Document:

Exhibit 10.2

 

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

IN AND FOR NEW CASTLE COUNTY

 

	
  ERIC EPPERSON and GEORGE L. CHELIUS,

  	
  )

  	
   

  
	
  as EXECUTORS OF THE ESTATE of

  	
  )

  	
   

  
	
  ALAN JAMES,

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  Plaintiffs,

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  v.

  	
  )

  	
  C. A. No. 597-N

  
	
   

  	
  )

  	
   

  
	
  WILLIAM A. FURMAN, BENJAMIN

  	
  )

  	
   

  
	
  WHITELEY, C. BRUCE WARD, VICTOR G.

  	
  )

  	
   

  
	
  ATIYEH, A. DANIEL O’NEAL, JR.,

  	
  )

  	
   

  
	
  DUANE C. MCDOUGALL and

  	
  )

  	
   

  
	
  THE GREENBRIER COMPANIES, INC.,

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  Defendants.

  	
  )

  	
   

  

 

STIPULATION AND ORDER OF
DISMISSAL

 

IT IS HEREBY STIPULATED AND AGREED by and among
counsel to the parties that the claims in this action are dismissed, with
prejudice as to Plaintiffs only, with each side to bear its own costs.

 

	
   

  	
  POTTER
  ANDERSON & CORROON LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
       /s/ Arthur L. Dent 

  	
   

  
	
   

  	
  Arthur L. Dent (I.D. No. 2491)

  
	
   

  	
  Michael A. Pittenger (I.D. No. 3212)

  
	
   

  	
  Melony R. Anderson (I.D. No. 4377)

  
	
   

  	
  1313 Market Street

  
	
   

  	
  Hercules Plaza, 6th Floor

  
	
   

  	
  P.O. Box 951

  
	
   

  	
  Wilmington, DE 19899-0951

  
	
   

  	
  (302) 984-6000

  
	
   

  	
   

  
	
   

  	
  Attorneys
  for Plaintiffs

  

 

 

	
   

  	
  RICHARDS
  LAYTON & FINGER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
       /s/ Raymond J. DiCamillo

  	
   

  
	
   

  	
  Raymond
  J. DiCamillo (I.D. No. 3188)

  
	
   

  	
  Gregory
  V. Varallo (I.D. No. 2242)

  
	
   

  	
  Richards, Layton & Finger

  
	
   

  	
  One Rodney Square

  
	
   

  	
  Wilmington, Delaware 19801

  
	
   

  	
  (302)
  651-7786

  
	
   

  	
   

  
	
   

  	
  Attorneys
  for Defendants

  
	
   

  	
   

  
	
   

  	
   

  
	
  SO
  ORDERED this

  	
   

  	
   day

  	
   

  
	
  of
  

  	
   

  	
  ,
  2005.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ChancellorExhibit 10.3

 

STOCK
PURCHASE AGREEMENT

 

entered into

 

April 20, 2005,

 

by and among,

 

THE GREENBRIER COMPANIES, INC.,

a Delaware corporation,

 

WILLIAM A. FURMAN,

 

GEORGE L. CHELIUS,

as Executor of the Will and Estate of Alan
James and as Trustee,

 

and

 

ERIC EPPERSON,

as
Executor of the Will and Estate of Alan James and as Trustee

 

 

Table of Contents

 

	
  ARTICLE I PURCHASE AND SALE OF SHARES

  	
   

  
	
   

  	
  Section 1.1
  Sale and Transfer of Shares

  	
   

  
	
   

  	
  Section 1.2 Upsizing; Overallotment

  	
   

  
	
   

  	
  Section 1.3 Downsized Offering

  	
   

  
	
   

  	
  Section 1.4 Rejected Price

  	
   

  
	
  ARTICLE II THE CLOSINGS

  	
   

  
	
   

  	
  Section 2.1 Closings

  	
   

  
	
   

  	
  Section 2.2 Sellers’ First Closing
  Deliveries

  	
   

  
	
   

  	
  Section 2.3 Company First Closing
  Deliveries

  	
   

  
	
   

  	
  Section 2.4 Sellers’ Second Closing
  Deliveries

  	
   

  
	
   

  	
  Section 2.5 Company Second Closing
  Deliveries

  	
   

  
	
  ARTICLE III REPRESENTATIONS AND
  WARRANTIES OF FURMAN

  	
   

  
	
   

  	
  Section 3.1 Ownership; Title

  	
   

  
	
   

  	
  Section 3.2 Power and Authority;
  Consent and Approvals; No Violations

  	
   

  
	
   

  	
  Section 3.3 Binding Agreement

  	
   

  
	
   

  	
  Section 3.4 Good Title Conveyed

  	
   

  
	
  ARTICLE IV REPRESENTATIONS AND
  WARRANTIES OF THE REPRESENTATIVES

  	
   

  
	
   

  	
  Section 4.1 Ownership; Title

  	
   

  
	
   

  	
  Section 4.2 Power and Authority;
  Consents and Approvals; No Violations

  	
   

  
	
   

  	
  Section 4.3 Binding Agreement

  	
   

  
	
   

  	
  Section 4.4 Good Title Conveyed

  	
   

  
	
  ARTICLE V
  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

  	
   

  
	
   

  	
  Section 5.1 Organization

  	
   

  
	
   

  	
  Section 5.2 Authorization; Validity of
  Agreement; Necessary Action

  	
   

  
	
   

  	
  Section 5.3 Consents and Approvals; No
  Violations

  	
   

  
	
  ARTICLE VI COVENANTS; CONDITIONS TO
  CLOSING; TERMINATION

  	
   

  
	
   

  	
  Section 6.1 Satisfaction of Conditions

  	
   

  
	
   

  	
  Section 6.2 Share Purchase Proposal

  	
   

  
	
   

  	
  Section 6.3 Conditions to Closings

  	
   

  
	
   

  	
  Section 6.4 Termination

  	
   

  
	
   

  	
  Section 6.5 Effect of Termination

  	
   

  
	
  ARTICLE VII
  INDEMNIFICATION

  	
   

  
	
   

  	
  Section 7.1 Indemnification
  Obligations

  	
   

  
	
  ARTICLE VIII MISCELLANEOUS

  	
   

  
	
   

  	
  Section 8.1 Fees and Expenses

  	
   

  
	
   

  	
  Section 8.2 Further Assurances

  	
   

  
	
   

  	
  Section 8.3 Entire Agreement

  	
   

  
	
   

  	
  Section 8.4 Successors and Assigns

  	
   

  
	
   

  	
  Section 8.5 Construction

  	
   

  
	
   

  	
  Section 8.6 Severability

  	
   

  
	
   

  	
  Section 8.7 Amendment and Modification

  	
   

  
	
   

  	
  Section 8.8 Choice of Law; Venue

  	
   

  

 

i

 

	
   

  	
  Section 8.9 Notices

  	
   

  
	
   

  	
  Section 8.10 Counterparts

  	
   

  
	
   

  	
  Section 8.11 Facsimile Transmissions

  	
   

  
	
   

  	
  Section 8.12 Parties in Interest;
  Third Party Beneficiaries

  	
   

  
	
   

  	
  Section 8.13 No Recourse

  	
   

  
	
   

  	
  Section 8.14 Specific Performance

  	
   

  

 

ii

 

STOCK
PURCHASE AGREEMENT

 

This STOCK PURCHASE AGREEMENT (this “Agreement”) is
entered into as of April 20, 2005, by and among George L. Chelius and Eric
Epperson, not in their individual capacities but solely in their capacities as
Executors (each a “Representative” and together the “Representatives”) of the
will and estate of Alan James (“James”) pursuant to Letters Testamentary (“Letters
Testamentary”)(Case Number 050290219), dated February 17, 2005, issued by
the Circuit Court of the State of Oregon for the County of Multnomah (the “Estate”)
and, to the extent provided in Section 3.12 of the Settlement Agreement
(as defined herein), as Trustees of a Trust referred to in Section 3.12 of
the Settlement Agreement), William A. Furman (“Furman,” and together with the
Representatives, the “Sellers”) and The Greenbrier Companies, Inc., a
Delaware corporation (the “Company”), (the Sellers and the Company sometimes
referred to collectively as the “Parties” or individually as a “Party”).

 

W  I 
T  N  E 
S  S  E 
T  H

 

WHEREAS, Furman is the beneficial owner of 3,918,000
shares (the “Furman Shares”) of the common stock of the Company, par value
$0.001 per share (the “Common Stock”);

 

WHEREAS, James died on January 28, 2005 and at
the time of his death he owned 3,918,000 shares of Common Stock which are
currently vested in the beneficiaries of the Estate, subject to administration
of the Estate by the Representatives;

 

WHEREAS, the Representatives desire to sell, and the
Company desires to purchase, up to 3,915,000 shares of Common Stock (the “Estate
Shares”), pursuant to the terms and conditions of this Agreement;

 

WHEREAS, the Company, the Representatives and Furman
have entered into that certain Settlement Agreement, dated as of April 20,
2005 (the “Settlement Agreement”) pursuant to which the parties have agreed to
resolve certain litigation, claims and other matters, all as provided in the
Settlement Agreement;

 

WHEREAS, pursuant to the terms of the Settlement
Agreement, the Parties have agreed to enter into this Agreement;

 

WHEREAS, pursuant to the terms of the Settlement
Agreement, the Company shall file a prospectus supplement (the “Prospectus
Supplement”), substantially in the form of the draft dated April 20, 2005
delivered to the Representatives but may be amended to reflect such changes as
the Company and the Underwriters (as defined below) deem reasonably necessary
or appropriate, for a primary public equity offering from its existing shelf
registration statement of 4,500,000 shares of Common Stock plus shares issuable
upon exercise of the Underwriters’ overallotment option (the “Offering”) of
Common Stock and, under certain terms and conditions, to purchase the shares of
Common Stock from Furman and the Representatives pursuant to the terms and
conditions of this Agreement, provided, that the Company shall be able
to upsize or downsize the offering as provided herein; and

 

1

 

WHEREAS, in connection with the Offering, the Company
intends to enter into an Underwriting Agreement (the “Underwriting Agreement”),
by and among the underwriters listed therein (the “Underwriters”),
substantially similar to the draft dated April 20, 2005 delivered to the
Estate.

 

NOW, THEREFORE, in consideration of the foregoing and
the mutual representations, warranties, covenants and agreements set forth
herein, intending to be legally bound hereby, the parties hereto agree as
follows:

 

ARTICLE I

PURCHASE AND SALE OF SHARES

 

Section 1.1  
Sale and Transfer of Shares.

 

(a)                                  On the First Closing Date (as
defined herein) and upon the terms and subject to the conditions set forth in
this Agreement, Furman shall sell, assign, transfer, convey and deliver to the
Company 1,500,000 Furman Shares (the “Primary Furman Shares”), subject to
adjustment pursuant to Sections 1.2, 1.3 and 1.4 hereof, free and clear of any
and all liens (including liens for taxes), charges, security interests,
options, claims, mortgages, pledges, proxies, voting trusts or agreements,
obligations, understandings or arrangements or other restrictions on title or
transfer of any nature whatsoever, other than pursuant to the Stockholders’
Agreement, dated as of July 1, 1994, by and between Alan James and Furman,
as amended (the “Stockholders’ Agreement”), the Settlement Agreement and the
Stockholder Rights Plan, dated as of July 13, 2004, by and between the
Company and Equiserve Trust Company, N.A., as amended (the “Stockholder Rights
Plan”) (collectively, “Encumbrances”).

 

(b)                                 On the First Closing Date and upon
the terms and subject to the conditions set forth in this Agreement, the
Representatives shall sell, assign, transfer, convey and deliver to the Company
3,166,667 Estate Shares (the “Primary Estate Shares,” and together with the
Primary Furman Shares, the “Primary Shares”), subject to adjustment pursuant to
Sections 1.2, 1.3 and 1.4 hereof, free and clear of all Encumbrances.

 

(c)                                  Each of the Sellers hereby consents
to the sale of the other Seller’s Common Stock to the Company pursuant to this
Agreement (whether pursuant to Section 1.1, 1.2, 1.3 or 1.4), and the
respective consents include but are not limited to, the consent and waiver of
the right of first refusal with respect to such sale contained in Section 5.02
of the Stockholders’ Agreement.

 

(d)                                 The purchase price per share for
each Primary Furman Share sold pursuant to Section 1.1(a) shall be
the Net Offering Price (as defined herein).

 

(e)                                  Subject to adjustment pursuant to
Sections 1.2, 1.3 and 1.4 hereof, the purchase price per share for the first
1,500,000 Primary Estate Shares sold pursuant to Section 1.1(b) shall
be the Net Offering Price and the purchase price per share for the remaining
1,666,667 Primary Estate Shares sold pursuant to Section 1.1(b) shall
be 90% of the Net Offering Price (the “Discount Price”).

 

2

 

(f)                                    “Net Offering Price” shall mean the
price per share of the Common Stock offered to the public, net of underwriting
discounts and the reimbursement payment payable to Relational Advisors, LLC
pursuant to Section 6.1(c) of this Agreement, equal to 6% of the
gross proceeds of the Offering and documented, reasonable out-of-pocket
expenses directly related to the Offering, provided, that such
out-of-pocket expenses shall not exceed 1% of the gross proceeds of the
Offering.

 

Section 1.2   Upsizing; Overallotment.

 

(a)                                  If the Company sells more than
4,500,000 shares of Common Stock in the Offering as a result of (i) an
upsizing of the Offering (the “Upsized Shares Offering”) or (ii) the
exercise of the overallotment option granted to the Underwriters (the “Overallotment
Shares Offering”), the Company shall purchase, on the First Closing Date, in
the case of an Upsized Shares Offering, or the Second Closing Date, in the case
of an Overallotment Shares Offering, additional Furman Shares and additional
Estate Shares in the amounts specified herein.

 

(b)                                 For shares of Common Stock sold by
the Company in excess of 4,500,000 shares of Common Stock as a result of an
Upsized Shares Offering or an Overallotment Shares Offering, the Company shall
purchase Furman Shares and Estate Shares as follows:

 

(i)                                     for the first 1,000,000 of such
shares sold by the Company, the Company shall purchase Furman Shares and Estate
Shares on an equal basis from each of Furman and the Representatives; and

 

(ii)                                  for any shares sold by the Company
beyond 1,000,000 of such shares, the Company shall purchase an equal number of
Estate Shares from the Representatives until the Representatives have sold all
of the Estate Shares to the Company.

 

(c)                                  In no event shall the Company
purchase or be obligated to purchase, or Furman sell or be obligated to sell,
more than 2,000,000 Furman Shares.

 

(d)                                 The purchase price per share for all
Furman Shares and Estate Shares purchased pursuant to Section 1.2(b) as
a result of an Upsized Shares Offering or an Overallotment Shares Offering
shall be the Net Offering Price.

 

(e)                                  Any upsizing of the Offering shall
be at the sole discretion of the Company.

 

(f)                                    Any exercise of the overallotment
option shall be at the sole discretion of the Underwriters.

 

Section 1.3   Downsized Offering.

 

(a)                                  This Section 1.3 assumes that
any Offering of less than 4,500,000 shares 
shall at the First Closing be a Downsized Offering (as defined herein)
and the purchase and sale of such shares shall be governed by Section 1.3(b).  If following such First Closing there is an
Overallotment Shares Offering, then the purchase and sale of shares to be
consummated at the Second Closing shall be governed by this Section 1.3

 

3

 

whether or not the aggregate number
of shares of Common Stock sold by the Company in the Overallotment Shares
Offering plus the amount of
shares sold in a Downsized Offering (the “Downsized Offering Amount”) exceeds
4,500,000 shares.  In such circumstances,
the Furman Shares and Estate Shares to be purchased by the Company at the
Second Closing as a result of the Overallotment Shares Offering shall be
allocated as follows: (i) the Company shall purchase (x) additional Estate
Shares in an amount equal to two-thirds (2/3) of (z), and (y) additional Furman
Shares in an amount equal to one-third (1/3) of (z), where (z) equals the
lesser of the number of shares sold in the Overallotment Shares Offering or the
amount by which 4,500,000 shares exceeds
the Downsized Offering Amount, in each case pursuant to this Section 1.3,
and (ii) the Company shall purchase the remaining shares as a result
of  the Overallotment Shares Offering on
an equal basis from each of Furman and the Representatives pursuant to Section 1.2(b)(i) hereof.

 

(b)                                 Subject to Section 1.4 hereof,
in the event that the number of shares of Common Stock sold by the Company in
the Offering is less than 4,500,000 shares (a “Downsized Offering”), the number
of Primary Furman Shares purchased by the Company pursuant to Section 1.1(a) hereof
shall be reduced by 33 1/3 % of the difference between 4,500,000 shares and the
number of shares sold (the “Downsized Furman Shares”) and the number of Primary
Estate Shares purchased by the Company shall be reduced by 66 2/3 % of the
difference between 4,500,000 shares and the number of shares sold (the “Downsized
Estate Shares”).  The purchase price per
share for each Downsized Furman Share shall be the Net Offering Price.  The purchase price per share for each
Downsized Estate Share shall be the Net Offering Price up to an aggregate
number of Downsized Estate Shares equal to the number of Downsized Furman
Shares.  Thereafter, in the case of a
Downsized Offering, the purchase price per share for the any additional Estate
Shares purchased pursuant to this Agreement shall be the Discount Price.

 

Section 1.4   Rejected Price.

 

(a)                                  If Furman decides not to sell Furman
Shares to the Company because pursuant to Section 1.3.5 of the Settlement
Agreement he rejects the price to be paid to the Company by the Underwriters in
the Offering (a “Furman Rejection”), 
then (i) the Company shall not be obligated to purchase any Furman
Shares and shall not purchase any Furman Shares, (ii) the Company shall
not reduce the size of the Offering on account of the Furman Rejection below
the number of shares necessary to enable the Company to purchase the aggregate
number of Estate Shares specified in the following clauses (iii) and (iv),
(iii) the Representatives, in their sole discretion, may elect to sell to
the Company the same number of Estate Shares they could have sold to the
Company but for the Furman Rejection and (iv) the Representatives, in
their sole discretion, may elect to sell additional Estate Shares to the Company
up to a number equal to the number of shares of Common Stock sold in the
Offering in excess of the shares of Common Stock sold pursuant to the foregoing
clause (iii).

 

(b)                                 The purchase price per share for
Estate Shares in the case of a sale pursuant to Section 1.4(a) shall
be the Net Offering Price for an amount of Estate Shares equal to the number of
Furman Shares that would have been sold to the Company but for

 

4

 

the Furman Rejection.  Thereafter, the purchase price per share for
Estate Shares shall be (i) the Discount Price for any remaining Estate
Shares sold to the Company for the next 1,666,667 Estate Shares and (ii) the
Net Offering Price for any Estate Shares sold to the Company in excess of 3,166,667
Estate Shares.

 

(c)                                  If the Representatives decide to not
to sell Estate Shares to the Company because pursuant to Section 1.3.5 of
the Settlement Agreement they reject the price to be paid to the Company by the
Underwriters in the Offering (a “Representatives Rejection”),  then the Company shall not be obligated to
purchase any Estate Shares and Furman, in his sole discretion, may elect to
sell to the Company the same number of Furman Shares he could have sold to the
Company but for the Representatives Rejection. Furman may elect, in his sole
discretion, to sell Furman Shares to the Company equal to the amount of shares
of Common Stock sold in the Offering in excess of the shares of Common Stock
sold pursuant to the preceding sentence up to a maximum of 2,000,000 Furman
Shares.

 

(d)                                 The purchase price per share for
Furman Shares sold pursuant to Section 1.4(c) hereof shall be the Net
Offering Price.

 

ARTICLE II

THE CLOSINGS

 

Section 2.1   Closings.

 

(a)                                  Consummation of the purchase and
sale of Estate Shares and Furman Shares contemplated hereby (the “Closings”)
shall take place at the offices of Skadden, Arps, Slate, Meagher &
Flom LLP, 300 South Grand Avenue, Suite 3400, Los Angeles, CA 90071 at
10:00 a.m., local time.

 

(b)                                 The purchase and sale of the Primary
Shares and any additional Furman Shares or Estate Shares purchased and sold
pursuant to an Upsized Shares Offering, if applicable, or a Downsized Offering,
if applicable, and in each case excluding any Furman Shares or Estate Shares
purchased and sold pursuant to an Overallotment Shares Offering, shall be
consummated on the first business day following the day on which the last of
the conditions set forth in (i) Section 6.3(a), and (ii) Section 6.3(b)(i),
with respect to the purchase and sale of Furman Shares, or Section 6.3(b)(ii),
with respect to the purchase and sale of Estate Shares, hereof are fulfilled or
waived (other than those conditions that by their nature are to be fulfilled at
such Closing, but subject to the fulfillment or waiver of those conditions), or
at such other time and place and on such other date as the Company and the
Sellers shall agree (the “First Closing Date,” and the consummation of such
purchase and sale the “First Closing”).

 

(c)                                  The purchase and sale of any
additional Furman Shares or Estate Shares purchased and sold pursuant to an
Overallotment Shares Offering shall be consummated on the first business day
following the day on which the last of the conditions set forth in Section 6.3(d) hereof
are fulfilled or waived (other than those conditions that by their nature are
to be fulfilled at the Closing, but subject to the fulfillment or waiver of
those conditions), or at such other time and place and on such

 

5

 

other date as the Company and the
Sellers shall agree (the “Second Closing Date,” and the consummation of such
purchase and sale, the “Second Closing,” and together with the First Closing
Date, each a “Closing Date”).

 

(d)                                 For the avoidance of doubt, if the
conditions to any Closing have been satisfied or waived with respect to one
Seller, but have not been satisfied or waived with respect to the other Seller
then the Company and such Seller, with respect to which all conditions to such
Closing have been satisfied or waived, shall consummate such Closing in
accordance with the terms hereof.

 

Section 2.2   Sellers’ First Closing Deliveries.

 

Subject to the conditions set forth in this Agreement,
at the First Closing, simultaneously with the Company’s deliveries hereunder,
each Seller shall deliver or cause to be delivered to the Company stock
certificates representing such Seller’s (a) Primary Shares, (b) shares
sold pursuant to an Upsized Shares Offering, if applicable or (c) shares
sold pursuant to a Downsized Offering, if applicable, in each case (i) excluding
any Furman Shares or Estate Shares purchased and sold pursuant to an
Overallotment Shares Offering, (ii) accompanied by stock powers duly
endorsed in blank or accompanied by duly executed instruments of transfer and
appropriate signature guarantees and (iii) a certified copy of the Letters
Testamentary issued by the Circuit Court of the State of Oregon for the County
of Multnomah, Department of Probate (the “Probate Court”) and dated within 60
days of the First Closing Date.

 

Section 2.3   Company First Closing Deliveries.

 

Subject to the conditions set forth in this Agreement,
at the First Closing, simultaneously with the Sellers’ deliveries hereunder,
the Company shall deliver or cause to be delivered the purchase price for such
Seller’s (a) Primary Shares, (b) shares purchased pursuant to an
Upsized Shares Offering, if applicable or (c) shares purchased pursuant to
a Downsized Offering, if applicable, in each case, excluding any Furman Shares
or Estate Shares purchased and sold pursuant to an Overallotment Shares
Offering, by wire transfer of immediately available funds to a United States
account designated in writing by such Seller.

 

Section 2.4   Sellers’ Second Closing Deliveries.

 

Subject to the conditions set forth in this Agreement,
at the Second Closing, simultaneously with the Company’s deliveries hereunder,
each Seller shall deliver or cause to be delivered to the Company (a) stock
certificates representing such Seller’s shares sold pursuant to an Overallotment
Shares Offering, if applicable, accompanied by stock powers duly endorsed in
blank or accompanied by duly executed instruments of transfer and appropriate
signature guarantees and (b) a certified copy of the Letters Testamentary
issued by the Probate Court and dated within 60 days of the Second Closing Date

 

6

 

Section 2.5   Company Second Closing Deliveries.

 

Subject to the conditions set forth in this Agreement,
at the Second Closing, simultaneously with the Sellers’ deliveries hereunder,
the Company shall deliver or cause to be delivered the purchase price for such
Seller’s shares purchased pursuant to an Overallotment Shares Offering by wire
transfer of immediately available funds to a United States account designated
in writing by such Seller.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF FURMAN

 

Furman represents and warrants to the Company and the
Representatives that the statements contained in this Article III are true
and correct as of the date hereof and as of each Closing Date.

 

Section 3.1   Ownership; Title.

 

(a)                                  Furman is the sole lawful record and
beneficial owner of the number and type of Furman Shares set forth opposite his
name on Exhibit A hereto, which ownership is free and clear of all
Encumbrances.  Except for certain rights
described in the Stockholders’ Agreement, the Settlement Agreement and the
Stockholder Rights Plan, the Furman Shares set forth opposite Furman’s name on Exhibit A
hereof, are the only class of capital stock, securities convertible into or
exchangeable for any shares of capital stock, warrants, options, agreements,
call rights, conversion rights, exchange rights, preemptive rights or other
rights or commitments or understandings which call for the issuance, sale, delivery,
pledge, transfer, redemption or other disposition of any shares of capital
stock of the Company that Furman owns, beneficially or of record.  Furman has not received any notice of any
adverse claim to the ownership of any Furman Shares, does not have any reason
to know of any such adverse claim that may be justified and is not aware of
existing facts that would give rise to any adverse claim to the ownership of
the Furman Shares.

 

(b)                                 The Furman Shares and the
certificates representing the Furman Shares owned by Furman are now, and at all
times during the term hereof will be, held by Furman, or by a nominee, trustee
or custodian for the benefit of Furman, free and clear of all Encumbrances,
except for any such Encumbrances arising hereunder.

 

Section 3.2   Power and Authority; Consent and
Approvals; No Violations.

 

Furman has full capacity to execute and deliver this
Agreement and to consummate the purchase and sale of the Furman Shares to the
Company pursuant to this Agreement.  No
other action on the part of Furman is necessary for the execution and delivery
by Furman of this Agreement or the consummation of the purchase and sale of the
Furman Shares pursuant to this Agreement. 
None of the execution and delivery or performance of this Agreement by
Furman, or compliance by Furman with any of the provisions hereof will (i) conflict
with or result in any breach of any provision of any agreement, trust or other
document to which Furman is a party or by which he is bound,

 

7

 

(ii) require any filing by Furman with, or any permit,
authorization, consent or approval of, any judicial or Governmental Authority
(as defined herein), (iii) require any consent, other than the consents
provided by Furman and the Representatives pursuant to this Agreement and
pursuant to the Stockholders’ Agreement, approval or notice under, or result in
a violation or breach of, or constitute (with or without due notice or the
passage of time or both) a default (or give rise to any right of termination,
amendment, cancellation or acceleration) under, any of the terms, conditions or
provisions of any agreement to which Furman is a party or by which his assets
or properties are bound, or (iv) violate any order, writ, injunction,
decree, statute, rule or regulation applicable Furman or any of his assets
or properties.

 

Section 3.3   Binding Agreement.

 

This Agreement has been duly executed and delivered by
Furman and, assuming the due and valid authorization, execution and delivery
hereof by the Representatives and the Company, this Agreement is a valid and
binding obligation of  Furman enforceable
against him in accordance with its terms, except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and
other similar laws of general application affecting enforcement of creditors’
rights generally.

 

Section 3.4   Good Title Conveyed.

 

The stock certificates, stock powers, endorsements,
assignments and other instruments to be executed and delivered by Furman to the
Company on the Closing Dates in accordance with the terms of this Agreement
will be, when so executed and delivered, valid and binding obligations of
Furman, enforceable in accordance with their respective terms, and will
effectively vest in the Company good, valid and marketable title to the Furman
Shares transferred to the Company by Furman pursuant to and as contemplated by
this Agreement, free and clear of all Encumbrances.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE REPRESENTATIVES

 

Each of the Representatives represents and warrants to
the Company and Furman that the statements contained in this Article IV
are true and correct as of the date hereof and as of each Closing Date.

 

Section 4.1   Ownership; Title.

 

(a)                                  The number and type of Estate Shares
set forth opposite the Representative’s names on Exhibit A hereto are held
of record in the name of Alan James and are currently vested in the
beneficiaries of the Estate subject to administration of the Estate by the
Representatives, and the Estate shares are held free and clear of all
Encumbrances, except for (i) the rights and claims of the Representatives
and the beneficiaries of the Estate and (ii) those Encumbrances that will
not adversely effect the

 

8

 

Company’s ownership of such shares
upon transfer.  Except for certain rights
described in the Stockholders’ Agreement, the Settlement Agreement and the
Stockholder Rights Plan, the Estate Shares set forth opposite the Representative’s
names on Exhibit A hereof, are the only class of capital stock, securities
convertible into or exchangeable for any shares of capital stock, warrants,
options, agreements, call rights, conversion rights, exchange rights,
preemptive rights or other rights or commitments or understandings which call
for the issuance, sale, delivery, pledge, transfer, redemption or other
disposition of any shares of capital stock of the Company that the Estate own,
beneficially or of record.  The
Representatives have not received any notice of any adverse claim to the
ownership of any Estate Shares, do not have any reason to know of any such
adverse claim that may be justified and are not aware of existing facts that
would give rise to any adverse claim to the ownership of the Estate Shares.

 

(b)                                 The Estate Shares and the
certificates representing the Estate Shares owned by the Estate are now, and at
all times during the term hereof will be, held by the Representatives, or by a
nominee, representative, trustee or custodian for the benefit of the Estate,
free and clear of all Encumbrances, except for any such Encumbrances arising
hereunder.

 

Section 4.2   Power and Authority; Consents and
Approvals; No Violations.

 

The Representatives have full power and authority to
execute and deliver this Agreement and to consummate the purchase and sale of
the Estate Shares to the Company pursuant hereto.  No other action on the part of the
Representatives is necessary to authorize the execution and delivery by the
Representatives of this Agreement or the consummation of the purchase and sale
of the Estate Shares to the Company pursuant to this Agreement.  None of the execution and delivery or
performance of this Agreement by the Representatives, or compliance by the
Representatives with any of the provisions hereof will (i) conflict with
or result in any breach of any provision of any will, trust or other document
to which the Representatives are parties or by which they are bound, (ii) require
any filing by the Representatives with, or that the Representatives obtain any
permit, authorization, consent or approval of, any judicial or Governmental
Authority (as defined herein), other than the release by the Internal Revenue
Service of the estate tax lien on the Estate Shares which shall be obtained by
the Representatives prior to the transfer of the Estate Shares to the Company
pursuant hereto, (iii) require any consent, other than the consents
provided by Furman and the Representatives pursuant to this Agreement and
pursuant to the Stockholders’ Agreement, approval or notice under, or result in
a violation or breach of, or constitute (with or without due notice or the
passage of time or both) a default (or give rise to any right of termination,
amendment, cancellation or acceleration) under, any of the terms, conditions or
provisions of any agreement to which the Representatives are parties or by
which the assets or properties of the Estate are bound, or (iv) violate
any order, writ, injunction, decree, statute, rule or regulation
applicable to the Representatives or any assets or properties of the Estate.

 

9

 

Section 4.3   Binding Agreement.

 

This Agreement has been duly executed and delivered by
the Representatives and, assuming the due and valid authorization, execution
and delivery hereof by Furman and the Company, this Agreement is a valid and
binding obligation of the Representatives enforceable against them in their
capacities as Representatives of the Estate and in their capacities as Trustees
of a Trust, in accordance with its terms, except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and
other similar laws of general application affecting enforcement of creditors’
rights generally.

 

Section 4.4   Good Title Conveyed.

 

The stock certificates, stock powers, endorsements,
assignments and other instruments to be executed and delivered by the
Representatives to the Company on the Closing Dates in accordance with the
terms of this Agreement will be, when so executed and delivered, valid and
binding obligations of the Representatives, enforceable in accordance with
their respective terms, and will effectively vest in the Company good, valid
and marketable title to the Estate Shares transferred to the Company by the
Representatives pursuant to and as contemplated by this Agreement, free and
clear of all Encumbrances.

 

ARTICLE V

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

The Company represents and warrants to each of the
Sellers that the statements contained in this Article V are true and
correct as of the date hereof and as of each Closing Date.

 

Section 5.1   Organization.

 

The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Delaware.

 

Section 5.2   Authorization; Validity of Agreement;
Necessary Action.

 

The Company has full power and authority to execute
and deliver this Agreement and to consummate the purchase and sale of the
Furman Shares and the Estate Shares contemplated hereunder.  The execution, delivery and performance by
the Company of this Agreement and the consummation of the purchase and sale of
the Furman Shares and the Estate Shares contemplated hereunder have been duly
authorized by the board of directors of the Company and no other corporate
action on the part of the Company is necessary to authorize the execution and
delivery by the Company of this Agreement, the performance of its obligations
hereunder or the purchase and sale of the Furman Shares and the Estate Shares
contemplated hereunder.  This Agreement
has been duly executed and delivered by the Company and, assuming due and valid
authorization, execution and delivery hereof by the Sellers, this Agreement is
a valid and binding

 

10

 

obligation of the Company, enforceable against the Company in
accordance with its terms, except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance and other similar
laws of general application affecting enforcement of creditors’ rights
generally.

 

Section 5.3   Consents and Approvals; No Violations.

 

None of the execution, delivery or performance of this
Agreement by the Company, the consummation by the Company of the purchase and
sale of the Furman Shares and the Estate Shares contemplated hereunder or
compliance by the Company with any of the provisions hereof will (i) conflict
with or result in any breach of any provision of the articles of incorporation,
bylaws or other organizational documents of the Company, (ii) require any
filing with (other than any required filings with the Commission, all of which
will be duly and timely made by the Company prior to each Closing Date), or
permit, authorization, consent or approval of, any judicial or Governmental
Authority, (iii) require any consent, other than the consents provided by
the Sellers pursuant to this Agreement and pursuant to the Stockholders’
Agreement, approval or notice under, or result in a violation or breach of, or
constitute (with or without due notice or the passage of time or both) a
default (or give rise to any right of termination, amendment, cancellation or
acceleration) under, any of the terms, conditions or provisions of any
agreement to which  the Company is a
party or by which its assets or properties are bound, or (iv) violate any
order, writ, injunction, decree, statute, rule or regulation applicable to
the Company or any of its assets or properties.

 

ARTICLE VI

COVENANTS; CONDITIONS TO CLOSING; TERMINATION

 

Section 6.1   Satisfaction of Conditions.

 

(a)                                  At any time and from time to time,
each Party to this Agreement agrees, subject to the terms and conditions of
this Agreement, to take such actions and to execute and deliver such documents
as may be reasonably necessary to effectuate the purposes of this Agreement at
the earliest practicable time, including, without limitation, causing the
release of any lien of the Internal Revenue Service on the Estate Shares.

 

(b)                                 The Representatives and Furman shall
cooperate with the Company and the Underwriters in connection with the Offering
to the extent reasonably requested by the Company, provided, that
neither the Representatives nor Furman shall be required to take any action
that will cause the Representatives or Furman to incur any out-of-pocket
expenses or to enter into any agreement with the Company, the Underwriters or
any other party other than the agreement necessary to effect the 90-day
lockup as set forth in the Settlement Agreement.

 

(c)                                  The Company shall have 60 days from
the date the Prospectus Supplement is first filed with the Securities and
Exchange Commission to complete the Offering (plus any mutually agreed
extensions thereof, the “Offering Period”) and shall use commercially
reasonable efforts to complete the Offering within the Offering Period

 

11

 

in a manner that results in the
obligation of the Company to purchase at least 2,000,000 shares of Common Stock
from the Representatives pursuant to this Agreement.

 

(d)                                 The Company shall permit Relational
Advisors LLC (“Relational”), as financial advisor to the Representatives, to
observe and receive periodic information about the Offering, and will (i) cause
Bear Stearns & Co. Inc. to provide Relational with daily updates on
the progress of the Offering, including the status of the book-building
process, (ii) provide Relational with an opportunity to review the road
show presentation and (iii) permit Relational to listen in on the pricing
call.  Notwithstanding the foregoing, in
no event shall Relational have any power or authority to alter or amend any
terms of the Offering or to delay, accelerate, terminate or suspend the
Offering.

 

(e)                                  Within one business day following
the First Closing and within one business day following the Second Closing, if
applicable, the Company shall pay to Relational a fee in an amount equal to
0.3% of the aggregate gross proceeds of the Offering or the aggregate gross
proceeds of the sale of shares by the Company upon exercise of the overallotment
option, as the case may be.  The payment
by the Company shall constitute a reimbursement of the Representatives for a
portion of the fee the Representatives are obligated to pay to Relational on
account of the transactions provided for in this Agreement.

 

Section 6.2   Share Purchase Proposal.

 

Until the termination of this Agreement pursuant to Section 6.4
hereof, none of the Sellers, or any affiliates of any of the Sellers, shall,
directly or indirectly, encourage, solicit, initiate or participate in
discussions or negotiations with, or provide any information to, any Person or
group (as defined in Section 13(d)(3) of the Exchange Act) (other
than the Company, any of its affiliates or representatives) concerning any
acquisition or purchase of any Estate Shares or Furman Share (each a “Share
Purchase Proposal”), provided, however, that nothing contained in this
Agreement shall prohibit the Representatives from pledging the Pledged Shares
or consummating the Loan (as those terms are defined in Section 1.8 of the
Settlement Agreement).  The Sellers shall
not enter into any agreement with respect to any Share Purchase Proposal.  Upon execution of this Agreement, each Seller
shall immediately cease any existing activities, discussions or negotiations with
any parties conducted heretofore with respect to any of the foregoing, and each
such Seller shall request (or if any of them has the contractual right to do
so, demand) the return of all documents, analyses, financial statements,
projections, descriptions and other data previously furnished to others in
connection therewith. Each Seller shall immediately notify the Company of the
existence of any proposal or inquiry received by such Seller, and each Seller
shall immediately communicate to the Company the terms of any proposal or
inquiry which any of them may receive (and shall immediately provide to the
Company copies of any written materials received by such Seller in connection
with such proposal, discussion, negotiation or inquiry) and the identity of the
party making such proposal or inquiry.

 

12

 

Section 6.3   Conditions to Closings.

 

(a)                                  Conditions to Each Party’s
Obligations.  The respective obligations
of the Company, on the one hand, and the Sellers, on the other hand, to
consummate the purchase and sale of the Primary Shares, shares purchased and
sold pursuant to an Upsized Shares Offering, if applicable, and shares
purchased and sold pursuant to a Downsized Offering, if applicable, excluding
any shares purchased and sold pursuant to an Overallotment Shares Offering,
under this Agreement are subject to the satisfaction, at or prior to the First
Closing Date, of the following conditions, unless waived by the Company and the
Sellers in writing:

 

(i)                                     No statute, rule or regulation
shall have been enacted or promulgated by any court, arbitral tribunal,
administrative agency or commission or other governmental or other regulatory
authority, or any other federal, state or local or foreign authority or forum (a
“Governmental Authority”) which prohibits the consummation of the transactions
contemplated hereby; and there shall be no material order, judgment, writ,
injunction, decree, statute, rule or regulation or injunction of a court
of competent jurisdiction in effect precluding consummation of the transactions
contemplated hereby.

 

(ii)                                  The Offering shall have closed.

 

(b)                                 Conditions to Obligations of the
Company.  The obligations of the Company
to consummate the purchase of the Primary Shares, shares to be purchased upon
completion of an Upsized Shares Offering, if applicable, and shares to be
purchased upon completion of a Downsized Offering, if applicable, excluding any
shares to be purchased upon completion of an Overallotment Shares Offering, if
applicable, under this Agreement are subject to the satisfaction, at or prior
to the First Closing Date, of the following conditions, unless waived by the
Company in writing:

 

(i)                                     With respect to the Company’s
obligation to purchase Furman Shares,

 

(1)    Furman shall have performed and complied in
all material respects with his obligations under this Agreement required to be
performed by him at or prior to the First Closing Date.

 

(2)    The representations and warranties of Furman
contained in this Agreement shall be true and correct in all material respects,
in each case as of the date of this Agreement and at the First Closing Date as
if made at and as of such date.

 

(3)    Furman shall have accepted the price of the
Company’s Common Stock to be sold in the Offering.

 

(4)    The Company shall have received Furman’s
Closing deliveries pursuant to Sections 2.2 and 2.4 hereof, if applicable.

 

13

 

(ii)                                  With respect to the Company’s
obligation to purchase Estate Shares,

 

(1)    The Representatives shall have performed and
complied in all material respects with their obligations under this Agreement
required to be performed by them at or prior to the First Closing Date.

 

(2)    The representations and warranties of the
Representatives contained in this Agreement shall be true and correct in all
material respects, in each case as of the date of this Agreement and at the
First Closing Date as if made at and as of such date.

 

(3)    The Representatives on behalf of the Estate
shall have accepted the price of the Company’s Common Stock to be sold in the
Offering.

 

(4)    The Company shall have received the
Representative’s Closing deliveries pursuant to Sections 2.2 and 2.4 hereof, if
applicable.

 

(c)                                  Conditions to Obligations of the
Sellers.  The obligations of any Seller
to consummate the sale of his or their Primary Shares, shares to be sold upon
completion of an Upsized Shares Offering, if applicable, and shares to be sold
upon completion of a Downsized Offering, if applicable, excluding any shares to
be sold  upon completion of an
Overallotment Shares Offering, if applicable, under this Agreement are subject
to the satisfaction, at or prior to the First Closing Date, of the following
conditions, unless waived by each Seller in writing.  Notwithstanding the foregoing, each of the
Representatives, on the one hand, and Furman, on the other hand, may waive any
of the following conditions with respect to such Seller’s shares of Common
Stock and consummate the sale of such shares without the waiver of any other
Seller.

 

(i)                                     The Company shall have performed and
complied in all material respects with its obligations under this Agreement
required to be performed by it at or prior to the First Closing Date.

 

(ii)                                  The representations and warranties
of the Company in this Agreement shall be true and correct in all material
respects, in each case as of the date of this Agreement and at the First
Closing Date as if made at and as of such date.

 

(iii)                               With respect to the obligation of
the Representatives to sell Estate Shares to the Company, the Representatives
shall have accepted the price of the Company’s Common Stock to be sold in the
Offering.

 

(iv)                              With respect to Furman’s obligation
to sell Furman Shares to the Company, Furman has accepted the price of the
Company’s Common Stock to be sold in the Offering.

 

14

 

(v)                                 Each Seller shall have received the
Company’s Closing deliveries pursuant to Sections 2.3 and 2.5 hereof, if
applicable.

 

(d)                                 Additional Conditions to Each Party’s
Obligations.  The respective obligations
of the Company, on the one hand, and the Sellers, on the other hand, to
consummate the purchase and sale of shares to be sold upon completion of an
Overallotment Shares Offering under this Agreement are subject to the
satisfaction, at or prior to the Second Closing Date, of the following
conditions, unless waived by the Company and the Sellers in writing.  Notwithstanding the foregoing, each of the
Representatives, on the one hand, and Furman, on the other hand, may waive any
of the following conditions with respect to such Seller’s shares of Common
Stock and consummate the sale of such shares without the waiver of any other
Seller.

 

(i)                                     No statute, rule or regulation
shall have been enacted or promulgated by any Governmental Authority which
prohibits the purchase and sale of shares pursuant hereto upon completion of
the Overallotment Shares Offering; and there shall be no material order,
judgment, writ, injunction, decree, statute, rule or regulation or
injunction of a court of competent jurisdiction in effect precluding
consummation of the purchase and sale of such shares.

 

(ii)                                  The purchase and sale of the Company’s
Common Stock to the Underwriters as a result of the exercise of the overallotment
option granted in the Underwriting Agreement shall have closed.

 

Section 6.4   Termination.

 

(a)                                  Mutual Termination.  This Agreement may be terminated and the
transactions contemplated hereby may be abandoned at any time prior to the
Closings by mutual written consent of each of the Sellers and the Company.

 

(b)                                 Termination by the Company.  This Agreement may be terminated and the
transactions contemplated hereby may be abandoned at any time prior to the
Closings by the Company:

 

(i)                                     with respect to Furman and the
purchase of the Furman Shares, if there has been a violation or breach by
Furman of any covenant, agreement, representation or warranty contained in this
Agreement which has rendered the satisfaction of any condition pertaining to Furman
contained in Sections 6.3(b)(i) and 6.3(d) hereof incapable of
fulfillment and such violation or breach has not been waived by the Company;

 

(ii)                                  with respect to the Representative
and the purchase of the Estate Shares, if there has been a violation or breach
by the Representatives of any covenant, agreement, representation or warranty
contained in this Agreement which has rendered the satisfaction of any
condition pertaining to the Representatives contained in Sections 6.3(b)(ii)

 

15

 

and 6.3(d) hereof incapable of
fulfillment and such violation or breach has not been waived by the Company;
and

 

(iii)                               with respect to both Furman and the
Representatives, if the Offering is not completed prior to the expiration of
the Offering Period, or such later date as mutually agreed upon by the Sellers
and the Company.

 

(c)                                  Termination by Furman.  The provisions of this Agreement pertaining
to the purchase and sale of Furman Shares may be terminated and the
transactions contemplated hereby may be abandoned at any time prior to the
Closings by Furman if (i) there has been a violation or breach by the
Company of any covenant, agreement, representation or warranty contained in
this Agreement which has rendered the satisfaction of any condition contained
in Sections 6.3(c) or 6.3(d) hereof incapable of fulfillment and such
violation or breach has not been waived by Furman or (ii) the Offering is
not completed prior to the expiration of the Offering Period, or such later
date as mutually agreed upon by the Sellers and the Company.

 

(d)                                 Termination by the
Representatives.  The provisions of this
Agreement pertaining to the purchase and sale of Estate Shares may be
terminated and the transactions contemplated hereby may be abandoned at any
time prior to the Closings by the Representatives if (i) there has been a
violation or breach by the Company of any covenant, agreement, representation
or warranty contained in this Agreement which has rendered the satisfaction of
any condition contained in Sections 6.3(c) or 6.3(d) hereof incapable
of fulfillment and such violation or breach has not been waived by the
Representatives or (ii) the Offering is not completed prior to the
expiration of the Offering Period, or such later date as mutually agreed upon
by the Sellers and the Company.

 

(e)                                  Notwithstanding any of the
foregoing, any termination by any Seller pursuant to this Section 6.4
shall not terminate the Company’s obligation to purchase, and the
non-terminating Seller’s obligation to sell, the non-terminating Seller’s
shares of Company Common Stock pursuant to the terms and conditions of this
Agreement.  In the event any Seller shall
terminate his or its obligations pursuant to this Section 6.4, such
termination shall only be valid with respect to the provisions of this
Agreement governing the purchase and sale of such Seller’s shares of Company
Common Stock.

 

(f)                                    If the Company or any of the Sellers
terminate this Agreement pursuant to the provisions hereof, such termination
will be effected by written notice to the other Parties specifying the
provision hereof pursuant to which the termination is made.

 

Section 6.5   Effect of Termination.

 

In the event of the termination of this Agreement
pursuant to Section 6.4 hereof, the relevant portions of this Agreement,
with respect to a termination by either Furman, the Representatives or the
Company, or the entire Agreement, with respect to mutual termination by the
Parties, shall forthwith become void and there shall be no

 

16

 

liability or obligation on the part of any Party or any of its
affiliates, directors, officers or stockholders, except (a) as stated in
this Section 6.5 and Article VII which shall survive such
termination, and (b) no such termination shall relieve any Party of any
liability for the material breach of any representation, warranty, covenant or
agreement hereunder by such party.

 

ARTICLE VII

 

INDEMNIFICATION

 

Section 7.1   Indemnification
Obligations.

 

(a)                                  Furman shall indemnify the Company
and its successors, permitted assigns and affiliates, and their respective
officers, directors, employees, agents, representatives and affiliates
(collectively, the “Company Indemnified Parties”) and the Representatives, the
beneficiaries of the Estate and their successors, permitted assigns and
affiliates and their respective employees, agents, trustees, representatives
and affiliates (collectively, the “Estate Indemnified Parties”) from and
against and shall reimburse the same for and in respect of any and all losses,
costs, fines, liabilities, claims, penalties, damages and expenses (including
all legal fees and expenses) of any nature or kind, fixed, accrued, absolute or
contingent, liquidated or unliquidated (collectively, “Losses”) suffered,
sustained or incurred by, or assessed against, any of them or to which any of
them is subject, which arise from or are related to a material breach of any
representation, warranty or covenant made by Furman that is contained in this
Agreement.

 

(b)                                 The Representatives, solely in their
respective capacity as Representatives of the Estate and not in their
individual or any other capacity, shall indemnify the Company Indemnified
Parties and Furman and his successors, permitted assigns and affiliates, and their
respective employees, agents, trustees, representatives and affiliates
(collectively, the “Furman Indemnified Parties”) from and against and shall
reimburse the same for and in respect of any and all Losses suffered, sustained
or incurred by, or assessed against, any of them or to which any of them is
subject, which arise from or are related to a material breach of any
representation, warranty or covenant made by the Representatives that is
contained this Agreement.

 

(c)                                  The Company shall indemnify the
Estate Indemnified Parties and the Furman Indemnified Parties from and against
and shall reimburse the same for and in respect of any and all Losses suffered,
sustained or incurred by, or assessed against, any of them or to which any of
them is subject, which arise from or are related to a material breach of any
representation, warranty or covenant made by the Company that is contained in
this Agreement.

 

17

 

ARTICLE VIII

MISCELLANEOUS

 

Section 8.1   Fees and Expenses.

 

All costs and expenses incurred in connection with
this Agreement and the consummation of the purchase and sale of the Furman
Shares and Estate Shares contemplated hereunder shall be paid by the party
incurring such expenses, except that all transfer taxes, if any, shall be borne
and paid by Furman and the Estate.

 

Section 8.2   Further Assurances.

 

Each Party hereto shall use reasonable and diligent
efforts to proceed promptly with the transactions contemplated herein, to
fulfill the conditions precedent, and to execute such other and further
documents and perform such other and further acts as may reasonably be required
or appropriate to effectuate the provisions of this Agreement.

 

Section 8.3   Entire Agreement.

 

This Agreement, the Exhibit hereto and the
agreements referred to herein constitute and are intended to constitute the
entire agreement of the Parties concerning the subject matter hereof.  No covenants, agreements, representations or
warranties of any kind whatsoever have been made by any Party hereto, except as
specifically set forth herein.  All prior
or contemporaneous discussions or negotiations with respect to the subject
matter hereof are superseded by this Agreement.

 

Section 8.4   Successors and Assigns.

 

This Agreement shall be binding upon and inure to the
benefit of the Parties, their respective heirs, successors, and assigns.

 

Section 8.5   Construction.

 

The Parties hereby acknowledge that each of them has
been represented by independent counsel of their own selection throughout all
negotiations preceding the execution of this Agreement, and that they have
executed the same after consulting with such counsel.  The Parties and their respective counsel
cooperated in the drafting and preparation of this Agreement such that it shall
be deemed to be their joint work product and may not be construed against any
of the Parties by reason of its preparation.

 

Section 8.6   Severability.

 

If any provision of this Agreement is determined by a
court of competent jurisdiction to be invalid or unenforceable, in whole or in
part, the remaining provisions, and any partially invalid or unenforceable
provisions, to the extent valid and enforceable, shall nevertheless be binding
and valid and enforceable.

 

18

 

Section 8.7   Amendment and Modification.

 

This Agreement may not be modified or amended orally
and no modification, termination or waiver shall be valid unless in writing and
signed by all of the Parties.

 

Section 8.8   Choice of Law; Venue.

 

The terms and provisions of this Agreement shall be
construed according to and governed by the laws of the State of Delaware,
notwithstanding any conflicts of law. 
Any action arising from, or relating to, the terms or provisions of this
Agreement shall be instituted in the Court of Chancery of the State of Delaware
in and for New Castle County.  Each of
the parties hereto consents to service of process by registered mail in
connection with any such action.

 

Section 8.9   Notices.

 

Unless otherwise provided herein, all notices,
demands, requests, claims and other communications hereunder shall be in
writing and may be given by any of the following methods:  (a) personal delivery; (b) facsimile
transmission; (c) registered or certified mail, postage prepaid, return
receipt requested; or (d) internationally recognized overnight courier
service.  Such notices and communications
shall be sent to the appropriate party at its address or facsimile number given
below or at such other address or facsimile number for such as shall be
specified by notice given hereunder (and shall be deemed given upon receipt by
such party or upon actual delivery to the appropriate address, or, in case of a
facsimile transmission, upon transmission thereof by the sender and issuance by
the transmitting machine of a confirmation slip that the number of pages constituting
the notice have been transmitted without error; in the case of notices sent by
facsimile transmission, the sender shall contemporaneously mail a copy of the
notice to the addressee at the address provided for above, provided  however,
that such mailing shall in no way alter the time at which the facsimile notice
is deemed received):

 

	
  if to Furman, to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  William A.
  Furman

  
	
  Address:

  	
   

  	
  Suite 200

  
	
   

  	
   

  	
  One Centerpointe
  Drive

  
	
   

  	
   

  	
  Lake Oswego, OR
  97035

  
	
  Fax No.:

  	
   

  	
  (503) 624-1488

  
	
   

  	
   

  	
   

  
	
  with a copy
  (which shall not constitute notice) to:

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Henry H. Hewitt

  
	
  Address:

  	
   

  	
  Stoel Rives LLP

  
	
   

  	
   

  	
  900 S.W. Fifth Avenue, Suite 2300

  
	
   

  	
   

  	
  Portland, OR
  97204

  
	
  Fax No.:

  	
   

  	
  (503) 220-2480

  

 

19

 

	
  if to the Estate, to:

  
	
   

  
	
  Name:

  	
   

  	
  George L. Chelius

  
	
  Address:

  	
   

  	
  3600 Birch
  Street, Suite 100

  
	
   

  	
   

  	
  Newport Beach,
  CA 92660

  
	
  Fax No.:

  	
   

  	
  (949) 863-9010

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Eric Epperson

  
	
  Address:

  	
   

  	
  25 NW 23rd
  Place, Suite 6

  
	
   

  	
   

  	
  PMB 180

  
	
   

  	
   

  	
  Portland, OR
  97210

  
	
  Fax No.:

  	
   

  	
  (503) 796-1833

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  with a copy (which shall not constitute notice) to:

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Jeffrey T.
  Pero, Esq.

  
	
   

  	
   

  	
  Latham &
  Watkins LLP

  
	
  Address:

  	
   

  	
  505 Montgomery
  Street, Suite 2000

  
	
   

  	
   

  	
  San Francisco,
  CA 94111-2562

  
	
  Fax No.:

  	
   

  	
  (415) 395-8095

  
	
   

  	
   

  	
   

  
	
  if to the Company, to:

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  The Greenbrier
  Companies, Inc.

  
	
  Address:

  	
   

  	
  Suite 200

  
	
   

  	
   

  	
  One Centerpointe
  Drive

  
	
   

  	
   

  	
  Lake Oswego, OR
  97035

  
	
   

  	
   

  	
  Attention :
  Norriss Webb, Esq.

  
	
  Fax No.:

  	
   

  	
  (503) 684-7553

  
	
   

  	
   

  	
   

  
	
  with a copy (which shall not constitute notice) to:

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Joseph
  Giunta, Esq.

  
	
   

  	
   

  	
  Skadden, Arps,
  Slate, Meagher & Flom LLP

  
	
  Address:

  	
   

  	
  300 S. Grand
  Avenue, Suite 3400

  
	
   

  	
   

  	
  Los Angeles,
  California 90071

  
	
  Fax No.:

  	
   

  	
  (213) 687-5600

  

 

Section 8.10   Counterparts.

 

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

 

20

 

Section 8.11   Facsimile Transmissions.

 

Facsimile transmissions of signatures shall be deemed
to constitute original signatures.

 

Section 8.12   Parties in Interest; Third Party
Beneficiaries.

 

This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and permitted
assigns.  Nothing in this Agreement,
express or implied, is intended to confer upon any person, other than the
Company, Furman, and the Representatives, and their successors or permitted
assigns, any rights or remedies under or by reason of this Agreement.

 

Section 8.13   No Recourse.

 

The Parties agree that all of the representations,
warranties, covenants and agreements made by the Representatives contained in
this Agreement are made and intended only for the purpose of making the assets
held for the benefit of the beneficiaries of the Estate (the “Estate Assets”)
available for the payment of the indemnification obligations of the
Representatives set forth in Section 7.1(b) of this Agreement.  Therefore, anything contained in this
Agreement or in any other agreement or document referred to herein or
contemplated hereby or thereby to the contrary notwithstanding, no recourse
shall be had with respect to the enforcement of this Agreement or the
obligations of the Representatives hereunder or for any claim based on any
provision of this Agreement or any of the agreements or documents referred to
herein or contemplated hereby or thereby, against the Representatives in their
individual capacities or in any capacity other than as Representatives.  Nothing contained in this Section 8.13
shall be construed to limit the exercise and enforcement, in accordance with
the terms of this Agreement of rights and remedies against the Estate Assets.

 

Section 8.14   Specific Performance.

 

The Parties agree that irreparable damage would occur
in the event that any of the provisions of this Agreement were not performed in
accordance with their respective terms or were otherwise breached.  It is accordingly agreed that the Parties
shall be entitled to an injunction or injunctions to prevent breaches of this
Agreement and to enforce specifically the terms and provisions of this
Agreement, this being in addition to any other remedy they are entitled to
pursuant to this Agreement.

 

[Signature
Page Follows]

 

21

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement or caused this Agreement to be executed by their respective
officers thereunto duly authorized as of the date first written above.

 

	
   

  	
  /s/ William A.
  Furman

  	
   

  
	
   

  	
  William A.
  Furman, in his capacity as an individual

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ George L.
  Chelius

  	
   

  
	
   

  	
  George L. Chelius, in
  his capacity as

  
	
   

  	
  Executor of the Will
  and Estate of

  
	
   

  	
  Alan James and Trustee
  of one or more Trusts

  
	
   

  	
  referred to in Section 3.12
  of the Settlement

  Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Eric Epperson

  	
   

  
	
   

  	
  Eric Epperson, in his
  capacity as

  
	
   

  	
  Executor of the Will
  and Estate of

  
	
   

  	
  Alan James and Trustee
  of one or more Trusts

  
	
   

  	
  referred to in
  Section 3.12 of the Settlement

  Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE GREENBRIER
  COMPANIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry G.
  Brady

  	
   

  
	
   

  	
  Name:

  	
  Larry G. Brady

  
	
   

  	
  Title:

  	
  Senior Vice President
  and Chief Financial

  Officer

  
					

 

 

[Signature Page to Stock Purchase Agreement]

 

 

EXHIBIT A

 

 

	
  Name

  	
   

  	
  Number of Shares of Common Stock par

  value $0.001 of the Greenbrier Companies,

  Inc.

  	
   

  
	
  William A. Furman

  	
   

  	
  3,915,000

  	
  (1)

  
	
   

  	
   

  	
   

  	
   

  
	
  Representatives (shares vested in the
  beneficiaries of the Estate subject to administration of the Estate by the
  Representatives)

  	
   

  	
  3,915,000

  	
  (1)

  

 

(1)  Excludes 3,000 shares of
Common Stock subject to the James-Furman 1994 Supplemental Stock Option Plan.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]