Document:

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                                                                    Exhibit 10.1

                                                                  EXECUTION COPY

                         THE GREENBRIER COMPANIES, INC.,
                             AUTOSTACK COMPANY LLC,
                           GREENBRIER-CONCARRIL, LLC,
                         GREENBRIER LEASING COMPANY LLC,
                    GREENBRIER LEASING LIMITED PARTNER, LLC,
                      GREENBRIER MANAGEMENT SERVICES, LLC,
                            GREENBRIER LEASING, L.P.,
                             GREENBRIER RAILCAR LLC,
                                 GUNDERSON LLC,
                              GUNDERSON MARINE LLC,
                         GUNDERSON RAIL SERVICES LLC AND
                        GUNDERSON SPECIALTY PRODUCTS, LLC

                                   $85,000,000

                    2.375% Convertible Senior Notes due 2026

                               PURCHASE AGREEMENT

                               dated May 17, 2006

                            BEAR, STEARNS & CO. INC.
                         BANC OF AMERICA SECURITIES LLC

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                               PURCHASE AGREEMENT

                                                                    May 17, 2006

BEAR, STEARNS & CO. INC.
BANC OF AMERICA SECURITIES LLC
c/o Bear, Stearns & Co. Inc.
383 Madison Avenue
New York, New York  10179

Ladies and Gentlemen:

          The Greenbrier Companies, Inc., an Oregon corporation (the "Company"),
and the Guarantors (as defined below) hereby confirm their agreement with you
(the "Initial Purchasers"), as set forth below.

          1. The Transactions. Subject to the terms and conditions herein
contained, the Company proposes to issue and sell to the Initial Purchasers
$85,000,000 aggregate principal amount of its 2.375% Convertible Senior Notes
due 2026 (the "Firm Notes"). In addition, the Company has granted to the Initial
Purchasers an option to purchase up to an additional $15,000,000 aggregate
principal amount of its 2.375% Convertible Senior Notes due 2026 (the "Optional
Notes" and, together with the Firm Notes and the Guarantees (as defined below)
endorsed thereon, the "Notes"). The Notes shall be convertible into shares (the
"Conversion Shares") of common stock, without par value, of the Company (the
"Common Stock"), subject to and in accordance with the terms of the Notes. The
Notes will (i) have the terms and provisions which are described in the Offering
Memorandum (as defined below) under the heading "Description of Notes" and
contained in the Indenture (as hereinafter defined) and (ii) be issued pursuant
to the provisions of the Indenture (the "Indenture"), to be dated as of May 22,
2006, among the Company, the Guarantors (as defined below) and U.S. Bank
National Association, a national banking association organized under the laws of
the United States, as trustee (the "Trustee"). The Notes and the Conversion
Shares are hereinafter referred to collectively as the "Securities."

          The sale of the Notes to the Initial Purchasers (the "Offering") will
be made without registration of the Securities under the Securities Act of 1933,
as amended (together with the rules and regulations of the Securities and
Exchange Commission (the "Commission") promulgated thereunder, the "Securities
Act"), in reliance upon the exemption therefrom provided by Section 4(2) of the
Securities Act.

          In connection with the sale of the Notes, the Company has prepared a
preliminary offering memorandum dated May 15, 2006 (the "Preliminary Offering
Memorandum") and an offering memorandum dated the date hereof (the "Offering
Memorandum"), each setting forth information regarding the Company, the
Securities and the terms of the Offering and the transactions contemplated by
the Offering Documents (as defined below). For purposes of this Agreement, "Time
of Sale Memorandum" means the Preliminary Offering Memorandum together with the

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information set forth on Exhibit E to this Agreement. The Time of Sale
Memorandum and the Offering Memorandum will incorporate by reference the
Company's (i) Annual Report on Form 10-K for the year ended August 31, 2005,
(ii) Quarterly Reports on Form 10-Q for the quarters ended November 30, 2005 and
February 28, 2006, and (iii) Current Reports on Form 8-K filed with the
Commission on November 10, 2005, November 16, 2005, December 1, 2005, January
12, 2006, January 26, 2006, March 2, 2006, March 2, 2006, April 13, 2006, May
12, 2006 and May 15, 2006 (other than information in the documents that is
deemed not to be filed with the Commission) (all such documents listed in
clauses (i) through (iii) referred to herein as the "Incorporated Documents").
Any references herein to the Time of Sale Memorandum or the Offering Memorandum
shall be deemed to include, in each case, all amendments and supplements thereto
and the Incorporated Documents and any amendments thereto as of the date of such
Time of Sale Memorandum or Offering Memorandum, as the case may be. The Company
hereby confirms that the Preliminary Offering Memorandum and the Offering
Memorandum may be used in connection with the offering and resale of the Notes
by the Initial Purchasers.

          The Company understands that the Initial Purchasers propose to make an
offering of the Notes only on the terms and in the manner set forth in the
Offering Memorandum and Sections 3, 4 and 10 hereof as soon as the Initial
Purchasers deem advisable after this Agreement has been executed and delivered,
to persons in the United States whom the Initial Purchasers reasonably believe
to be qualified institutional buyers ("QIBs") as defined in Rule 144A under the
Securities Act, as such rule may be amended from time to time ("Rule 144A"), in
transactions under Rule 144A.

          The Initial Purchasers and their direct and indirect transferees of
the Notes will be entitled to the benefits of the Registration Rights Agreement
to be dated as of May 22, 2006 among the parties hereto (the "Registration
Rights Agreement") pursuant to which the Company and the Guarantors will agree,
among other things, to use their reasonable best efforts to (i) file a
registration statement (the "Registration Statement") on the appropriate form
with the Commission registering the resale of the Securities under the
Securities Act and (ii) cause any such Registration Statement to be declared
effective.

          The payment of principal of, premium and Additional Interest (as
defined in the Registration Rights Agreement), if any, and interest on the Notes
will be fully and unconditionally guaranteed on a senior unsecured basis,
jointly and severally, by (i) Autostack Company LLC, an Oregon limited liability
company, Greenbrier-Concarril, LLC, a Delaware limited liability company,
Greenbrier Leasing Company LLC, an Oregon limited liability company, Greenbrier
Leasing Limited Partner, LLC, a Delaware limited liability company, Greenbrier
Management Services, LLC, a Delaware limited liability company, Greenbrier
Leasing, L.P., a Delaware limited partnership, Greenbrier Railcar LLC, an Oregon
limited liability company, Gunderson LLC, an Oregon limited liability company,
Gunderson Marine LLC, an Oregon limited liability company, Gunderson Rail
Services, LLC, a Oregon limited liability company and Gunderson Specialty
Products, LLC, a Delaware limited liability company, and (ii) any Domestic
Subsidiary that is not an Immaterial Subsidiary (as each such term is defined in
the

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Indenture) of the Company formed or acquired after the Closing Date (as
hereinafter defined) that executes an additional guarantee in accordance with
the terms of the Indenture, and their respective successors and assigns
(collectively, the "Guarantors"), pursuant to their guarantees (the
"Guarantees").

          This Agreement, the Securities, the Registration Rights Agreement and
the Indenture are herein referred to as the "Offering Documents."

          2. Representations and Warranties of the Company and Guarantors. Each
of the Company and the Guarantors, jointly and severally, hereby represents, and
warrants to and agrees with the Initial Purchasers that:

               (a) The Time of Sale Memorandum does not, and the Offering
     Memorandum, as of its date, as of the Closing Date and as of the Additional
     Closing Date, if any (each as defined in Section 3 hereof), does not and
     will not, and any supplement or amendment to them will not, contain any
     untrue statement of a material fact or omit to state a material fact
     necessary in order to make the statements therein, in light of the
     circumstances under which they were made, not misleading, except that the
     representations and warranties contained in this paragraph shall not apply
     to statements in or omissions from the Time of Sale Memorandum or the
     Offering Memorandum made in reliance upon and in conformity with
     information (as set forth in Section 16) furnished to the Company in
     writing by the Initial Purchasers expressly for use in the Time of Sale
     Memorandum or the Offering Memorandum or any amendment or supplement
     thereto. The Time of Sale Memorandum and the Offering Memorandum with
     respect to the Notes have been or will be prepared by the Company for use
     by the Initial Purchasers in connection with the Offering. No stop order
     preventing the use of the Time of Sale Memorandum or the Offering
     Memorandum or any amendment or supplement thereto, or any order asserting
     that any of the transactions contemplated by this Agreement are subject to
     the registration requirements of the Securities Act, has been issued and no
     proceeding for that purpose has commenced or is pending or, to the
     knowledge of the Company, is contemplated. Each of the Preliminary Offering
     Memorandum, the Offering Memorandum and any amendment or supplement thereto
     complied or will comply in all material respects with Rule 144A(d)(4) under
     the Securities Act.

               (b) Subsequent to the date as of which information is given in
     the Time of Sale Memorandum, except as disclosed in the Time of Sale
     Memorandum, the Company has not declared, paid or made any dividends (other
     than the dividend declared and paid by the Company during its second
     quarter) or other distributions of any kind on or in respect of its capital
     stock and there has been no material adverse change or effect or any
     development involving a prospective material adverse change or effect,
     whether or not arising from transactions in the ordinary course of
     business, in or affecting (i) the business, condition (financial or
     otherwise), results of operations, stockholders' equity, properties or
     prospects of the Company and each subsidiary of the Company (the
     "Subsidiaries"), taken as a whole, (ii) the long-term debt or capital stock
     of the

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     Company or any of its Subsidiaries or (iii) the ability of the Company to
     consummate the Offering or any other transaction contemplated by the
     Offering Documents (a "Material Adverse Effect"). Since the date of the
     latest balance sheet included or incorporated by reference in the Time of
     Sale Memorandum, neither the Company nor any Subsidiary has incurred or
     undertaken any liability or obligation, whether direct or indirect,
     liquidated or contingent, matured or unmatured, or entered into any
     transaction, including any acquisition or disposition of any business or
     asset, which is material to the Company and the Subsidiaries individually
     or taken as a whole, except for liabilities, obligations and transactions
     which are reflected in the Time of Sale Memorandum or the acquisition,
     disposition or leasing of railcars in the ordinary course of business and
     excluding changes to information contained in the Time of Sale Memorandum
     that is effected by the final price of the Notes or any increase in the
     aggregate principal amount of the Notes.

               (c) The authorized, issued and outstanding capital stock of the
     Company is as set forth in the Time of Sale Memorandum or the Offering
     Memorandum under the caption "Description of Capital Stock." All of the
     issued and outstanding shares of capital stock of the Company are fully
     paid and non-assessable and have been duly authorized and validly issued,
     in compliance with all applicable state, federal and foreign securities
     laws and not in violation of or subject to any preemptive or similar right
     that does or will entitle any person, upon the issuance or sale of any
     security, to acquire from the Company or any Subsidiary any capital stock
     or other security of the Company or any Subsidiary or any security
     convertible into, or exercisable or exchangeable for, capital stock or any
     other such security (any "Relevant Security"), except for such rights as
     may have been fully satisfied or waived prior to the date of the Time of
     Sale Memorandum.

               (d) The Company has authorized the issuance of and reserved, and
     covenants to continue to reserve, free of any preemptive or similar rights,
     a sufficient number of authorized but unissued shares of Common Stock, to
     satisfy the conversion rights of the Notes and issue the Conversion Shares.
     The Conversion Shares have been duly authorized for issuance upon
     conversion of the Notes, are sufficient in number to meet the current
     conversion requirements and, upon conversion of the Notes in accordance
     with their terms and the Indenture, will be issued free of statutory and
     contractual preemptive rights, and the Conversion Shares, when so issued,
     will be validly issued and fully paid and non-assessable, will be issued in
     compliance with all applicable state, federal and foreign securities laws,
     will not be issued in violation of or subject to any preemptive or similar
     right that does or will entitle any person to acquire any Relevant Security
     from the Company or any Subsidiary upon issuance or sale of the Notes or
     the Conversion Shares, and will not be subject to any restriction upon the
     voting or transfer thereof pursuant to applicable law or the Company's
     articles of incorporation, bylaws or governing documents or any agreement
     to which the Company or any of the Subsidiaries is a party or by which any
     of them may be bound.

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               (e) The Common Stock (including the Conversion Shares) conforms
     to the descriptions thereof contained in the Offering Memorandum (or, if
     the Offering Memorandum is not in existence, the most recent Preliminary
     Offering Memorandum). Except as disclosed in the Time of Sale Memorandum,
     neither the Company nor any Subsidiary has outstanding warrants, options to
     purchase, or any preemptive rights or other rights to subscribe for or to
     purchase, or any contracts or commitments to issue or sell, any Relevant
     Security. All corporate action required to be taken by the Company for the
     issuance and delivery of the Conversion Shares has been duly and validly
     taken. Except as disclosed in the Time of Sale Memorandum, there are no
     outstanding subscriptions, rights, warrants, options, calls, convertible
     securities, commitments of sale or rights related to or entitling any
     person to purchase or otherwise to acquire any shares of, or any security
     convertible into or exchangeable or exercisable for, the capital stock of,
     or other ownership interest in, the Company or the Subsidiaries.

               (f) The Subsidiaries listed in Exhibit A are the only
     subsidiaries (within the meaning of Rule 405 under the Securities Act) or
     joint ventures of the Company, except for entities that when taken together
     would not constitute a "significant subsidiary" within the meaning of Rule
     102 of Regulation S-X. Except for the Subsidiaries and as otherwise
     disclosed in the Time of Sale Memorandum, the Company holds no ownership or
     other interest, nominal or beneficial, direct or indirect, in any
     corporation, partnership, joint venture or other business entity. All of
     the issued shares of capital stock of or other ownership interests in each
     Subsidiary have been duly authorized and validly issued and are fully paid
     and non-assessable. All of the issued shares of capital stock or other
     ownership interests in each Subsidiary or in the case of the entities
     listed on Exhibit B, such shares or ownership interest representing the
     percentage of the voting control of the Subsidiary set forth next to the
     name of the Subsidiary on Exhibit B, are owned directly or indirectly by
     the Company free and clear of any lien, charge, mortgage, pledge, security
     interest, claim, equity, trust or other encumbrance, preferential
     arrangement, defect or restriction of any kind whatsoever (any "Lien").

               (g) Each of the Company and the Subsidiaries has been duly
     organized or formed and validly exists as a corporation, partnership or
     limited liability company in good standing under the laws of its
     jurisdiction of organization or formation. Each of the Company and the
     Subsidiaries is duly qualified to do business and is in good standing as a
     foreign corporation, partnership or limited liability company in each
     jurisdiction in which the character or location of its properties (owned,
     leased or licensed) or the nature or conduct of its business makes such
     qualification necessary, except for those failures to be so qualified or in
     good standing which (individually and in the aggregate) could not
     reasonably be expected to have a Material Adverse Effect. Each of the
     Company and the Subsidiaries has all requisite corporate (or other entity)
     power and authority, and, except as could not reasonably be expected to
     have a Material Adverse Effect, all necessary consents, approvals,
     authorizations, orders,

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     registrations, qualifications, licenses, filings and permits of, with and
     from all judicial, regulatory and other legal or governmental agencies and
     bodies and all third parties, foreign and domestic (collectively, the
     "Consents"), to own, lease and operate its properties and conduct its
     business as it is now being conducted and as described in the Time of Sale
     Memorandum, and each such Consent is valid and in full force and effect,
     and neither the Company nor any Subsidiary has received notice of any
     investigation or proceedings which has resulted in or, if decided adversely
     to the Company or any Subsidiary, could reasonably be expected to result
     in, the revocation of, or imposition of a materially burdensome restriction
     on, any such Consent. Each of the Company and the Subsidiaries is in
     compliance with all applicable laws, rules, regulations, ordinances,
     directives, judgments, decrees and orders, foreign and domestic, except
     where failure to be in compliance could not reasonably be expected to have
     a Material Adverse Effect. No Consent contains a materially burdensome
     restriction not adequately disclosed in the Time of Sale Memorandum.

               (h) The Company has the requisite corporate power and authority
     to execute, deliver and perform its obligations under the Notes. The Notes
     have been duly authorized by the Company for issuance and, when executed by
     the Company and authenticated by the Trustee in accordance with the
     provisions of the Indenture and when delivered to and paid for by the
     Initial Purchasers in accordance with the terms hereof, will have been duly
     executed, issued and delivered and will constitute valid and legally
     binding obligations of the Company, entitled to the benefits of the
     Indenture and enforceable against the Company in accordance with their
     terms except that the enforcement thereof may be limited by (i) bankruptcy,
     insolvency, reorganization, moratorium or other similar laws now or
     hereafter in effect relating to or affecting creditors' rights generally
     and (ii) general principles of equity (regardless of whether such
     enforcement is considered in a proceeding at law or in equity) ((i) and
     (ii) collectively, the "Enforceability Exceptions"). At the Closing Date,
     the Notes will be in the form contemplated by the Indenture.

               (i) Each Guarantor has the requisite limited liability company or
     limited partnership (as applicable) power and authority to execute, deliver
     and perform its obligations under the Guarantees. The Guarantees have been
     duly authorized by each of the Guarantors and, when the Notes have been
     executed, authenticated and issued in accordance with the terms of the
     Indenture and delivered to and paid for by the Initial Purchasers in
     accordance with the terms hereof, the Guarantees will constitute valid and
     legally binding obligations of each of the Guarantors, entitled to the
     benefits of the Indenture and enforceable against each of the Guarantors in
     accordance with their terms except that the enforcement thereof may be
     limited by the Enforceability Exceptions.

               (j) The Company and the Guarantors have the requisite corporate,
     limited liability company or limited partnership (as applicable) power and
     authority to execute, deliver and perform their obligations under the
     Indenture. The Indenture has been duly authorized by the Company and the

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     Guarantors and, on the Closing Date, will comply, in all material respects,
     with the requirements of the Trust Indenture Act of 1939, as amended (the
     "TIA," which term as used herein includes the rules and regulations of the
     Commission promulgated thereunder), and the rules and regulations of the
     Commission applicable to an indenture which is qualified thereunder, and,
     when executed and delivered by the Company and the Guarantors (assuming the
     due authorization, execution and delivery by the Trustee), will constitute
     a valid and legally binding agreement of the Company and the Guarantors,
     enforceable against the Company and the Guarantors in accordance with its
     terms except that the enforcement thereof may be limited by the
     Enforceability Exceptions.

               (k) The Company and the Guarantors have the requisite corporate,
     limited liability company or limited partnership (as applicable) power and
     authority to execute, deliver and perform their obligations under the
     Registration Rights Agreement. The Registration Rights Agreement has been
     duly authorized by the Company and the Guarantors and, when duly executed
     and delivered by the Company and the Guarantors (assuming the due
     authorization, execution and delivery by the Initial Purchasers), will
     constitute a valid and legally binding agreement of the Company and the
     Guarantors, enforceable against the Company and the Guarantors in
     accordance with its terms except that the enforcement thereof may be
     limited by the Enforceability Exceptions and except that rights to
     indemnity and contribution may be limited by applicable law or public
     policy.

               (l) The Company and the Guarantors have the requisite corporate,
     limited liability company or limited partnership (as applicable) right,
     power and authority to execute, deliver and perform their obligations under
     this Agreement. This Agreement has been duly authorized, executed and
     delivered by the Company and the Guarantors and (assuming the due
     authorization, execution and delivery by the Initial Purchasers)
     constitutes the legal, valid and binding obligation of the Company and the
     Guarantors, enforceable against the Company and the Guarantors in
     accordance with its terms, except that the enforcement thereof may be
     limited by the Enforceability Exceptions.

               (m) The execution, delivery, and performance of this Agreement
     and the consummation of the transactions contemplated by the Offering
     Documents do not and will not (i) conflict with, require a Consent under
     (except for any Consent previously obtained or to be obtained prior to the
     Closing Date) or result in a breach of any of the terms and provisions of,
     or constitute a default (or an event which with notice or lapse of time, or
     both, would constitute a default) under, or result in the creation or
     imposition of any Lien upon any property or assets of the Company or any
     Subsidiary pursuant to, any indenture, mortgage, deed of trust, loan
     agreement or other agreement, instrument, franchise, license or permit to
     which the Company or any Subsidiary is a party or by which the Company or
     any Subsidiary or their respective properties, operations or assets may be
     bound, (ii) violate or conflict with any provision of the certificate or
     articles of incorporation, by-laws, certificate of formation, limited
     liability

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     company agreement or other organizational documents of the Company or any
     Subsidiary or (iii) violate or conflict with any law, rule, regulation,
     ordinance, directive, judgment, decree or order of any judicial, regulatory
     or other legal or governmental agency or body, domestic or foreign, except
     in the case of clauses (i) and (iii) above as could not reasonably be
     expected to have a Material Adverse Effect.

               (n) No Consent of, with or from any judicial, regulatory or other
     legal or governmental agency or body or any third party, foreign or
     domestic, is required for the execution, delivery and performance of this
     Agreement or the consummation of the Offering and the other transactions
     contemplated by the Offering Documents, including the issuance, sale and
     delivery of the Notes (and the issuance of the Conversion Shares upon
     conversion of the Notes) except (i) such Consents as may be required under
     applicable state securities or blue sky laws, (ii) as regards the
     effectiveness of the Registration Statement as contemplated by the
     Registration Rights Agreement, and (iii) as regards the amendment of the
     Company's credit facility, which consent shall be obtained prior to the
     Closing Date.

               (o) Except as disclosed in the Time of Sale Memorandum, there is
     no judicial, regulatory, arbitral or other legal or governmental proceeding
     or other litigation or arbitration, domestic or foreign, pending to which
     the Company or any Subsidiary is a party or of which any property,
     operations or assets of the Company or any Subsidiary is the subject which,
     individually or in the aggregate, if determined adversely to the Company or
     any Subsidiary, could reasonably be expected to have a Material Adverse
     Effect; to the best of the Company's knowledge, no such proceeding,
     litigation or arbitration is threatened or contemplated; and the defense of
     all such proceedings, litigation and arbitration against or involving the
     Company or any Subsidiary could not reasonably be expected to have a
     Material Adverse Effect.

               (p) The financial statements and any pro forma data, including
     the notes thereto, and the supporting schedules included or incorporated by
     reference in the Time of Sale Memorandum present fairly the financial
     position as of the dates indicated and the cash flows and results of
     operations for the periods specified of the Company and its consolidated
     subsidiaries and the other entities for which financial statements are
     included or incorporated by reference in the Time of Sale Memorandum;
     except as otherwise stated in the Time of Sale Memorandum, said financial
     statements have been prepared in conformity with United States generally
     accepted accounting principles ("GAAP") applied on a consistent basis
     throughout the periods involved; and the supporting schedules included in
     the Time of Sale Memorandum present fairly the information required to be
     stated therein. No other financial statements or supporting schedules which
     would be required by the Securities Act, the Securities Exchange Act of
     1934, as amended (together with the rules and regulations of the Commission
     promulgated thereunder, the "Exchange Act") or the rules and regulations of
     the Commission (the "Rules and Regulations") to be included in the Offering
     Memorandum (or, if

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     the Offering Memorandum is not in existence, the Time of Sale Memorandum)
     if the Offering Memorandum (or, if the Offering Memorandum is not in
     existence, the Time of Sale Memorandum) were a prospectus included in a
     registration statement on Form S-1 filed pursuant to the Securities Act,
     have not been so included. The other financial and statistical information
     included or incorporated by reference in the Time of Sale Memorandum
     presents fairly the information included therein and, except for non-GAAP
     financial measures (as such term is defined in Item 10(e) of Regulation S-K
     of the Rules and Regulations), non-financial operating data (which are
     addressed below in this Section 2(p)) and market and industry data (which
     are addressed below in Section 2(r)), have been prepared on a basis
     consistent with that of the financial statements that are included or
     incorporated by reference in the Time of Sale Memorandum and the books and
     records of the respective entities presented therein and, to the extent
     such information is a range, projection or estimate, is based on the good
     faith belief and estimates of the management of the Company. The financial
     information included in the Incorporated Documents has been derived from
     the Company's consolidated financial statements included in the
     Incorporated Documents or from the Company's accounting books and records
     generally. The non-GAAP financial measures and non-financial operating data
     (which terms do not include market or industry data) included or
     incorporated by reference in the Time of Sale Memorandum have been derived
     from, and are consistent with, the books and records of the Company and the
     Subsidiaries.

               (q) The Time of Sale Memorandum contains, if any, all pro forma
     and as adjusted financial information and statements which are required to
     be included or incorporated by reference in accordance with Regulation S-X
     in the Offering Memorandum (or, if the Offering Memorandum is not in
     existence, the Time of Sale Memorandum) if the Offering Memorandum (or, if
     the Offering Memorandum is not in existence, the Time of Sale Memorandum)
     were a prospectus included in a registration statement on Form S-1 filed
     pursuant to the Securities Act. The pro forma and as adjusted financial
     information and statements, if any, have been properly compiled and
     prepared in accordance with the applicable requirements of the Securities
     Act and the Exchange Act and includes all adjustments necessary to present
     fairly in accordance with GAAP the pro forma and as adjusted financial
     position of the respective entity or entities presented therein at the
     respective dates indicated and their cash flows and the results of
     operations for the respective periods specified.

               (r) The statistical, industry-related and market-related data
     included in the Time of Sale Memorandum (i) are based on or derived from
     sources which the Company reasonably and in good faith believes are
     reliable and accurate, and such data agree with the sources from which they
     are derived, or (ii) with respect to the items set forth in Exhibit C
     hereto, represent the Company's reasonable estimates determined in good
     faith.

               (s) Deloitte & Touche LLP, which has examined certain of such
     financial statements as set forth in its reports included in the Time of
     Sale

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     Memorandum, is an independent public accounting firm as required by the
     Securities Act and the Exchange Act.

               (t) The Company is subject to the reporting requirements of
     Section 13 or 15(d) of the Exchange Act and files reports with the
     Commission on EDGAR. The Common Stock is registered pursuant to Section
     12(b) of the Exchange Act and its outstanding shares of Common Stock are
     listed on the New York Stock Exchange (the "NYSE"), and the Company has
     taken no action designed to, or likely to have the effect of, terminating
     the registration of its common stock under the Exchange Act or de-listing
     its Common Stock from the NYSE, nor has the Company received any
     notification that the Commission or the NYSE is contemplating terminating
     such registration or listing.

               (u) Except for the Current Reports on Form 8-K filed with the
     Commission on December 1, 2005 and May 12, 2006, the Company has filed in a
     timely manner each document or report required to be filed by it pursuant
     to the Exchange Act during the 12 calendar months and any portion of a
     month immediately preceding the date of this Agreement, including, without
     limitation, the Incorporated Documents; each such document or report
     (including any financial statements) and any amendment thereto at the time
     it was filed conformed in all material respects to the requirements of the
     Exchange Act; and none of such documents or reports contained (or, when
     read together with the other information in the Time of Sale Memorandum, do
     contain) an untrue statement of any material fact or omitted (or, when read
     together with the other information in the Time of Sale Memorandum, do
     omit) to state any material fact required to be stated therein or necessary
     to make the statements therein, in light of the circumstances under which
     they were made, not misleading, and at all times up to and including the
     Closing Date (and if any Optional Notes are purchased, the Additional
     Closing Date), will not contain an untrue statement of a material fact or
     omit to state a material fact required to be stated therein or necessary in
     order to make the statements therein, in the light of the circumstances
     under which they were made, not misleading.

               (v) The Company and the Subsidiaries maintain a system of
     internal accounting and other controls sufficient to provide reasonable
     assurances that (i) transactions are executed in accordance with
     management's general or specific authorizations, (ii) transactions are
     recorded as necessary to permit preparation of financial statements in
     conformity with GAAP and to maintain accountability for assets, (iii)
     access to assets is permitted only in accordance with management's general
     or specific authorization and (iv) the recorded accounting for assets is
     compared with existing assets at reasonable intervals and appropriate
     action is taken with respect to any differences.

               (w) Neither the Company nor any of its affiliates (within the
     meaning of Rule 144 under the Securities Act) has taken, directly or
     indirectly, any action which constitutes or is designed to cause or result
     in, or which could reasonably be expected to constitute, cause or result
     in, the stabilization or

                                       11

<PAGE>

     manipulation of the price of any security to facilitate the sale or resale
     of the Notes.

               (x) None of the Company or any of the Subsidiaries or any of
     their respective affiliates (as defined in Rule 501(b) of Regulation D
     under the Securities Act) directly, or through any agent (except that the
     Company, the Subsidiaries, and their respective affiliates make no
     representation or warranty as to the Initial Purchasers), (i) sold, offered
     for sale, solicited offers to buy or otherwise negotiated in respect of any
     "security" (as defined in the Securities Act) which is or could be
     integrated with the sale of the Securities in a manner that would require
     the registration under the Securities Act of the Securities or (ii) engaged
     in any form of general solicitation or general advertising (as those terms
     are used in Regulation D under the Securities Act) in connection with the
     offering of the Securities. Assuming the accuracy of the Initial
     Purchasers' representations and warranties set forth in Section 10 hereof,
     the offer and sale of the Notes to the Initial Purchasers in the manner
     contemplated by this Agreement and the Time of Sale Memorandum does not
     require registration of the Notes under the Securities Act and the
     Indenture does not require qualification under the TIA at the time of the
     offer and sale of the Notes.

               (y) Except as disclosed in the Time of Sale Memorandum, no holder
     of any Relevant Security has any rights to require registration of any
     Relevant Security as part or on account of, or otherwise in connection with
     the Offering and any of the other transactions contemplated by the Offering
     Documents, and any such rights so disclosed have either been fully complied
     with by the Company or effectively waived by the holders thereof, and any
     such waivers remain in full force and effect.

               (z) There exists as of the date hereof (after giving effect to
     the transactions contemplated by each of the Offering Documents) no event
     or condition that would constitute a default or an event of default (in
     each case as defined in each of the Offering Documents) under any of the
     Offering Documents that would result in a Material Adverse Effect or
     materially adversely affect the ability of the Company to consummate the
     Offering and the other transactions contemplated by the Offering Documents.

               (aa) Each of the Company and the Subsidiaries is not now and,
     after sale of the Notes as contemplated hereunder and application of the
     net proceeds of such sale as described in the Time of Sale Memorandum under
     the caption "Use of Proceeds," will not be an "investment company" or be
     controlled by an "investment company" within the meaning of the Investment
     Company Act of 1940, as amended.

               (bb) There are no contracts or other documents (including,
     without limitation, any voting agreement), that would be required by the
     Securities Act, the Exchange Act or the Rules and Regulations to be
     described in the Offering Memorandum (or, if the Offering Memorandum is not
     in existence,

                                       12

<PAGE>

     the Time of Sale Memorandum) if the Offering Memorandum (or, if the
     Offering Memorandum is not in existence, the Time of Sale Memorandum) were
     a prospectus included in a registration statement on Form S-1 filed under
     the Securities Act, which have not been so described. Except as described
     in the Time of Sale Memorandum, none of the Company or any of the
     Subsidiaries is in default under any of the contracts described in the Time
     of Sale Memorandum, has received a notice or claim of any such default or
     has knowledge of any breach of such contracts by the other party or parties
     thereto, except such defaults or breaches as would not, individually or in
     the aggregate, have a Material Adverse Effect.

               (cc) No relationship, direct or indirect, exists between or among
     any of the Company or any affiliate of the Company, on the one hand, and
     any director, officer, stockholder, customer or supplier of the Company or
     any affiliate of the Company, on the other hand, which would be required by
     the Securities Act, the Exchange Act or the Rules and Regulations to be
     described in the Offering Memorandum (or, if the Offering Memorandum is not
     in existence, the Time of Sale Memorandum) if the Offering Memorandum (or,
     if the Offering Memorandum is not in existence, the Time of Sale
     Memorandum) were a prospectus included in a registration statement on Form
     S-1 filed under the Securities Act, which have not been so described. There
     are no outstanding loans, advances (except normal advances for business
     expenses in the ordinary course of business) or guarantees of indebtedness
     by the Company to or for the benefit of any of the officers or directors of
     the Company or any of their respective family members, except as disclosed
     in the Time of Sale Memorandum. The Company has not, in violation of the
     Sarbanes-Oxley Act, directly or indirectly, including through a Subsidiary,
     extended or maintained credit, arranged for the extension of credit, or
     renewed an extension of credit, in the form of a personal loan to or for
     any director or executive officer of the Company.

               (dd) Except as disclosed in the Time of Sale Memorandum, there
     are no contracts, agreements or understandings between the Company and any
     person that would give rise to a valid claim against the Company or any
     Initial Purchaser for a brokerage commission, finder's fee or other like
     payment in connection with the transactions contemplated by the Offering
     Documents.

               (ee) The Company and each Subsidiary owns or leases all such
     properties as are necessary to the conduct of its business as presently
     operated and as proposed to be operated as described in the Time of Sale
     Memorandum. The Company and the Subsidiaries have good and marketable title
     in fee simple to all real property and good and marketable title to all
     personal property owned by them, in each case free and clear of all Liens
     except such as are described in the Time of Sale Memorandum or such as do
     not (individually or in the aggregate) materially affect the value of such
     property or interfere with the use made or proposed to be made of such
     property by the Company and the Subsidiaries; and any real property and
     buildings held under lease or sublease by the Company and the Subsidiaries
     are held by them under valid, subsisting and enforceable leases

                                       13

<PAGE>

     with such exceptions as are not material to, and do not interfere with, the
     use made and proposed to be made of such property and buildings by the
     Company and the Subsidiaries. Neither the Company nor any Subsidiary has
     received any notice of any claim adverse to its ownership of any real or
     personal property or of any claim against the continued possession of any
     real property, whether owned or held under lease or sublease by the Company
     or any Subsidiary.

               (ff) Each of the Company and the Subsidiaries (i) owns or
     possesses adequate right to use all patents, patent applications,
     trademarks, service marks, trade names, trademark registrations, service
     mark registrations, copyrights, licenses, formulae, customer lists, and
     know-how and other intellectual property (including trade secrets and other
     unpatented and/or unpatentable proprietary or confidential information,
     systems or procedures) (collectively, the "Intellectual Property")
     necessary for or used in the conduct of their respective businesses as
     being conducted and as described in the Time of Sale Memorandum and (ii)
     except as would, if determined adversely to the Company or the
     Subsidiaries, not have individually or in the aggregate, a Material Adverse
     Effect, has no reason to believe that the conduct of their respective
     businesses does or will infringe, misappropriate, violate or conflict with,
     and have not received any notice of any claim of infringement,
     misappropriation, violation or conflict with, any such right of others. To
     the best of the Company's knowledge, all material technical information
     developed by and belonging to the Company or any Subsidiary which has not
     been patented has been kept confidential. Except as described in the Time
     of Sale Memorandum, neither the Company nor any Subsidiary has granted or
     assigned to any other person or entity any right to manufacture, have
     manufactured, assemble or sell the current products and services of the
     Company and the Subsidiaries or those products and services described in
     the Time of Sale Memorandum. Except as would, if determined adversely to
     the Company or the Subsidiaries, not have individually or in the aggregate,
     a Material Adverse Effect, (x) the Company is not aware of any infringement
     by third parties of any Intellectual Property of the Company or any
     Subsidiary; (y) there is no pending or, to the Company's knowledge,
     threatened action, suit, proceeding or claim by others challenging the
     Company's or any Subsidiary's ownership of or rights in or to any such
     Intellectual Property, and the Company is unaware of any facts which would
     form a reasonable basis for any such claim; and (z) there is no pending or,
     to the Company's knowledge, threatened action, suit, proceeding or claim by
     others that the Company or any Subsidiary infringes, misappropriates or
     otherwise violates any patent, trademark, copyright, trade secret or other
     proprietary rights of others, and the Company is unaware of any fact that
     would form a reasonable basis for any such claim. Neither the Company nor
     any Subsidiary thereof is in breach of any license or other agreement that
     relates to any Intellectual Property owned or used by the Company or any
     Subsidiary and, to the Company's best knowledge, no other party to any such
     agreement is in breach thereof.

               (gg) The Company and the Subsidiaries maintain insurance in such
     amounts and covering such risks as the Company reasonably considers

                                       14

<PAGE>

     adequate for the conduct of its business and the value of its properties
     and as is customary for companies engaged in similar businesses in similar
     industries, all of which insurance is in full force and effect, except
     where the failure to maintain such insurance could not reasonably be
     expected to have a Material Adverse Effect. There are no material claims by
     the Company or any Subsidiary under any such policy or instrument as to
     which any insurance company is denying liability or defending under a
     reservation of rights clause, except the insurer has issued a reservation
     of rights letter in the litigation pending in Tarrant County, Texas that is
     described under Item 3, "Legal Proceedings" in the Company's Annual Report
     on Form 10-K for the year ended August 31, 2005, and Part II, Item 1,
     "Legal Proceedings" in the Company's Quarterly Report on Form 10-Q for the
     quarter ended February 28, 2006 incorporated by reference in the Time of
     Sale Memorandum. The Company reasonably believes that it will be able to
     renew its existing insurance as and when such coverage expires or will be
     able to obtain replacement insurance adequate for the conduct of the
     business and the value of its properties at a cost that would not have a
     Material Adverse Effect.

               (hh) The Company has in effect insurance covering the Company,
     its directors and officers for liabilities or losses arising in connection
     with this Offering, including, without limitation, liabilities or losses
     arising under the Securities Act, the Exchange Act, the Rules and
     Regulations and applicable foreign securities laws.

               (ii) Each of the Company and the Subsidiaries has accurately
     prepared and timely filed (including through permitted extensions) all
     federal, state, foreign and other tax returns that are required to be filed
     by it, except where the failure to file would not have a Material Adverse
     Effect, and has paid or made provision for the payment of all taxes,
     assessments, governmental or other similar charges, including without
     limitation, all sales and use taxes and all taxes which the Company or any
     Subsidiary is obligated to withhold from amounts owing to employees,
     creditors and third parties, with respect to the periods covered by such
     tax returns (whether or not such amounts are shown as due on any tax
     return), except to the extent that any of such taxes, assessments or
     charges are being contested in good faith. No deficiency assessment with
     respect to a proposed adjustment of the Company's or any Subsidiary's
     federal, state, local or foreign taxes is pending or, to the best of the
     Company's knowledge, threatened. The accruals and reserves on the books and
     records of the Company and the Subsidiaries in respect of tax liabilities
     for any taxable period not finally determined are adequate to meet any
     assessments and related liabilities for any such period and, since August
     31, 2005, the Company and the Subsidiaries have not incurred any liability
     for taxes other than in the ordinary course of its business. There is no
     tax Lien, whether imposed by any federal, state, foreign or other taxing
     authority, outstanding against the assets, properties or business of the
     Company or any Subsidiary.

               (jj) No labor disturbance by the employees of the Company or any
     Subsidiary exists or, to the best of the Company's knowledge, is imminent

                                       15
<PAGE>

     and the Company is not aware of any existing or imminent labor disturbances
     by the subcontracted labor at the Company's facility in Sahagun, Mexico or
     the employees of any of its or any Subsidiary's principal suppliers,
     manufacturers, customers or contractors, which, in either case
     (individually or in the aggregate), could reasonably be expected to have a
     Material Adverse Effect.

               (kk) No nonexempt "prohibited transaction" (as defined in either
     Section 406 of the Employee Retirement Income Security Act of 1974, as
     amended, including the regulations and published interpretations thereunder
     ("ERISA") or Section 4975 of the Internal Revenue Code of 1986, as amended
     from time to time (the "Code")) has occurred with respect to any employee
     benefit plan for which the Company or any Subsidiary would have any
     liability; each employee benefit plan for which the Company or any
     Subsidiary would have any liability is in compliance in all material
     respects with applicable law, including (without limitation) ERISA and the
     Code; neither the Company nor any Subsidiary has nor has it maintained any
     employee benefit plans as such term is defined in Section 3(3) of ERISA
     that are subject to Title IV of ERISA; and each plan for which the Company
     would have any liability that is intended to be qualified under Section
     401(a) of the Code has received a favorable determination letter from the
     IRS as to its qualification is so qualified and nothing has occurred,
     whether by action or by failure to act, which would reasonably be expected
     to cause the loss of such qualification.

               (ll) The execution, delivery, and performance of this Agreement
     and the consummation of the transactions contemplated by the Offering
     Documents do not and will not involve any prohibited transaction within the
     meaning of Section 406 of ERISA or Section 4975 of the Internal Revenue
     Code of 1986.

               (mm) Except as disclosed in the Time of Sale Memorandum with
     respect to the Portland Harbor Superfund Site and the ongoing soil and
     groundwater remediation at the Gunderson, Portland facility, and except as
     could not reasonably be expected to have a Material Adverse Effect:

                    (i) Neither the Company nor any Subsidiary has unlawfully
          released any hazardous substance in a manner likely to give rise to
          any liability under any applicable law, rule, regulation, order,
          judgment, decree or permit relating to pollution or protection of
          human health and safety and environment ("Environmental Law").

                    (ii) Neither the Company nor any Subsidiary has agreed
          contractually to indemnify any past or current owner or operator of
          any property currently owned or operated by the Company or any
          Subsidiary, for liability related to such prior ownership or operation
          of such property, under any Environmental Law, including any
          obligation for cleanup or remedial action.

                                       16

<PAGE>

                    (iii) There is no pending or, to the best of the Company's
          knowledge, threatened administrative, regulatory or judicial action,
          claim or notice of noncompliance or violation, investigation or
          proceedings relating to any Environmental Law against the Company or
          any Subsidiary.

               (nn) Neither the Company, any Subsidiary nor, to the Company's
     knowledge, any of its employees or agents has at any time during the last
     five years (i) made any unlawful contribution to any candidate for foreign
     office, or failed to disclose fully any contribution in violation of law or
     (ii) made any payment to any federal or state governmental officer or
     official, or other person charged with similar public or quasi-public
     duties, other than payments required or permitted by the laws of the United
     States of any jurisdiction thereof.

               (oo) Neither the Company nor any Subsidiary (i) is in violation
     of its certificate or articles of incorporation, by-laws, certificate of
     formation, limited liability company agreement, partnership agreement or
     other organizational documents, (ii) is in default under, and no event has
     occurred which, with notice or lapse of time, or both, would constitute a
     default under or result in the creation or imposition of any Lien upon any
     property or assets of the Company or any of the Subsidiaries pursuant to,
     any indenture, mortgage, deed of trust, loan agreement or other agreement
     or instrument to which it is a party or by which it is bound or to which
     any of its property or assets is subject or (iii) is in violation in any
     respect of any law, rule, regulation, ordinance, directive, judgment,
     decree or order of any judicial, regulatory or other legal or governmental
     agency or body, foreign or domestic, except (in the case clauses (ii) and
     (iii) above) violations or defaults that could not (individually or in the
     aggregate) reasonably be expected to have a Material Adverse Effect and
     except (in the case of clause (ii) alone) for any Lien disclosed in the
     Time of Sale Memorandum.

               (pp) The Company is in compliance with applicable provisions of
     the Sarbanes-Oxley Act.

               (qq) The Company has implemented the "disclosure controls and
     procedures" (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange
     Act) required in order for the Chief Executive Officer and Chief Financial
     Officer of the Company to engage in the review and evaluation process
     mandated by the Exchange Act. The Company's "disclosure controls and
     procedures" are reasonably designed to ensure that all information (both
     financial and non-financial) required to be disclosed by the Company in the
     reports that it files or submits under the Exchange Act is recorded,
     processed, summarized and reported within the time periods specified in the
     Rules and Regulations, and that all such information is accumulated and
     communicated to the Company's management as appropriate to allow timely
     decisions regarding required disclosure and to make the certifications of
     the Chief Executive Officer and Chief Financial Officer of the Company
     required under the Exchange Act with respect to such reports.

                                       17

<PAGE>

               (rr) Since the date of the filing of the Company's Annual Report
     on Form 10-K for the year ended August 31, 2005, the Company's auditors and
     the audit committee of the board of directors of the Company (or persons
     fulfilling the equivalent function) have not been advised of (i) any
     significant deficiencies in the design or operation of internal controls
     which adversely affect the Company's ability to record, process, summarize
     and report financial data nor any material weaknesses in internal controls;
     or (ii) any fraud, whether or not material, that involves management or
     other employees who have a significant role in the Company's internal
     controls.

               (ss) Since the date of the filing of the Company's Annual Report
     on Form 10-K for the year ended August 31, 2005, there have been no
     material changes in internal controls or in other factors that could
     materially affect internal controls, including any corrective actions with
     regard to material deficiencies.

               (tt) The section entitled "Management's Discussion and Analysis
     of Financial Condition and Results of Operation - Critical Accounting
     Policies" incorporated by reference in the Offering Memorandum (or, if the
     Offering Memorandum is not in existence, the Time of Sale Memorandum)
     accurately and fully describes in accordance with applicable Rules and
     Regulations (i) accounting policies which the Company believes are the most
     important in the portrayal of the financial condition and results of
     operations of the Company and its consolidated subsidiaries and which
     require management's most difficult, subjective or complex judgments
     ("critical accounting policies"), (ii) judgments and uncertainties
     affecting the application of critical accounting policies and (iii) the
     likelihood that materially different amounts would be reported under
     different conditions or using different assumptions.

               (uu) The Company's board of directors, senior management and
     audit committee have reviewed and agreed with the selection, application
     and disclosure of critical accounting policies and have consulted with
     their legal advisers and independent accountants with regard to such
     disclosure.

               (vv) The section entitled "Management's Discussion and Analysis
     of Financial Condition and Results of Operations - Liquidity and Capital
     Resources" incorporated by reference in the Time of Sale Memorandum
     accurately and fully describes in accordance with applicable Rules and
     Regulations (i) all material trends, demands, commitments, events,
     uncertainties and risks, and the potential effects thereof, that the
     Company believes would materially affect liquidity and are reasonably
     likely to occur and (ii) all off-balance sheet arrangements that have or
     are reasonably likely to have a current or future effect on the financial
     condition, changes in financial condition, revenues or expenses, results of
     operations, liquidity, capital expenditures or capital resources of the
     Company and the Subsidiaries taken as a whole.

                                       18

<PAGE>

               (ww) Except as disclosed in the Time of Sale Memorandum, there
     are no outstanding guarantees or other contingent obligations (other than
     under product warranties given in the ordinary course of business) of the
     Company or any Subsidiary that could reasonably be expected to have a
     Material Adverse Effect.

               (xx) The Company and its Subsidiaries have all material
     certifications required by the Association of American Railroads ("AAR") as
     a railcar builder, repair and refurbishment facility and component
     manufacturer, and products sold and leased by the Company and its
     Subsidiaries in North America meet applicable AAR, Transport Canada and
     Federal Railroad Administration standards.

               (yy) No event or circumstance has occurred or arisen that could
     reasonably be expected to give rise to a requirement that the Company make
     additional disclosure on Form 8-K and has not been so disclosed.

               (zz) Subject to compliance by the Initial Purchasers with
     Sections 3 and 10 hereof, it is not necessary in connection with the offer,
     sale and delivery of the Notes to the Initial Purchasers in the manner
     contemplated by this Agreement and the Offering Memorandum to register the
     Notes under the Securities Act.

               (aaa) No securities of the Company or any of the Subsidiaries are
     (i) of the same class (within the meaning of Rule 144A under the Securities
     Act) as the Notes and (ii) listed on a national securities exchange
     registered under Section 6 of the Exchange Act or quoted in a U.S.
     automated interdealer quotation system.

               (bbb) The Company has not distributed and, prior to the later of
     (i) the Closing Date (and, if any Optional Notes are purchased, the
     Additional Closing Date) and (ii) completion of the distribution of the
     Notes, will not distribute any offering material in connection with the
     offering and sale of the Notes other than the Time of Sale Memorandum and
     the Offering Memorandum.

               (ccc) The certificates for the shares of Common Stock (including
     the Conversion Shares) conform to the requirements of the NYSE and the
     Oregon Business Corporation Act.

               (ddd) Each of the Company and the Guarantors is, and immediately
     after the Closing Date will be, Solvent. As used herein, the term "Solvent"
     means, with respect to any person on a particular date, that on such date
     (i) the fair market value of the assets of such person is greater than the
     total amount of liabilities (including contingent liabilities) of such
     person, (ii) the present fair salable value of the assets of such person is
     greater than the amount that will be required to pay the probable
     liabilities of such person on its debts as they become absolute and
     matured, (iii) such person is able to realize upon its

                                       19

<PAGE>

     assets and pay its debts and other liabilities, including contingent
     obligations, as they mature and (iv) such person does not have unreasonably
     small capital.

               (eee) The Company and the Guarantors acknowledge and agree that
     (i) the terms of this Agreement and the Offering (including the price of
     the Notes) were negotiated at arm's length between sophisticated parties
     represented by counsel; (ii) no fiduciary, advisory or agency relationship
     between the Company and the Guarantors, on one hand, and the Initial
     Purchasers, on the other, has been created as a result of any of the
     transactions contemplated by this Agreement or the process leading to such
     transactions, irrespective of whether any Initial Purchaser has advised or
     is advising any such party on other matters, (iii) the Initial Purchasers'
     obligations to the Company and the Guarantors in respect of the Offering
     are set forth in this Agreement in their entirety; and (iv) they have
     obtained such legal, tax, and accounting advice as they deem appropriate
     with respect to this Agreement and the transactions contemplated hereby and
     any other activities undertaken in connection therewith, and they are not
     relying on the Initial Purchasers with respect to any such matters.

               (fff) None of the Company or the Subsidiaries has taken or will
     take any action that would cause this Agreement or the issuance or sale of
     the Securities to violate Regulation T, U or X of the Board of Governors of
     the Federal Reserve System, in each case as in effect, or as the same may
     hereafter be in effect, on the Closing Date (and, if any Optional Notes are
     purchased, as of the Additional Closing Date).

               (ggg) The Securities, the Indenture and the Registration Rights
     Agreement conform in all material respects to the descriptions thereof in
     the Time of Sale Memorandum and the Offering Memorandum.

               (hhh) Any certificate signed by an officer of the Company or any
     Guarantor and delivered to the Initial Purchasers or to counsel for the
     Initial Purchasers shall be deemed to be a representation and warranty by
     the Company or such Guarantor to the Initial Purchasers as to the matters
     set forth therein.

          3. Purchase, Sale and Delivery of the Notes.

               (a) On the basis of the representations, warranties, agreements
     and covenants herein contained and subject to the terms and conditions
     herein set forth, each of the Company and the Guarantors agrees to issue
     and sell to the Initial Purchasers, and the Initial Purchasers, severally
     and not jointly, agree to purchase from the Company and the Guarantors, at
     100% of their principal amount, the respective aggregate principal amounts
     of the Firm Notes set forth on Schedule 1 hereto.

               (b) In addition, on the basis of the representations, warranties
     and agreements herein contained, but subject to the terms and conditions
     herein set forth, the Company hereby grants an option to the Initial
     Purchasers, to

                                       20

<PAGE>

     purchase up to $15,000,000 in aggregate principal amount of Optional Notes
     from the Company at the same price as the purchase price to be paid by the
     Initial Purchasers for the Firm Notes, plus accrued interest, if any, from
     the Closing Date to the Additional Closing Date (as hereinafter defined).
     The option granted hereunder may be exercised at any time, on or before the
     13th day following the date of the Offering Memorandum upon notice by the
     Initial Purchasers to the Company, which notice may be given from time to
     time on one or more occasions. Such notice shall set forth (i) the amount
     (which shall be an integral multiple of $1,000 in aggregate principal
     amount at issuance) of Optional Notes as to which the Initial Purchasers
     are exercising the option and (ii) the time, date and place at which such
     Optional Notes will be delivered (which time and date may be simultaneous
     with, but not earlier than, the Closing Date and in such case, the term
     "Closing Date" shall refer to the time and date of delivery of the Firm
     Notes and the Optional Notes). Such time and date of delivery, if
     subsequent to the Closing Date, is called the "Additional Closing Date."
     The Additional Closing Date must be not later than eight full business days
     after the date the Initial Purchasers exercise the option, with the actual
     date determined by the Initial Purchasers. The Initial Purchasers may
     cancel the option at any time prior to its expiration by giving written
     notice of such cancellation to the Company.

               (c) One or more certificates in definitive form for the Firm
     Notes that the Initial Purchasers have agreed to purchase hereunder, and in
     such denomination or denominations and registered in such name or names as
     the Initial Purchasers request upon notice to the Company at least 48 hours
     prior to the Closing Date, shall be delivered by or on behalf of the
     Company, against payment by or on behalf of the Initial Purchasers of the
     purchase price therefor by wire transfer of immediately available funds to
     the account of the Company previously designated by it in writing. Such
     delivery of and payment for the Firm Notes shall be made at the offices of
     Gibson, Dunn & Crutcher LLP, 333 South Grand Avenue, Los Angeles,
     California 90071 (or at such other place as the Initial Purchasers and the
     Company may agree upon), at 9:00 a.m., New York time, on May 22, 2006, or
     at such date as the Initial Purchasers and the Company may agree upon, such
     time and date of delivery against payment being herein referred to as the
     "Closing Date." The Company will make such certificate or certificates for
     the Notes available for inspection by the Initial Purchasers at a location
     in New York, New York as the Initial Purchasers may designate at least 24
     hours prior to the Closing Date.

               (d) Delivery to the Initial Purchasers of and payment for the
     Optional Notes shall be made on the Additional Closing Date in the same
     manner and in the same office and at the same time of days as payment for
     the Firm Notes.

          4. Offering by the Initial Purchasers. The Initial Purchasers propose
to make an offering of the Notes at the price and upon the terms set forth in
the Offering Memorandum as soon as practicable after this Agreement is entered
into and as in the judgment of the Initial Purchasers is advisable.

                                       21

<PAGE>

          5. Certain Covenants. For purposes of this Section 5, "Closing Date"
shall refer to the Closing Date for the Firm Notes and any Additional Closing
Date for the Optional Notes. Each of the Company and the Guarantors covenants
and agrees with the Initial Purchasers that:

               (a) The Company will not amend or supplement the Time of Sale
     Memorandum or the Offering Memorandum or any amendment or supplement
     thereto of which the Initial Purchasers shall not previously have been
     advised and furnished a copy for a reasonable period of time prior to the
     proposed amendment or supplement and as to which the Initial Purchasers
     shall not have given their consent (which consent shall not be unreasonably
     withheld). The Company will promptly, upon the reasonable request of the
     Initial Purchasers or counsel to the Initial Purchasers, make any
     amendments or supplements to the Time of Sale Memorandum or the Offering
     Memorandum that may be reasonably necessary or advisable in connection with
     the resale of the Notes by the Initial Purchasers.

               (b) Each of the Company and the Guarantors will cooperate with
     the Initial Purchasers and counsel for the Initial Purchasers to qualify
     (or to obtain exemptions from qualifying) all or any part of the Notes for
     offering and sale under the securities or "Blue Sky" laws of such
     jurisdictions as the Initial Purchasers may designate and will continue
     such qualifications in effect for as long as may be necessary to complete
     the distribution of the Notes by the Initial Purchasers; provided, however,
     that in connection therewith none of the Company or any of the Guarantors
     shall not be required to qualify as a foreign corporation or to execute a
     general consent to service of process in any jurisdiction or to take any
     other action that would subject it to general service of process or to
     taxation in respect of doing business in any jurisdiction in which it is
     not otherwise subject. The Company will advise the Initial Purchasers
     promptly upon receipt by the Company of any notice of the suspension of the
     qualification of (or any such exemption relating to) the Notes for
     offering, sale or trading in any jurisdiction or any initiation or threat
     of any proceeding for any such purpose, and in the event of the issuance of
     any order suspending such qualification or exemption, each of the Company
     and the Guarantors shall use their reasonable best efforts to obtain the
     withdrawal thereof at the earliest possible moment.

               (c) If, at any time prior to the completion of the resale by the
     Initial Purchasers of the Notes, any event shall occur as a result of which
     it is necessary, in the reasonable judgment of the Company and the Initial
     Purchasers, to amend or supplement the Time of Sale Memorandum or the
     Offering Memorandum in order to make such Time of Sale Memorandum or
     Offering Memorandum not misleading in the light of the circumstances
     existing at the time it is delivered to a purchaser, or if for any other
     reason it shall be necessary to amend or supplement the Time of Sale
     Memorandum or the Offering Memorandum in order to comply with applicable
     laws, rules or regulations, the Company shall (subject to Section 5(a))
     forthwith amend or supplement such Time of Sale Memorandum or Offering
     Memorandum at its own expense so that,

                                       22

<PAGE>

     as so amended or supplemented, such Time of Sale Memorandum or Offering
     Memorandum will not include an untrue statement of a material fact or omit
     to state a material fact necessary in order to make the statements therein,
     in light of the circumstances existing at the time it is delivered to a
     purchaser, not misleading and will comply with all applicable laws, rules
     or regulations.

               (d) The Company will, without charge, provide to the Initial
     Purchasers and to counsel to the Initial Purchasers as many copies of each
     of the Preliminary Offering Memorandum and Offering Memorandum or any
     amendment or supplement thereto as the Initial Purchasers or their counsel
     may reasonably request.

               (e) During the period of five years from the Closing Date, the
     Company will furnish to the Initial Purchasers (i) as soon as available, a
     copy of each report and other communication (financial or otherwise) of the
     Company mailed to the Trustee or the holders of the Notes, stockholders or
     any national securities exchange on which any class of securities of the
     Company may be listed other than materials filed with the Commission and
     (ii) from time to time such other information concerning the Company and
     the Subsidiaries as the Initial Purchasers may reasonably request, provided
     that such other information shall be subject to such confidentiality and
     use restrictions as the Company may reasonably impose.

               (f) The Company will apply the net proceeds from the sale of the
     Notes materially as set forth under "Use of Proceeds" in the Offering
     Memorandum.

               (g) None of the Company or any of its respective affiliates will
     sell, offer for sale or solicit offers to buy or otherwise negotiate in
     respect of any "security" (as defined in the Securities Act) which could be
     integrated with the sale of the Notes in a manner which would require the
     registration under the Securities Act of the Notes.

               (h) For so long as the Notes constitute "restricted" securities
     within the meaning of Rule 144(a)(3) under the Securities Act, the Company
     will not, and will not permit any of the Subsidiaries to, solicit any offer
     to buy or offer to sell the Notes by means of any form of general
     solicitation or general advertising (as those terms are used in Regulation
     D under the Securities Act) or in any manner involving a public offering
     within the meaning of Section 4(2) of the Securities Act.

               (i) If the Time of Sale Memorandum is being used to solicit
     offers to buy the Notes at a time when the Offering Memorandum is not yet
     available to prospective purchasers and any event shall occur or condition
     exist as a result of which it is necessary to amend or supplement the Time
     of Sale Memorandum in order to make the statements therein, in the light of
     the circumstances, not misleading, or if, in the opinion of counsel for the
     Initial

                                       23

<PAGE>

     Purchasers, it is necessary to amend or supplement the Time of Sale
     Memorandum to comply with applicable law, forthwith to prepare and furnish
     to the Initial Purchasers upon request, either amendments or supplements to
     the Time of Sale Memorandum so that the statements in the Time of Sale
     Memorandum as so amended or supplemented will not, in the light of the
     circumstances when delivered to a prospective purchaser, be misleading or
     so that the Time of Sale Memorandum, as amended or supplemented, will
     comply with law.

               (j) For so long as any of the Notes remain outstanding and are
     "restricted securities" within the meaning of Rule 144(a)(3) under the
     Securities Act and not able to be sold in their entirety under Rule 144
     under the Securities Act (or any successor provision), the Company will
     make available, upon request, to any seller of such Notes the information
     specified in Rule 144A(d)(4) under the Securities Act, unless the Company
     is then subject to Section 13 or 15(d) of the Exchange Act.

               (k) During the period from the Closing Date until two years after
     the Closing Date, without the prior written consent of the Initial
     Purchasers, the Company will not, and will not permit any of its
     "affiliates" (as defined in Rule 144 under the Securities Act) to, resell
     any of the Securities which constitute "restricted securities" under Rule
     144 that have been reacquired by any of them.

               (l) The Company will not take any action prohibited by Regulation
     M under the Exchange Act, in connection with the distribution of the
     Securities contemplated hereby.

               (m) The Company will cooperate with the Initial Purchasers and
     use its reasonable best efforts to (i) permit the Notes to be included for
     quotation on the PORTALSM Market and (ii) permit the Notes to be eligible
     for clearance and settlement through The Depository Trust Company.

               (n) The Company will use its reasonable best efforts to list the
     Conversion Shares for quotation on the NYSE, subject only to official
     notice of issuance and evidence of satisfactory distribution.

               (o) The Company will, at all times, reserve and keep available,
     free of preemptive rights, enough shares of Common Stock for the purpose of
     enabling the Company to satisfy its obligations to issue the Conversion
     Shares upon conversion of the Notes.

               (p) During the period of 60 days from the date of the Offering
     Memorandum, without the prior written consent of the Initial Purchasers,
     the Company (i) will not, directly or indirectly, issue, offer, sell, agree
     to issue, offer or sell, solicit offers to purchase, grant any call option,
     warrant or other right to purchase, purchase any put option or other right
     to sell, pledge, borrow or otherwise dispose of any Relevant Security, or
     make any announcement of any of

                                       24

<PAGE>

     the foregoing, (ii) will not establish or increase any "put equivalent
     position" or liquidate or decrease any "call equivalent position" (in each
     case within the meaning of Section 16 of the Exchange Act and the rules and
     regulations promulgated thereunder) with respect to any Relevant Security,
     and (iii) will not otherwise enter into any swap, derivative or other
     transaction or arrangement that transfers to another, in whole or in part,
     any economic consequence of ownership of a Relevant Security, whether or
     not such transaction is to be settled by delivery of Relevant Securities,
     other securities, cash or other consideration, other than the sale of Notes
     as contemplated by this Agreement, the issuance of the Conversion Shares,
     and the Company's issuance of Common Stock upon (i) the conversion or
     exchange of convertible or exchangeable securities outstanding on the date
     hereof; (ii) the exercise of currently outstanding options; (iii) the
     exercise of currently outstanding warrants; and (iv) the grant and exercise
     of options under, or the issuance and sale of shares pursuant to, employee
     stock option plans in effect on the date hereof, each as described in the
     Time of Sale Memorandum. The Company will not file a registration statement
     under the Securities Act in connection with any transaction by the Company
     or any person that is prohibited pursuant to the foregoing, except for (i)
     the Company's filing of registration statements pursuant to the
     Registration Rights Agreement, and (ii) registration statements on Form S-8
     relating to employee benefit plans or on Form S-4 relating to corporate
     reorganizations or other transactions under Rule 145.

               (q) The Company will do and perform all things required to be
     done and performed by them under this Agreement and the other Offering
     Documents prior to or after the Closing Date and will use its reasonable
     best efforts to satisfy all conditions precedent on their part to the
     obligations of the Initial Purchasers to purchase and accept delivery of
     the Notes.

          6. Expenses. Whether or not the Offering is consummated or this
Agreement is terminated (pursuant to Section 12 or otherwise), each of the
Company and the Guarantors, jointly and severally, agrees to pay (or reimburse
the Initial Purchasers for) the following costs and expenses and all other costs
and expenses incident to the performance by the Company of its obligations
hereunder: (a) the preparation, printing, typing, reproduction, execution and
delivery of this Agreement and of the other Offering Documents, any amendment or
supplement to or modification of any of the foregoing and any and all other
documents furnished pursuant hereto or thereto or in connection herewith or
therewith; (b) the preparation, printing or reproduction of each Preliminary
Offering Memorandum, the Offering Memorandum and each amendment or supplement to
any of them; (c) the delivery (including postage, air freight charges and
charges for counting and packaging) of such copies of each Preliminary Offering
Memorandum, the Offering Memorandum and all amendments or supplements to any of
them as may be reasonably requested for use in connection with the offering and
sale of the Notes; (d) the preparation, printing, authentication, issuance and
delivery of certificates for the Notes and the Conversion Shares, including any
stamp taxes in connection with the original issuance and sale of the Securities
and trustees' fees; (e) the reproduction and delivery of this Agreement and the
other Offering Documents, the preliminary and supplemental "Blue Sky" memoranda
and all other agreements or documents reproduced and delivered

                                       25

<PAGE>

in connection with the offering of the Securities; (f) the registration or
qualification of the Securities for offer and sale under the securities or Blue
Sky laws of the several states (including filing fees and the reasonable fees,
expenses and disbursements of counsel to the Initial Purchasers relating to such
registration and qualification); (g) the transportation and other expenses
incurred by or on behalf of Company representatives in connection with
presentations to and related communications with prospective purchasers of the
Notes; (h) the fees and expenses of the Company's and the Guarantors'
accountants and the fees and expenses of counsel (including local and special
counsel, if any) for the Company and the Guarantors; (i) fees and expenses of
the Trustee including fees and expenses of its counsel; (j) all expenses and
listing fees incurred in connection with the application for quotation of the
Notes on the PORTALSM Market; (k) all expenses and listing fees incurred in
connection with the application for listing for quotation of the Conversion
Shares on the NYSE; (l) all expenses incurred in connection with the performance
of the Company's obligations under the Registration Rights Agreement; and (m)
any fees charged by investment rating agencies for the rating of the Notes.

          7. Conditions of the Initial Purchasers' Obligations. For purposes of
this Section 7, "Closing Date" shall refer to the Closing Date for the Firm
Notes and any Additional Closing Date for the Optional Notes. The obligations of
the Initial Purchasers to purchase and pay for the Notes are subject to the
absence from any certificates, opinions, written statements or letters furnished
to the Initial Purchasers pursuant to this Section 7 of any misstatement or
omissions and to the following additional conditions unless waived in writing by
the Initial Purchasers:

               (a) The Initial Purchasers shall have received opinions of
     counsel in form and substance satisfactory to the Initial Purchasers and
     Gibson, Dunn & Crutcher LLP, counsel to the Initial Purchasers, dated the
     Closing Date, of (i) Squire, Sanders & Dempsey LLP, counsel to the Company,
     substantially in the form of Annex I hereto, (ii) Norriss M. Webb, general
     counsel for the Company, substantially in the form of Annex II hereto, and
     (iii) McCarthy Tetrault LLP, Canadian regulatory counsel for the Company,
     substantially in the form of Annex III hereto.

               (b) The Initial Purchasers shall have received an opinion, dated
     the Closing Date, of Gibson, Dunn & Crutcher LLP, counsel to the Initial
     Purchasers, with respect to the sufficiency of certain legal matters
     relating to this Agreement and such other related matters as the Initial
     Purchasers may require.

               (c) The Initial Purchasers shall have received from Deloitte &
     Touche LLP, independent public accountants for the Company, a "comfort"
     letter dated the date hereof and the Closing Date, in form and substance
     reasonably satisfactory to the Initial Purchasers and Gibson, Dunn &
     Crutcher LLP, counsel to the Initial Purchasers.

               (d) The Initial Purchasers shall have received from each of the
     officers and directors listed on Schedule 2 hereto an executed Lock-Up
     Agreement substantially in the form of Exhibit D hereto.

                                       26

<PAGE>

               (e) The representations and warranties of the Company and the
     Guarantors contained in this Agreement shall be true and correct on and as
     of the Closing Date; the Company and the Guarantors shall have complied in
     all material respects with all agreements and satisfied all conditions on
     their part to be performed or satisfied hereunder at or prior to the
     Closing Date.

               (f) None of the issuance and sale of the Securities pursuant to
     this Agreement or any of the transactions contemplated by any of the other
     Offering Documents shall be enjoined (temporarily or permanently) and no
     restraining order or other injunctive order shall have been issued; and
     there shall not have been any legal action, statute, order, decree or other
     administrative proceeding enacted, instituted or, to the knowledge of the
     Company or Initial Purchasers, threatened against the Company or against
     the Initial Purchasers relating to the issuance of the Securities or the
     Initial Purchasers' activities in connection therewith or any other
     transactions contemplated by this Agreement, the Time of Sale Memorandum or
     the Offering Memorandum, or the other Offering Documents.

               (g) Since the date as of which information is given in the Time
     of Sale Memorandum, other than as updated for pricing information or any
     increase in the aggregate principal amount of the Notes and changes
     resulting from any such increase, there shall not have occurred (i) any
     change, or any development involving a prospective change, in or affecting
     the general affairs, management, business, condition (financial or other),
     properties, prospects or results of operations of the Company or any of the
     Subsidiaries, not contemplated by the Time of Sale Memorandum that is, in
     the judgment of the Initial Purchasers, so material and adverse as to make
     it impracticable or inadvisable to proceed with the offering of the
     Securities on the terms and in the manner contemplated by the Offering
     Documents, or (ii) any event or development relating to or involving the
     Company or any of the Subsidiaries, or any of their respective officers or
     directors that makes any statement of a material fact made in the Time of
     Sale Memorandum untrue or that, in the opinion of the Company and its
     counsel or the Initial Purchasers and their counsel, require the making of
     any addition to or change in the Time of Sale Memorandum in order to state
     a material fact required by any applicable law, rule or regulation to be
     stated therein or necessary in order to make the statements made therein,
     in light of the circumstances in which they were made, not misleading.

               (h) The Initial Purchasers shall have received certificates,
     dated the Closing Date and signed by the chief executive officer and the
     chief financial officer of the Company and each of the Guarantors (in their
     capacities as such), to the effect that:

                    (i) All of the representations and warranties of the Company
          and each Guarantor, as applicable, set forth in this Agreement are
          true and correct as if made on and as of the Closing Date and, as of
          the Closing Date all agreements, conditions and obligations of the
          Company and

                                       27

<PAGE>

          each Guarantor, as applicable, to be performed, satisfied or complied
          with hereunder on or prior the Closing Date have been duly performed,
          satisfied or complied with.

                    (ii) The issuance and sale of the Notes pursuant to this
          Agreement, the Time of Sale Memorandum or the Offering Memorandum and
          the consummation of the transactions contemplated by the Offering
          Documents have not been enjoined (temporarily or permanently) and no
          restraining order or other injunctive order has been issued and there
          has not been any legal action, order, decree or other administrative
          proceeding instituted or, to such officers' knowledge, threatened
          against the Company relating to the issuance of the Securities or the
          Initial Purchasers' activities in connection therewith or in
          connection with any other transactions contemplated by this Agreement,
          the Time of Sale Memorandum or the Offering Memorandum or the other
          Offering Documents.

                    (iii) Since the date as of which information is given in the
          Time of Sale Memorandum, other than as updated for pricing information
          or any increase in the aggregate principal amount of the Notes and
          changes resulting from any such increase, there has not occurred (A)
          any Material Adverse Effect with respect to the business, condition
          (financial or other), results of operations, stockholders' equity,
          properties or prospects of the Company and its Subsidiaries, taken as
          a whole, or (B) any event or development relating to or involving the
          Company or any of the Subsidiaries, or any of their respective
          officers or directors that makes any statement of a material fact made
          in the Time of Sale Memorandum untrue or that requires the making of
          any addition to or change in the Time of Sale Memorandum in order to
          state a material fact required by any applicable law, rule or
          regulation to be stated therein or necessary in order to make the
          statements made therein, in light of the circumstances under which
          they were made, not misleading.

                    (iv) At the Closing Date and after giving effect to the
          consummation of the transactions contemplated by the Offering
          Documents, there exists no Default or Event of Default (as defined in
          the Indenture).

               (i) Each of the Offering Documents and each other agreement or
     instrument executed in connection with the transactions contemplated
     thereby shall be reasonably satisfactory in form and substance to the
     Initial Purchasers and shall have been executed and delivered by all the
     respective parties thereto and shall be in full force and effect, and there
     shall have been no material amendments, alterations, modifications or
     waivers of any provision thereof since the date of this Agreement, except
     as agreed to by the Company and the Initial Purchasers.

               (j) All proceedings taken in connection with the issuance of the
     Notes and the transactions contemplated by this Agreement, the other
     Offering Documents and all documents and papers relating thereto shall be
     reasonably

                                       28

<PAGE>

     satisfactory to the Initial Purchasers and counsel to the Initial
     Purchasers. The Initial Purchasers and counsel to the Initial Purchasers
     shall have received copies of such papers and documents as they may
     reasonably request in connection therewith, all in form and substance
     reasonably satisfactory to them.

               (k) The Notes shall have been approved for trading on the
     PORTAL(SM) Market.

               (l) The Conversion Shares shall have been approved for listing on
     the NYSE, subject to official notice of issuance.

               (m) Since the date of this Agreement, there shall not have been
     any announcement by any "nationally recognized statistical rating
     organization," as defined for purposes of Rule 436(g) under the Securities
     Act, that (i) it is downgrading its rating assigned to any debt securities
     of the Company, or (ii) it is reviewing its rating assigned to any debt
     securities of the Company with a view to possible downgrading, or with
     negative implications, or direction not determined.

               (n) On or before the Closing Date, the Initial Purchasers shall
     have received the Registration Rights Agreement executed by the Company and
     the Guarantors and such agreement shall be in full force and effect.

               (o) The Company and the Guarantors shall have furnished or caused
     to be furnished to the Initial Purchasers such further certificates and
     documents as the Initial Purchasers shall have reasonably requested.

               (p) At the Closing Date, the Company, the Guarantors and the
     Trustee shall have entered into the Indenture and the Initial Purchasers
     shall have received counterparts, conformed as executed, thereof and the
     Notes shall have been duly executed and delivered by the Company and duly
     authenticated by the Trustee.

          All such opinions, certificates, letters, schedules, documents or
instruments delivered pursuant to this Agreement will comply with the provisions
hereof only if they are reasonably satisfactory in all material respects to the
Initial Purchasers and counsel to the Initial Purchasers. The Company shall
furnish to the Initial Purchasers such conformed copies of such opinions,
certificates, letters, schedules, documents and instruments in such quantities
as the Initial Purchasers shall reasonably request.

          8. Indemnification.

               (a) The Company and the Guarantors, jointly and severally, shall
     indemnify and hold harmless (i) each Initial Purchaser, (ii) each person,
     if any, who controls an Initial Purchaser within the meaning of Section 15
     of the Securities Act or Section 20 of the Exchange Act and (iii) the
     respective officers, directors, partners, and employees of each of the
     Initial Purchasers or any controlling person, from and against any and all
     losses, liabilities, claims, damages and expenses whatsoever as incurred
     (including but not limited to

                                       29

<PAGE>

     reasonable attorneys' fees and any and all expenses whatsoever incurred in
     investigating, preparing or defending against any investigation or
     litigation, commenced or threatened, or any claim whatsoever, and any and
     all amounts paid in settlement of any claim or litigation), joint or
     several, to which they or any of them may become subject under the
     Securities Act, the Exchange Act or otherwise, insofar as such losses,
     liabilities, claims, damages or expenses (or actions in respect thereof)
     arise out of or are based upon (i) any untrue statement or alleged untrue
     statement of a material fact contained in (A) the Time of Sale Memorandum
     or the Offering Memorandum, or in any supplement thereto or amendment
     thereof, or (B) any materials or information provided to investors by, or
     with the approval of, the Company in connection with the marketing of the
     Securities, including any road show or investor presentations made to
     investors by the Company (whether in person or electronically) ("Marketing
     Materials") but only if such Marketing Materials are provided to investors
     together with the Time of Sale Memorandum or the Offering Memorandum, or
     (ii) the omission or alleged omission to state in the Time of Sale
     Memorandum or the Offering Memorandum, or in any supplement thereto or
     amendment thereof, or in any Marketing Materials, a material fact required
     to be stated therein or necessary to make the statements therein, in light
     of the circumstances under which they were made, not misleading; provided,
     however, that neither the Company nor any Guarantor will be liable in any
     such case to the extent, but only to the extent, that any such loss,
     liability, claim, damage or expense arises out of or is based upon any such
     untrue statement or alleged untrue statement or omission or alleged
     omission made therein in reliance upon and in conformity with written
     information furnished to the Company and the Guarantors by or on behalf of
     the Initial Purchasers expressly for use therein. The parties acknowledge
     and agree that such information provided by or on behalf of the Initial
     Purchasers consists solely of the material identified in Section 16 hereof.
     This indemnity agreement will be in addition to any liability that the
     Company and the Guarantors may otherwise have, including under this
     Agreement.

               (b) Each Initial Purchaser, severally and not jointly, shall
     indemnify and hold harmless (i) the Company, (ii) each person, if any, who
     controls the Company or any of the Guarantors within the meaning of Section
     15 of the Securities Act or Section 20 of the Exchange Act, and (iii) the
     officers, directors, partners, and employees of the Company, the Guarantors
     or any controlling person, against any losses, liabilities, claims, damages
     and expenses whatsoever as incurred (including but not limited to
     attorneys' fees and any and all expenses whatsoever incurred in
     investigating, preparing or defending against any investigation or
     litigation, commenced or threatened, or any claim whatsoever and any and
     all amounts paid in settlement of any claim or litigation), joint or
     several, to which they or any of them may become subject under the
     Securities Act, the Exchange Act or otherwise, insofar as such losses,
     liabilities, claims, damages or expenses (or actions in respect thereof)
     arise out of or are based upon any untrue statement or alleged untrue
     statement of a material fact contained in the Time of Sale Memorandum or
     the Offering Memorandum, or in any amendment thereof or supplement thereto,
     or arise out of or are based upon the

                                       30
<PAGE>

     omission or alleged omission to state therein a material fact required to
     be stated therein or necessary to make the statements therein not
     misleading, in each case to the extent, but only to the extent, that any
     such loss, liability, claim, damage or expense arises out of or is based
     upon any untrue statement or alleged untrue statement or omission or
     alleged omission made therein in reliance upon and in conformity with
     written information furnished to the Company and the Guarantors by or on
     behalf of such Initial Purchaser expressly for use therein; provided,
     however, that in no case shall any Initial Purchaser be liable or
     responsible for any amount in excess of the discounts and commissions
     received by such Initial Purchaser. The parties acknowledge and agree that
     such information provided by or on behalf of the Initial Purchasers
     consists solely of the material identified in Section 16 hereof. This
     indemnity will be in addition to any liability that the Initial Purchasers
     may otherwise have, including under this Agreement.

               (c) Promptly after receipt by an indemnified party under
     subsection (a) or (b) above of notice of any claims or the commencement of
     any action, such indemnified party shall, if a claim in respect thereof is
     to be made against the indemnifying party under such subsection, notify
     each party against whom indemnification is to be sought in writing of the
     commencement thereof (but the failure so to notify an indemnifying party
     shall not relieve it from any liability which it may have under this
     Section 8 to the extent that it is not materially prejudiced through the
     forfeiture of substantive rights or defenses as a result thereof and in any
     event shall not relieve it from any liability that such indemnifying party
     may have otherwise than on account of the indemnity agreement hereunder).
     In case any such claim or action is made or brought against any indemnified
     party, and it notifies an indemnifying party of the commencement thereof,
     the indemnifying party will be entitled to participate, at its own expense
     in the defense of such action, and to the extent it may elect by written
     notice delivered to the indemnified party promptly after receiving the
     aforesaid notice from such indemnified party, to assume the defense thereof
     with counsel reasonably satisfactory to such indemnified party; provided,
     however, that counsel to the indemnifying party shall not (except with the
     written consent of the indemnified party) also be counsel to the
     indemnified party. Notwithstanding the foregoing, the indemnified party or
     parties shall have the right to employ its or their own counsel in any such
     case, but the fees and expenses of such counsel shall be at the expense of
     such indemnified party or parties unless (i) the employment of such counsel
     shall have been authorized in writing by one of the indemnifying parties in
     connection with the defense of such action, (ii) the indemnifying parties
     shall not have employed counsel to take charge of the defense of such
     action within a reasonable time after notice of commencement of the action,
     (iii) the indemnifying party does not diligently defend the action after
     assumption of the defense, or (iv) such indemnified party or parties shall
     have reasonably concluded that there may be defenses available to it or
     them which are different from or additional to those available to one or
     all of the indemnifying parties (in which case the indemnifying party or
     parties shall not have the right to direct the defense of such action on
     behalf of the indemnified party or parties), in

                                       31

<PAGE>

     any of which events such fees and expenses of counsel shall be borne by the
     indemnifying parties. No indemnifying party shall, without the prior
     written consent of the indemnified parties, effect any settlement or
     compromise of, or consent to the entry of judgment with respect to, any
     pending or threatened claim, investigation, action or proceeding in respect
     of which indemnity or contribution may be or could have been sought by an
     indemnified party under this Section 8 or Section 9 hereof (whether or not
     the indemnified party is an actual or potential party thereto), unless (x)
     such settlement, compromise or judgment (A) includes an unconditional
     release of the indemnified party from all liability arising out of such
     claim, investigation, action or proceeding and (B) does not include a
     statement as to or an admission of fault, culpability or any failure to
     act, by or on behalf of the indemnified party, and (y) the indemnifying
     party confirms in writing its indemnification obligations hereunder with
     respect to such settlement, compromise or judgment.

          9. Contribution. In order to provide for contribution in circumstances
in which the indemnification provided for in Section 8 is for any reason held to
be unavailable from an indemnifying party or is insufficient to hold harmless a
party indemnified thereunder, the Company and the Guarantors, on the one hand,
and the Initial Purchasers, on the other hand, shall contribute to the aggregate
losses, liabilities, claims, damages and expenses of the nature contemplated by
such indemnification provision (including any investigation, legal and other
expenses incurred in connection with, and any amount paid in settlement of, any
action, suit or proceeding or any claims asserted, but after deducting in the
case of losses, liabilities, claims, damages and expenses suffered by the
Company or any Guarantor, any contribution received by the Company and the
Guarantors from persons, other than the Initial Purchasers, who may also be
liable for contribution, including persons who control the Company or any of the
Guarantors within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) to which the Company, the Guarantors and the Initial
Purchasers may be subject, in such proportion as is appropriate to reflect the
relative benefits received by the Company and the Guarantors, on the one hand,
and the Initial Purchasers, on the other hand, from the offering of the Notes
or, if such allocation is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative benefits referred to above but
also the relative fault of the Company and the Guarantors, on the one hand, and
the Initial Purchasers, on the other hand, in connection with the statements or
omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations. The relative
benefits received by the Company and the Guarantors, on the one hand, and the
Initial Purchasers, on the other hand, shall be deemed to be in the same
proportion as (i) the total proceeds from the offering of the Notes (net of
discounts and commissions but before deducting expenses) received by the Company
and the Guarantors bear to (ii) the discounts and commissions received by the
Initial Purchasers, respectively. The relative fault of the Company and the
Guarantors, on the one hand, and of the Initial Purchasers, on the other hand,
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Company or any
Guarantor or the Initial Purchasers and the parties' relative intent, knowledge,
access to information and opportunity to

                                       32

<PAGE>

correct or prevent such statement or omission. The Company, the Guarantors and
the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section 9 were determined by pro rata allocation
(even if the Initial Purchasers were treated as one entity for such purpose) or
by any other method of allocation which does not take into account the equitable
considerations referred to above. The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to
above in this Section 9 shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any
judicial, regulatory or other legal or governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission. Notwithstanding the provisions of
this Section 9, (i) in no case shall any Initial Purchaser be required to
contribute any amount in excess of the amount by which the discounts and
commissions applicable to the Notes purchased by such Initial Purchaser pursuant
to this Agreement exceeds the amount of any damages which such Initial Purchaser
has otherwise been required to pay by reason of any untrue or alleged untrue
statement or omission or alleged omission and (ii) no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this Section 9, (A)
each person, if any, who controls any Initial Purchaser within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act and (B) the
respective officers, directors, partners, employees, representatives and agents
of any Initial Purchaser or any controlling person shall have the same rights to
contribution as such Initial Purchaser, and (1) each person, if any, who
controls the Company or any Guarantor within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act and (2) the officers,
directors, employees, representatives and agents of the Company and the
Guarantors shall have the same rights to contribution as the Company and the
Guarantors, as applicable, subject in each case to clauses (i) and (ii) of this
Section 9. Any party entitled to contribution will, promptly after receipt of
notice of commencement of any action, suit or proceeding against such party in
respect of which a claim for contribution may be made against another party or
parties under this Section 9, notify such party or parties from whom
contribution may be sought, but the failure to so notify such party or parties
shall not relieve the party or parties from whom contribution may be sought from
any obligation it or they may have under this Section 9 or otherwise. No party
shall be liable for contribution with respect to any action or claim settled
without its prior written consent, provided that such written consent was not
unreasonably withheld. The Initial Purchasers' obligations to contribute
pursuant to this Section 9 are several in proportion to the respective principal
amount of the Notes purchased by each of the Initial Purchasers hereunder and
not joint.

          10. Offering of Securities; Restrictions on Transfer. Each Initial
Purchaser represents and warrants that it is a QIB. Each Initial Purchaser
agrees with the Company as to itself only that (i) is not acquiring the Notes
with a view to any distribution thereof that would violate the Securities Act or
the securities laws of any state of the United States or any other applicable
jurisdiction, (ii) it has not and will not solicit offers for, or offer or sell,
the Securities by any form of general solicitation or

                                       33

<PAGE>

general advertising (as those terms are used in Regulation D under the
Securities Act) or in any manner involving a public offering within the meaning
of Section 4(2) of the Securities Act; (iii) it has and will solicit offers for
the Securities only from, and will offer the Securities only to, persons within
the United States whom such Initial Purchaser reasonably believe to be QIBs (or,
if any such person is buying for one or more institutional accounts for which
such person is acting as fiduciary or agent, only when such person has
represented to such Initial Purchaser that each such account is a QIB), to whom
notice has been given that such sale or delivery is being made in reliance on
Rule 144A and, in each case, in transactions under Rule 144A, and (iv) it has
not distributed, and prior to the later of the Closing Date (and, if any
Optional Notes are purchased, the Additional Closing Date) or completion of the
distribution of the Notes, will not distribute any free writing prospectus, as
defined in the Securities Act, in connection with the offering and sale of the
Notes other than the Time of Sale Memorandum and the Offering Memorandum. The
Initial Purchasers acknowledge that the Securities will be subject to
restrictions on transfer as described in the Time of Sale Memorandum.

          11. Survival Clause. The respective representations, warranties,
agreements, covenants, indemnities and other statements of the Company, the
Guarantors, their respective officers and the Initial Purchasers set forth in
this Agreement or made by or on behalf of them, respectively, pursuant to this
Agreement shall remain in full force and effect, regardless of (a) any
investigation made by or on behalf of the Company, any Guarantor, any of their
officers or directors, the Initial Purchasers or any controlling person referred
to in Sections 8 and 9 hereof and (b) delivery of and payment for the Notes, and
shall be binding upon and shall inure to the benefit of, any successors,
assigns, heirs, personal representatives of the Company, the Guarantors, the
Initial Purchasers and indemnified parties referred to in Section 8 hereof. The
respective agreements, covenants, indemnities and other statements set forth in
Sections 6, 8, 9, 11 and 12 hereof shall remain in full force and effect,
regardless of any termination or cancellation of this Agreement.

          12. Termination. (a) This Agreement may be terminated in the sole
discretion of the Initial Purchasers by notice to the Company given in the event
that the Company or any Guarantor has failed, refused or been unable to satisfy
all conditions on its respective part to be performed or satisfied hereunder on
or prior to the Closing Date or if, at or prior to the Closing Date or at or
prior to the Additional Closing Date, as the case may be:

                    (i) any domestic or international event or act or occurrence
          has materially disrupted, or in the opinion of the Initial Purchasers
          will in the immediate future materially disrupt, the market for the
          Company's securities or securities in general;

                    (ii) trading on the NYSE shall have been suspended or made
          subject to material limitations, or minimum or maximum prices for
          trading shall have been fixed, or maximum ranges for prices for
          securities

                                       34

<PAGE>

          shall have been required, on the NYSE, or by order of the Commission
          or other regulatory body or governmental authority having
          jurisdiction;

                    (iii) a banking moratorium has been declared by any state or
          federal authority or if any material disruption in commercial banking
          or securities settlement or clearance services shall have occurred;

                    (iv) (A) there shall have occurred any outbreak or
          escalation of hostilities or acts of terrorism involving the United
          States or there is a declaration of a national emergency or war by the
          United States, or (B) there shall have been any other calamity or
          crisis or any change in political, financial or economic conditions if
          the effect of any such event in (A) or (B), in the judgment of the
          Initial Purchasers, makes it impracticable or inadvisable to proceed
          with the offering, sale and delivery of the Notes or the Optional
          Notes, as the case may be, on the terms and in the manner contemplated
          by the Offering Memorandum; or

                    (v) any debt securities of the Company shall have been
          downgraded or placed on any "watch list" for possible downgrading by
          any "nationally recognized statistical rating organization" as defined
          for purposes of Rule 436(g) under the Securities Act.

               (b) Subject to paragraph (c) below, termination of this Agreement
     pursuant to this Section 12 shall be without liability of any party to any
     other party except as provided in Section 11 hereof.

               (c) If this Agreement shall be terminated pursuant to any of the
     provisions hereof (other than a failure or refusal by the Initial
     Purchasers to purchase Notes, pursuant to Section 18 hereof), or if the
     sale of the Notes provided for herein is not consummated because any
     condition to the obligations of the Initial Purchasers set forth herein is
     not satisfied or because of any refusal, inability or failure on the part
     of the Company to perform any agreement herein or comply with any provision
     hereof, the Company will, subject to demand by the Initial Purchasers,
     reimburse the Initial Purchasers for all out-of-pocket expenses (including
     the reasonable fees and expenses of their counsel), incurred by the Initial
     Purchasers in connection herewith.

          13. Notices. All communications hereunder shall be in writing and, if
sent to the Initial Purchasers, shall be hand delivered, mailed by first-class
mail, couriered by next-day air courier or telecopied and confirmed in writing
to the Initial Purchasers c/o Bear, Stearns & Co. Inc., 383 Madison Avenue, New
York, New York 10179, Attention: Stephen Parish, Equity Capital Markets, and
with a copy to Gibson, Dunn & Crutcher LLP, 333 South Grand Avenue, Los Angeles,
California 90071, Attention: Karen E. Bertero. If sent to the Company or the
Guarantors, shall be hand delivered, mailed by first-class mail, couriered by
next-day air courier or telecopied and confirmed in writing, to the Company at
One Centerpointe Drive, Suite 200, Lake Oswego, Oregon 97035, Attention: Joseph
K. Wilsted, and with a copy to Squire, Sanders & Dempsey L.L.P.,

                                       35

<PAGE>

1300 Huntington Center, 41 South High Street, Columbus, Ohio 43215, Attention:
Steven F. Mount.

          14. Successors. This Agreement shall inure to the benefit of and be
binding upon each Initial Purchaser, the Company and each Guarantor and their
respective successors and legal representatives, and nothing expressed or
mentioned in this Agreement is intended or shall be construed to give any other
person any legal or equitable right, remedy or claim under or in respect of this
Agreement, or any provisions herein contained; this Agreement and all conditions
and provisions hereof being intended to be and being for the sole and exclusive
benefit of such persons and for the benefit of no other person except that (i)
the indemnities of the Company and the Guarantors contained in Section 8 of this
Agreement shall also be for the benefit of any person or persons who control the
Initial Purchasers within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act and (ii) the indemnities of the Initial
Purchasers contained in Section 8 of this Agreement shall also be for the
benefit of the directors of the Company and the Guarantors, their respective
officers, employees and agents and any person or persons who controls the
Company or any of the Guarantors within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act. No purchaser of Notes from the
Initial Purchasers will be deemed a successor because of such purchase.

          15. No Waiver; Modifications in Writing. No failure or delay on the
part of the Company, any Guarantor or any Initial Purchaser in exercising any
right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy. The remedies provided for herein are cumulative and are not exclusive of
any remedies that may be available to the Company, any Guarantor or any Initial
Purchaser at law or in equity or otherwise. No waiver of or consent to any
departure by the Company, any Guarantor or any Initial Purchaser from any
provision of this Agreement shall be effective unless signed in writing by the
party entitled to the benefit thereof; provided that notice of any such waiver
shall be given to each party hereto as set forth above. Except as otherwise
provided herein, no amendment, modification or termination of any provision of
this Agreement shall be effective unless signed in writing by or on behalf of
the Company, each Guarantor and each Initial Purchaser. Any amendment,
supplement or modification of or to any provision of this Agreement, any waiver
of any provision of this Agreement, and any consent to any departure by the
Company, the Guarantors or the Initial Purchasers from the terms of any
provision of this Agreement shall be effective only in the specific instance and
for the specific purpose for which made or given. Except where notice is
specifically required by this Agreement, no notice to or demand on the Company
in any case shall entitle the Company to any other or further notice or demand
in similar or other circumstances.

          16. Information Supplied by the Initial Purchasers. The statements set
forth in the (i) first sentence of the third paragraph, (ii) second sentence of
the fifth paragraph, (iii) second and third sentences of the eleventh paragraph,
and (iv) thirteenth and fourteenth paragraphs under the heading "Plan of
Distribution" constitute the only

                                       36

<PAGE>

information furnished by the Initial Purchasers to the Company for purposes of
Sections 2(a), 8(a) and 8(b) hereof.

          17. APPLICABLE LAW. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT,
AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO
ANY PROVISIONS RELATING TO CONFLICTS OF LAW.

          18. Default of One or More of the Initial Purchasers. If any one or
more of the Initial Purchasers shall fail or refuse to purchase Notes that it or
they have agreed to purchase hereunder on the Closing Date, and the aggregate
number of Notes which such defaulting Initial Purchaser or Initial Purchasers
agreed but failed or refused to purchase does not exceed 10% of the aggregate
number of the Notes to be purchased on such date, the other Initial Purchasers
shall be obligated, severally, in the proportions that the number of Notes set
forth opposite their respective names on Schedule 1 bears to the aggregate
number of Notes set forth opposite the names of all such non-defaulting Initial
Purchasers, or in such other proportions as may be specified by the Initial
Purchasers with the consent of the non-defaulting Initial Purchasers, to
purchase the Notes which such defaulting Initial Purchaser or Initial Purchasers
agreed but failed or refused to purchase on the Closing Date. If any one or more
of the Initial Purchasers shall fail or refuse to purchase Notes and the
aggregate number of Notes with respect to which such default occurs exceeds 10%
of the aggregate number of Notes to be purchased on the Closing Date, and
arrangements satisfactory to the Initial Purchasers and the Company for the
purchase of such Notes are not made within 48 hours after such default, this
Agreement shall terminate without liability of any party to any other party
except that the provisions of Sections 6, 8 and 9 hereof shall at all times be
effective and shall survive such termination. In any such case either the
Initial Purchasers or the Company shall have the right to postpone the Closing
Date, as the case may be, but in no event for longer than seven days in order
that the required changes, if any, to the Offering Memorandum or any other
documents or arrangements may be effected.

          As used in this Agreement, the term "Initial Purchaser" shall be
deemed to include any person substituted for a defaulting Initial Purchaser
under this Section 18. Any action taken under this Section 18 shall not relieve
the Initial Purchasers from liability in respect of any default of such Initial
Purchasers under this Agreement.

          19. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                            [SIGNATURE PAGES FOLLOW]

                                       37

<PAGE>

          If the foregoing correctly sets forth our understanding, please
indicate your acceptance thereof in the space provided below for that purpose,
whereupon this letter shall constitute a binding agreement among the Company,
the Guarantors and the Initial Purchasers.

                                        Very truly yours,

                                        THE GREENBRIER COMPANIES, INC.

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Senior Vice President

                                        GREENBRIER-CONCARRIL, LLC

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

                                        GREENBRIER LEASING COMPANY LLC

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

                                        GREENBRIER LEASING LIMITED PARTNER, LLC

                                        BY: GREENBRIER LEASING COMPANY LLC,
                                            SOLE MEMBER AND MANAGER

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

<PAGE>

                                        GREENBRIER MANAGEMENT SERVICES, LLC

                                        BY: GREENBRIER LEASING COMPANY LLC,
                                            SOLE MEMBER AND MANAGER

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

                                        GREENBRIER LEASING, L.P.

                                        BY: GREENBRIER LEASING COMPANY LLC,
                                            SOLE MEMBER AND MANAGER

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

                                        GUNDERSON LLC

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

                                        GUNDERSON MARINE LLC

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

                                        GUNDERSON RAIL SERVICES LLC

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

<PAGE>

                                        GUNDERSON SPECIALTY PRODUCTS, LLC

                                        BY: GUNDERSON LLC,
                                            SOLE MEMBER AND MANAGER

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

                                        AUTOSTACK COMPANY LLC

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

                                        GREENBRIER RAILCAR LLC

                                        By: /s/ Joseph K. Wilsted
                                            ------------------------------------
                                        Name: Joseph K. Wilsted
                                        Title: Vice President

<PAGE>

The foregoing Agreement is hereby confirmed and accepted as of the date first
above written.

BEAR, STEARNS & CO. INC.

By: /s/ Paul S. Rosica
    ---------------------------------
Name: Paul S. Rosica
Title: Senior Managing Director

BANC OF AMERICA SECURITIES LLC

By: /s/ Derek Dillon
    ---------------------------------
Name: Derek Dillon
Title: Managing Director
<PAGE>

                                                                      Schedule 1

<TABLE>
<CAPTION>
                                                            Principal Amount
Initial Purchasers                                              of Notes
------------------                                          ----------------
<S>                                                         <C>
Bear, Stearns & Co. Inc. ................................      $55,250,000
Banc of America Securities LLC ..........................      $29,750,000
                                                               -----------
   Total ................................................      $85,000,000
                                                               ===========
</TABLE>

<PAGE>

                                                                      Schedule 2

                             DIRECTORS AND OFFICERS

<TABLE>
<CAPTION>
Name                  Position
----                  --------
<S>                   <C>
William A. Furman     President, Chief Executive Officer and Director

Robin D. Bisson       Senior Vice President Marketing and Sales and President of
                      Greenbrier Railcar LLC

Linda M. Olinger      Vice President and Corporate Controller

Mark J. Rittenbaum    Senior Vice President and Treasurer

James T. Sharp        President of Greenbrier Leasing Company LLC

Timothy A. Stuckey    President of Gunderson Rail Services LLC

Norriss M. Webb       Executive Vice President and General Counsel

Joseph K. Wilsted     Senior Vice President and Chief Financial Officer

L. Clark Wood         President of Manufacturing Operations

Victor G. Atiyeh      Director

Duane C. McDougall    Director

A. Daniel O'Neal      Director

Charles J. Swindells  Director

C. Bruce Ward         Director

Donald A. Washburn    Director

Benjamin R. Whiteley  Chairman of the Board of Directors
</TABLE>

<PAGE>

                                                                       Exhibit A

                                  Subsidiaries

3048389 Nova Scotia Limited
Alliance Castings Company, LLC
Autostack Company LLC
Chicago Castings Company, LLC
Greenbrier-Concarril, LLC
Greenbrier Europe B.V.
Greenbrier Germany GmbH
Greenbrier Leasing Company LLC
Greenbrier Leasing, L.P.
Greenbrier Leasing Limited
Greenbrier Leasing Limited Partner, LLC
Greenbrier Management Services, LLC
Greenbrier Railcar LLC
Greenbrier U.K. Limited
Gunderson LLC
Gunderson-Concarril, S.A. de C.V.
Gunderson Marine LLC
Gunderson Rail Services LLC
Gunderson Specialty Products, LLC
Ohio Castings Company, LLC
TrentonWorks Limited
WagonySwidnica S.A.

<PAGE>

                                                                       Exhibit B

<TABLE>
<S>                             <C>
Ohio Castings Company, LLC      Gunderson Specialty Products, LLC owns 33 1/3%
                                of the entity.

Alliance Castings Company, LLC  Ohio Castings Company, LLC owns 100% of this
                                entity.

Chicago Castings Company, LLC   Ohio Castings Company, LLC owns 100% of this
                                entity.

WagonySwidnica S.A.             Greenbrier Europe B.V. owns 98.56% of this
                                entity.
</TABLE>

<PAGE>

                                                                       Exhibit C

                               COMPANY STATEMENTS

1.   "Although no formal statistics are available for the European market, we
     believe we are the second largest new freight car manufacturer with an
     estimated 20% market share."

2.   "...we believe we also hold a leading market position in the manufacturing
     of railcars in Europe."

3.   "We believe we operate one of the largest repair and refurbishment networks
     in North America..."

<PAGE>

                                                                       Exhibit D

                            Form of Lock-Up Agreement

                                  May 17, 2006

Bear, Stearns & Co. Inc.
Banc of America Securities LLC
c/o Bear, Stearns & Co. Inc.
383 Madison Avenue
New York, New York 10179
Attention: Equity Capital Markets

                The Greenbrier Companies, Inc. Lock-Up Agreement

Ladies and Gentlemen:

     This letter agreement (this "Agreement") relates to the proposed offering
(the "Offering") by The Greenbrier Companies, Inc., an Oregon corporation (the
"Company"), of its 2.375% Convertible Senior Notes due 2026 (the "Notes") in an
aggregate principal amount of up to $100 million (including the Initial
Purchasers' over-allotment option).

     In order to induce you (the "Initial Purchasers") to purchase Notes in the
Offering, the undersigned hereby agrees that, without the prior written consent
of Bear, Stearns & Co. Inc. ("Bear Stearns"), during the period from the date
hereof until sixty (60) days from the date of the final offering memorandum for
the Offering (the "Lock-Up Period"), the undersigned (a) will not, directly or
indirectly, offer, sell, agree to offer or sell, solicit offers to purchase,
grant any call option or purchase any put option with respect to, pledge, borrow
or otherwise dispose of any Relevant Security (as defined below), and (b) will
not establish or increase any "put equivalent position" or liquidate or decrease
any "call equivalent position" with respect to any Relevant Security (in each
case within the meaning of Section 16 of the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder), or otherwise
enter into any swap, derivative or other transaction or arrangement that
transfers to another, in whole or in part, any economic consequence of ownership
of a Relevant Security, whether or not such transaction is to be settled by
delivery of Relevant Securities, other securities, cash or other consideration;
provided, however, that the foregoing restrictions shall not preclude or
otherwise limit (i) the transfer to the Company of common stock of the Company,
no par value ("Common Stock"), in connection with the exercise of outstanding
options to purchase that are scheduled to expire during the 60-day period solely
to pay the option exercise price or any taxes required to be withheld by the
Company to the extent such transfer is permitted to satisfy such obligations
pursuant to the Company's equity compensation plans or the agreements pursuant
to which such options were granted (but not the sale or other disposition of
shares of Common Stock

<PAGE>

issued in respect of such exercise) or (ii) a bona fide gift of Common Stock
approved by Bear Stearns so long as the recipient of such Common Stock agrees in
writing to be bound by the restrictions of this Lock-Up Letter Agreement;
provided as to (ii) above, each resulting transferee of Relevant Securities
executes and delivers to you an agreement satisfactory to you certifying that
such transferee is bound by the terms of this Agreement and has been in
compliance with the terms hereof since the date first above written as if it had
been an original party hereto. As used herein "Relevant Security" means the
Common Stock, any other equity security of the Company or any of its
subsidiaries and any security convertible into, or exercisable or exchangeable
for, any Common Stock or other such equity security.

     The undersigned hereby authorizes the Company during the Lock-Up Period to
cause any transfer agent for the Relevant Securities to decline to transfer, and
to note stop transfer restrictions on the stock register and other records
relating to, Relevant Securities for which the undersigned is the record holder
and, in the case of Relevant Securities for which the undersigned is the
beneficial but not the record holder, agrees during the Lock-Up Period to cause
the record holder to cause the relevant transfer agent to decline to transfer,
and to note stop transfer restrictions on the stock register and other records
relating to, such Relevant Securities. The undersigned hereby further agrees
that, without the prior written consent of Bear Stearns, during the Lock-up
Period the undersigned (x) will not file or participate in the filing with the
Securities and Exchange Commission of any registration statement, or circulate
or participate in the circulation of any preliminary or final prospectus or
other disclosure document with respect to any proposed offering or sale of a
Relevant Security and (y) will not exercise any rights the undersigned may have
to require registration with the Securities and Exchange Commission of any
proposed offering or sale of a Relevant Security.

     If:

          (1) during the period that begins on the date that is 15 calendar days
     plus three business days before the last day of the Lock-Up Period and ends
     on the last day of the Lock-Up Period, the Company issues a earnings
     release or material news or a material event relating to the Company
     occurs; or

          (2) prior to the expiration of the Lock-Up Period, the Company
     announces that it will release earnings results during the 16-day period
     beginning on the last day of the Lock-Up Period,

the restrictions imposed by this Agreement shall continue to apply until the
expiration of the date that is 15 calendar days plus three business days after
the date on which the issuance of the earnings release or the material news or
material event occurs; provided, however, this paragraph will not apply if,
within three days of the termination of the Lock-Up Period, the Company delivers
to Bear Stearns a certificate, signed by the Chief Financial Officer or Chief
Executive Officer of the Company, certifying on behalf of the Company that the
Company's shares of Common Stock are, as of the date of delivery of

<PAGE>

such certificate, "actively traded securities," as defined in Regulation M, 17
CFR 242.101(c)(1).

     The undersigned hereby represents and warrants that the undersigned has
full power and authority to enter into this Agreement and that this Agreement
constitutes the legal, valid and binding obligation of the undersigned,
enforceable in accordance with its terms. Upon request, the undersigned will
execute any additional documents necessary in connection with enforcement
hereof. Any obligations of the undersigned shall be binding upon the successors
and assigns of the undersigned from the date first above written.

     This Agreement shall be governed by and construed in accordance with the
laws of the State of New York. Delivery of a signed copy of this letter by
facsimile transmission shall be effective as delivery of the original hereof.

                                        Very truly yours,

                                        By:
                                            ------------------------------------
                                        Print Name:
                                                    ----------------------------
<PAGE>

                                                                       Exhibit E

                         (THE GREENBRIER COMPANIES LOGO)

                              SUMMARY PRICING SHEET

<TABLE>
<S>                                    <C>
ISSUER:                                The Greenbrier Companies, Inc.

SECURITY TYPE:                         Convertible Senior Notes

FORM OF OFFERING:                      Rule 144A with Registration Rights

INITIAL PROCEEDS:                      $85.0 million Aggregate Principal Amount

INITIAL PURCHASER'S OPTION:            $15.0 million Aggregate Principal Amount

OFFER PRICE:                           100.0% of Par

MATURITY:                              May 15, 2026

RANKING:                               Senior Unsecured

SUBSIDIARY GUARANTEES:                 Guaranteed on a senior unsecured basis by
                                       existing and future restricted material
                                       domestic subsidiaries

COUPON:                                2.375% of Par per Note

FIRST COUPON PAYMENT DATE:             November 15, 2006

PRINCIPAL AMOUNT PER NOTE:             $1,000.00

CONVERSION PREMIUM:                    30.00%

LAST SALE PRICE (MAY 16, 2006):        $36.96

INITIAL CONVERSION PRICE:              $48.05

CONVERSION RATE PER NOTE:              20.8125 Shares Per Note

CONVERSION RIGHTS:                     -    During any calendar quarter after
                                            June 30, 2006 subject to 130%
                                            Conversion Trigger ($62.46)

                                       -    If the average trading price of the
                                            Notes is less than 98% of conversion
                                            value

                                       -    On or after May 15, 2021;

                                       -    If the Notes are called for
                                            redemption;

                                       -    Upon the occurrence of specified
                                            corporate transactions

OPTIONAL REDEMPTION:                   After May 15, 2013

PURCHASE OF NOTES AT HOLDER'S OPTION:  May 15, 2013, 2016 and 2021 at 100% of
                                       Principal Amount

CONTINGENT INTEREST:                   0.375%, payable after May 15, 2013 if the
                                       trading price of the Notes exceeds 120%
                                       of par

FUNDAMENTAL CHANGE PROTECTION:         Adjustment for Conversion Upon Certain
                                       Corporate Transactions

DIVIDEND PROTECTION:                   Conversion rate adjustment for quarterly
                                       common stock dividends paid above $0.08.

JOINT-BOOKRUNNERS:                     Bear, Stearns & Co. Inc., Banc of America
                                       Securities LLC

GROSS SPREAD (%):                      3.000%

GROSS SPREAD PER NOTE:                 $30.00

TRADE DATE:                            May 17, 2006

SETTLEMENT DATE:                       May 22, 2006

NYSE STOCK TICKER:                     "GBX"

144A CUSIP:                            393657AC5

</TABLE>

FOR QUALIFIED INSTITUTIONAL BUYERS ONLY. FOR INFORMATIONAL PURPOSES ONLY. THIS
COMMUNICATION IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY
ANY OF THESE NOTES.

THE NOTES, THE GUARANTEES AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THE
NOTES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
ANY OTHER STATE SECURITIES LAWS. UNLESS THEY ARE REGISTERED, THE NOTES AND THE
COMMON STOCK ISSUABLE UPON CONVERSION OF THE NOTES MAY BE OFFERED ONLY IN
TRANSACTIONS EXEMPT FROM OR NOT SUBJECT TO REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY OTHER STATE SECURITIES LAWS. ACCORDINGLY, THE NOTES
HAVE BEEN OFFERED ONLY TO QUALIFIED INSTITUTIONAL BUYERS UNDER RULE 144A.

A COPY OF THE OFFERING MEMORANDUM FOR THE OFFERING MAY BE OBTAINED BY CONTACTING
BEAR, STEARNS & CO. INC. 383 MADISON AVE, NEW YORK, NEW YORK 10179.

<PAGE>

                                                                         Annex I

                       FORM OF OPINION OF COMPANY COUNSEL

     (a) The Company is a corporation validly existing and in good standing
under the laws of the State of Oregon, with the corporate power and authority to
own its properties and conduct its business as described in the Offering
Memorandum (including the information set forth in the Company's Annual Report
on Form 10-K for the year ended August 31, 2005, filed with the Commission on
November 4, 2005 (the "2005 Annual Report") which is incorporated by reference
therein).

     (b) Each of the Company and the Guarantors has all requisite corporate,
limited liability company or limited partnership (as applicable) power and
authority to execute and deliver and perform its obligations under the Purchase
Agreement and the Registration Rights Agreement, to perform under the Indenture
and to consummate the transactions contemplated thereby, including, without
limitation, the corporate, limited liability company or limited partnership (as
applicable) power and authority to issue, sell and deliver the Notes and to
issue and deliver the Guarantees as provided in the Purchase Agreement.

     (c) The Purchase Agreement has been duly authorized, executed and delivered
by the Company and each of the Guarantors.

     (d) The Registration Rights Agreement has been duly authorized, executed
and delivered by the Company and each of the Guarantors, and is the legal, valid
and binding agreement of the Company and each of the Guarantors, enforceable
against each of them in accordance with its terms.

     (e) The Indenture has been duly authorized, executed and delivered by the
Company and each of the Guarantors and is the legal, valid and binding agreement
of the Company and each of the Guarantors, enforceable against each of them in
accordance with its terms.

     (f) The Notes have been duly authorized and executed by the Company for
issuance and sale to the Initial Purchasers pursuant to the Purchase Agreement,
and, when authenticated in accordance with the terms of the Indenture and
delivered against payment therefor in accordance with the terms of the Purchase
Agreement, the Notes will be the legal, valid and binding obligations of the
Company, enforceable against it in accordance with their terms and entitled to
the benefits of the Indenture.

     (g) The Guarantees of the Notes have been duly authorized by each of the
Guarantors and, when the Notes have been issued and authenticated in accordance
with the terms of the Indenture and delivered against payment therefor in
accordance with the terms of the Purchase Agreement, such Guarantees will be the
legal, valid and binding obligations of each of the Guarantors, enforceable
against each of them in accordance with their terms and entitled to the benefits
of the Indenture.

<PAGE>

     (h) The Conversion Shares issuable upon conversion of the Notes have been
duly authorized and have been duly reserved for issuance from the Company's
authorized and unissued shares of Common Stock. When issued upon conversion of
the Notes in accordance with the terms of the Notes, the Conversion Shares will
be validly issued, fully paid and non-assessable, and the issuance of the
Conversion Shares will not be subject to any preemptive rights under the
Company's Articles of Incorporation or Bylaws or the Oregon Business Corporation
Act or, to the best of such counsel's knowledge, any similar rights that entitle
or will entitle any person to acquire shares of Common Stock upon issuance of
the Conversion Shares.

     (i) The execution, delivery and performance of the Purchase Agreement and
the Registration Rights Agreement, the performance of the Indenture and the
consummation of the transactions contemplated by the Purchase Agreement, the
Registration Rights Agreement, the Indenture and the Offering Memorandum do not
and will not result in a violation of any law, rule or regulation of the United
States of America or the State of New York applicable to the Company and its
Subsidiaries.

     (j) No consent, approval, authorization, order, registration, filing,
qualification, license or permit of or with any court or any judicial,
regulatory or other legal or governmental agency or body is required for the
execution, delivery and performance of the Purchase Agreement and the
Registration Rights Agreement, the performance of the Indenture or the
consummation of the transactions contemplated by the Purchase Agreement, the
Registration Rights Agreement, the Indenture and the Offering Memorandum except
(i) for such as may be required under state securities or Blue Sky laws in
connection with the purchase and distribution of the Notes and the Guarantees of
the Notes by the Initial Purchasers, and (ii) for the registration of the Notes,
the Guarantees and the Common Stock under the Securities Act as contemplated by
the Registration Rights Agreement.

     (k) Each of the Company and the Subsidiaries is not now and, after giving
effect to the offering and sale of the Notes and the application of the proceeds
thereof as described in the Offering Memorandum, will not be, an "investment
company" as such term is defined in the Investment Company Act of 1940, as
amended.

     (l) The statements under the captions "Description of Notes," "Description
of Capital Stock," and "United States Federal Income Tax Considerations" in the
Time of Sale Memorandum and the Offering Memorandum, insofar as such statements
constitute a summary of the legal matters or documents referred to therein,
fairly present in all material respects such legal matters and documents in the
context in which presented in the Time of Sale Memorandum and the Offering
Memorandum.

     (m) Assuming the accuracy of the representations, warranties and covenants
of the Company and the Initial Purchasers contained in the Purchase Agreement,
no registration of the Notes or the Guarantees of the Notes under the Securities
Act, and no qualification of an indenture under the Trust Indenture Act with
respect thereto, is required in connection with the purchase of the Notes by the
Initial Purchasers or the initial resale of the Notes pursuant to Rule 144A by
the Initial Purchasers to Qualified Institutional Buyers in the manner
contemplated by the Purchase Agreement, the Time of Sale Memorandum and the
Offering Memorandum.

<PAGE>

     (n) Assuming the accuracy of the representations, warranties and covenants
of the Company and the Initial Purchasers contained in the Purchase Agreement,
the Notes are eligible for resale pursuant to Rule 144A.

     (o) When the Notes are issued and delivered to the Initial Purchasers
pursuant to the Purchase Agreement, none of the Notes will be of the same class
(within the meaning of Rule 144A under the Securities Act) as securities of the
Company or any of the Subsidiaries that are listed on a national securities
exchange registered under Section 6 of the Exchange Act or that are quoted in a
United States automated inter-dealer quotation system.

     (p) The Indenture complies as to form in all material respects with the
rules and regulations of the Commission applicable to an indenture that is
qualified under the Trust Indenture Act.

     (q) The Incorporated Documents (except for the financial statements,
related schedules and other financial data included or incorporated by reference
therein, as to which such counsel need express no opinion) at the time filed
with the Commission complied as to form in all material respects with the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder.

     Our opinions in paragraphs (d), (e), (f), and (g) above also are subject to
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors' rights
and to general principles of equity (whether considered in a proceeding at law
or in equity), and our opinion in paragraph (d) above is additionally subject to
limitations upon the rights of indemnification and contribution that may be
imposed by federal or state securities laws or principles of public policy.

     In addition, such counsel shall state that it has participated in
conferences with officers and other representatives of the Company and the
Guarantors, representatives of the independent auditors of the Company and the
Guarantors and the Initial Purchasers and its representatives at which the
contents of the Time of Sale Memorandum and the Offering Memorandum and related
matters were discussed and, although it is not passing upon, and does not assume
any responsibility for, the accuracy, completeness or fairness of the statements
contained in the Time of Sale Memorandum and the Offering Memorandum and has not
made any independent check or verification thereof, during the course of such
participation, no facts have come to its attention that led it to believe that
the Time of Sale Memorandum and the Offering Memorandum, as of their respective
dates and the Closing Date, contained or contains an untrue statement of a
material fact or omitted or omits to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading (except as to financial statements and other financial data
included or incorporated by reference therein or omitted therefrom, as to which
no opinion need be rendered).

<PAGE>

                                                                        Annex II

                FORM OF OPINION OF GENERAL COUNSEL OF THE COMPANY

     (a) Each of the Company's Subsidiaries has been duly organized and is
validly existing and in good standing under the laws of its jurisdiction of
organization and has all necessary corporate power and authority to own, lease
and operate its property and to conduct its business as described in the
Offering Memorandum, including the information incorporated by reference into
the Offering Memorandum from Item 1, Business, of the Company's Annual Report on
Form 10-K for the year ended August 31, 2005, as filed with the Securities and
Exchange Commission on November 4, 2005 (the "2005 Annual Report"). Each of the
Company and its Subsidiaries is duly qualified to do business and is in good
standing as a foreign corporation in each jurisdiction in which the character or
location of its properties (owned, leased or licensed) or the nature or conduct
of its business makes such qualification necessary, except for those failures to
be so qualified or in good standing which would not (individually or when
aggregated with other such instances) have a material adverse effect on the
business, condition (financial or otherwise), results of operations,
stockholders' equity, properties or prospects of the Company and its
Subsidiaries taken as a whole (a "Material Adverse Effect").

     (b) Neither the Company nor any of its Subsidiaries is in violation of its
respective charter or by-laws and, to such counsel's knowledge, neither the
Company nor any of its Subsidiaries is in default in the performance of any
obligation, agreement, covenant or condition contained in any indenture, loan
agreement, mortgage, lease or other agreement or instrument to which the Company
or any of its Subsidiaries is a party or by which the Company or any of its
Subsidiaries or their respective property is bound, except for defaults that,
singly or in the aggregate, would not have a Material Adverse Effect.

     (c) Except as disclosed in the Time of Sale Memorandum and the Offering
Memorandum, to such counsel's knowledge, neither the Company nor any of its
Subsidiaries has violated any environmental law, any provisions of the Employee
Retirement Income Security Act of 1974, as amended, or any provisions of the
Foreign Corrupt Practices Act, or the rules and regulations promulgated
thereunder, except for such violations which, singly or in the aggregate, would
not have a Material Adverse Effect.

     (d) Each of the Company and its Subsidiaries has such authorizations of,
and has made all filings with and notices to, all governmental or regulatory
authorities and self-regulatory organizations and all courts and other
tribunals, including, without limitation, under any applicable environmental
laws, as are necessary to own, lease, license and operate its respective
properties and to conduct its business, except where the failure to have any
such authorization or to make any such filing or notice would not, singly or in
the aggregate, have a Material Adverse Effect; each such authorization is valid
and in full force and effect and each of the Company and its Subsidiaries is in
compliance with all the terms and conditions thereof and with the rules and
regulations of the authorities and governing bodies having jurisdiction with
respect thereto; and no event has occurred (including, without limitation, the
receipt of any notice from any authority or governing body) which allows or,
after notice or lapse of time or

<PAGE>

both, would allow, revocation, suspension or termination of any such
authorization or results or, after notice or lapse of time or both, would result
in any other impairment of the rights of the holder of any such authorization;
and such authorizations contain no restrictions that are burdensome to the
Company or any of its Subsidiaries; except where such failure to be valid and in
full force and effect or to be in compliance, the occurrence of any such event
or the presence of any such restriction would not, singly or in the aggregate,
have a Material Adverse Effect.

     (e) Other than as set forth in the Time of Sale Memorandum and the Offering
Memorandum, there are no judicial, regulatory or other legal or governmental
proceedings pending to which the Company or any of its Subsidiaries is a party
or of which any property of the Company or any of its Subsidiaries is the
subject which, if determined adversely to the Company or any of its
Subsidiaries, would singly or in the aggregate have a Material Adverse Effect;
and, to such counsel's knowledge, no such proceedings are threatened or
contemplated.

     (f) The execution, delivery, and performance of the Purchase Agreement, the
Registration Rights Agreement, and the Indenture and the consummation of the
transactions contemplated by the Purchase Agreement, the Registration Rights
Agreement, the Indenture and the Offering Memorandum do not and will not (i)
conflict with, require consent under (except for any consent previously
obtained) or result in a breach of any of the terms and provisions of, or
constitute a default (or an event which with notice or lapse of time, or both,
would constitute a default) under, or result in the creation or imposition of
any Lien upon property or assets of the Company or any of its Subsidiaries
pursuant to, any indenture, mortgage, deed of trust, loan agreement or any other
material agreement, instrument, franchise, license or permit to which the
Company or any of its Subsidiaries is a party or by which the Company or any of
its Subsidiaries or their respective properties or assets may be bound, except
for breaches that, singly or in the aggregate, would not have a Material Adverse
Effect, or (ii) violate or conflict with any provision of the articles of
incorporation, by-laws or other organizational documents of the Company or any
of its Subsidiaries, or (iii) violate any judgment, decree, order, statute, rule
or regulation of any court or any judicial, regulatory or other legal or
governmental agency or body of the United States of America or the State of
Oregon applicable to the Company or any of its Subsidiaries.

     (g) The Company has an authorized capitalization as set forth in the Time
of Sale Memorandum, the Preliminary Offering Memorandum and the Offering
Memorandum. All shares of Common Stock outstanding on the date of the Offering
Memorandum have been duly authorized and validly issued, are fully paid and non
assessable and were not issued in violation of any preemptive or similar rights
under (i) the Company's Articles of Incorporation or Bylaws, (ii) the Oregon
Business Corporation Act or, (iii) to the best of such counsel's knowledge, the
terms or provisions of any material document, agreement or other instrument to
which the Company is a party. To the best of such counsel's knowledge, except as
set forth in the Time of Sale Memorandum, the Preliminary Offering Memorandum
and the Offering Memorandum, there are (i) no outstanding securities of the
Company convertible into or evidencing the right to purchase or subscribe for
any shares of capital stock of the Company, (ii) no outstanding or authorized
options, warrants, calls, subscriptions, rights, commitments or any other
instruments or agreements of any character obligating the Company to issue any
shares of its capital stock or any securities convertible into or evidencing the
right to purchase or subscribe for any shares of

<PAGE>

such stock, and (iii) no agreements or understandings with respect to the
voting, sale or transfer of any shares of capital stock of the Company to which
the Company is a party. All of the outstanding shares of capital stock or other
equity securities of each Subsidiary are owned of record and beneficially,
directly or indirectly, by the Company, free and clear of all Liens and
limitations on voting rights (except as set forth on Exhibit A to such opinion)
and are duly authorized, validly issued, fully paid and non-assessable, and have
not been issued in violation of any preemptive or similar rights under (i) the
applicable Subsidiary's organizational documents, (ii) the laws of its
jurisdiction of organization or, (iii) to the best of such counsel's knowledge,
the terms or provisions of any material document, agreement or other instrument
to which the applicable Subsidiary is a party. To the best of such counsel's
knowledge, there are (i) no outstanding or authorized options, warrants, calls,
subscriptions, rights, commitments or other instruments or agreements of any
character obligating the Company or any Subsidiary to issue any shares of
capital stock of any Subsidiary or any securities convertible into or evidencing
the right to purchase or subscribe for any shares of such stock, and (ii) no
agreements or understandings with respect to the voting, sale or transfer of any
shares of capital stock of any Subsidiary. To the best of such counsel's
knowledge, there are no outstanding contractual obligations of the Company or
any Subsidiary to repurchase, redeem or otherwise acquire any outstanding shares
of capital stock or other ownership interests of any Subsidiary or to provide
funds to or make any investment (in the form of a loan, capital contribution or
otherwise) in any Subsidiary or any other entity.

     (h) The statements under Item 3, "Legal Proceedings" in the Company's
Annual Report on Form 10-K for the year ended August 31, 2005, and Part II, Item
1, "Legal Proceedings" in the Company's Quarterly Report on Form 10-Q for the
quarter ended February 28, 2006 incorporated by reference in the Time of Sale
Memorandum and the Offering Memorandum, insofar as such statements constitute a
summary of the legal matters, documents or proceedings referred to therein,
present fairly in all material respects such legal matters, documents and
proceedings in the context in which presented in the Time of Sale Memorandum and
the Offering Memorandum.

<PAGE>

                                                                       Annex III

          FORM OF OPINION OF CANADIAN REGULATORY COUNSEL OF THE COMPANY

1. No consent or approval of, or notice to or filing with Transport Canada under
any provision of the federal laws of Canada and the laws of the Province of
Ontario is required by the Company in connection with the execution and delivery
by it of the Purchase Agreement or the offer, sale and issuance of the Notes as
contemplated by the Time of Sale Memorandum and the Offering Memorandum defined
therein.

The opinion may be subject to the following qualification:

1. Equipment owned by the Company or its Subsidiaries may be leased by a
"railway company" as that term is defined in the Canada Transportation Act
("CTA"). In the event of an insolvency of a "railway company", a scheme of
arrangement and associated filings pursuant to the CTA might apply.<PAGE>
                                                                    Exhibit 10.1
                   AMENDMENT NO. 1 TO ASSET PURCHASE AGREEMENT

      THIS AMENDMENT NO. 1 TO ASSET PURCHASE AGREEMENT (this "Amendment") is
made as of May 15, 2006, by and  among Covansys Corporation, a Michigan
corporation (the "Company"), the Company's Subsidiaries and Affiliates
listed on the signature page to this Amendment (together with the Company, each
a "Seller" and collectively  "Sellers") and Saber Solutions, Inc., f/k/a
Cobalt Public Sector, Inc., a Delaware corporation ("Buyer").

                                    RECITALS

      A. We have entered into an Asset Purchase Agreement, dated March 8, 2006
(the "Asset Purchase Agreement"), which provides for the sale of the Business by
Sellers to Buyer on the terms and subject to the conditions set forth therein.

      B. We have decided that a number of changes should be made to the Asset
Purchase Agreement.

      C. We are entering this Amendment to amend the Asset Purchase Agreement as
provided below.

      D. The Asset Purchase Agreement can be amended by us in accordance with
Section 12.8 thereof.

      Based on all of the foregoing considerations, our mutual promises in this
Amendment and other considerations important to us, which we acknowledge are
sufficient to legally bind us, we agree as follows:

      1.1 DEFINITIONS. The terms used in this Amendment that are defined in the
Asset Purchase Agreement and are not otherwise defined in this Amendment have
the meanings given them in the Asset Purchase Agreement. Use of terms such as
"we" and "our" refers to Sellers and Buyer together.

            (a) We are adding the following definition in its proper
      alphabetical order in Article 11 of the Asset Purchase
      Agreement:

                  "Required Other Consents" means all Consents that are
            required:

                  (i) for the consummation of the transactions contemplated by
            this Agreement and by the other Transaction Documents (including,
            without limitation, the transfer of the Purchased Assets to Buyer);

                  (ii) in order to prevent a breach of or default under or a
            right of termination or modification of any material Contract to
            which any Seller is a party (including, without limitation, the
            Assumed Contracts) or to which any portion of the Purchased Assets
            is subject;

                  (iii) for the conduct of the Business as heretofore conducted
            and ownership of the Purchased Assets following the Closing; or

                  (iv) without limiting the generality of the foregoing, for
            Sellers to provide all services required to be provided to Buyer
            under the Transition Services Agreement."

            (b) We are amending the definition of "Target Net Book Value"
      contained in Article 11 of the Asset Purchase Agreement to read in its
      entirety as follows:
<PAGE>
                  "Target Net Book Value means $30,000,000."

            (c) Further, we are deleting the following definitions and
references to definitions:

                  (i) the definition of "Contract Adjustment Amount" contained
            in Article 11;

                  (ii) the Term and Section references for "Contract Adjustment
            Amount" contained in Section 11.1; and

                  (iii) the Term and Section references for "Flaw" contained in
            Section 11.1.

      1.2 DELETED PROVISIONS. We are deleting the following provisions of the
Asset Purchase Agreement:

            (a) the last sentence of Section 2.3(b) (relating to the Contract
      Adjustment Amount);

            (b) Sections 4.17, 4.18 and 5.3 (Closing conditions relating to the
      Contract Adjustment Amount);

            (c) Section 4.11 (Closing condition relating to Material Adverse
      Effect);

            (d) Section 4.21 (Closing condition relating to rejection of
      Contracts under Section 8.20);

            (e) Section 4.22 (Noncompetes);

            (f) Section 6.9(g) (representation and warranty relating to Flaw in
      Customer Contracts);

            (g) Section 8.20(a) (relating to rejection of Customer Contracts);

            (h) Section 9.2(a)(iii) (indemnity for breach of Section 6.9(g));
      and

            (i) Schedule 4.4(a) to the Asset Purchase Agreement.

      1.3 CLOSING. We are amending Section 2.1 of the Asset Purchase Agreement
to read in its entirety as follows:

      "The consummation of the transactions contemplated in this Agreement (the
      "Closing") shall take place at the offices of Kirkland & Ellis LLP, 200
      East Randolph Drive, Chicago, Illinois 60601, at 10:00 a.m., local time,
      on June 1, 2006 or, if any of the conditions to Closing set forth in
      Article 4 and Article 5 hereof have not been satisfied or waived by the
      Party entitled to the benefit thereof on or prior to such date, on the
      second business day following satisfaction or waiver of such Conditions
      (the "Closing Date"). The Closing may also take place at such other place
      or on such other date as may be mutually determined by the Parties."

      1.4 PURCHASE PRICE. We are amending Section 2.3(a) of the Asset Purchase
Agreement to read in its entirety as follows:

      "(a) The aggregate purchase price for the Purchased Assets (the "Purchase
      Price") shall be equal to the sum of (i) $35,000,000, less (ii) an amount
      equal to the Estimated Net Book Value Adjustment. For purposes of this
      Agreement, "Estimated Net Book Value Adjustment" shall be equal to an
      amount equal to the Target Net Book Value, less the Estimated Net Book
      Value."

      1.5 PURCHASE PRICE ADJUSTMENT. We are amending Section 2.3(d) of the Asset
Purchase Agreement to read in its entirety as follows:

      "(i) If Buyer disagrees with Sellers' calculation of Closing Net Book
      Value delivered pursuant to Section 2.3(c), Buyer may, within 120 days
      following the last day of the

                                      2
<PAGE>
      month in which the Closing falls or thirty (30) days after Sellers have
      delivered the certificate set forth in Section 2.3(c), whichever is later
      (the "Objection Period") deliver a written notice (the "Objection Notice")
      to Sellers disagreeing with such calculation and setting forth Buyer's
      calculation of such amount. Any such Objection Notice shall specify those
      items or amounts as to which Buyer disagrees, and Buyer shall be deemed to
      have agreed with all other items and amounts contained in Sellers'
      calculation of Closing Net Book Value delivered pursuant to Section
      2.3(c).

      (ii) Buyer's ability to object to Sellers' calculation of Closing Net Book
      Value shall be restricted as set forth in this subparagraph. The
      restriction on Buyer's ability to object will apply (A) solely to the
      extent such objection is based on a disagreement with, or alleged
      inaccuracy of, any accrual, reserve or other item and (B) in each case
      solely to the extent such disagreement, or alleged inaccuracy, is with
      respect to Sellers' calculation of (1) the time and costs that will be
      required to be expended or incurred by Sellers (or Buyer after the Closing
      Date) in connection with each Customer Contract in order to complete
      Sellers' obligations thereunder or (2) the estimated time or date on which
      each Customer Contract will be completed following the Closing Date;
      provided, that the restriction on Buyer's ability to object under this
      subparagraph (ii) will apply in each case only if Sellers can objectively
      demonstrate and prove such items were calculated as of the Closing Date
      and on a basis consistent with this Agreement and past practice and
      methodology and consistent with that used in the preparation of the Latest
      Balance Sheet. If Buyer does not deliver an Objection Notice within the
      Objection Period, then the amount of Closing Net Book Value shall be
      deemed to be finally determined as set forth on Sellers' calculation
      thereof."

      1.6 NONASSIGNABILITY OF CONTRACTS. We are amending Section 2.6 of the
Asset Purchase Agreement to read in its entirety as follows:

      "Nonassignability of Contracts. Notwithstanding anything to the contrary
      herein, to the extent that the assignment hereunder by Sellers to Buyer of
      any Assumed Contract is not permitted or is not permitted without the
      consent of any other party to such Assumed Contract, this Agreement shall
      not be deemed to constitute an assignment of any such Assumed Contract if
      such consent is not given or if such assignment otherwise would constitute
      a breach of, or cause a loss of contractual benefits under, any such
      Assumed Contract, and Buyer shall assume no obligations or liabilities
      under any such Assumed Contract. Sellers shall use their reasonable
      commercial efforts to obtain all Consents necessary for the sale,
      transfer, assignment and delivery of the Purchased Assets (including the
      Assumed Contracts) to Buyer hereunder, and following the Closing, Sellers
      shall continue to use their reasonable commercial efforts to obtain any
      further consents related to the assignment of the Customer Contracts.
      Sellers shall advise Buyer in writing at least five (5) Business Days
      prior to the Closing with respect to any Assumed Contract which either
      Seller knows or has substantial reason to believe will or may not be
      subject to assignment to Buyer hereunder at the Closing. Without in any
      way limiting Sellers' obligation hereunder, if any such consent is not
      obtained or if such assignment is not permitted irrespective of consent
      and if the Closing shall occur, Sellers shall cooperate with Buyer
      following the Closing Date in any reasonable arrangement designed to
      provide Buyer with the rights and benefits (subject to the obligations)
      under any such Assumed Contract (other than with respect to any Unassumed
      Customer Contract), including enforcement for the benefit of Buyer of any
      and all rights of either Seller against any other party arising out of any
      breach or cancellation of any such Assumed Contract by such other party
      and, if requested by Buyer, acting as an agent on behalf of Buyer or as
      Buyer shall otherwise reasonably require. Also, with respect to any

                                       3
<PAGE>
      Customer Contract which is not assigned to Buyer as of the Closing,
      Sellers shall transfer to Buyer any employees, software or other assets
      associated with such Contract, as specified by Buyer, Sellers shall assign
      any economic benefit of such Contract to Buyer as of the Closing Date and,
      so long as all economic benefit is assigned to Buyer, Buyer and Sellers
      shall enter into a mutually agreeable subcontract for the purpose of
      reasonably providing Sellers with availability of personnel to perform the
      services required by such Contract."

      1.7 SELLERS' COVENANTS AND CONDITIONS TO CLOSING. Solely for the purpose
of satisfying the conditions to the obligation of Buyer to close pursuant to
Article 4 of the Asset Purchase Agreement, and not for any other purpose
(including, without limitation, for purposes of any rights to indemnification
pursuant to Article 9 of the Asset Purchase Agreement), we agree as follows:

            (a) The following sentence shall be added to the end of Section 4.1
      of the Asset Purchase Agreement:

            "Notwithstanding the foregoing, and solely for the purposes of
      determining the conditions to the obligations of Buyer to consummate the
      transactions hereunder, the following representations and warranties need
      not be true and correct in any material respect as of the Closing Date
      (but shall have been true and correct as of the date hereof):

            (a) The last sentence of Section 6.4 (no Material Adverse Effect
      since the date of the Last Balance Sheet);

            (b) Section 6.9(a) (Customer Contracts);

            (c) The second and third sentences of Section 6.9(d) (performance
      under Customer Contracts);

            (d) Section 6.9(f) (Customer Contract performance);

            (e) Section 6.9(g) (Software Product Flaws); and

            (f) Section 6.9(h) (estimates and summaries)."

      For the avoidance of doubt, nothing in this Section 1.7 shall be deemed to
modify the indemnification provisions of the Asset Purchase Agreement.

      1.8 CONSENTS. We are amending Section 4.4 of the Asset Purchase Agreement
to read in its entirety as follows:

      "Each of the following Consents shall have been duly made or obtained by
      Sellers and delivered to Buyer: (a) all Consents necessary to assign to
      Buyer at least ninety percent (90%) of the Pro-Forma Remaining Contract
      Value shown on Schedule 6.9(a)(i) as of the date hereof (it being
      understood and agreed that the Pro Forma Remaining Contract Value of any
      Contract which not a Contract (e.g., unexecuted) prior to the date hereof
      and was to be entered into and executed following the date hereof, shall
      only be included in the calculation of the 90% (both in the numerator and
      the denominator) to the extent it was executed prior to the Closing Date)
      of all Customer Contracts (the Consents described in clause (a) are
      collectively referred to as the "Required Customer Contracts Consents");
      and (b) all Required Other Consents other than those specified in clause
      (a). Notwithstanding the foregoing, Sellers shall use their reasonable
      commercial efforts to obtain the Consents from all customers and other
      Persons (whether or not a Consent is

                                      4
<PAGE>
      required to be delivered pursuant to Section 4.4(a)). All Consents shall
      be (A) substantially in the form attached hereto as Exhibit 4.4 or (B) in
      such other form and substance reasonably satisfactory to Buyer, and no
      such Consent shall have been revoked. For purposes of this Section 4.4, a
      customer Consent will "have been duly made or obtained" if the customer
      has irrevocably committed in writing to give such Consent on or as of the
      Closing or if the customer has given a written Consent which is both (i)
      reasonably satisfactory to Buyer and (ii) conditional only upon the
      Closing, processing of administrative forms, delivery by Buyer of customer
      requested documentation or assurances, and/or actions solely within the
      control of Buyer.

      1.9 TRANSITION SERVICES AGREEMENT. We are amending Section 4.8 of the
Asset Purchase Agreement to read in its entirety as follows:

            "4.8 Transition Services Agreement. Sellers and Buyer (or any of its
      designees) shall have entered into a Transition Services Agreement (the
      "Transition Services Agreement"), in the form and substance of Exhibit C
      attached hereto (provided that, notwithstanding anything contained in
      Exhibit C to the contrary, the Transition Services Agreement shall (unless
      otherwise designated by Buyer) continue until the later of (i) September
      30, 2006 and (ii) the term otherwise specified in the Transition Services
      Agreement) and such Transition Services Agreement shall be in full force
      and effect as of the Closing and shall not have been amended or modified
      and (ii) Exhibit B attached thereto shall be in form and substance
      reasonably satisfactory to Buyer."

      1.10 ARRANGEMENT WITH CERTAIN EMPLOYEES. We are amending Section 4.10 of
the Asset Purchase Agreement to read in its entirety as follows:

            "4.10 Arrangements with Employees.

            (a) With respect to each of the Employees listed by Buyer on
      Schedule 8.11(b) with respect to whom Buyer (or its designee) has
      indicated its intention to offer employment as of the Closing (the
      "Offered Employees"), Sellers shall have used their reasonable commercial
      efforts to cause such Offered Employee to execute a Saber Solutions, Inc.
      Employment Agreement in form and substance as provided by Buyer to Sellers
      (the "Saber Employment Agreement"), pursuant to procedures agreed to by
      Sellers and Buyer prior to Closing.

            (b) With respect to each Offered Employee who has not executed on or
      before the Closing Date the Saber Employment Agreement pursuant to Section
      4.10(a) above, Buyer shall have assumed and Sellers shall assign to Buyer
      at Closing as an Assumed Contract, the employment agreement, employee
      technology and confidentiality agreement, proprietary information
      agreement or similar agreement or Contract as specified on Schedule 6.14
      (except for any Covansys Retention Bonus Agreement and except for any
      Claremont Technology Group, Inc. Employment Agreement) of such Offered
      Employee. For purposes of clarity, in no event shall Buyer assume or shall
      Sellers assign to Buyer any Covansys Retention Bonus Agreement or any
      Claremont Technology Group, Inc. Employment Agreement (including with
      those Offered Employees set forth on Schedule 4.10(b)), which shall be for
      all purposes under this Agreement Excluded Assets.

            (c) With respect to any of the employees of the Business who have
      not executed an employment agreement, employee technology and
      confidentiality agreement, proprietary information agreement or similar
      agreement or Contract with the Company that contain similar proprietary
      rights provision as those contained in the Non-disclosure and Proprietary
      Rights Agreement attached hereto as Exhibit E and have not executed a

                                       5
<PAGE>
      Saber Employment Agreement, the Company shall have entered into a
      Non-disclosure and Proprietary Rights Agreement with such employee,
      substantially in the form attached hereto as Exhibit E."

      1.11 INDIA PERSONNEL SERVICES AGREEMENT. We are replacing Exhibit D to the
Asset Purchase Agreement with the Exhibit D attached to this Amendment. We agree
that Exhibit D in the form attached to the Asset Purchase Agreement is null and
void, and that we will consider Exhibit D to this Agreement to replace it for
all purposes.

      1.12 EMPLOYEES. We are amending Section 8.11(a) of the Asset Purchase
Agreement to read in its entirety as follows:

            "Sellers have provided Buyer with a true, correct and complete list
      of all of the Employees and contractors engaged primarily in the Business
      as of February 24, 2006 and shall at least six (6) days before the Closing
      Date provide such a list (as of seven (7) days) before the Closing Date,
      in each case indicating the most recent rate of pay of each such Employee
      and contractors during the twelve (12) months preceding the date hereof,
      the date of employment and title or job position of each such Employee and
      contractor, and the status of each such Employee and contractor as active,
      on leave, full-time, part-time or otherwise."

      We are amending Section 8.11(b) of the Asset Purchase Agreement to read in
its entirety as follows:

            "At least four (4) days before the Closing, Buyer shall deliver to
      the Company Schedule 8.11(b) which shall list the active Employees used in
      the Business as indicated on the list delivered by Sellers pursuant to
      Section 8.11(a), to whom Buyer (or its designee) intends to offer
      employment. As soon as practicable following Sellers' receipt of Schedule
      8.11(b), but in any event at least one (1) day prior to closing, Sellers
      shall provide Buyer an estimate of the severance expense to be paid by
      Buyer pursuant to this Section 8.11(b). Following Buyer's receipt of
      Sellers' estimate, Buyer may amend Schedule 8.11(b) in its sole discretion
      by providing written notice to Sellers. Any such Employee who accepts
      Buyer's offer of employment shall be referred to herein as a "Rehired
      Employee". Nothing in this Agreement shall obligate Buyer to continue to
      employ any Rehired Employee for any period of time or limit the ability of
      Buyer to modify any wage, salary or benefit to any Rehired Employee or
      terminate the employment of any Rehired Employee at any time following the
      Severance Date for any reason, including without cause. However, if Buyer
      fails to offer employment to any person on the list delivered by Sellers
      in accordance with Section 8.11(a) above, and Sellers terminate any such
      Employee to whom Buyer fails to offer employment, Buyer shall reimburse
      Sellers the amount of any out-of-pocket severance expense which is
      actually paid by any Seller to any such Employee according to Sellers'
      existing severance policy as provided to Buyer, or as required by
      applicable law. For purposes of this Section 8.11(b), the term "active
      Employees" shall include all full-time and part-time employees, employees
      on military leave, maternity leave, short-term disability and leave under
      the Family and Medical Leave Act of 1993. Any Employee who is on short
      term disability or on a leave of absence of the type described above shall
      remain the liability of Sellers and shall continue to receive benefits to
      the extent provided under Sellers' employee benefit plans until such time
      as the Employee actively returns to work with Buyer."

      1.13 401(k). We are amending Section 8.11(e) of the Asset Purchase
Agreement to read in its entirety as follows:

                                       6
<PAGE>
      "Sellers shall (i) prior to or on Sellers' next payroll date, make all
      matching contributions that would otherwise be made for the plan year
      (without regard to any year-end employment requirements) with respect to
      the Rehired Employees' contributions to the Covansys 401(k) Retirement
      Plan (the "Sellers Savings Plan"), (ii) prior to or on the Severance Date,
      amend the Sellers Savings Plan to fully vest the employer contribution
      accounts of all Rehired Employees and (iii) prior to or on the Severance
      Date, amend the Sellers Savings Plan to permit Rehired Employees to roll
      over in-kind promissory notes evidencing outstanding participant plan
      loans without default to Buyer's 401(k) savings plan. Buyer agrees it will
      cause its 401(k) savings plan to accept a rollover of outstanding plan
      loans of Rehired Employees in existence as of the Severance Date."

      1.14 INDEMNIFICATION OF BUYER. We are amending Section 9.2(b) to read in
its entirety as follows:

      "The indemnification provided for in Section 9.2(a), shall be subject to
      the following limitations:

                  (i) Sellers will not be liable to any Buyer Party for any
            Adverse Consequences under Section 9.2(a)(i) (other than in respect
            of any Buyer Fundamental Representation or the representations made
            under Section 6.8 (Tax Matters)) unless and until the aggregate
            amount of Adverse Consequences relating to all such breaches,
            excluding Adverse Consequences related to breaches of Buyer
            Fundamental Representations or the representations made under
            Section 6.8 (Tax Matters), exceeds $750,000 (the "Buyer Threshold"),
            at which time Sellers shall be liable for the amount of all such
            Adverse Consequences in excess of the Buyer Threshold;

                  (ii) Notwithstanding the foregoing subsection (i) and subject
            to subsection (iv), a Buyer Party may not assert any additional
            claims against Sellers (A) pursuant to Section 9.2(a)(i) (other than
            in respect of the Buyer Fundamental Representations or the
            representations made under Section 6.8 (Tax Matters)) once Sellers
            have paid $6,000,000 to Buyer pursuant to such Section 9.2(a)(i) for
            benefits of representations and warranties (other than with respect
            to the Buyer Fundamental Representations, the representations made
            under Section 6.8 (Tax Matters) or, for the avoidance of doubt, the
            Specified Customer Contract Representations) or (B) pursuant to
            Section 9.2(a)(i), with respect to a breach of any representation or
            warranty contained in this Agreement, or pursuant to Section
            9.2(a)(iv), with respect to breach of any covenant contained in this
            Agreement, to the extent (and solely the extent) that the Adverse
            Consequences are directly attributable to or directly arise from the
            untruth or inaccuracy of any Completion Representations (and are not
            attributable to and do not arise from the untruth or inaccuracy of
            any other statement, representation, warranty or covenant in this
            Agreement), once Sellers have paid $1.00 to Buyer pursuant to such
            Section 9.2(a)(i) for benefits of such representations and
            warranties or pursuant to such Section 9.2(a)(iv) for benefits of
            such covenants;

                  (iii) For purposes of this Article 9, "Completion
            Representations" means all statements contained in this Agreement
            (including the Schedules hereto) relating solely to (1) the time and
            costs that will be required to be expended or incurred by Sellers
            (or Buyer after the Closing Date) in connection with each Customer
            Contract in order to complete Sellers' obligations thereunder

                                       7
<PAGE>
            or (2) the estimated time or date on which each Customer Contract
            will be completed;

                  (iv) The parties agree and understand that the limitation set
            forth in clause (B) of subparagraph (ii) will not limit Buyer's
            right to assert claims for Adverse Consequences attributable to or
            arising from any other statement, representation, warranty or
            covenant in this Agreement. For purposes of clarity, and
            notwithstanding anything to the contrary herein, clause (B) of
            subparagraph (ii) will in no way limit a Buyer Party's ability to
            assert a claim against Sellers for any breach of any representation,
            warranty or covenant which relates to, arises out of or is a result
            of any of the following:

                        (A) a breach of any Assumed Contract;

                        (B) a violation of law;

                        (C) a breach of warranty under a Customer Contract or
                  Assumed Contract;

                        (D) a tort;

                        (E) any product liability;

                        (F) an infringement or misappropriation claim with
                  respect to products delivered or developed (including works in
                  progress) or services performed; or

                        (G) any charge, complaint, action, suit, proceeding,
                  hearing, investigation, claim or demand relating to any of the
                  foregoing.

                  (v) Sellers will not be liable to any Buyer Party for any
            Adverse Consequences under Section 9.2(a)(ii) and a Buyer Party may
            not assert any claims against Sellers pursuant to Section 9.2(a)(ii)
            once Sellers have paid $1.00 to Buyer pursuant to such Section
            9.2(a)(ii) for benefits of representations and warranties in respect
            of Sections 6.9(a), 6.9(f), and 6.9(h); and

                  (vi) notwithstanding anything in Section 9.2(a) to the
            contrary, in the event that Buyer makes a claim for indemnification
            pursuant to Section 9.2(a) (other than pursuant to Section
            9.2(a)(ii), Section 9.2(a)(v) or Section 9.2(a)(viii)), arising out
            of a claim by a customer for pre-Closing breach of its Customer
            Contract (that is an Assumed Contract), Sellers shall only be
            required to indemnify a Buyer Party thereunder for any out-of-pocket
            Adverse Consequences paid, or to be paid, by such Buyer Parties
            (i.e., Sellers shall not be liable for any lost profits,
            consequential damages or the like unless paid out-of-pocket by Buyer
            Party to a third party)."

      1.15 GUARANTEE OF BUYER OBLIGATIONS. New Section 8.23 is added to the
Asset Purchase Agreement to read as follows:

      "8.23 Continuing Obligations Under Certain Assumed Contracts. In order to
      facilitate the consummation of the transactions contemplated by this
      Agreement, Sellers may agree to remain potentially liable under the
      Customer Contracts and lease agreements listed on Schedule 8.23 which are
      being transferred to Buyer under this Agreement (the "Indemnified
      Contracts"). For purposes of this Agreement, the Indemnified Contracts
      shall be deemed Assumed Contracts (so long as necessary Consent is
      obtained in accordance with such Contract). For purposes of this
      Agreement, Sellers' agreement to remain potentially liable to the customer
      under the Indemnified Contracts (i) will not

                                       8
<PAGE>
      otherwise change the nature of any obligation under any Indemnified
      Contract as an Assumed Liability and (ii) will not otherwise be an
      Excluded Liability and will not otherwise constitute any obligation under
      the Indemnified Contracts as an Excluded Liability. Buyer shall reimburse
      Sellers for all out-of pocket costs incurred by Sellers under any
      Indemnified Contract except to the extent that any such costs do not
      constitute Assumed Liabilities, constitute Excluded Liabilities and/or are
      otherwise indemnifiable by Sellers pursuant to this Agreement. Saber
      Software, Inc. and Saber Holdings, Inc. shall guarantee all obligations of
      Buyer under this Section 8.23."

      1.16 BUYER PARTICIPATION IN BUSINESS PRIOR TO CLOSING. New Section 8.24 is
added to the Asset Purchase Agreement to read as follows:

      "8.24 Buyer Participation in Business Prior to Closing. Subject to (and
      without limiting) the provisions of this Agreement, including, without
      limitation, Article 3 hereof, until Closing, Sellers shall operate the
      Business without any direction or involvement from Buyer, except to the
      extent specifically requested by Sellers or as otherwise specifically set
      forth in the Agreement. Any such direction or involvement from Buyer as
      requested by Sellers shall be at Buyer's sole cost and expense, and shall
      be conducted solely through and as approved by Arvind Malhotra."

      1.17 EXCLUSIVE REMEDY. We are amending the last sentence of Section 9.6 to
read in its entirety as follows:

      "The Parties hereto further agree that the provisions of Section
      9.2(a)(ii) shall be the sole and exclusive remedies available to any Buyer
      Party for any claim for breach of the Specified Customer Contract
      Representations."

      1.18 ARRANGEMENTS WITH CERTAIN EMPLOYEES.

            (a) DELETION OF SCHEDULEE 4.10(a). We are deleting Schedule 4.10(a)
in its entirety.

            (b) AMENDMENT OF SCHEDULE 1.1(c). We are amending Item IV of
Schedule 1.1(c) of the Disclosure Schedules to the Asset Purchase Agreement in
its entirety to read in its entirety as follows:

      "Only as provided in Section 4.10(b) of the Agreement (i.e., not including
      any Covansys Retention Bonus Agreement or any Claremont Technology Group,
      Inc. Employment Agreement), and only to the extent such agreements are
      specified on Schedule 6.14 (or entered into pursuant to Section 4.10), the
      employment agreements, employee technology and confidentiality agreements,
      proprietary information agreements and similar agreements and Contracts
      (except for any Covansys Retention Bonus Agreement and except for any
      Claremont Technology Group, Inc. Employment Agreement), each of which is
      in the specified form attached hereto as Exhibit 1, between the Company or
      its Affiliates and each of the Offered Employees listed on Schedule
      8.11(b)."

      1.19 OTHER PROVISIONS UNCHANGED. We agree that except as expressly
modified by the terms of this Amendment, the provisions of the Asset Purchase
Agreement continue in full force and effect without modification. If any
provision of the Asset Purchase Agreement (whether or not we have specifically
referred to it in this Amendment) conflicts with any provision of this
Amendment, the provision of this Amendment will control. The date of the Asset
Purchase Agreement shall remain as March 8, 2006 and all references to "as of
the date hereof", "as of the date of this Agreement" or similar terms or phrases
of like import shall mean March 8, 2006.

                                       9
<PAGE>
      1.20 COUNTERPARTS. This Amendment No. 1 to Asset Purchase Agreement may be
executed in two or more counterparts (including by use of facsimiled signature
pages), any one of which need not contain the signatures of more than one party,
but all such counterparts taken together shall constitute one and the same
Amendment No. 1 to Asset Purchase Agreement.

      1.21 GOVERNING LAW. All issues and questions concerning the construction,
validity, enforcement and interpretation of this Amendment No. 1 to Asset
Purchase Agreement shall be governed by, and construed in accordance with, the
laws of the State of Delaware, without giving effect to any choice of law or
conflict of law rules or provisions (whether of the State of Delaware of any
other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware.

                                   * * * * * *

                                       10
<PAGE>
      IN WITNESS WHEREOF, we have executed this Amendment No. 1 as of the date
indicated in the first paragraph of this Amendment.

                                  COVANSYS CORPORATION

                                  By:
                                        ----------------------------------------
                                  Name:
                                        ----------------------------------------
                                  Its:
                                        ----------------------------------------

                                  COVANSYS CONSULTING SERVICES CORPORATION

                                  By:
                                        ----------------------------------------
                                  Name:
                                        ----------------------------------------
                                  Its:
                                        ----------------------------------------

                                  SABER SOLUTIONS, INC.

                                   By:
                                        ----------------------------------------
                                   Name:
                                        ----------------------------------------
                                   Its:
                                        ----------------------------------------

                                       11

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