Document:

Management Services Agreement, dated as of June 3, 1999

 Exhibit 10.12 
  
 MANAGEMENT SERVICES AGREEMENT 
  
 This Management Services Agreement is made as of the 3rd day of June, 1999, by and among RABBIT HILL HOLDINGS, INC., a Delaware corporation (“RHH”), RABBIT HILL INTERMEDCO, INC., a Delaware corporation (“Intermedco”), RABBIT HILL
OPERATIONS, INC., a Delaware corporation (“Operations”), JOHNSTOWN AMERICA CORPORATION, a Delaware corporation (“JAC”), FREIGHT CAR SERVICES, INC., a Delaware corporation (“FCS”), JAIX LEASING COMPANY, a Delaware
corporation (“JAIX”) and JAC PATENT COMPANY, a Delaware corporation (“Patent” -JAC, FCS, JAIX and Patent are herein referred to as the “Companies”, and each as a “Company”, and the Companies, Intermedco and
Operations are herein referred to as the “Contracting Parties”). 
  
 BACKGROUND 
  
 A.
RHH owns all the capital stock of Intermedco, which own all the capital stock of Operations, which owns all the capital stock of JAC, FCS and JAIX. JAC owns all the capital stock of Patent. 
  
 B. The Companies are engaged in the business of developing, manufacturing,
selling, distributing and leasing railcars and related products and may in the future be engaged in additional lines of business (collectively, the “Business”). 
  
 C. To insure that Intermedco, Operations and the Companies are managed prudently and efficiently, the Contracting Parties
desire to retain RHH to assist with the supervision and management of the Business of the Contracting Parties, to provide general management oversight and financial consultation, and such other services with respect to which the Contracting Parties
and RHH shall mutually agree from time to time. 
  
 AGREEMENT

  
 In consideration of the foregoing background and of
the mutual covenants, conditions, and promises contained herein, the parties hereto, intending to be legally bound hereby, agree as follows: 
  
 1. Management. Intermedco, Operations and each of the Companies, jointly and severally, hereby retain RHH, and RHH hereby agrees, to assist
the Contracting Parties by providing them with general oversight and supervision of each of them and their Business, and to provide such additional services as shall, from time to time, be established by mutual agreement between RHH and the
Contracting Parties. In furtherance thereof, and upon 

  

 
request, RHH (i) shall provide input and direction to the creation and implementation of long-range corporate and strategic plans, (ii) shall periodically
review the general financial operation and performance of the Companies, and (iii) shall evaluate different strategies for capitalization of the Companies. From time to time, RHH shall report to the Board of Directors of each of the Contracting
Parties on its activities, and, upon request, shall prepare a written report to each of the Contracting Parties (collectively, “Management Services”). 
  

2. Compensation of Manager; Subordination. In consideration of the Management Services provided hereunder, the Contracting Parties,
jointly and severally hereby agree to pay to RHH a management fee equal, in the aggregate, to Three Hundred and Fifty Thousand Dollars ($350,000.00) per year (the “Management Fee”), payable in four (4) equal consecutive quarterly
installments, within fifteen (15) days after the first day of each calendar quarter; provided, however, that to the extent the Contracting Parties, or any of them, shall have paid to Camillo M. Santomero, III, (“Santomero”), or his
designee, all or any portion of the Annual Base Fee as described in that certain management agreement executed this date by the Contracting Parties, or some of them, and Santomero, then the Contracting Parties shall receive a credit hereunder, with
respect to the calendar quarter to which such payment made to Santomero relates, in an amount equal to the amount so paid to Santomero. To the extent any portion of the Management Fee is not paid when due, the unpaid portion shall bear interest at
the rate of fifteen percent (15%) per annum, compounded from the date owing through the date paid. 
  
 3. Term. 
  
 3.1 Unless sooner terminated as provided in Section 3.2, this Agreement shall commence on the date first above written (the
“Commencement Date”) and shall remain in effect for a term of eight (8) years, and, unless terminated by ninety (90) days written notice from one party to the other prior to the termination of the then current term, shall continue in
effect from year to year thereafter. 
  
 3.2 This
Agreement may be terminated under the following circumstances: 
  
 (a) by RHH on sixty (60) days written notice; or 
  
 (b) by either RHH or the Contracting Parties on ten (10) days written notice in the event of a Default by the other party; 
  
 3.3 Termination of this Agreement shall not affect the
rights and responsibilities which may have arisen or accrued prior to the date of termination. 
  

 - 2 - 

 4. Warranties and Covenants. 
  
  
 4.1 The Contracting Parties
hereby represent and warrant to RHH as follows: (i) each of the Contracting Parties is a Delaware corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has full power and authority to conduct
its business and to delegate to RHH the responsibilities delegated hereunder; and (ii) this Agreement has been duly authorized by the Board of Directors of each of the Contracting Parties, and the execution hereof and the performance by the
Contracting Parties hereunder does not and will not violate any provision of the Certificate of Incorporation or by-laws of any of the Contracting Parties, or any statute, regulation, court or administrative order or any agreement, contract or lease
to which any of the Contracting Parties is a party, and there are no third parties who must consent to the execution of this Agreement by any of the Contracting Parties. 
  
 4.2 During the term of this Agreement, each of the Contracting Parties covenants and agrees that it will do
the following: (i) to the extent consistent with the delegation of duties and responsibilities to RHH hereunder, assist RHH in all matters contemplated herein, so that the terms of this Agreement can be effected; (ii) promptly given written notice
to RHH of the occurrence of any event which would cause any representation or warranty in Section 4.1. to be untrue at any time, or which would constitute a Default hereunder; (iii) maintain its corporate existence and comply with all applicable
statutes, rules and regulations with respect thereto. 
  
 5.
Default. 
  
 5.1 The occurrence of
one or more of the following events after the Commencement Date shall constitute a default by or relating to the Contracting Parties (“Company Default”) hereunder: 
  
 (a) Any of the Contracting Parties becoming insolvent or unable to pay its debts as they mature, or filing a
voluntary petition or suffering any involuntary petition to be filed against it under any provisions of any State or federal bankruptcy or insolvency statute, or making an assignment for the benefit of its creditors, or applying for or permitting
the appointment of a receiver for its assets; 
  
 (b) Any of the Contracting Parties’ failure to pay the Management Fee or any other amount owing to RHH hereunder when due; or 
  
 (c) If any representation or warranty made in connection with this Agreement becomes false or erroneous in any material respect, or if any
of the Contracting Parties shall breach any term of this Agreement. 
  

 - 3 - 

 5.2 The occurrence of one or more of the following events after the Commencement Date
shall constitute a default by or relating to RHH (“RHH Default”) hereunder: 
  
 (a) RHH’s becoming insolvent or unable to pay its debts as they mature, or filing a voluntary petition or suffering any involuntary
petition to be filed against it under any provisions of any state or federal bankruptcy or insolvency statute, or making an assignment for the benefit of its creditors, or applying for or permitting the appointment of a receiver for its assets; or

  
 (b) RHH’s failure to discharge
substantially its responsibilities hereunder, and the continuance of such failure after RHH shall have received written notice thereof from the Company, and a reasonable opportunity to cure such failure. 
  
 5.3 (a) Upon the occurrence of a Company Default hereunder,
if RHH elects to terminate its responsibilities hereunder, RHH shall be entitled to collect, and the Contracting Parties shall pay to RHH, immediately upon demand, an amount equal to all damages suffered by RHH as a result of such breach; or

  
 (b) Upon the occurrence of an RHH Default
hereunder, the Contracting Parties may, at their option, terminate RHH’s responsibilities hereunder, whereupon the Contracting Parties’ obligation to pay the Management Fee, to the extent accruing after the date of termination, shall
cease. 
  
 6. Miscellaneous 
  
 6.1 At the termination of this Agreement, whether or not at
the end of the term hereof, RHH shall cooperate with the Contracting Parties to effect an orderly transition of the responsibilities of RHH hereunder to the Contracting Parties or their designee. 
  
 6.2 The Contracting Parties acknowledge that RHH is not
obligated to limit itself to the management of the Contracting Parties, or any of their affiliates, and acknowledges that RHH may render similar services to other companies, some of which may be competitors of the Contracting Parties. 
  
 6.3 Any failure by either the Contracting Parties or RHH to
exercise any right hereunder shall not be construed as a waiver of the right to exercise the same or any other right at any time, or from time to time thereafter. 
  
 6.4 If any provision of this Agreement shall for any reason be held to be invalid or unenforceable in any
jurisdiction in which it is sought to be enforced, such invalidity and unenforceability shall not affect any other provision hereof and it shall be construed as if such invalid or unenforceable provision were omitted. 
  

 - 4 - 

 6.5 This Agreement, including this Section 6.5 may be amended only in writing executed by
all of the parties hereto. 
  
 6.6 All
agreements, warranties and covenants made by the Contracting Parties and RHH herein shall continue as long as this Agreement shall remain in effect. 
  
 6.7 Section headings are for reference purposes only and shall not be utilized in the interpretation of the Agreement. 
  
 6.8 Any notice required under this Agreement to be sent by
one party to the other shall be personally delivered or sent by certified mail, return receipt requested, or by nationally recognized overnight delivery service, postage or fees prepaid, to the following addresses: 
  

			
	If to the Contracting Parties:	  	 Rabbit Hill Operations, Inc.
 c/o Johnstown America
Corporation
 17 Johns Street
 Johnstown, PA 15901
 Attention: President
 Telecopy No.: (814) 533-5010

		
	If to RHH:	  	 Rabbit Hill Holdings, Inc.
 Rabbit Hill
 Sarles Street
 Mount Kisco, NY 10540
 Telecopy No.: (914) 666-8378
 Attention: Mr. Camillo M. Santomero,
III

		
	With a copy to:	  	 George J. Hartnett, Esquire
 White and Williams
LLP
 1800 One Liberty Place
 Philadelphia, PA 19103
 Telecopy No.: (215) 864-7123

  
 The aforementioned addresses may be
changed upon written notice to all parties. 
  
 6.9 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute one agreement. 
  
 6.10 This Agreement shall not create any rights, or confer any benefits, upon any persons or entities not a
party hereto. 
  
 6.11 This Agreement is personal
to the parties and, except as set forth in Section 2 hereof, may not be assigned or otherwise transferred except that any of the 

  

 - 5 - 

 Contracting Parties or RHH may assign its rights to an affiliate, provided, however, that in such event, the Assignor
shall remain liable for its obligations hereunder. 
  
 6.12 This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware. 
  
 Executed as of the date first above written. 
  

			
	 RABBIT HILL HOLDING, INC.

	
	 /s/ Rabbit Hill Holding, Inc

	 	 	 
	 	 	 
	
	 RABBIT HILL OPERATIONS, INC.

	
	 /s/ Rabbit Hill Operations, Inc. 

	 	 	 
	 	 	 
	
	 RABBIT HILL INTERMEDCO, INC.

	
	 /s/ Rabbit Hill Intermedco, Inc.

	 	 	 
	 	 	 
	
	 JOHNSTOWN AMERICA CORPORATION

	
	 /s/ Johnstown America Corporation 

	 	 	 
	 	 	 

  
 (signatures
continued on page 7) 
  

 - 6 - 

 (signatures continued from page 6) 
  

			
	 FREIGHT CAR SERVICES, INC.

		
	 	 	 /s/    Freight Car Services,
Inc.

	 	 	 Name:

	 	 	 Title:

	
	 JAIX LEASING COMPANY

		
	 	 	 /s/    Jaix Leasing Company

	 	 	 Name:

	 	 	 Title:

	
	 JAC PATENT COMPANY

		
	 	 	 /s/    Jac Patent Company

	 	 	 Name:

	 	 	 Title:

  

 - 7 -Amendment to Management Agreement

 Exhibit 10.12.1 
  
 AMENDMENT TO 
 MANAGEMENT SERVICES AGREEMENT 
  
 THIS AMENDMENT
TO MANAGEMENT SERVICES AGREEMENT, dated as of March 7, 2005 (this “Amendment”), is entered into by and among FREIGHTCAR AMERICA, INC. (formerly known as Rabbit Hill Holdings, Inc. and JAC International Holdings, Inc.), a Delaware
corporation (“FCA”), JAC Intermedco, Inc. (formerly known as Rabbit Hill Intermedco, Inc.), a Delaware corporation (“Intermedco”), JAC Operations, Inc. (formerly known as Rabbit Hill Operations, Inc.), a Delaware
corporation (“Operations”), Johnstown America Corporation, a Delaware corporation (“JAC”), Freight Car Services, Inc., a Delaware corporation (“FCS”), JAIX Leasing Company, a Delaware corporation
(“JAIX”), and JAC Patent Company, a Delaware corporation (“Patent”). 
  
 RECITALS: 
  
 WHEREAS, FCA, Intermedco, Operations, JAC, FCS, JAIX and Patent are parties to that certain Management Services Agreement, dated as of June 3, 1999 (the “Agreement”); and 
  
 WHEREAS, FCA, Intermedco, Operations, JAC, FCS, JAIX and Patent desire to
amend certain provisions in the Agreement relating to the termination of the Agreement, subject to the terms and conditions set forth herein. 
  
 NOW THEREFORE, the parties hereto agree as follows: 
  
 1. Definitions. All capitalized terms used but not defined herein shall have the meanings set forth in the Agreement. 
  
 2. Amendment. The Agreement is hereby amended by replacing Section 3.2
of the Agreement in its entirety to read as follows: 
  
 “Section 3.2. Termination. This Agreement may be terminated under the following circumstances: 
  
 (a) by RRH on sixty (60) days written notice; 
  
 (b) by either RHH or the Contracting Parties on ten (10) days written notice in the event of a Default by the other party; or 

 
 (c) automatically, upon the termination of the Management
Agreement, dated as of June 3, 1999, by and among RHH, the Contracting Parties and Santomero.” 
  
 3. No Further Amendments. Except as expressly amended hereby, the Agreement shall continue in full force and effect. Each party agrees to be bound
by all of the terms of the Agreement, as amended hereby. 

 4. Miscellaneous. This Amendment may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written. 
  

			
	 FREIGHTCAR AMERICA, INC.

		
	 By:
	 	 /s/ Kevin P. Bagby

	 Name:
	 	Kevin P. Bagby
	 Title:
	 	Chief Financial Officer
	
	 JAC INTERMEDCO, INC.

		
	 By:
	 	 /s/ Kevin P. Bagby

	 Name:
	 	Kevin P. Bagby
	 Title:
	 	Chief Financial Officer
	
	 JAC OPERATIONS, INC.

		
	 By:
	 	 /s/ Kevin P. Bagby

	 Name:
	 	Kevin P. Bagby
	 Title:
	 	Chief Financial Officer
	
	 JOHNSTOWN AMERICA CORPORATION

		
	 By:
	 	 /s/ Kevin P. Bagby

	 Name:
	 	Kevin P. Bagby
	 Title:
	 	Chief Financial Officer

			
	 FREIGHT CAR SERVICES, INC.

		
	 By:
	 	 /s/ Kevin P. Bagby

	 Name:
	 	Kevin P. Bagby
	 Title:
	 	Chief Financial Officer
	
	 JAIX LEASING COMPANY

		
	 By:
	 	 /s/ Kevin P. Bagby

	 Name:
	 	Kevin P. Bagby
	 Title:
	 	Chief Financial Officer
	
	 JAC PATENT COMPANY

		
	 By:
	 	 /s/ Kevin P. Bagby

	 Name:
	 	Kevin P. Bagby
	 Title:
	 	Chief Financial Officer

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