Document:

Purchase Agreement, dated as of November 19, 2003

  
 Exhibit 10.20

  
 PURCHASE AGREEMENT 
  
 PURCHASE AGREEMENT, dated as of November 19, 2003 by and among Caravelle
Investment Fund, L.L.C. (“Seller”) and GoldenTree High Yield Master Fund, Ltd., GoldenTree High Yield Master Fund II, Ltd., DB Structured Products, Inc., Alpha U.S. Subfund II, LLC, GoldenTree High Yield Opportunities I, LP,
GoldenTree High Yield Opportunities II, L.P., GoldenTree High Yield Value Master Fund, L.P., Safety National Casualty Corporation and Delphi Financial Group (each a “Buyer” and collectively the “Buyers”).

  
 WITNESSETH 
  
 WHEREAS, each Buyer severally wishes to buy from Seller and Seller wishes to
sell to each Buyer (i) the aggregate principal amount of 15% Senior Notes due 2008 (the “Notes”) issued by JAC Holdings International, Inc. (formerly known as Rabbit Hill Holdings, Inc.) (the “Company”) under the
Purchase Agreement dated as of June 3, 1999, among the Company, Caravelle and the other purchasers thereto (as amended, the “Purchase Agreement”) and (ii) (that portion of Seller’s 12.86% interest in the Contingent Additional
Consideration (the “CAC” and together with the Notes, the “Purchased Property”) created under the Share Purchase Agreement between Johnstown America Industries, Inc. and the Company dated as of May 10, 1999 (as
amended, the “Share Purchase Agreement”), in each case in the amount set forth next to the name of each Buyer on Exhibit A hereto; 
  
 NOW THEREFORE, in consideration of the premises and the mutual agreements, covenants and provisions contained herein, the parties hereto agree as follows:

  
 1. Sale and Purchase. On the terms and
subject to the conditions contained in this agreement, Seller shall sell, convey, transfer, assign and deliver to each Buyer, and each Buyer shall purchase and acquire from Seller, on the date hereof that portion of the Purchased Property set forth
next to the name of such Buyer on Exhibit A hereto. 
  
 2. Purchase Price. Upon execution hereof, and subject to: 
  
 (a) Seller’s delivery to each Buyer of (i) physical certificates representing the Notes made out in the name of such Buyer (the
“Notes Certificates”) and (ii) the Transfer Notice and Consent executed by Seller, the Company and the Buyers transferring ownership of Seller’s interest in the CAC (the “CAC Assignment”) to each Buyer, in each
case as set forth on Exhibit A hereto and 
  
 (b) Buyer’s fulfillment of the conditions listed in Exhibit C hereto, 
  
 each Buyer shall pay to Seller in consideration for the Purchased Property cash equal to the amount set forth next to the name of such Buyer on Exhibit A hereto, payable by wire transfer of immediately
available funds to the account set forth on Exhibit A, against acknowledgment of receipt thereof by Seller. 
  

 3. Transfer of Purchased Property. Upon satisfaction of Section 2, Seller agrees
to deliver to each Buyer its Note Certificate and the CAC Assignment executed by the Company and Seller. 
  
 4. Representations and Warranties of Seller. Seller hereby represents and warrants to Buyer as follows: 
  
 (a) Seller is duly organized and validly existing under the
laws of the jurisdiction of its organization and has full power to enter into and perform its obligations under this agreement. 
  
 (b) The execution and delivery of this agreement by Seller, the performance by Seller of its covenants and agreements hereunder, and the
consummation by Seller of the transactions contemplated hereby have been duly authorized by all necessary corporate action, and this agreement constitutes a valid and legally binding obligation of Seller, enforceable against Seller in accordance
with its terms, except as such enforceability may be limited by bankruptcy, insolvency, or other laws affecting generally the enforceability of creditors’ rights and by general principles of equity. 
  
 (c) To the best of Seller’s knowledge and belief (i) no
default or event of default has occurred and is continuing under the Notes or the Purchase Agreement or the Share Purchase Agreement (with respect to the CAC) and (ii) no event or condition has occurred or exists which with notice or lapse of time,
or both, might be deemed a default or event of default under the Notes or the Purchase Agreement or the Share Purchase Agreement (with respect to the CAC). 
  
 (d) Neither the execution and delivery of this agreement, nor the consummation of the transactions contemplated hereby, violates any
agreement of Seller, or any statute, ordinance, regulation, order, judgment, or degree of any court or governmental agency to which Seller is bound or subject. 
  

(e) Seller is the sole record and beneficial owner of the Purchased Property, and, at the time of transfer of such Purchased Property
pursuant to Section 2, will be free and clear of any lien, encumbrance, option, charge, equity or restriction. Seller has the full right, power and authority to sell and transfer the Purchased Property to Buyer pursuant to Section 2. 
  
 (f) Seller acquired the Notes directly from the Company on
June 3, 1999 pursuant to the Purchase Agreement. Seller acquired its interest in the CAC on February 28, 2001, from Transportation Technologies Industries, Inc. (”TTII”), formerly known as Johnstown America Industries, Inc., which
had acquired the CAC pursuant to the Share Purchase Agreement. Seller has continuously owned the Purchased Property since the respective dates of initial acquisition by Seller described above. To the best of Seller’s knowledge and belief, (i)
Seller has delivered to Buyers true and correct copies of all of the documents (A) that Seller is a party to and which relate to the Purchased Property or (B) that were provided 

  

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to Seller contemporaneously with such party’s acquisition of the Purchased Property and that relate to the terms of the Purchased Property or the rights
or obligations of the Company or any holder of any of the Purchased Property (all such documents (the “Relevant Documents”) are listed on Exhibit B hereto), (ii) except as described in this Section 4(f) and in Exhibit B,
there are no pending amendments or waivers and (iii) there have been no amendments or waivers executed in connection with the Relevant Documents, except as previously delivered to Buyers and disclosed on Exhibit B. Buyers acknowledge that
in accordance with the terms of the Relevant Documents, certain of such documents may be amended and/or waived without the consent of Seller and, therefore, Seller may not have knowledge of all amendments and/or waivers to such Relevant Documents.

  
 (g) Seller has (i) provided all notices (or
obtained waivers in respect thereof) and (ii) obtained all consents and approvals (or obtained waivers in respect thereof), as are required under the Relevant Documents in order to fully vest in the Buyers all of Seller’s right, title and
interest in, to and under the Purchased Property. All such notices, waivers, consents and approvals required under the Relevant Documents are described in Exhibit D hereto. Upon Seller’s delivery to the Buyers of the Note Certificates
and the CAC Assignment, the Buyers shall be fully vested with all of Seller’s rights and title to and under, and interest in, the Purchased Property. 
  
 (h) To the best of Seller’s knowledge, as of the date of this agreement, (i) the accreted amount of the CAC being transferred to the
Buyers equals approximately $3,911,062 and (ii) the accreted amount of the Notes is approximately $19,466,619. 
  
 5. Representations and Warranties of Buyer. Each Buyer hereby severally represents and warrants to Seller as follows: 

 
 (a) Such Buyer is duly organized and validly existing
under the laws of the jurisdiction of its organization and has full power to enter into and perform its obligations under this agreement. 
  
 (b) The execution and delivery of this agreement by such Buyer, the performance by such Buyer of its covenants and agreements hereunder,
and the consummation by such Buyer of the transactions contemplated hereby have been duly authorized by all necessary corporate action, and this agreement constitutes a valid and legally binding obligation of such Buyer, enforceable against such
Buyer in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, or other laws affecting generally the enforceability of creditors’ rights and by general principles of equity. 
  
 (c) Neither the execution and delivery of this agreement,
nor the consummation of the transactions contemplated hereby, violates any agreement of 

  

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such Buyer, or any statute, ordinance, regulation, order, judgment, or decree of any court or governmental agency to which such Buyer is bound or subject.

  
 (d) Such Buyer has cash on hand greater than
or equal to the purchase price for the Purchased Property listed next to its name on Exhibit A hereto. 
  
 (e) Such Buyer is acquiring the Notes for its own account and is not acquiring the Notes with a view to, or for offer or sale in
connection with, any distribution thereof (within the meaning of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (collectively, the “Securities Act”)) that would be in violation of the
securities laws of the United States or any state thereof, but subject, nevertheless, to the disposition of its property being at all times within its control. 
  

(f) Such Buyer agrees to be bound by all provisions of the Relevant Documents applicable to a holder of Notes or a holder of an
interest in the CAC. 
  
 6. Waiver and
Amendment. Any term or provision of this agreement may be waived at any time by the party that is entitled to the benefits thereof, but only in a writing signed by such party, and this agreement may be amended or supplemented at any time, but
only by written agreement of Buyer and Seller. Any such waiver with respect to a failure to observe any such provision shall not operate as a waiver of any subsequent failure to observe such provision unless otherwise expressly provided in such
waiver. 
  
 7. Indemnity. Each party to
this agreement (each, a “Party”) agrees to indemnify and hold harmless: 
  
 (a) each other Party, 
  
 (b) each person or legal entity, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) any Party and 
  
 (c) the
respective officers, directors, managing directors, members, stockholders, partners, employees, representatives, trustees, fiduciaries, and agents of any person referred to in clauses (a) or (b) 
  
 (any such person or legal entities referred to in clause (a), (b) or (c), an
“Indemnified Person”) against any losses, claims, damages or liabilities, joint or several, to which such Indemnified Person may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon (i) in whole or in part, any inaccuracy in any of the representations and warranties of such Party to this agreement contained herein or (ii) in whole or in part, any
failure of such Party to perform its obligations hereunder, and will reimburse each such Indemnified Person for any legal and other expenses incurred by such Indemnified 

  

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Person in connection with investigating or defending any such action or claims as such expenses are incurred. 
  
 8. Notices. All notices, consents, requests, waivers
and other communications provided for herein and all legal process in regard hereto and thereto shall be validly given, made or served, if in writing and delivered personally or sent by express courier, or certified or registered mail, postage
prepaid as follows: 
  
 If to Seller, to

  
 Caravelle Investment Fund, L.L.C.

 425 Lexington Avenue 
 New York, NY 10017 
 Attention: David Millison 
 Facsimile: (212) 885-4520 
  
 If to a Buyer, to it 
  
 c/o GoldenTree Asset Management, LP 
 300 Park Avenue 
 25th Floor 
 New York, NY 10022 
 Attention: Tom Shandell 
 Facsimile: (212) 847-3535 
  
 or to such other person or address as any party hereto may, from time to time, designate in a written notice given in a like
manner. Notice given by mail, express courier or personally delivered shall be deemed delivered as of the date so personally delivered or mailed. 
  
 9. Assignment. This agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns, but neither this agreement nor any of the rights, interests or obligations hereunder shall be assigned by any party hereto without prior written consent of the other parties. 
  
 10. Governing Law. This agreement shall be governed
by and construed and enforced in accordance with the laws of New York, without giving effect to any provisions relating to conflicts of law. 
  
 11. Jurisdiction. Each Party irrevocably and unconditionally submits to and accepts the non-exclusive jurisdiction of any United
States federal court sitting in the Southern District of New York or any other court of appropriate jurisdiction sitting in the Southern District of New York or any other court appropriate jurisdiction sitting in the borough of Manhattan, City of
New York, for any action, suit or proceeding arising out of or based upon this agreement or any matter relating to it, and waives any objection it 

  

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may have to the laying or venue in any such court or that such court is an inconvenient forum or does not have personal jurisdiction over it. 
  
 12. Headings. The section headings contained in this
agreement are for convenience only and are not a part of this agreement. 
  
 13. Counterparts. This agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original; such counterparts together shall constitute but one agreement.

  
 [Signature Pages Follow] 
  

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 IN WITNESS WHEREOF, Seller and Buyer have caused this agreement to be duly executed as of the day and
year first above written. 
  

					
	CARAVELLE INVESTMENT FUND, L.L.C.
		
	By:	 	Trimaran Advisors, L.L.C., its Investment Manager and Attorney-in-Fact
		
	By:	 	/s/ DAVID MILLISON
	 	 	 	 	Trimaran Advisors, LLC.
	 	 	 Name:
	 	David Millison
	 	 	 Title:
	 	Managing Director

  
 Purchase Agreement

  

 S-1 

					
	GOLDENTREE HIGH YIELD MASTER FUND, LTD.
	GOLDENTREE HIGH YIELD MASTER FUND II, LTD.
	DB STRUCTURED PRODUCTS, INC.
	ALPHA U.S. SUBFUND II, LLC
	GOLDENTREE HIGH YIELD OPPORTUNITIES I, LP
	GOLDENTREE HIGH YIELD OPPORTUNITIES II, L.P.
	GOLDENTREE HIGH YIELD VALUE MASTER FUND, L.P.
	SAFETY NATIONAL CASUALTY CORPORATION
	DELPHI FINANCIAL GROUP
		
	By:	 	GoldenTree Asset Management, LP
		
	By:	 	/s/ THOMAS H. SHENDELL
	 	 	 Name:
	 	Thomas H. Shendell
	 	 	 Title:
	 	Partner

  
 Purchase Agreement

  

 S-2Waiver and First Amendment to LaSalle Credit Agreement

  
 Exhibit 10.21 
  
 WAIVER AND FIRST AMENDMENT TO LASALLE CREDIT AGREEMENT, 
 FIRST AMENDMENT TO SUBORDINATION AGREEMENT, 
 AND REAFFIRMATION OF GUARANTIES 
 AND SUBORDINATION AGREEMENT 
  
 This WAIVER AND FIRST AMENDMENT TO LASALLE CREDIT AGREEMENT, FIRST AMENDMENT
TO SUBORDINATION AGREEMENT, REAFFIRMATION OF GUARANTIES AND SUBORDINATION AGREEMENT, dated and effective as of December 17, 2004 (the “Agreement”), is executed by and among JOHNSTOWN AMERICA CORPORATION, a Delaware corporation
(“JAC”), FREIGHT CAR SERVICES, INC., a Delaware corporation (“Freight Car”), JAC OPERATIONS, INC., a Delaware corporation (“JAC Operations”), JAIX LEASING COMPANY, a Delaware corporation (“JAIX”; JAC
Operations, JAC, Freight Car and JAIX each being referred to herein as a “Borrower” and collectively referred to herein as the “Co-Borrowers”), FREIGHTCAR AMERICA, INC. (formerly JAC HOLDINGS INTERNATIONAL, INC.), a Delaware
corporation (“JAC Holdings”), JAC INTERMEDCO, INC., a Delaware corporation (“JAC Intermedco”), JAC PATENT COMPANY, a Delaware corporation (“JAC Patent”; JAC Holding, JAC Intermedco and JAC Patent each being referred to
herein as a “Guarantor” and collectively referred to herein as the “Guarantors”), those individuals and entities identified on Schedule A hereto (the “Junior Creditors”) and LASALLE BANK NATIONAL ASSOCIATION
(“LaSalle”). The Co-Borrowers and Guarantors are sometimes hereinafter referred to collectively as the “Credit Parties.” 
  
 R E C I T A L S: 
  
 A. The Credit Parties have entered into certain financing arrangements with LaSalle including that certain Credit Agreement, dated as of September 11,
2003 (as the same may be amended, supplemented, restated or otherwise modified, the “Credit Agreement”) among Co-Borrowers and LaSalle (the Credit Agreement and all documents executed in connection therewith are referred to collectively as
the “Financing Documents”). 
  
 B. In connection with
the Credit Agreement, the Junior Creditors executed and delivered to LaSalle that certain Subordination Agreement, dated as of September 11, 2003 in favor of LaSalle (as the same may be amended, supplemented, restated or otherwise modified, the
“Subordination Agreement”). 
  
 D. At the present time
the Credit Parties request, and LaSalle is agreeable to waiving violations by the Credit Parties of certain financial covenants and making certain amendments to the Financing Documents, pursuant and subject to the terms and conditions hereinafter
set forth. 
  

 NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Credit Parties, the Junior Creditors and LaSalle hereby agree as follows: 
  
 A G R E E M E N T S: 
  
 1 RECITALS. The foregoing Recitals are hereby made a part of this Agreement. 
  
 2 DEFINITIONS. Capitalized words and phrases used herein without definition shall have the respective meanings
ascribed to such words and phrases in the Financing Documents. 
  
 3 WAIVER OF DEFAULTED COVENANTS. The Credit Parties have informed LaSalle that (i) EBITDA for the Covenant Computation Periods ending June 30, 2004 and September 30, 2004 was less than the $8,500,000 required under the Financing
Documents; (ii) the Interest Coverage Ratio for the Covenant Computation Periods ending March 31, 2004, June 30, 2004, and September 30, 2004 was less than the allowed 3.75 to 1.00 set forth in the Financing Documents; (iii) the Fixed Charge
Coverage Ratio for the Covenant Computation Periods ending March 31, 2004, June 30, 2004, and September 30, 2004 was less than the allowed 1.15 to 1.00 set forth in the Financing Documents; and (iv) the Leverage Ratio for the Covenant Computation
Periods ending September 30, 2004 was more than as allowed as set forth in the Financing Documents (collectively, the “Defaulted Covenants”). The Credit Parties agree and acknowledge that, as a result of the occurrence of such Defaulted
Covenants, an Event of Default has occurred and is continuing under the applicable Financing Documents. The Credit Parties have, therefore, requested that LaSalle waive compliance by the Credit Parties with the Defaulted Covenants for the Covenant
Computation Periods ending March 31, 2004, June 30, 2004, and September 30, 2004, as well as the resulting Events of Default. 
  
 In addition, the Credit Parties have informed LaSalle that (i) JAC Holdings intends to increase the capitalization of JAC Holdings by means of selling
shares of its common stock, following the reclassification of JAC Holdings’ Class A voting common stock and Class B nonvoting common stock, through an underwritten initial public offering (the “Offering”) and to file a Registration
Statement on Form S-1 with the Securities and Exchange Commission in connection with the Offering; and (ii) the Credit Parties have forecasted that the Credit Parties do not anticipate the ability to achieve compliance with the minimum EBITDA, Fixed
Charge Coverage, Interest Rate Coverage Ratio or the Leverage Ratio for the Covenant Calculation Period ending December 31, 2004, as originally set forth in the Financing Documents or as amended by this Agreement (the “Additional Defaulted
Covenants”). The Credit Parties have, therefore, requested that LaSalle waive compliance by the Credit Parties with any Change of Control which is triggered as a result of the Offering and with the Additional Defaulted Covenants for the
Covenant Computation Period ending December 31, 2004, as well as any resulting Events of Default. 
  
 LaSalle hereby waives: (a) compliance by the Credit Parties with (1) the Defaulted Covenants and the Additional Defaulted Covenants for the Covenant
Computation Periods ending March 31, 2004, June 30, 2004, September 30, 2004 and December 31, 2004 and (2) the Change of Control provisions with respect to the Offering; (b) the Events of Default occurring by reason of the Credit Parties’
failure to comply with the Defaulted Covenants and the Additional Defaulted Covenants, solely for the Covenant Computation Periods ending March 31, 2004, June 30, 2004, September 30, 2004 and December 31, 2004; (c) any Events of Default occurring by
reason of the Credit Parties’ failure to comply with the Change of Control provisions, solely with respect to the Offering; and (d) LaSalle’s remedies under the Financing Documents with respect 

  

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to the Defaulted Covenants and the Additional Defaulted Covenant and the subsequent Events of Default, including any Events of Default with respect to any
failure to comply with the Change of Control provisions due to the Offering. This waiver shall be narrowly construed and shall neither extend to any other violations under, or default of, the Financing Documents, nor shall this waiver prejudice any
rights or remedies which LaSalle may have or be entitled to with respect to such future violations or defaults. 
  
 4. AMENDMENTS TO THE FINANCING DOCUMENTS. 
  
 4.1 Fixed Charge Coverage Ratio. 
  
 (a) The definition of “Fixed Charge Coverage Ratio” in the Credit Agreement is hereby amended in its entirety to read as
follows: 
  
 “Fixed Charge Coverage Ratio” of the
Consolidated Group means, with respect to any Covenant Computation Date, the ratio (a) of the Consolidated Group’s EBITDA plus expenses and/or settlement costs, without duplication, of up to $9,200,000 in the aggregate related to the
Pending Employment Litigation plus non-cash expenses relating to the Borrower’s employee stock option plan plus the TTX Losses and minus the sum of the Consolidated Group’s (i) Capital Expenditures (net of Capital
Expenditures made using the Consolidated Group’s cash not financed by the Bank or another lender) and (ii) Cash Taxes, to (b) the sum of the Consolidated Group’s (i) net Interest Expense, (ii) Holding Company Note Payments to the extent
such payments exceed the Minimum Account Balance under the Securities Account Pledge Agreement and only to the extent such Holding Company Note Payments are permitted under this Agreement, the GE Capital Loan Agreement, the Holding Company
Subordination Agreement, and the subordination granted GE Capital in connection with the GE Capital Loan Agreement, (iii) GE Capital Loan Agreement Payments, (iv) Capital Lease Payments, and (v) debt service on any Debt permitted under Section 6.2.
The one-time payment of $9,000,000 to be made from proceeds of the GE Capital Loan Agreement concurrently with the execution of such agreement shall not be included in the calculation of Fixed Charge Coverage Ratio. 
  
 4.2 Interest Coverage Ratio. 
  
 (a) The definition of “Interest Coverage Ratio” in
the Credit Agreement is hereby amended in its entirety to read as follows: 
  
 “Interest Coverage Ratio” of the Consolidated Group means, with respect to any Covenant Computation Date, the ratio of (a) the Consolidated Group’s EBITDA plus expenses and/or settlement costs,
without duplication, of up to $9,200,000 in the aggregate related to the Pending Employment Litigation plus non-cash expenses relating to the Borrower’s employee stock option plan plus the TTX Losses minus Capital
Expenditures (net of Capital Expenditures made using the Consolidated 

  

 3 

 
Group’s cash not financed by the Bank or another lender) minus Cash Taxes, to (b) Interest Expense. 
  
 4.3 Leverage Ratio. 
  
 (a) The definition of “Leverage Ratio” in the
Credit Agreement is hereby amended in its entirety to read as follows: 
  
 “Leverage Ratio” of the Consolidated Group means, with respect to any Covenant Computation Date, the ratio of (a) the Consolidated Group’s Funded Debt, to (b) the Consolidated Group’s EBITDA plus expenses and/or
settlement costs, without duplication, of up to $9,200,000 in the aggregate related to the Pending Employment Litigation, plus non-cash expenses relating to the Borrower’s employee stock option plan plus the TTX Losses;
provided, however, that for purposes of determining Status, (i) no expenses and/or settlement costs related to the Pending Employment Litigation, (ii) no non-cash expenses relating to the Borrower’s employee stock option plan, and
(ii) no TTX Losses shall be added to the Consolidated Group’s EBITDA. 
  
 4.4 Payment Conditions. The definition of “Payment Conditions” in Section 1.1 of the Credit Agreement is hereby amended in its entirety to read as follows: 
  
 “Payment Conditions” shall mean (a) no Default or Event of Default
shall be in existence or shall occur as a result of the proposed payment on the Holding Company Notes and (b) the following tests are met: (i) the Co-Borrowers are in compliance with the minimum Fixed Charge Coverage Ratio requirements set forth in
Section 5.11 for the two Covenant Computation Dates immediately preceding the date of such proposed payment of the Holding Company Notes; (ii) the Co-Borrowers are in compliance with the minimum EBITDA requirements set forth in Section 5.9 for the
four quarters immediately preceding the date of the proposed payment of the Holding Company Notes, with compliance under Section 5.9 being re-determined as if the TTX Losses were not added to EBITDA; and (iii) availability under the Credit Agreement
shall equal or exceed $15,000,000 on the date of (and after giving effect to) the proposed payment of the Holding Company Notes. The determination of compliance with the foregoing shall be made by the Bank in its good faith judgment based upon
information furnished by the Co-Borrowers and in form and substance acceptable to the Bank and such other information as the Bank shall request. 
  
 4.5 TTX. The following new defined terms are hereby added to the definitions in the Financing Documents in their appropriate
alphabetical position to read as follows: 
  
 “TTX”
means TTX Company, located at 101 N. Wacker Drive, Chicago, Illinois 60606. 
  

 4 

 “TTX Losses” means the losses in 2004 on order 1400-964 to manufacture boxcars for TTX.

  
 4.6 Terms Defined in UCC. The
following new Section 1.2 of the Credit Agreement hereby added to the Credit Agreement immediately following Section 1.1 of the Credit Agreement: 
  
 Section 1.2 Other Terms Defined in UCC. All other capitalized words and phrases used herein and not otherwise specifically defined
shall have the respective meanings assigned to such terms in the UCC in effect from time to time, including, without limitation, as amended by Revised Article 9 as enacted in the State of Illinois, to the extent the same are used or defined therein.

  
 4.7 Minimum EBITDA. 
  
 (a) Section 5.9 of the Credit Agreement is hereby amended in
its entirety to read as follows: 
  
 Section 5.9
Minimum EBITDA. As of each Covenant Computation Date, the Co-Borrowers will achieve minimum EBITDA (plus expenses and/or settlement costs, without duplication, of up to $9,200,000 in the aggregate related to the Pending Employment
Litigation plus non-cash expenses relating to the Borrower’s employee stock option plan plus the TTX Losses) for the Consolidated Group of not less than $8,500,000. 
  
 4.8 Application of Offering Proceeds. Article V of the Credit Agreemet is amended by inserting the
following Section 5.14: 
  
 Section 5.14
Application of Offering Proceeds. The Credit Parties covenant and agree that the net proceeds of the Offering (as defined in the Waiver and First Amendment to Lasalle Credit Agreement, First Amendment to Subordination Agreement, Reaffirmation
of Guaranties and Subordination Agreement, dated and effective as of December 17, 2004) shall be used to, among other things, redeem all of the outstanding indebtedness of the Credit Parties to (i) General Electric Capital Corporation, (ii) LaSalle,
and (iii) the Junior Creditors on the closing date of the Offering. 
  
 5 AMENDMENT TO SUBORDINATION AGREEMENT. 
  
 5.1 Payment Conditions. The definition of “Payment Conditions” in Section 1 of the Subordination Agreement is hereby amended in its entirety to read as follows: 
  
 “Payment Conditions” shall mean (a) no Default or Event of
Default shall be in existence under the Credit Agreement or shall occur as a result of the proposed payment and (b) the following tests are met: (i) the Borrower is in compliance with the minimum Fixed Charge Coverage Ratio requirements set forth in
Section 5.11 of the Credit Agreement for the two Covenant Computation Dates (as defined in the Credit Agreement) immediately preceding the date of such proposed 

  

 5 

 
payment of the Subordinated Notes with compliance under Section 5.11 being re-determined as if the TTX Losses were not added to EBITDA; (ii) the Borrower is
in compliance with the minimum EBITDA requirements set forth in Section 5.9 of the Credit Agreement for the four quarters immediately preceding the date of the proposed payment of the Subordinated Notes, with compliance under Section 5.9 being
re-determined as if the TTX Losses were not added to EBITDA; and (iii) availability under the Credit Agreement shall equal or exceed $15,000,000 on the date of (and after giving effect to) the proposed payment of the Subordinated Notes. The
determination of compliance with the foregoing shall be made by Lender in its good faith judgment based upon information furnished by the Borrower and in form and substance acceptable to Lender and such other information as Lender shall request.

  
 6 REAFFIRMATION OF GUARANTIES. Each of the Guarantors
hereby expressly (a) consents to the execution of this Agreement; (b) acknowledges that the “Indebtedness” (as defined in each of the Guaranties) includes all of the obligations and liabilities owing from the Credit Parties to LaSalle,
including, but not limited to, the obligations and liabilities of the Credit Parties to LaSalle under and pursuant to the Financing Documents, as the case may be, as amended from time to time, and as evidenced by the notes delivered in connection
therewith, as the same may be modified, extended and/or replaced from time to time; (c) reaffirms, assumes and binds itself in all respects to all of the obligations, liabilities, duties, covenants, terms and conditions that are contained in its
respective Guaranty; (d) agrees that all such obligations and liabilities under its respective Guaranty shall continue in full force and that the execution and delivery of this Agreement to, and its acceptance by, LaSalle shall not in any manner
whatsoever (i) impair or affect the liability of any Guarantor to LaSalle under its respective Guaranty, (ii) prejudice, waive, or be construed to impair, affect, prejudice or waive the rights and abilities of LaSalle at law, in equity or by
statute, against any Guarantor pursuant to its respective Guaranty, and/or (iii) release or discharge, nor be construed to release or discharge, any of the obligations and liabilities owing to LaSalle by any Guarantor under its respective Guaranty;
and (e) represents and warrants that each of the representations and warranties made by such Guarantor in any of the documents executed in connection with the Loans remain true and correct as of the date hereof. 
  
 7 REAFFIRMATION OF SUBORDINATION AGREEMENT. Each of the Junior
Creditors hereby expressly (a) consents to the execution of this Agreement, (b) acknowledges that the “Senior Indebtedness” or “Senior Loans” (as defined in the Subordination Agreement, as the case may be) include all of the
obligations and liabilities owing from the Credit Parties to LaSalle, including, but not limited to, the obligations and liabilities of the Credit Parties to LaSalle under and pursuant to the Credit Agreement, as the same may be amended from time to
time, and as evidenced by the notes delivered in connection therewith, as modified, extended and/or replaced from time to time; (c) acknowledges that the “Subordinated Indebtedness” or “Senior Loans” (as defined in the
Subordination Agreement, as the case may be) shall remain subordinate to the “Senior Indebtedness” or “Senior Loans” (as defined in the Subordination Agreement, as the case may be) (d) reaffirms, assumes and binds himself/itself
in all respects to all of the obligations, liabilities, duties, covenants, terms and conditions that are contained in the Subordination Agreement, (e) agrees that such all obligations and liabilities under the Subordination Agreement shall continue
in full force and effect and shall not be discharged, limited, impaired or affected in any manner whatsoever, and (f) represents and warrants that each 

  

 6 

 
of the representations and warranties made by such Junior Creditor in any of the documents executed in connection with the Loans remain true and correct as
of the date hereof. 
  
 8 REPRESENTATIONS, WARRANTIES AND
COVENANTS. To induce Junior Creditors and LaSalle to enter into this Agreement, the Credit Parties hereby certify, represent, warrant and covenant that: 
  
 8.1 Organization. The Credit Parties are corporations duly organized, existing and in good standing under the laws of the State of
Delaware, each with full and adequate corporate power to carry on and conduct its business as presently conducted. The Credit Parties are duly licensed or qualified in all foreign jurisdictions wherein the nature of their activities require such
qualification or licensing. The articles of incorporation and bylaws, resolutions and incumbency certificate of the Credit Parties have not been changed or amended since the most recent date that certified copies thereof were delivered to LaSalle
(other than JAC Holdings). The exact legal name of each Borrower is as set forth in the preamble hereto and during the last five (5) years no Borrower has conducted business under any other name or trade name. Other than JAC Holdings, no Credit
Parties will change their name, their organizational identification numbers, if they have one, their type of organization, their jurisdiction of organization or other legal structure. 
  
 8.2 Authorization. The Credit Parties are duly authorized to execute and deliver this Agreement and
are and will continue to be duly authorized to borrow monies under the Financing Documents, as amended hereby, and to perform its obligations under the Financing Documents, as amended hereby. 
  
 8.3 No Conflicts. The execution and delivery of this
Agreement and the performance by the Credit Parties of their obligations under the Financing Documents to which such Credit Parties are a party, as amended hereby, do not and will not conflict with any provision of law or of the articles of
incorporation or bylaws of the Credit Parties or of any agreement binding upon the Credit Parties. 
  
 8.4 Validity and Binding Effect. The Financing Documents, as amended hereby, are a legal, valid and binding obligation of the
Credit Parties a party thereto, enforceable against the Credit Parties a party thereto in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency or other similar laws of general application affecting the
enforcement of creditors’ rights or by general principles of equity limiting the availability of equitable remedies. 
  
 8.5 Compliance with Financing Documents. The representation and warranties set forth in the applicable Financing Documents, as
amended hereby, are true and correct with the same effect as if such representations and warranties had been made on the date hereof, with the exception that all references to the financial statements shall mean the financial statements most
recently delivered to Junior Creditors or LaSalle, as applicable, and except for such changes as are specifically permitted under the applicable Financing Documents. In addition, except for the Defaulted Covenants, the Credit Parties have complied
with and are in compliance with all of the covenants set forth in the Financing Documents, as amended hereby. 
  

 7 

 8.6 No Event of Default. As of the date hereof and except for the Event of Default
occurring as a result of the Defaulted Covenants, no Event of Default under the Financing Documents, as amended hereby, or event or condition which, with the giving of notice or the passage of time, or both, would constitute an Event of Default, has
occurred or is continuing. 
  
 8.7 No
Subordinated Debt Default. As of the date hereof, no default under any of the documents evidencing or securing any of junior debt under any of the Subordination Agreement, or event or condition which, with the giving of notice or the passage of
time, or both, would constitute a default under any of the documents evidencing or securing any of such junior debt, has occurred or is continuing. 
  
 9 CONDITIONS PRECEDENT. This Agreement shall become effective as of the date above first written after receipt by LaSalle of the following:

  
 9.1 Agreement. This Agreement duly
executed by the parties hereto. 
  
 9.2
Resolutions. A certified copy of resolutions of the Board of Directors and/or shareholders of each of the Co-Borrowers authorizing the execution, delivery and performance of this Agreement and the related loan documents. 
  
 9.3 Amendment Fee. The Co-Borrowers agree to pay to
LaSalle an amendment fee in the amount of Five Thousand and 00/100 Dollars ($5,000.00). 
  
 9.4 Other Amendments or Waivers. A waiver of defaults under the GE Capital Loan Agreement and an amendment to and waiver of
defaults under the Purchase Agreement dated as of June 3, 1999 (as amended from time to time). 
  
 9.5 Other Documents. Such other documents, certificates and/or opinions of counsel as LaSalle may request. 
  
 10 GENERAL. 
  
 10.1 Governing Law; Severability. This Agreement
shall be construed in accordance with and governed by the laws of Illinois. Wherever possible each provision of the Financing Documents and this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if
any provision of the Financing Documents and this Agreement shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of the Financing Documents and this Agreement. 
  
 10.2 Successors and Assigns. This Agreement shall be binding upon the Credit Parties, the Junior Creditors and LaSalle and their respective successors and assigns, and shall inure to the benefit of the Credit
Parties, the Junior Creditors and LaSalle and the successors and assigns of LaSalle. 
  
 10.3 Continuing Force and Effect of Financing Documents and Subordination Agreement. Except as specifically modified or amended by
the terms of this Agreement, all other terms and provisions of the Financing Documents are incorporated by reference herein, and 

  

 8 

 
in all respects, shall continue in full force and effect. Each of the Credit Parties, and, as applicable, the Junior Creditors, by execution of this
Agreement, hereby reaffirms, assumes and binds themselves to all of the obligations, duties, rights, covenants, terms and conditions that are contained in the Financing Documents and all other documents executed in connection therewith, including
all guaranties, and the other Subordination Agreement, as applicable. 
  
 10.4 Expenses. The Credit Parties shall pay all costs and expenses in connection with the preparation of this Agreement and other related loan documents, including, without limitation, reasonable
attorneys’ fees and time charges of attorneys who may be employees of LaSalle or any affiliate or parent of LaSalle. The Credit Parties shall pay any and all stamp and other taxes, UCC search fees, filing fees and other costs and expenses in
connection with the execution and delivery of this Agreement and the other instruments and documents to be delivered hereunder, and agree to save LaSalle harmless from and against any and all liabilities with respect to or resulting from any delay
in paying or omission to pay such costs and expenses. 
  
 10.5 Release. The Credit Parties by signing this Agreement, each hereby absolutely and unconditionally releases and forever discharges LaSalle, and any and all participants, parent corporations, subsidiary corporations, affiliated
corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind,
nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which any of the Credit Parties has had, now has or has made claim to have against any such person for or by reason of
any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Agreement, whether such claims, demands and causes of action are matured or unmatured or known or unknown. 
  
 10.6 Counterparts. This Agreement may be executed in
any number of counterparts, all of which shall constitute one and the same agreement. 
  
 [Signature Page Follows] 
  

 9 

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

  

									
	LASALLE BANK NATIONAL ASSOCIATION	 	 	 	JOHNSTOWN AMERICA CORPORATION
					
	 By
	 	 /s/ Robert W. Hart
	 	 	 	 By
	 	 /s/ Kevin P. Bagby

	 	 	 Name: Robert W. Hart
	 	 	 	 	 	 Name: Kevin Bagby

	 	 	 Title: First Vice President
	 	 	 	 	 	 Title:

			
	JAC OPERATIONS, INC.	 	 	 	JAC INTERMEDCO, INC.
					
	 By
	 	 /s/ Kevin P. Bagby
	 	 	 	 By
	 	 /s/ Kevin P. Bagby

	 	 	 Name: Kevin Bagby
	 	 	 	 	 	 Name: Kevin Bagby

	 	 	 Title:
	 	 	 	 	 	 Title:

									
			
	JAC PATENT COMPANY	 	 	 	FREIGHTCAR AMERICA, INC., formerly JAC Holdings International, Inc.
					
	 By
	 	 /s/ Kevin P. Bagby
	 	 	 	 By:
	 	 /s/ Kevin P. Bagby

	 	 	 Name: Kevin Bagby
	 	 	 	 Name:
	 	 
	 	 	 Title:
	 	 	 	 Title:
	 	 
			
	JAIX LEASING COMPANY	 	 	 	FREIGHT CAR SERVICES, INC.
					
	 By
	 	 /s/ Kevin P. Bagby
	 	 	 	 By
	 	 /s/ Kevin P. Bagby

	 	 	 Name: Kevin Bagby
	 	 	 	 	 	 Name: Kevin Bagby

	 	 	 Title:
	 	 	 	 	 	 Title:

  

									
	GOLDENTREE HIGH YIELD OPPORTUNITIES I, LP	 	 	 	GOLDENTREE HIGH YIELD OPPORTUNITIES II, L.P.
	By: GoldenTree Asset Management, LP	 	 	 	By: GoldenTree Asset Management, LP
					
	 By
	 	 /s/ Thomas H. Shandell
	 	 	 	 By
	 	 /s/ Thomas H. Shandell

	 	 	 Name: Thomas H. Shandell
	 	 	 	 	 	 Name: Thomas H. Shandell

	 	 	 Title: Partner
	 	 	 	 	 	 Title: Partner

			
	GOLDENTREE HIGH YIELD MASTER FUND, LTD.	 	 	 	GOLDENTREE HIGH YIELD MASTER FUND II, LTD.
	By: GoldenTree Asset Management, LP	 	 	 	By: GoldenTree Asset Management, LP
					
	 By
	 	 /s/ Thomas H. Shandell
	 	 	 	 By
	 	 /s/ Thomas H. Shandell

	 	 	 Name: Thomas H. Shandell
	 	 	 	 	 	 Name: Thomas H. Shandell

	 	 	 Title: Partner
	 	 	 	 	 	 Title: Partner

			
	GOLDENTREE HIGH YIELD VALUE MASTER FUND, L.P.	 	 	 	SAFETY NATIONAL CASUALTY CORPORATION
	By: GoldenTree Asset Management, LP	 	 	 	By: GoldenTree Asset Management, LP
					
	 By
	 	 /s/ Thomas H. Shandell
	 	 	 	 By
	 	 /s/ Thomas H. Shandell

	 	 	 Name: Thomas H. Shandell
	 	 	 	 	 	 Name: Thomas H. Shandell

	 	 	 Title: Partner
	 	 	 	 	 	 Title: Partner

			
	 	 	 	 	ALPHA U.S. SUBFUND II, LLC
	 	 	 	 	By: GoldenTree Asset Management, LP
					
	 	 	 	 	 	 	 By
	 	 /s/ Thomas H. Shandell

	 	 	 	 	 	 	 	 	 Name: Thomas H. Shandell

	 	 	 	 	 	 	 	 	 Title: Partner

									
			
	DELPHI FINANCIAL GROUP	 	 	 	TRANSPORTATION INVESTMENT PARTNERS, L.L.C.
	By: GoldenTree Asset Management, LP	 	 	 	 
					
	 By
	 	 /s/ Thomas H. Shandell
	 	 	 	 By:
	 	 /s/ Steven A. Flyer

	 	 	 Name: Thomas H. Shandell
	 	 	 	 Name:
	 	 Steven A. Flyer

	 	 	 Title: Partner
	 	 	 	 Title:
	 	 Managing Director

									
			
	CARAVELLE INVESTMENT FUND, L.L.C.	 	 	 	JOHN HANCOCK LIFE INSURANCE COMPANY
			
	By: Trimaran Advisors, L.L.C., its Investment Manager and Attorney-in-Fact	 	 	 	 
					
	 By:
	 	 /s/ Steven A. Flyer
	 	 	 	 By:
	 	 /s/ S. Mark Ray

	 Name:
	 	 Steven A. Flyer
	 	 	 	 Name:
	 	 S. Mark Ray

	 Title:
	 	 Managing Director
	 	 	 	 Title:
	 	 Senior Managing Director

  

 11 

					
			
	 /s/ James Cirar
	 	 	 	 /s/ Camillo M. Santomero

	 JAMES CIRAR
	 	 	 	 CAMILLO M. SANTOMERO

  

			
	 HANCOCK MEZZANINE PARTNERS, L.P.

	
	 By: John Hancock Life Insurance Company, its Investment Manager

		
	 By
	 	 /s/ Mark Ray

	 Name: S. Mark Ray

	 Title: Senior Managing Director

  

 12 

 Schedule A 
  
 Junior Creditors 
  
 CARAVELLE INVESTMENT FUND L.L.C., 
 425 Lexington Avenue 
 New York, New York 10017 
  
 HANCOCK MEZZANINE PARTNERS, L.P., 
 200 Claredon Street 
 Boston, Massachusetts 02117 
  
 JOHN HANCOCK LIFE
INSURANCE COMPANY 
 200 Claredon Street 
 Boston, Massachusetts
02117 
  
 CAMILLO M. SANTOMERO III 
 Rabbit Hill 
 Sarles Street 
 Mount Kisco, New York 10549 
  
 JAMES D. CIRAR 
 980 North Michigan Avenue 
 Suite 1000 
 Chicago, Illinois 60611 
  

TRANSPORTATION INVESTMENT PARTNERS, L.L.C 
 425 Lexington Avenue

 New York, New York 10017 
  
 GOLDENTREE HIGH YIELD MASTER FUND, LTD. 
 c/o GoldenTree Asset Management,
L.P. 
 300 Park Avenue 
 25th Floor 
 New York, NY 10022 
 Attention: Tom Shandell 
 Facsimile: (212) 847-3535 
  
 GOLDENTREE HIGH YIELD OPPORTUNITIES II, L.P. 
 c/o GoldenTree Asset Management, L.P. 
 300 Park Avenue 
 25th Floor 
 New York, NY 10022 
 Attention: Tom Shandell 
 Facsimile: (212) 847-3535 
  

 13 

 GOLDENTREE HIGH YIELD MASTER FUND II, LTD. 
 c/o GoldenTree Asset Management, L.P. 
 300 Park Avenue 
 25th Floor 
 New York, NY 10022 
 Attention: Tom Shandell 
 Facsimile: (212) 847-3535 
  
 GOLDENTREE HIGH
YIELD VALUE MASTER FUND, L.P. 
 c/o GoldenTree Asset Management, L.P. 
 300 Park Avenue 
 25th Floor 
 New York, NY 10022 
 Attention: Tom
Shandell 
 Facsimile: (212) 847-3535 
  
 DB STRUCTURED PRODUCTS, INC. 
 c/o GoldenTree Asset Management, L.P.

 300 Park Avenue 
 25th Floor 
 New York, NY 10022 
 Attention: Tom Shandell 
 Facsimile: (212) 847-3535 
  
 SAFETY NATIONAL CASUALTY CORPORATION 
 c/o GoldenTree Asset Management, L.P. 
 300 Park Avenue 
 25th Floor 
 New York, NY 10022 
 Attention: Tom Shandell 
 Facsimile: (212) 847-3535 
  
 ALPHA U.S. SUBFUND II, LLC 
 c/o GoldenTree Asset Management, L.P. 
 300 Park Avenue 
 25th Floor 
 New York, NY 10022 
 Attention: Tom Shandell 
 Facsimile: (212) 847-3535 
  
 DELPHI FINANCIAL GROUP 
 c/o GoldenTree Asset Management, L.P. 
 300 Park Avenue 
 25th Floor 
 New York, NY 10022 
 Attention: Tom Shandell 
 Facsimile: (212) 847-3535 
  

 14 

 GOLDENTREE HIGH YIELD OPPORTUNITIES I, LP 
 c/o GoldenTree Asset Management, L.P. 
 300 Park Avenue 
 25th Floor 
 New York, NY 10022 
 Attention: Tom Shandell 
 Facsimile: (212) 847-3535 
  

 15

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