Document:

exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement, dated as of April 7, 2008 (the “Effective Date”) is by and between
The Greenbrier Companies, Inc., an Oregon corporation (the “Company”), and James T. Sharp
(“Employee”).

RECITALS

     A. Employee currently serves as the President of Greenbrier Leasing Company LLC (“GLC”), a
wholly-owned subsidiary of the Company.

     B. The Company desires to obtain the continued services of Employee in that capacity and to
provide for benefits in the event of termination of Employee’s employment following a change of
control of the Company. Employee is willing to serve the Company in such capacity upon the terms
and subject to the conditions set forth in this Agreement.

     THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as
follows:

1. EMPLOYMENT

     1.1 Employment of Employee. The Company agrees to employ Employee, and Employee
agrees to serve, as the President of GLC during the Term and upon the conditions set forth in this
Agreement.

     1.2 Responsibilities. Employee shall report to the President and Chief Executive
Officer (“CEO”) of the Company. He shall be responsible for the duties customarily performed by,
and shall possess the powers and exercise the responsibilities customary of, the position set forth
in Section 1.1. Employee agrees to abide by all the policies, practices and rules of the Company.

     1.3 Extent of Duties. Employee shall devote his reasonable full-time energies and
efforts exclusively in furtherance of the business of the Company and its affiliates and shall not
be engaged in any other business activity; provided, that nothing in this Agreement shall preclude
Employee from serving as a director or member of a committee of any company or organization, the
business of which does not conflict or compete with the business of the Company or its affiliates,
or from engaging in charitable, community and political activities, or investing his personal
assets in activities in which his participation is that of an investor.

     1.4 Location. The Company shall not require Employee to be based at any office that
is located more than 35 miles from where Employee’s office is located as of the date of this
Agreement, during the Term of this Agreement. If the Company should require Employee to relocate
to an office located more than 35 miles from his current location as a condition of continuing his
employment with the Company and Employee declines to relocate, then Employee’s termination of
employment shall be deemed a termination by the Company without

 

 

Cause, and Employee shall be entitled to severance benefits in accordance with Section 7.1 of
this Agreement.

2. TERM

     2.1 Term. The term of this Agreement (the “Term”) shall commence on the Effective
Date and shall continue for a period of two years from that date, unless such Term is renewed as
provided for in Section 2.2.

     2.2 Renewal. On the date that is one year from the Effective Date of this Agreement,
and on each successive anniversary of that date (the “Anniversary Date”) the Term shall be
automatically renewed and extended for one additional year unless, within 90 days prior to such
Anniversary Date, the Company or Employee provides written notice to the other party that the Term
shall not be so renewed and extended. Employee may, upon not less than 60 days’ written notice to
the Company, elect to treat the Company’s notice of non-renewal of this Agreement as a notice of
termination of Employee’s employment by the Company other than for Cause. If Employee makes such
an election, then (a) Employee shall not be obligated to perform services for the Company after the
expiration of such 60 days’ notice period, and (b) Employee shall be entitled to the severance
benefits provided for in Section 7.1.

3. COMPENSATION AND BENEFITS

     3.1 Base Salary. The Company shall pay Employee a Base Salary, which shall be
$250,000 per year as of the Effective Date, and shall be adjusted annually by the CEO. The Base
Salary shall be payable in accordance with the Company’s usual and customary payroll practices, but
no less frequently than monthly installments.

     3.2 Annual Bonus. The Company shall pay Employee an Annual Bonus each year during the
Term in an amount to be determined by the CEO, based on achievement of performance goals
established or approved by the CEO, all in consultation with the Compensation Committee of the
Company’s Board of Directors (the “Committee”). Employee’s target Annual Bonus amount shall equal
50 percent of Employee’s annual Base Salary, but the actual amount of Employee’s Annual Bonus for
any year may be an amount less than, greater than, or the same as the target amount. Such Annual
Bonus shall be paid to Employee in cash (subject to normal withholding and payroll deductions)
within 120 days following the end of the fiscal year in which such Annual Bonus shall be earned.

     3.3 Employee Benefits. Employee shall be entitled to participate in all employee
benefit plans or programs and to receive all benefits for which salaried employees of the Company
generally are eligible, now or hereafter established and maintained by the Company, to the extent
permissible under the general terms and provisions of such plans or programs and in accordance with
the provisions thereof. Such employee benefits currently include, but are not limited to, group
medical, prescription drug, dental, vision, and life insurance, and participation in the Company’s
401(k) plan and employee stock purchase plan. Notwithstanding the foregoing, nothing in this
Agreement shall preclude the amendment or termination of any such

 

 

plan or program, on the condition that such amendment or termination is applicable generally
to all senior officers of the Company or any subsidiary or affiliate of the Company.

     3.4 Additional Life Insurance. In addition to the employee benefits described in
Section 3.3, the Company shall obtain and/or keep in force life insurance coverage for Employee in
the face amount of not less than $1,000,000, for as long as Employee is employed by the Company.
The policy to be obtained or currently in force that satisfies the requirements of this Section
3.4, and including any replacement or successor policy, is referred to as the “Supplemental
Policy.” The Supplemental Policy shall be structured such that the pre-tax cash surrender value of
the Supplemental Policy shall be not less than $500,000 as of the date Employee attains age 62. If
Employee’s employment terminates as a result of a voluntary termination by Employee, the Company
shall surrender to Employee the Company’s rights to the Company portion of the cash surrender value
under the Supplemental Policy. If Employees’ employment terminates as a result of a termination by
the Company without Cause or following a Change of Control (including, without limitation, any
termination that is deemed to have occurred following a Change of Control in accordance with
Section 8.1), the Company shall continue to pay the premiums for the Supplemental Policy for a
period of two years following the Date of Termination, as provided for under Section 7.1(b) or
Section 8.1(b), as applicable, and at the end of such two-year period shall surrender to Employee
the Company’s rights to the Company portion of the cash surrender value under the Supplemental
Policy.

     3.5 Target Benefit Program. The Company shall make a contribution on Employee’s
behalf to the Greenbrier Leasing Company LLC Manager Owned Target Benefit Plan (the “Target Benefit
Plan”) or to a successor or replacement plan of a similar type that the Company or its affiliates
may adopt, in accordance with the terms of such plan, for each fiscal year in which Employee is
employed by the Company for any portion of such fiscal year.

     3.6 Equity Based Compensation Programs. Employee shall be eligible to participate in
the Company’s restricted stock or options programs, and shall receive such awards as may be
determined by the Committee from time to time.

     3.7 Paid Time Off. During the Term, Employee shall be entitled to five weeks of paid
time off (“PTO”) during each fiscal year of the Company, to be taken at times which do not
unreasonably interfere with performance of Employee’s duties. PTO shall accrue ratably during the
fiscal year. Any unused portion of such PTO may not be carried forward from year-to-year by
Employee, consistent with the Company’s general policy for officers of the Company.

     3.8 Use of Automobile. Employee shall be eligible to participate in the company car
program in the same form as available to other Executive Officers.

     3.9 Business Expenses. The Company shall pay or reimburse Employee for all reasonable
travel or other expenses incurred by Employee in connection with the performance of his duties and
obligations under this Agreement, subject to Employee’s presentation of appropriate vouchers in
accordance with such procedures as the Company may from time-to-time establish for senior officers
and to preserve any deductions for federal income taxation purposes to which the Company may be
entitled.

 

 

4. CONFIDENTIAL INFORMATION

Employee acknowledges that a substantial portion of the information pertaining to the affairs,
business, clients, or customers of the Company or any of its affiliates (any or all of such
entities hereinafter referred to as the “Business”), as such information may exist from time to
time, is confidential information and is a unique and valuable asset of the Business, access to and
knowledge of which are essential to the performance of Employee’s duties under this Agreement.
Employee agrees not to use or disclose any confidential information during the Term or thereafter
other than in connection with performing Employee’s services for the Company in accordance with
this Agreement (except such information as is required by law to be divulged to a government agency
or pursuant to lawful process), or make use of any such confidential information for his own
purposes or for the benefit of any person, firm, association or corporation (except the Business)
and shall use his reasonable efforts to prevent the unauthorized disclosure of any such
confidential information by others. As used in this Section 4, the term “confidential” shall not
include information which, at the time of disclosure or thereafter, is generally available to and
known by the public, other than as a result of a breach of this Agreement by Employee.

5. COVENANT NOT TO COMPETE

In consideration of payment by the Company of the severance payment provided for in Section 7 of
this Agreement, Employee agrees that during his employment and, in the event that Employee
voluntarily terminates his employment with the Company, for a period of one year after such
termination of employment, Employee will not directly or indirectly own (as an asset or equity
owner), or be employed by or consult for, any business in direct competition with the Company in
the same product or service lines in which the Company is engaged at the time Employee terminates
his employment; provided that ownership of one percent (1%) or less of the outstanding stock of a
publicly traded corporation will not be deemed to be a violation of this Agreement.

6. ENFORCEMENT

Employee agrees that the restrictions set forth in Section 5 are reasonable and necessary to
protect the goodwill of the Company. If any of the covenants set forth therein are deemed to be
invalid or unenforceable based on the duration or otherwise, the parties contemplate that such
provisions shall be modified to make them enforceable to the fullest extent permitted by law. In
the event of a breach or threatened breach by Employee of the provisions set forth in Sections 4 or
5, Employee acknowledges that the Company will be irreparably harmed and that monetary damages
shall be an insufficient remedy to the Company. Therefore, notwithstanding the arbitration
provisions of Section 10.1, Employee consents to enforcement of Sections 4 or 5, by means of
temporary or permanent injunction and other appropriate equitable relief in any competent court, in
addition to any other remedies the Company may have under this Agreement or otherwise.

 

 

7. SEVERANCE PAYMENT

     7.1 Effect of Termination of Employment. If, during the Term, the Company terminates
Employee’s employment for any reason other than “Cause” (as defined in Section 7.2), or other than
in the event of a Change of Control (as defined in Section 8.2):

          (a) The Company shall pay Employee a lump sum severance payment equal to the sum of: (i) an
amount equal to two times Employee’s Base Salary as in effect immediately preceding the date of
Employee’s termination of employment, plus (ii) an amount equal to two times the Average Bonus,
plus (iii) the Pro Rated Bonus. “Pro Rated Bonus” shall mean the sum of the following: (x) with
respect to the fiscal year in which such termination occurs, an amount equal to the Average Bonus
multiplied by a fraction, the numerator of which is the number of days during such fiscal year
(which begins September 1) that Employee is employed and the denominator of which is 365; plus (y)
with respect to the fiscal year immediately preceding the fiscal year in which such termination
occurs, the Average Bonus, but if and only if Employee has not received an annual bonus with
respect to such fiscal year. “Average Bonus” shall mean the average of the two most recent annual
bonuses received by the Employee prior to the year in which his termination of employment occurs.
The Company may condition the receipt of the severance payment provided for in this Section 7.1 on
Employee having first provided to the Company a signed, comprehensive release of claims against the
Company and its affiliates as of the date of termination, in the form attached as Exhibit A to this
Agreement. Such severance payment shall be paid within 30 days following the date Employee signs
the release of claims required under this Section 7.1.

          (b) For a period of two years following the Date of Termination (as defined in Section 8.2(d),
the Company shall continue to provide or pay the cost of all employee benefits provided pursuant to
Sections 3.3 and 3.4 to Employee and/or Employee’s family, and shall continue to furnish an
automobile to Employee, at the Company’s expense. If Employee becomes reemployed with another
employer during such period and is eligible to receive such benefits under another employer
provided plan, the Company shall not be obligated to continue to provide such benefits, to the
extent that reasonably similar benefits are available to Employee pursuant to such
employer-provided plan. The Company may satisfy its obligations under this Section 7.1(b), in
part, by paying the applicable premiums for continuation coverage pursuant to COBRA for Employee
and/or his eligible dependents, for as long as such coverage is available under COBRA. “COBRA”
refers to the Consolidated Omnibus Budget Reconciliation Act of 1985.

          (c) All unvested stock options and restricted stock grants held by Employee shall become fully
vested and exercisable as of the Date of Termination.

     7.2 Termination by the Company for “Cause”. In the event that the Company terminates
Employee’s employment for “Cause” prior to expiration of the Term, Employee’s earned but unpaid
Base Salary as of the effective date of such termination shall be paid in full. The Company shall
have no obligation to pay the severance payment described in Section 7.1, and no other benefits
shall be provided, or payments made by the Company pursuant to Section 3 of this Agreement, except
for benefits which shall already have become vested under the terms of programs maintained by the
Company or its affiliates for salaried employees generally. “Cause” shall mean: (a) gross
negligence or willful misconduct in the performance of

 

 

Employee’s material duties, if Employee has failed to fully cure the unsatisfactory
performance within 15 days of receipt of written notice by the Company of the grounds for
termination for Cause; (b) the commission of embezzlement, theft, material fraud or other acts of
dishonesty; (c) violation by Employee of any of the material provisions of this Agreement;
(d) conviction of or entrance of a plea of guilty or nolo contendre to a felony or other crime
which has or may have a material adverse effect on Employee’s ability to carry out his duties under
this Agreement; (e) conduct involving moral turpitude; or (f) failure or refusal to carry out the
reasonable and material directives of the CEO.

8. CHANGE OF CONTROL

     8.1 Termination in the Event of a Change of Control. If, during the Term and
following a Change of Control, the Company terminates Employee’s employment other than for Cause,
or Employee terminates his employment either without any reason during the Window Period or for
Good Reason, then the Company shall pay or provide the benefits set forth in subsections (a) – (c)
below. If a Change of Control occurs and if Employee’s employment with the Company is terminated
prior to the date on which the Change of Control occurs, and if it is reasonably demonstrated by
Employee that such termination of employment (i) was at the request of a third party who has taken
steps reasonably calculated to effect the Change of Control or (ii) otherwise arose in connection
with or anticipation of the Change of Control, then for purposes of Section 8 of this Agreement the
termination shall be deemed to have occurred following a Change of Control:

          (a) The Company shall pay to Employee in a lump sum in cash, within 30 days after the Date of
Termination, the aggregate of the following amounts: Employee’s Base Salary through the Date of
Termination to the extent not previously paid, plus the Pro Rated Bonus (defined in Section
7.1(a)), plus an amount equal to two and one-half times the amount of the sum of (x) the Employee’s
Base Salary and (y) the Average Bonus (as defined in Section 7.1(a). “Base Salary” shall mean
Employee’s current annual base salary in effect at the time a Change in Control occurs.

          (b) For a period of two years following the Date of Termination, the Company shall continue to
provide or pay the cost of all employee benefits provided pursuant to Sections 3.3 and 3.4 to
Employee and/or Employee’s family, and shall continue to furnish an automobile to Employee, at the
Company’s expense. In addition, the Company shall provide Employee with the Change in Control
benefits provided for under the terms of the Target Benefit Plan. If Employee becomes reemployed
with another employer during such period and is eligible to receive employee benefits under another
employer provided plan, the Company shall not be obligated to continue to provide such benefits, to
the extent that reasonably similar benefits are available to Employee pursuant to such
employer-provided plan. The Company may satisfy its obligations under this Section 8.1(b), in
part, by paying the applicable premiums for continuation coverage pursuant to COBRA for Employee
and/or his eligible dependents, for as long as such coverage is available under COBRA.

          (c) All unvested stock options and restricted stock grants held by Employee shall become fully
vested and exercisable as of the Date of Termination.

 

 

     8.2 Definitions. For purposes of this Agreement, the following definitions shall
apply:

          (a) “Change of Control” shall mean the occurrence of any of the following:

	 	(i)	 	The acquisition by any individual, entity or
group (within the meaning of section13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a
“Person”) of beneficial ownership (within the meaning of Rule 13d–3
promulgated under the Exchange Act) of 30 percent or more of the stock
of any class or classes having by the terms thereof ordinary voting
power to elect a majority of the directors of the Company (irrespective
of whether at the time stock of any class or classes of the Company
shall have or might have voting power by reason of the happening of any
contingency); provided, however, that for purposes of this subsection
(a), the following acquisitions will not constitute a Change of
Control: (i) any acquisition directly from the Company; (ii) any
acquisition by the Company or a subsidiary of the Company; or (iii) any
acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the
Company.
	 
	 	(ii)	 	The individuals who, as of the date of this
Agreement, are the members of the Board of Directors of the Company
(the “Incumbent Board”) cease for any reason to constitute a majority
of the Board, unless the election or appointment, or nomination for
election or appointment, of any new member of the Board was approved by
a vote of a majority of the Incumbent Board of Directors, then such new
member shall be considered as though such individual were a member of
the Incumbent Board.
	 
	 	(iii)	 	The consummation of a merger or consolidation
involving the Company if the stockholders owning the capital and
profits (“ownership interests”) of the Company immediately before such
merger or consolidation do not, as a result of such merger or
consolidation, own, directly or indirectly, more than 50 percent of the
combined voting power or ownership interests of the Company, or the
entity resulting from such merger or consolidation, in substantially
the same proportion as their ownership of the combined voting power or
ownership interests outstanding immediately before such merger or
consolidation.
	 
	 	(iv)	 	The sale or other disposition of all or
substantially all of the assets of the Company.

 

 

	 	(v)	 	The dissolution or the complete or partial
liquidation of the Company.

          (b) “Good Reason” shall mean:

	 	(i)	 	A material change in Employee’s status,
positions, duties or responsibility as an Employee of the Company as in
effect immediately prior to the Change of Control which may reasonably
be considered to be an adverse change, except in connection with the
termination of Employee’s employment for Cause or due to death, or
resulting from Employee’s decision for any reason other than for Good
Reason;
	 
	 	(ii)	 	A reduction by the Company of Employee’s Base
Salary exceeding 5 percent of Employee’s prior year’s Base Salary (or
an adverse change in the form or timing of the payment thereof) as in
effect immediately prior to the Change of Control;
	 
	 	(iii)	 	A reduction by the Company of Employee’s
Annual Bonus exceeding 20 percent of Employee’s prior year’s Annual
Bonus (unless such reduction relates to the amount of Annual Bonus
payable to Employee for the achievement of specified performance goals,
or to the attainment of profitability levels of the Company or certain
of its subsidiaries, and the non-achievement of such goals and/or the
non-attainment of profitability levels of the Company or certain of its
subsidiaries, is the reason for the reduction in Employee’s Annual
Bonus compared to the prior year’s bonus);
	 
	 	(iv)	 	the Company’s requiring the Employee to be
based at any office more than 35 miles from where Employee’s office is
located immediately prior to the Change of Control.
	 
	 	(v)	 	the Company fails to require any successor
(whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of
the Company, to assume expressly and agree to perform this Agreement in
the same manner and to the same extent that the Company would be
required to perform this Agreement if no such succession had taken
place, provided that such successor has received at least ten days’
prior written notice from the Company or the Employee of the
requirements of Section 8 of this Agreement.

          (c) “Window Period” shall mean the 30-day period immediately following the first anniversary
of the effective date of the Change of Control transaction.

 

 

          (d) “Date of Termination” shall mean (i) if Employee’s employment is terminated by the Company
for Cause, or by the Employee during the Window Period or for Good Reason, the date of receipt of
the Notice of Termination of any later date specified therein, as the case may be, (ii) if the
Employee’s employment is terminated by the Company other than for Cause, the date on which the
Company notified the Employee of such termination, and (iii) if Employee’s employment is terminated
by reason of the Employee’s death, the date of such death.

     8.3 Notice of Termination. Any termination by the Company for Cause, or by the
Employee without any reason during the Window Period or for Good Reason, shall be communicated by
Notice of Termination to the other party. For purposes of this Agreement, a “Notice of
Termination” means a written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Employee’s employment under the
provision so indicated, and (iii) if the Date of Termination (as defined above) is other than the
date of receipt of such notice, specifies the termination date of such notice. The failure by the
Employee or the Company to set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of the Employee or the
Company hereunder or preclude the Employee or the Company from asserting such fact or circumstance
in enforcing the Employee’s or the Company’s rights hereunder.

     8.4 Limitation on Change of Control Payments and Benefits. Notwithstanding anything
in this Agreement to the contrary, if any of the payments or benefits to be made or provided in
connection with the Agreement, together with any other payments or benefits which the Employee has
the right to receive from the Company or any entity which is a member of an “affiliated group” (as
defined in section 1504(a) of the Internal Revenue Code (the “Code”) without regard to section
1504(b) of the Code) of which the Company is a member constitute an “excess parachute payment” (as
defined in section 280G(b) of the Code), the payments or benefits to be made or provided in
connection with this Agreement will be reduced to the extent necessary to prevent any portion of
such payments or benefits from becoming nondeductible by the Company pursuant to section 280G of
the Code or subject to the excise tax imposed under section 4999 of the Code. The determination as
to whether any such decrease in the payments or benefits to be made or provided in connection with
this Agreement is necessary must be made in good faith by a nationally recognized accounting firm
(the “Accounting Firm”), and such determination will be conclusive and binding upon Employee and
the Company. In the event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Company shall appoint another
nationally recognized accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses
of the Accounting Firm shall be borne solely by the Company. In the event that such a reduction is
necessary, Employee will have the right to designate the particular payments or benefits that are
to be reduced or eliminated so that no portion of the payments or benefits to be made or provided
to Employee in connection with the Agreement will be excess parachute payments subject to the
deduction limitations under section 280G of the Code and the excise tax under section 4999 of the
Code.

 

 

9. COMPLIANCE WITH CODE SECTION 409A

Notwithstanding any other provision of this Agreement to the contrary, in the event that the
Employee is determined to be a “specified employee” within the meaning of Treas. Reg. §1.409A-1(i),
then no severance payments or benefits shall be made to the Employee pursuant this Agreement before
the date that is six months after the date of the Employee’s separation from service, as that term
is defined in Treas. Reg. §1.409A-1(h), to the extent such payments or benefits, if otherwise paid
in accordance with the terms of this Agreement, would cause Employee to be subject to excise tax
penalties pursuant to section 409A of the Code and Treasury Regulations promulgated thereunder
(“§409A”). To the extent that this Agreement constitutes a “deferred compensation arrangement”
within the meaning of §409A, it is the parties intent that this Agreement shall fully comply with
the requirements of §409A, and this Agreement shall be interpreted and administered consistent with
that intent.

10. GENERAL PROVISIONS

     10.1 Dispute Resolution. The parties shall attempt to resolve any dispute relating to
this Agreement through mediation upon written request of either party to submit the dispute to
mediation. The parties will jointly appoint a mutually acceptable mediator; if the parties are
unable to agree upon appointment of a mediator within 15 days of the date of request for mediation,
either party may deem mediation to have failed to resolve the dispute, and may submit the dispute
to arbitration in accordance with this Section 10.1. Upon appointment of a mediator, the parties
agree to participate in good faith in mediation and negotiations relating thereto for 15 days. Any
dispute relating to this Agreement that cannot be resolved by the parties or through mediation will
be resolved by arbitration as provided in this Section 10.1. Disputes will be resolved by
arbitration administered by the Arbitration Service of Portland, Inc. Judgment upon the
arbitration award may be entered in any court having jurisdiction thereof, and the resolution of
the dispute as determined by the arbitrator will be final and binding on the parties. Any such
arbitration will be conducted in Portland, Oregon. If the total amount in dispute is less than
$100,000, there will be one arbitrator. If the total amount in dispute is $100,000 or more, three
arbitrators will hear the dispute. The arbitrator(s) must have experience as a state or federal
judge or such alternate qualifications as the parties may agree upon. The Company shall pay the
fees and costs of the arbitrator(s) and the hearing and each party shall be responsible for its own
expenses and those of its counsel and representatives.

     Any party may seek, without inconsistency with this Agreement, from any court located in the
state of Oregon any injunctive or provisional relief that may be necessary to protect the rights or
property of that party pending the establishment of the arbitral tribunal (or pending the arbitral
tribunal’s determination of the merits of the controversy).

     The parties will be allowed discovery in accordance with the Federal Rules of Civil Procedure.
The Federal Rules of Evidence shall govern the conduct of the arbitration hearing.

     Except as otherwise provided in this Section, the arbitrator will have the authority to award
any remedy or relief that a court of Oregon could order or grant.

 

 

     Unless otherwise agreed to by the parties, the arbitrator’s decision and award must be in
writing, signed by the arbitrator and include an explanation of the arbitrator’s reasoning.

     Neither party nor the arbitrator may disclose the existence, content, or results of any
arbitration under this section without the prior written consent of the other party to this
Agreement.

     This Section 10.1 shall survive termination, amendment or expiration of any of the agreements
or relationships between the parties.

     10.2 Withholding Taxes. The Company may directly or indirectly withhold from any
payments made under this Agreement all federal, state, city or other taxes and other amounts as
permitted or required by law, rule or regulation.

     10.3 Notices. All notices, requests, demands and other communications required or
permitted hereunder shall be given in writing and shall be deemed to have been duly given if
delivered or mailed, postage prepaid, by overnight mail as follows:

	 	(a)	 	To the Company:	 
	 
	 	 	 	The Greenbrier Companies, Inc.

Director — Human Resources Department

One Centerpointe Drive, Suite 200

Lake Oswego, OR 97035	 
	 
	 	(b)	 	To Employee:	 
	 
	 	 	 	James T. Sharp	 
	 	 	 	 	 
	 
	 	 	 	 	 
	 
	 	(c)	 	With copies to:	 
	 
	 	 	 	The Greenbrier Companies, Inc.

One Centerpointe Drive, Suite 200

Lake Oswego, OR 97035

Attention: General Counsel	 

or to such other address as either party shall have previously specified in writing to the other.

     10.4 Binding Agreement. This Agreement shall be binding upon, and shall inure to the
benefit of, Employee and the Company and their respective permitted successors, assigns, heirs,
beneficiaries and representatives. Because of the unique and personal nature of Employee’s duties
under this Agreement, neither this Agreement nor any rights or obligations under this Agreement
shall be assignable by Employee.

 

 

     10.5 Governing Law. The validity, interpretation, performance, and enforcement of
this Agreement shall be governed by the laws of the State of Oregon without regard to the conflict
of laws rules of Oregon.

     10.6 Counterparts. This Agreement may be executed in any number of counterparts, each
of which, when executed, shall be deemed to be an original and all of which together shall be
deemed to be one and the same instrument.

     10.7 Integration. This Agreement contains the complete, final and exclusive agreement
of the parties relating to Employee’s employment, and supersedes all prior oral and written
employment agreements or arrangements between the parties.

     10.8 Amendment. This Agreement cannot be amended or modified except by a written
agreement signed by Employee and the Company.

     10.9 Waiver. No term, covenant or condition of this Agreement or any breach thereof
shall be deemed waived, except with the written consent of the party against whom the waiver is
claimed, and any such waiver shall not bee deemed to be a waiver of any preceding or succeeding
breach of the same or any other term, covenant, condition or breach.

     10.10 Severability. The finding by a court of competent jurisdiction of the
unenforceability, invalidity or illegality of any provision of this Agreement shall not render any
other provision of this Agreement unenforceable, invalid or illegal. Such court shall have the
authority to modify or replace the invalid or unenforceable term or provision with a valid and
enforceable term or provision which most accurately represents the parties’ intention with respect
to the invalid or unenforceable term or provision.

	 	 	 	 	 
	 	THE GREENBRIER COMPANIES, INC.:

 	 
	 	By:  	/s/ Mark J. Rittenbaum
 	 
	 	 	 	 
	 	 	 	 
	 
	 	EMPLOYEE:

 	 
	 	/s/ James T. Sharp
 	 
	 	James T. Sharp 	 
	 	 	 
	 

 

 

RELEASE OF CLAIMS

Employee, together with his heirs, family members, executors, administrators, agents and assigns
(the “Employee”) hereby waives any legal rights and releases and forever discharges The Greenbrier
Companies, Inc., (“Greenbrier”) its subsidiaries, affiliates, officers, directors, shareholders,
employees, agents and attorneys (collectively, the “Released Parties” and individually, a “Released
Party”) from any and all liabilities, demands, claims, suits, actions, charges, damages, judgments,
levies or executions, whether known or unknown, liquidated, fixed, contingent, direct or indirect,
which have been, could have been or could be raised against any such Released Party by Employee and
which relate in any way to Employee’s employment by Greenbrier or termination of that employment
(but excluding any amounts payable to Employee pursuant to Section 7.1(a) of the Employment
Agreement dated April 7, 2008 between Greenbrier and Employee).

     Employee acknowledges the full and final waiver and release of all claims which Employee has
or may have against any Released Party, specifically including without limitation all claims for
relief or remedy of any type under any state or federal laws, including but not limited to the
federal and state statutes relating to civil rights, employment discrimination (based on race,
color, age, sex, national origin, marital status, handicap, veterans status, religion, workers
compensation and family relationship), labor, employment rights or benefits, or relating to
employment or termination of employment, wage payments, all as amended, and including but not
limited to claims based on breach of fiduciary duty, misrepresentation, fraud, defamation, tortious
conduct of any type arising from or relating to Employee’s employment by Greenbrier or any
termination of such employment, or any other common law theories; and including but not limited to
any claims for additional compensation, back pay or benefits of any type, and including but not
limited to any claim for attorney fees or costs, for reinstatement or reemployment, or for
compensatory or punitive damages under any applicable statutes or common law theories, except to
the extent that waiver or release of future claims is specifically prohibited by law.

     Employee acknowledges that Employee is waiving and releasing any rights he may have under the
Age Discrimination in Employment Act of 1967 (“ADEA”) and that this Release is knowing and
voluntary. Employee and Greenbrier agree that this Release does not apply to any rights or claims
that may arise under ADEA after the date this Release is executed by Employee. Employee
acknowledges that the consideration given for this Release is in addition to anything of value to
which Employee was already entitled. Employee further acknowledges that he has been advised by
this writing that: (1) he should consult with an attorney prior to executing this Release; (2) he
has up to twenty one (21) days within which to consider this Release; (3) he has seven (7) days
following his execution of this Release to revoke this Release; (4) this Release will not be
effective until the revocation period has expired; and (5) nothing in this Release prevents or
precludes Employee from challenging or seeking a determination in good faith of the validity of
this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs for
doing so, unless specifically authorized by federal law.

EMPLOYEE:

	 	 	 	 	 
	 
	 	 	 
	James T. Sharp

	 	 
	Date signed:exv10w1

 

Exhibit 10.1

CHANGE OF CONTROL AGREEMENT

     This AGREEMENT is entered into by and between The Greenbrier Companies, Inc., an Oregon
corporation (the “Company”), and James Cruckshank (the “Employee”) as of the 10 day of April, 2008.

     The Board of Directors of the Company (the “Board”) has determined that it is in the best
interests of the Company and its shareholders to assure that the Company will have the continued
dedication of the Employee, notwithstanding the possibility or occurrence of a Change of Control
(as defined in Section 2) of the Company. The Board believes it is imperative to diminish the
inevitable distraction of the Employee by virtue of the personal uncertainties and risks created by
a pending or potential Change of Control and to encourage the Employee’s full attention and
dedication to the Company currently and in the event of any pending or potential Change of Control,
and to provide the Employee with compensation and benefits arrangements upon a Change of Control
which ensure that the compensation and benefits expectations of the Employee will be satisfied and
which are competitive with those of other corporations. Therefore, in order to accomplish these
objectives, the Board has caused the Company to enter into this Agreement.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1. Intent; Certain Definitions.

     The intent of this Agreement is to entitle the Employee to receive from the Company certain
payments and benefits in the event that the Employee’s employment is terminated following a Change
of Control, subject to the terms, conditions and limitations set forth herein.

     (a) The “Effective Date” shall mean the first date during the Change of Control Period (as
defined in Section 1(b)) on which a Change of Control occurs, subject to Section 1(c), below.

     (b) The “Change of Control Period” shall mean the period commencing on the Effective Date and
ending on the second anniversary of such date.

     (c) Notwithstanding any other provision of this Agreement to the contrary, if a Change of
Control occurs and if the Employee’s employment with the Company is terminated prior to the date on
which the Change of Control occurs, and if it is reasonably demonstrated by the Employee that such
termination of employment (i) was at the request of a third party who has taken steps reasonably
calculated to effect the Change of Control or (ii) otherwise arose in connection with or
anticipation of the Change of Control, then for all purposes of this Agreement the “Effective Date”
shall mean the date immediately prior to the date of such termination of employment, and such
termination shall be deemed to have occurred during the Change of Control Period.

2. Change of Control.

For the purpose of this Agreement, a “Change of Control” shall mean the occurrence of any of

 

 

the following:

     (a) The acquisition by any individual, entity or group (within the meaning of section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial
ownership (within the meaning of Rule 13d—3 promulgated under the Exchange Act) of 30 percent or
more of the stock of any class or classes having by the terms thereof ordinary voting power to
elect a majority of the directors of the Company (irrespective of whether at the time stock of any
class or classes of the Company shall have or might have voting power by reason of the happening of
any contingency); provided, however, that for purposes of this subsection (a), the following
acquisitions will not constitute a Change of Control: (i) any acquisition directly from the
Company; (ii) any acquisition by the Company or a subsidiary of the Company; or (iii) any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company.

     (b) The individuals who, as of the date of this Agreement, are the members of the Board of
Directors of the Company (the “Incumbent Board”) cease for any reason to constitute a majority of
the Board, unless the election or appointment, or nomination for election or appointment, of any
new member of the Board was approved by a vote of a majority of the Incumbent Board of Directors,
then such new member shall be considered as though such individual were a member of the Incumbent
Board.

     (c) The consummation of a merger or consolidation involving the Company if the stockholders
owning the capital and profits (“ownership interests”) of the Company immediately before such
merger or consolidation do not, as a result of such merger or consolidation, own, directly or
indirectly, more than 50 percent of the combined voting power or ownership interests of the
Company, or the entity resulting from such merger or consolidation, in substantially the same
proportion as their ownership of the combined voting power or ownership interests outstanding
immediately before such merger or consolidation.

     (d) The sale or other disposition of all or substantially all of the assets of the Company.

     (e) The dissolution or the complete or partial liquidation of the Company.

3. Termination of Employment.

     (a) Death or Disability. The Employee’s employment shall terminate automatically upon the
Employee’s death during the Change of Control Period. If the Company determines in good faith that
the Disability of the Employee has occurred during the Change of Control Period (pursuant to the
definition of Disability set forth below), it may give to the Employee written notice in accordance
with Section 10(b) of its intention to terminate the Employee’s employment. In such event, the
Employee’s employment with the Company shall terminate effective on the 30th day after receipt of
such notice by the Employee (the “Disability Effective Date”), provided that, within the 30 days
after such receipt, the Employee shall not have returned to full-time performance of the Employee’s
duties. For purposes of this Agreement, “Disability” shall mean the absence of the Employee from
the Employee’s duties with the Company on a full-time
basis for 180 consecutive business days as a
result of incapacity due to mental or physical illness

Change of Control Agreement

Page 2

 

 

which is determined to be total and permanent by a physician selected by the Company or its
insurers and acceptable to the Employee or the Employee’s legal representative (such agreement as
to acceptability not to be withheld unreasonably).

     (b) Cause. The Company may terminate the Employee’s employment during the Change of Control
Period for Cause. For purposes of this Agreement, “Cause” shall mean (i) a willful and continued
failure to perform substantially the Employee’s duties with the Company, other than such failure
(A) resulting from Employees’ Disability or incapacity due to bodily injury or physical or mental
illness; or (B) for which a demand for substantial performance is delivered to Employee which
specifically identifies the manner in which Employee has not substantially performed Employee’s
duties and provides a 30-day period during which time Employee may take corrective actions, which
period of time has not yet expired; or (ii) the conviction of the Employee (including a plea of
nolo contendere) of a felony or gross misdemeanor under federal or state law which is materially
and demonstrably injurious to the Company or which impairs the Employee’s ability to perform
substantially the Employee’s duties for the Company.

     (c) Good Reason. The Employee’s employment may be terminated during the Change of Control
Period by the Employee for Good Reason. For purposes of this Agreement, “Good Reason” shall mean:

          (A) A material change in Employee’s status, positions, duties or responsibility as an
employee of the Company as in effect immediately prior to the Effective Date which may
reasonably be considered to be an adverse change, except in connection with the termination
of Employee’s employment for Cause or due to Disability or death, or resulting from
Employee’s decision for any reason other than for Good Reason;

          (B) A reduction by the Company of Employee’s base salary exceeding 5 percent of
Employee’s prior year’s base salary (or an adverse change in the form or timing of the
payment thereof) as in effect immediately prior to the Effective Date;

          (C) A reduction by the Company of Employee’s annual bonus exceeding 20 percent of
Employee’s prior year’s annual bonus (unless such reduction relates to the amount of annual
bonus payable to Employee for the achievement of specified performance goals or to the
attainment of profitability levels of the Company or certain of its subsidiaries, and the
non-achievement of such goals and/or the non-attainment of profitability levels of the
Company or certain of its subsidiaries is the reason for the reduction in Employee’s annual
bonus compared to the prior year’s bonus);

          (D) the Company’s requiring the Employee to be based at any office more than 35 miles
from where Employee’s office is located immediately prior to the Effective Date;

          (E) any purported termination by the Company of the Employee’s employment otherwise
than as expressly permitted by this Agreement; or

          (F) any failure by the Company to comply with and satisfy Section

 Change of Control Agreement

Page 3

 

 

10(c), provided that such successor has received at least ten days’ prior written
notice from the Company or the Employee of the requirements of Section 10(c).

For purposes of this Section 3(c), any good faith determination of “Good Reason” made by the
Employee shall be conclusive.

     (d) Notice of Termination. Any termination by the Company for Cause, or by the Employee for
Good Reason, shall be communicated by Notice of Termination to the other party hereto given in
accordance with Section 10(b). For purposes of this Agreement, a “Notice of Termination” means a
written notice which (i) indicates the specific termination provision in this Agreement relied
upon, (ii) to the extent applicable sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Employee’s employment under the provision so
indicated, and (iii) if the Date of Termination (as defined below) is other than the date of
receipt of such notice, specifies the termination date of such notice. The failure by the Employee
or the Company to set forth in the Notice of Termination any fact or circumstance which contributes
to a showing of Good Reason or Cause shall not waive any right of the Employee or the Company
hereunder or preclude the Employee or the Company from asserting such fact or circumstance in
enforcing the Employee’s or the Company’s rights hereunder.

     (e) Date of Termination. “Date of Termination” means (i) if the Employee’s employment is
terminated by the Company for Cause, or by the Employee for Good Reason, the date of receipt of the
Notice of Termination or any later date specified therein, as the case may be, (ii) if the
Employee’s employment is terminated by the Company other than for Cause or Disability, the Date of
Termination shall be the date on which the Company notifies the Employee of such termination, and
(iii) if the Employee’s employment is terminated by reason of death or Disability, the Date of
Termination shall be the date of death of the Employee or the Disability Effective Date, as the
case may be.

4. Obligations of the Company upon Termination.

     (a) Good Reason; Other than for Cause, Death or Disability. If, during the Change of Control
Period, the Company shall terminate the Employee’s employment other than for Cause or Disability or
the Employee shall terminate employment for Good Reason:

     (i) Subject to Section 4(e) below, the Company shall pay to the Employee in a lump sum
in cash within 30 days after the Date of Termination the aggregate of the following amounts:

          (A) the Employee’s Base Salary through the Date of Termination and any accrued vacation
pay, in each case to the extent not previously paid (the sum of such amounts shall be
hereinafter referred to as the “Accrued Obligations”); and

          (B) the amount equal to one and one-half times the amount of the sum of (x) the
Employee’s Base Salary and (y) the Average Bonus (such amount shall be hereinafter referred
to as the “Severance Amount”).

     (ii) “Base Salary” shall mean Employee’s current annual base salary in effect

 Change of Control Agreement

Page 4

 

 

at the time a Change in Control occurs. “Average Bonus” shall mean the average of the
two most recent annual bonuses received by the Employee prior to the year in which a Change
of Control occurs.

     (iii) To the extent not theretofore paid or provided, the Company shall timely pay or
provide to the Employee and/or the Employee’s family any other amounts or benefits required
to be paid or provided or which the Employee and/or the Employee’s family is eligible to
receive pursuant to this Agreement and under any plan, program, policy or practice or
contract or agreement of the Company and its affiliated companies as in effect and
applicable generally to other peer Employees of the Company and its affiliated companies and
their families during the 90—day period immediately preceding the Effective Date or, if
more favorable to the Employee, as in effect generally thereafter with respect to other peer
Employees of the Company and its affiliated companies and their families (such other amounts
and benefits shall be hereinafter referred to as the “Other Benefits”).

     (iv) All unvested stock options and restricted stock grants held by Employee shall
become fully vested and exercisable as of the Date of Termination.

     (v) For a period of one and one-half years following the Date of Termination (the
“Employee Benefit Continuation Period”), the Company shall continue to provide all insured
and self-insured employee benefits (including, without limitation, medical, life, dental,
vision and disability plans) to the Employee and/or the Employee’s family reasonably similar
to those which would have been provided to them in accordance with the plans, programs,
practices and policies if the Employee’s employment had not been terminated (such
continuation of benefits shall be referred to as “Employee Benefit Continuation”). If the
Employee becomes reemployed with another employer during the Employee Benefit Continuation
Period and is eligible to receive medical or other employee benefits under another employer
provided plan, the Company shall not be obligated to continue to provide the medical and
other employee benefits described herein, to the extent that reasonably similar medical or
other benefits are available to the Employee pursuant to such employer-provided plan. For
purposes of Employee’s rights to continuation coverage pursuant to COBRA, Employee shall be
considered to have remained employed until, and Employee’s COBRA rights shall be triggered
by, the end of the Employee Benefit Continuation Period. “COBRA” refers to the Consolidated
Omnibus Budget Reconciliation Act of 1985.

     (b) Death. If the Employee’s employment is terminated by reason of the Employee’s death
during the Change of Control Period, this Agreement shall terminate without further obligations to
the Employee’s legal representatives under this Agreement, other than for (i) payment of Accrued
Obligations (which shall be paid to the Employee’s estate or beneficiary, as applicable, in a lump
sum in cash within 30 days of the Date of Termination); and (ii) the timely payment or provision of
the Employee Benefit Continuation and Other Benefits.

     (c) Disability. If the Employee’s employment is terminated by reason of the Employee’s
Disability during the Change of Control Period, this Agreement shall terminate without further
obligations to the Employee, other than for (i) payment of Accrued Obligations

 Change of Control Agreement

Page 5

 

 

(which shall be paid to the Employee in a lump sum in cash within 30 days of the Date of
Termination); and (ii) the timely payment of provision of the Employee Benefit Continuation and
Other Benefits.

     (d) Cause; Other than for Good Reason. If the Employee’s employment shall be terminated for
Cause during the Change of Control Period, this Agreement shall terminate without further
obligations to the Employee other than the obligation to pay to the Employee Annual Base Salary
through the Date of Termination to the extent previously unpaid. If the Employee terminates
employment during the Change of Control Period, excluding a termination for Good Reason, this
Agreement shall terminate without further obligations to the Employee, other than for Accrued
Obligations and the timely payment or provision of Other Benefits. In such case, all Accrued
Obligations shall be paid to the Employee in a lump sum in cash within 30 days of the Date of
Termination.

     (e) Six-Month Payment Delay for Specified Employees. Notwithstanding any other provision of
this Agreement to the contrary, in the event that the Employee is determined to be a “specified
employee” within the meaning of Treas. Reg. §1.409A-1(i), then no payments shall be made to the
Employee pursuant to this Agreement before the date that is six months after the date of the
Employee’s separation from service, as that term is defined in Treas. Reg. §1.409A-1(h).

5. Non-Exclusivity of Rights.

Except as provided in Sections 4(a)(ii), 4(b) and 4(c), nothing in this Agreement shall prevent or
limit the Employee’s continuing or future participation in any plan, program, policy or practice
provided by the Company or any of its affiliated companies and for which the Employee may qualify,
nor shall anything herein limit or otherwise affect such rights as the Employee may have under any
contract or agreement with the Company or any of its affiliated companies. Amounts which are
vested benefits or which the Employee is otherwise entitled to receive under any plan, policy,
practice of program of or any contract or agreement with the Company or any of its affiliated
companies at or subsequent to the Date of Termination shall be payable in accordance with such
plan, policy, practice or program or contract or agreement except as explicitly modified by this
Agreement.

6. Full Settlement; Resolution of Disputes.

     (a) The Company’s obligation to make the payments provided for in this Agreement and otherwise
to perform its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have against the Employee
or others. In no event shall the Employee be obligated to seek other employment or take any other
action by way of mitigation of the amounts payable to the Employee under any of the provisions of
this Agreement and, except as provided in Section 4(a)(ii), such amounts shall not be reduced
whether or not the Employee obtains other employment. The Company agrees to pay promptly as
incurred, to the full extent permitted by law, all legal fees and expenses which the Employee may
reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the
Employee or others of the validity or enforceability of, or liability under, any provision of this
Agreement or any guarantee

 Change of Control Agreement

Page 6

 

 

of performance thereof (including as a result of any contest by the Employee about the amount
of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at
the applicable Federal rate provided for in section 7872(f)(2)(A) of the Internal Revenue Code (the
“Code”).

     (b) If there shall be any dispute between the Company and the Employee (i) in the event of any
termination of the Employee’s employment by the Company, whether such termination was for Cause, or
(ii) in the event of any termination of employment by the Employee, whether Good Reason existed,
then, unless and until there is a final, nonappealable judgment by a court of competent
jurisdiction declaring that such termination was for Cause or that the determination by the
Employee of the existence of Good Reason was not made in good faith, the Company shall pay all
amounts, and provide all benefits, to the Employee and/or the Employee’s family or other
beneficiaries, as the case may be, that the Company would be required to pay or provide pursuant to
Section 4(a) as though such termination were by the Company without Cause, or by the Employee with
Good Reason; provided, however, that the Company shall not be required to pay any disputed amount
pursuant to this paragraph except upon receipt of an undertaking by or on behalf of the Employee to
repay all such amounts to which the Employee is ultimately adjudged by such court not to be
entitled.

7. Limitation on Payments and Benefits.

Notwithstanding anything in this Agreement to the contrary, if any of the payments or benefits to
be made or provided in connection with the Agreement, together with any other payments or benefits
which the Employee has the right to receive from the Company or any entity which is a member of an
“affiliated group” (as defined in section 1504(a) of the Code without regard to section 1504(b) of
the Code) of which the Company is a member constitute an “excess parachute payment” (as defined in
section 280G(b) of the Code), the payments or benefits to be made or provided in connection with
this Agreement will be reduced to the extent necessary to prevent any portion of such payments or
benefits from becoming nondeductible by the Company pursuant to section 280G of the Code or subject
to the excise tax imposed under section 4999 of the Code. The determination as to whether any such
decrease in the payments or benefits to be made or provided in connection with this Agreement is
necessary must be made in good faith by a nationally recognized accounting firm (the “Accounting
Firm”), and such determination will be conclusive and binding upon Employee and the Company. In
the event that the Accounting Firm is serving as accountant or auditor for the individual, entity
or group effecting the Change of Control, the Company shall appoint another nationally recognized
accounting firm to make the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall
be borne solely by the Company. In the event that such a reduction is necessary, Employee will
have the right to designate the particular payments or benefits that are to be reduced or
eliminated so that no portion of the payments or benefits to be made or provided to Employee in
connection with the Agreement will be excess parachute payments subject to the deduction
limitations under section 280G of the Code and the excise tax under section 4999 of the Code.

 Change of Control Agreement

Page 7

 

 

8. Confidential Information.

The Employee shall hold in a fiduciary capacity for the benefit of the Company all secret or
confidential information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by the Employee during
the Employee’s employment by the Company or any of its affiliated companies and which shall not be
or become public knowledge (other than by acts by the Employee or representatives of the Employee
in violation of this Agreement). After termination of the Employee’s employment with the Company,
the Employee shall not, without the prior written consent of the Company or as may otherwise be
required by law or legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it. In no event shall an asserted violation
of the provisions of this Section 8 constitute a basis for deferring or withholding any amounts
otherwise payable to the Employee under this Agreement.

9. Nondisparagement; Cooperation.

     (a) Employee agrees not to disparage the Company or its officers, directors, employees,
shareholders or agents, in any manner likely to be harmful to them or their business, business
reputations or personal reputations. Employee shall respond accurately and fully to any question,
inquiry or request for information when required by legal process, notwithstanding the foregoing.

     (b) During the Change of Control Period and during the twelve month period following the Date
of Termination, Employee will cooperate with the Company in responding to the reasonable requests
of the Board, the Company’s or its General Counsel, in connection with any and all existing or
future litigation, arbitrations, mediations or investigations brought by or against the Company, or
its affiliates, agents, officers, directors or employees, whether administrative, civil or criminal
in nature, in which the Company reasonably deems Employee’s cooperation necessary or desirable. In
such matters, Employee agrees to provide the Company with reasonable advice, assistance and
information, including offering and explaining evidence, providing sworn statements, and
participating in discovery and trial preparation and testimony. Employee also agrees to promptly
send the Company copies of all correspondence (for example, but not limited to, subpoenas) received
by Employee in connection with any such legal proceedings, unless Employee is expressly prohibited
by law from so doing. The Company will reimburse Employee for reasonable out-of-pocket expenses
incurred by Employee as a result of Employee’s cooperation with the obligations described in this
Section 9(b), within 30 days of the presentation of appropriate documentation thereof, in
accordance with the Company’s standard reimbursement policies and procedures.

10. Successors.

     (a) This Agreement is personal to the Employee and without the prior written consent of the
Company shall not be assignable by the Employee otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by the Employee’s
legal representatives.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company

Change of Control Agreement

Page 8

 

 

and its successors and assigns.

     (c) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

11. Miscellaneous.

     (a) This Agreement shall be governed by and construed in accordance with the laws of the State
of Oregon, without reference to principles of conflict of laws. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

If to the Employee:

James Cruckshank

_________________

_________________

_________________

If to the Company:

The Greenbrier Companies, Inc.

Attention: VP Administration

One Centerpointe Drive, Suite 200

Lake Oswego, OR 97035

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

     (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (d) The Company may withhold from any amounts payable under this Agreement such Federal, state
or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

     (e) The Employee’s or the Company’s failure to insist upon strict compliance with

 

Change of Control Agreement

Page 9

 

any provision hereof or any other provision of this Agreement or the failure to assert any
right the Employee or the Company may have hereunder, including, without limitation, the right of
the Employee to terminate employment for Good Reason pursuant to Section 3(c)(A)—(E), shall not be
deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

     (f) The Employee and the Company acknowledge that, except as may otherwise be provided under
any other written agreement between the Employee and the Company, the employment of the Employee by
the Company is “at will” and, prior to the Effective Date, may be terminated by either the Employee
or the Company at any time. Moreover, if prior to the Effective Date, the Employee’s employment
with the Company terminates, then the Employee shall have no further rights under this Agreement.

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

	 	 	 	 	 
	THE GREENBRIER COMPANIES, INC.

 	 	 
	By:  	/s/ Mark J. Rittenbaum 	 	 
	 	 	 	 	 
	 	 	 	 
	 
	EMPLOYEE:

 	 	 
	 	/s/ James W. Cruckshank	 	 
	 	 	 
	 	 	 
	 

Change of Control Agreement

Page 10

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