EX-10.41





	


EXHIBIT 10.41 



EXECUTION VERSION 



FIRST AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT



     THIS
FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment“), dated as of December 11, 2002, is entered into by
and among: 









	 	     (1)
BUILDING MATERIALS HOLDING CORPORATION, a Delaware corporation (“Holdings”); 






	 	     (2)
Each of the financial institutions listed in Schedule 2.01 to the Credit Agreement referred
to in Recital A below currently a party to such Credit Agreement (collectively, the
“Banks“); and






	 	     (3)
WELLS FARGO BANK, N.A., as administrative agent for the Banks (in such capacity, the
“Agent”).






	


RECITALS




     A.
Holdings, the Guarantors, the Banks and the Agent are parties to that certain Amended and
Restated Credit Agreement dated as of August 30, 2001 (the “Credit Agreement”). 



     B.
Holdings has requested the Banks and the Agent to amend the Credit Agreement in certain
respects. 



     C. The
Banks and the Agent are willing so to amend the Credit Agreement upon the terms and
subject to the conditions set forth below. 



AGREEMENT



     NOW,
THEREFORE, in consideration of the above recitals and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Holdings, the Banks and the Agent hereby agree as follows: 



     1.
Definitions, Interpretation. All capitalized terms defined above
and elsewhere in this Amendment shall be used herein as so defined. Unless
otherwise defined herein, all other capitalized terms used herein shall have the
respective meanings given to those terms in the Credit Agreement, as amended by
this Amendment. The rules of construction set forth in Article I of the
Credit Agreement shall, to the extent not inconsistent with the terms of
this Amendment, apply to this Amendment and are hereby incorporated by
reference. 



     2.
Amendments to Credit Agreement. Subject to the satisfaction of the conditions set forth
in Paragraph 4 below, the Credit Agreement is hereby amended as follows: 









	 	     (a)
Section 8.11 is hereby amended to read in its entirety as follows:






	 	     8.11
Restricted Payments. Holdings shall not, and shall not suffer or permit any Subsidiary
to, declare or make any dividend payment or other distribution of assets, properties,
cash, rights, obligations or securities on account of any shares of any class of its
capital stock (other than dividends or other distributions by a Subsidiary to Holdings),
or purchase, redeem or otherwise acquire for value any shares of its capital stock or any
warrants, rights or options to acquire such shares, now or hereafter outstanding; except
that Holdings may:






	 	     (a)
declare and make dividend payments or other distributions payable solely in its common
stock;






	


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	 	     (b)
declare and make dividend payments or other distributions payable in cash so long as no
Default has occurred and is continuing on the date of, or will result after giving effect
to, any such payment;






	 	     (c)
declare dividends required to be declared or paid pursuant to the terms of any securities
issued in a Permitted Equity Offering so long as the dividend provisions of such
securities were approved by the Majority Banks in writing prior to the issuance of such
securities;






	 	     (d)
purchase, redeem or otherwise acquire shares of its common stock or warrants or options
to acquire any such shares with the proceeds received from the substantially concurrent
issue of new shares of its common stock;






	 	     (e)
allow any Subsidiary that is not a Wholly-Owned Subsidiary to make distributions to its
owners (on a pro rata basis); and






	 	     (f)
purchase shares of Holdings’ common stock either (1) for deposit into the 401(k) trust
fund on behalf of Holdings’ employees by using funds obtained through employee payroll
deductions of such employees, or (2) to the extent necessary to provide discounts to
employees in connection with Holdings’ Employee Stock Purchase Plan.






	 	     (b)
Subsection 8.19(d) is hereby amended to read in its entirety as follows:






	 	     (d)
Holdings shall not permit as at the end of any fiscal quarter, measured on a consolidated
basis for Holdings and its Subsidiaries for the period of four fiscal quarters ended on
such date in accordance with GAAP, the ratio of (i) EBITA to (ii) the sum of (A) cash
Interest Expense, plus (B) cash taxes, plus (C) scheduled principal payments in respect
of Indebtedness, plus (D) cash dividend payments to be less than 1.20 to 1.00.






	

     3.
Representations and Warranties. Holdings hereby represents and
warrants to the Agent and the Banks that the following are true and correct on
the date of this Amendment and that, after giving effect to the amendments set
forth in Paragraph 2 above, the following will be true and correct on the
Amendment Effective Date (as defined below): 









	 	     (a)
The representations and warranties of Holdings and its Subsidiaries set forth in Article
VI of the Credit Agreement and in the other Loan Documents are true and correct;






	 	     (b)
No Default or Event of Default has occurred and is continuing;






	 	     (c)
No event or circumstance that has resulted or could reasonably be expected to result in a
Material Adverse Effect has occurred and is continuing; and






	 	     (d)
Each of the Loan Documents is in full force and effect.






	


(Without limiting the scope
of the term “Loan Documents,” Holdings expressly acknowledges in
making the representations and warranties set forth in this Paragraph 3
that, on and after the date hereof, such term includes this Amendment.) 



     4.
Amendment Effective Date. The amendments effected by Paragraph
2 above shall become effective on December 11, 2002 (the “Amendment
Effective Date”), subject to receipt by the Agent and the Banks on or
prior to the Amendment Effective Date of the 









	


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following, each in form and
substance satisfactory to the Agent, the Banks and their respective counsel:  









	 	     (a)
This Amendment duly executed by Holdings, the Majority Banks and the Agent;






	 	     (b)
A letter in the form of Exhibit A hereto, dated the Amendment Effective Date and duly
executed by each Guarantor;






	 	     (c)
A Certificate of the Secretary of Holdings, dated the Amendment Effective Date,
certifying that the Certificate of Incorporation, Bylaws and resolutions of the board of
directors of Holdings, in the form delivered to the Agent on the Effective Date, are in
full force and effect and have not been amended, supplemented, revoked or repealed since
such date;






	 	     (d)
Payment by Holdings of all accrued and unpaid fees, costs and expenses to the extent then
due and payable on the Amendment Effective Date, together with reasonable Attorney Costs
of Wells Fargo to the extent invoiced prior to or on the Amendment Effective Date, plussuch
additional amounts of reasonable Attorney Costs as shall constitute Wells Fargo’s
reasonable estimate of Attorney Costs incurred or to be incurred by it in connection with
this Amendment; and






	 	     (e)
Such other evidence as the Agent or any Bank may reasonably request to establish the
accuracy and completeness of the representations and warranties and the compliance with
the terms and conditions contained in this Amendment and the other Loan Documents.






	


     5.
Effect of this Amendment. On and after the Amendment Effective
Date, each reference in the Credit Agreement and the other Loan Documents to the
Credit Agreement shall mean the Credit Agreement as amended hereby. Except as
specifically amended above, (a) the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby ratified and
confirmed and (b) the execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any
right, power, or remedy of the Banks or the Agent, nor constitute a waiver of
any provision of the Credit Agreement or any other Loan Document. 



     6.
Miscellaneous. 









	 	     (a)
Counterparts. This Amendment may be executed in any number of identical
counterparts, any set of which signed by all the parties hereto shall be deemed to
constitute a complete, executed original for all purposes.






	 	     (b)
Headings. Headings in this Amendment are for convenience of reference only and are not
part of the substance hereof.






	 	     (c)
Governing Law. This Amendment shall be governed by and construed in accordance with the
laws of the State of California without reference to conflicts of law rules.







	


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     IN
WITNESS WHEREOF, Holdings, the Agent and the Banks have caused this Amendment to
be executed as of the day and year first above written. 









		BUILDING MATERIALS HOLDING CORPORATION


By: ______________________________________

Title:  ____________________________________


WELLS FARGO BANK, N.A.,
as Agent, Issuing Bank, Swingline Bank and a Bank


By: ______________________________________

Title:  ____________________________________


FIRST UNION NATIONAL BANK,
as Syndication Agent and a Bank

By: ______________________________________

Title:  ____________________________________


U.S. BANK NATIONAL ASSOCIATION


By: ______________________________________

Title:  ____________________________________


UNION BANK OF CALIFORNIA, N.A.


By: ______________________________________

Title:  ____________________________________






	


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		COMERICA WEST INCORPORATED


By: ______________________________________

Title:  ____________________________________



WASHINGTON MUTUAL BANK DBA WM BUSINESS BANK


By: ______________________________________

Title:  ____________________________________



BNP PARIBAS


By: ______________________________________

Title:  ____________________________________



HARRIS TRUST AND SAVINGS BANK


BBy: ______________________________________

Title:  ____________________________________



GUARANTY BANK


By: ______________________________________

Title:  ____________________________________



WEST COAST BANK


By: ______________________________________

Title:  ____________________________________ 









	


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		BANK LEUMI USA


By: ______________________________________

Title:  ____________________________________



LASALLE BUSINESS CREDIT, INC.


By: ______________________________________

Title:  ____________________________________



ISRAEL DISCOUNT BANK OF NEW YORK


By: ______________________________________

Title:  ____________________________________ 










	


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EXHIBIT A
GUARANTOR
CONSENT LETTER



December 11, 2002 



TO: WELLS FARGO BANK, N.A., 



     As the
Agent for the Banks under the Credit Agreement referred to below 



     1.
Reference is made to the following: 









	 	     (a)
The Amended and Restated Credit Agreement dated as of August 30, 2001 (the “Credit
Agreement”) among Building Materials Holding Corporation, a Delaware corporation (“Holdings”),
each of the undersigned in their capacity as guarantors (collectively, the “Guarantors”),
the financial institutions which are from time to time parties thereto (the “Banks”),
and Wells Fargo Bank, N.A., as agent for the Banks (the “Agent”); and






	 	     (b)
The First Amendment to Amended and Restated Credit Agreement dated as of December 11,
2002 (the “First Amendment”) among Holdings, the Banks and the Agent.






	


     2.
Each Guarantor hereby consents to the First Amendment. Each Guarantor expressly agrees
that such amendment shall in no way affect or alter the rights, duties, or obligations of
such Guarantor, the Banks or the Agent under the Guaranty as set forth in the Credit
Agreement.  



     3.
From and after the date hereof, the term “Credit Agreement“as used in the
Guaranty shall mean the Credit Agreement, as amended by the First Amendment.  



     4.
Each Guarantor’s consent to the First Amendment shall not be construed (i) to have
been required by the terms of the Guaranty or any other document, instrument or agreement
relating thereto or (ii) to require the consent of such Guarantor in connection with any
future amendment of the Credit Agreement or any other Loan Document.  








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     IN
WITNESS WHEREOF, each Guarantor has executed this Guarantor Consent Letter as of
the day and year first written above. 









		BMC WEST CORPORATION


By: __________________________________

Title: _________________________________



BMC WEST CORPORATION SOUTHCENTRAL


By: __________________________________

Title: _________________________________



BMCW SOUTHCENTRAL, L.P.

By: BMC WEST CORPORATION
SOUTHCENTRAL, its General Partner


By: __________________________________

Title: _________________________________



BMCW, LLC

By: __________________________________

Title: _________________________________



BMC CONSTRUCTION, INC. (formerly known as BMHC FRAMING , INC.)


By: __________________________________

Title: _________________________________







	


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		KNIPP BROTHERS INDUSTRIES, LLC

By: BMC Framing, Inc., its Managing Member

By: __________________________________

Title: _________________________________



KB INDUSTRIES LIMITED PARTNERSHIP

By: BUILDING MATERIALS HOLDING CORPORATION, its General Partner

By: __________________________________

Title: _________________________________








	


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OFFICER’S
CERTIFICATE



     The
undersigned hereby certify that the organizational documents including the
Certificate of Incorporation, Bylaws and Resolutions, including all amendments
thereto, of each of the following entities that were provided to the Agent and
the Lenders on the Effective Date of the Credit Agreement dated as of August 30,
2001, are in full force and effect and have not been revised or amended since
such date. 



     DATED
this 11th day of December, 2002. 









			BUILDING MATERIALS HOLDING CORPORATION



By:    _______________________________

          Paul S. Street, Senior Vice President, Chief

          Administrative Officer, General Counsel

          and Corporate Secretary








			BMC WEST CORPORATION



By:    _______________________________

          Paul S. Street, Senior Vice President, Chief

          Administrative Officer, General Counsel

          and Corporate Secretary









			BMC WEST CORPORATION SOUTHCENTRAL



By:    _______________________________

          Paul S. Street, Senior Vice President, Chief

          Administrative Officer, General Counsel

          and Corporate Secretary








			BMCW SOUTHCENTRAL, L.P.

                                                     By:   BMC WEST CORPORATION SOUTHCENTRAL,
         its General Partner



By:    _______________________________

          Paul S. Street, Senior Vice President, Chief

          Administrative Officer, General Counsel

          and Corporate Secretary








	


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			BMCW, LLC



By:    _______________________________

          Paul S. Street, Senior Vice President, Chief

          Administrative Officer, General Counsel

          and Corporate Secretary










			BMC CONSTRUCTION, INC.



By:    _______________________________

          Paul S. Street, Senior Vice President, Chief

          Administrative Officer, General Counsel

          and Corporate Secretary











	



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