FIRST AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
 
THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is entered into as of June 19, 2009, by and among TEXAS INDUSTRIES,
INC., a Delaware corporation (the “Borrower”), BANK OF AMERICA, N.A., as
Administrative Agent (in such capacity, the “Administrative Agent”), and the
financial institutions named on the signature pages hereto (the “Lenders”).
 
WITNESSETH:
 
WHEREAS, the Borrower, the Administrative Agent and the Lenders are parties to
that certain Second Amended and Restated Credit Agreement dated as of June 19,
2009 (the “Credit Agreement”) (capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to such terms in the Credit Agreement);
 
WHEREAS, the Borrower and the Lenders desire to amend certain terms of the
Credit Agreement and have agreed to such amendments on the terms and conditions
of this Amendment;
 
NOW, THEREFORE, in consideration of the premises and mutual covenants herein
contained and intending to be legally bound hereby, the parties hereby agree as
follows:
 
Section 1.               Amendments.  Effective as of the Effective Date
(defined below), the Credit Agreement is hereby amended as follows:
 
1.1.           Amendments to Voting Rights.
 
(a)           Amendment to Section 9.10 of the Credit Agreement.  Section 9.10
of the Credit Agreement is amended to amend and restate clause (a)(iii) thereof
in its entirety as follows:
 
(iii) if approved, authorized or ratified in writing by the Required Lenders,
provided, that a release of the Administrative Agent’s Lien on all or
substantially all of the Collateral shall require the written approval of all
Lenders pursuant to Section 10.01(j);
 
(b)           Amendment to Section 10.01 of the Credit Agreement.  Section 10.01
of the Credit Agreement is amended to add the following clauses after clause (g)
thereof:
 
(h) amend the definition of “Borrowing Base” without the written consent of each
Lender;
 
(i) increase any of the advance rates set forth in the definitions of “Accounts
Formula Amount”, “Inventory Formula Amount” or “Rolling Stock Formula Amount”
without the written consent of each Lender; or

 

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(j) release all or substantially all of the Collateral without the written
consent of each Lender;
 
1.2           Amendments Regarding Defaulting Lenders.
 
(a)           Amendment to Section 2.09 of the Credit Agreement.  Section 2.09
of the Credit Agreement is amended to add the following sentence to the end of
clause (a) thereof:
 
Notwithstanding anything to the contrary herein, no Commitment Fee shall be
payable to any Defaulting Lender with respect to any period of time during which
it is a Defaulting Lender.
 
(b)           Amendment to Section 2.12 of the Credit Agreement.  Section 2.12
of the Credit Agreement is amended to add the following two sentences to the end
of clause (a) thereof:
 
Notwithstanding the foregoing, the Administrative Agent may (but is not required
to), in its discretion, retain any payments or other funds received by the
Administrative Agent that are to be provided to a Defaulting Lender hereunder,
and may apply such funds to such Lender’s defaulted obligations, hold such funds
as collateral for such Lender's defaulted obligations, or readvance the funds to
the Borrower in accordance with this Agreement.  A Defaulting Lender shall not
be entitled to any interest on any amounts held by the Administrative Agent
pursuant to the preceding sentence.
 
1.3.           Amendments to Bank Product Reserve and Waterfall.
 
(a)           Amendment to Section 1.01 of the Credit Agreement.  Section 1.01
of the Credit Agreement is amended to amend and restate clause (ii) of the
defined term “Secured Obligations” in its entirety as follows:
 
(ii) the estimated maximum dollar amount of obligations arising thereunder
(“Bank Product Amount”), and
 
(b)           Amendment to Section 8.03 of the Credit Agreement.  Section 8.03
of the Credit Agreement is amended to amend and restate clauses Second, Fourth
and Sixth thereof in their entirety as follows:
 
Second, to payment of that portion of the Secured Obligations constituting fees,
indemnities and other amounts (other than principal, interest, Letter of Credit
Fees, Cash Management Obligations and Swap Obligations) payable to the Lenders
and the L/C Issuer (including fees, charges and disbursements of counsel to the
respective Lenders and the L/C Issuer (including fees and time charges for
attorneys who may be employees of any Lender or the L/C Issuer) and amounts
payable under Article III), ratably among them in proportion to the respective
amounts described in this clause Second payable to them;

 

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Fourth, to payment of that portion of the Secured Obligations constituting
unpaid principal of the Loans and L/C Borrowings, ratably among the Lenders and
the L/C Issuer in proportion to the respective amounts described in this clause
Fourth held by them;
 
Sixth, to payment of the remaining portion of the Secured Obligations (including
Cash Management Obligations and Swap Obligations), ratably among the Lenders in
proportion to the respective amounts described in this clause Sixth held by
them; and
 
Section 2.               Effectiveness.  This Amendment shall be effective
automatically and without the necessity of any further action when the
Administrative Agent has received (a) counterparts hereof duly executed by the
Borrower and each Lender and (b) a consent executed by the Guarantors pursuant
to which each Guarantor consents to the amendment of the Credit Agreement
contemplated hereby and reaffirms its obligations under the Guaranty (such date,
the “Effective Date”).
 
Section 3.               Reaffirmation of Representations and Warranties.  To
induce the Lenders to enter into this Amendment, the Borrower hereby represents
and warrants that, except to the extent such representations and warranties
specifically refer to an earlier date, each representation and warranty of the
Borrower contained in the Credit Agreement and the other Loan Documents is true
and correct in all material respects on the date hereof and after giving effect
to the amendments set forth herein.
 
Section 4.               Miscellaneous.
 
4.1           Reaffirmation of Loan Documents; Liens.  All of the terms and
provisions of the Credit Agreement and the other Loan Documents shall, except as
amended and modified hereby, remain in full force and effect.  The Borrower
agrees that the amendments and modifications herein contained shall in no manner
adversely affect or impair the Obligations or the Liens securing payment and
performance thereof.
 
4.2           Parties in Interest.  All of the terms and provisions of this
Amendment shall bind and inure to the benefit of the parties hereto and their
respective successors and assigns.
 
4.3           Counterparts.  This Amendment may be executed in counterparts, and
all parties need not execute the same counterpart.  Facsimiles shall be
effective as originals.
 
4.4           Complete Agreement.  THIS AMENDMENT, THE CREDIT AGREEMENT AND THE
OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES.

 

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4.5           Headings.  The headings and captions used in this Amendment are
for convenience only and shall not be deemed to limit, amplify or modify the
terms of this Amendment, nor affect the meaning thereof.
 
4.6           Governing Law.  This Amendment shall be governed by, and construed
in accordance with, the law of the State of Texas.
 
[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers on the date and year first
above written.

 

 
BORROWER:
     
TEXAS INDUSTRIES, INC., a Delaware corporation
     
By:
/s/ Sharon Ellis
 
Name:
Sharon Ellis
 
Title:
Treasurer

 
 

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ADMINISTRATIVE AGENT AND LENDERS:
     
BANK OF AMERICA, N.A., as Administrative
Agent
     
By:
/s/ Joy L. Bartholomew
 
Name:
Joy L. Bartholomew
 
Title:
Senior Vice President

 
 
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BANK OF AMERICA, N.A., as a Lender,
L/C Issuer and Swing Line Lender
       
By:
/s/ Joy L. Bartholomew
 
Name:
Joy L. Bartholomew
 
Title:
Senior Vice President

 
 
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UBS LOAN FINANCE, as a Lender
     
By:
/s/ Irja R. Otsa
 
Name:
Irja R. Otsa
 
Title:
Associate Director
     
By:
/s/ Mary E. Evans
 
Name:
Mary E. Evans
 
Title:
Associate Director

 

 
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WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Co-Documentation Agent and
as a Lender
     
By
:  /s/ Greg Campbell
 
Name:
Greg Campbell
 
Title:
Vice President

 
 
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COMERICA BANK, as Co-Documentation Agent
and as a Lender
     
By:
/s/ Catherine Young
 
Name:
Catherine Meister Young
 
Title:
Vice President

 
 
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SUNTRUST BANK, as a Lender
     
By:
/s/ J Haynes Gentry III
 
Name:
J Haynes Gentry, III
 
Title:
Vice President

 
 
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U.S. BANK NATIONAL ASSOCIATION, as a
Lender
       
By:
/s/ Matthew Kasper
 
Name:
Matthew Kasper
 
Title:
Assistant Vice-President

 
 
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CAPITAL ONE, N.A., as a Lender
   
By:
/s/ Mary Jo Hoch
 
Name:
Mary Jo Hoch
 
Title:
Senior Vice President

 
 
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GENERAL ELECTRIC CAPITAL
CORPORATION, as a Lender
   
By:
/s/ Maura Fitzgerald
 
Name:
Maura Fitzgerald
 
Title:
Vice President

 
 
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CONSENT OF GUARANTORS
 
Each Guarantor hereby consents and agrees to the amendment of the Credit
Agreement pursuant to this Amendment and further agrees that the Guaranty shall
remain in full force and effect and shall continue to be the legal, valid and
binding obligation of such Guarantor enforceable against it in accordance with
the terms thereof.
 

 
BROOKHOLLOW CORPORATION
 
BROOK HOLLOW PROPERTIES, INC.
 
BROOKHOLLOW OF ALEXANDRIA, INC.
 
BROOKHOLLOW OF VIRGINIA, INC.
 
SOUTHWESTERN FINANCIAL
 
CORPORATION
 
CREOLE CORPORATION
 
PARTIN LIMESTONE PRODUCTS, INC.
 
RIVERSIDE CEMENT HOLDINGS COMPANY
 
TXI AVIATION, INC.
 
TXI CEMENT COMPANY
 
TXI RIVERSIDE INC.
 
TXI TRANSPORTATION COMPANY
 
TXI CALIFORNIA INC.
 
PACIFIC CUSTOM MATERIALS, INC.
 
TXI POWER COMPANY
 
TEXAS INDUSTRIES HOLDINGS, LLC
 
TEXAS INDUSTRIES TRUST
 
TXI LLC
 
TXI OPERATING TRUST

 

 
By:
/s/ Sharon Ellis
 
Name:
Sharon Ellis
 
Title:
Treasurer

 

 
RIVERSIDE CEMENT COMPANY
       
By:
/s/ Sharon Ellis
 
Name:
Sharon Ellis
 
Title:
Treasurer

 
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TXI OPERATIONS, LP
       
By:
TXI Operating Trust, its general partner
       
By:
/s/ Sharon Ellis
 
Name:
Sharon Ellis
 
Title:
Treasurer

 
 
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