Document:

exv10w1

EXHIBIT 10.1

SEPARATION AGREEMENT AND GENERAL RELEASE

     This Separation Agreement and General Release (hereinafter, “Separation Agreement”) is made
and entered into by and between Lawrence A. Denton (“Denton”), on the one hand, and Dura Automotive
Systems, Inc. and all of its subsidiaries, related entities and affiliates (collectively referred
to as “Dura” and/or “Company”), on the other hand.

RECITALS

     A. Dura employed Denton as its Chief Executive Officer pursuant to a Letter Agreement dated
December 23, 2002 (“Letter Agreement”), and amended May 8, 2008 (“Letter Agreement Amendment”).

     B. Dura and Denton entered into a Change of Control Agreement dated June 16, 2004 (“Change of
Control Agreement”), and amended May 8, 2008 (“Change of Control Amendment”).

     C. Dura established the 2003 Supplemental Executive Retirement Plan, which was amended on and
as of January 15, 2003 and further amended on May 8, 2008 (“2003 SERP”) which Plan covered Denton.

     On July 15, 2008, Denton’s employment at Dura as its CEO (as well as an Officer and Director in all
capacities) ended, and his employment in any capacity with Dura will end on December 31, 2008.
Dura acknowledges that Denton was not terminated for gross misconduct (as that term is used in the
Letter Agreement) or Cause (as that term is used in the 2003 SERP), and was unrelated to either a
Sale of the Company (as that term is defined in the Letter Agreement Amendment) or a Change of
Control (as that term is defined in the Change of Control Agreement), nor in contemplation of a
Change of Control (as that term is defined in the Change of Control Agreement).

 

 

     D. Denton is entitled to certain compensation, benefits and severance payments in connection with
his termination of employment with Dura, and Denton is subject to certain non-competition,
confidentiality and other restrictions; all of these entitlements and restrictions are solely as
provided in this Separation Agreement.

     E. Denton and Dura desire to enter into this Seperation Agreement to settle fully and finally
all differences between them, including those arising in any way out of Denton’s employment with
Dura and the cessation thereof, including releases of claims against each other as set forth in
this Separation Agreement.

     F. On July 16, 2008, Denton and Dura entered into a signed, written term sheet (“Term Sheet”)
regarding Denton’s separation from Dura, which term sheet called for the parties to reduce the
terms to this formal Separation Agreement.

     NOW, THEREFORE, in consideration of the premises and promises herein contained, IT IS AGREED
AS FOLLOWS:

AGREEMENT

     1. No Admission of Liability: It is agreed that this Agreement is not to be construed
in any way as an admission of any liability whatsoever by the Released Parties or Denton, and that
any such liability has been expressly denied.

     2. Transition Date/Separation Date: Dura and Denton agree that Denton’s employment at
Dura as its CEO ended by July 15, 2008 (“Transition Date”), and Denton has transitioned to a
consulting role within the Company which role shall continue until December 31, 2008 (“Separation
Date”). As of the Separation Date, Denton will cease to be employed by the Company. His cessation
of employment will be characterized as

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a voluntary resignation. In conjunction with Denton’s transition, Denton has resigned his
membership on Dura’s Board of Directors, as well as being a Director or Officer of any and all Dura
entities/subsidiaries, and by signing this Separation Agreement hereby reiterates those
resignations.

     3. Consulting Position: Denton will continue as an employee consultant to Dura, and
will continue to be paid his current monthly rate of base salary (annualized at a gross amount of
$844,000.00 inclusive of flex pay) and to receive all employee benefits and executive perquisites
(including flex pay), from the Transition Date through and including the Separation Date (the
Transition Date through and including the Separation Date hereinafter being referenced as the
“Consulting Period”). As a consultant during the Consulting Period, Denton will perform such
duties as reasonably directed by Dura’s Board of Directors in its sole discretion; provided,
however, Denton shall not be prohibited from obtaining new employment during the Consulting Period
as long as it does not unreasonably prevent him from performing his duties as a consultant to Dura.
During the Consulting Period, Denton agrees to reasonably cooperate with the Company and its Board
of Directors. During the Consulting Period, Denton shall be permitted to maintain his current home
offices and Dura shall continue to support such offices with its current level of office equipment,
email address and access, and technology support, including secretarial assistance; provided,
however, that if Denton obtains new employment during the Consulting Period, then Dura’s
obligations to support such offices with its current level of office equipment, email address and
access, and technology support, including secretarial assistance, shall immediately cease, and it
shall be Dura’s sole option whether or not to continue such (with the understanding that if Dura
does not so continue, then Denton will not be required to

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perform consulting services that would require the use of such home equipment or services).
At the Separation Date, Denton shall be entitled to retain any home office equipment at his
discretion. As soon as practicable after the Transition Date, Denton shall return to Dura the two
(2) Company-provided computers/laptops in his possession (the computers/laptops in his home offices
in Birmingham, MI and Aspen, CO), and Dura shall contemporaneously provide Denton with two (2)
equivalent computers/laptops.

     4. Bonus: Dura will pay Denton a one-time bonus in the gross amount of $800,000.00
for having led the Company out of bankruptcy. This bonus will be paid on the next regularly
scheduled Company pay date following the Transition Date.

     5. Benefits: Upon the Separation Date, Dura will pay Denton all vested accrued
employee benefits as of the Separation Date in accordance with their terms and conditions,
including but not limited to his vested account balance under the Company’s 401K Plan and his
vested accrued pension benefit under the Company’s qualified defined benefit plan. Denton shall
retain the right to convert any Company-owned life insurance as of the Separation Date.

     6. SERP: In consideration for Denton’s compliance with the conditions under Section
2.8 of the SERP (including the modified non-competition and non-solicitation restrictions), as well
as the terms of this Separation Agreement, Denton will receive his vested accrued benefits under
the 2003 SERP, in accordance with its terms and conditions, except as modified herein. Such
benefits will be payable as a single life annuity (with 10 years certain) commencing on January 1,
2009. Notwithstanding the foregoing, such annuity payments will be delayed for a period not to
exceed six months and one day; provided, such delayed payments shall be payable in a lump sum

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payment immediately following the period of delay (which is July 2, 2009), and the remaining
annuity payments shall continue to be paid on their original annuity payment schedule. In the
event of a change in the ownership or effective control of the Company, or a change in the
ownership of a substantial portion of the assets of the Company, which qualifies as a “change in
control event” as described in Treasury Regulation Section 1.409A-3(i)(5), the lump sum present
value (calculated using the actuarial factors specified in the 2003 SERP for lump sum calculations)
of Denton’s remaining unpaid vested accrued benefits under the 2003 SERP shall be paid to Denton in
a lump sum on the date of such change in control event.

     7. Severance Pay: Denton will receive a gross amount of $1,688,000.00 (twenty-four
(24) months of base salary, at his current monthly rate of base salary, inclusive of flex pay) as
severance pay. Of that amount, the gross amount of $626,667 will be payable in a lump sum on
January 2, 2009, and the remainder will be payable in a lump sum on July 2, 2009.

     8. Company Car: Dura will convey title to Denton’s company car to Denton on January
1, 2009, without charge.

     9. Continuation of Group Health Plan Coverage: Denton will be eligible for COBRA
group health plan continuation coverage as of January 1, 2009 for himself and his eligible covered
dependents at the same coverage options then available to other active executive employees at the
same group health plan coverage cost as other active executive employees for a period of up to (but
not more than) 18 months.

     10. Attorneys’ Fees: Dura will reimburse Denton his reasonable attorneys’ fees in
connection with advice and counseling regarding the Term Sheet and this Separation Agreement. In
addition, to the extent that Dura breaches the terms of this

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Separation Agreement, then it will reimburse Denton his attorneys’ fees incurred in connection
with the enforcement thereof.

     11. Full Payment and Taxes: All payments required to be made by Dura hereunder shall
be subject to any and all applicable withholdings, including any withholdings for any related
federal, state or local taxes. Denton acknowledges that he shall be responsible for any and all
income taxes or other taxes incurred by him as a result of his receipt of any payments from Dura
pursuant to the terms of this Separation Agreement.

     12. D&O Coverage: Prior to the Separation Date, Denton will remain covered by Dura’s
current D&O insurance policy in accordance with its terms. Following the Separation Date and for a
period of not less than six (6) years thereafter, Denton will remain covered as a former director
and officer under Dura’s D&O insurance policies as in effect from time to time. If Dura terminates
its D&O insurance during the foregoing six-year period, Dura will purchase tail coverage insuring
claims involving Denton made prior to the expiration of such six-year period. In addition, Dura
shall continue to indemnify Denton pursuant to the provisions contained in Dura’s bylaws as in
effect as of the date of this Agreement (without amendment).

     13. Non-Disparagement: Denton agrees and promises that he will not, at anytime
hereafter, disparage (in any way) the Company and/or its Board of Directors, officers, employees,
agents, and affiliates. Likewise, members of the Company’s Board of Directors, as well as the
Company’s Section 16 officers, agree and promise that they will not disparage (in any way) Denton.

     14. Non-Competition/Non-Solicitation: During the Transition Period, and for the
consecutive twelve (12) month period immediately following the Separation Date,

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Denton reaffirms and agrees that he will remain subject to the terms of Sections 4.8 of the
2003 SERP, as modified herein. Denton acknowledges that his breach of any of the restrictive
covenants contained or referenced in this Section 14 of this Separation Agreement can cause
irreparable damage to Dura for which the remedy at law would not be adequate; accordingly, in
addition to any other remedy provided by law or in equity, the Company shall be entitled to
injunctive relief restraining Denton from any actual or threatened violation of this section or to
any other appropriate decree of specific performance. Denton acknowledges and agrees that the
scope described above is necessary and reasonable in order to protect Dura in the conduct of its
business and that, if Denton becomes employed by another employer operating a business directly
competitive with Dura within the restricted period, he shall be required to disclose the existence
of this Section 14 of this Separation Agreement to such employer and Denton hereby consents to and
gives permission to Dura to disclose the existence of this Section 14 of this Separation Agreement
to such employer. Notwithstanding the foregoing, Denton may serve as a member of the Board of
Directors of any company, and such service shall not be deemed to be a violation of this Section 14
of this Separation Agreement. For purposes of clarification, Denton and Dura, solely for purposes
of the restrictive covenants referenced in this Section 14 of the Separation Agreement (and for
purposes of the SERP), hereby agree that the term “directly competitive” as used in Section 4.8(a)
of the 2003 SERP means a business with a primary product line similar to a primary product line of
Dura (including, but not limited to, shifters, cables, structural doors, and encapsulated glass).

     15. Denton’s Release of Dura: Denton hereby irrevocably and unconditionally releases,
acquits and forever discharges Dura, its current and former subsidiaries,

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parent companies, affiliates, divisions, successors, predecessors, related entities, assigns,
and all of its and their owners, stockholders, partners, directors, officers, employees, agents,
representatives, attorneys and all persons acting by, through, under or in concert with any of them
(collectively “Released Parties”), from any and all charges, complaints, claims, liabilities,
obligations, promises, agreements, damages, actions, causes of action, suits, rights, demands,
costs, losses, debts and expenses (including attorneys’ fees and costs) actually incurred of any
nature whatsoever, known or unknown, suspected or unsuspected (“Claim” or “Claims”) which Denton
now has, owns or holds, or claims to have, own or hold, or which Denton at any time heretofore had,
owned or held, or claimed to have had, owned or held, or which Denton at any time hereafter may
have, own or hold, or claim to have, own or hold, against any of the Released Parties relating to
any event, act or omission that has occurred as of the date of this Separation Agreement. Without
limitation, this release specifically applies to any Claims Denton may have with respect to
payments and benefits pursuant to the Term Sheet, the Letter Agreement, the Letter Agreement
Amendment, the 2003 SERP (as modified herein), the Change of Control Agreement, or the Change of
Control Amendment. Denton agrees that, as a condition of this Separation Agreement, he will
reiterate and re-execute his full release of Claims by signing a document in the form of Exhibit A
hereto upon the Separation Date.

     16. OWBPA/ADEA: Denton specifically waives and releases all rights, claims, including
claims for attorneys’ fees, demands and causes of action under the Age Discrimination in Employment
Act of 1967 (“ADEA”), as amended; Title VII of the Civil Rights Act of 1964, as amended; the
Employee Retirement Income Security Act of 1974, as amended (but excluding claims relating to
benefits that have not been paid as

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of the date hereof, including but not limited to Denton’s 401(k) account, pension benefit,
SERP benefits and COBRA continuation coverage rights); the Rehabilitation Act of 1973, as amended;
the Workers Adjustment Retraining and Notification Act; the Older Workers Benefit Protection Act;
the Americans with Disabilities Act; and any comparable federal, state, or local laws, concerning
Denton’s relationship and association with any of the Released Parties and the creation and
termination of such relationship. Denton acknowledges and understands that the release of claims
under the ADEA is subject to special waiver protection under 29 U.S.C. § 626(f). In accordance
with that section, Denton specifically agrees he is knowingly and voluntarily releasing and waiving
any right or claims of discrimination under the ADEA. In particular, he acknowledges and
understands the following: (i) he is not waiving rights or claims for age discrimination under the
ADEA that may arise after the date he signs this Separation Agreement; (ii) he is not waiving his
right to file a complaint or charge with the Equal Employment Opportunity Commission (“EEOC”) or
participate in any investigation or proceeding conducted by the EEOC; (iii) he is waiving rights or
claims for age discrimination under the ADEA in exchange for the payments and benefits described
herein, which are in addition to anything of value to which he otherwise is entitled; (iv) he has
been advised to consult with an attorney of his choice before signing this Separation Agreement,
and that he has freely and voluntarily entered into this Separation Agreement without any threat,
coercion, or intimidation by any person; (v) he has been given the opportunity to take at least
twenty-one (21) days to consider whether to sign this Separation Agreement, although he is not
required to wait twenty-one (21) days; and (vi) he will have seven (7) days after the date he signs
this Separation Agreement within which to revoke it, and the Separation Agreement shall

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not become effective or enforceable as to any party until that revocation period has expired
without Denton having revoked (the “Effective Date”). Any such revocation shall be in writing and
shall be sent and received by facsimile to Theresa L. Skotak, Chief Administrative Officer,
facsimile (248) 299-7504.

     17. No Assignment: Denton represents that he has not heretofore assigned or
transferred, or purported to assign or transfer, to any person or entity, any Claim or any portion
thereof, or interest therein, and agrees to indemnify, defend and hold Released Parties harmless
from and against any and all Claims, based on or arising out of any such assignment or transfer, or
purported assignment or transfer of any Claims or any portion thereof or interest therein.

     18. No Reliance: Denton represents and acknowledges that in executing this Agreement
he does not rely and has not relied upon any representation or statement not set forth herein made
by any of the Released Parties or by any of the Released Parties’ agents, representatives, or
attorneys with regard to the subject matter, basis or effect of this Separation Agreement or
otherwise.

     19. Binding on Heirs: This Agreement shall be binding upon Denton and upon his
respective heirs, administrators, representatives, executors, successors and assigns, and shall
inure to the benefit of Released Parties and each of them, and to their heirs, administrators,
representatives, executors, successors and assigns.

     20. No Pending Claims: Denton represents that he has not filed any complaints,
charges or lawsuits against Dura, or against (a) any current or former officers, directors or
employees of Dura, (b) any current or former affiliate or related entity of Dura (including
subsidiaries and divisions), or (c) the current or former officers, directors and employees of said
affiliates or related entities (including subsidiaries and

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divisions); that, to the fullest extent permitted by law, he will not file any lawsuit or
claim against any of these entities or persons at any time hereafter for any event occurring prior
to the date of this Separation Agreement, and that if any court assumes jurisdiction of any lawsuit
or claim against any of these entities or persons on behalf of Denton, he will request that the
matter be dismissed with prejudice and hereby forever assigns any and all rights of recovery over
to Dura. 

     21. No Re-Employment: Denton expressly waives and relinquishes any and all rights to
re-employment following the Separation Date by Dura or any of its subsidiaries or affiliated
entities. 

     22. Dura’s Release of Denton: Dura (including any affiliate, subsidiaries, divisions,
successors, predecessors, and assigns) hereby irrevocably and unconditionally releases, acquits and
forever discharges Denton (including his heirs, executors, administrators, personal
representatives, assigns, and legal representatives) from any and all charges, complaints, claims,
liabilities, obligations, promises, agreements, damages, actions, causes of action, suits, rights,
demands, costs, losses, debts and expenses (including attorneys’ fees and costs) actually incurred
of any nature whatsoever, known or unknown, suspected or unsuspected (“Claim” or “Claims”) which
Dura now has, owns or holds, or claims to have, own or hold, or which Dura at any time heretofore
had, owned or held, or claimed to have had, owned or held, or which Dura at any time hereafter may
have, own or hold, or claim to have, own or hold, against Denton relating to any event, act or
omission that has occurred as of the date of this Separation Agreement. Notwithstanding the
foregoing, expressly excluded from Dura’s release of Denton are any and all criminal acts and
fraud. Dura agrees that, as a

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condition of this Separation Agreement, it will reiterate and re-execute its full release of
Claims by signing a document in the form of Exhibit A hereto upon the Separation Date.

     23. Headings: The headings in this Separation Agreement are inserted for convenience
only and are not to be considered a construction of the provisions hereof.

     24. Execution of Agreement. This Separation Agreement may be executed in several
counterparts, each of which shall be considered an original, but which when taken together, shall
constitute one agreement.

     25. Code Section 409A:

          (a) General. The parties intend that this Separation Agreement comply with Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the guidance and Treasury
regulations issued thereunder (“Section 409A”), to the extent applicable thereto.

          (b) Distributions on Account of Separation from Service. If and to the extent
required to comply with Section 409A, no payment or benefit required to be paid under this
Separation Agreement on account of termination of Denton’s employment shall be made unless and
until Denton incurs a “separation from service”, within the meaning of Section 409A.

          (c) Change in Time and Form of Payment. This Separation Agreement shall be considered
an election and amendment pursuant to Notice 2005-1, Q&A-19(c), as modified by section XI.C of the
preamble to the Proposed Treasury Regulations under Code Section 409A, as further modified by
Section 3.02 of Notice 2007-86, to change the time and form of payment of amounts subject to Section
409A that are payable under the Letter Agreement, the Letter Agreement Amendment or the 2003

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SERP, to the extent necessary to do so; provided, this election and amendment shall apply only
to amounts that would not otherwise be payable in 2008 and may not cause an amount to be paid in
2008 that would not otherwise be payable in 2008.

          (d) Treatment of Each Installment as a Separate Payment. For purposes of applying the
provisions of Section 409A, each separately identified amount to which Denton is entitled under the
Letter Agreement, the Letter Agreement Amendment, the 2003 SERP or this Separation Agreement shall
be treated as a separate payment. In addition, to the extent permissible under Section 409A, any
series of installment payments under the Letter Agreement or the Letter Agreement Amendment shall
be treated as a right to a series of separate payments.

          (e) Reimbursements and In-Kind Benefits.

     (i) Any reimbursements by Dura to Denton of any eligible expenses pursuant to
Section 3, 5, or 10 of this Separation Agreement (“Reimbursements”) shall be made
promptly and, in any event, by March 15 of the taxable year of Denton following the
taxable year in which the expense was incurred.

     (ii) The amount of any Reimbursements and the value of any in-kind benefits to
be provided to Denton under this Separation Agreement during any taxable year of
Denton shall not affect the expenses eligible for reimbursement, or in-kind benefits
to be provided, in any other taxable year of Denton, except for any limit on the
amount of expenses that may be reimbursed under an arrangement described in Code
Section 105(b).

     (iii) The right to Reimbursements, or in-kind benefits, shall not be subject to
liquidation or exchange for another benefit.

     26. Voluntary Agreement: Denton represents and agrees that he fully understands his
right to discuss all aspects of this Separation Agreement with his private attorney, that he has
carefully read and fully understands all of the provisions of

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this Separation Agreement, and that he is voluntarily entering into this Separation Agreement.

     27. Governing Law and Forum; Miscellaneous: This Separation Agreement is made and
entered into in the State of Michigan and shall in all respects be interpreted, adjudicated,
enforced and governed in and under the laws of the State of Michigan; Denton and Dura waive any
challenges to personal jurisdiction regarding the enforcement of this Separation Agreement within
the State of Michigan. The language of all parts of this Separation Agreement shall in all cases
be construed as a whole, according to its fair meaning, and not strictly for or against any of the
parties. It is agreed that this Separation Agreement shall be construed with the understanding
that both parties were responsible for drafting it.

     28. Survival: Should any of the provisions of this Separation Agreement be declared
or be determined to be illegal or invalid, the validity of the remaining parts, terms or provisions
shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed
not to be a part of this Separation Agreement.

     29. Entire Agreement; No Amendment: This Separation Agreement sets forth the entire
agreement between the parties hereto and supersedes all prior or contemporaneous discussions,
communications or agreements, expressed or implied, written or oral, by or between the parties.
Except as otherwise stated in this Separation Agreement, this Separation Agreement without
limitation supersedes, ends, and forever terminates any and all rights or obligations under any of
the following and all of the following cease immediately to be of any effect: the Letter
Agreement, the Letter Agreement Amendment, the Change of Control Agreement, the Change of Control
Amendment; and the Term Sheet. This Separation Agreement may not be modified or

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amended except in a writing signed by all the parties. Any waiver of one or more provisions
of this Separation Agreement shall not constitute a waiver of any of the remaining provisions
hereto.

     PLEASE READ CAREFULLY. THIS SEPARATION AGREEMENT AND GENERAL RELEASE INCLUDES A RELEASE OF
ALL KNOWN OR UNKNOWN CLAIMS.

     Executed
at
                    ,
Michigan this       day of August, 2008.

	 	 	 	 	 
	 	 	 
	 	
/s/ Lawrence A. Denton 	 
	 	LAWRENCE A. DENTON 	 
	 	 	 
	 

     Executed
at Rochester Hills, Michigan this
      day of August, 2008.

	 	 	 	 	 
	 	DURA AUTOMOTIVE SYSTEMS, INC.

 	 
	 	By:  	/s/
Theresa L. Skotak	 
	 	 	THERESA L. SKOTAK 	 
	 	 	CHIEF ADMINISTRATIVE OFFICER 	 

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Exhibit A

     Dura and Denton hereby reiterate and renew their respective releases against each other
contained in the Separation Agreement (including all rights stated therein under the ADEA/OWBPA)
through the date of signature on this Exhibit A (except that Dura’s release of Denton continues to
expressly exempt any and all criminal acts and fraud).

     HEREBY RECONFIRMED AND AGREED:

     Executed at                     , Michigan this       day of                     , 2008.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	LAWRENCE A. DENTON 	 
	 	 	 
	 

     Executed at                     , Michigan this       day of                     , 2008.

	 	 	 	 	 
	 	DURA AUTOMOTIVE SYSTEMS, INC.

 	 
	 	By:  	 	 
	 	 	THERESA L. SKOTAK 	 
	 	 	CHIEF ADMINISTRATIVE OFFICERexv10w55

Exhibit 10.55

FORM
OF
 AMERICAN RAILCAR INDUSTRIES, INC.

2005 EQUITY INCENTIVE PLAN

STOCK APPRECIATION RIGHTS AGREEMENT

Name of SARs Holder:

Grant Date:

Total Number of SARs:

Exercise Price Per SAR:

SAR Term/Expiration Date:

     Pursuant to and in accordance with the American Railcar Industries, Inc. 2005 Equity Incentive
Plan, as amended from time to time (the “Plan”), this Stock Appreciation Rights Agreement (the
“Award Agreement” or “Agreement”) evidences the issuance to the person named above (the “SARs
Holder”) by American Railcar Industries, Inc. (the “Company”), effective as of the date set forth
above, of stock appreciation rights (the “SARs”). Capitalized terms not otherwise defined herein
shall have the meanings ascribed to them in the Plan.

1. Vesting Schedules.

     The percentage of the Total Number of SARs (as it may be adjusted from time to time) shall
vest on the respective dates if the SARs Holder is employed by the Company on the date(s) indicated
below:

	 	 	 	 	 	 	 	 	 
	 	 	# of Total	 	 
	Vesting Date	 	SARs Vested	 	% of Total Number of SARs Vested
	 
	 	 	 	 	 	 	25	%
	 
	 	 	 	 	 	 	50	%
	 
	 	 	 	 	 	 	75	%
	 
	 	 	 	 	 	 	100	%

     The vesting for your SARs is 50% time based, and 50% performance based. All SARs shall have a
seven-year term. Performance-based SARs will vest equally over four years if the closing price of
ARI’s common stock reaches the target price set forth below for each year for 20 trading days
during a 60 trading-day period in the preceding calendar year. If ARI stock does not close at or
above the target price for 20 trading days during a 60 trading-day period in the applicable
calendar year, then the applicable percentage of performance-based SARs will not vest the following
April and shall be irrevocably cancelled.

 

 

     The target prices for each calendar year are:

2008: $                    

2009: $                    

2010: $                    

2011: $                    

     2. Exercise. The SARs issued to the SARs Holder shall be exercisable by delivery of
an exercise notice in the form attached hereto as Exhibit A (the “Exercise Notice”), which
shall state the election to exercise the SARs, the number of SARs being exercised (the “Exercised
SARs”) and the SARs Holder’s agreement with respect to certain representations and agreements. The
SARs shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise
Notice. The SARs may be exercised only in accordance with the Plan and the terms of this
Agreement. Upon the exercise of any SARs, the SARs Holder shall be paid by the Company within
three (3) business days of exercise, in cash, an amount equal to the excess, if any, of (A) the
aggregate Fair Market Value in respect of which the SARs are exercised, determined as of the time
of such exercise, by the average high and low stock price on the Exercise day, over (B) the
aggregate Exercise Price Per SAR of the SARs being exercised. No payments shall be made pursuant to
the exercise of any SARs unless the issuance and exercise of the SARs complies with applicable
laws, the Plan and this Award Agreement.

     3. Adjustments. In accordance with Section 3(c) of the Plan, the total number of
SARs and the Exercise Price Per SAR shall be adjusted from time to time to reflect changes in the
Company’s capitalization and for certain other events as expressly set forth in the Plan.

     4. No Rights as Stockholder. Neither the issuance of SARs nor any action taken
hereunder or thereunder or pursuant hereto or thereto shall be construed as (i) giving the SARs
Holder any equity or interest of any kind in the Company or in any assets of the Company or any of
its subsidiaries, or (ii) creating a trust of any kind or a fiduciary relationship of any kind
between the SARs Holder and the Company or any of its subsidiaries. The SARs Holder shall not
have, in respect of the SARs or otherwise, any right to acquire or receive shares of common stock
or other securities of the Company or any of its subsidiaries pursuant to the Plan or this Award
Agreement or otherwise, shall not have any right to any adjustment or change hereunder as a result
of any issuance of stock or other securities by the Company or any of its subsidiaries, and he or
she shall not be deemed for any purpose to be a shareholder of the Company or any of its
subsidiaries.

     5. Termination. Any vested SARs shall be exercisable for ninety (90) days after the
SARs Holder’s employment with the Company (which for purposes of this Plan shall include employment
with the Company and its direct and indirect consolidated subsidiaries) is terminated without Cause
(as defined in the Plan); provided, however, if the employment is terminated by the
Company for Cause, the SARs shall terminate immediately. In the event of the termination of
employment of the SARs Holder with the Company for any reason whatsoever, any Unvested SARs shall
cease to exist on such date and be extinguished and be of no further force or effect. Upon the SARs
Holder’s death, any vested SARs may be exercised for a period

2

 

of twelve (12) months from the date
of termination of employment. Notwithstanding anything to the contrary in the foregoing, in no
event may any SARs be exercised after the Expiration Date set forth above or as otherwise provided
in the Plan.

     6. Non-Transferable by the SARs Holder. Except by will or the laws of descent, the
SARs and all rights, title and interest therein granted hereunder are not transferable by the SARs
Holder, directly or indirectly, by sale, assignment, pledge, hypothecation, transfer or
otherwise (each a “Transfer”). Except as provided above, no Transfer of the SARs granted
hereunder, whether voluntary or involuntary, by the operation of law or otherwise, shall vest in
any person or entity, any direct or indirect title, interest or right therein whatsoever, but
immediately upon any such attempted Transfer, all SARs granted hereunder shall cease to exist and
be extinguished and be of no further force or effect.

     7. No Guarantee of Continued Service. SARS HOLDER ACKNOWLEDGES AND AGREES THAT THE
VESTING OF SARS PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING IN THE
RELATIONSHIP AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING ENGAGED, BEING GRANTED THIS
OPTION OR ACQUIRING SHARES HEREUNDER). SARS HOLDER FURTHER ACKNOWLEDGES AND AGREES THAT THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED EMPLOYMENT FOR THE VESTING PERIOD, FOR ANY
PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH SARS HOLDER’S RIGHT OR THE COMPANY’S
RIGHT TO TERMINATE THE RELATIONSHIP AT ANY TIME, WITH OR WITHOUT CAUSE.

     8. Withholding. All amounts paid to the SARs Holder hereunder shall be subject to
normal federal, state and, if applicable, local or foreign tax withholding and deductions imposed
by any one or more federal, state, local and/or foreign governments, or pursuant to any foreign or
domestic applicable law, rule or regulation.

     9. Entire Agreement; Governing Law. The Plan is incorporated herein by reference.
The Plan and this Award Agreement constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede in their entirety all prior undertakings and agreements of
the Company and SARs Holder with respect to the subject matter hereof, and may not be modified
(except as provided herein and in the Plan) adversely to the SARs Holder’s interest except by means
of a writing signed by the Company and SARs Holder. This agreement is governed by the internal
substantive laws but not the choice of law rules of the State of Delaware.

     10. Confidentiality, Non-Compete and Non-Solicit. Pursuant to the terms and
conditions of the Plan, SARs Holder has executed and delivered to the Company the Confidentiality,
Non-Compete and Non-Solicit Agreement attached hereto as Exhibit B.

     11. SARs Holder Acknowledgement. Receipt of a copy of the Plan and represents that he
or she is familiar with the terms and provisions thereof, and hereby accepts this Award Agreement
subject to all of the terms and provisions thereof. SARs Holder has reviewed the Plan and this
Award Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Option and fully understands all provisions of the Award Agreement. SARs Holder
hereby agrees to accept as binding, conclusive and final all decisions

3

 

or interpretations of the
Compensation Committee of the Board of Directors upon any questions arising under the Plan or this
Award Agreement. SARs Holder further agrees to notify the Company upon any change in the residence
address indicated below. A facsimile or photocopy of an executed counterpart of this Award
Agreement shall be sufficient to bind the party or parties whose signature(s) appear thereon.

	 	 	 	 	 	 	 	 	 	 	 
	SARs Holder:	 	 	 	American Railcar Industries, Inc.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

4

 

EXHIBIT A

to

Stock Appreciation Rights Agreement

2005 EQUITY INCENTIVE PLAN

EXERCISE NOTICE

American Railcar Industries, Inc.

100 Clark St.

St. Charles, MO 63301

Attention: Treasurer

	 	1.	 	Exercise of SARs. Effective as of today,                     , 200___, the
undersigned (“Holder”) hereby elects to exercise                      SARs under and pursuant to
the 2005 Equity Incentive Plan (the “Plan”) and the Stock Appreciation Rights
Agreement dated                     , 200___(the “Award Agreement”). Capitalized terms not
otherwise defined herein shall have the meaning ascribed to them in the Plan.
	 
	 	2.	 	Representations of Holder. Holder acknowledges that Holder has
received, read and understood the Plan and the Award Agreement and agrees to abide by
and be bound by their terms and conditions.
	 
	 	3.	 	Tax Consultation. Holder understands that Holder may suffer adverse
tax consequences as a result of Holder’s exercise of the SARs. Holder represents that
Holder has consulted with any tax consultants Holder deems advisable in connection with
the purchase or disposition of the Shares and that Holder is not relying on the Company
for any tax advice.

[Signatures appear on next page]

 

 

SAR Exercise Notice

	 	 	 	 	 	 	 	 	 	 	 
	Submitted by:	 	 	 	Accepted by:
	 
	 	 	 	 	 	 	 	 	 	 
	SARS HOLDER	 	 	 	AMERICAN RAILCAR INDUSTRIES, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature	 	 	 	By
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Print Name	 	 	 	Title
	 
	 	 	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date Received	 	 

 

 

EXHIBIT B

to

Stock Appreciation Rights Agreement

CONFIDENTIALITY, NON-COMPETE AND

NON-SOLICITATION AGREEMENT

     This CONFIDENTIALITY, NON-COMPETE AND NON-SOLICITATION AGREEMENT (hereinafter referred to as
“Agreement”) made as of the                      day of                     , 2008, between American Railcar Industries,
Inc. a corporation incorporated under the laws of the State of Delaware (hereinafter referred to as
“Company”) and NAME:                     (hereinafter referred to as “Employee”).

     WHEREAS, as a condition and inducement of the Company’s employment of, participation in any
equity incentive plans, or payment of any incentive owing to, and transfer of confidential
information to the Employee, the Company has requested and the Employee has agreed to enter into
this Agreement.

     NOW THEREFORE in consideration of the provisions contained herein including the Company’s
employment of and transfer of confidential information to the Employee, the Company and the
Employee agree as follows:

	 	1.	 	DEFINITIONS

          (a) For purposes of this Agreement the terms:

               (i) “Affiliate” shall mean with respect to any specified Person, another Person which,
directly or indirectly, controls, is controlled by, or is under common control with such specified
Person;

               (ii) “Company” shall mean American railcar Industries, Inc. and/or any of its subsidiaries,
parent or related corporations;

               (iii) “Confidential Information” shall mean all information disclosed or otherwise made
available to the Employee by the Company, Affiliates, employees or representatives, about or
relating to the Company’s, or any of its Affiliates’ plans, business or activities, or employees,
including, but not limited to the information set forth in any business plan of the Company and
information concerning advertising, marketing plans and strategies, finances or financial
condition, accounting, methods, processes, trade secrets, Intellectual Property, product and
business plans, and current or potential customer, client, business partner or supplier lists and
records, service charges, rates and fees, investments plans or projections, research in respect of
acquired or potential target investments and communications and all Work Product;

3

 

               (iv) “Intellectual Property” shall mean all source-codes, object-codes, manuals and other
documentation and materials (whether or not in written form) and all versions thereof, together
with all other patents, licenses, trademarks, service marks, trade names (whether registered or
unregistered), copyrights, proprietary computer software, proprietary inventions, proprietary
technology, technical information, intellectual property, discoveries, designs, proprietary rights
and non-public information, trade secrets, in each case, whether or not patentable;

               (v) “Person” an individual, corporation, partnership, trust or unincorporated organization,
limited liability company, limited liability partnership, joint venture, joint stock company, any
governmental agency or instrumentality or any other entity;

               (vi) “Work Product” shall mean all work product (tangible, recorded or otherwise, and without
regard to the form or condition or state of completion) including, without limitation, Intellectual
Property invented, created, assembled or developed in connection with, with respect to, for, or in
relation to, the Company during the Employee’s employment by the Company.

     2. CONFIDENTIALITY

          (a) The Employee shall not (either during the continuance of the Employee’s employment by the
Company or at any time thereafter) disclose any Confidential Information to any Person other than
designated employees of the Company, and all such Confidential Information, either in electronic,
printed or verbal form will remain the property of the Company and shall not be used by the
Employee (either during the continuance of employment by the Company or at any time thereafter) for
Employees own purpose or for any purpose other than those of the Company. The Employee agrees that
the Company will retain proprietary rights in the Confidential Information and disclosure to or
awareness by the Employee of the Confidential Information shall not be deemed to confer any rights
whatsoever to the Employee in respect of any part of the Confidential Information.

          (b) The restrictions and covenants set forth in (a) above applicable to the Confidential
Information shall not apply to any portion of the Confidential Information that the Employee can
clearly demonstrate is at the time of disclosure or thereafter generally available to and known by
the public (other than as a result of its disclosure by the Employee in breach of his obligations
herein).

          (c) In the event that the Employee is (i) requested by interrogatory, subpoena, deposition,
civil investigation demand or other similar legal process or (ii) required by applicable laws,
rules or regulations, to disclose any Confidential Information, the Employee shall provide the
Company with prompt written notice of any such request or requirement so that the Company may seek
an appropriate protective order. If, failing the entry of a protective order, the Employee is, in
the written opinion of its counsel, compelled to disclose Confidential Information, the Employee
may disclose that portion of the Confidential Information which its counsel advises the Employee in

4

 

such opinion that it is compelled to disclose. In any event, the Employee will not oppose, and
shall assist, action by the Company in any such proceeding to obtain an
appropriate protective order or other reliable assurance that confidential treatment will be
accorded the Confidential Information.

     3. NON-COMPETE

     The Employee covenants and agrees with the Company that during the continuance of employment,
and for a period of one (1) year from the date on which Employee ceases to be an employee of the
Company as a result of either the Employee’s resignation or termination of employment by the
Company for “Cause”, as defined herein, the Employee will not:

          (1) within the territory(ies) or region(s) for which the Employee is or was responsible when
employed, (if the Employee was assigned to a territory or region) or,

          (2) (if the employee did not have responsibility for a territory or region), within fifty
miles from the location at which the employee performed work on behalf of the Company, either
directly or indirectly, as principal, agent, owner, employee, partner, investor, shareholder (other
than solely as a holder of not more than 1% of the issued and outstanding shares of any public
corporation), consultant, advisor or otherwise howsoever participate in, act for, or on behalf of,
or for the benefit of, own, operate, carry on or engage in the operation of or have any financial
interest in or provide, directly or indirectly, financial assistance to or lend money to or
guarantee the debts or obligations of, any Person carrying on or engaged in any business that is
competitive with or identical to the business conducted by the Company in the United States of
America (the “Business”). For purposes of this Paragraph 3, any one of the following shall
constitute “Cause”: (1) the Employee’s material breach of this Agreement or Company policy; (2) the
Company’s default in performing its obligations under contracts with other persons or business
entities, or Company’s suffering of economic harm, if directly caused by the Employee; (3) the
Employee’s fraud with respect to the business or affairs of the Company or if the Employee is
convicted of committing a felony or any crime involving moral turpitude; or (4) other misconduct by
the Employee.

     4. NON-SOLICITATION

     The Employee covenants and agrees with the Company that during the continuance of this
employment, and for a period of one (1) year from the date on which he ceases to be an employee of
the Company for any reason, the Employee shall not directly, or indirectly, for himself or for any
other person or entity:

          (a) attempt to divert or, solicit, interfere with or endeavor to entice away from, or attempt
to do any of the forgoing with respect to, the Company or its Affiliates, any customer, client or
any Person in the habit of dealing with the Company or its Affiliates, with whom the Employee had
contact with in a business capacity, was responsible for, or had knowledge of Confidential
Information about, and the Employee

5

 

shall refrain from committing any act which would in any manner
jeopardize any relationship the Company has or may have with any customer, client or any person or
entity;

          (b) interfere with, entice away, hire, encourage, or otherwise attempt to obtain the
withdrawal of any employee of the Company or Affiliates in relation to the Business; or

          (c) advise any Person or entity not to do business with the Company or Affiliates in relation
to the Business.

     5. INJUNCTIVE RELIEF

     Irreparable harm shall be presumed if the Employee breaches or threatens to breach any
agreement, covenant or provision of this Agreement, and under such circumstances damages will be
impossible to ascertain. Accordingly, the Employee agrees that in the event of any breach or
threatened breach of this Agreement, the Company shall be entitled to an injunction and other
equitable relief without being required to show irreparable harm, without posting any bond or
security in connection therewith, and that any court of competent jurisdiction may immediately
enjoin any breach or threatened breach of this Agreement. The equitable remedies contemplated
hereby shall not be deemed to be exclusive remedies for a breach of this Agreement but shall be in
addition to all other remedies available at law or equity.

     6. INVALIDITY

     If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any
present or future law, and if the rights or obligations under this Agreement will not be materially
and adversely affected thereby, (a) such provision shall be fully severable; (b) this Agreement
shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never
comprised a part hereof; (c) the remaining provisions of this Agreement shall remain in full force
and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its
severance from this Agreement; and (d) in lieu of such illegal, invalid, or unenforceable
provision, there shall be added automatically as a part of this Agreement a legal, valid, and
enforceable provision as similar in terms to such illegal, invalid, or unenforceable provision as
may be possible.

     7. ACKNOWLEDGEMENT

     The Employee acknowledges reading and understanding the terms and conditions of this
Agreement, and that the Company has provided a reasonable opportunity for the employee, if the
Employee so chooses, to seek independent legal advice prior to executing this Agreement.

6

 

     8. GOVERNING LAW/JURISDICTION/SERVICE OF PROCESS

     The validity, interpretation, performance, and enforcement of this Agreement shall be governed
by the laws of the State of New York without regard to the conflict of laws. In any action between
or among the parties arising out of this Agreement, (i) each of the parties irrevocably consents to
the exclusive jurisdiction and venue of the federal and state courts located in the State of New
York; (ii) if any such action is commenced in a state court, then, subject to applicable law,
neither party shall object to the removal of such action to any federal court located in the State
of New York; (iii) each of the parties irrevocably waives the right to trial by jury; and (iv) each
of the parties irrevocably consents to service of process by first class certified mail, return
receipt requested, postage prepaid, to the address of such party set forth in the signature page
hereto, unless a party notifies the other in writing of a different address.

     9. ENTIREAGREEMENT/AMENDMENTS/WAIVERS/COUNTERPARTS
/NOTICES

     This Agreement shall constitute the entire agreement among the parties with respect to the
matters covered hereby and shall supersede all previous written, oral or implied understandings
among them with respect to such matters provided however, that nothing herein shall limit the
Employee’s responsibilities or the Company’s rights under any business conduct policy. This
Agreement or any of its provisions shall not be amended, waived or otherwise modified except by a
writing executed by all of the parties hereto. No failure or delay by the Company in exercising its
rights and remedies under or with respect to this Agreement shall operate as a waiver or bar any
further exercise of such rights and remedies. 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. All notices hereunder shall be given in
writing delivered to the address of the recipient set forth on the signature page hereto.

     10. MISCELLANEOUS

          (a) This Agreement does not alter, change or modify the employment-at-will relationship that
exists between the Company and the Employee and nothing herein shall be construed as requiring
cause for or advance notice of termination of employment.

          (b) This Agreement shall be binding upon and inure to the benefit of the parties and their
successors and permitted assigns, as the case may be. The Company may assign this Agreement to any
affiliate of the Company and to any successor or assign of all or a substantial portion of the
Company’s business. The Employee may not assign or transfer any of his rights or obligations under
this Agreement.

7

 

     IN WITNESS WHEREOF the parties hereto have executed this Confidentiality, Non-Compete and
Non-Solicitation Agreement as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	EMPLOYEE	 	 	 	AMERICAN RAILCAR INDUSTRIES, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature	 	 	 	By: 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

8

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