Document:

EX-10.103

Exhibit 10.103

CHANGE IN CONTROL SEVERANCE AGREEMENT

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (“Agreement”) is made and entered into as of
the 26th day of May 2005 by and between RAILAMERICA, INC., a Delaware corporation (the
“Company”), and ROBERT J. RABIN (the “Officer”).

RECITALS

The Board of Directors of the Company (the “Board”), has determined that it is in the best
interests of the Company and its shareholders to assure that the Company will have the continued
dedication of the Officer, notwithstanding the possibility, threat, or occurrence of a Change of
Control (as defined below) of the Company.

The Board believes it is imperative to diminish the inevitable distraction of the Officer by
virtue of the personal uncertainties and risks created by a pending or threatened Change of
Control, to encourage the Officer’s full attention and dedication to the Company currently and in
the event of any threatened or pending Change of Control, and to provide the Officer with
compensation arrangements upon a Change of Control which provide the Officer with individual
financial security and which are competitive with those of other corporations and, in order to
accomplish these objectives, the Board has caused the Company to enter into this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, IT IS
HEREBY AGREED AS FOLLOWS:

1. Certain Definitions

(a) The “Effective Date” shall be the first date during the “Change of Control Period” (as
defined in Section 1(b)) on which a Change of Control occurs. Anything in this Agreement to the
contrary notwithstanding, if the Officer’s employment with the Company is terminated prior to the
date on which a Change of Control occurs, and it is reasonably demonstrated that such termination
(1) was at the request of a third party who has taken steps reasonably calculated to effect a
Change of Control, or (ii) otherwise arose in connection with or anticipation of a Change of
Control, then for all purposes of this Agreement the “Effective Date” shall mean the date
immediately prior to the date of such termination; provided that if the Officer’s employment with
the Company is terminated within the six months immediately preceding the date on which a Change in
Control occurs, then the termination of employment shall be presumed to have arisen in anticipation
of a Change of Control unless shown to the contrary by clear and convincing evidence.

(b) The “Change of Control Period” is the period commencing on the date hereof and ending on
the earlier to occur of (i) the third anniversary of such date, and (ii) the first day of the month
next following the Officer’s normal retirement date at age 65 (“Normal Retirement Date”);
provided, however, that commencing on the date one year after the date hereof; and
on each annual anniversary of such date (such date and each annual anniversary thereof is
hereinafter referred to as the “Renewal Date”), the Change of Control Period shall be automatically
extended so as to terminate on the earlier of (x) three years from such Renewal Date, or (y) the
first day of the month coinciding with or next following the Officer’s Normal Retirement Date,
unless at least sixty (60) days prior to the Renewal Date the Company shall give written notice to
the Officer that the Change of Control Period shall not be so extended.

2. Change of Control

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

(i) The acquisition (other than from the Company), by any person, entity or “group”, within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange
Act”), of beneficial ownership (within the meaning of Rule 1 3d-3 promulgated under the Exchange
Act) of 33 1/3% or more of either the then outstanding shares of common stock or the combined
voting power of the Company’s then outstanding voting securities entitled to vote generally in the
election of directors (hereafter referred to as the ownership of a “Controlling Interest”),
excluding, for this purpose, any acquisitions by (1) the Company or any of its subsidiaries, (2)
any person, entity or “group” that as of the date hereof owns beneficial ownership (within the
meaning of Rule 1 3d-3 promulgated under the Exchange Act) of a Controlling Interest; or (3) any
employee benefit plan of the Company or any of its subsidiaries.

(ii) The nine (9) individuals who, as of the date hereof; constitute the Board of Directors
(as of the date hereof the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director subsequent to the date hereof
whose election, or nomination for election by the Company’s stockholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the directors of the Company) shall be, for
purposes of this Agreement, considered as though such person were a member of the Incumbent Board;
or

(iii) Approval by the stockholders of the Company of (1) a reorganization, merger or
consolidation with respect to which persons who were the stockholders of the Company immediately
prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than
66 2/3% of the combined voting power entitled to vote generally in the election of directors of the
reorganized, merged or consolidated company’s (or entity’s) then outstanding voting securities in
substantially the same proportions as their ownership immediately prior to such reorganization,
merger, or consolidation, (2) a liquidation or dissolution of the Company, or (3) the sale of all
or substantially all of the assets of the Company, unless the approved reorganization, merger,
consolidation, liquidation, dissolution or sale is subsequently abandoned.

3. Employment Period

If and only in the event that the Officer is an officer, elected or otherwise designated by
the Board, of the Company or one of its subsidiaries as of the Effective Date, the Company hereby
agrees to continue the Officer in its employ, and the Officer hereby agrees to remain in the employ
of the Company, for the period commencing on the Effective Date and ending on the earlier to occur
of (i) the third anniversary of such date, or (ii) the first day of the month coinciding with or
next following the Officer’s Normal Retirement Date (the “Employment Period”). In the event that
the Officer is not an officer, elected or otherwise designated by the Board, of the Company or one
of its subsidiaries as of the Effective Date, then this Agreement shall immediately terminate and
no longer have any force or effect. Notwithstanding anything to the contrary herein, in the event
that the Officer ceases to be an officer, elected or otherwise designated by the Board, within the
six (6) months immediately preceding the Effective Date, then the Officer shall be deemed to be an
officer, elected or otherwise designated by the Board, of the Company or one of its subsidiaries as
of the Effective Date unless the Company demonstrates by clear and convincing evidence that such
cessation was not in connection with or in anticipation of a Change in Control.

4. Terms of Employment

(a) Position and Duties.

(i) During the Employment Period, (1) the Officer’s position (including status, offices,
titles and reporting requirements), authority, duties and responsibilities shall be at least
commensurate in all material respects with the most significant of those held, exercised and
assigned at any time during the 180-day period immediately preceding the Effective Date, and (2)
the Officer’s services shall be performed at the location where the Officer was employed
immediately preceding the Effective Date or any office or location less than 50 miles from such
location.

(ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Officer is entitled, the Officer agrees to devote reasonable attention and time during
normal business hours to the business and affairs of the Company and, to the extent necessary to
discharge the responsibilities assigned to the Officer hereunder, to use the Officer’s reasonable
best efforts to perform faithfully and efficiently such responsibilities. During the Employment
Period it shall not be a violation of this Agreement for the Officer to (1) serve on corporate,
civic or charitable boards or committees, (2) deliver lectures, fulfill speaking engagements or
teach at educational institutions, and (3) manage personal investments, so long as such activities
do not significantly interfere with the performance of the Officer’s responsibilities as an
employee of the Company in accordance with this Agreement. It is expressly understood and agreed
that to the extent that any such activities have been conducted by the Officer prior to the
Effective Date, the continued conduct of such activities (or the conduct of activities similar in
nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to
interfere with the performance of the Officer’s responsibilities to the Company.

(b) Compensation.

(i) Base Salary. During the Employment Period, the Officer shall receive a base salary
(“Base Salary”) at a monthly rate at least equal to the highest monthly base salary paid or payable
to the Officer by the Company during the twelve-month period immediately preceding the month in
which the Effective Date occurs. During the Employment Period, the Base Salary shall be reviewed at
least annually and shall be increased at any time and from time to time as shall be substantially
consistent with increases in base salary awarded in the ordinary course of business to other key
Officers of the Company and its subsidiaries. Any increase in Base Salary shall not serve to limit
or reduce any other obligation to the Officer under this Agreement. Base Salary shall not be
reduced after any such increase.

(ii) Annual Bonus. In addition to Base Salary, the Officer shall be awarded, for each
fiscal year during the Employment Period, an annual bonus (an “Annual Bonus”) (either pursuant to
any then-established incentive compensation plan(s) of the Company or otherwise) in cash at least
equal to the greater of (x) the average of the bonuses payable to the Officer from the Company and
its subsidiaries in the three fiscal years immediately preceding the fiscal year in which the
Effective Date occurs, or (y) the bonus that would be payable for the fiscal year if such bonus was
determined based upon the same formula, terms, and conditions as was used to determine the
Officer’s bonus for the fiscal year immediately preceding the fiscal year in which the Effective
Date occurs. Nothing in this Agreement shall require the payment of an Annual Bonus prior to the
Effective Date.

(iii) Incentive, Savings and Retirement Plans. In addition to Base Salary and Annual
Bonus payable as hereinabove provided, the Officer shall be entitled to participate during the
Employment Period in all incentive, savings and retirement plans, practices, policies and programs
applicable to similar key Officers of the Company (including its successors or assigns) and its
affiliates, in each case comparable to those in effect on the Effective Date or as subsequently
amended. Such plans, practices, policies and programs, in the aggregate, shall provide the Officer
with compensation, benefits and reward opportunities at least as favorable as the most favorable of
such compensation, benefits and reward opportunities provided by the Company for the Officer under
such plans, practices, policies and programs as applicable to the Officer at any time during the
180-day period immediately preceding the Effective Date or, if more favorable to the Officer, as
provided at any time thereafter.

(iv) Welfare Benefit Plans. During the Employment Period, the Officer and/or the
Officer’s family, as the case may be, shall be eligible for participation in and shall receive all
benefits under welfare benefit plans, practices, policies and programs provided by the Company and
its subsidiaries (including, without limitation, medical, prescription, dental, disability, salary
continuance, employee life, group life, accidental death and travel accident insurance plans and
programs), at least as favorable as the most favorable benefits applicable to the Officer under
such plans, practices, policies and programs in effect at any time during the 180-day period
immediately preceding the Effective Date or, if more favorable to the Officer and/or the Officer’s
family, as in effect at any time thereafter.

(v) Expenses. During the Employment Period, the Officer shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Officer in connection with the
business of the Company in accordance with the most favorable policies, practices and procedures of
the Company and its subsidiaries in effect at any time during the 180-day period immediately
preceding the Effective Date or, if more favorable to the Officer, as in effect at any time
thereafter with respect to other key Officers.

(vi) Fringe Benefits. During the Employment Period, the Officer shall be entitled to
fringe benefits, in accordance with the benefits applicable to the Officer under the most favorable
plans, practices, programs and policies of the Company and its subsidiaries in effect at any time
during the 180-day period immediately preceding the Effective Date or, if more favorable to the
Officer, as in effect at any time thereafter with respect to other key Officers.

(vii) Office and Support Staff. During the Employment Period, the Officer shall be
entitled to an office or offices of a size and with furnishings and other appointments, and to
secretarial and other assistance, at least equal to the most favorable of the foregoing provided to
the Officer by the Company and its subsidiaries at any time during the 180-day period immediately
preceding the Effective Date or, if more favorable to the Officer, as provided at any time
thereafter with respect to other key Officers of the Company and its subsidiaries.

(viii) Vacation. During the Employment Period, the Officer shall be entitled to paid
vacation in accordance with the benefits applicable to the Officer under the most favorable plans,
policies, programs and practices of the Company and its subsidiaries as in effect at any time
during the 180-day period immediately preceding the Effective Date or, if more favorable to the
Officer, as in effect at any time thereafter.

5. Termination

(a) Death or Disability. This Agreement shall terminate automatically upon the
Officer’s death. If the Company determines in good faith that the Disability of the Officer has
occurred (pursuant to the definition of “Disability” set forth below), it may give to the Officer
written notice of its intention to terminate the Officer’s employment. In such event, the
Officer’s employment with the Company shall terminate effective on the later of (i) the 30th day
after receipt of such notice by the Officer, provided that, within the 30 days after such receipt,
the Officer shall not have returned to full-time performance of the Officer’s duties, or (ii) if
the Officer is eligible to receive disability benefits under the Company’s long-term disability
plan (if any) then in effect, then the date on which the Officer begins receiving such disability
benefits (the “Disability Effective Date”). For purposes of this Agreement, “Disability” means a
mental or physical incapacity, illness or disability which renders the Officer unable to perform
his duties and responsibilities for the Company and which, at least 26 weeks after its
commencement, is determined to be total and permanent by a physician selected by the Company or its
insurers and acceptable to the Officer or the Officer’s legal representative (such agreement as to
acceptability not to be withheld unreasonably).

(b) Cause. The Company may terminate the Officer’s employment for “Cause.” For
purposes of this Agreement, “Cause” shall mean (i) an act or acts of personal dishonesty taken by
the Officer and intended to result in substantial personal enrichment of the Officer at the expense
of the Company, (ii) repeated violations by the Officer of the Officer’s obligations under Section
4(a) of this Agreement which are demonstrably willful and deliberate on the Officer’s part and
which are materially harmful to the Company, and which are not remedied in a reasonable period of
time after receipt of written notice from the Company to the Officer, or (iii) the conviction of
the Officer of a felony crime. Any determination of Cause pursuant to this Section 5(b) shall be
made by the Board at a duly called meeting, and the Officer shall be given at least five (5) days
notice (the “Notice”), in writing, of such meeting, as well as a detailed description of all acts
or omissions upon which the Company is relying for such termination. The Officer shall have the
right to appear before such meeting of the Board with or without legal counsel of his or her
choosing to refute any determination of Cause specified in such Notice, and any termination of the
Officer’s employment by reason of such Cause determination shall not be effective until the Officer
is afforded such opportunity to appear. Nothing herein shall limit the right of the Officer or his
beneficiaries to contest the validity or propriety of any such determination.

(c) Good Reason. The Officer’s employment may be terminated by the Officer for “Good
Reason”. For purposes of this Agreement, “Good Reason” means:

(i) the assignment to the Officer of any duties inconsistent in any respect with the Officer’s
position (including status, offices, titles and reporting requirements), authority, duties or
responsibilities as contemplated by Section 4(a) of this Agreement, or any other action by the
Company which results in a diminution in such position, authority, duties or responsibilities,
excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith
and which is remedied by the Company promptly after receipt of notice thereof given by the Officer;

(ii) any failure by the Company to comply with any of the provisions of Section 4(b) of this
Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith
and which is remedied by the Company promptly after receipt of notice thereof given by the Officer;

(iii) the Company’s requiring the Officer to be based at any office or location other than
that described in Section 4(a)(i)(2) hereof; except for travel reasonably required in the
performance of the Officer’s responsibilities consistent with practices in effect prior to the
Effective Date;

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

(v) any failure by the Company to comply with and satisfy Section 9(c) of this Agreement.

Anything in this Agreement to the contrary notwithstanding, a termination by the Officer for
any reason during the 30-day period immediately following the first anniversary of the Effective
Date shall be deemed to be a termination for Good Reason for all purposes of this Agreement.

(d) Notice of Termination. Any termination by the Company for Cause or by the Officer
for Good Reason shall be communicated by Notice of Termination to the other party hereto given in
accordance with Section 10(b) of this Agreement. For purposes of this Agreement, a “Notice of
Termination” means a written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Officer’s employment under the provision so indicated, and
(iii) if the Date of Termination (as defined below) is other than the date of receipt of such
notice, specifies the termination date (which date shall be not more than fifteen (15) days after
the giving of such notice). The failure by the Officer to set forth in the Notice of Termination
any fact or circumstance which contributes to a showing of Good Reason shall not waive any right of
the Officer hereunder or preclude the Officer from asserting such fact or circumstance in enforcing
his rights hereunder.

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

6. Obligations of the Company upon Termination

(a) Death. If during the Employment Period the Officer’s employment is terminated by
reason of the Officer’s death, this Agreement shall terminate without further obligation to the
Officer’s legal representatives under this Agreement, other than those obligations accrued or
earned and vested (if applicable) by the Officer as of the Date of Termination, including, for this
purpose (i) the Officer’s full Base Salary through the Date of Termination at the rate in effect on
the Date of Termination or, if higher, at the highest rate in effect at any time from the 180-day
period preceding the Effective Date through the Date of Termination (the “Highest Base Salary”),
(ii) the product of the Annual Bonus paid to the Officer for the last full fiscal year and a
fraction, the numerator of which is the number of days in the current fiscal year through the Date
of Termination, and the denominator of which is 365, and (iii) any compensation previously deferred
by the Officer (together with any accrued interest thereon) and not yet paid by the Company and any
accrued vacation pay not yet paid by the Company (such amounts specified in clauses (i), (ii) and
(iii) are hereinafter referred to as “Accrued Obligations”). All such Accrued Obligations shall be
paid to the Officer’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days of
the Date of Termination. Anything in this Agreement to the contrary notwithstanding, the Officer’s
family shall be entitled to receive benefits at least equal to the most favorable benefits provided
by the Company and any of its subsidiaries to surviving families of similar Officers of the Company
and such subsidiaries under such plans, programs, practices and policies relating to family death
benefits, if any, in accordance with the most favorable plans, programs, practices and policies of
the Company and its subsidiaries in effect at any time during the 180-day period immediately
preceding the Effective Date or, if more favorable to the Officer and/or the Officer’s family, as
in effect on the date of the Officer’s death with respect to other similar key Officers of the
Company and its subsidiaries and their families.

(b) Disability. If during the Employment Period the Officer’s employment is terminated
by reason of the Officer’s Disability, this Agreement shall terminate without further obligations
to the Officer, other than those obligations accrued or earned and vested (if applicable) by the
Officer as of the Date of Termination, including for this purpose, all Accrued Obligations. All
such Accrued Obligations shall be paid to the Officer in a lump sum in cash within 30 days of the
Date of Termination. Anything in this Agreement to the contrary notwithstanding, the Officer shall
be entitled after the Disability Effective Date to receive disability and other benefits at least
equal to the most favorable of those provided by the Company and its subsidiaries to similar
disabled employees and/or their families in accordance with such plans, programs, practices and
policies relating to disability, if any, in accordance with the most favorable plans, programs,
practices and policies of the Company and its subsidiaries in effect at any time during the 180-day
period immediately preceding the Effective Date or, if more favorable to the Officer and/or the
Officer’s family, as in effect at any time thereafter with respect to other similar key Officers
and their families.

(c) Causes Other than for Good Reason. If during the Employment Period, the Officer
terminates his employment other than for Good Reason, or the Officer’s employment is terminated by
the Company for Cause, this Agreement shall terminate without further obligation to the Officer,
other than those obligations accrued or earned and vested (if applicable) by the Officer through
the Date of Termination, including for this purpose, all Accrued Obligations. All amounts required
to be paid to the Officer pursuant to this Section 6(c) shall be paid to the Officer in a lump sum
in cash within 30 days of the Date of Termination.

(d) Good Reasons Other Than for Cause or Disability. If, during the Employment Period,
the Company shall terminate the Officer’s employment other than for Cause, Disability or death, or
if the Officer shall terminate his employment for Good Reason then:

(i) the Company shall pay to the Officer in a lump sum in cash within 30 days after the
Date of Termination the aggregate of the following amounts:

1. to the extent not theretofore paid, the Officer’s Highest Base Salary
through the date of Termination; and

2. the product of (x) the Annual Bonus paid to the Officer for the last full
fiscal year (if any) ending during the Employment Period or, if higher, the Annual
Bonus paid to the Officer for the last full fiscal year prior to the Effective Date
(as applicable, the “Recent Bonus”) and (y) a fraction, the numerator of which is
the number of days in the current fiscal year through the Date of Termination and
the denominator of which is 365; and

3. the product of (x) two (2), and (y) the sum of (i) the Highest Base Salary
and (ii) the Recent Bonus; and

4. in the case of compensation previously deferred by the Officer, all amounts
previously deferred (together with any accrued interest thereon) and not yet paid by
the Company, and any accrued vacation pay not yet paid by the Company; and

5. all other amounts accrued or earned by the Officer through the Date of
Termination and amounts otherwise owing under the then existing plans and policies
at the Company; and

(ii) for the remainder of the Employment Period, or such longer period as any plan,
program, practice or policy may provide, the Company shall continue benefits to the Officer
and/or the Officer’s family at least equal to those which would have been provided to them
in accordance with the plans, programs, practices and policies described in Section 4(b)(iv)
of this Agreement if the Officer’s employment had not been terminated, including health,
dental, disability insurance and life insurance, in accordance with the most favorable
plans, practices, programs or policies of the Company and its subsidiaries during the
180-day period immediately preceding the Effective Date or, if more favorable to the
Officer, as in effect at any time thereafter with respect to similar Officers and their
families and, for purposes of eligibility for retiree benefits pursuant to such plans,
practices, programs and policies, the Officer shall be considered to have remained employed
until the end of the Employment Period and to have retired on the last day of such period.

(e) Termination Before or After Employment Period. If the Officer’s employment with
the Company terminates or is terminated either before or after the Employment Period, then the
provisions of paragraphs (a) through (d) of this Agreement shall not apply, and the rights and
obligations of the Officer and the Company relating to such termination of employment shall be
determined without regard thereto.

(f) Non-exclusivity of Rights. Nothing in this Agreement shall prevent or
limit the Officer’s continuing or future participation in any benefit, bonus, incentive or other
plans, programs, policies or practices provided by the Company or any of its subsidiaries and for
which the Officer may qualify, nor shall anything herein limit or otherwise affect such rights as
the Officer may have under any stock option or other agreements with the Company or any of its
subsidiaries. Amounts which are vested benefits or which the Officer is otherwise entitled to
receive under any plan, policy, practice or program of the Company or any of its subsidiaries at or
subsequent to the Date of Termination shall be payable in accordance with such plan, policy,
practice or program.

(g) No Set-off or Mitigation; Payment of Legal Fees and Expenses. The Company’s
obligation to make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or
other claim, right or action which the Company may have against the Officer or others. In no event
shall the Officer be obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to the Officer under any of the provisions of this Agreement. The
Company agrees to pay, to the full extent permitted by law, all legal fees and expenses which the
Officer may reasonably incur as a result of any contest (regardless of the outcome thereof) by the
Company (including its successors, assigns or affiliates) or others of the validity or
enforceability of, or liability under, any provision of this Agreement or any guarantee of
performance thereof (including as a result of any contest by the Officer about the amount of any
payment pursuant to Section 7 of this Agreement), plus in each case interest at the applicable
Federal rate provided for in Section 7872(f)(2) of the Code.

7. Certain Additional Payments by the Company

(a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment, distribution or other action by the Company to or for the benefit of
the Officer (whether paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, (including any additional payments required under this Section 7) (a
“Payment”) would be subject to an excise tax imposed by Section 4999 (or its successor or other
provision which imposes a similar excise tax) of the Internal Revenue Code of 1986, as amended (the
“Code”), any excise tax that may be imposed by a state and/or local law, or any interest or
penalties incurred by the Officer with respect to any such excise taxes (such excise taxes,
together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), the Company shall make a payment to the Officer (a “Gross-Up Payment”) in an amount
such that after payment by the Officer of all taxes (including any Excise Tax) imposed upon the
Gross-Up Payment, the Officer retains (or has had paid to the Internal Revenue Service on his
behalf) an amount of the Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the
Payments and (y) the product of any deductions disallowed because of the inclusion of the Gross-Up
Payment in the Officer’s adjusted gross income and the highest applicable marginal rate of federal
income taxation for the calendar year in which the Gross-Up Payment is to be made. For purposes of
determining the amount of the Gross-Up Payment, the Officer shall be deemed to (i) pay federal
income taxes at the highest marginal rates of federal income taxation for the calendar year in
which the Gross-Up Payment is to be made, and (ii) pay applicable state and local income taxes at
the highest marginal rate of taxation for the calendar year in which the Gross-Up Payment is to be
made, net of the maximum reduction in federal income taxes which could be obtained from deduction
of such state and local taxes.

(b) Subject to the provisions of paragraph (c) of this Section 7, all determinations required
to be made under this Section 7, including whether and when a Gross-Up Payment is required and the
amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by Price Waterhouse Coopers LLP (the “Accounting Firm”) which shall
provide detailed supporting calculations both to the Company and the Officer within 15 business
days of the receipt of notice from the Officer that there has been a Payment, or such earlier time
as is requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Officer shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 7, shall be paid by the Company to the Officer within five days
of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no
Excise Tax is payable by the Officer, it shall furnish the Officer with a written opinion that
failure to report the Excise Tax on the Officer’s applicable federal income tax return would not
result in the imposition of a negligence or similar penalty. Any determination by the Accounting
Firm shall be binding upon the Company and the Officer. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination by the Accounting
Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company
should have been made (“Underpayment”), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to Section 7 and the
Officer thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Officer.

(c) The Officer shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than ten business days after the
Officer is informed in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. The Officer shall not pay such
claim prior to the expiration of the 30-day period following the date on which it gives such notice
to the Company (or such shorter period ending on the date that any payment of taxes with respect to
such claim is due). If the Company notifies the Officer in writing prior to the expiration of such
period that it desires to contest such claim, the Officer shall:

(i) give the Company any information reasonably requested by the Company relating to
such claim,

(ii) take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the
Company,

(iii) cooperate with the Company in good faith in order effectively to contest such
claim, and

(iv) permit the Company to participate in any proceedings relating to such claim;
provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold the Officer harmless, on an after-tax basis, for any Excise Tax or
income tax (including interest and penalties with respect thereto) imposed as a result of
such representation and payment of costs and expenses. Without limitation on the foregoing
provisions of this Section 7(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct the Officer to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner, and the Officer
agrees to prosecute such contest to a determination before any administrative tribunal, in a
court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Officer to pay such claim and
sue for a refund, the Company shall advance the amount of such payment to the Officer, on an
interest-free basis, and shall indemnify and hold the Officer harmless, on an after-tax
basis, from any Excise Tax or income tax (including interest or penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed income with
respect to such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Officer with respect to
which such contested amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company’s control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and the Officer shall be entitled to
settle or contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

(d) If, after the receipt by the Officer of an amount advanced by the Company pursuant to
Section 7(c), the Officer becomes entitled to receive any refund with respect to such claim, the
Officer shall (subject to the Company’s complying with the requirements of Section 7(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Officer of an amount advanced by the
Company pursuant to Section 7(c), a determination is made that the Officer shall not be entitled to
any refund with respect to such claim and the Company does not notify the Officer in writing of its
intent to contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to be repaid and the
amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required
to be paid.

8. Confidential Information

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

9. Successors

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

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

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

10. Miscellaneous

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

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

If to the Officer:

Robert J. Rabin

RailAmerica, Inc.

5300 Broken Sound Boulevard, NW

Boca Raton, Florida 33487

If to the Company:

	 	 	 
	RailAmerica, Inc.

	 	

	 
	 	 
	5300 Broken Sound Boulevard, NW

	 
	 	 
	Boca Raton, Florida 33487

Attn.:

	 	

Executive Vice President

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

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

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

(e) The Officer’s failure to insist upon strict compliance with any provision hereof shall not
be deemed to be a waiver of such provision or any other provision thereof.

(f) This Agreement contains the entire understanding of the Company and the Officer with
respect to the subject matter hereof.

(g) The Officer and the Company acknowledge that, except as set forth in any written
employment agreement between the Officer and the Company and effective from and after the date
hereof, the employment of the Officer by the Company is “at will,” and, prior to the Effective
Date, may be terminated by either the Officer or the Company at any time. Upon a termination of the
Officer’s employment prior to the Effective Date, there shall be no further rights of the Officer
under this Agreement.

1

IN WITNESS WHEREOF, the Officer has hereunto set his hand and, pursuant to the authorization
from its Board of Directors, the Company has caused this agreement to be executed in its name on
its behalf, all as of the day and year first above written.

/s/ Robert J. Rabin

	 	 	 	Robert J. Rabin

RAILAMERICA, INC.,

a Delaware corporation

	 	 	 
	By:

	 	/s/ Charles Swinburn
	
 
	 	 
	
 
	 	Charles Swinburn

	 	 	 	Chief Executive Officer

2EX-10.104

Exhibit 10.104

CHANGE IN CONTROL SEVERANCE AGREEMENT

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (“Agreement”) is made and entered into as of
the 26th day of May 2005 by and between RAILAMERICA, INC., a Delaware corporation (the
“Company”), and SCOTT G. WILLIAMS (the “Officer”).

RECITALS

The Board of Directors of the Company (the “Board”), has determined that it is in the best
interests of the Company and its shareholders to assure that the Company will have the continued
dedication of the Officer, notwithstanding the possibility, threat, or occurrence of a Change of
Control (as defined below) of the Company.

The Board believes it is imperative to diminish the inevitable distraction of the Officer by
virtue of the personal uncertainties and risks created by a pending or threatened Change of
Control, to encourage the Officer’s full attention and dedication to the Company currently and in
the event of any threatened or pending Change of Control, and to provide the Officer with
compensation arrangements upon a Change of Control which provide the Officer with individual
financial security and which are competitive with those of other corporations and, in order to
accomplish these objectives, the Board has caused the Company to enter into this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, IT IS
HEREBY AGREED AS FOLLOWS:

1. Certain Definitions

(a) The “Effective Date” shall be the first date during the “Change of Control Period” (as
defined in Section 1(b)) on which a Change of Control occurs. Anything in this Agreement to the
contrary notwithstanding, if the Officer’s employment with the Company is terminated prior to the
date on which a Change of Control occurs, and it is reasonably demonstrated that such termination
(1) was at the request of a third party who has taken steps reasonably calculated to effect a
Change of Control, or (ii) otherwise arose in connection with or anticipation of a Change of
Control, then for all purposes of this Agreement the “Effective Date” shall mean the date
immediately prior to the date of such termination; provided that if the Officer’s employment with
the Company is terminated within the six months immediately preceding the date on which a Change in
Control occurs, then the termination of employment shall be presumed to have arisen in anticipation
of a Change of Control unless shown to the contrary by clear and convincing evidence.

(b) The “Change of Control Period” is the period commencing on the date hereof and ending on
the earlier to occur of (i) the third anniversary of such date, and (ii) the first day of the month
next following the Officer’s normal retirement date at age 65 (“Normal Retirement Date”);
provided, however, that commencing on the date one year after the date hereof; and
on each annual anniversary of such date (such date and each annual anniversary thereof is
hereinafter referred to as the “Renewal Date”), the Change of Control Period shall be automatically
extended so as to terminate on the earlier of (x) three years from such Renewal Date, or (y) the
first day of the month coinciding with or next following the Officer’s Normal Retirement Date,
unless at least sixty (60) days prior to the Renewal Date the Company shall give written notice to
the Officer that the Change of Control Period shall not be so extended.

2. Change of Control

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

(i) The acquisition (other than from the Company), by any person, entity or “group”, within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange
Act”), of beneficial ownership (within the meaning of Rule 1 3d-3 promulgated under the Exchange
Act) of 33 1/3% or more of either the then outstanding shares of common stock or the combined
voting power of the Company’s then outstanding voting securities entitled to vote generally in the
election of directors (hereafter referred to as the ownership of a “Controlling Interest”),
excluding, for this purpose, any acquisitions by (1) the Company or any of its subsidiaries, (2)
any person, entity or “group” that as of the date hereof owns beneficial ownership (within the
meaning of Rule 1 3d-3 promulgated under the Exchange Act) of a Controlling Interest; or (3) any
employee benefit plan of the Company or any of its subsidiaries.

(ii) The nine (9) individuals who, as of the date hereof; constitute the Board of Directors
(as of the date hereof the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director subsequent to the date hereof
whose election, or nomination for election by the Company’s stockholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the directors of the Company) shall be, for
purposes of this Agreement, considered as though such person were a member of the Incumbent Board;
or

(iii) Approval by the stockholders of the Company of (1) a reorganization, merger or
consolidation with respect to which persons who were the stockholders of the Company immediately
prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than
66 2/3% of the combined voting power entitled to vote generally in the election of directors of the
reorganized, merged or consolidated company’s (or entity’s) then outstanding voting securities in
substantially the same proportions as their ownership immediately prior to such reorganization,
merger, or consolidation, (2) a liquidation or dissolution of the Company, or (3) the sale of all
or substantially all of the assets of the Company, unless the approved reorganization, merger,
consolidation, liquidation, dissolution or sale is subsequently abandoned.

3. Employment Period

If and only in the event that the Officer is an officer, elected or otherwise designated by
the Board, of the Company or one of its subsidiaries as of the Effective Date, the Company hereby
agrees to continue the Officer in its employ, and the Officer hereby agrees to remain in the employ
of the Company, for the period commencing on the Effective Date and ending on the earlier to occur
of (i) the third anniversary of such date, or (ii) the first day of the month coinciding with or
next following the Officer’s Normal Retirement Date (the “Employment Period”). In the event that
the Officer is not an officer, elected or otherwise designated by the Board, of the Company or one
of its subsidiaries as of the Effective Date, then this Agreement shall immediately terminate and
no longer have any force or effect. Notwithstanding anything to the contrary herein, in the event
that the Officer ceases to be an officer, elected or otherwise designated by the Board, within the
six (6) months immediately preceding the Effective Date, then the Officer shall be deemed to be an
officer, elected or otherwise designated by the Board, of the Company or one of its subsidiaries as
of the Effective Date unless the Company demonstrates by clear and convincing evidence that such
cessation was not in connection with or in anticipation of a Change in Control.

4. Terms of Employment

(a) Position and Duties.

(i) During the Employment Period, (1) the Officer’s position (including status, offices,
titles and reporting requirements), authority, duties and responsibilities shall be at least
commensurate in all material respects with the most significant of those held, exercised and
assigned at any time during the 180-day period immediately preceding the Effective Date, and (2)
the Officer’s services shall be performed at the location where the Officer was employed
immediately preceding the Effective Date or any office or location less than 50 miles from such
location.

(ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Officer is entitled, the Officer agrees to devote reasonable attention and time during
normal business hours to the business and affairs of the Company and, to the extent necessary to
discharge the responsibilities assigned to the Officer hereunder, to use the Officer’s reasonable
best efforts to perform faithfully and efficiently such responsibilities. During the Employment
Period it shall not be a violation of this Agreement for the Officer to (1) serve on corporate,
civic or charitable boards or committees, (2) deliver lectures, fulfill speaking engagements or
teach at educational institutions, and (3) manage personal investments, so long as such activities
do not significantly interfere with the performance of the Officer’s responsibilities as an
employee of the Company in accordance with this Agreement. It is expressly understood and agreed
that to the extent that any such activities have been conducted by the Officer prior to the
Effective Date, the continued conduct of such activities (or the conduct of activities similar in
nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to
interfere with the performance of the Officer’s responsibilities to the Company.

(b) Compensation.

(i) Base Salary. During the Employment Period, the Officer shall receive a base salary
(“Base Salary”) at a monthly rate at least equal to the highest monthly base salary paid or payable
to the Officer by the Company during the twelve-month period immediately preceding the month in
which the Effective Date occurs. During the Employment Period, the Base Salary shall be reviewed at
least annually and shall be increased at any time and from time to time as shall be substantially
consistent with increases in base salary awarded in the ordinary course of business to other key
Officers of the Company and its subsidiaries. Any increase in Base Salary shall not serve to limit
or reduce any other obligation to the Officer under this Agreement. Base Salary shall not be
reduced after any such increase.

(ii) Annual Bonus. In addition to Base Salary, the Officer shall be awarded, for each
fiscal year during the Employment Period, an annual bonus (an “Annual Bonus”) (either pursuant to
any then-established incentive compensation plan(s) of the Company or otherwise) in cash at least
equal to the greater of (x) the average of the bonuses payable to the Officer from the Company and
its subsidiaries in the three fiscal years immediately preceding the fiscal year in which the
Effective Date occurs, or (y) the bonus that would be payable for the fiscal year if such bonus was
determined based upon the same formula, terms, and conditions as was used to determine the
Officer’s bonus for the fiscal year immediately preceding the fiscal year in which the Effective
Date occurs. Nothing in this Agreement shall require the payment of an Annual Bonus prior to the
Effective Date.

(iii) Incentive, Savings and Retirement Plans. In addition to Base Salary and Annual
Bonus payable as hereinabove provided, the Officer shall be entitled to participate during the
Employment Period in all incentive, savings and retirement plans, practices, policies and programs
applicable to similar key Officers of the Company (including its successors or assigns) and its
affiliates, in each case comparable to those in effect on the Effective Date or as subsequently
amended. Such plans, practices, policies and programs, in the aggregate, shall provide the Officer
with compensation, benefits and reward opportunities at least as favorable as the most favorable of
such compensation, benefits and reward opportunities provided by the Company for the Officer under
such plans, practices, policies and programs as applicable to the Officer at any time during the
180-day period immediately preceding the Effective Date or, if more favorable to the Officer, as
provided at any time thereafter.

(iv) Welfare Benefit Plans. During the Employment Period, the Officer and/or the
Officer’s family, as the case may be, shall be eligible for participation in and shall receive all
benefits under welfare benefit plans, practices, policies and programs provided by the Company and
its subsidiaries (including, without limitation, medical, prescription, dental, disability, salary
continuance, employee life, group life, accidental death and travel accident insurance plans and
programs), at least as favorable as the most favorable benefits applicable to the Officer under
such plans, practices, policies and programs in effect at any time during the 180-day period
immediately preceding the Effective Date or, if more favorable to the Officer and/or the Officer’s
family, as in effect at any time thereafter.

(v) Expenses. During the Employment Period, the Officer shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Officer in connection with the
business of the Company in accordance with the most favorable policies, practices and procedures of
the Company and its subsidiaries in effect at any time during the 180-day period immediately
preceding the Effective Date or, if more favorable to the Officer, as in effect at any time
thereafter with respect to other key Officers.

(vi) Fringe Benefits. During the Employment Period, the Officer shall be entitled to
fringe benefits, in accordance with the benefits applicable to the Officer under the most favorable
plans, practices, programs and policies of the Company and its subsidiaries in effect at any time
during the 180-day period immediately preceding the Effective Date or, if more favorable to the
Officer, as in effect at any time thereafter with respect to other key Officers.

(vii) Office and Support Staff. During the Employment Period, the Officer shall be
entitled to an office or offices of a size and with furnishings and other appointments, and to
secretarial and other assistance, at least equal to the most favorable of the foregoing provided to
the Officer by the Company and its subsidiaries at any time during the 180-day period immediately
preceding the Effective Date or, if more favorable to the Officer, as provided at any time
thereafter with respect to other key Officers of the Company and its subsidiaries.

(viii) Vacation. During the Employment Period, the Officer shall be entitled to paid
vacation in accordance with the benefits applicable to the Officer under the most favorable plans,
policies, programs and practices of the Company and its subsidiaries as in effect at any time
during the 180-day period immediately preceding the Effective Date or, if more favorable to the
Officer, as in effect at any time thereafter.

5. Termination

(a) Death or Disability. This Agreement shall terminate automatically upon the
Officer’s death. If the Company determines in good faith that the Disability of the Officer has
occurred (pursuant to the definition of “Disability” set forth below), it may give to the Officer
written notice of its intention to terminate the Officer’s employment. In such event, the
Officer’s employment with the Company shall terminate effective on the later of (i) the 30th day
after receipt of such notice by the Officer, provided that, within the 30 days after such receipt,
the Officer shall not have returned to full-time performance of the Officer’s duties, or (ii) if
the Officer is eligible to receive disability benefits under the Company’s long-term disability
plan (if any) then in effect, then the date on which the Officer begins receiving such disability
benefits (the “Disability Effective Date”). For purposes of this Agreement, “Disability” means a
mental or physical incapacity, illness or disability which renders the Officer unable to perform
his duties and responsibilities for the Company and which, at least 26 weeks after its
commencement, is determined to be total and permanent by a physician selected by the Company or its
insurers and acceptable to the Officer or the Officer’s legal representative (such agreement as to
acceptability not to be withheld unreasonably).

(b) Cause. The Company may terminate the Officer’s employment for “Cause.” For
purposes of this Agreement, “Cause” shall mean (i) an act or acts of personal dishonesty taken by
the Officer and intended to result in substantial personal enrichment of the Officer at the expense
of the Company, (ii) repeated violations by the Officer of the Officer’s obligations under Section
4(a) of this Agreement which are demonstrably willful and deliberate on the Officer’s part and
which are materially harmful to the Company, and which are not remedied in a reasonable period of
time after receipt of written notice from the Company to the Officer, or (iii) the conviction of
the Officer of a felony crime. Any determination of Cause pursuant to this Section 5(b) shall be
made by the Board at a duly called meeting, and the Officer shall be given at least five (5) days
notice (the “Notice”), in writing, of such meeting, as well as a detailed description of all acts
or omissions upon which the Company is relying for such termination. The Officer shall have the
right to appear before such meeting of the Board with or without legal counsel of his or her
choosing to refute any determination of Cause specified in such Notice, and any termination of the
Officer’s employment by reason of such Cause determination shall not be effective until the Officer
is afforded such opportunity to appear. Nothing herein shall limit the right of the Officer or his
beneficiaries to contest the validity or propriety of any such determination.

(c) Good Reason. The Officer’s employment may be terminated by the Officer for “Good
Reason”. For purposes of this Agreement, “Good Reason” means:

(i) the assignment to the Officer of any duties inconsistent in any respect with the Officer’s
position (including status, offices, titles and reporting requirements), authority, duties or
responsibilities as contemplated by Section 4(a) of this Agreement, or any other action by the
Company which results in a diminution in such position, authority, duties or responsibilities,
excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith
and which is remedied by the Company promptly after receipt of notice thereof given by the Officer;

(ii) any failure by the Company to comply with any of the provisions of Section 4(b) of this
Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith
and which is remedied by the Company promptly after receipt of notice thereof given by the Officer;

(iii) the Company’s requiring the Officer to be based at any office or location other than
that described in Section 4(a)(i)(2) hereof; except for travel reasonably required in the
performance of the Officer’s responsibilities consistent with practices in effect prior to the
Effective Date;

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

(v) any failure by the Company to comply with and satisfy Section 9(c) of this Agreement.

Anything in this Agreement to the contrary notwithstanding, a termination by the Officer for
any reason during the 30-day period immediately following the first anniversary of the Effective
Date shall be deemed to be a termination for Good Reason for all purposes of this Agreement.

(d) Notice of Termination. Any termination by the Company for Cause or by the Officer
for Good Reason shall be communicated by Notice of Termination to the other party hereto given in
accordance with Section 10(b) of this Agreement. For purposes of this Agreement, a “Notice of
Termination” means a written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Officer’s employment under the provision so indicated, and
(iii) if the Date of Termination (as defined below) is other than the date of receipt of such
notice, specifies the termination date (which date shall be not more than fifteen (15) days after
the giving of such notice). The failure by the Officer to set forth in the Notice of Termination
any fact or circumstance which contributes to a showing of Good Reason shall not waive any right of
the Officer hereunder or preclude the Officer from asserting such fact or circumstance in enforcing
his rights hereunder.

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

6. Obligations of the Company upon Termination

(a) Death. If during the Employment Period the Officer’s employment is terminated by
reason of the Officer’s death, this Agreement shall terminate without further obligation to the
Officer’s legal representatives under this Agreement, other than those obligations accrued or
earned and vested (if applicable) by the Officer as of the Date of Termination, including, for this
purpose (i) the Officer’s full Base Salary through the Date of Termination at the rate in effect on
the Date of Termination or, if higher, at the highest rate in effect at any time from the 180-day
period preceding the Effective Date through the Date of Termination (the “Highest Base Salary”),
(ii) the product of the Annual Bonus paid to the Officer for the last full fiscal year and a
fraction, the numerator of which is the number of days in the current fiscal year through the Date
of Termination, and the denominator of which is 365, and (iii) any compensation previously deferred
by the Officer (together with any accrued interest thereon) and not yet paid by the Company and any
accrued vacation pay not yet paid by the Company (such amounts specified in clauses (i), (ii) and
(iii) are hereinafter referred to as “Accrued Obligations”). All such Accrued Obligations shall be
paid to the Officer’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days of
the Date of Termination. Anything in this Agreement to the contrary notwithstanding, the Officer’s
family shall be entitled to receive benefits at least equal to the most favorable benefits provided
by the Company and any of its subsidiaries to surviving families of similar Officers of the Company
and such subsidiaries under such plans, programs, practices and policies relating to family death
benefits, if any, in accordance with the most favorable plans, programs, practices and policies of
the Company and its subsidiaries in effect at any time during the 180-day period immediately
preceding the Effective Date or, if more favorable to the Officer and/or the Officer’s family, as
in effect on the date of the Officer’s death with respect to other similar key Officers of the
Company and its subsidiaries and their families.

(b) Disability. If during the Employment Period the Officer’s employment is terminated
by reason of the Officer’s Disability, this Agreement shall terminate without further obligations
to the Officer, other than those obligations accrued or earned and vested (if applicable) by the
Officer as of the Date of Termination, including for this purpose, all Accrued Obligations. All
such Accrued Obligations shall be paid to the Officer in a lump sum in cash within 30 days of the
Date of Termination. Anything in this Agreement to the contrary notwithstanding, the Officer shall
be entitled after the Disability Effective Date to receive disability and other benefits at least
equal to the most favorable of those provided by the Company and its subsidiaries to similar
disabled employees and/or their families in accordance with such plans, programs, practices and
policies relating to disability, if any, in accordance with the most favorable plans, programs,
practices and policies of the Company and its subsidiaries in effect at any time during the 180-day
period immediately preceding the Effective Date or, if more favorable to the Officer and/or the
Officer’s family, as in effect at any time thereafter with respect to other similar key Officers
and their families.

(c) Causes Other than for Good Reason. If during the Employment Period, the Officer
terminates his employment other than for Good Reason, or the Officer’s employment is terminated by
the Company for Cause, this Agreement shall terminate without further obligation to the Officer,
other than those obligations accrued or earned and vested (if applicable) by the Officer through
the Date of Termination, including for this purpose, all Accrued Obligations. All amounts required
to be paid to the Officer pursuant to this Section 6(c) shall be paid to the Officer in a lump sum
in cash within 30 days of the Date of Termination.

(d) Good Reasons Other Than for Cause or Disability. If, during the Employment Period,
the Company shall terminate the Officer’s employment other than for Cause, Disability or death, or
if the Officer shall terminate his employment for Good Reason then:

(i) the Company shall pay to the Officer in a lump sum in cash within 30 days after the
Date of Termination the aggregate of the following amounts:

1. to the extent not theretofore paid, the Officer’s Highest Base Salary
through the date of Termination; and

2. the product of (x) the Annual Bonus paid to the Officer for the last full
fiscal year (if any) ending during the Employment Period or, if higher, the Annual
Bonus paid to the Officer for the last full fiscal year prior to the Effective Date
(as applicable, the “Recent Bonus”) and (y) a fraction, the numerator of which is
the number of days in the current fiscal year through the Date of Termination and
the denominator of which is 365; and

3. the product of (x) two (2), and (y) the sum of (i) the Highest Base Salary
and (ii) the Recent Bonus; and

4. in the case of compensation previously deferred by the Officer, all amounts
previously deferred (together with any accrued interest thereon) and not yet paid by
the Company, and any accrued vacation pay not yet paid by the Company; and

5. all other amounts accrued or earned by the Officer through the Date of
Termination and amounts otherwise owing under the then existing plans and policies
at the Company; and

(ii) for the remainder of the Employment Period, or such longer period as any plan,
program, practice or policy may provide, the Company shall continue benefits to the Officer
and/or the Officer’s family at least equal to those which would have been provided to them
in accordance with the plans, programs, practices and policies described in Section 4(b)(iv)
of this Agreement if the Officer’s employment had not been terminated, including health,
dental, disability insurance and life insurance, in accordance with the most favorable
plans, practices, programs or policies of the Company and its subsidiaries during the
180-day period immediately preceding the Effective Date or, if more favorable to the
Officer, as in effect at any time thereafter with respect to similar Officers and their
families and, for purposes of eligibility for retiree benefits pursuant to such plans,
practices, programs and policies, the Officer shall be considered to have remained employed
until the end of the Employment Period and to have retired on the last day of such period.

(e) Termination Before or After Employment Period. If the Officer’s employment with
the Company terminates or is terminated either before or after the Employment Period, then the
provisions of paragraphs (a) through (d) of this Agreement shall not apply, and the rights and
obligations of the Officer and the Company relating to such termination of employment shall be
determined without regard thereto.

(f) Non-exclusivity of Rights. Nothing in this Agreement shall prevent or
limit the Officer’s continuing or future participation in any benefit, bonus, incentive or other
plans, programs, policies or practices provided by the Company or any of its subsidiaries and for
which the Officer may qualify, nor shall anything herein limit or otherwise affect such rights as
the Officer may have under any stock option or other agreements with the Company or any of its
subsidiaries. Amounts which are vested benefits or which the Officer is otherwise entitled to
receive under any plan, policy, practice or program of the Company or any of its subsidiaries at or
subsequent to the Date of Termination shall be payable in accordance with such plan, policy,
practice or program.

(g) No Set-off or Mitigation; Payment of Legal Fees and Expenses. The Company’s
obligation to make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or
other claim, right or action which the Company may have against the Officer or others. In no event
shall the Officer be obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to the Officer under any of the provisions of this Agreement. The
Company agrees to pay, to the full extent permitted by law, all legal fees and expenses which the
Officer may reasonably incur as a result of any contest (regardless of the outcome thereof) by the
Company (including its successors, assigns or affiliates) or others of the validity or
enforceability of, or liability under, any provision of this Agreement or any guarantee of
performance thereof (including as a result of any contest by the Officer about the amount of any
payment pursuant to Section 7 of this Agreement), plus in each case interest at the applicable
Federal rate provided for in Section 7872(f)(2) of the Code.

7. Certain Additional Payments by the Company

(a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment, distribution or other action by the Company to or for the benefit of
the Officer (whether paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, (including any additional payments required under this Section 7) (a
“Payment”) would be subject to an excise tax imposed by Section 4999 (or its successor or other
provision which imposes a similar excise tax) of the Internal Revenue Code of 1986, as amended (the
“Code”), any excise tax that may be imposed by a state and/or local law, or any interest or
penalties incurred by the Officer with respect to any such excise taxes (such excise taxes,
together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), the Company shall make a payment to the Officer (a “Gross-Up Payment”) in an amount
such that after payment by the Officer of all taxes (including any Excise Tax) imposed upon the
Gross-Up Payment, the Officer retains (or has had paid to the Internal Revenue Service on his
behalf) an amount of the Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the
Payments and (y) the product of any deductions disallowed because of the inclusion of the Gross-Up
Payment in the Officer’s adjusted gross income and the highest applicable marginal rate of federal
income taxation for the calendar year in which the Gross-Up Payment is to be made. For purposes of
determining the amount of the Gross-Up Payment, the Officer shall be deemed to (i) pay federal
income taxes at the highest marginal rates of federal income taxation for the calendar year in
which the Gross-Up Payment is to be made, and (ii) pay applicable state and local income taxes at
the highest marginal rate of taxation for the calendar year in which the Gross-Up Payment is to be
made, net of the maximum reduction in federal income taxes which could be obtained from deduction
of such state and local taxes.

(b) Subject to the provisions of paragraph (c) of this Section 7, all determinations required
to be made under this Section 7, including whether and when a Gross-Up Payment is required and the
amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by Price Waterhouse Coopers LLP (the “Accounting Firm”) which shall
provide detailed supporting calculations both to the Company and the Officer within 15 business
days of the receipt of notice from the Officer that there has been a Payment, or such earlier time
as is requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Officer shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 7, shall be paid by the Company to the Officer within five days
of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no
Excise Tax is payable by the Officer, it shall furnish the Officer with a written opinion that
failure to report the Excise Tax on the Officer’s applicable federal income tax return would not
result in the imposition of a negligence or similar penalty. Any determination by the Accounting
Firm shall be binding upon the Company and the Officer. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination by the Accounting
Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company
should have been made (“Underpayment”), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to Section 7 and the
Officer thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Officer.

(c) The Officer shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than ten business days after the
Officer is informed in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. The Officer shall not pay such
claim prior to the expiration of the 30-day period following the date on which it gives such notice
to the Company (or such shorter period ending on the date that any payment of taxes with respect to
such claim is due). If the Company notifies the Officer in writing prior to the expiration of such
period that it desires to contest such claim, the Officer shall:

(i) give the Company any information reasonably requested by the Company relating to
such claim,

(ii) take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the
Company,

(iii) cooperate with the Company in good faith in order effectively to contest such
claim, and

(iv) permit the Company to participate in any proceedings relating to such claim;
provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold the Officer harmless, on an after-tax basis, for any Excise Tax or
income tax (including interest and penalties with respect thereto) imposed as a result of
such representation and payment of costs and expenses. Without limitation on the foregoing
provisions of this Section 7(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct the Officer to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner, and the Officer
agrees to prosecute such contest to a determination before any administrative tribunal, in a
court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Officer to pay such claim and
sue for a refund, the Company shall advance the amount of such payment to the Officer, on an
interest-free basis, and shall indemnify and hold the Officer harmless, on an after-tax
basis, from any Excise Tax or income tax (including interest or penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed income with
respect to such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Officer with respect to
which such contested amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company’s control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and the Officer shall be entitled to
settle or contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

(d) If, after the receipt by the Officer of an amount advanced by the Company pursuant to
Section 7(c), the Officer becomes entitled to receive any refund with respect to such claim, the
Officer shall (subject to the Company’s complying with the requirements of Section 7(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Officer of an amount advanced by the
Company pursuant to Section 7(c), a determination is made that the Officer shall not be entitled to
any refund with respect to such claim and the Company does not notify the Officer in writing of its
intent to contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to be repaid and the
amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required
to be paid.

8. Confidential Information

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

9. Successors

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

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

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

10. Miscellaneous

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

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

If to the Officer:

Scott G. Williams

RailAmerica, Inc.

5300 Broken Sound Boulevard, NW

Boca Raton, Florida 33487

If to the Company:

	 	 	 
	RailAmerica, Inc.

	 	

	 
	 	 
	5300 Broken Sound Boulevard, NW

	 
	 	 
	Boca Raton, Florida 33487

Attn.:

	 	

Executive Vice President

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

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

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

(e) The Officer’s failure to insist upon strict compliance with any provision hereof shall not
be deemed to be a waiver of such provision or any other provision thereof.

(f) This Agreement contains the entire understanding of the Company and the Officer with
respect to the subject matter hereof.

(g) The Officer and the Company acknowledge that, except as set forth in any written
employment agreement between the Officer and the Company and effective from and after the date
hereof, the employment of the Officer by the Company is “at will,” and, prior to the Effective
Date, may be terminated by either the Officer or the Company at any time. Upon a termination of the
Officer’s employment prior to the Effective Date, there shall be no further rights of the Officer
under this Agreement.

1

IN WITNESS WHEREOF, the Officer has hereunto set his hand and, pursuant to the authorization
from its Board of Directors, the Company has caused this agreement to be executed in its name on
its behalf, all as of the day and year first above written.

/s/ Scott G. Williams 

	 	 	 	Scott G. Williams

RAILAMERICA, INC.,

a Delaware corporation

	 	 	 
	By:

	 	/s/ Charles Swinburn
	
 
	 	 
	
 
	 	Charles Swinburn

	 	 	 	Chief Executive Officer

2

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