RECORDATION NO. 33406 FILED July 15, 2019 5:47 …...[oLJIPER Chief Surface Transportation Board...

rDLJIPER

July 15, 2019

VIA E-FILING

Chief Section of Administration Office of Proceedings Surface Transportation Board 395 E Street, S.W. Washington, D.C. 20423 - 0001

Dear Section Chief:

DLA Piper LLP (US) 444 West Lake Street, Suite 900 Chicago, Illinois 60606-0089 T 312.368.4000 F 312.236.7516 W www.dlapiper.com

SUSAN G. LICHTENFELD susan [email protected] Direct Phone: 312-368-2125 Direct Fax: 312-630-6338

Enclosed for electronic filing and recordation with the Surface Transportation Board ("STB") pursuant to the provisions of 49 U.S.C. Section 11301 (a) is an executed copy of the Memorandum of Assignment and Assumption dated as of July 15, 2019 between Varilease Finance, Inc. , as assignor, and Sandton Rail Company, LLC, as assignee, a primary document as defined in the STB's Rules for the Recordation of Documents.

The names and address of the parties to the enclosed document are:

Assignor:

Assignee:

Varilease Finance, Inc. 2800 East Cottonwood Parkway, 2nd Floor Salt Lake City, UT 84121

Sandton Rail Company, LLC c/o Sandton Capital Partners LP 16 West 46th Street, 11th Floor New York, NY 10036

A description of the railroad equipment covered by the enclosed document is:

EAST\ 168000650 .1

RECORDATION NO. 33406 FILED July 15, 2019 5:47 PM SURFACE TRANSPORTATION BOARD

[oLJIPER Chief Surface Transportation Board July 15, 2019

Twenty three (23) railcars and seventeen ( 17) locomotives marked as follows:

Description Existing New Reporting Reporting

Mark Mark (post-closing)

1991 Tokyu Car Corporation C1 bi-level SLRG 3001 SDCX 3001 passenger rail car-160 seat

1991 Tokyu Car Corporation C 1 bi-level SLRG 3002 SDCX 3002 passenger rail car-160 seat

1991 Tokyu Car Corporation C 1 bi-level SLRG 3003 SDCX 3003 passenger rail car-160 seat








1954 Budd full dome passenger rail car - Canyon SLRG 508 SDCX 508 View

1954 Budd full dome passenger rail car - Cascade SLRG 509 SDCX 509 View

1954 Budd full dome passenger rail car - Sunset SLRG 510 SDCX 510 View

1954 Budd full dome passenger rail car - Alpine SLRG 512 SDCX 512 View

1954 Budd full dome passenger rail car - Sky SLRG 551 SDCX 551 View

1955 Budd full dome passenger rail car - Prairie SLRG 1394 SDCX 1394 View

191 O Pullman 60-seat open window passenger MH 1070 SDCX 1070 rail car - Katherine

1911 Pullman 48-seat cafe/coach passenger rail MH 1080 SDCX 1080 car - Timberline

1955 Pullman 100-seat passenger rail car - SLRG 2920 SDCX 2920 Wahkeena Falls

1955 Pullman 100-seat passenger rail car - Bridal SLRG 2948 SDCX 2948 Veil Falls

1955 Pullman dance car passenger rail car - SLRG 2968 SDCX 2968 Lewis and Clark

EAST\ 168000650. 1

[oL~IPER

Chief Surface Transportation Board July 15, 2019

1955 Pullman 100-seat passenger rail car -Oneonta Falls

194 7 Pullman kitchen passenger rail car

American Locomotive Company (ALCO) 2-8-0 steam locomotive

Baldwin Locomotive Works (BLW) 2-6-0 steam locomotive

Electro-Motive Diesel (EMO) GP38 locomotive



Electro-Motive Diesel (EMO) F7A locomotive

Electro-Motive Diesel (EMO) F7 A locomotive



Electro-Motive Diesel (EMD) F7A locomotive

Electro-Motive Diesel (EMO) E8A locomotive

Electro-Motive Diesel (EMO) E8A locomotive

American Locomotive Company (ALCO) 2-8-0 steam locomotive

Electro-Motive Diesel (EMO) BL2 locomotive

Electro-Motive Diesel (EMO) BL2 locomotive

American Locomotive Company (ALCO) S2 locomotive

American Locomotive Company (ALCO) S2 locomotive

SLRG 2974 SDCX 2974

SLRG 5461 SDCX 5461

SLRG 18 SDCX18

SLRG 1744 SDCX 1744

MH 02 SDCX 02

MH 88 SDCX 88

MH 89 SDCX 89

MNZX 787 SDCX 787 a/k/a SLRG

787

MNZX 788 SDCX 788 a/k/a SLRG

788

SC 1101 SDCX 1101

SC 1102 SDCX 1102

SLRG 9163 SDCX 9163

SLRG 807 SDCX 807

SLRG 808 SDCX 808

SLRG 20 SDCX 20

SNC 52 SDCX 52

SNC 56 SDCX 56

SNC 5 SDCX 5

SNC 821 SDCX 821

A copy of the Consent Judgment assigned pursuant to the Assignment and Assumption Agreement is attached to the Memorandum of Assignment and Assumption as Schedule B thereto.

A short summary of the document to appear in the index is:

Memorandum of Assignment and Assumption.

$48.00 has been paid via pay.gov to cover the required recordation fee.

Kindly return a file-stamped copy of the enclosed document and this letter to the undersigned.

EAST\ 168000650. 1

[oLJIPER Chief Surface Transportation Board July 15, 2019

Thank you for your attention to this request.

Very truly yours ,

DLA PIPER LLP (US)

SGL/rg Enclosure

EAST\ 168000650 .1

MEMORANDUM OF ASSIGNMENT AND ASSUMPTION

This Memorandum of Assignment and Assumption (this "Memorandum") is made and entered into as of July 15, 2019 between VARILEASE FINANCE, INC., a Michigan corporation ("Assignor") and SANDTON RAIL COMPANY, LLC, a Delaware limited liability company ("Assignee").

WITNESETH:

Assignor and Assignor are parties to that certain Assignment and Assumption Agreement ("Assignment Agreement") dated as of the date hereof entered into in conjunction with that certain Purchase and Sale Agreement ("Purchase Agreement") dated as of the date hereof between Assignor and Assignee. Pursuant to the terms of the Purchase Agreement and the Assignment Agreement, on the date hereof Assignor sold and transferred to Assignee, and Assignee acquired and assumed from Assignor, the twenty three (23) railcars and seventeen (17) locomotives identified on Schedule A hereto (collectively, the "Units") and the Consent Judgment attached as Schedule B hereto (the "Consent Judgment").

This Memorandum may be executed by the parties hereto in any number of counterparts, and all counterparts taken together shall be deemed to constitute one instrument. This Memorandum may be executed by a party and delivered to the other party by facsimile or other electronic transmission, and such signature shall have the same force and effect as an original signature on such document.

[Signature Page Follows J

EAS1\I 67194092.12

RECORDATION NO. 33406 FILED July 15, 2019 5:47 PM SURFACE TRANSPORTATION BOARD

IN WI1NESS WHEREOF, the parties hereto have caused this Memorandum to be signed and sealed by their respective officers as of the date and year first above written.

I certify that I hold the title set forth below, that this instrument was signed on behalf of Assignor with due authority and that I acknowledge that the execution of the foregoing instrument was the free act and deed of Assignor. I further declare under penalty of perjury that the foregoing is true and correct.

V ARILEASE FINANCE, INC.

By:---=-d ......... ~"-"'-~h--=---"-~~----Name: Burl< Reynolds "'--7 Title: CFO

I certify that I hold the title set forth below, that this instrument was signed on behalf of Assignee by authority of its Managing Member and that I acknowledge that the execution of the foregoing instrument was the free act and deed of Assignee. I further declare W1der penalty of perjury that the foregoing is true and correct

SANDTON RAIL COMPANY, LLC

By=~~~~~~~~~~~~~~ Name: Robert Rice Title: Authorized Signatory

2 EAS1\167194092.11

IN WITNESS WHEREOF, the parties hereto have caused th.is Memorandum to be signed and sealed by their respective officers as of the date and year first above written.

I certify that I hold the title set forth below, that this instrument was signed on behalf of Assignor with due authority and that I acknowledge that the execution of the foregoing instrument was the free act and deed of Assignor. I further declare under penalty of perjury that the foregoing is true and correct.

V ARILEASE FINANCE, INC.

By:.~~~~~~~~~~~~~-Name: Burk Reynolds Title: CFO

I certify that I bold the title set forth below, that this instrument was signed on behalf of Assignee by authority of its Managing Member and that I acknowledge that the execution of the foregoing instrument was the free act and deed of Assignee. I further declare under penalty of perjury that the foregoing is true and correct.

:~~ANY:LLC Name: Robert Rice Title: Authorized Signatory

2 EASTil67194092.1 l

EAST\167194092.12

SCHEDULE A TO THE


UNITS

[FOLLOWS]

Description Existing New Reporting Reporting

Mark Mark (post-closin!!l

1991 Tokyu Car Corporation Cl bi-level passenger rail SLRG 3001 SDCX3001 car-160 seat

1991 Tokyu Car Corporation Cl bi-level passenger rail SLRG 3002 SDCX 3002 car-160 seat

1991 Tokyu Car Corporation Cl bi-level passenger rail SLRG 3003 SDCX 3003 car-I 60 seat

I 991 Tokyu Car Corporation Cl bi-level passenger rail SLRG 3004 SDCX 3004 car-160 seat

1991 Tokyu Car Corporation Cl bi-level passenger rail SLRG 3005 SDCX 3005 car- I 60 seat

1991 Tokyu Car Corporation CI bi-level passenger rail SLRG 3006 SDCX 3006 car-160 seat

1991 Tokyu Car Corporation Cl bi-level passenger rail SLRG 3007 SDCX 3007 car-160 scat

I 991 Tokyu Car Corporation CI bi-level passenger rail SLRG 3008 SDCX 3008 car-160 seat

1991 Tokyu Car Corporation CJ bi-level passenger rail SLRG 3009 SDCX 3009 car - I 60 seat

199 I Tokyu Car Corporation CI bi-level passenger rail SLRG 3010 SDCX 3010 car-160 seat

I 954 Budd full dome passenger rail car - Canyon View SLRG 508 SDCX 508

1954 Budd full dome passenger rail car - Cascade View SLRG 509 SDCX 509

I 954 Budd full dome passenger rail car - Sunset View SLRG 510 SDCX 510

I 954 Budd full dome passenger rail car - Alpine View SLRG 512 SDCX 512

EAST\167194092.12

Description Reporting New Mark Reporting

Mark (post-closing)

1954 Budd full dome passenger rail car- Sky View SLRG 551 SDCX 551

1955 Budd full dome passenger rail car - Prairie View SLRG 1394 SDCX 1394

1910 Pullman 60-seat open window passenger rail car - MH 1070 SDCX 1070 Katherine

191 I Pullman 48-seat cafe/coach passenger rail car - MH 1080 SDCX 1080 Timberline

I 955 Pullman I 00-seat passenger rail car - Wahkeena SLRG 2920 SDCX 2920 Falls

1955 Pullman JOO-seat passenger rail car-Bridal Veil SLRG 2948 SDCX 2948 Falls

1955 Pullman dance car passenger rail car - Lewis and SLRG 2968 SDCX2968 Clark

1955 Pullman I 00-seat passenger rail car - Oneonta SLRG 2974 SDCX 2974 Falls

194 7 Pullman kitchen passenger rail car SLRG 5461 SDCX 5461

American Locomotive Company (ALCO) 2-8-0 steam SLRG 18 SDCX 18 locomotive

Baldwin Locomotive Works (BLW) 2-6-0 steam SLRG 1744 SDCX 1744 locomotive

Electro-Motive Diesel (EMO) GP38 locomotive MH02 SDCX 02

Electro-Motive Diesel (EMO) GP9 locomotive MH88 SDCX 88

2 EAST\J 67194092.12

Description Reporting New Mark Reporting

Mark (post-closing)

Electro-Motive Diesel (EMD) GP9 locomotive MJ-189 SDCX89

Electro-Motive Diesel (EMD) F7 A locomotive MNZX 787 SDCX 787 a/k/a SLRG

787

Electro-Motive Diesel (EMO) F7 A locomotive MNZX 788 SDCX 788 a/k/a SLRG

788

Electro-Motive Diesel (EMD) F9A locomotive SC 1101 SDCX I IOI

Electro-Motive Diesel (EMD) F9A locomotive SC 1102 SDCX 1102

Electro-Motive Diesel (EMD) F7 A locomotive SLRG 9163 SDCX 9163

Electro-Motive Diesel (EMD) EBA locomotive SLRG 807 SDCX 807

Electro-Motive Diesel (EMD) E8A locomotive SLRG 808 SDCX 808

American Locomotive Company (ALCO) 2-8-0 steam SLRG 20 SDCX20

locomotive

Electro-Motive Diesel (EMD) BL2 locomotive SNC 52 SDCX 52

Electro-Motive Diesel (EMD) BL2 locomotive SNC56 SDCX 56

American Locomotive Company (ALCO) S2 SNC 5 SDCX5

locomotive

American Locomotive Company (ALCO) S2 SNC 821 SDCX 821

locomotive

3 EAST\167194092.12

EAS1\l 67194092. I 2

SCHEDULER TO THE


CONSENT JUDGMENT

[FOLLOWS]

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STATE OF MJClllGAN IN Tl-IE CIRCUIT COURT FOR THE COl:NTY OF OAk.'LAND

BUSINESS COURT

VARIT.EASE FINANCE, INC., a 1\1.ichigan corporation.

Plaintiff, Case No. 20 l 8-166444-CB

V.

Hon. James M. AJexander HERITAGE RAIL LEASING, LLC, JOW A PACJFlC HOLDINGS, LLC, AUSTIN & NORTifWESTERN RAILROAD COMPANY, JNC. d/b/a TEX.AS-NEW JvtEXICO RAILROAD, CAPE RAJL, me., CHJCAGO TERMINAL R.i\ILROAD COMPANY, HOOSIER STATE TR.A.Hi!, LLC, ISLA LARGO, LLC, KEY TOURS INTERNA TJONAL, MT. HOOD RAILROAD COMP ANY, PERMIAN BASIN RAJ!. WAYS, INC., CONSENT JUDGJ\'IENT

PJEDMONT RAlL WAY, LLC, RUSK, PALESTINE & PAClFTC RA.ILROAD, LLC, SAN LUIS & RIO GRANDE RAILROAD, .NC., SANTA CRUZ AND MO:NTEREY BAY RAIL \VAY COlvIPAKY, SARATOGA AND NORTH CREEK RAILWAY, LLC, THE PULLMAN SLEEP:WG CAR COJvIPA:t-.-Y, LLC, \VEST TEXAS A1'\TD LUBBOCK RAILROAD COMPANY, lNC., and EDWIN EARL ELLIS, .TR.,jointly and severally,

Defendants

I I

JAFFE, Rt\.ITT, HEUER & WEISS, P.C. By: Jay l- Welford (1)34471)

Derck D. McLeod (P66229) Attorneys.for Plaintfff 27777 Franklin Road, Suite 2500 Southfield, Michigan 48034 (248) 351-3000 [email protected] [email protected]

EAS1\167194092.12

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N '<:I" co .... 0 N ~ N -0 ...

LO\VIS & GELLEN. LLP By: Allison Victrns (1'74475) Attonwysfor fJe.frrufam.1· 175 \Ve:.1 Jm:ksc,n Strt'ct Suik 9;50 Chic~o, JL 606[>4 ]'hooe: 012) 364-2SM E-mnil; npklm:<:@.'.'lo~i~-gdk:n.cmn

----------~---- -· < ...

CONSENT .IUOGMF.NT

Ai a session of.said Court. held in tbt· Cu!y i:,f l'ont1ac, Conni}' ofOnklimd1 S1a1c

Ctf l\fahignn on 10/23/20~_8_. __ _

PRESENT: l JON. JAMES M AL!:~~ND!:R Onklo.nd Co11n1y Circuit Court Judge

CPON THE CONSENT of T'lnin1iffVuile11$e Fimmcc, Tm:. ("Pluinlin"), on tht: om: hum!.,

nnd Defemhmti; lleriLuge Ruil Li::a,;ing, LLC, lnwa Pocific lJoldingts, LLC, Austill & ~orthwcstcrn

Rmlrulld Compnny, Inc. dibln Texas-New l\•lcxicu Rnilrond, Cnpe Rail. Inc., Cl1icugo Tcnninul

Rmlrof\d Com~rmy, J-fot'l:dcr Sti11e T:r.1in, I .LC, bli1 T .nrl!A l J .C, Kc; Tuu~ bikmntional, l\tt. I loc,d

Rnilmm! Ct)mpunr, l'ermiun Bu.sin Roilways, lnc., l'iednmnt Railv;ay, LLC, Rus.k, f'nlcs1ine &

Pacific Railrnad, Inc., Santa Cruz. and Monterey B.1>' Rnih"''Y Company, Smutogu und Nurlh Creek

Railway, L1 .C. 11,e rullmun Sleeping Cat Compcmy, LLC, West Tcxos and LublxtCk Railm,,d

Company, lt\C..,. rind J::d\\1n .E.'.1.rl Ellis, Jr. (co!lcctively, '"'l)cfendnnts'j, {In lln: other hnnd, fo,

thc:n1setvcs, rc:specti\'r;)y, nnd/{)r through their respective counsel as sf:'!. fortli below; and

Tim COURT being otherwise folly advised in the circumst!\nccs;

TT lS HEREBY ORDERED !hat thnt cert11in Mw:ter Lea.~c Ai,.reement dall:d August 22,

2016, ,md any and all other documents nnd1or o_greemcmts of any kind executed by l'laintiffandfor

one or more of the Dcfond:mts relating th,crclo {collcclivcly, lhe ''1.e1L11e''), if rm1 prcviuusly

2 EAS1\167194092.I2

Q UJ ..J

u::

L1.-'mlinatcd.11Tc hctchy TERMfNA TEO.

lr JS FL:RTJJER ORllERED that JUDGt>.·1ENr ii- l1crcliy cnkrcd in fovr,r r,f Pkiinliffund

ag.nin!-1 Dcfc:nd1mts.jt•intly and scYcrally. in the m:rmunl ofTI1rcc Miililm Twll llunureu Sixty Two

'ihc,usum:1 Five 1 Jun<lrei.l Ninety 111ree and O I/WO ll.S. Dollars ($3.262.593.01 ). lnlcm:t shnll

nccmc- he-re-under nt the :rote of 11.Yelvc pcrccllt ( I Z%) per nrmum 1m1il Jtiiitl.

ff JS FURTHER ORDERED thol Di:fo11um11.G sltall:

1. lf not nlrendy itis11n?d. immr.diatcl)' folly insure the- cquiplDC!ll identified and described )n the Lcm;.c nnd the doc11mcnls related lhcrch.1 (the "F,quipmcnt"} p=ndin.:. its <lclin:ry to Pl.1inliff; nmi

2. lmmediah:ly puy all unpui<l storage. rnil usa,gc. repair c:osts rmd duty frcs rdn1ing le, the Equipment; tmd

J. Jrnnu:diutcly m;irshnl und return lhc Ei.juiptncnl Lt, l'l1:1h1ti1T m the following k,cmion. within ten ( J 0) days fioin lln~ <lrite of entzy of this On.le:: o location or locations tCI be de1enr1ir\et.1 by Plufotiff and communicutcd to Ddcndanls, with deli\'cry 10 be- mndc ,vith.in ten {10) days ofnotifkation oflhc deli,·eT)' l('lc:.,li('lo.

IT TS FURTifER ORDERED 1hut Ocfend1ml!;' foilure u, L'OlllJ1ly wich this Order shall

constitute c,,2111:mrH ol'tm order of'this Court, whcrcupc,n thr C-,urt may • .'l'lja .fJmllte cmdior nt the

TCq~1cs:I of Plain1iff. cn1cr ony further :md nppmpri:1le relier ngnim,1 Dcfcm[1m11-. Pc111.ling i;ui.:h

further order oru,is Coul't, this Order sbull 0011stitu1e rui 01x.ler for possession ofthc hqu.ipment and

ouyon~ in receipt of this Order cmd a list identifying the Equipment shnll immL"<liatcly l11m c•,·cr

Jl('s.,;e~inn of i.ucb Equipment 1(1 Plliintiff wiu rcnnit PluintHrs iK'<leel'W 1-cmo,,nl of the. same.

Plaintiff shall have the right to utilize the scn·iccs. of court officers or other similru· pen.ons

uutborizcll 1o seize property i111dcr nppl.icahk lnw, lo focililule tctn<•Val of the faJuipmcnL should

tJ1ose in pos.'ies..~ion of the Equipme11t ignore tJi~ terms of this Order.

IT IS FlllUH.ER ORDERED thnl Defendants shull hr: join1Jy and scvcmlfy rci;pc,11,;it,Je

for the }ll!ymc:nl uf nil ullumers' fees, C41ill'l, nntl expenses incurred hy Plaintiff in enforcing tl1e

3 EAST\167194092.12

11::rms ofthi~ f'onst:nl .11.ulgmt:llt, induJin1,: but llL\l iimitc<l to, !hose rclatcJ to tht: rec·Lwt:ry. ~tum~~.

maintcnanc~. repair, nppraisttl, insuring, mnrkl'ting and disposition of the EquipmC"nt.

Tt) 1he c>:Lcnl Pb1in1iffrc11!1:t.e~ uny pni~t!(h rrmn Lhc 1ttnvery 11ml i;.u.lt: of the Equipmcmt,

a:lic1 reduction for all amm.mts provided for herein, Plaizitiff shall reduce the indebtedness due

un~kr this Conseot Judgment by thn1 amount

Tl US CONSENT JUDGMf.NT :n:st>h'C'!. tht: la-:t J1t.-r1di1tp. duim mid doses this c11~.

1T IS SO OR.l)EHED.

/sf James M. Alexander .. _ .... ,..,.-__ .,... __ ~ .. ,ks..,,..,.~'~~--~~,- ... --·---...--·~·"-"'~""'"·-~ -·-·-

OAKLAND COV.NIY ClRClill COURT Jl:[)Gc

AP

APPROVED FOR l.M~lEDlATE ENTRY BY:

MFFE. RAITT, HEUER & WETSS. P.C.

By: ls.I Dt:tek fvfcl.t:<Jd Derek D. McLeod (1'66229) A r,o.meys for l'lahir[[f 27777 Frnn'klin Road, Suite 2500 S(luthftt:111, Mii.:higan 4R034-8214 {248) 351-3000 dmclcod(qliaffdaw .com

LOWIS & GELLEN, I.LP

By: isl Alliso11 Pietras Allison Pietras (P74475) Am,m~wf Pr Dt-ftmd<Ints 275 West Jr11::k..~on Street Suite 950 Chicago, IL 60604 Phone:: (312) 364-2500 E-mnil: apii=tm~(?!Jlo~,~s-gcllen.cnm

EAST\167194092.12 4

RECORDATION NO. 33406 FILED July 15, 2019 5:47 …...[oLJIPER Chief Surface Transportation Board...

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Transcript of RECORDATION NO. 33406 FILED July 15, 2019 5:47 …...[oLJIPER Chief Surface Transportation Board...