governmental  body              against,  or  binding  upon,  Seller,  or  (vi)  constitute  a  violation  by  Seller  of  any              law, order or regulation applicable to Seller, in each case so as to materially and              adversely  affect  Seller’s  ability  to  perform  or  Buyer’s  enjoyment  of  its  rights              hereunder.   Seller will comply in all material respects with all laws, orders and              regulations applicable to Seller in manufacturing Railcars under this Agreement.                 15.5. this Agreement  and  all  certificates,  documents,  instruments  and  agreements              delivered under or in connection with this Agreement, or in connection with the              consummation of the transactions contemplated hereunder, constitute legal, valid              and  binding  obligations  of  Seller,  enforceable  in  accordance  with  their  terms              except  as  enforceability  may  be  limited  by  bankruptcy,  insolvency,              reorganization, moratorium or other similar laws affecting the rights of creditors              generally and by general principles of equity; and                15.6. there are no legal or governmental investigations, actions or proceedings pending              or,  to  the  knowledge  of  Seller,  threatened  in  writing  against  Seller  before  any              court,  administrative  agency  or  tribunal  which,  if  determined  adversely,  would,              individually  or in  the  aggregate,  materially  adversely  affect  the  transactions              contemplated by this Agreement or the ability of Seller to perform its obligations              hereunder.                      15.7. Seller will maintain, at its expense, insurance coverages of the types, and in the              amounts, that are reasonably prudent for the operation of its business, the sale of              the Railcars and performance under this Agreement, including, but not limited to,              comprehensive  commercial  general  liability  (including  products  liability),              employer’s  liability  and  worker’s compensation.  All  insurance requirements  of              Seller  under  this  Agreement  may  be  satisfied  in  part  through  self-insurance  or              self-retention by Seller, to the extent permissible under the applicable law.                                                        20    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.    16.   REPRESENTATIONS AND WARRANTIES OF BUYER.  Buyer hereby represents        and warrants to and in favor of Seller that:                  16.1. Buyer is duly incorporated, validly existing and in good standing in the State of              New York and has all requisite corporate power and authority to own, operate or              lease the properties and assets now owned, operated or leased by it and to carry on              its  business  as  currently  conducted.   Buyer  is  duly  qualified  or  licensed  to  do              business  as  a  foreign  corporation  and  is  in  good  standing  in  each  jurisdiction              where the character of its properties and assets owned, operated or leased or the              nature of its activities makes such qualification or license necessary, except where              the failure to be so qualified or licensed or in good standing does not materially              and adversely affect Buyer’s ability to perform hereunder;                16.2. this  Agreement  and  all  certificates,  documents,  instruments  and  agreements              delivered  under  or  in  connection  with  this  Agreement  (i)  have  been  properly              authorized by all necessary corporate action and (ii) do not require the approval of              any holder of shares, stocks, bonds, debentures or other securities issued by Buyer              or outstanding under any agreement, indenture or other instrument to which Buyer              is a party or by which Buyer or its property may be charged or affected;                16.3. Buyer’s  execution,  delivery  and  performance  of  this  Agreement  and  all              certificates, documents, instruments and agreements delivered by Buyer under or              in  connection  with  this  Agreement,  and  Buyer’s  compliance  with  the  terms,              conditions and provisions hereof and thereof do not, and will not, (i) constitute a              breach of any existing contractual obligation of Buyer, (ii) violate any provision              of the charter or by-laws of Buyer, (iii) require the approval or the giving of prior              notice to any third party or government agency, (iv) breach or result in the breach              of, constitute a default under any of the provisions of, or result in the creation of              any lien, charge, encumbrance or security interest upon any property or assets of              Buyer, (v) violate any judgment, order, injunction, decree or award of any court,              administrative agency or governmental body against, or binding upon, Buyer, or              (vi) constitute a violation by Buyer of any law, order or regulation applicable to              Buyer,  in  each  case  so  as  to  materially  and  adversely  affect  Buyer’s  ability  to              perform or Seller’s enjoyment of its rights hereunder;                16.4. this  Agreement  and  all  certificates,  documents,  instruments  and  agreements              delivered under or in connection with this Agreement, or in connection with the              consummation of the transactions contemplated hereunder, constitute legal, valid              and  binding  obligations  of  Buyer,  enforceable  in  accordance  with  their  terms              except  as  enforceability  may  be  limited  by  bankruptcy,  insolvency,              reorganization, moratorium or other similar laws affecting the rights of creditors              generally and by general principles of equity; and                                                   21    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.          16.5. there are no legal or governmental investigations, actions, or proceedings pending              or,  to  the  knowledge  of  Buyer,  threatened  in  writing  against  Buyer  before  any              court,  administrative agency  or  tribunal  which,  if  determined  adversely,  would,              individually  or  in  the  aggregate,  materially  adversely  affect  the  transactions              contemplated by this Agreement or the ability of Buyer to perform its obligations              hereunder.    17.   DEFAULT.  Subject to Section 10.4 addressing Force Majeure Events, the occurrence of        any one or more of the following events shall constitute an event of default (“Event of        Default”) hereunder by a Party:                  17.1. the failure of such Party to perform a material obligation hereunder; provided, that              such failure to perform is not cured by such Party within [*****] after receipt of              written notice from the other Party specifying such failure to perform;                  17.2. the failure by such Party to pay any amount due and payable pursuant to the terms              of this Agreement, other than amounts disputed by such Party; provided, that such              failure to pay is not cured by such Party within [*****] after receipt of written              notice from the other Party specifying such failure to pay;                17.3. the (i) filing by such Party of a voluntary petition in bankruptcy, (ii) adjudication              of such Party as a bankrupt or insolvent, (iii) filing by such Party of any petition              seeking any reorganization, arrangement, composition, readjustment, liquidation,              dissolution,  or  similar  relief  for  itself  under  the  federal  bankruptcy  laws,  (iv)              consent or acquiescence of such Party to the appointment of a trustee, receiver,              conservator, or liquidator of such Party for all, or any substantial portion of such              Party’s property or assets, or (v) filing of any involuntary petition in bankruptcy              against  either  Party  (provided  that  any  such  filing  is  not  withdrawn,  vacated,              removed, discharged, or stayed within [*****] thereafter);                17.4. the notification in writing to a governmental agency by such Party of its pending              insolvency, or suspension or pending suspension of its operations;                 17.5. the making by such Party of any general assignment for the benefit of its creditors              or the taking of similar actions for the protection or benefit of its creditors;                17.6. in the case of Seller, in the event that [*****] the number of Railcars that have              been rejected by Buyer pursuant to Section 11.2 equals [*****];                 17.7. in the case of Seller, in the event that [*****] the number of Railcars that have              not been Delivered within [*****] of their respective Committed Delivery Dates              (excluding  delayed  deliveries  resulting  from  Force  Majeure  Events  and  those              resulting from quality rejection pursuant to Section 11.2) [*****]; or                                         22    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.          17.8. in the case of Seller, a breach of Seller’s obligations set forth in Section 6.3 of this              Agreement; provided, that such breach is not cured by Seller within [*****] after              receipt of written notice from Buyer specifying that such breach has occurred.           The  Parties  agree  that  either  Party’s  initiation  of  the  dispute  resolution  provisions        described in Section 20.13 will not be a prerequisite for a Party to  give a notice of an        Event of Default or act to delay any of the time periods for cure specified above.          18.   TERMINATION.  In  addition  to  any  other  rights  and  remedies  available  under  this        Agreement  or  at  law,  in  equity  or  otherwise,  and  in addition  to  the  termination  rights        relating to a Force Majeure Event as set forth in Section 10.4, upon the occurrence of an        Event of Default, the non-defaulting Party may terminate this Agreement on a date that is        [*****] after  the  date  appearing  in  a  written  notice  to  the  other  Party  regarding  such        termination.  In the event of termination of this Agreement under this Section 18, such        termination shall not affect any Party’s rights or obligations that accrued prior to the date        of such termination, and any Order of Railcars placed prior thereto shall be Delivered by        Seller,  and  Buyer  shall  accept  Delivery  of  such  Railcars  that  comply  with  the        Specifications  as  provided  under  Section  11.1,  in  accordance  with  the  terms  of  this        Agreement regardless of the effective date of the termination; provided, that Buyer shall        not  be  required  to  place  any  new  Orders  after  the  date  of  the  written  notice  of  such        termination (regardless of whether Buyer has placed Orders for Railcars equal to the Base        Order  Quantity  or  the  Additional  Railcar  Monthly  Quantity,  as  applicable,  or  the        applicable  Monthly  Order  Quantity  for  the  month  in  which  such  termination  occurs).         Notwithstanding  the  foregoing,  in  the  event  of  a  written  notice  of  termination  of  this        Agreement by either Party as a result of the occurrence of an Event of Default described        in  Sections 17.3, 17.4,  or 17.5, the  non-defaulting Party  shall  not  have  any  further        obligation to Deliver Railcars (in the case of Seller) or to accept any Railcars (in the case        of  Buyer),  in  either  case  arising  under  Orders  pending  as  of  the  date  of  the  Event  of        Default.     19.   SUPPLY OF SPARE PARTS.  For a period [*****], or, if Seller (or Seller’s successor)        discontinues  the  manufacturing  of  railcars  for  third  parties  or  discontinues  the        manufacturing of aftermarket railcar parts and Components before the expiration of such        [*****] period (“Discontinued Operations”), up to the date of Discontinued Operations,        Seller (or such successor) shall make spare parts, Components, fixtures and assemblies        for the Railcars that are proprietary to Seller or Seller’s successors (“Spare Parts”) and        shall be made available to Buyer for purchase at Seller’s then-market price.  In the event        the  date  of  Discontinued  Operations  is  before  the  expiration  of  such [*****] period,        Seller (or Seller’s successor) shall  give  Buyer  as  much advance written notice of such        Discontinued Operations as reasonably possible, but in no event less than [*****] notice        prior to announcing its decision regarding Discontinued Operations.  In addition, if Seller        learns in writing that any of its Suppliers or Manufacturers will cease to make any Spare                                         23    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.          Parts,  Seller  shall  give  Buyer  written  notice  of  such  Supplier’s  or  Manufacturer’s        decision promptly upon learning of same.    20.   MISCELLANEOUS.            20.1. Further  Assurances.  Following  acceptance  of  and  payment  for  any  Railcar              hereunder, Seller  shall  make,  do,  and  execute  or  cause  to  be  made,  done,  and              executed all such further acts, deeds and assurances as Buyer or Buyer’s counsel              may,  at  any  time  or  from  time  to  time,  reasonably  require  to  confirm  Buyer’s              right, title, and interest in and to such Railcar in accordance with the intent and              meaning of this Agreement.                20.2. Records Provided to Buyer; UMLER Reporting.                         20.2.1. Within [*****] after  the  transfer  by  Bill  of  Sale  of  any  Railcar  to  Buyer,                 Seller  will  furnish  Buyer  with  copies,  in  electronic  form,  of  documents                 described  on Exhibit  G attached  hereto  (collectively,  “Records”).   Prior  to                 Delivery of any Railcar in the Tank Railcar Category hereunder, Seller will                 file  an  application  with  the  AAR  for  a  certificate  of  construction  (a                 “Certificate of Construction”) for each Railcar and shall provide Buyer with                 such Certificate of Construction in electronic form, in each case as required                 by 49 CFR 179.5.            20.2.2. Notwithstanding anything to the contrary set forth in this Agreement, Buyer                 may  (i)  use  Records  in  order  to  safely  use,  operate,  repair,  maintain,  or                 modify  any  Railcar,  to  fabricate  replacement parts  and  to  perform                 engineering  modelling  for  repair,  maintenance  or  modification  to  any                 Railcar,  and  (ii)  disclose  Records  for  any  Railcar  to  (x)  any  subsidiary  or                 Affiliate of Buyer, (y) any prospective or actual third party purchaser of the                 Railcar from Buyer, or (z) any third party for the purpose of permitting such                 third party to safely use, operate, repair, maintain, or modify any Railcar, to                 fabricate replacement parts or to perform engineering modelling for repair,                 maintenance or modification to any Railcar.            20.2.3. Prior  to  the  Delivery  of  each  Railcar,  Seller  shall  report  the  following                 information in UMLER:                      20.2.3.1.   Air brake test date;                     20.2.3.2.   Reflectorization application date;                     20.2.3.3.   Comprehensive  equipment  performance  monitoring                                (CEPM)  component  identification  (CID)  numbers as                                required  by  applicable  Regulations  (as  of  the  date  of  this                                         24    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                  Agreement, CID numbers must be reported for each wheel                                set, couplers, bolsters and side frames).         20.3. Communication and Correspondence.  Seller shall furnish to Buyer, promptly              upon Seller’s receipt thereof, copies of any notice or correspondence received by              Seller  from  any  third  party  (other  than  a  Seller  Affiliate),  including  any              governmental  agency,  with  respect  to  any  Railcar  manufactured  by  Seller  for              Buyer pursuant to the terms hereof.  Seller shall also furnish to Buyer, promptly              upon Seller’s receipt thereof, copies of any notice or correspondence received by              Seller  from  any  manufacturer  or  supplier  of  any  part,  material,  equipment,  or              Component  installed  in  or  on  any  Railcar  manufactured  by  Seller  for  Buyer              pursuant to this Agreement.                20.4. Confidentiality.              20.4.1. For  purposes  of  this  Section  20.4,  (x)  “Seller’s  Confidential  Information”                 shall  mean [*****];  (y)  “Buyer  Confidential  Information”  shall  mean                 [*****];  and  (z)  “Confidential  Information”  shall mean  (1)  Seller’s                 Confidential  Information  when  the  Disclosing  Party  (as  defined  below)  is                 Seller,  (2)  Buyer’s  Confidential  Information  when  the  Disclosing  Party  is                 Buyer, and (3) the terms of this Agreement that were redacted in the publicly                 available  copy  of  this  Agreement  filed  with  the  Securities  and  Exchange                 Commission (the “SEC”) (such terms, the “Redacted Terms”); and in each                 case for purposes of (x), (y) or (z), whether in electronic or hard form and                 whether  or  not  reduced  to  writing  and  whether  or  not  it  is  specifically                 designated or identified as Confidential Information.             20.4.2. In  the  course  of  performance  hereunder,  each  of  Buyer  and  Seller  (with                 respect to Confidential Information disclosed by such Party, the “Disclosing                 Party”) will disclose to the other Party (the “Receiving Party”), whether in                 written, electronic, or oral form, Confidential Information that the Disclosing                 Party regards as proprietary and confidential.  The Receiving Party agrees to                 hold  the  Confidential  Information  disclosed  to  it  by  or  on  behalf  of  the                 Disclosing Party in confidence, to take commercially reasonable precautions                 to  protect  such Confidential  Information  from  disclosure  and  to  use  the                 Confidential  Information  only  in  connection  with  the  performance  of  its                 obligations under this Agreement, in each case for a period ending [*****]                 after the end of the Term.  Subject to Section 20.4.4 hereof, the Receiving                 Party  shall  take  the  same  precautions  with  regard  to  disclosure  of                 Confidential Information to its employees, contractors and consultants except                 for  those  employees,  contractors  and  consultants  who  need  to  know  such                 Confidential  Information  in  order  for  the  Receiving  Party  to  carry  out  its                                          25    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                   obligations  hereunder  and  who  have  been  informed  of  the  terms  of  this                 Section 20.4.  [*****].             20.4.3. [*****] Notwithstanding the  foregoing,  the  Receiving  Party  may  disclose                 Confidential  Information  to  any  of  its  legal,  financial  or  tax  planning                 representatives  (“Representatives”)  who  need  to  know  such  Confidential                 Information in order for the Receiving Party to  carry out its obligations  or                 enforce its rights hereunder and who have been informed of such obligations.                  Each  Party  shall  be  responsible for  any  action  or  failure  to  act  that  would                 constitute  a  breach  or  other  violation  of  this  Section 20.4 by  its                 Representatives.              20.4.4. Confidential Information does not include information that: (i) the Receiving                 Party can demonstrate was in its possession prior to being disclosed by the                 Disclosing  Party  hereunder;  (ii)  is  now,  or  hereafter  becomes  generally                 known to the public; (iii) is obtained from a third party, which to Receiving                 Party’s knowledge, that is not bound under an obligation of confidentiality to                 the  Disclosing  Party;  or  (iv)  is  independently  developed  by  the  Receiving                 Party  without  reference  to  or  use  of  any  Confidential  Information.   The                 foregoing restrictions on disclosure of Confidential Information do not apply                 to  any  disclosure  of  Confidential  Information  with  respect  to  which  the                 Receiving Party is advised by legal counsel that such disclosure is necessary                 or compelled (a) under the federal securities laws or other applicable law, or                 by the rules and regulations of the SEC or of any stock exchange on which                 the  Receiving  Party’s  stock  is  listed,  or  (b)  pursuant  to  the  terms  of  any                 deposition, interrogatory, formal litigation discovery request, subpoena, civil                 investigative demand, court order or similar process to which the Receiving                 Party or its  Representatives  are subject; provided, that the Receiving Party                 notifies the Disclosing Party as promptly as reasonably possible after service                 of  such  legal  process  and  to  the  extent  legally  permissible  so  that  the                 Disclosing  Party  may  seek  an  appropriate  protective  order,  confidential                 treatment,  or  other  remedy.   In  the  event  the  Receiving  Party  or  its                 Representatives  are  required  or  compelled  to  disclose  Confidential                 Information pursuant to the immediately preceding sentence, the Receiving                 Party  or  its  Representatives  may  disclose  only  that  portion  of  such                 Confidential  Information  with  respect  to  which  the  Receiving  Party  or  its                 Representatives have been advised by its counsel is required or compelled to                 be  disclosed.   Seller  will  be  free  to  use  for  any  purpose  any  generally                 applicable knowledge, experience, ideas, concepts, know-how or techniques                 developed or learned by Seller in the course of manufacturing or supplying                 Railcars hereunder and any specifications that are the same or substantially                 similar to the Seller Specifications for Railcars supplied hereunder.                                          26    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.             20.4.5. Upon  the  request  of  the  Disclosing  Party  following  the  expiration  or                 termination  of  this  Agreement,  the  Receiving  Party  will  destroy  all  of  the                 Disclosing Party’s Confidential Information, except that the Receiving Party                 may  retain  Confidential  Information  of  the  Disclosing  Party  that  is  (i)                 necessary in connection with the enforcement of the Receiving Party’s rights                 under this Agreement, (ii) required to be maintained by the Receiving Party’s                 audit requirements or internal document retention policies or (iii) contained                 in  an  archived  computer  system  backup  in  accordance  with  the  Receiving                 Party’s  security  or  disaster  recovery  procedures; provided,  that  any  such                 retained  or  archived  Confidential  Information  shall  remain  subject  to  the                 provisions of this Section 20.4.5 for so long as it is maintained or archived.            20.4.6. In the event of a breach of this Section 20.4 by Receiving Party, Disclosing                 Party  shall  be  entitled  to  seek  all  available  legal  and  equitable  remedies.                  Disclosing  Party  acknowledges  that  monetary  damages  may  not  be  a                 sufficient remedy for any actual or threatened breach of this Section 20.4 and                 that, in  addition to  all other remedies,  Disclosing Party shall be entitled to                 seek specific performance, injunctive and other equitable relief.         20.5. Public  Disclosure.  Either  Party  shall  be  permitted  to  file  a  copy  of  this              Agreement  with  the  SEC  upon  making  a  reasonable  determination,  with  the              advice of legal counsel, that such filing is required for such Party to comply with              applicable  SEC  rules  and  regulations,  and  in  connection  therewith,  such  Party              shall, at its own expense, request confidential treatment for certain portions of this              Agreement and the Exhibits attached hereto. The filing Party shall, reasonably in              advance  of  any  deadline  for  filing  a  publicly  available  copy  of  this  Agreement              with the SEC, but in any case not less than [*****] prior to such deadline, provide              its proposed confidential treatment request, including its proposal for the portions              of this Agreement and Exhibits to be redacted in such copy, and the Parties shall              reasonably  cooperate  to  mutually  select  the  portions  to  be  redacted  so  that  a              publicly  available  copy  of  this  Agreement,  with  such  redactions,  can  be  timely              filed with the SEC.  The filing Party shall use its reasonable best efforts to obtain              “confidential treatment” of such redacted portions of this Agreement and Exhibits              with the SEC.                        20.6. Broker’s Commission.  Each Party agrees to indemnify and hold the other Party              harmless from and against any losses for commissions arising out of the acts of              such  Party  and  for  expenses  (including  reasonable  attorneys’  fees)  and  costs              relating  to  such  Losses  or  otherwise  relating  to  such  Party’s  retention  of  any              broker, finder or other Person relating to a sale of the Railcars.                      20.7. No Restriction on Competition. Notwithstanding anything to the contrary in this              Agreement, nothing in this Agreement is intended to, or shall prevent the Parties                                         27    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                from, freely competing against each other with respect to the leasing of railcars or              any other activities related thereto.         20.8. Subcontractors.  Subject to Section 13.1.5, Seller shall be as fully responsible to              Buyer for the acts and omissions of each of its subcontractors, and of the persons              employed  by  any  of  its  subcontractors,  and  of  the  persons  for  whose  acts  and              omissions  any  of  its  subcontractors  may  be  liable,  as  it  is  for  the  acts  and              omissions  of its  own employees.   For the  avoidance of doubt, “subcontractors”              shall be deemed not to include Suppliers or Manufacturers of linings or coatings.         20.9. [*****].           20.10. Successors and Permitted Assigns.  Neither Party may assign, transfer, sell, or              convey this Agreement to a third party (whether voluntarily, by operation of law              or change of control, or otherwise) without the prior written consent of the other              Party, such consent not to be unreasonably withheld or delayed, [*****].         20.11. Severability.  Any term, condition or provision of this Agreement which is, or is              deemed to be, void, prohibited, or unenforceable in any jurisdiction shall be, as to              such  jurisdiction,  severable  here  from  and  ineffective  to  the  extent  of  such              avoidance, prohibition, and unenforceability without in any way invalidating the              remaining  terms,  conditions,  and  provisions  hereof.   Any  such  avoidance,              prohibition, and unenforceability in any jurisdiction shall not invalidate or render              unenforceable such term, condition, or provision in any other jurisdiction.                20.12. Governing Law.  THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN              MADE  IN  THE  STATE  OF  ILLINOIS  AND  SHALL  BE  CONSTRUED  IN              ACCORDANCE  WITH,  AND  THE  RIGHTS  AND  LIABILITIES  OF     THE              PARTIES HEREUNDER SHALL BE GOVERNED BY, THE LAWS OF SUCH              STATE WITHOUT GIVING EFFECT  TO THE PRINCIPLES OF CONFLICT              OF LAW THEREOF.                20.13. Dispute Resolution.  Each dispute, claim or controversy arising out of or in any              manner related to this Agreement or the breach thereof (a “Dispute”) between the              Parties  will  be  resolved  or  adjudicated  in  accordance  with  the  provisions              described in this Section 20.13.                     20.13.1. In the event of a Dispute, either Party may, but is not required to, provide                  written notice of such Dispute to the other Party (a “Dispute Notice”) and in                  such  event,  representatives  at  the  vice  president  level  of  each  Party  shall                  meet in person to attempt to resolve such Dispute (a “Dispute Negotiation”).                   Each Dispute Negotiation will take place at  a time and place agreed to  by                  such representatives, within [*****] after the date of the Dispute Notice.                                                  28    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.              20.13.2. In the event that a Dispute Notice is provided and the Parties are unable to                  reach a mutually satisfactory resolution of the Dispute, or in the event a Party                  elects not to provide a Dispute Notice, either Party may pursue resolution of                  the Dispute through litigation.  In such case, each of the Parties irrevocably                  and unconditionally submits to the exclusive jurisdiction of such courts and                  agrees to bring any such action, litigation or proceeding only in the federal or                  state courts located in Cook County, Illinois.  Each Parties expressly submits                  and  consents  to  the  jurisdiction  of  the  aforesaid  courts  and  waives  any                  defense of forum non-conveniens.                    20.13.3. EACH    PARTY     KNOWINGLY,       VOLUNTARILY,       AND                  INTENTIONALLY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY                  PROCEEDING  TO  RESOLVE  ANY  DISPUTE  OR  CLAIM  BETWEEN                  THE  PARTIES  ARISING  OUT  OF  OR  RELATING  TO  THIS                  AGREEMENT,  INCLUDING  ANY  QUESTION  REGARDING  ITS                  EXISTENCE,    VALIDITY,    INTERPRETATION,     BREACH,     OR                  TERMINATION,  AND  INCLUDING  ANY  NON-CONTRACTUAL                  CLAIM.  The  Parties  further  agree  that  in  the  event  of  any  claim  or                  proceeding arising out of or relating to this Agreement, this clause will serve                  as conclusive evidence of their intent to waive their right to trial by jury. In                  such claim or proceeding, each Party expressly waives any right to claim or                  recover from the other Party, punitive, exemplary, moral, multiple, or similar                  non-compensatory damages.                      20.14. Notices.  Unless otherwise expressly provided herein, all communications, notices              and  requests  under  this  Agreement  shall  be  in  writing  and  shall  be  deemed              received either (i) one (1) business day after being deposited, all charges prepaid,              with  Federal Express  or other  commercial  delivery service that  guarantees  next              business day delivery and provides a written confirmation of delivery, or (ii) on              the date of transmission, if sent by facsimile (receipt confirmed) or email.  The              addresses for notice, unless changed by notice, are as follows:                      If to Seller:     American Railcar Industries, Inc.                                      100 Clark Street                                      St. Charles, MO  63301                                      Attn:  Office of Chief Executive Officer                                      Fax:  (636) 940-6030                                      Email:  jobryan@americanrailcar.com                                                                                29    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                      If to Buyer:      from the Effective Date to October 7, 2018                                                          GATX Corporation                                      222 West Adams Street                                      Chicago, IL  60606                                      Attn:  VP Fleet Management                                      Fax:  (312) 621-6648                                      Email:  vp-fpm@gatx.com                                       from and after October 8, 2018                                       GATX Corporation                                      233 S. Wacker Drive                                      Chicago, IL  60606                                      Attn:  VP Fleet Management                                      Fax:  (312) 499-7536                                      Email:  vp-fpm@gatx.com               For any notice relating to matters under Sections 7, 8, 9.11, 10.4, 13, 14, 15, 16,              17, 18 or 20 of this Agreement, copies of such notice shall also be delivered to the              Parties’ respective legal counsel in the manner set forth above.  The addresses,              facsimile numbers and email addresses for notices, unless changed by notice, are              as follows:                                        If to Seller:     American Railcar Industries, Inc.                                      100 Clark Street                                      St. Charles, MO  63301                                      Attn:  General Counsel                                      Fax:  (636) 940-6030                                      Email: yfundler@americanrailcar.com                                                          If to Buyer:      from the Effective Date to October 7, 2018                                                          GATX Corporation                                      222 West Adams Street                                      Chicago, IL  60661                                      Attn:  Associate General Counsel                                      Fax:  (312) 621-6648                                      Email:  Brian.Glassberg@gatx.com                                          30    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                        from and after October 8, 2018                                       GATX Corporation                                      233 S. Wacker Drive                                      Chicago, IL  60606                                      Attn:  Associate General Counsel, Rail                                      Fax:  (312) 621-6648                                      Email:  Brian.Glassberg@gatx.com         20.15. Counterparts.  This Agreement and the other documents explicitly referenced              herein may be executed in any number of counterparts and via facsimile or other              form of electronic transmission, each of which will be deemed an original but all              of which together shall constitute one and the same instrument.                20.16. Entire  Agreement  and  Amendments.  This  Agreement,  together  with each              Exhibit  attached  hereto, and  the  other  documents  explicitly  referenced  herein              contain the entire agreement and understanding between the Parties with respect              to the subject matter hereof and, as of the execution hereof, supersedes all prior              agreements, understandings, and representations, whether oral or written, related              to  the  subject  matter  hereof,  including  that  certain [*****],  each  of  which  are              hereby  terminated  and  shall  be  of  no  further  force  and  effect  following the              execution and delivery hereof.  No amendment, modification, supplement, waiver,              or  release  of  any  of  the  terms  and  conditions  contained  herein  shall  be  made              except by mutual agreement to that effect in writing and signed by all Parties.                 20.17. Survival.  Regardless  of  the  expiration  or  termination  for  any  reason  of  this              Agreement, the rights and obligations set forth in this Agreement that require or              contemplate  performance  by  a  Party  after  such  expiration  or  termination  shall              remain in full force and effect to the extent required for their full observance and              performance, including, but not limited to, Sections 5.3, 5.5, 7, 8, 12, 13, 14, 15,              16, 17, 18, 19 and 20.                20.18. Expenses.  Except as otherwise expressly set forth in this Agreement, each Party              will bear all of its own costs and expenses incurred in negotiating and complying              with such Party’s obligations arising pursuant to this Agreement.                20.19. No Agency Relationship.  Nothing contained in this Agreement will create any              agency, fiduciary, joint venture, or partnership relationship between the Parties.                20.20. No  Third-Party  Beneficiaries.  This  Agreement  will  not  confer  any  rights  or              remedies upon any Person other than the Parties.                                                 31    

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.          20.21. Headings.  The  Section  headings  contained  in  this  Agreement  are  inserted  for              convenience only and will not affect in any way the meaning or interpretation of              this Agreement.                20.22. Construction.  The  Parties  have  participated  jointly  in  the  negotiation  and              drafting  of  this  Agreement.   In  the  event  an  ambiguity  or  question  of  intent  or              interpretation arises, this Agreement will be construed as if drafted jointly by the              Parties, and no presumption or burden of proof will arise favoring or disfavoring              any Party by virtue of the authorship of any of the provisions of this Agreement.               Unless the context requires otherwise, singular includes plural and vice versa and              any  gender  includes  every  gender,  and where  any  word  or  phrase  is  given  a              defined meaning, any other grammatical form of that word or phrase will have a              corresponding meaning.  The word “including” (and its variants, e.g. “includes”,              “include”)  will  mean  “including  without  limitation”  unless otherwise  stated.               Unless the context requires otherwise, the words “hereof,” “herein,” “hereunder,”              “hereby,” or words of similar import refer to this Agreement as a whole and not to              any  particular  Section,  subparagraph,  clause  or  other  subdivision  hereof.   The              word  “or”  will  be  disjunctive  but  not  exclusive.   Each  reference  to  a  Section              herein  is  to  a  Section  of  this  Agreement.   Each  Exhibit  attached  hereto  is              incorporated herein and made a part hereof as if fully set forth herein.                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]                                            32    

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.          IN WITNESS WHEREOF,     Seller and Buyer have executed this Agreement as of the  Effective Date.                                              GATX CORPORATION                                                                                                                                                        By:                                                                       Name:  Thomas A. Ellman                                      Title:  Executive Vice President, Rail North America                                                                                                                  AMERICAN RAILCAR INDUSTRIES, INC.                                                                                                                                                        By:                                                                       Name:  John O’Bryan                                      Title:  President and Chief Executive Officer                                  [Signature page to Supply Agreement]  

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                                 Exhibit A                                           Railcar Types                                                                                                [*****]                                        

 

         CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT          HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE          APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS          HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE          SECURITIES AND EXCHANGE COMMISSION.                                                                Exhibit A-1                               Monthly and Annual Volume Parameters                     Annual Volumes by Year                               [*****]          2019    2020    2021   2022    2023    Total    [*****] [*****] [*****] [*****] [*****]  Ini tial-Term and Base-Term Volume                                                                                                                           450     1,800  1,800  1,800  1,800  7,650     [*****]  [*****] [*****] [*****]  [*****]   Additional Railcar Option Volume                                                                                              [*****] [*****] [*****] [*****] [*****] 4,400    [*****] [*****] [*****] [*****] [*****]  Sub -                                                                                Total  [*****] [*****] [*****] [*****] [*****] [*****]  [*****] [*****] [*****] [*****] [*****]                                                                                            [*****]                                                                                       [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****]                                                                                       [*****] [*****] [*****] [*****] [*****] [*****] [*****]   [*****] [*****] [*****] [*****] [*****]  [*****]                                                                                       [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****]                                                                                       [*****] [*****] [*****] [*****] [*****] [*****] [*****]   [*****] [*****] [*****] [*****] [*****]  [*****]                                                                                       [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****]                                                                                       [*****] [*****] [*****] [*****] [*****] [*****] [*****]   [*****] [*****] [*****] [*****] [*****]           [*****]                                                                                                                                  

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                                Exhibit A-2                                              [*****]                                                          

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                       Exhibit B                                    Order Form   RAILCAR ORDER FORM   To:    Company:   Telephone:   Order Date:   GATX CPP/BO#:     Car Type(s):     Quantity:     Alternates:    [*****]  Price:    Terms  and  Conditions:   This  Order  Form  is  subject  to  the  terms  and  conditions  of  the  Supply Agreement dated July 30, 2018.    Executed by:    GATX Corporation      By: ___________________________________    Name: ________________________________    Title: _________________________________    Signature: _____________________________            

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                      Exhibit C                                                                  Form of Seller’s Order Confirmation    [Date]      [Customer]  [Address]    Description of Railcar Types:    Quantity (per Railcar Type):    Estimated Base Sales Price (per Railcar):       $    [*****]    Alternates:        1.            2.                  Total – Alternates:                 $    Seller’s Order Confirmation Price:              $    The Seller’s Order Confirmation Price is subject to adjustment in accordance with the terms and  conditions of the Supply Agreement dated July 30, 2018.    Delivery:   Commencing ______________       

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                      Exhibit D                           Form of Certificate of Acceptance                                   [For Paragould]                        AMERICAN RAILCAR INDUSTRIES, INC.                         CERTIFICATE OF ACCEPTANCE      In accordance with the Supply Agreement (“Agreement”) between GATX Corporation ("Buyer")  and American Railcar Industries, Inc. ("Seller"), dated July 30, 2018, the undersigned hereby  certifies that on the date of this Certificate the following Railcars were accepted by the Buyer in  accordance with the Agreement.  The execution of this Certificate of Acceptance shall not  relieve the Seller of any of its obligations under the Agreement nor shall it constitute a waiver by  the Buyer with respect to any of its rights and remedies under the Agreement.  ARI Location: Choose an item.  ARI Lot Number: ____________________________  Total: _____________  Car Initial    Car Number      LD. LMT        LT. WT.         Certification                                                                Date                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Date:                                                  ARI QA  Name                                         Representative                                                                                                                                                                                                                                         Date:     Name                                         Representing                                                                                                                                                                                                                                                                               

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                    [For Marmaduke]                        AMERICAN RAILCAR INDUSTRIES, INC.                         CERTIFICATE OF ACCEPTANCE                                                                                        In accordance with the Supply Agreement (“Agreement”) between GATX Corporation ("Buyer")  and American Railcar Industries, Inc. ("Seller"), dated July 30, 2018, the undersigned hereby  certifies that on the date of this Certificate the following Railcars were accepted by the Buyer in  accordance with the Agreement.  The execution of this Certificate of Acceptance shall not  relieve the Seller of any of its obligations under the Agreement nor shall it constitute a waiver by  the Buyer with respect to any of its rights and remedies under the Agreement.        Lot No.: ____________                                                                                             Customer :                                                                                                                     Rounded    Car    Car #                Lb’s              Kg’s                 Certification                  Capacity                                Built Date  Initial                                                            Date                  Gallons                                Ld. Lmt.                 00,000                              000,000 Lb.       Kg.                              Lt. Wt.                      00,000                              00,000 Lb.        Kg.                                                                                                                                                                                                                                                                                                                                                                       Date:                                        ARI Marmaduke, AR  Name                                Representative                                                                                                                                      

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                                            Date:    Name                                Representing                                                                      FORM QA 074 Rev. B  02/02/10      AAR Certificate of Construction #:  XXXXXX         Date Approved:  ____________                           49 Code of Federal Regulations Part 179.5  Before a tank car is placed in service, the party assembling the completed car shall furnish a  Certificate of Construction, Form AAR 4-2 to the owner and the Executive Director – Tank Car  Safety, AAR, certifying that the tank, equipment, and car fully conforms to all requirements of  the specification.                                                     

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                               Exhibit E                                                                                            Form of Invoice                                                                                                [*****]                                                        

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                       Exhibit F                                 Form of Bill of Sale         THIS  BILL  OF  SALE  is  made and  effective  this  _____  day  of  ________________,  20___ by AMERICAN RAILCAR INDUSTRIES, INC.    (“Seller”) to GATX CORPORATION  (“Buyer”).                                      WITNESSETH:                                                 FOR GOOD AND VALUABLE CONSIDERATION, the sufficiency of which is hereby  acknowledged, Seller bargains, grants, sells, conveys, and transfer to Buyer all of Seller’s right,  title and interest in and to those railcars listed on Schedule A attached hereto  (the  “Cars”), to  have and to hold the same, together with appurtenances and privileges thereunto belonging or  appertaining, for the benefit of Buyer, its successors and assigns, forever.          Seller hereby makes such representations and gives such warranties with respect to the  Cars as set forth in the Supply Agreement between Buyer and Seller dated July 30, 2018 (the  “Agreement”).   EXCEPT  AS  OTHERWISE  PROVIDED  IN  THE  AGREEMENT,  THE  WARRANTIES  IN  THE  AGREEMENT  ARE  EXCLUSIVE  AND  ARE  IN  LIEU  OF  ALL  OTHER  WARRANTIES,  EXPRESS,  IMPLIED,  OR  STATUTORY,  INCLUDING  ANY  WARRANTY OF TITLE, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE.          IN WITNESS WHEREOF, this Bill of Sale has been executed and delivered effective as  of the day and year first written above.                                                                   AMERICAN RAILCAR INDUSTRIES, INC.                                    By:__________________________________________                                   Name:________________________________________                                   Title:_________________________________________                                                                                                                        

 

 CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                            SCHEDULE A                                        TO BILL OF SALE                                                                                                              I.      Invoice No.                  II.     Car Type:            III.    Quantity of Cars:                          IV.     Car Marks:           V.        Running Numbers:                                                     

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                      Exhibit G                                     RECORDS         DOCUMENT TYPE                  FORMAT REQUIRED             Required for                                                                     New Built                                                                     Railcar   Certificate of Construction    Adobe PDF                             Yes  Railcar Specification Sheet - to Microsoft Word or Excel or Adobe    Yes  include Builder file number (BO#) PDF  Drawings - [*****]             [*****]  Electronic drawing files names [*****]                                 to include drawing number, sheet and        [*****]                  revision.         [*****]                          [*****]                          [*****]   Drawing List                   HTML, Adobe PDF, Microsoft Excel      yes                                 or Plain Text (*.txt) file with entries                                 that include the drawing number, sheet,                                 revision and drawing title.  Bill of Materials - to include Builder HTML, Microsoft Word or Excel or yes  file number                    Adobe PDF file of the entire BOM.  Specialty List of additional vendor HTML, Adobe PDF, Microsoft Excel yes  components used to build the car. To or Plain Text (*.txt) file of the entire  include lot and model number for:  Specialty list to include vendor name,                                 component name, component model     1. Trucks                   number, component lot number.     2. Couplers                 Any drawings to follow drawing     3. Brakes                   requirements above.     4. Running Gear   Photograph - To include one full side Digital high resolution color  yes  and A & B end views.           photograph or 8x10 color print.  TCID                           Adobe PDF                             yes  Qualification Acceptance Criteria Adobe PDF                          yes    RECORDS REQUIREMENTS:             1. All data listed herein for new built Railcars is to be in electronic format unless              otherwise agreed to by Buyer.           2. All electronic Railcar data outlined in this Exhibit will be compiled onto a data              CD with all data placed into a folder that carries the name of Document Type       

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                  listed above, i.e., Drawings, Photos, etc.  A sample CD detailing all folders and              document formats is available upon request from GATX Rail Engineering.  This              is a sample of the typical CD contents and folder names.           3. The CD will be presented to Buyer as the close-out package for new built              Railcars.           4. The foregoing Records requirements and electronic Railcar data is subject to              change from time to time in accordance with Buyer’s Fleet Maintenance              Instruction (ETSD-15.0).        

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                      Exhibit H                          Form of Confidentiality Agreement                         CONFIDENTIALITY AGREEMENT           This Confidentiality Agreement (the "Agreement"), effective as of ____________, 20__  (the  "Effective  Date"),  is  by  and  between [*****] (the  "Recipient")  and  American  Railcar  Industries, Inc. (collectively, together with its affiliates, the “Company”).          In  connection  with  an  inspection  by  the  Recipient  pursuant  to  Section  6  of  a  Supply  Agreement,  dated  July  30,  2018  (the  "Contract")  between GATX  Corporation  (“Client”)  and  Company (a “Transaction”), the Recipient may receive or be provided with certain information.          As used herein, "Confidential Information" means any and all information relating to the  Company,  including  without  limitation:  any  information  pertaining  the  existence  of  this  Agreement  or  discussions  in  connection  herewith;  any  information  that  is  received  by  or  provided  to,  or  otherwise  learned  by,  the  Recipient  from  time  to  time,  or  that  is  overheard,  viewed or otherwise becomes known to the Recipient, as a result of the Recipient’s visit of the  Company’s  premises  or  as  a  result  of  discussions  with  the  Company’s  management,  board  members and other representatives; any information about the Company’s customers, suppliers,  investors,  creditors  and  lenders,  business  records,  technical  specifications  and  drawings,  customer  lists,  trade  secrets,  and  confidential  planning  or  policy  matters,  business  strategies,  investments, investment strategies, internal policies and procedures, salary information, matters  subject to attorney-client privilege, information of a personal nature about any of the Company’s  employees  or  former  employees,  and  any  financial  or  accounting  information  relating  to  the  business of the Company; any information about third-party persons or entities which entered or  may enter into a business transaction or other relationship with the Company; any information  the Company obtains under confidentiality arrangements with any third-parties; any information  pertaining to the existence of any other agreements  or communications between the Recipient  and the Company or the Company and any third-party, and the terms of any of the foregoing;  Work Product; any information derived from or pertaining to any inventions or other intellectual  property of the Company; and any information, whether intangible or embodied in tangible form,  that is generally not publicly available and that is safeguarded by Company as confidential, the  unauthorized disclosure of which reasonably would be considered prejudicial to the Company.  For the purposes  hereof, “Work Product” means any  and all data, deliverables, plans, reports,  interpretations,  forecasts  and  records  containing  or  otherwise  reflecting  any  information  otherwise  included  in  the  definition  of  the  Confidential  Information,  together  with  analyses,  compilations, studies or other documents, prepared by the Recipient which contain or otherwise  reflect  such  information.   Notwithstanding  the  foregoing,  the  following  will  not  constitute  “Confidential Information” under this agreement:          

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.            (a)  information  (other  than  any  information  covered  by  clause  (b)  below)  which  the  Recipient can demonstrate in writing existing prior to the date of disclosure was already in the  Recipient’s  possession  without  any  obligation  of  confidentiality,  whereupon  such  information  shall cease to  be deemed part of the Confidential  Information effective as  of the date of such  demonstration;                (b) information which the Recipient can demonstrate was obtained by the Recipient from  a  third  person  who  is  not  prohibited  from  transmitting  the  information  to  the  Recipient  by  a  contractual, legal or fiduciary obligation to any person or entity of which the Recipient is aware  (after  due  inquiry), whereupon  such  information  shall  cease  to  be  deemed  part  of  the  Confidential Information effective as of the date of such demonstration; and                 (c) information  which is  or becomes generally publicly  available through no breach of  this  Agreement  by  the  Recipient  (which,  for  the  avoidance  of  doubt,  shall  not  permit  the  Recipient to validate or otherwise acknowledge any public speculation or rumors related to the  Confidential  Information),  whereupon  such  information  shall  cease  to  be  deemed  part  of  the  Confidential Information effective as of the date of such public availability.                For good and valuable consideration, the receipt of which is hereby acknowledged by the  Recipient, the Recipient agrees (i) that the Confidential Information shall not be the property of  the  Recipient  and,  as  between  the  Recipient  and  the  Company,  shall  be  the  property  of  the  Company  (except  that  the  Work  Product  will  be  the  property  of  the  Recipient),  (ii)  that  the  Confidential  Information  shall  not  be  used  or  disclosed  by  the  Recipient  in  any  manner  whatsoever, in  whole or in  part, other than to: (a) the Recipient's  employees  and/or personnel  who have a need to know such information and (b) to the Recipient's affiliates, subsidiaries, the  domestic or foreign member firms of the global network of separate and independent [*****]  firms, and other parties that the Recipient engages to assist with its business operations and/or for  internal, administrative, and/or regulatory compliance purposes who reasonably require access to  such information for purposes of the Transaction (collectively, individuals and entities covered  by the foregoing clauses (a) and (b), “Representatives”); provided that such Representatives have  been informed of the confidential nature of the Company's Confidential Information and agree to  be bound by  confidentiality obligations  to  the Recipient  commensurate  with  the terms  hereof,  and  (iii)  to  return  the  Confidential  Information  to  the  Company  promptly  upon  its  request;  provided that the Recipient may retain its Work Product and other Confidential Information to  comply with its document retention policies or applicable law, rule, regulation, or professional  standards. Any Confidential Information so kept shall be retained in accordance with the terms  of  this  Agreement.  Notwithstanding  the  forgoing,  the  Recipient  may  share  with  Client  information regarding the Company's compliance with the terms and conditions of the Contract;  provided,  that  such  information  does  not  include  the  Confidential  Information,  unless  the  Company  agrees  to  such  inclusion  in  form  and  substance  reasonably  satisfactory  to  the  Company.   The  Recipient  shall  be  responsible  for  any  breach  of  this  Agreement  by  its  Representatives as if they were a party hereto.       

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.              Notwithstanding anything to the contrary in this Agreement, the Recipient may disclose  Confidential Information as required by law, statute, rule, regulation (including by interrogatory,  subpoena,  deposition,  civil  investigation  demand  or  other  similar  legal  process),  or  by  professional  standards. In  such  instance,  it  is  agreed  that  the  Recipient  will  (other  than  in  connection with routine supervisory examinations by regulatory authorities with jurisdiction and  without breaching any legal or regulatory requirement) provide the Company with prompt notice  of  any  such  request  or  requirement  so  that  the  Company  may  seek  an  appropriate  protective  order.   The  Recipient  may  only  disclose  that  portion  of  the  Confidential  Information  that  the  Recipient is so required to disclose.  In any event, the Recipient will not oppose action by the  Company  in  any  such  proceeding  to  obtain  an  appropriate  protective  order  or  other  reliable  assurance  that  confidential  treatment  will  be  accorded  the  Confidential  Information  and  will  otherwise reasonably cooperate with the Company in any such proceeding.                The  Recipient  acknowledges  that  it  is  aware,  and  that  it  will  advise  its  representatives  who are informed as to the matters which are the subject of this agreement, that the United States  securities  laws,  among  other  things, prohibit  persons  who  are  in  possession  of  material,  non- public  information  concerning  a  company,  including  the  matters  which  are  the  subject  of  this  agreement and the Company, from purchasing or selling securities of such company and from  communicating  such  information  to  any  other  person  under  circumstances  in  which  it  is  reasonably  foreseeable  that  such  person  is  likely  to  purchase  and  sell  such  securities,  and  the  Recipient agrees to comply fully with such and other similar laws.                The  Recipient  will  not be  liable  to  the  Company  in  any  event  for  lost  profits,  consequential, indirect, punitive, exemplary or special damages. Also, the Recipient shall have  no  liability  to  the  Company  arising  from  or  relating  to  any  third-party  hardware,  software,  information or materials selected or supplied by the Company or any other party unrelated to the  Recipient.                 This Agreement shall remain in effect for a period of 36 months after the date that the  Company  receives  a  written  notice  from  the  Recipient  stating  that  the Recipient  or  an  entity  associated with the Recipient is no longer engaged by Client with respect to the Transaction, and  this Agreement shall expire upon expiration of such 36 months period, except that the Recipient  shall  remain  obligated  under  this  Agreement  after  such  expiration  with  respect  to  (i)  any  breaches of this Agreement that may have taken place prior to such expiration, and/or (ii) any  Confidential Information that is retained by the Recipient or its Representatives.          The Recipient agrees that the enforcement of the restrictions contained in this agreement  would not be unduly burdensome to the Recipient, and that the Company’s remedy at law for  their breach may be inadequate, such that  the Company is  entitled to  seek injunctive or other  equitable relief, without any obligation to post any bond.  Furthermore, the Recipient consents to  and waives any objections to the personal jurisdiction of the New York State court with subject       

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.      matter  jurisdiction  over  any  action  arising  from  this  agreement.  This  agreement  shall  be  governed by and construed in accordance with the laws of the State of New York applicable to  contracts made in and to be performed in that state.  This agreement is for the sole and exclusive  benefit  of the Company.  This Agreement represents  the entire agreement  between the parties  hereto  with  regard  to  the  subject  matter  hereof  and  supersedes  any  prior  understandings,  proposals,  or  agreements,  if  any,  between  the  Recipient  and  the  Company  concerning  the  Company's  Confidential  Information  as  it  relates  to  the  Transaction.  Any  changes  to  this  Agreement  must  be  agreed  by  the  parties  in  writing.  This  Agreement  may  be  executed  in  counterparts, each of which shall be deemed an original, but all of which taken together shall  constitute  one  single  document  between  the  parties.  Counterparts  may  be  exchanged  by  facsimile, or attached as a pdf, jpeg, or similar file type to an email.                   IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed  on its behalf by its duly authorized representative as of the Effective Date.                                                                       [Signature Page follows]                                                                                                                

 

CONFIDENTIAL TREATMENT REQUESTED: CERTAIN PORTIONS OF THIS DOCUMENT  HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND, WHERE  APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (“[*****]”) TO DENOTE WHERE OMISSIONS  HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN FILED SEPARATELY WITH THE  SECURITIES AND EXCHANGE COMMISSION.                                                                                 [*****]:                                       __________________________________________                                        ____                                         Name:                                       Date: ________ __, 20__                                       Address:                                         ______________________________________                                        ______________________________________                                        ______________                                         American Railcar Industries, Inc.                                       __________________________________________                                        ____                                         Name:                                       Date: ________ __, 20__  63184822 v2

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