Document:

exv4w1

 

Exhibit 4.1

THE CLOROX COMPANY,

Issuer

THE BANK OF NEW YORK TRUST COMPANY, N.A.,

Trustee

 

INDENTURE

Dated as of [      ], 2007

 

Senior Debt Securities

 

 

THE CLOROX COMPANY

     Reconciliation and tie showing the location in the Indenture dated as of [     ],
2007 of the provisions inserted pursuant to Sections 310 to 318(a), inclusive, of the Trust
Indenture Act of 1939, as amended.

	 	 	 	 	 
	Trust Indenture Act Section	 	Indenture Section
	 
	Section 310
	 	(a)(1)
	 	609 

	 	 	(a)(2)
	 	609 

	 	 	(a)(3)
	 	Not Applicable

	 	 	(a)(4)
	 	Not Applicable

	 	 	(b)
	 	608 and 610(d)

	 	 	(c)
	 	Not Applicable

	Section 311
	 	(a)
	 	613

	 	 	(b)
	 	613

	 	 	(c)
	 	Not Applicable

	Section 312
	 	(a)
	 	701 and 702(a)

	 	 	(b)
	 	702(b)

	 	 	(c)
	 	702(c)

	Section 313
	 	(a)
	 	703(a)

	 	 	(b)
	 	703(a)
and 703(b)

	 	 	(c)
	 	703(a) and 703(b)

	 	 	(d)
	 	703(a)
and 703 (c)

	Section 314
	 	(a)
	 	1009 

	 	 	(b)
	 	Not Applicable

	 	 	(c)(1)
	 	301(2)
and 404(f)

	 	 	(c)(2)
	 	404(f)

	 	 	(c)(3)
	 	Not Applicable

	 	 	(d)
	 	Not Applicable

	 	 	(e)
	 	404(f)

	Section 315
	 	(a)
	 	601(a)

	 	 	(b)
	 	602

	 	 	(c)
	 	601(b)

	 	 	(d)
	 	601(c)

	 	 	(d)(1)
	 	601(a)(1)

	 	 	(d)(2)
	 	601(c)(2)

	 	 	(d)(3)
	 	601(c)(3)

	 	 	(e)
	 	514 

	Section 316
	 	(a)(1)(A)
	 	512 

	 	 	(a)(1)(B)
	 	513 

	 	 	(a)(2)
	 	Not Applicable

	 	 	(b)
	 	508 

	Section 317
	 	(a)(1)
	 	503 

	 	 	(a)(2)
	 	504 

	 	 	(b)
	 	1003 

	Section 318
	 	(a)
	 	107 

 

			
	NOTE:	 	This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.

 i

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	PARTIES
	 	 	1	 
	 
	 	 	 	 
	RECITALS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 1 Definitions and Other Provisions of General Application
	 	 	1	 
	 
	 	 	 	 
	Section 101. Definitions
	 	 	1	 
	Section 102. Compliance Certificates and Opinions
	 	 	9	 
	Section 103. Form of Documents Delivered to Trustee
	 	 	9	 
	Section 104. Acts of Holders
	 	 	10	 
	Section 105. Notices, Etc., to Trustee and the Company
	 	 	11	 
	Section 106. Notice to Holders; Waiver
	 	 	12	 
	Section 107. Conflict with Trust Indenture Act
	 	 	12	 
	Section 108. Effect of Headings and Table of Contents
	 	 	13	 
	Section 109. Successors and Assigns
	 	 	13	 
	Section 110. Separability Clause
	 	 	13	 
	Section 111. Benefits of Indenture
	 	 	13	 
	Section 112. Governing Law
	 	 	13	 
	Section 113. Non-Business Day
	 	 	13	 
	Section 114. Immunity of Incorporators, Stockholders, Directors and Officers
	 	 	14	 
	Section 115. Qualification of Indenture
	 	 	14	 
	Section 116. Force Majeure
	 	 	14	 
	Section 117. Execution in Counterparts
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 2 Security Forms
	 	 	15	 
	 
	 	 	 	 
	Section 201. Forms of Securities
	 	 	15	 
	Section 202. Form of Trustee’s Certificate of Authentication
	 	 	15	 
	Section 203. Securities in Global Form
	 	 	15	 

ii

 

	 	 	 	 	 
	Section 204. CUSIP Numbers
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 3 The Securities
	 	 	16	 
	 
	 	 	 	 
	Section 301. Title; Payment and Terms
	 	 	16	 
	Section 302. Denominations
	 	 	19	 
	Section 303. Execution, Authentication, Delivery and Dating
	 	 	19	 
	Section 304. Temporary Securities and Exchange of Securities
	 	 	21	 
	Section 305. Registration, Registration of Transfer and Exchange
	 	 	21	 
	Section 306. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	23	 
	Section 307. Payment of Interest; Interest Rights Preserved
	 	 	24	 
	Section 308. Persons Deemed Owners
	 	 	25	 
	Section 309. Cancellation
	 	 	26	 
	Section 310. Computation of Interest
	 	 	26	 
	Section 311. Ranking
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 4 Satisfaction and Discharge
	 	 	26	 
	 
	 	 	 	 
	Section 401. Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	26	 
	Section 402. Legal Defeasance and Discharge
	 	 	26	 
	Section 403. Covenant Defeasance
	 	 	27	 
	Section 404. Conditions to Legal or Covenant Defeasance
	 	 	27	 
	Section 405. Satisfaction and Discharge of Indenture
	 	 	28	 
	Section 406. Survival of Certain Obligations
	 	 	29	 
	Section 407. Acknowledgment of Discharge by Trustee
	 	 	29	 
	Section 408. Application of Trust Moneys
	 	 	29	 
	Section 409. Repayment to the Company; Unclaimed Money
	 	 	30	 
	Section 410. Reinstatement
	 	 	30	 
	 
	 	 	 	 
	ARTICLE 5 Remedies
	 	 	30	 
	 
	 	 	 	 
	Section 501. Events of Default
	 	 	30	 

iii

 

	 	 	 	 	 
	Section 502. Acceleration of Maturity; Rescission and Annulment
	 	 	31	 
	Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	32	 
	Section 504. Trustee May File Proofs of Claim
	 	 	33	 
	Section 505. Trustee May Enforce Claims Without Possession of Securities
	 	 	34	 
	Section 506. Application of Money Collected
	 	 	34	 
	Section 507. Limitation on Suits
	 	 	34	 
	Section 508. Unconditional Right of Holders to Receive Principal (and Premium,
if any) and Interest, if any
	 	 	35	 
	 
	Section 509. Restoration of Rights and Remedies
	 	 	35	 
	Section 510. Rights and Remedies Cumulative
	 	 	35	 
	Section 511. Delay or Omission Not Waiver
	 	 	36	 
	Section 512. Control by Holders
	 	 	36	 
	Section 513. Waiver of Past Defaults
	 	 	36	 
	Section 514. Undertaking for Costs
	 	 	37	 
	Section 515. Waiver of Stay or Extension Laws
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 6 The Trustee
	 	 	37	 
	 
	 	 	 	 
	Section 601. Certain Duties and Responsibilities
	 	 	37	 
	Section 602. Notice of Defaults
	 	 	38	 
	Section 603. Certain Rights of Trustee
	 	 	38	 
	Section 604. Not Responsible for Recitals or Issuance of Securities
	 	 	40	 
	Section 605. May Hold Securities
	 	 	40	 
	Section 606. Money Held in Trust
	 	 	40	 
	Section 607. Compensation and Reimbursement
	 	 	40	 
	Section 608. Disqualification; Conflicting Interests
	 	 	41	 
	Section 609. Corporate Trustee Required; Different Trustees for Different Series; Eligibility
	 	 	41	 
	Section 610. Resignation and Removal; Appointment of Successor
	 	 	42	 
	Section 611. Acceptance of Appointment by Successor
	 	 	43	 

iv

 

	 	 	 	 	 
	Section 612. Merger, Conversion, Consolidation or Succession to Business
	 	 	44	 
	Section 613. Preferential Collection of Claims Against Company
	 	 	44	 
	Section 614. Authenticating Agents
	 	 	44	 
	 
	 	 	 	 
	ARTICLE 7 Holders’ Lists and Reports by Trustee and the Company
	 	 	46	 
	 
	 	 	 	 
	Section 701. Company to Furnish Trustee Names and Addresses of Holders
	 	 	46	 
	Section 702. Preservation of Information; Communications to Holders
	 	 	46	 
	Section 703. Reports by Trustee
	 	 	47	 
	 
	 	 	 	 
	ARTICLE 8 Consolidation, Merger, Conveyance, Transfer or Lease
	 	 	48	 
	 
	 	 	 	 
	Section 801. Company May Consolidate, Etc., Only on Certain Terms
	 	 	48	 
	Section 802. Successor Person Substituted
	 	 	48	 
	 
	 	 	 	 
	ARTICLE 9 Supplemental Indentures
	 	 	49	 
	 
	 	 	 	 
	Section 901. Consent, Waiver or Amendment Without Consent of Holders
	 	 	49	 
	Section 902. Supplemental Indentures With Consent of Holders
	 	 	50	 
	Section 903. Execution of Supplemental Indentures
	 	 	51	 
	Section 904. Effect of Supplemental Indentures
	 	 	51	 
	Section 905. Conformity With Trust Indenture Act
	 	 	51	 
	Section 906. Reference in Securities to Supplemental Indentures
	 	 	51	 
	 
	 	 	 	 
	ARTICLE 10 Covenants
	 	 	52	 
	 
	 	 	 	 
	Section 1001. Payment of Principal (and Premium, if any) and Interest, if any
	 	 	52	 
	Section 1002. Maintenance of Office or Agency
	 	 	52	 
	Section 1003. Money for Securities Payments To Be Held in Trust
	 	 	52	 
	Section 1004. Intentionally Omitted
	 	 	53	 
	Section 1005. Statements as to Compliance
	 	 	53	 
	Section 1006. Corporate Existence
	 	 	53	 
	Section 1007. Restrictions on Secured Debt
	 	 	54	 
	Section 1008. Restrictions on Sale and Leaseback Transactions
	 	 	56	 

v

 

	 	 	 	 	 
	Section 1009. Reports By Company
	 	 	57	 
	Section 1010. Statement by Officers as to Default
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 11 Redemption of Securities
	 	 	58	 
	 
	 	 	 	 
	Section 1101. Applicability of This Article
	 	 	58	 
	Section 1102. Election to Redeem; Notice to Trustee
	 	 	58	 
	Section 1103. Selection by Trustee of Securities to Be Redeemed
	 	 	58	 
	Section 1104. Notice of Redemption
	 	 	59	 
	Section 1105. Deposit of Redemption Price
	 	 	60	 
	Section 1106. Securities Payable on Redemption Date
	 	 	60	 
	Section 1107. Securities Redeemed in Part
	 	 	60	 
	Section 1108. Optional Redemption
	 	 	60	 
	 
	 	 	 	 
	ARTICLE 12 Sinking Funds
	 	 	61	 
	 
	 	 	 	 
	Section 1201. Applicability of this Article
	 	 	61	 
	Section 1202. Satisfaction of Sinking Fund Payments With Securities
	 	 	61	 
	Section 1203. Redemption of Securities for Sinking Fund
	 	 	61	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 

EXHIBIT A            Form of Note

vi

 

     INDENTURE dated as of [       ], 2007, between THE CLOROX COMPANY, a corporation duly
incorporated and existing under the laws of Delaware and having its principal executive office at
1221 Broadway, Oakland, California 94612 (hereinafter called the “Company”), and THE BANK OF NEW
YORK TRUST COMPANY, N.A., a national banking association, as Trustee (hereinafter called the
“Trustee”).

RECITALS OF THE COMPANY

     The Company deems it necessary to issue from time to time for its lawful purposes securities
(hereinafter called the “Securities”) evidencing its senior unsecured indebtedness and has duly
authorized the execution and delivery of this Indenture to provide for the issuance from time to
time of the Securities, unlimited as to principal amount, to have such titles, to bear such rates
of interest, to mature at such time or times and to have such other provisions as shall be fixed as
hereinafter provided.

     All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done, and the Company proposes to do all things necessary to make the
Securities, when executed by the Company and authenticated and delivered by the Trustee hereunder
and duly issued by the Company, the valid obligations of the Company as hereinafter provided.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or series thereof, as follows:

ARTICLE 1

Definitions and Other Provisions of General Application

Section 101. Definitions.

     For all purposes of this Indenture and all of the Securities issued hereunder, except as
otherwise expressly provided or unless the context otherwise requires:

    (1) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

    (2) all other terms used herein which are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;

    (3) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles in the United States, and
the term “generally accepted accounting principles” with respect to any computation required
or permitted hereunder shall mean such accounting principles as are generally accepted in
the United States at the date or time of such computation; and

 

 

    (4) the words “herein”, “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision.

     Certain terms, used principally in Article Three and Article Six, are defined in those
Articles.

     “Act”, when used with respect to any Holder, has the meaning specified in Section 104.

     “Affiliate” means, with respect to a specified Person, any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, “control”, when used with respect to any specified Person,
means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

     “Attributable Debt” in respect of any Sale and Leaseback Transaction means, at the date of
determination, the present value (discounted at the rate of interest implicit in the terms of the
lease) of the obligation of the lessee for net rental payments during the remaining term of the
lease (including any period for which such lease has been extended or may, at the option of the
lessor, be extended). “Net rental payments” under any lease for any period means the sum of the
rental and other payments required to be paid in such period by the lessee thereunder, excluding
any amounts required to be paid by such lessee (whether or not designated as rental or additional
rental payments) on account of maintenance and repairs, insurance, taxes, assessments, water rates
or similar charges required to be paid by such lessee thereunder or any amounts required to be paid
by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, insurance,
taxes, assessments, water rates or similar charges.

     “Authenticating Agent” means any Person authorized to authenticate and deliver the Securities
on behalf of the Trustee for the Securities of any series pursuant to Section 614.

     “Bankruptcy Law” means Title 11, U.S. Code or any similar federal, state or foreign law for
the relief of debtors.

     “Board of Directors” means, when used with reference to the Company, either the board of
directors or any duly authorized committee of that board or any director or directors and/or
officer or officers to whom that board or committee shall have duly delegated its authority, of the
Company.

     “Board Resolution” means, when used with reference to the Company, (1) a copy of a resolution
certified by the Secretary or an Assistant Secretary of the Company, as the case may be, to have
been duly adopted by its Board of Directors and to be in full force and effect on the date of such
certification, or (2) a certificate signed by the director or directors or officer or officers to
whom the Board of Directors of the Company shall have duly delegated its authority, and delivered
to the Trustee for the Securities of any series.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on
which banking institutions in the Place of Payment are authorized or obligated by law to close.

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including any preferred stock and limited liability or partnership interests
(whether general or limited), but excluding any debt securities convertible into such equity.

-2-

 

     “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act, or if at any time after the execution of this Indenture such
Commission is not existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties on such date.

     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor corporation shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor corporation.

     “Company Request” and “Company Order” mean a written request or order signed in the name of
the Company, as the case may be by (1) the Chairman of the Board, a Vice Chairman of the Board, the
President or a Vice President and by the Chief Financial Officer, the Treasurer, an Assistant
Treasurer, the Controller, an Assistant Controller, the Secretary or an Assistant Secretary of the
Company, as the case may be, or (2) any two Persons designated in a Company Order previously
delivered to the Trustee for the Securities of any series by any two of the foregoing officers and
delivered to the Trustee for the Securities of any series.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the
Securities of a series that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining terms of the Securities of such series.

     “Comparable Treasury Price” means, with respect to any Redemption Date (1) the average of the
bid and the asked prices for the Comparable Treasury Issue, expressed as a percentage of its
principal amount, at 4:00 p.m. on the third Business Day preceding that Redemption Date, as set
forth on “Telerate Page 500,” or such other page as may replace Telerate Page 500, or (2) if
Telerate Page 500, or any successor page, is not displayed or does not contain bid and/or asked
prices for the Comparable Treasury Issue at that time, the average of the Reference Treasury Dealer
Quotations obtained by the Company for that redemption date, after excluding the highest and lowest
of such Reference Treasury Dealer Quotations, or, if the Company is unable to obtain at least four
such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations
obtained by the Company.

     “Consolidated Net Tangible Assets” means, at the date of determination, the aggregate amount
of assets (less applicable reserves and other properly deductible items) after deducting therefrom
(a) all current liabilities (excluding any indebtedness for money borrowed having a maturity of
less than 12 months from the date of the then most recent consolidated balance sheet of the Company
publicly available but which by its terms is renewable or extendible beyond 12 months from such
date at the option of the borrower) and (b) all goodwill, trade names, patents, unamortized debt
discount and expense and any other like intangibles, all as set forth on the then most recent
consolidated balance sheet of the Company publicly available and computed in accordance with
generally accepted accounting principles.

     “Continuing Director” means, as of any date of determination, any member of the Board of
Directors of the Company who (1) was a member of such Board of Directors on the date of issue of
the Securities of a series; or (2) was nominated for election or elected to such Board of Directors
with the approval of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election.

     “Corporate Trust Office” means the designated office of the Trustee for the Securities of any
series at which at any particular time its corporate trust business shall be administered, which
office of The Bank of New York Trust Company, N.A., at the date of the execution of this Indenture,
is located at

-3-

 

100 South Flower Street, Suite 500, Los Angeles, California 90017, Attention: Corporate Trust
Administration, or such other address as the Trustee may designate from time to time by notice to
the Holders and the Company, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by notice to the
Holders and the Company).

     “corporation” includes corporations, limited liability companies, associations, companies and
business trusts.

     “Covenant Defeasance” has the meaning specified in Section 403.

     “Currency Determination Agent” means, with respect to the Securities of any series, unless
otherwise specified in the Securities of any series, a New York Clearing House bank designated
pursuant to Section 301.

     “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

     “Debt” has the meaning specified in Section 1007.

     “Defaulted Interest” has the meaning specified in Section 307.

     “Depositary” means, with respect to the Securities of any series issuable or issued in the
form of a Global Security, the Person designated as Depositary by the Company pursuant to Section
301 until a successor Depositary shall have become such pursuant to the applicable provisions of
this Indenture, and thereafter “Depositary” shall mean or include each Person who is then a
Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as used
with respect to the Securities of any such series shall mean the Depositary with respect to the
Securities of that series.

     “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible or for which it is exchangeable), or upon the happening of
any event:

	 	•	 	matures; or
	 
	 	•	 	is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise; or
	 
	 	•	 	is redeemable at the option of the holder of the Capital Stock,

in whole or in part, on or prior to the date that is 91 days after the date on which the Securities
of a series mature.

     “Dollars” and the sign “$” mean the currency of the United States of America as at the time of
payment is legal tender for the payment of public and private debts.

     “Event of Default” has the meaning specified in Section 501.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, as in force at the date
as of which this Indenture was executed; provided, however, that in the event the Securities
Exchange Act of 1934 is amended after such date, “Exchange Act” means, to the extent required by
any such amendment, the Securities Exchange Act of 1934 as so amended.

-4-

 

     “Expiration Date” has the meaning specified in Section 104.

     “Funded Debt” means Debt which by its terms matures at or is extendible or renewable at the
option of the obligor to a date more than 12 months after the date of the creation of such Debt.

     “Global Exchange Agent” has the meaning specified in Section 304.

     “Global Securities” means the Securities in global form.

     “Government Obligations” means securities which are direct obligations of, or obligations
guaranteed by, the United States of America for the payment of which guarantees or obligations the
full faith and credit of the United States is pledged.

     “Holder” means, when used with respect to any Security, the Person in whose name a Security is
registered in the Security Register.

     “Identifying Numbers” has the meaning specified in Section 204.

     “Indebtedness” means, with respect to any Person (without duplication): (1) any liability of
that Person (A) for borrowed money, or under any reimbursement obligation relating to a letter of
credit or similar instruments (other than reimbursement obligations with respect to letters of
credit securing obligations (other than obligations described in (A), (B), (C) or (D)) entered into
in the ordinary course of business of such Person to the extent such letters of credit are not
drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later than the third
Business Day following receipt by such Person of a demand for reimbursement following payment of
the letter of credit) ; (B) evidenced by a bond, note, debenture or similar instrument; (C) to pay
the deferred purchase price of property or services, except trade accounts payable arising in the
ordinary course of business; or (D) for the payment of money relating to any obligations under any
capital lease of real or personal property which has been recorded as a capitalized lease
obligation; (2) any liability of others described in the preceding clause (1) that the Person has
guaranteed or that is otherwise its legal liability or which is secured by a lien on that Person’s
Property; and (3) any amendment, supplement, modification, deferral, renewal, extension or
refunding of any liability of the types referred to in clauses (1) or (2) above.

     “Indenture” means this instrument as it may from time to time be supplemented or amended by
one or more indentures supplemental hereto entered into pursuant to the applicable provisions
hereof, including for all purposes, the provisions of the Trust Indenture Act that are deemed to be
part of and govern this Indenture, and shall also include the terms of a particular series of the
Securities established as contemplated by Section 301.

     “Independent Investment Banker” means either J.P. Morgan Securities Inc., Citigroup Global
Markets Inc. or Goldman, Sachs & Co., as selected by the Company or, if all such firms are
unwilling or unable to select the applicable Comparable Treasury Issue, an independent investment
banking institution of national standing appointed by the Company.

     “Interest Payment Date” means, when used with respect to any Security, the Stated Maturity of
an installment of interest on such Security.

     “Issue Date” means the date on which the Securities of a particular series are originally
issued under this Indenture.

     “Legal Defeasance” has the meaning specified in Section 402.

-5-

 

     “Lien” or “Liens” has the meaning specified in Section 1007.

     “Maturity” means, when used with respect to any Security, the date on which the principal of
that Security becomes due and payable as therein or herein provided, whether at the Stated Maturity
or by declaration of acceleration, call for redemption, request for redemption, repayment at the
option of the holder, pursuant to any sinking fund or otherwise.

     “Notice of Default” has the meaning specified in Section 501(3).

     “Officers’ Certificate” means, when used with reference to the Company, a certificate signed
by (i) the Chairman of the Board, a Vice Chairman of the Board, the Chief Executive Officer, the
President or a Vice President (any reference herein to a Vice President of the Company, as the case
may be, shall be deemed to include any Vice President of the Company, as the case may be, whether
or not designated by a number or a word or words added before or after the title “Vice President”),
and (ii) the Chief Financial Officer, the Treasurer, an Assistant Treasurer, the Controller, an
Assistant Controller, the Secretary or an Assistant Secretary of the Company, as the case may be,
and delivered to the Trustee for the Securities of any series.

     “Opinion of Counsel” means a written opinion of counsel, who may (except as otherwise
expressly provided in this Indenture) be an employee of or counsel to the Company or may be other
counsel satisfactory to the Trustee for the Securities of any series.

     “Outstanding” means, when used with respect to the Securities, as of the date of
determination, all of the Securities theretofore authenticated and delivered under this Indenture,
except:

     (1) The Securities theretofore cancelled by the Trustee for such Securities or
delivered to such Trustee for cancellation;

     (2) The Securities or portions thereof for whose payment or redemption money in the
necessary amount and in the required currency or currency unit has been theretofore
deposited with the Trustee for such Securities or any Paying Agent (other than the Company
or any other obligor upon the Securities) in trust or set aside and segregated in trust by
the Company or any other obligor upon the Securities (if the Company or any other obligor
upon the Securities shall act as its own Paying Agent) for the Holders of such Securities;
provided, however, that, if such Securities or portions thereof are to be redeemed, notice
of such redemption has been duly given pursuant to this Indenture, or provision therefor
satisfactory to such Trustee has been made; and

     (3) The Securities which have been paid pursuant to Section 306 or in exchange for or
in lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have been
presented proof satisfactory to the Trustee for such Securities that any such Securities are
held by a bona fide holder in due course;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder or are present at a meeting of Holders for quorum purposes, any Securities owned
by the Company or any other obligor upon the Securities or any Affiliate of the Company or such
other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee for such Securities shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only the Securities which a
Responsible Officer of such Trustee actually knows to be so owned shall be so disregarded. Any
Securities so owned which have been

-6-

 

pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction
of such Trustee that the pledgee has the right so to act with respect to such Securities and is not
the Company or any other obligor upon the Securities or any Affiliate of the Company or of such
other obligor. Upon the written request of the Trustee, the Company shall furnish to the Trustee
promptly an Officers’ Certificate listing and identifying all of the Securities, if any, known by
the Company to be owned by or held by or for the account of the Company, or any other obligor on
the Securities or any Affiliate of the Company or such obligor, and subject to the provisions of
Section 601, the Trustee shall be entitled to accept such Officers’ Certificate as conclusive
evidence of the facts therein set forth and of the fact that all of the Securities not listed
therein are Outstanding for the purpose of any such determination.

     “Paying Agent” means The Bank of New York Trust Company, N.A. or any other Person authorized
by the Company to pay the principal of (and premium, if any) or interest, if any, on any Securities
of any series on behalf of the Company.

     “Person” means any individual, corporation, partnership, joint venture, association, joint
stock company, trust, unincorporated organization, limited liability company, government or any
agency or political subdivision thereof or any other entity, and includes a “person” as used in
Section 13(d)(3) of the Exchange Act.

     “Place of Payment” means, when used with respect to the Securities of any particular series,
the place or places where the principal of (and premium, if any) and interest, if any, on the
Securities of that series are payable, as contemplated by Sections 301 and 1002.

     “Principal Property” means any plant, office facility, warehouse, distribution center or
equipment located within the United States of America (other than its territories or possessions)
and owned by the Company or any Subsidiary, the gross book value (without deduction of any
depreciation reserves) of which on the date as of which the determination is being made exceeds 1%
of Consolidated Net Tangible Assets of the Company, except any such property which the Board of
Directors, in its good faith opinion, determines is not of material importance to the business
conducted by the Company and its Subsidiaries, taken as a whole, as evidenced by a Board
Resolution.

     “Property” means any asset, revenue or any other property, including Capital Stock, whether
tangible or intangible, real or personal, including, without limitation, any right to receive
income.

     “Redemption Date” means, when used with respect to any Security to be redeemed in whole or in
part, the date fixed for such redemption by or pursuant to this Indenture.

     “Redemption Price” means, when used with respect to any Security to be redeemed, the price at
which it is to be redeemed pursuant to the terms of this Indenture or in any Security issued
hereunder.

     “Reference
Treasury Dealer” means J.P. Morgan Securities Inc.,
Citigroup Global Markets Inc. and
Goldman, Sachs & Co. and their respective successors and at least one other primary U.S. government
securities dealer in New York City (each, a “Primary Treasury Dealer”) selected by the Independent
Investment Banker; provided, however, that if any of the foregoing shall cease to be a Primary
Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date for the Securities of a series, an average, as determined by the Company,
of the bid and asked prices for the Comparable Treasury Issue for the Securities of such series,
expressed in each case as a percentage of its principal amount, quoted in writing to the Trustee
for the Security of a

-7-

 

series by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third
business day preceding the Redemption Date.

     “Regular Record Date” means, with respect to the interest payable on any Interest Payment Date
on the Securities of any series, unless otherwise provided pursuant to Section 301, the date that
is fifteen days next preceding such Interest Payment Date, whether or not a Business Day.

     “Responsible Officer” means, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who
customarily performs functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred because of such
person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

     “Restricted Subsidiary” means any Subsidiary of the Company which owns or leases Principal
Property.

     “Securities” means securities evidencing unsecured indebtedness of the Company authenticated
and delivered under this Indenture.

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
305.

     “series” of the Securities means all of the Securities denoted as part of the same series
authorized by or pursuant to a particular Board Resolution or Officers’ Certificate.

     “Special Record Date” means, with respect to the payment of any Defaulted Interest on the
Securities of any series, a date fixed by the Trustee for such series pursuant to Section 307.

     “Stated Maturity” means, when used with respect to any Security or any installment of
principal thereof or interest thereon, the date specified in such Security as the fixed date on
which the principal of such Security or such installment of principal or interest is due and
payable.

     “Subsidiary” means, with respect to any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of shares of capital stock
or other interests (including partnership interests) entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one or more
Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

     “Treasury Yield” means, with respect to any Redemption Date applicable to the Securities of a
series, the rate per annum equal to the semiannual equivalent yield to maturity, computed as of the
third Business Day immediately preceding the Redemption Date, of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue, expressed as a percentage of its principal
amount, equal to the applicable Comparable Treasury Price for the Redemption Date.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended by the Trust Indenture
Reform Act of 1990, as in force at the date as of which this Indenture was executed except as
provided in Section 905; provided, however, that in the event the Trust Indenture Act is amended
after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the
Trust Indenture Act of 1939 as so amended.

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     “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument or
otherwise named as the “Trustee” with respect to a particular series of Securities and, in each
case, subject to the provisions of Article Six hereof, shall also include its successors and
assigns as Trustee hereunder. If there shall be at one time more than one Trustee hereunder,
“Trustee” shall mean each such Trustee and shall apply to each such Trustee only with respect to
those series of the Securities with respect to which it is serving as Trustee.

     “United States” means, unless otherwise specified with respect to the Securities of any
series, the United States of America (including the states and the District of Columbia), its
territories, its possessions (which include, at the date of this Indenture, Puerto Rico, the U.S.
Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands) and other areas
subject to its jurisdiction.

     “Voting Stock” of a Person means all classes of Capital Stock of such Person then outstanding
and normally entitled to vote in the election of directors, managers or trustees, as applicable.

Section 102. Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee for any series of the Securities
to take any action under any provision of this Indenture or any supplement hereto, the Company
shall furnish to such Trustee an Officers’ Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been complied with, and an
Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or opinion need be
furnished.

     Every certificate (other than certificates provided pursuant to Section 1005) or opinion with
respect to compliance with a condition or covenant provided for in this Indenture shall include:

     (1) a statement that each individual signing such certificate or opinion has read such
condition or covenant and the definitions herein relating thereto;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (3) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such condition or covenant has been complied with; and

     (4) a statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.

Section 103. Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

-9-

 

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon an Opinion of Counsel, or a certificate or representations by, counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the opinion,
certificate or representations with respect to matters upon which his certificate or opinion is
based are erroneous.

     Any such Opinion of Counsel or certificate or representations may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company stating that the information with respect to such factual matters is in the
possession of the Company unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such matters are
erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

Section 104. Acts of Holders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing. Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments or record or both are delivered to the Trustee for
the appropriate series of the Securities and, where it is hereby expressly required, to the
Company. Such instrument or instruments and any such record (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such
instrument or instruments or so voting at any such meeting. Proof of execution of any such
instrument or of a writing appointing any such agent, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and (subject to Section 601)
conclusive in favor of the Trustee for the appropriate series of the Securities and the Company and
any agent of such Trustee or the Company, if made in the manner provided in this Section.

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Persons entitled to consent to any indenture supplemental hereto. If a record date
is fixed for such purpose, the Holders on such record date or their duly designated proxies, and
only such Persons, shall be entitled to consent to such supplemental indenture, whether or not such
Holders remain Holders after such record date; provided that unless such consent shall have become
effective by virtue of the requisite percentage having been obtained prior to the date which is 90
days after such record date, any such consent previously given shall automatically and without
further action by any Holder be canceled and of no further effect.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by the certificate of any notary public
or other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by an officer of a corporation or association or a member of a partnership, or an official of a
public or governmental body, on behalf of such corporation, association, partnership or public or
governmental body or by a fiduciary, such certificate or affidavit shall also constitute sufficient
proof of his authority.

     (c) The fact and date of the execution by any Person of any such instrument or writing, or the
authority of the Person executing the same, may also be proved in any other manner which the
Trustee for

-10-

 

the appropriate series of the Securities deems reasonably sufficient, and in accordance with
such reasonable rules as the Trustee may determine.

     (d) The principal amount and serial numbers of the Securities held by any Person, and the date
of holding the same, shall be proved by the Security Register.

     (e) The Trustee may set any day as a record date for the purpose of determining the Holders of
the Outstanding Securities of any series entitled to join in the giving or making of (i) any Notice
of Default, (ii) any declaration of acceleration referred to in Section 502, (iii) any request to
institute proceedings referred to in Section 507(2) or (iv) any direction referred to in Section
512, in each case with respect to the Securities of such series. If any record date is set
pursuant to this paragraph, the Holders of the Outstanding Securities of such series on such record
date, and no other Holders, shall be entitled to join in such notice, declaration, request or
direction, whether or not such Holders remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by
Holders of the requisite principal amount of the Outstanding Securities of such series on such
record date. Nothing in this paragraph shall be construed to prevent the Trustee from setting a
new record date for any action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with no action by any
Person be cancelled and of no effect), and nothing in this paragraph shall be construed to render
ineffective any action taken by Holders of the requisite principal amount of the Outstanding
Securities of the relevant series on the date such action is taken. Promptly after any record date
is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause notice of
such record date, the proposed action by Holders and the applicable Expiration Date to be given to
the Company in writing and to each Holder of the Securities of the relevant series in the manner
set forth in Section 106.

     With respect to any record date set pursuant to this Section, the party hereto which sets such
record date may designate any day as the “Expiration Date” and from time to time may change the
Expiration Date to any earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the other party hereto in writing, and to
each Holder of the Securities of the relevant series in the manner set forth in Section 106, on or
prior to the existing Expiration Date. If an Expiration Date is not designated with respect to any
record date set pursuant to this Section, the party hereto which set such record date shall be
deemed to have initially designated the 10th day after such record date as the
Expiration Date with respect thereto, subject to its right to change the Expiration Date as
provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than
the 80th day after the applicable record date.

     (f) Any request, demand, authorization, direction, notice, consent, waiver or other action by
the Holder of any Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee for such
Securities, the Security Registrar, any Paying Agent or the Company in reliance thereon, whether or
not notation of such action is made upon such Security.

Section 105. Notices, Etc., to Trustee and the Company.

     Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other documents provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,

     (1) the Trustee for a series of the Securities by any Holder or by the Company shall be
sufficient for every purpose hereunder if made, given, furnished or filed in writing to or
with such Trustee at its Corporate Trust Office, Attention: Corporate Trust Administration
Re: The

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Clorox Company, or if sent by facsimile transmission, to a facsimile number provided by
the Trustee, with a copy mailed, first class postage prepaid to the Trustee addressed to it
as provided above, or

     (2) the Company by such Trustee or by any Holder shall be sufficient for every purpose
hereunder (except as provided in paragraph (3) of Section 501) if furnished in writing and
mailed, first class postage prepaid, addressed in the case of the Company to it, to the
attention of the Chief Financial Officer, at the address of its principal office specified
in the first paragraph of this instrument or at any other address previously furnished in
writing to such Trustee by the Company, or if sent by facsimile transmission, to a facsimile
number provided to the Trustee by the Company, with a copy mailed, first class postage
prepaid, to the Company addressed to it as provided above.

     The Trustee agrees to accept and act upon facsimile transmission of written instructions
and/or directions pursuant to this Indenture given by the Company, provided, however that: (1) the
Company, subsequent to such facsimile transmission of written instructions and/or directions, shall
provide the originally executed instructions and/or directions to the Trustee in a timely manner
and (2) such originally executed instructions and/or directions shall be signed by an authorized
Officer of the Company.

Section 106. Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) to Holders of the Securities if in
writing and mailed, first class postage prepaid, to each Holder affected by such event, at his or
her address as it appears in the Security Register, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice.

     In any case where notice to Holders of the Securities is given by mail, neither the failure to
mail such notice, nor any defect in any notice so mailed, to any particular Holder of a Security
shall affect the sufficiency of such notice with respect to other Holders of the Securities given
as provided herein. Any notice mailed in the manner prescribed by this Indenture shall be
conclusively deemed to have been given whether or not received by any particular Holder. In case by
reason of the suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice to Holders of the Securities by mail, then such notification as
shall be made with the reasonable approval of the Trustee for such Securities shall constitute a
sufficient notification for every purpose hereunder.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee for such Securities, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

Section 107. Conflict with Trust Indenture Act.

     Except as otherwise expressly provided herein, the Trust Indenture Act shall apply as a matter
of contract to this Indenture for purposes of interpretation, construction and defining the rights
and obligations hereunder, and this Indenture, the Company, and the Trustee shall be deemed for all
purposes hereof to be subject to and governed by the Trust Indenture Act. Except as otherwise
provided herein, if and to the extent that any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by any of Sections 310 to 317, inclusive, of the Trust Indenture
Act through operation of Section 318(c) thereof, such imposed duties shall control.

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     Whenever this Indenture refers to a provision of the Trust Indenture Act, that provision is
incorporated by reference in and made a part of this Indenture. The Indenture shall also include
those provisions of the Trust Indenture Act required to be included herein by the provisions of the
Trust Indenture Reform Act of 1990. The following Trust Indenture Act terms used in this Indenture
have the following meanings:

     “indenture securities” means the Securities;

     “indenture trustee” means the Trustee; and

     “obligor” on the Securities means the Company or any other obligor on the Securities.

     All other terms used in this Indenture that are defined in the Trust Indenture Act, defined by
Trust Indenture Act reference to another statute or defined by any SEC rule and not otherwise
defined herein shall have the meanings assigned to them therein.

Section 108. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

Section 109. Successors and Assigns.

     All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

Section 110. Separability Clause.

     In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

Section 111. Benefits of Indenture.

     Nothing in this Indenture or in the Securities, expressed or implied, shall give to any
Person, other than the parties hereto, any Paying Agent, any Security Registrar, an Authenticating
Agent and their successors hereunder and the Holders of the Securities, any benefit or any legal or
equitable right, remedy or claim under this Indenture.

Section 112. Governing Law.

     This Indenture and the Securities shall be governed by, and construed in accordance with, the
laws of the State of New York.

Section 113. Non-Business Day.

     Unless otherwise stated with respect to the Securities of any series, in any case where any
Interest Payment Date, Redemption Date or Stated Maturity of a Security of any particular series
shall not be a Business Day, then (notwithstanding any other provision of this Indenture or of the
Securities) payment of principal of (and premium, if any) and interest, if any, with respect to
such Security need not be made at such Place of Payment on such date, but may be made on the next
succeeding Business Day at such

-13-

 

Place of Payment with the same force and effect as if made on the Interest Payment Date or
Redemption Date, or at the Stated Maturity, provided that no interest shall accrue on the amount so
payable for the period from and after such Interest Payment Date, Redemption Date or Stated
Maturity, as the case may be.

Section 114. Immunity of Incorporators, Stockholders, Directors and Officers.

     No recourse shall be had for the payment of the principal of (and premium, if any), or the
interest, if any, on any Security, or for any claim based thereon, or upon any obligation, covenant
or agreement of this Indenture, against any incorporator, stockholder, director, officer or
employee, as such, past, present or future, of the Company or of any successor corporation, either
directly or indirectly through the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment of penalty or
otherwise; it being expressly agreed and understood that this Indenture and all the Securities of
each series are solely corporate obligations, and that no personal liability whatever shall attach
to, or is incurred by, any incorporator, stockholder, director, officer or employee, past, present
or future, of the Company or of any successor corporation, either directly or indirectly through
the Company or any successor corporation, because of the incurring of the indebtedness hereby
authorized or under or by reason of any of the obligations, covenants or agreements contained in
this Indenture or in any of the Securities, or to be implied herefrom or therefrom; and that all
such personal liability is hereby expressly released and waived as a condition of, and as part of
the consideration for, the execution of this Indenture and the issuance of the Securities.

Section 115. Qualification of Indenture.

     The Company shall qualify this Indenture under the Trust Indenture Act and shall pay all
reasonable costs and expenses (including attorneys’ fees and expenses for the Company and the
Trustee) incurred in connection therewith, including, but not limited to, costs and expenses of
qualification of the Indenture and the Securities and printing this Indenture and the Securities.
The Trustee shall be entitled to receive from the Company any such Officers’ Certificates, Opinions
of Counsel or other documentation as it may reasonably request in connection with any such
qualification of this Indenture under the Trust Indenture Act.

Section 116. Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

Section 117. Execution in Counterparts.

     This Indenture may be executed and delivered in any number of counterparts, each of which when
so executed and delivered shall be deemed to be an original, and all such counterparts shall
together constitute but one and the same instrument.

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ARTICLE 2

Security Forms

Section 201. Forms of Securities.

     The Securities, if any, of each series shall be in substantially the form of Exhibit A
hereto, with such appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture or any indenture supplemental hereto and may have such
letters, numbers or other marks of identification and such legends or endorsements placed thereon
as the Company may reasonably deem appropriate and as may be required to comply with any law, with
any rule or regulation made pursuant thereto, with any rules of any securities exchange, automated
quotation system or clearing agency or to conform to usage, as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their execution of such
Securities.

     The definitive Securities shall be printed, lithographed or engraved or produced by any
combination of these methods or may be produced in any other manner, all as determined by the
officers executing such Securities, as evidenced by their execution thereof.

     The terms and provisions contained in the Securities of any series shall constitute, and are
hereby expressly made, a part of this Indenture with respect to such series of the Securities, and
the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound hereby. However, to the extent any provision of any
Security of any series thereon conflicts with the express provisions of this Indenture, the
provisions of this Indenture shall govern and be controlling.

Section 202. Form of Trustee’s Certificate of Authentication.

     Subject to Section 614, the Certificate of Authentication on all of the Securities shall be in
substantially the following form:

     “This is one of the Securities of the series designated therein described in the
within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank Of New York Trust Company, N.A.,

as Trustee

 	 
	 	By  	 	 
	 	 	Authorized Signatory” 	 
	 	 	 	 
	 

Section 203. Securities in Global Form.

     If any Security of a series is issuable in global form, such Security may provide that it
shall represent the aggregate amount of the Outstanding Securities of such series from time to time
endorsed thereon and may also provide that the aggregate amount of the Outstanding Securities
represented thereby may from time to time be increased or reduced to reflect exchanges. Any
endorsement of a Security in global form to reflect the amount, or any increase or decrease in the
amount, of the Outstanding Securities represented thereby shall be made by the Trustee and in such
manner as shall be specified in such

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Security. Any instructions by the Company with respect to a Security in global form, after its
initial issuance, shall be in writing but need not comply with Section 102.

     Global Securities may be issued in registered form and in either temporary or permanent form.

     Any Security issued in global form shall bear the following legend:

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR THE SECURITIES IN CERTIFICATED FORM, THIS SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY (THE “DEPOSITARY”) TO A NOMINEE OF
THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITARY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF                      OR IN SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO                      OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF,                     , HAS AN INTEREST HEREIN.

Section 204. CUSIP Numbers.

     The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use) or
other identifying numbers (“Identifying Numbers”) and, if so, the Trustee shall use such
Identifying Numbers in notices of redemption as a convenience to Holders; provided that any such
notice may state that no representation is made as to the correctness of such Identifying Numbers
either as printed on the Securities or as contained in any notice of a redemption and that reliance
may be placed only on the other identifying numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the Identifying Numbers of which it becomes aware.
The Company shall promptly notify the Trustee in writing of any change in the CUSIP umbers.

ARTICLE 3

The Securities

Section 301. Title; Payment and Terms.

     The aggregate principal amount of the Securities which may be authenticated and delivered and
Outstanding under this Indenture is unlimited. The Securities may be issued up to the aggregate
principal amount of the Securities from time to time authorized by or pursuant to Board Resolutions
or an Officers’ Certificate of the Company.

     The Securities may be issued in one or more series, each of which shall be issued pursuant to
Board Resolutions or Officers’ Certificates of the Company. There shall be established in one or
more

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Board Resolutions or Officers’ Certificates or established in one or more supplemental
indentures hereto, prior to the issuance of the Securities of any series, all or any of the
following, as applicable (each of which, if so provided, may be determined from time to time by the
Company with respect to unissued Securities of that series and set forth in the Securities of that
series when issued from time to time):

     (1) the title of the Securities of that series (which shall distinguish the Securities
of that series from all other series of the Securities);

     (2) any limit upon the aggregate principal amount of the Securities of that series
which may be authenticated and delivered under this Indenture (except for the Securities
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of that series pursuant to Section 304, 305, 306, 906 or 1107) and
whether that series may be reopened for additional Securities of that series; in the event
that such series of the Securities may be reopened from time to time for issuance of
additional Securities of such series, the terms thereof shall indicate whether any such
additional Securities shall have the same terms as the prior Securities of such series or
whether the Company may establish additional or different terms with respect to such
additional Securities;

     (3) whether the Securities of that series are to be issuable in global or definitive
form or both and any restrictions on the exchange of one form of the Securities for another
and on the offer, sale and delivery of the Securities in either form;

     (4) the date or dates (or manner of determining the same) on which the principal of the
Securities of that series is payable;

     (5) the rate or rates (or the manner of calculation thereof) at which the Securities of
that series shall bear interest (if any), the date or dates from which such interest shall
accrue, the Interest Payment Dates on which such interest shall be payable (or manner of
determining the same) and the Regular Record Date for the interest payable on any Securities
on any Interest Payment Date;

     (6) the place or places where, subject to the provisions of Section 1002, the principal
of (and premium, if any) and interest, if any, on the Securities of that series shall be
payable, any Securities of that series may be surrendered for registration of transfer, any
Securities of that series may be surrendered for exchange, and notices and demands to or
upon the Company in respect of the Securities of that series and this Indenture may be
served;

     (7) the period or periods within which (or manner of determining the same), the price
or prices at which (or manner of determining the same), the currency or currency unit in
which, and the terms and conditions upon which the Securities of that series may be
redeemed, in whole or in part, at the option of the Company, and any remarketing
arrangements with respect to the Securities of that series;

     (8) the obligation, if any, of the Company to redeem, repay or purchase the Securities
of that series pursuant to any sinking fund or analogous provisions or at the option of a
Holder thereof, and the period or periods within which (or manner of determining the same),
the price or prices at which (or manner of determining the same), the currency or currency
unit in which, and the terms and conditions upon which, the Securities of that series shall
be redeemed or purchased, in whole or in part, pursuant to such obligation;

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     (9) if the currency in which the Securities of that series shall be issuable is
Dollars, the denominations in which any Securities of that series shall be issuable, if
other than denominations of $2,000 and any integral multiple of $1,000 in excess thereof;

     (10) if other than the principal amount thereof, the portion of the principal amount of
the Securities of that series which shall be payable upon a declaration of acceleration of
the Maturity thereof pursuant to Section 502;

     (11) the inapplicability of any Event of Default or covenant set forth in Article 10
hereof to the Securities of that series, or the applicability of any other Events of
Defaults or covenants in addition to the Events of Default or covenants set forth herein to
the Securities of that series;

     (12) if a Person other than The Bank of New York Trust Company, N.A. is to act as
Trustee for the Securities of that series, the name and location of the Corporate Trust
Office of such Trustee;

     (13) if other than Dollars, the currency or currency unit in which payment of the
principal of (and premium, if any) or interest, if any, on the Securities of that series
shall be made or in which the Securities of that series shall be denominated which, in each
instance, shall be acceptable to the Trustee, and the particular provisions applicable
thereto;

     (14) if the principal of (and premium, if any) and interest, if any, on the Securities
of that series are to be payable, at the election of the Company or a Holder thereof, in a
currency or currency unit other than that in which such Securities are denominated or stated
to be payable, the period or periods within which (including the Election Date), and the
terms and conditions upon which, such election may be made, and the time and manner of
determining the exchange rate between the currency or currency unit in which such Securities
are denominated or stated to be payable and the currency or currency unit in which such
Securities are to be so payable;

     (15) the designation of the original Currency Determination Agent, if any;

     (16) if other than as set forth in Article Four, provisions for the satisfaction and
discharge of this Indenture with respect to the Securities of that series;

     (17) the date as of which any Global Security representing the Outstanding Securities
of that series shall be dated if other than the date of original issuance of the first
Security of that series to be issued;

     (18) whether payment of any amount due under such Securities will be guaranteed by one
or more guarantors, including Subsidiaries of the Company; and

     (19) any other terms of the Securities of that series (which terms shall not be
inconsistent with the requirements of the Trust Indenture Act except as permitted by Section
901(8)).

     The terms of such Securities, as set forth above, may be determined by the Company from time
to time if so provided in or established pursuant to the authority granted in Board Resolutions or
an Officers’ Certificate. All of the Securities of any one series need not be issued at the same
time, and unless otherwise provided, a series may be reopened for issuance of additional Securities
of such series.

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     Prior to the delivery of a Security of any series in any such form to the Trustee for the
Securities of such series for authentication, the Company shall deliver to such Trustee the
following:

     (1) The Board Resolutions or Officers’ Certificate of the Company by or pursuant to
which such form of the Security have been approved and, if applicable, the supplemental
indenture by or pursuant to which such form of the Security has been approved; and

     (2) An Officers’ Certificate of the Company dated the date such Certificate is
delivered to such Trustee satisfying the requirements of Sections 102 and 103, and stating
that all conditions precedent provided for in this Indenture relating to the authentication
and delivery of the Securities in such forms have been complied with.

Section 302. Denominations.

     Unless otherwise provided with respect to any series of the Securities as contemplated by
Section 301, any Securities of a series other than the Securities issued in global form (which may
be of any denomination) shall be issuable in denominations of $2,000 and any integral multiple of
$1,000 in excess thereof.

Section 303. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by its Chairman of the Board, a Vice
Chairman of the Board, or its President, Chief Executive Officer, Chief Financial Officer or one of
its Vice Presidents. The signature of any of these officers on the Securities may be manual or
facsimile.

     The Securities bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Company shall bind the Company, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver the Securities of any series, executed by the Company to the Trustee for the
Securities of such series for authentication, together with a Company Order for the authentication
and delivery of such Securities, and such Trustee, in accordance with the Company Order, shall
authenticate and deliver such Securities. If any Security shall be represented by a permanent
Global Security, then, for purposes of this Section and Section 304, the notation of a beneficial
owner’s interest therein upon original issuance of such Security or upon exchange of a portion of a
temporary Global Security shall be deemed to have been delivered in connection with the original
issuance of such beneficial owner’s interest in such permanent Global Security. If all the
Securities of any one series are not to be issued at one time and if a Board Resolution or
Officers’ Certificate relating to such Securities shall so permit, such Company Order may set forth
procedures acceptable to the Trustee for the issuance of such Securities, including, without
limitation, procedures with respect to interest rate, Stated Maturity, date of issuance and date
from which interest, if any, shall accrue.

     If the form or terms of the Securities of the series have been established by or pursuant to
one or more Board Resolutions or Officers’ Certificates as permitted by Sections 201 and 301, in
authenticating such securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and (subject to Section
601) shall be fully protected in relying upon, an Opinion of Counsel stating,

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     (1) If the form of such Securities has been established by or pursuant to one or more Board
Resolutions or Officers’ Certificates as permitted by Section 201, that such form has been
established in conformity with the provisions of this Indenture;

     (2) if the terms of such Securities have been established by or pursuant to one or more Board
Resolutions or Officers’ Certificates as permitted by Section 301, that such terms have been
established in conformity with the provisions of this Indenture; and

     (3) that such Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the Company enforceable in accordance with
their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’ rights and to general
equity principles.

     If such form or terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect
the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise
in a manner which is not reasonably acceptable to the Trustee.

     Notwithstanding any contrary provision herein, if all Securities of a series are not to be
originally issued at one time, it shall not be necessary to deliver the Board Resolution, Officers’
Certificate and Opinion of Counsel otherwise required pursuant to Sections 102 and 301 at or prior
to the time of authentication of each Security of such series if such documents are delivered at or
prior to the authentication upon original issuance of the first Security of such series to be
issued.

     Except as specified pursuant to Section 301, each Security shall be dated the date of its
authentication.

     No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein manually executed by the Trustee for such Security or on its behalf
pursuant to Section 614, and such certificate upon any Security shall be conclusive evidence, and
the only evidence, that such Security has been duly authenticated and delivered hereunder.

     In case any Securities shall have been authenticated, but not delivered, by the Trustee or the
Authenticating Agent for such series then in office, any successor by merger, conversion or
consolidation to such Trustee, or any successor Authenticating Agent, as the case may be, may adopt
such authentication and deliver the Securities so authenticated with the same effect as if such
successor Trustee or successor Authenticating Agent had itself authenticated such Securities.

     Each Depositary designated pursuant to Section 301 for a Global Security in registered form
must, at the time of its designation and at all times while it serves as Depositary, be a clearing
agency registered under the Exchange Act and any other applicable statute or regulation.

     The Trustee shall have the right to decline to authenticate and deliver any Securities under
this Section if the Trustee, being advised by counsel, determines that such action may not lawfully
be taken or if the Trustee in good faith shall determine that such action would expose the Trustee
to personal liability to existing Holders.

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Section 304. Temporary Securities and Exchange of Securities.

     Pending the preparation of definitive Securities of any particular series, the Company may
execute, and upon Company Order the Trustee for the Securities of such series shall authenticate
and deliver, in the manner specified in Section 303, temporary Securities which are printed,
lithographed, typewritten, photocopied or otherwise produced, in any denomination, with like terms
and conditions as the definitive Securities of like series in lieu of which they are issued in
registered form, and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Securities may determine, as evidenced by their execution
of such Securities. Any such temporary Securities may be in global form, representing such of the
Outstanding Securities of such series as shall be specified therein.

     Except in the case of temporary Securities in global form (which shall be exchanged only in
accordance with the provisions of the following paragraphs or as otherwise provided in or pursuant
to a Board Resolution, Officers’ Certificate or a Supplemental Indenture), if temporary Securities
of any particular series are issued, the Company will cause definitive Securities of that series to
be prepared without unreasonable delay. After the preparation of such definitive Securities, the
temporary Securities of such series shall be exchangeable for such definitive Securities of a like
Stated Maturity and with like terms and provisions upon surrender of the temporary Securities of
such series at the office or agency of the Company in a Place of Payment for that series, without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities of
any particular series, the Company shall execute and (in accordance with a Company Order delivered
at or prior to the authentication of the first definitive Security of such series) the Trustee for
the Securities of such series or such global exchange agent as may be appointed by the Company as
necessary (the “Global Exchange Agent”) shall authenticate and deliver in exchange therefor a like
principal amount of the definitive Securities of authorized denominations of the same series and of
a like Stated Maturity and with like terms and provisions. Until exchanged as hereinabove provided,
the temporary Securities of any series shall in all respects be entitled to the same benefits under
this Indenture as the definitive Securities of the same series and with like terms and conditions,
except as to payment of interest, if any, authenticated and delivered hereunder.

     Any temporary Global Security and any permanent Global Security shall, unless otherwise
provided therein, be delivered to a Depositary designated pursuant to Section 301.

Section 305. Registration, Registration of Transfer and Exchange.

     The Company shall cause to be kept at the Corporate Trust Office of the Trustee for the
Securities of each series a register (the register maintained in such office being herein sometimes
referred to as the “Security Register”) in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of the Securities and of transfers of the
Securities. The Trustee for the Securities of each series is hereby initially appointed “Security
Registrar” for the purpose of registering the Securities and transfers of the Securities of such
series as herein provided.

     Upon surrender for registration of transfer of any Security of any particular series at the
office or agency of the Company in a Place of Payment for that series, the Company shall execute,
and the Trustee for the Securities of each series shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Securities of any authorized
denominations, and of a like Stated Maturity and of a like series and aggregate principal amount
and with like terms and conditions.

     Except as set forth below, at the option of the Holder, the Securities of any particular
series may be exchanged for other Securities of any authorized denominations, and of a like Stated
Maturity and of a like series and aggregate principal amount and with like terms and conditions
upon surrender of the

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Securities to be exchanged at such office or agency. Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee for such Securities shall
authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive.

     Notwithstanding any other provision of this Section or Section 304, unless and until it is
exchanged in whole or in part for the Securities in definitive form, a Global Security representing
all or a portion of the Securities of a series may not be transferred except as a whole by the
Depositary for such series to a nominee of such Depositary or by a nominee of such Depositary to
such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to
a successor Depositary for such series or a nominee of such successor Depositary.

     Whenever any Securities are so surrendered for exchange, the Company shall execute, and the
Trustee for such Securities shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.

     If at any time the Depositary for the Securities of a series in registered form notifies the
Company that it is unwilling or unable to continue as Depositary for the Securities of such series
or if at any time the Depositary for the Securities of such series shall no longer be eligible
under Section 303, the Company shall appoint a successor Depositary with respect to the Securities
for such series. If (i) a successor Depositary for the Securities of such series is not appointed
by the Company within 90 days after the Company receives such notice or becomes aware of such
ineligibility, (ii) the Company delivers to the Trustee for the Securities of such series in
registered form a Company Order stating that the Securities of such series shall be exchangeable,
or (iii) an Event of Default under Section 501 hereof has occurred and is continuing with respect
to the Securities of such series, the Company’s election pursuant to Section 301 shall no longer be
effective with respect to the Securities for such series and the Company will execute, and the
Trustee, upon receipt of a Company Order for the authentication and delivery of the definitive
Securities of such series, will authenticate and deliver the Securities of such series in
definitive form in an aggregate principal amount equal to the principal amount of the Global
Security or the Securities representing such series in exchange for such Global Security or the
Securities.

     The Company may at any time and in its sole discretion determine that the Securities of any
series issued in the form of one or more Global Securities shall no longer be represented by such
Global Security or the Securities. In such event the Company will execute, and the Trustee, upon
receipt of a Company Order for the authentication and delivery of the definitive Securities of such
series, will authenticate and deliver, the Securities of such series in definitive form and in an
aggregate principal amount equal to the principal amount of the Global Security or the Securities
representing such series in exchange for such Global Security or the Securities.

     If specified by the Company pursuant to Section 301 with respect to a series of the Securities
in registered form, the Depositary for such series of the Securities may surrender a Global
Security for such series of the Securities in exchange in whole or in part for the Securities of
such series of like tenor and terms and in definitive form on such terms as are acceptable to the
Company and such Depositary. Thereupon the Company shall execute, and, upon receipt of a Company
Order, the Trustee shall authenticate and deliver, without service charge, (i) to each Person
specified by such Depositary a new Security or Securities of the same series, of like tenor and
terms and of any authorized denomination as requested by such Person in aggregate principal amount
equal to and in exchange for such Person’s beneficial interest in the Global Security; and (ii) to
such Depositary a new Global Security of like tenor and terms and in a denomination equal to the
difference, if any, between the principal amount of the surrendered Global Security and the
aggregate principal amount of the Securities delivered to Holders thereof.

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     Upon the exchange of a Global Security for the Securities in definitive form representing the
aggregate principal amount of such Global Security, such Global Security shall be cancelled by the
Trustee. The Securities issued in exchange for a Global Security pursuant to this Section shall be
registered in such names and in such authorized denominations as the Depositary for such Global
Security, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee in writing. The Trustee shall deliver such Securities to the persons in whose
names such Securities are so registered.

     All of the Securities issued upon any registration of transfer or exchange of the Securities
shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such registration of transfer or
exchange.

     Every Security presented or surrendered for registration of transfer or exchange shall (if so
required by the Company or the Trustee for such Security) be duly endorsed, or be accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar for
such series duly executed, by the Holder thereof or his attorney duly authorized in writing.

     No service charge shall be made for any registration of transfer or exchange of the
Securities, but the Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of the Securities, other than exchanges pursuant to Section 304, 906 or 1107 not involving any
transfer.

     The Company shall not be required (i) to issue, register the transfer of or exchange the
Securities of any series during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of the Securities of that series selected for
redemption under Section 1104 and ending at the close of business on the day of the mailing of the
relevant notice of redemption or (ii) to register the transfer of or exchange any Security so
selected for redemption as a whole or in part, except the unredeemed portion of any Security being
redeemed in part.

     Furthermore, notwithstanding any other provision of this Section 305, the Company will not be
required to exchange any Securities if, as a result of the exchange, the Company would suffer
adverse consequences under any United States law or regulation.

Section 306. Mutilated, Destroyed, Lost and Stolen Securities.

     If (i) any mutilated Security is surrendered to the Trustee for such Security or the Company
and the Trustee for a Security receive evidence to their satisfaction of the destruction, loss or
theft of any Security and (ii) there is delivered to the Company and such Trustee such security or
indemnity as may be required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or such Trustee that such Security has been acquired
by a bona fide or protected purchaser, the Company shall execute and upon its request such Trustee
shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security or in
exchange for such mutilated Security a new Security of the same series and in a like principal
amount and of a like Stated Maturity and with like terms and conditions, and bearing a number not
contemporaneously outstanding appertaining to such mutilated, destroyed, lost or stolen Security.

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security (without surrender thereof except in the case of a mutilated Security) if the
applicant for such payment shall furnish to the Company and the Trustee for such Security such
security or indemnity as may be required by them to save each of them harmless, and in case of
destruction, loss or theft, evidence

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satisfactory to the Company and such Trustee and any agent of any of them of the destruction,
loss or theft of such Security and the ownership thereof.

     Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including all fees and expenses of the Trustee for such Security)
connected therewith.

     Every new Security of any series, issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security or in exchange for any mutilated Security shall constitute an original
additional contractual obligation of the Company whether or not the destroyed, lost or stolen
Security shall be at any time enforceable by anyone, and each such new Security shall be at any
time enforceable by anyone, and each such new Security shall be entitled to all the benefits of
this Indenture equally and proportionately with any and all other Securities of the same series
duly issued hereunder.

     The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.

Section 307. Payment of Interest; Interest Rights Preserved.

     Except as otherwise contemplated by Section 301 with respect to any series of the Securities,
interest on any Security which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall, if so provided in such Security, be paid to the Person in whose name
that Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest payment in respect of the Securities of such series, except
that, unless otherwise provided in the Securities of such series, interest payable on the Stated
Maturity of the principal of a Security shall be paid to the Person to whom principal is paid. The
initial payment of interest on any Security of any series that is issued between a Regular Record
Date and the related Interest Payment Date shall be payable as provided in such Security or in the
Board Resolution or Officers’ Certificate pursuant to Section 201 with respect to the related
series of the Securities.

     Unless otherwise provided with respect to the Securities of any series, payment of interest
may be made at the Corporate Trust Office or, at the option of the Company in the case of the
Securities, may be made by check mailed to the address of the Person entitled thereto as such
address shall appear in the Security Register. Notwithstanding the foregoing, a Holder of
$1,000,000 or more in aggregate principal amount of the Securities of any series in definitive
form, whether having identical or different terms and provisions, having the same Interest Payment
Dates will, at the option of the Company, be entitled to receive interest payments, other than at
Maturity, by wire transfer of immediately available funds if appropriate wire transfer instructions
have been received in writing by the Trustee for the Securities of such series at least 15 days
prior to the applicable Interest Payment Date. Any wire instructions received by the Trustee for
the Securities of such series shall remain in effect until revoked by the Holder.

     Any interest on any Security of any particular series which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the registered Holder on the relevant Regular Record Date by
virtue of having been such Holder; and such Defaulted Interest may be paid by the Company, at its
election in each case, as provided in clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of that series (or their respective Predecessor Securities)

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are registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following manner. The Company shall
notify the Trustee for the Securities of such series in writing of the amount of Defaulted
Interest proposed to be paid on each Security of that series and the date of the proposed
payment, and at the same time the Company shall deposit with such Trustee an amount of money
in the currency or currency unit in which the Securities of such series are payable (except
as otherwise specified pursuant to Section 301 for the Securities of such series), equal to
the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to such Trustee for such deposit on or prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided. Thereupon such
Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which
shall not be more than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by such Trustee of the notice of the
proposed payment. Such Trustee shall promptly notify the Company of such Special Record
Date and, in the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest, which notice shall be prepared by the Company and shall
be acceptable to the Trustee, and the Special Record Date therefor to be mailed, first-class
postage prepaid, to each Holder of the Securities of that series at his address as it
appears in the Security Register not less than 10 days prior to such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the
Persons in whose names the Securities of that series (or their respective Predecessor
Securities) are registered on such Special Record Date and shall no longer be payable
pursuant to the following clause (2).

     (2) The Company may make payment of any Defaulted Interest on the Securities of any
particular series in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of the series in respect of which interest is in
default, may be listed, and upon such notice as may be required by such exchange, if, after
notice is given by the Company to the Trustee for the Securities of such series of the
proposed manner of payment pursuant to this clause, such manner of payment shall be deemed
practicable by such Trustee.

     Subject to the foregoing provisions of this Section and Section 305, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Security.

Section 308. Persons Deemed Owners.

     Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
for such Security and any agent of the Company or such Trustee shall treat the Person in whose name
any such Security is registered as the owner of such Security for the purpose of receiving payment
of principal of (and premium, if any) and (subject to Section 307) interest, if any, on such
Security and for all other purposes whatsoever, whether or not such Security be overdue, and none
of the Company, such Trustee or any agent of the Company or such Trustee shall be affected by
notice to the contrary.

     None of the Company, the Trustee, any Paying Agent or the Security Registrar will have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Security or for maintaining, supervising or reviewing
any records relating to such beneficial ownership interests.

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Section 309. Cancellation.

     All of the Securities surrendered for payment, redemption, registration of transfer or
exchange, or delivered in satisfaction of any sinking fund payment, shall, if surrendered to any
Person other than the Trustee for such the Securities, be delivered to such Trustee and, in the
case of the Securities, shall be promptly cancelled by it. The Company may at any time deliver to
the Trustee for the Securities of a series for cancellation any Securities previously authenticated
and delivered hereunder which the Company may have acquired in any manner whatsoever, and all of
the Securities so delivered shall be promptly cancelled by such Trustee. Notwithstanding any other
provision of this Indenture to the contrary, in the case of a series, all the Securities of which
are not to be originally issued at one time, a Security of such series shall not be deemed to have
been Outstanding at any time hereunder if and to the extent that, subsequent to the authentication
and delivery thereof, such Security is delivered to the Trustee for such Security for cancellation
by the Company or any agent thereof upon the failure of the original purchaser thereof to make
payment therefor against delivery thereof, and any Security so delivered to such Trustee shall be
promptly cancelled by it. None of the Securities shall be authenticated in lieu of or in exchange
for any Securities cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Securities held by the Trustee for such Securities shall be disposed of
by such Trustee in accordance with its standard procedures and a certificate of disposition
evidencing such disposition of the Securities shall be provided to the Company by such Trustee
provided, however, that the Trustee shall not be required to destroy such cancelled Securities.
Permanent Global Securities shall not be disposed of until exchanged in full for the definitive
Securities or until payment thereon is made in full.

Section 310. Computation of Interest.

     Except as otherwise specified as contemplated by Section 301 for the Securities of any
particular series, interest on the Securities of each series shall be computed on the basis of a
360-day year of twelve 30-day months.

Section 311. Ranking.

     The Securities shall constitute the senior indebtedness of the Company and shall rank pari
passu in right of payment among themselves and with all of the other existing and future senior
indebtedness of the Company.

ARTICLE 4

Satisfaction and Discharge

Section 401. Option to Effect Legal Defeasance or Covenant Defeasance.

     The Company may, at its option evidenced by a Board Resolution or an Officers’ Certificate, at
any time, with respect to the Securities of any series, elect to have either Section 402 and/or 403
be applied to all of the Outstanding Securities of that series upon compliance with the conditions
set forth below in this Article Four.

Section 402. Legal Defeasance and Discharge.

     Upon the Company’s exercise under Section 401 of the option applicable to this Section 402,
the Company shall be deemed to have been discharged from its obligations with respect to all of the

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Outstanding Securities of the particular series on the date the conditions set forth below in
Section 404 are satisfied (hereinafter, “Legal Defeasance”). For this purpose, such Legal
Defeasance means that the Company shall be deemed to have paid and discharged all the obligations
relating to the Outstanding Securities of that series and the Securities of that series shall
thereafter be deemed to be “Outstanding” only for the purposes of Section 406, Section 408 and the
other Sections of this Indenture referred to below in this Section 402, and to have satisfied all
of its other obligations under such Securities and this Indenture and cured all then existing
Events of Default (and the Trustee, on written demand of and at the expense of the Company, shall
execute proper instruments acknowledging the same), except for the following which shall survive
until otherwise terminated or discharged hereunder: (a) the rights of Holders of Outstanding
Securities of the particular series, if any, to receive payments in respect of the principal of
(and premium, if any) and interest, if any, on such Securities when such payments are due or on the
Redemption Date solely out of the trust created pursuant to this Indenture; (b) the Company’s
obligations with respect to such Securities concerning issuing temporary Securities of that series,
or, where relevant, registration of such Securities, mutilated, destroyed, lost or stolen
Securities of that series and the maintenance of an office or agency for payment and money for the
Securities payments held in trust; (c) the rights, powers, trusts, duties and immunities of the
Trustee for the Securities of that series, and the Company’s obligations in connection therewith
and with respect to the Company’s obligations to the Trustee under Section 607; and (d) this
Article Four and the obligations set forth in Section 406 hereof.

     Subject to compliance with this Article Four, the Company may exercise its option under
Section 402 notwithstanding the prior exercise of its option under Section 403 with respect to the
Securities of a particular series. Following such defeasance, payment of such Securities may not
be accelerated because of an Event of Default.

Section 403. Covenant Defeasance.

     Upon the Company’s exercise under Section 401 of the option applicable to this Section 403,
the Company shall be released from any obligations under the covenants contained in Sections 801,
1007, 1008 and 1009 hereof (and any other covenant in addition to those set forth herein applicable
to the Securities of any series pursuant to Section 301 hereof specified to be released as provided
under this Section 403) with respect to the Outstanding Securities of the particular series, along
with any additional covenants contained in such Security or any supplemental Indenture in
connection therewith, on and after the date the conditions set forth below in Section 404 are
satisfied (hereinafter, “Covenant defeasance”), and the Securities of that series shall thereafter
be deemed not “Outstanding” for the purposes of any direction, waiver, consent or declaration or
act of Holders (and the consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “Outstanding” for all other purposes hereunder (it being understood that such
Securities shall not be deemed outstanding for accounting purposes). For this purpose, such
Covenant Defeasance means that, with respect to the Outstanding Securities of that series
appertaining thereto, the Company may omit to comply with and shall have no liability in respect of
any term, condition or limitation set forth in any such covenant, whether directly or indirectly,
by reason of any reference elsewhere herein to any such covenant or by reason of any reference in
any such covenant to any other provision herein or in any other document and such omission to
comply shall not constitute a default or Event of Default under subsection 501(3) but, except as
specified above, the remainder of this Indenture and the Securities of that series shall be
unaffected thereby.

Section 404. Conditions to Legal or Covenant Defeasance.

     The following shall be the conditions to the application of either Section 402 or Section 403
to the Outstanding Securities of a particular series:

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     (a) the Company must irrevocably deposit, or cause to be irrevocably deposited, with
the Trustee for the Securities of that series, in trust, for the benefit of the Holders of
the Securities of that series, cash in the currency or currency unit in which the Securities
of that series are payable (except as otherwise specified pursuant to Section 301 for the
Securities of that series), Government Obligations, or a combination thereof in such amounts
as will be sufficient, in the opinion of an internationally recognized firm of independent
public accountants, to pay the principal of (and premium, if any) and interest, if any, due
on the outstanding Securities of that series at the Stated Maturity, or on the applicable
Redemption Date, as the case may be, with respect to the outstanding Securities of that
series;

     (b) in the case of Legal Defeasance, the Company shall have delivered to the Trustee
for the Securities of that series an Opinion of Counsel in the United States reasonably
acceptable to such Trustee confirming that, subject to customary assumptions and exclusions,
(1) the Company has received from, or there has been published by, the U.S. Internal Revenue
Service a ruling or (2) since the Issue Date, there has been a change in the applicable U.S.
federal income tax law, in either case to the effect that, and based thereon such Opinion of
Counsel in the United States shall confirm that, subject to customary assumptions and
exclusions, the Holders of the Outstanding Securities of that series will not recognize
income, gain or loss for U.S. federal income tax purposes as a result of such Legal
Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Legal Defeasance had not
occurred;

     (c) in the case of Covenant Defeasance, the Company shall have delivered to the Trustee
for the Securities of that series an Opinion of Counsel in the United States reasonably
acceptable to such Trustee confirming that, subject to customary assumptions and exclusions,
the Holders of the Outstanding Securities of that series will not recognize income, gain or
loss for U.S. federal income tax purposes as a result of such Covenant Defeasance and will
be subject to such tax on the same amounts, in the same manner and at the same times as
would have been the case if such Covenant Defeasance had not occurred;

     (d) no Event of Default or event which with the giving of notice or the lapse of time,
or both, would become an Event of Default with respect to the Securities of that series
shall have occurred and be continuing on the date of such deposit and no Event of Default
under Section 501(4) or Section 501(5) shall have occurred and be continuing on the
91st day after such date;

     (e) such Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under any material agreement or instrument to which
the Company is a party or by which the Company is bound; and

     (f) the Company shall have delivered to the Trustee for the Securities of that series
an Officers’ Certificate and an Opinion of Counsel in the United States (which opinion of
counsel may be subject to customary assumptions and exclusions) each stating that all
conditions precedent provided for or relating to the Legal Defeasance or the Covenant
Defeasance, as the case may be, have been complied with.

Section 405. Satisfaction and Discharge of Indenture.

     This Indenture will, upon Company Request, be discharged and will cease to be of further
effect as to all of the Securities of any particular series issued hereunder when either (i) all of
the Securities of that series theretofore authenticated and delivered (except (A) lost, stolen or
destroyed Securities which have been replaced or paid as provided in Section 306 and (B) the Securities for whose payment
money

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has theretofore been deposited in trust and thereafter repaid to the Company or discharged
from such trust, as provided in the last paragraph of Section 1003) have been delivered to the
Trustee for cancellation or (ii) (A) all of the Securities of that series not theretofore delivered
to the Trustee for cancellation are due and payable by their terms within one year or have become
due and payable by reason of the making of a notice of redemption and the Company has irrevocably
deposited or caused to be deposited with such Trustee as trust funds in trust an amount of cash in
any combination of currency or currency unit in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities of such series),
Government Obligations, or a combination thereof in such amounts as will be sufficient to pay and
discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for
the Securities of that series for cancellation for principal (and premium, if any) and accrued and
unpaid interest, if any, to the Stated Maturity or Redemption Date, as the case may be; (B) the
Company has paid, or caused to be paid, all sums payable by it under this Indenture; and (C) the
Company has delivered irrevocable instructions to the Trustee for the Securities of that series
under this Indenture to apply the deposited money toward the payment of such Securities at the
Stated Maturity or the Redemption Date, as the case may be. In addition, the Company must deliver
an Officers’ Certificate and an Opinion of Counsel to the Trustee for the Securities of that series
stating that all conditions precedent to satisfaction and discharge have been satisfied.

Section 406. Survival of Certain Obligations.

     Notwithstanding the satisfaction and discharge of this Indenture and of the Securities of a
particular series referred to in Sections 401, 402, 404, or 405, the respective obligations of the
Company and the Trustee for the Securities of a particular series under Sections 303, 304, 305,
309, 407, 408, 409, 410, and 508, Article Six, and Sections 701, 702, 1002, 1003 and 1006, shall
survive with respect to the Securities of that series until the Securities of that series are no
longer outstanding, and thereafter the obligations of the Company and the Trustee for the
Securities of a particular series with respect to that series under Sections 407, 408, 409, and 410
shall survive. Nothing contained in this Article Four shall abrogate any of the obligations or
duties of the Trustee of any series of the Securities under this Indenture.

Section 407. Acknowledgment of Discharge by Trustee.

     Subject to Section 410, after (i) the conditions of Section 404 or 405 have been satisfied
with respect to the Securities of a particular series, (ii) the Company has paid or caused to be
paid all other sums payable hereunder by the Company and (iii) the Company has delivered to the
Trustee for the Securities of that series an Officers’ Certificate and an Opinion of Counsel, each
stating that all conditions precedent referred to in clause (i) above relating to the satisfaction
and discharge of this Indenture have been complied with, the Trustee for the Securities of that
series upon written request shall acknowledge in writing the discharge of all of the Company’s
obligations under this Indenture except for those surviving obligations specified in this Article
Four.

Section 408. Application of Trust Moneys.

     All money and Government Obligations deposited with the Trustee for the Securities of a
particular series pursuant to Section 404 or 405 in respect of the Securities of that series shall
be held in trust and applied by it, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent as the Trustee may
determine, to the Holders of the Securities of all sums due and to become due thereon for principal
(and premium, if any) and interest, if any, but such money need not be segregated from other funds
except to the extent required by law.

     The Company shall pay and indemnify the Trustee for the Securities of a particular series
against any tax, fee or other charge imposed on or assessed against the Government Obligations
deposited

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pursuant to Section 404 or 405 with respect to the Securities of that series or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of the outstanding Securities of that series.

Section 409. Repayment to the Company; Unclaimed Money.

     The Trustee and any Paying Agent for a series of the Securities shall promptly pay or return
to the Company upon Company Order any cash or Government Obligations held by them at any time that
are not required for the payment of the principal of (and premium, if any) and interest, if any, on
the Securities of that series for which cash or Government Obligations have been deposited pursuant
to Section 404 or 405.

     Any money deposited with the Trustee or any Paying Agent for the Securities of any series, or
then held by the Company, in trust for the payment of the principal of (and premium, if any) and
interest, if any, on any Security of any particular series and remaining unclaimed for two years
after such principal (and premium, if any) and interest, if any, has become due and payable shall,
unless otherwise required by mandatory provisions of applicable escheat, or abandoned or unclaimed
property law, be paid to the Company on Company Request or (if then held by the Company) shall be
discharged from such trusts; and the Holder of such Security shall, thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all liability of such Trustee
or such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that such Trustee or such Paying Agent, before
being required to make any such repayment may give written notice to the Holder of such Security in
the manner set forth in Section 106, that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will, unless otherwise required by mandatory
provisions of applicable escheat, or abandoned or unclaimed property law, be repaid to the Company,
as the case may be.

Section 410. Reinstatement.

     If the Trustee or Paying Agent for a series of the Securities is unable to apply any cash or
Government Obligations, as applicable, in accordance with Section 402, 403, 404 or 405 by reason of
any legal proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under
this Indenture and the Securities of that series shall be revived and reinstated as though no
deposit had occurred pursuant to Section 402, 403, 404 or 405 until such time as the Trustee or
Paying Agent for that series is permitted to apply all such cash or Government Obligations in
accordance with Section 402, 403, 404 or 405; provided, however, that if the Company has made any
payment of principal (and premium, if any) and interest, if any, on any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the cash or Government Obligations, as applicable,
held by such Trustee or Paying Agent.

ARTICLE 5

Remedies

Section 501. Events of Default.

     “Event of Default” wherever used herein with respect to any particular series of the
Securities means any one of the following events and such other events as may be established with
respect to the

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Securities of such series as contemplated by Section 301 (whatever the reason for
such Event of Default and whether it shall be voluntary or involuntary or be effected by operation
of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):

     (1) default in the payment of any interest upon any Security of such series when it
becomes due and payable, and continuance of such default for a period of 30 days; or

     (2) default in the payment of the principal of or premium, if any, on any Security of
such series at its Maturity, upon optional redemption, upon declaration or otherwise; or

     (3) default in the performance of, or breach of, any covenant or warranty of the
Company in this Indenture applicable to such series of the Securities (other than (i) the
obligations of the Company under Section 1009(1) and 1010 and (ii) a covenant or warranty a
default in whose performance or whose breach is elsewhere in this Section specifically dealt
with) and continuance of such default or breach for a period of
60 days after there has
been given, by registered or certified mail, to the Company by the Trustee for the
Securities of such series or to the Company and such Trustee by the Holders of at least 25%
in principal amount of the Outstanding Securities of such series a written notice specifying
such default or breach and requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder; or

     (4) the entry by a court having jurisdiction in the premises of (i) a decree or order
for relief in respect of the Company in an involuntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization or other similar law or
(ii) a decree or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or composition of
or in respect to the Company under any applicable federal or state law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or of any substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order for relief or
any such other decree or order unstayed and in effect for a period of 60 consecutive days;
or

     (5) the commencement by the Company for a voluntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization or other similar law or
of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by
it to the entry of a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or insolvency
case or proceeding against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under any applicable federal or state law, or the consent
by it to the filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate
action by the Company in furtherance of such action.

Section 502. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to any particular series of the Securities occurs and is
continuing (other than an Event of Default described in Section 501(4) or 501(5) with respect to
the Company), then and in every such case either the Trustee for the Securities of such series or
the Holders

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of not less than 25% in principal amount of the Outstanding Securities of that series
may declare the entire principal amount of all the Securities of that series to be due and
payable immediately, by a notice in writing to the Company (and to such Trustee if given by
Holders), and upon any such declaration of acceleration of such principal or such lesser amount, as
the case may be, together with accrued interest and all other amounts owing hereunder, shall become
immediately due and payable, without presentment, demand, protest or notice of any kind, all of
which are hereby expressly waived.

     If any Event of Default specified in Section 501(4) or 501(5) occurs with respect to the
Company, all of the unpaid principal amount and accrued interest on all of the Securities of each
series then outstanding shall ipso facto become and be immediately due and payable without any
declaration or other act by the Trustee or any Holder.

     At any time after such a declaration of acceleration has been made and before a judgment or
decree for payment of the money due has been obtained by the Trustee for the Securities of any
series as hereinafter provided in this Article, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and such Trustee, may
rescind and annul such declaration and its consequences if:

     (1) the Company has paid or deposited with such Trustee a sum sufficient to pay in the
currency or currency unit in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such series):

(i) all overdue interest on all the Securities of that series;

(ii) the principal of (and premium, if any, on) any Securities of that
series which have become due otherwise than by such declaration of
acceleration and interest thereon from the date such principal became due at
a rate per annum equal to the rate borne by the Securities of such series,
to the extent that the payment of such interest shall be legally
enforceable;

(iii) to the extent that payment of such interest is lawful, interest upon
overdue interest at a rate per annum equal to the rate borne by the
Securities of such series; and

(iv) all sums paid or advanced by such Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of such Trustee, its
agents and counsel and all other amounts due to such Trustee under Section
607;

     and

     (2) all Events of Default with respect to the Securities of such series, other than the
nonpayment of the principal of the Securities of that series which has become due solely by
such acceleration, have been cured or waived as provided in Section 513. No such rescission
shall affect any subsequent default or impair any right consequent thereon.

Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if:

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     (1) default is made in the payment of any interest upon any Security of any series when
such interest becomes due and payable and such default continues for a period of 30 days; or

     (2) default is made in the payment of the principal of (or premium, if any, on) any
Security of any series at its Maturity;

the Company will, upon demand of the Trustee for the Securities of such series, pay to the Trustee,
for the benefit of the Holders of such Securities, the whole amount then due and payable on such
Securities for principal (and premium if any) and interest, if any, with interest upon the overdue
principal (and premium, if any) and, to the extent that payment of such interest shall be legally
enforceable, upon any overdue installments of interest at a rate per annum equal to the rate borne
by such Securities; and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of such Trustee, its agents and counsel and all other amounts due to
such Trustee under Section 607.

     If the Company fails to pay such amounts forthwith upon such demand, such Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding against the Company
for the collection of the sums so due and unpaid, and may prosecute such proceedings to judgment or
final decree, and may enforce the same against the Company or any other obligor upon the Securities
of such series and collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Company or any other obligor upon the Securities of such series,
wherever situated.

     If an Event of Default with respect to the Securities of any particular series occurs and is
continuing, the Trustee for the Securities of such series may in its discretion proceed to protect
and enforce its rights and the rights of the Holders of the Securities of that series by such
appropriate judicial proceedings as such Trustee shall deem most effectual to protect and enforce
any such rights, whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper
remedy.

Section 504. Trustee May File Proofs of Claim.

     In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relating to the
Company or any other obligor upon the Securities of any series or the property of the Company or of
such other obligor or their creditors, the Trustee for the Securities of such series (irrespective
of whether the principal of any Security of such series shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether such Trustee shall have made
any demand on the Company for the payment of overdue principal or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise

     (i) to file and prove a claim for the whole amount of principal (and premium,
if any) and interest, if any, owing and unpaid in respect of the Securities of such
series and to file such other papers or documents as may be necessary or advisable in order to have the claims of such Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of such Trustee, its
agents and counsel and all other amounts due to such Trustee under Section 607) and
of the Holders of the Securities of such series allowed in such judicial proceeding;
and

     (ii) to collect and receive any moneys or other property payable or deliverable
on any such claims and to distribute the same;

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and any receiver, assignee, trustee, liquidator, sequestrator (or other similar official) in any
such judicial proceeding is hereby authorized by each Holder of the Securities to make such
payments to such Trustee, and in the event that such Trustee shall consent to the making of such
payments directly to the Holders of the Securities, to pay to such Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of such Trustee, its agents and
counsel, and any other amounts due such Trustee under Section 607.

     Nothing herein contained shall be deemed to authorize the Trustee for the Securities of any
series to authorize or consent to or accept or adopt on behalf of any Holder of a Security any plan
of reorganization, arrangement, adjustment or composition affecting the Securities of such series
or the rights of any Holder thereof, or to authorize the Trustee for the Securities of any series
to vote in respect of the claim of any Holder in any such proceeding for the election of a trustee
in bankruptcy or other person performing similar functions.

Section 505. Trustee May Enforce Claims Without Possession of Securities.

     All rights of action and claims under this Indenture or the Securities of any series may be
prosecuted and enforced by the Trustee for the Securities of any series without the possession of
any of the Securities or the production thereof in any proceeding relating thereto, and any such
proceeding instituted by such Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of such Trustee, its agents and counsel and all
other amounts due to such Trustee under Section 607, be for the ratable benefit of the Holders of
the Securities in respect of which such judgment has been recovered.

Section 506. Application of Money Collected.

     Any money collected by the Trustee for the Securities of any series pursuant to this Article
with respect to the Securities of such series shall be applied in the following order, at the date
or dates fixed by such Trustee and, in case of the distribution of such money on account of
principal (or premium, if any) or interest, if any, upon presentation of the Securities, or both,
as the case may be, and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid:

     First: To the payment of all amounts due such Trustee under Section 607;

     Second: To the payment of the amounts then due and unpaid upon the Securities
for principal of (and premium, if any) and interest, if any, on such Securities in respect
of which or for the benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and payable on such
Securities for principal (and premium, if any) and interest, if any, respectively; and

     Third: The balance, if any, to the Company.

Section 507. Limitation on Suits.

     Subject to Section 508, no Holder of any Security of any particular series shall have any
right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

     (1) an Event of Default with respect to that series shall have occurred and be
continuing and such Holder shall have previously given written notice to the Trustee for the

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Securities of such series (other than with respect to an Event of Default referred to in
Sections 501(4) and (5)) of such default and the continuance thereof;

     (2) the Holders of not less than 25% in principal amount of the Outstanding Securities
of that series shall have made written request to the Trustee for the Securities of such
series to institute proceedings in respect of such Event of Default in its own name as
Trustee hereunder;

     (3) such Holder or Holders have offered to such Trustee indemnity reasonably
satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in
compliance with such request;

     (4) such Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

     (5) no direction inconsistent with such written request has been given to such Trustee
during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of that series;

it being understood and intended that no one or more Holders of the Securities of that series shall
have any right in any manner whatsoever by virtue of, or by availing of, any provision of this
Indenture to affect, disturb or prejudice the rights of any other Holders of the Securities of that
series, or to enforce any right under this Indenture, except in the manner herein provided and for
the equal and ratable benefit of all the Holders of the Securities of that series.

Section 508. Unconditional Right of Holders to Receive Principal (and Premium, if any) and Interest, if any.

     Notwithstanding any other provision in this Indenture, the Holder of any Security of any
series shall have the right which is absolute and unconditional to receive payment of the principal
of (and premium, if any) and (subject to Section 307) interest, if any, on such Security on the
respective Stated Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment, and such right
shall not be impaired without the consent of such Holder.

Section 509. Restoration of Rights and Remedies.

     If the Trustee for the Securities of any series or any Holder of a Security has instituted any
proceeding to enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to such Trustee or to
such Holder, then and in every such case the Company, such Trustee and the Holders of the
Securities shall, subject to any determination in such proceeding, be restored severally and
respectively to their former positions hereunder, and thereafter all rights and remedies of such Trustee and such Holders
shall continue as though no such proceeding had been instituted.

Section 510. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee for the Securities of any series or to the Holders
of the Securities is intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law,

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be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

Section 511. Delay or Omission Not Waiver.

     No delay or omission of the Trustee for the Securities of any series or of any Holder of any
Security of such series to exercise any right or remedy accruing upon any Event of Default with
respect to the Securities of such series shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to such Trustee for the Securities of any series or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by such Trustee or by the
Holders, as the case may be.

Section 512. Control by Holders.

     The Holders of a majority in principal amount of the Outstanding Securities of any particular
series affected thereby shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee for the Securities of such series with respect
to the Securities of that series or exercising any trust or power conferred on such Trustee with
respect to such Securities, provided that:

     (1) such direction shall not be in conflict with any rule of law or with this Indenture
and cannot involve the Trustee in personal liability;

     (2) such Trustee may take any other action deemed proper by such Trustee which is not
inconsistent with such direction; and

     (3) subject to the provisions of Section 601, the Trustee shall have the right to
decline to follow such direction if a Responsible Officer or Responsible Officers of the
Trustee shall, in good faith, determine that the proceeding so directed would be unjustly
prejudicial to the Holders not joining in any such direction or would involve the Trustee in
personal liability.

Section 513. Waiver of Past Defaults.

     The Holders of not less than a majority in principal amount of the Outstanding Securities of
any particular series may on behalf of the Holders of all the Securities of that series waive any
past default hereunder with respect to that series and its consequences, except:

     (1) a default in the payment of the principal of (or premium, if any) or interest, if
any, on any Security of that series; or

     (2) a default with respect to a covenant or provision hereof which under Article Nine
cannot be modified or amended without the consent of the Holder of each Outstanding Security
of that series affected.

     Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.

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Section 514. Undertaking for Costs.

     All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture or in any suit against the Trustee for the
Securities of any series for any action taken or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section shall not apply to any suit
instituted by the Trustee for the Securities of any series, to any suit instituted by any Holder,
or group of Holders, holding in the aggregate more than 10% in principal amount of the Outstanding
Securities of any particular series or to any suit instituted by any Holder of any Security for the
enforcement of the payment of the principal of (or premium, if any) or interest, if any, on any
Security of such series on or after the respective Stated Maturities expressed in such Security
(or, in the case of redemption, on or after the Redemption Date).

Section 515. Waiver of Stay or Extension Laws.

     The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully
do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will
not hinder, delay or impede the execution of any power herein granted to the Trustee for any series
of the Securities, but will suffer and permit the execution of every such power as though no such
law had been enacted.

ARTICLE 6

The Trustee

Section 601. Certain Duties and Responsibilities.

     (a) Except during the continuance of an Event of Default with respect to the Securities of any
series for which the Trustee is serving as such,

     (1) such Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against such Trustee; and

     (2) in the absence of bad faith on its part, such Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to such Trustee and conforming to the requirements of
this Indenture; but in the case of any such certificates or opinions which by any provisions hereof are
specifically required to be furnished to such Trustee, such Trustee shall be under a duty to
examine the same to determine whether or not they conform to the requirements of this
Indenture (but need not confirm or investigate the accuracy of mathematical calculations or
the facts stated therein).

     (b) In case an Event of Default with respect to a series of the Securities has occurred and is
continuing, the Trustee for the Securities of such series shall exercise such of the rights and
powers vested

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in it by this Indenture, and use the same degree of care and skill in its exercise as
a prudent person would exercise or use under the circumstances in the conduct of that person’s own
affairs.

     (c) No provision of this Indenture shall be construed to relieve the Trustee for the
Securities of any series from liability for its own negligent action, its own negligent failure to
act, or its own willful misconduct, except that:

     (1) this Subsection shall not be construed to limit the effect of Subsection (a) of
this Section;

     (2) such Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

     (3) such Trustee shall not be liable with respect to any action taken, suffered or
omitted to be taken by it in good faith in accordance with the direction of the Holders of a
majority in principal amount of the Outstanding Securities of any particular series,
determined as provided in Section 512, relating to the time, method and place of conducting
any proceeding for any remedy available to such Trustee, or exercising any trust or power
conferred upon such Trustee, under this Indenture with respect to the Securities of that
series; and

     (4) no provision of this Indenture shall require the Trustee for any series of the
Securities to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to it.

     (d) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee for any series
of the Securities shall be subject to the provisions of this Section.

Section 602. Notice of Defaults.

     Within 90 days after the occurrence of any default hereunder with respect to the Securities of
any particular series, the Trustee for the Securities of such series shall give to Holders of the
Securities of that series, in the manner set forth in Section 106, notice of such default known to
a Responsible Officer of such Trustee, unless such default shall have been cured or waived;
provided, however, that, except in the case of a default in the payment of the principal of (or
premium, if any) or interest, if any, on any Security of that series, or in the deposit of any
sinking fund payment with respect to the Securities of that series, such Trustee shall be protected
in withholding such notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of such Trustee in good faith determines
that the withholding of such notice is in the best interests of the Holders of the Securities of
that series. For the purpose of this Section, the term “default” means any event which is, or
after notice or lapse of time or both would become, an Event of Default with respect to the
Securities of that series.

Section 603. Certain Rights of Trustee.

     Except as otherwise provided in Section 601:

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(a) the Trustee for any series of the Securities may conclusively rely and shall be
protected in acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, discretion, consent, order, bond, debenture or
other paper or document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

(b) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order (other than delivery of any Security to the
Trustee for authentication and delivery pursuant to Section 303 which shall be sufficiently
evidenced as provided therein) and any resolution of the Board of Directors of the Company
may be sufficiently evidenced by a Board Resolution;

(c) whenever in the administration of this Indenture such Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, such Trustee (unless other evidence be herein specifically prescribed)
may, in the absence of bad faith on its part, rely upon an Officers’ Certificate or an
Opinion of Counsel, or both which shall comply with Section 102;

(d) such Trustee may consult with counsel of its selection and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon;

(e) such Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Holders of the
Securities of any series pursuant to this Indenture for which it is acting as Trustee,
unless such Holders shall have offered to such Trustee security or indemnity reasonably
satisfactory to the Trustee against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction;

(f) such Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, discretion, consent, order, bond, debenture or other paper or document, but such
Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters at it may see fit, and, if such Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records and premises of
the Company, personally or by agent or attorney at the sole cost of the Company and shall
incur no liability or additional liability of any kind by reason of such inquiry or
investigation;

(g) such Trustee may employ or retain such counsel, accountants, appraisers or other
experts or advisers as it may reasonably require for the purpose of determining and
discharging its rights and duties hereunder and shall not be responsible for any misconduct
on the part of any of them;

(h) such Trustee shall not be liable for any action taken, suffered, or omitted to be
taken by it in good faith and reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture;

(i) such Trustee shall not be deemed to have notice of any default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written
notice of any event which is in fact such a default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the Securities and this
Indenture;

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(j) the rights, privileges, protections, immunities and benefits given to such Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian
and other Person employed to act hereunder;

(k) such Trustee may request that the Company deliver an Officers’ Certificate setting
forth the names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by
any person authorized to sign an Officers’ Certificate, including any person specified as so
authorized in any such certificate previously delivered and not superseded; and

(l) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of
profit) irrespective of whether the Trustee has been advised of the likelihood of such loss
or damage and regardless of the form of action.

Section 604. Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication thereof shall be taken as the statements of the Company, as the case may be, and
neither the Trustee for any series of the Securities, nor any Authenticating Agent, assumes any
responsibility for their correctness. The Trustee for any series of the Securities makes no
representations as to the validity or sufficiency of this Indenture or of the Securities of any
series, except that the Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Securities, and perform its obligations hereunder and that the
statements made by it in a Statement of Eligibility on Form T-1 supplied to the Company are true
and correct, subject to the qualifications set forth therein. Neither the Trustee for any series
of the Securities nor any Authenticating Agent shall be accountable for the use or application by
the Company of the Securities or the proceeds thereof.

Section 605. May Hold Securities.

     The Trustee for any series of the Securities, any Authenticating Agent, Paying Agent, Security
Registrar or any other agent of the Company, or such Trustee, in its individual or any other
capacity, may become the owner or pledgee of the Securities and, subject to Sections 608 and 613,
may otherwise deal with the Company with the same rights it would have if it were not such Trustee,
Authenticating Agent, Paying Agent, Security Registrar or such other agent.

Section 606. Money Held in Trust.

     Money held by the Trustee for any series of the Securities in trust hereunder need not be
segregated from other funds except as provided in Section 408 and except to the extent required by
law. The Trustee for any series of the Securities shall be under no liability for interest on any
money received by it hereunder except as otherwise agreed with the Company in writing, as the case
may be.

Section 607. Compensation and Reimbursement.

     The Company agrees:

     (1) to pay to the Trustee for any series of the Securities as the Company and the
Trustee shall agree in writing from time to time, such compensation in Dollars for all
services

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rendered by it hereunder as shall be agreed upon in writing from time to time
(which compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

     (2) except as otherwise expressly provided herein, to reimburse the Trustee for any
series of the Securities in Dollars upon its request for all reasonable expenses,
disbursements and advances incurred or made by such Trustee in accordance with any provision
of this Indenture (including the reasonable compensation and the expenses and disbursements
of its agents and counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith; and

     (3) to indemnify such Trustee or any predecessor Trustee and their agents in Dollars
for, and to hold them harmless against, any loss, damage, claims, liability or expense
(including the reasonable compensation and expenses and disbursements of its agents and
counsel and including taxes (other than taxes based upon, measured by or determined by the
income of the Trustee)) incurred without negligence or bad faith on their part, arising out
of or in connection with the acceptance or administration of this trust, including the costs
and expenses of defending themselves against any claim, whether asserted by the Company or
any Holder or any other Person, or liability in connection with the exercise or performance
of any of their powers or duties hereunder. This indemnification shall survive termination
of the Indenture.

     As security for the performance of the obligations of the Company under this Section, the
Trustee for any series of the Securities shall have a lien prior to the Securities upon all
property and funds held or collected by such Trustee as such, except funds held in trust for the
payment of principal of (and premium, if any) or interest, if any, on the particular Securities.

     When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 501(4) or Section 501(5), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to constitute expenses
of administration under any applicable federal or state bankruptcy, insolvency or other similar
law.

Section 608. Disqualification; Conflicting Interests.

     The Trustee for the Securities shall be subject to the provisions of Section 310(b) of the
Trust Indenture Act during the period of time required thereby. Nothing herein shall prevent the
Trustee from filing with the Commission the application referred to in the penultimate paragraph of
Section 310(b) of the Trust Indenture Act. In determining whether the Trustee has a conflicting
interest as defined in Section 310(b) of the Trust Indenture Act with respect to the Securities of
any series, there shall be excluded the Securities of any particular series of the Securities other
than that series.

Section 609. Corporate Trustee Required; Different Trustees for Different Series; Eligibility.

     There shall at all times be a Trustee hereunder which shall be

          (i) a corporation or banking company organized and doing business under the laws of the
United States of America, any state thereof, or the District of Columbia, authorized under
such laws to exercise corporate trust powers, and subject to supervision or examination by
federal or state authority, or

          (ii) a corporation or other Person organized and doing business under the laws of a
foreign government that is permitted to act as Trustee pursuant to a rule, regulation, or

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other order of the Commission, authorized under such laws to exercise corporate trust
powers, and subject to supervision or examination by authority of such foreign government or
a political subdivision thereof substantially equivalent to supervision or examination
applicable to a United States institutional trustee, having a combined capital and surplus
of at least $50,000,000 and being a corporation organized and doing business under the laws
of the United States , authorized under such laws to exercise corporate trust powers and
subject to supervision or examination by federal, state, territorial or District of Columbia
authority. If such corporation publishes reports of condition at least annually, pursuant
to law or to requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. Neither the Company nor any Person directly or indirectly
controlling, controlled by, or under the common control of the Company shall serve as
Trustee for the Securities. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereunder specified in this Article.

Section 610. Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Trustee for the Securities of any series and no
appointment of a successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the applicable requirements
of Section 611.

     (b) The Trustee for the Securities of any series may resign at any time with respect to the
Securities of such series by giving written notice thereof to the Company. If the instrument of
acceptance by a successor Trustee required by Section 611 shall not have been delivered to the
Trustee for the Securities of such series within 60 days after the giving of such notice of
resignation, the resigning Trustee, at the Company’s expense, may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

     (c) The Trustee for the Securities of any series may be removed at any time with respect to
the Securities of such series by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series, delivered to such Trustee and to the Company.

     (d) If at any time:

     (1) the Trustee for the Securities of any series shall fail to comply with Section
310(b) of the Trust Indenture Act pursuant to Section 608 hereof after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a Security of
such series for at least six months, unless the Trustee’s duty to resign is stayed in
accordance with the provisions of Section 310(b) of the Trust Indenture Act, or

     (2) such Trustee shall cease to be eligible under Section 609 and shall fail to resign
after written request therefor by the Company or by any such Holder, or

     (3) such Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of such Trustee or of its property shall be appointed or any public
officer shall take charge or control of such Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,

then, in any such case, (i) the Company by a Board Resolution may remove such Trustee and
appoint a successor Trustee or (ii) subject to Section 514, any Holder who has been a bona
fide

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Holder of a Security of such series for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the
removal of such Trustee and the appointment of a successor Trustee.

     (e) If the Trustee for the Securities of any series shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of the Trustee for the Securities of
any series for any cause, the Company, by a Board Resolution, shall promptly appoint a successor
Trustee with respect to the Securities of such series and shall comply with the applicable
requirements of Section 611. If, within one year after such resignation, removal or incapability,
or the occurrence of such vacancy, a successor Trustee with respect to the Securities of such
series shall have not been appointed by the Company pursuant to this Section 610, then a successor
Trustee may be appointed by Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series delivered to the Company and the retiring Trustee. If no successor
Trustee for the Securities of such series shall have been so appointed by the Company or the
Holders and shall have accepted appointment in the manner required by Section 611, and if such
Trustee to be replaced is still incapable of acting, any Holder who has been a bona fide Holder of
a Security of such series for at least six months, on behalf of himself and all others similarly
situated, or the retiring Trustee, at the Company’s expense, may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

     (f) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series in the manner and to the extent provided in Section 106. Each notice
shall include the name of the successor Trustee with respect to the Securities of that series and
the address of its Corporate Trust Office.

Section 611. Acceptance of Appointment by Successor.

     (a) Every such successor Trustee appointed hereunder with respect to the Securities of any
series shall execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee without any further act, deed or conveyance,
shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on
the request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of
its fees and expenses, execute and deliver an instrument transferring to such successor Trustee all
the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver
to such successor Trustee all property and money held by such retiring Trustee hereunder.

     (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee
with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all of the Securities,
shall contain such provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or
those series as to which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee and (3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by more than one
Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute
such Trustees co-trustees of the same trust and each such Trustee shall be trustee of a trust or
trusts hereunder separate

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and apart from any trust or trusts hereunder administered by any other
such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided therein and each such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or
those series to which the appointment of such successor Trustee relates; but, on request of the
Company or any successor Trustee, such retiring Trustee shall duly, upon payment of any fees and
expenses due and owing to it hereunder with respect to such series, assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee hereunder with respect
to the Securities of that or those series to which the appointment of such successor Trustee
relates.

     (c) Upon request of any such successor Trustee, the Company shall execute reasonable
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in Subsections (a) or (b) of this Section, as the case
may be.

     (d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee for the Securities of any series shall be qualified and eligible under this
Article.

Section 612. Merger, Conversion, Consolidation or Succession to Business.

     Any corporation into which the Trustee for the Securities of any series may be merged or
converted or with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which such Trustee shall be a party, or any corporation succeeding
to all or substantially all of the corporate trust business of such Trustee, shall be the successor
of such Trustee hereunder, provided such corporation shall be otherwise qualified and eligible
under this Article, without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been authenticated, but not
delivered, by the Trustee or the Authenticating Agent for such series then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee or Authenticating Agent, as
the case may be, may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee or successor
Authenticating Agent had itself authenticated such Securities.

Section 613. Preferential Collection of Claims Against Company.

     The Trustee is subject to Section 311(a) of the Trust Indenture Act, excluding any creditor
relationship listed in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or
been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent indicated.

Section 614. Authenticating Agents.

     At any time when any of the Securities of any series remain Outstanding, the Trustee for the
Securities of such series may, subject to its sole discretion, appoint one or more Authenticating
Agents with respect to the Securities of such series, which may include the Company or any
Affiliate of the Company, with power to act on the Trustee’s behalf and subject to its discretion
in the authentication and delivery of the Securities of such series in connection with transfers
and exchanges under Sections 304, 305 and 1107 as fully to all intents and purposes as though such
Authenticating Agent had been expressly authorized by those Sections of this Indenture to
authenticate and deliver the Securities of such series. For all purposes of this Indenture, the
authentication and delivery of the Securities of such series by an Authenticating Agent for such
Securities pursuant to this Section shall be deemed to be authentication and delivery of such
Securities “by the Trustee” for the Securities of such series. Any such Authenticating Agent shall
at all times be a corporation organized and doing business under the laws of the United States

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or of any state, authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $50,000,000 and subject to supervision or examination by a federal
or state authority. If such Authenticating Agent publishes reports of condition at least annually
pursuant to law or the requirements of such supervising or examining authority, then for the
purposes of this Section the combined capital and surplus of such corporation shall be deemed to be
its combined capital and surplus as set forth in its most recent report of condition so published.
If at any time an Authenticating Agent for any series of the Securities shall cease to be eligible
in accordance with the provisions of this Section, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section.

     Any corporation into which any Authenticating Agent may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, consolidation or conversion
to which any Authenticating Agent shall be a party, or any corporation succeeding to the corporate
trust business of any Authenticating Agent, shall be the successor of such Authenticating Agent
hereunder, if such successor corporation is otherwise eligible under this Section, without the
execution or filing of any paper or any further act on the part of the parties hereto or the
Authenticating Agent or such successor corporation.

     Any Authenticating Agent for any series of the Securities may resign at any time by giving
written notice of resignation to the Trustee for such series and to the Company. The Trustee for
any series of the Securities may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and to the Company in the manner
set forth in Section 105. Upon receiving such a notice of resignation or upon such a termination,
or in case at any time any Authenticating Agent for any series of the Securities shall cease to be
eligible under this Section, the Trustee for such series may appoint a successor Authenticating
Agent, shall give written notice of such appointment to the Company and shall give written notice
of such appointment to all Holders of the Securities of such series in the manner set forth in
Section 106. Any successor Authenticating Agent, upon acceptance of its appointment hereunder,
shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating
Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of
this Section.

     The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section, and the Trustee shall be entitled to be
reimbursed for such payments, subject to the provisions of Section 607.

     If an appointment with respect to one or more series of the Securities is made pursuant to
this Section, the Securities of such series may have endorsed thereon, in addition to the Trustee’s
certification of authentication, an alternate certificate of authentication in the following form:

     “This is one of the Securities of the series designated therein described in the
within-mentioned Indenture.

The Bank of New York Trust Company, N.A., as Trustee

	 	 	 	 	 	 	 	 	 	 	 
	By

	 	 	 	 	 	By	 	 	 	 
	 

	 	 

As Authenticating Agent
	 	 	 	 	 	 

Authorized Signatory”
	 	 

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ARTICLE 7

Holders’ Lists and Reports by Trustee and the Company

Section 701. Company to Furnish Trustee Names and Addresses of Holders.

     With respect to each particular series of the Securities, the Company will furnish or cause to
be furnished to the Trustee for the Securities of such series,

     (a) semi-annually, not more than 15 days after each Regular Record Date relating to the
Securities of each series at the time Outstanding (or, if there is no Regular Record Date relating
to that series, on June 30 and December 31), a list, in such form as such Trustee may reasonably
require, containing all the information in the possession or control of the Company or any of its
Paying Agents other than such Trustee as to the names and addresses of the Holders of that series
as of such dates,

     (b) on semi-annual dates of each year to be determined pursuant to Section 301 if the
Securities of such series do not bear interest, a list of similar form and content, and

     (c) at such other times as such Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished,

excluding from any such list names and addresses received by such Trustee in its capacity as
Security Registrar for the Securities of such series, if so acting.

Section 702. Preservation of Information; Communications to Holders.

     (a) The Trustee for each series of the Securities shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders of the Securities of such series
contained in the most recent lists furnished to such Trustee as provided in Section 701 and the
names and addresses of Holders of the Securities of such series received by such Trustee in its
capacity as Security Registrar for such series, if so acting. The Trustee for each series of the Securities may destroy any list
relating to such series of the Securities furnished to it as provided in Section 701 upon receipt
of a new list relating to such series so furnished.

     (b) If three or more Holders of the Securities of any particular series (hereinafter referred
to as “applicants”) apply in writing to the Trustee for the Securities of any such series, and
furnish to such Trustee reasonable proof that each such applicant has owned a Security of that
series for a period of at least six months preceding the date of such application, and such
application states that the applicants desire to communicate with other Holders of the Securities
of that series with respect to their rights under this Indenture or under the Securities of that
series and is accompanied by a copy of the form of proxy or other communication which such
applicants propose to transmit, then such Trustee shall, within five Business Days after the
receipt of such application, at its election, either

     (i) afford such applicants access to the information preserved at the time by
such Trustee in accordance with Section 702(a), or

     (ii) inform such applicants as to the approximate number of Holders of the
Securities of that series whose names and addresses appear in the information
preserved at the time by such Trustee in accordance with Section 702(a), and as to
the approximate

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cost of mailing to such Holders the form of proxy or other
communication, if any, specified in such application.

     If any such Trustee shall elect not to afford such applicants access to that information, such
Trustee shall, upon the written request of such applicants, mail to each Holder of the Securities
of that series whose name and address appears in the information preserved at the time by such
Trustee in accordance with Section 702(a), a copy of the form of proxy or other communication which
is specified in such request, with reasonable promptness after a tender to such Trustee of the
material to be mailed and of payment, or provision for the payment, of the reasonable expenses of
mailing, unless within five days after such tender, such Trustee shall mail to such applicants and
file with the Commission, together with a copy of the material to be mailed, a written statement to
the effect that, in the opinion of such Trustee, such mailing would be contrary to the best
interests of the Holders of the Securities of that series or would be in violation of applicable
law. Such written statement shall specify the basis of such opinion. If the Commission, after
opportunity for a hearing upon the objections specified in the written statement so filed, shall
enter an order refusing to sustain any of such objections or if, after the entry of an order
sustaining one or more of such objections, the Commission shall find, after notice and opportunity
for hearing, that all the objections so sustained have been met and shall enter an order so
declaring, such Trustee shall mail copies of such material to all such Holders with reasonable
promptness after the entry of such order and the renewal of such tender; otherwise such Trustee
shall be relieved of any obligation or duty to such applicants respecting their application.

     (c) Every Holder of the Securities of each series, by receiving and holding the same, agrees
with the Company and the Trustee for the Securities of such series that neither the Company nor
such Trustee, nor any agent of either of them shall be held accountable by reason of the disclosure
of any such information as to the names and addresses of the Holders of the Securities of such
series in accordance with Section 702(b), regardless of the source from which such information was
derived, and that the Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under Section 702(b).

Section 703. Reports by Trustee.

     (a) Within 60 days after March 15 of each year, the Trustee for the Securities of each series
shall mail to each Holder of the Securities of such series entitled to receive reports pursuant to
Section 1009(3), a brief report dated as of such date that complies with Section 313(a) of the
Trust Indenture Act. The Trustee for the Securities of each series shall also comply with Sections
313(b), 313(c) and 313(d) of the Trust Indenture Act.

     (b) Reports so required to be transmitted at stated intervals of not more than 23 months shall
be transmitted within 60 days after May 15 of each calendar year, commencing with May 15, 2007
after the first issuance of the Securities under this Indenture.

     (c) At the time that the Trustee for the Securities of each series mails such a report to the
Holders of the Securities of such series, each such Trustee shall file a copy of that report with
the Commission and with each stock exchange on which the Securities of that series are listed. The
Company shall provide notice to the appropriate Trustee when the Securities of any series are
listed on any stock exchange.

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ARTICLE 8

Consolidation, Merger, Conveyance, Transfer or Lease

Section 801. Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not consolidate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person and the Company shall
not permit any Person to consolidate with or merge into the Company or convey, transfer or lease
all or substantially all of its properties and assets to the Company, unless:

     (1) the Person formed by such consolidation or into which the Company is merged or the
Person which acquires by conveyance or transfer, or which leases, the properties and assets
of the Company substantially as an entirety shall be a corporation, partnership, limited
liability company or trust, shall be organized and validly existing under the laws of the
United States of America, any state thereof or the District of Columbia and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the Trustee for each
series of the Securities, in form satisfactory to each such Trustee, the due and punctual
payment of the principal of (and premium, if any) and interest on all the Securities and the
performance or observance of every covenant of this Indenture on the part of the Company to
be performed or observed;

     (2) immediately after giving effect to such transaction, no Event of Default with
respect to any series of the Securities, and no event which, after notice or lapse of time
or both, would become an Event of Default with respect to any series of the Securities,
shall have happened and be continuing;

     (3) if, as a result of any such consolidation or merger or such conveyance, transfer or
lease, properties or assets of the Company would become subject to a mortgage, pledge, lien,
security interest or other encumbrance which would not be permitted by this Indenture, the
Company or such successor Person, as the case may be, shall take such steps as shall be
necessary to effectively secure any series of the Securities equally and ratably with (or
prior to) all indebtedness secured thereby; and

     (4) the Company has delivered to the Trustee for each series of the Securities an
Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance, transfer or lease and, if a supplemental indenture is required in
connection with such transaction, such supplemental indenture, comply with this Article and
that all conditions precedent herein provided for relating to such transaction have been
complied with.

Section 802. Successor Person Substituted.

     Upon any consolidation of the Company with, or merger by the Company into, any other Person or
conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety in accordance with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

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ARTICLE 9

Supplemental Indentures

Section 901. Consent, Waiver or Amendment Without Consent of Holders.

     The Company and the Trustee may amend, waive, supplement or otherwise modify this Indenture,
one or more series of the Securities, individually or collectively, or any other agreement or
instrument entered into in connection with this Indenture without notice to or consent of any
Holder:

     (1) to evidence the succession of another Person to the Company, and the assumption by
any such successor of the covenants and obligations of the Company herein and in the
Securities; or

     (2) to add to the covenants of the Company, for the benefit of the Holders of all or
any particular series of the Securities (and, if such covenants are to be for the benefit of
fewer than all series of the Securities, stating that such covenants are being included
solely for the benefit of such series), or to surrender any right or power herein conferred
upon the Company; or

     (3) to add any additional Events of Default with respect to any or all series of the
Securities (and, if any such Event of Default applies to fewer than all series of the
Securities, stating each series to which such Event of Default applies); provided, however,
that in respect of any such additional Events of Default, such supplemental indenture may
provide for a particular period of grace after default (which period may be shorter or
longer than that allowed in the case of other defaults) or may limit the remedies available
to the Trustee upon such default or may limit the right of Holders of a majority in
aggregate principal amount of that or those series of the Securities to which such
additional Events of Default apply to waive such default; or

     (4) to pledge property to the Trustee as security for the Securities; or

     (5) to add guarantees with respect to the Securities of any or all of the Securities;
or

     (6) to evidence and provide for the acceptance of appointment hereunder of a Trustee
other than The Bank of New York Trust Company, N.A. as Trustee for a series of the
Securities and to add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, pursuant to the requirements of Section 609; or

     (7) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 611(b); or

     (8) to add to or change or eliminate any provisions of this Indenture as shall be
necessary or desirable in accordance with any amendments to the Trust Indenture Act or to
maintain the qualification of this Indenture under the Trust Indenture Act; or

     (9) to issue and establish the form and terms and conditions of any series of the
Securities; or

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     (10) to cure any ambiguity or mistake, to correct or supplement any provision herein
which may be inconsistent with any other provision herein or in the Securities, or to make
any other provisions with respect to matters or questions arising under this Indenture
(including as to any particular series, to conform the terms of such Series to the
provisions of the description of such series set forth in any final offering memorandum or
final prospectus relating to the initial issuance of such Series to the extent that such
description provisions are intended to be a verbatim recitation of terms applicable to the
series), provided such action shall not adversely affect the interests of the Holders in any
material respect; or

     (11) to provide for uncertificated Securities in addition to or in place of
certificated Securities; or

     (12) to comply with the rules of any applicable securities depositary.

     Upon the request of the Company accompanied by a Board Resolution authorizing the execution of
any such amended or supplemental Indenture, and upon receipt by the Trustee of any documents
requested under Section 603(c) and (d), the Trustee shall join with the Company in the execution of
any amended or supplemental Indenture authorized or permitted by the terms of this Indenture and
make any further appropriate agreements and stipulations that may be therein contained, but the
Trustee shall not be obligated to enter into such amended or supplemental Indenture that affects
its own rights, duties or immunities under this Indenture or otherwise.

Section 902. Supplemental Indentures With Consent of Holders.

     With the consent of the Holders of not less than a majority in aggregate principal amount of
the Outstanding Securities of each series affected by the modification or waiver, by Act of said
Holders delivered to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or modifying in any manner the rights of the Holders under this Indenture;
provided, however, that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby:

     (1) reduce the principal or any premium or change the Stated Maturity thereof on any
Security of such series; or

     (2) reduce the rate of, or change the Stated Maturity of, any payment of interest on
any Security of such series; or

     (3) change the currency or currency unit in which principal, premium or interest are
payable on the Securities of any series or change the Place of Payment thereof; or

     (4) reduce the percentage in principal amount of the Outstanding Securities of any
particular series, the consent of whose Holders is required for any such supplemental
indenture, or the consent of whose Holders is required for any waiver (of compliance with
certain provisions of this Indenture or certain defaults hereunder and their consequences)
provided for in this Indenture; or

     (5) modify the right of any Holder to receive or sue for payment of principal, premium
or interest that would be due at the Stated Maturity thereof; or

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     (6) expressly subordinate the obligations of any series of the Securities to other
Indebtedness of the Company.

A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of the Securities, or which modifies the rights of the Holders of the Securities of such series
with respect to such covenant or other provision, shall be deemed not to affect the rights under
this Indenture of the Holders of the Securities of any other series.

     It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

Section 903. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee for any series of the Securities shall be entitled to receive, and (subject to Section 601)
shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or permitted by this
Indenture and that all conditions precedent herein provided for relating to such actions have been
complied with. The Trustee for any series of the Securities may, but shall not be obligated to,
enter into any such supplemental indenture which affects such Trustee’s own rights, liabilities,
duties or immunities under this Indenture or otherwise.

Section 904. Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture with respect to any series of the Securities
under this Article, this Indenture with respect to such series of the Securities shall be modified
in accordance therewith and such supplemental indenture shall form a part of this Indenture for all
purposes; and every Holder of the Securities of such series theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

Section 905. Conformity With Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

Section 906. Reference in Securities to Supplemental Indentures.

     The Securities of any particular series authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by the Trustee for the
Securities of such series, bear a notation in form approved by such Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine, new Securities of
any series so modified as to conform, in the opinion the Board of Directors of the Company, to any
such supplemental indenture may be prepared and executed by the Company and such Securities may be
authenticated and delivered by such Trustee in exchange for the Outstanding Securities of such
series.

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ARTICLE 10

Covenants

Section 1001. Payment of Principal (and Premium, if any) and Interest, if any.

     The Company agrees, for the benefit of each particular series of the Securities, that it will
duly and punctually pay in the currency or currency unit in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the Securities of such series)
the principal of (and premium, if any) and interest, if any, on that series of the Securities in
accordance with the terms of the Securities of such series and this Indenture. An installment of
principal of or interest on the Securities shall be considered paid on the date it is due if the
Trustee or a Paying Agent (other than the Company or an Affiliate of the Company) holds on that
date immediately available funds designated for and sufficient to pay such installment.

Section 1002. Maintenance of Office or Agency.

     The Company will maintain in each Place of Payment for that series an office or agency where
the Securities of that series may be presented or surrendered for payment, an office or agency
where the Securities of that series may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company with respect to the Securities of that series and
this Indenture may be served. The Company will give prompt written notice to the Trustee for the
Securities of that series of the location, and any change in the location, of any such office or
agency. If at any time the Company shall fail to maintain any such required office or agency in
respect of any series of the Securities or shall fail to furnish the Trustee for the Securities of
that series with the address thereof, such presentations (to the extent permitted by law), and
surrenders of the Securities of that series may be made and notices and demands may be made or
served at the Corporate Trust Office of such Trustee.

     Unless otherwise specified with respect to any Securities pursuant to Section 301 with respect
to a series of the Securities, the Company hereby designates as a Place of Payment for each series
of the Securities the office or agency of the Company in the Borough of Manhattan, The City of New
York, and initially appoints the Trustee at its office as Paying Agent in such city and as its
agent to receive all such presentations, surrenders, notices and demands.

Section 1003. Money for Securities Payments To Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent with respect to any particular
series of the Securities, it will, on or before each due date of the principal of (and premium, if
any) or interest, if any, on any of the Securities of that series, segregate and hold in trust for
the benefit of the Persons entitled thereto a sum in the currency or currency unit in which the
Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities of such series)
sufficient to pay the principal (and premium, if any) and interest, if any, so becoming due until
such sums shall be paid to such Persons or otherwise disposed of as herein provided, and will
promptly notify the Trustee in writing for the Securities of such series of its action or failure
so to act.

     Whenever the Company shall have one or more Paying Agents for any particular series of the
Securities, it will, prior to each due date of the principal of (and premium, if any) or interest,
if any, on any such Securities, deposit with a Paying Agent for the Securities of such series a sum
(in the currency or currency unit described in the preceding paragraph) sufficient to pay the
principal (and premium, if any) and interest, if any, so becoming due, such sum to be held in trust
for the benefit of the Persons

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entitled thereto, and (unless such Paying Agent is the Trustee for
the Securities of such series) the Company will promptly notify such Trustee in writing of its
action or failure so to act.

     The Company will cause each Paying Agent for any particular series of the Securities other
than the Trustee for the Securities of such series to execute and deliver to such Trustee an
instrument in which such Paying Agent shall agree with such Trustee, subject to the provisions of
this Section, that such Paying Agent will:

     (1) hold all sums held by it for the payment of the principal of (and premium, if any)
or interest, if any, on the Securities of that series in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed
of as herein provided;

     (2) give such Trustee notice of any default by the Company (or any other obligor upon
the Securities) in the making of any payment of principal (or premium, if any) and interest,
if any, on the Securities of that series; and

     (3) at any time during the continuation of any such default, upon the written request
of such Trustee, forthwith pay to such Trustee all sums so held in trust by such Paying
Agent.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee for the Securities of any series all sums held in trust by the Company or such
Paying Agent, such sums to be held by such Trustee upon the same trusts as those upon which such
sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to
such Trustee, such Paying Agent shall be released from all further liability with respect to such
money.

Section 1004. Intentionally Omitted.

Section 1005. Statements as to Compliance.

     The Company will deliver to the Trustee for each series of the Securities, within 120 days
after the end of each fiscal year, a written statement signed by the principal executive officer,
principal financial officer or principal accounting officer of the Company stating that:

     (1) a review of the activities of the Company during such year and of performance under
this Indenture has been made under his supervision; and

     (2) to the best of his knowledge, based on such review, the Company is in compliance
with all conditions and covenants under this Indenture.

     For purposes of this Section, such compliance shall be determined without regard to any period
of grace or requirement of notice provided under this Indenture.

Section 1006. Corporate Existence.

     Subject to Article Eight, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence, rights (charter and statutory)
and franchises; provided, however, that the Company shall not be required to preserve any right or
franchise if the Board of Directors of the Company shall determine that the preservation thereof is
no longer necessary or desirable in the conduct of the business of the Company.

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Section 1007. Restrictions on Secured Debt.

     (a) The Company will not itself, and will not permit any Restricted Subsidiary to, incur,
issue, assume or guarantee any notes, bonds, debentures or other similar evidences of indebtedness
for money borrowed (hereinafter in this Article called “Debt”), secured by a pledge of, or mortgage
or other lien on, any Principal Property, now owned or hereafter owned by the Company or any
Restricted Subsidiary, or any shares of Capital Stock or Debt of any Restricted Subsidiary
(hereinafter in this Article called “Lien” or “Liens”), without effectively providing that the
Securities (together with, if the Company shall so determine, any other Debt of the Company or such
Restricted Subsidiary then existing or thereafter created which is not subordinate to the
Securities) shall be secured equally and ratably with (or prior to) such secured Debt, so long as
such secured Debt shall be so secured; provided, however, that this Section shall not apply to, and
there shall be excluded from secured Debt in any computation under this Section, Debt secured by:

     (i) Liens on any Principal Property acquired (whether by merger, consolidation,
purchase, lease or otherwise), constructed or improved by the Company or any Restricted
Subsidiary after the date of this Indenture which are created or assumed prior to,
contemporaneously with, or within 360 days after, such acquisition, construction or
improvement, to secure or provide for the payment of all or any part of the cost of such
acquisition, construction or improvement (including related expenditures capitalized for
federal income tax purposes in connection therewith) incurred after the date of this
Indenture;

     (ii) Liens on any property, shares of capital stock or Debt existing at the time of
acquisition thereof, whether by merger, consolidation, purchase, lease or otherwise
(including Liens on property, shares of capital stock or indebtedness of a corporation
existing at the time such corporation becomes a Restricted Subsidiary);

     (iii) Liens in favor of, or which secure Debt owing to, the Company or any Restricted
Subsidiary;

     (iv) Liens in favor of the United States of America or any state thereof, or any
department, agency or instrumentality or political subdivision of the United States of
America or any state thereof or political entity affiliated therewith, or in favor of any
other country, or any political subdivision thereof, to secure, progress, advance or other
payments, or other obligations, pursuant to any contract or statute, or to secure any Debt
incurred for the purpose of financing all or any part of the cost of acquiring, constructing
or improving the property subject to such Liens (including Liens incurred in connection with
pollution control, industrial revenue or similar financings);

     (v) Liens imposed by law, such as mechanics’, workmen’s, repairmen’s, materialmen’s,
carriers’, warehousemen’s, vendors’ or other similar Liens arising in the ordinary course of
business, or governmental (federal, state or municipal) Liens arising out of contracts for
the sale of products or services by the Company or any Restricted Subsidiary, or deposits or
pledges to obtain the release of any of the foregoing;

     (vi) pledges or deposits under workmen’s compensation, unemployment insurance or
similar legislation and Liens of judgments thereunder which are not currently dischargeable,
or good faith deposits in connection with bids, tenders, contracts (other than for the
payment of money) or leases to which the Company or any Restricted Subsidiary is a party, or
deposits to secure public or statutory obligations of the Company or any Restricted
Subsidiary, or deposits in connection with obtaining or maintaining self-insurance or to
obtain the benefits of any law,

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regulation or arrangement pertaining to workmen’s
compensation, unemployment insurance, old age pensions, social security or similar matters,
or deposits of cash or obligations of the United States of America to secure surety, appeal
or customs bonds to which the Company or any Restricted Subsidiary is a party, or deposits
in litigation or other proceedings such as, but not limited to, interpleader proceedings;

     (vii) Liens created by or resulting from any litigation or other proceeding which is
being contested in good faith by appropriate proceedings, including Liens arising out of
judgments or awards against the Company or any Restricted Subsidiary with respect to which
the Company or such Restricted Subsidiary is in good faith prosecuting an appeal or
proceedings for review; or Liens incurred by the Company or any Restricted Subsidiary for
the purpose of obtaining a stay or discharge in the course of any litigation or other
proceeding to which the Company or such Restricted Subsidiary is a party;

     (viii) Liens for taxes or assessments or governmental charges or levies not yet due or
delinquent, or which can thereafter be paid without penalty, or which are being contested in
good faith by appropriate proceedings;

     (ix) Liens consisting of easements, rights-of-way, zoning restrictions, restrictions on
the use of real property, and defects and irregularities in the title thereto, landlords’
Liens and other similar Liens and encumbrances none of which interfere materially with the
use of the property covered thereby in the ordinary course of the business of the Company or
such Restricted Subsidiary and which do not, in the opinion of the Company, materially
detract from the value of such properties;

     (x) Liens existing on the Issue Date;

     (xi) Liens on cash and cash equivalents securing derivatives obligations; provided that
the aggregate amount of cash and cash equivalents subject to such Liens may at no time
exceed $100,000,000;

     (xii) Liens arising solely by virtue of any statutory or common law provision relating
to banker’s liens, rights of setoff or similar rights and remedies as to deposit accounts or
other funds maintained with a creditor depository institution; provided that (a) such
deposit account is not a dedicated cash collateral account and is not subject to
restrictions against access by the Company in excess of those set forth by regulations
promulgated by the Federal Reserve Board, and (b) such deposit account is not intended to
provide collateral to the depository institution; or

     (xiii) any extension, renewal or replacement (or successive extensions, renewals or
replacements), as a whole or in part, of any Lien referred to in the foregoing clauses (i)
to (xii), inclusive; provided that (1) such extension, renewal or replacement Lien shall be
limited to all or a part of the same property, shares of stock or Debt that secured the Lien
extended, renewed or replaced (plus improvements on such property) and (2) the Debt secured
by such Lien at such time is not increased.

     (b) Notwithstanding the restrictions contained in subsection (a) of this Section, the Company
and its Restricted Subsidiaries, or any of them, may incur, issue, assume or guarantee Debt secured
by Liens without equally and ratably securing the Securities of each Series then Outstanding;
provided that at the time of such incurrence, issuance, assumption or guarantee, after giving
effect thereto and to the retirement of any Debt which is concurrently being retired, the aggregate
amount of all outstanding Debt secured by Liens which could not have been incurred, issued, assumed
or guaranteed by the Company or

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a Restricted Subsidiary without equally and ratably securing the
Securities of each Series then Outstanding except for the provisions of this subdivision (b),
together with the aggregate amount of Attributable Debt incurred pursuant to subsection (b) of
Section 1008, does not at such time exceed the greater of (i) $300,000,000 or (ii) 15% of
Consolidated Net Tangible Assets of the Company.

     (c) Notwithstanding the foregoing, any Lien securing the Securities granted pursuant to this
covenant shall be automatically and unconditionally released and discharged upon the release by all
holders of the Debt secured by the Lien giving rise to the Lien securing the Securities (including
any deemed release upon payment in full of all obligations under such Debt), or, with respect to
any particular Principal Property or Capital Stock of any particular Restricted Subsidiary securing
the Securities, upon any sale, exchange or transfer to any person not an Affiliate of the Company
of such Principal Property or Capital Stock.

Section 1008. Restrictions on Sale and Leaseback Transactions.

     (a) The Company will not itself, and it will not permit any Restricted Subsidiary to, enter
into any arrangement with any bank, insurance company or other lender or investor (not including
the Company or any Restricted Subsidiary) or to which any such lender or investor is a party,
providing for the leasing by the Company or a Restricted Subsidiary for a period, including
renewals, in excess of three years of any Principal Property which has been or is to be sold or
transferred by the Company or any Restricted Subsidiary to such lender or investor or to any person
to whom funds have been or are to be advanced by such lender or investor on the security of such
Principal Property (herein referred to as a “Sale and Leaseback Transaction”) unless either:

     (i) the Company or such Restricted Subsidiary would, at the time of entering into such
arrangement, be entitled, without equally and ratably securing the Securities of each series then
Outstanding, to incur Debt secured by a Lien on such property, pursuant to paragraphs (i) to
(xiii), inclusive, of Section 1007; or

     (ii) the Company within 360 days after the sale or transfer shall have been made by the
Company or by a Restricted Subsidiary, applies an amount not less than the net proceeds of the sale
of the Principal Property sold and leased back pursuant to such arrangement to (x) the retirement
of Funded Debt of the Company; provided that the amount to be applied to the retirement of Funded
Debt of the Company shall be reduced by (1) the principal amount of any Securities delivered within
360 days after such sale to the Trustee for retirement and cancellation, and (2) the principal
amount of Funded Debt, other than the Securities, voluntarily retired by the Company within 360
days after such sale or (y) the purchase, construction or development of other property, facilities
or equipment used or useful in the Company’s or its Restricted Subsidiaries’ business.
Notwithstanding the foregoing, no retirement referred
to in this clause (a)(ii) may be effected by payment at maturity or pursuant to any mandatory
sinking fund payment or mandatory prepayment provision. This restriction will not apply to a Sale
and Leaseback Transaction between the Company and a Restricted Subsidiary or between Restricted
Subsidiaries or involving the taking back of a lease for a period of less than three years.

     (b) Notwithstanding the restrictions contained in subsection (a) of this Section, the Company
and its Restricted Subsidiaries, or any of them, may enter into a Sale and Leaseback Transaction;
provided that at the time of such transaction, after giving effect thereto and to the retirement of
any Funded Debt which is concurrently being retired, the aggregate amount of all Attributable Debt
in respect of Sale and Leaseback Transactions existing at such time which could not have been
entered into except for the provisions of this subsection (b), together with the aggregate amount
of all outstanding Debt incurred pursuant to subsection (b) of Section 1007, does not at such time
exceed the greater of (i) $300,000,000 or (ii) 15% of Consolidated Net Tangible Assets of the
Company.

-56-

 

     (c) A Sale and Leaseback Transaction shall not be deemed to result in the creation of a Lien.

Section 1009. Reports By Company.

     The Company shall:

     (1)
file with the Trustee (electronically or in hard copy), within 15 days after the Company files the
same with the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which the Company may be required to file
with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the
Company is not required to file information, documents or reports pursuant to either of said
Sections, then it shall file with the Trustee and the Commission, in accordance with the
rules and regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be required pursuant
to Section 13 of the Exchange Act in respect of a security listed and registered on a
national securities exchange as may be prescribed from time to time in such rules and
regulations; notwithstanding anything to the contrary herein, the Trustee shall have no duty
to review such documents for the purposes of determining compliance with any provision of
this Indenture;

     (2) file with the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information, documents and
reports with respect to compliance by the Company with the conditions and covenants of this
Indenture as may be required from time to time by such rules and regulations; and

     (3) transmit by mail to all Holders, as their names and addresses appear in the
Security Register, within 30 days after the filing thereof with the Trustee, such summaries
of any information, documents and reports required to be filed by the Company pursuant to
paragraphs (1) and (2) of this Section as may be required by the rules and regulations
prescribed from time to time by the Commission; provided the Company will be deemed to have
furnished such reports to Holders of the Securities if it has filed such reports with the
Commission using the EDGAR filing system and such reports are publicly available via EDGAR.

     Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with
any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officers’ Certificates).

Section 1010. Statement by Officers as to Default.

     The Company shall deliver to the Trustee, as promptly as practicable and in any event within 10
business days after the Company becomes aware of the occurrence of a breach of a covenant in this
Article 10 or an Event of Default specified in Section 501(4) or (5), an Officers’ Certificate
setting forth the details of such breach or Event of Default and the action which the Company
proposes to take with respect thereto.

-57-

 

ARTICLE 11

Redemption of Securities

Section 1101. Applicability of This Article.

     Redemption of the Securities of any series (whether by operation of a sinking fund or
otherwise) as permitted or required by any form of Security issued pursuant to this Indenture shall
be made in accordance with such form of Security and this Article; provided, however, that if any
provision of any such form of Security shall conflict with any provision of this Article, the
provision of such form of Security shall govern.

Section 1102. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities of any series shall be evidenced by or
pursuant to a Board Resolution. In case of any redemption at the election of the Company of less
than all of the Securities of any particular series, the Company shall, at least 30 days prior to
the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee for the Securities of such series) notify such Trustee in writing by Company Request of
such Redemption Date and of the principal amount of the Securities of that series to be redeemed
and provide the additional information required to be included in the notice or notices
contemplated by Section 1104 and shall deliver to such Trustee such documentation and records as
shall enable such Trustee to select the Securities to be redeemed pursuant to Section 1103. In the
case of any redemption of the Securities of any series prior to the expiration of any restriction
on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee for the Securities of such series with an Officers’ Certificate
evidencing compliance with such restriction.

Section 1103. Selection by Trustee of Securities to Be Redeemed.

     If less than all the Securities are to be redeemed, the Company may select the series to be
redeemed, and if less than all the Securities of any series are to be redeemed, the particular
Securities of that series to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee for the Securities of such series, from the Outstanding Securities
of that series not previously called for redemption, by such method as such Trustee shall deem fair
and appropriate and which may provide for the selection for redemption of portions (equal to the
minimum authorized denomination for the Securities of that series, or any integral multiple
thereof) of the principal amount of the Securities of that series of a denomination larger than the
minimum authorized denomination for the Securities of that series pursuant to Section 302 in the
currency or currency unit in which the Securities of such series are denominated.

     The Trustee for the Securities of any series to be redeemed shall promptly notify the Company
in writing of the Securities of such series selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to be redeemed.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of the Securities shall relate, in the case of any Security redeemed or
to be redeemed only in part, to the portion of the principal amount of such Securities which has
been or is to be redeemed.

     Notwithstanding anything else contained in this Section 1103, the selection of the Securities,
or portions thereof, that are represented by a Global Security or that are held by or on behalf of
a Depositary, in the case of any partial redemption, shall also be made in accordance with the
applicable rules and

-58-

 

procedures of such Depositary and neither the Trustee nor the Company shall
have any liability or responsibility with respect thereto.

Section 1104. Notice of Redemption.

     Notice of redemption shall be given in the manner provided in Section 106 not later than the
thirtieth (30th) day and not earlier than the sixtieth (60th) day prior to
the Redemption Date, to each Holder of the Securities to be redeemed.

     All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price,

     (3) if less than all of the Outstanding Securities of a particular series are to be
redeemed, the identification (and, in the case of partial redemption, the respective
principal amounts) of the particular Securities to be redeemed, including the Identifying
Number of such Securities,

     (4) in case any Security is to be redeemed in part only, the notice which relates to
such Security shall state that on and after the Redemption Date, upon surrender of such
Security, the Holder will receive, without charge, a new Security or Securities of
authorized denominations for the principal amount thereof remaining unredeemed,

     (5) that on the Redemption Date the Redemption Price will become due and payable upon
each such Security or portion thereof, and that interest thereon, if any, shall cease to
accrue on and after said date,

     (6) the place or places where such Securities are to be surrendered for payment of the
Redemption Price and accrued interest, if any,

     (7) that the redemption is for a sinking fund, if such is the case,

     (8) the name and address of the Paying Agent,

     (9) that the Securities called for redemption must be surrendered to the Paying Agent
to collect the redemption price,

     (10) CUSIP numbers, if any,

     (11) that no representation is made as to the accuracy or correctness of the CUSIP
numbers listed in such notice or printed on the Securities, and

     (12) such other provisions as may be required in respect of the terms of a particular
series of the Securities.

     Notice of redemption of the Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request delivered to the Trustee at least 5 days before
such notice is to be given (unless a shorter period shall be acceptable to the Trustee), by the
Trustee for such Securities in the name and at the expense of the Company.

-59-

 

Section 1105. Deposit of Redemption Price.

     Prior to the opening of business on any Redemption Date, the Company shall deposit with the
Trustee for the Securities to be redeemed or with a Paying Agent for such Securities (or, if the
Company is acting as its own Paying Agent for such Securities, segregate and hold in trust as
provided in Section 1003) an amount of money in the currency or currency unit in which the
Securities of such series are payable (except as otherwise specified pursuant to Section 301 for
the Securities of such Series) sufficient to pay the principal amount of (and premium, if any,
thereon), and (except if the Redemption Date shall be an Interest Payment Date) any accrued
interest on, all the Securities which are to be redeemed on that date.

Section 1106. Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified in the
currency or currency unit in which the Securities of such series are payable (except as otherwise
provided pursuant to Section 301 for the Securities of such series) and from and after such date
(unless the Company shall default in the payment of the Redemption Price) such Securities shall
cease to bear interest. Upon surrender of such Security for redemption in accordance with said
notice, such Security or specified portions thereof shall be paid by the Company at the Redemption
Price; provided, that unless otherwise specified as contemplated by Section 301, installments of
interest on the Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Securities, or one or more Predecessor Securities, registered as
such at the close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal thereof (and premium, if any, thereon) shall, until paid, bear interest
from the Redemption Date at a rate per annum equal to the rate borne by the Security.

Section 1107. Securities Redeemed in Part.

     Any Security which is to be redeemed only in part shall be surrendered at the Place of Payment
(with, if the Company or the Trustee for such Security so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company, and the Security Registrar for
such Security duly executed by, the Holder thereof or his attorney duly authorized in writing), and
the Company shall execute and such Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Security or Securities, of any authorized denomination as
requested by such Holder, of the same series and having the same terms and provisions and in an
aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered; provided, however, that if a Global Security is so surrendered, such
new Security so issued shall be a new Global
Security in a denomination equal to the unredeemed portion of the principal of the Global
Security so surrendered.

Section 1108. Optional Redemption

     (a) Unless otherwise specified pursuant to Section 301 hereof, except as set forth in clause
(b) of this Section 1108, the Securities shall not be redeemable at the Company’s option.

     (b) Unless otherwise specified pursuant to Section 301 hereof, the Company may redeem the
Securities of any series, at its option, at any time in whole, or from time to time in part, at a
price equal to the greater of (1) 100% of the principal amount of the Securities to be redeemed and
(2) the sum of the

-60-

 

present values of the remaining scheduled payments on such series of the
Securities to be redeemed consisting of principal and interest, exclusive of interest accrued to
the date of redemption, discounted to the date of redemption on a semiannual basis (assuming a
360-day year consisting of twelve 30-day months) at the applicable Treasury Yield plus the number
of basis points specified in the supplemental indenture, Board Resolution or Officers’ Certificate
pursuant to which the Securities of a series are issued, plus accrued interest to the date of
redemption.

     (c) The Company shall calculate the redemption price with respect to the Securities of any
series in accordance with the terms and provisions of this Indenture.

     Any redemption pursuant to this Section 1108 shall be made pursuant to the provisions of
Sections 1101 through 1107 hereof.

ARTICLE 12

Sinking Funds

Section 1201. Applicability of this Article.

     Redemption of the Securities through operation of a sinking fund as permitted or required by
any form of the Security issued pursuant to this Indenture shall be made in accordance with such
form of the Security and this Article; provided, however, that if any provision of any such form of
the Security shall conflict with any provision of this Article, the provision of such form of the
Security shall govern.

     The minimum amount of any sinking fund payment provided for by the terms of the Securities of
any particular series is herein referred to as a “mandatory sinking fund payment”, and any payment
in excess of such minimum amount provided for by the terms of the Securities of any particular
series is herein referred to as an “optional sinking fund payment”. If provided for by the terms
of the Securities of any particular series, the cash amount of any sinking fund payment may be
subject to reduction as provided in Section 1202. Each sinking fund payment shall be applied to
the redemption of the Securities of any particular series as provided for by the terms of the
Securities of that series.

Section 1202. Satisfaction of Sinking Fund Payments With Securities.

     The Company (1) may deliver the Outstanding Securities of a series (other than any previously
called for redemption), and (2) may apply as a credit the Securities of a series which have been
redeemed either at the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series
required to be made pursuant to the terms of such Securities as provided for by the terms of
such series; provided, however, that such Securities have not been previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee for such Securities at
the principal amount thereof and the amount of such sinking fund payment shall be reduced
accordingly.

Section 1203. Redemption of Securities for Sinking Fund.

     Not less than 60 days prior to each sinking fund payment date for any particular series of the
Securities, the Company will deliver to the Trustee for the Securities of such series an Officers’
Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that
series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied
by payment of cash

-61-

 

in the currency or currency unit in which the Securities of that series are
payable (except as otherwise specified pursuant to Section 301 for the Securities of that series)
and the portion thereof, if any, which is to be satisfied by delivering and crediting the
Securities of that series pursuant to Section 1202 and shall state the basis for such credit and
that such Securities have not previously been so credited and will also deliver to such Trustee any
Securities to be so delivered. Such Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner
provided in Section 1104. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 1106 and 1107.

* * *

     This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as
of the day and year first above written.

	 	 	 	 	 
	 	THE CLOROX COMPANY, 

  Issuer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.,

  Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-62-

 

Exhibit A

[Insert Global Security Legend, if applicable, pursuant to the

provisions of the Indenture].

THE CLOROX COMPANY

% Senior Notes due

			
	 	 	 
	No.         
            
	 	CUSIP NO. ___
	 
	 	ISIN NO. ___
	 	 	 
	 
	 	$         
            
	 
	 	[as revised by “Exchanges of Interests
	 
	 	in the Global Security,” attached hereto]1

      
    The Clorox Company, a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company,” which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to                                 , or registered assigns,
the principal sum of                     Dollars[, or such greater or lesser amount set forth on “Exchanges of
Interests in the Global Security,” attached hereto,]1 on                     and to pay interest thereon from                     or from
the most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on                     and                      in each year, commencing                        , at the rate of        % per annum, until the
principal
hereof is paid or made available for payment; provided that any principal and any such installment
of interest that is overdue shall bear interest at the rate of                % per annum (to the extent that
payment of such interest shall be legally enforceable) from the dates such amounts are due until
they are paid or made available for payment. Interest will be computed on the basis of a 360-day
year of twelve 30-day months. The interest so payable, and punctually paid or duly provided for
(except for Defaulted Interest), on any Interest Payment Date will, as provided in the Indenture,
be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the                          or                           (whether or not a Business Day), as the case may be, next preceding such Interest Payment
Date even if the Securities are cancelled, repurchased or redeemed after the Regular Record Date
and on or before the Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities not
less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on which the Securities
may be listed, and upon such notice as may be required by such exchange, all as more fully provided
in said Indenture.

      
    [If this is not a Global Security, payment of the principal of (and premium, if any) and
interest on this Security will be made at the office or agency of the Company maintained for that
purpose in                     , in such coin or currency of the United States of America as at the time of

 

			
	1	 	If this Security is a Global Security, include this provision.

 

 

payment is legal tender for payment of public and private debts; provided, however, that
payments of interest will be made by wire transfer if a Holder of at least $1,000,000 in principal
amount of the Securities has given wire transfer instructions to the Trustee at least 15 business
days prior to the applicable Interest Payment Date.] [Payments in respect of the Securities
represented by a Global Security (including principal, premium, if any, and interest) will be made
by the transfer of immediately available funds to the accounts specified by DTC or any successor
depositary.]2

          Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

 

			
	2	 	If this Security is a Global Security, include this provision.

A-2 

 

          Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

          In Witness Whereof, the Company has caused this instrument to be duly executed.

Dated:

	 	 	 	 	 
	 	THE CLOROX COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

          This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

Dated:

	 	 	 	 	 
	THE BANK OF NEW YORK TRUST COMPANY, N.A.,

  as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

A-3 

 

(Form of Reverse of Security)

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued under an Indenture, dated as of [                 ], 2007 (herein called
the       “Indenture”, which term shall have the meaning assigned to it in such instrument), between the
Company and The Bank of New York Trust Company, N.A., as trustee (herein called the “Trustee”,
which term includes any successor trustee under the Indenture), and reference is hereby made to the
Indenture and all indentures supplemental thereto for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders
of the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered.

     The Securities are subject to redemption prior to the Stated Maturity upon not less than 30
nor more than 60 days’ notice by mail, at any time, as a whole or from time to time, in part, at
the election of the Company, at a Redemption Price equal to the greater of (1) 100% of the
principal amount of the Securities to be redeemed or (2) the sum of the present values of the
remaining scheduled payments on the Securities to be redeemed consisting of principal and interest,
exclusive of interest accrued to the Redemption Date, discounted to the redemption date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Yield plus                basis points, plus accrued and unpaid interest to the Redemption Date; provided interest
installments whose Stated Maturity is on or prior to such Redemption Date will be payable to the
Holders of such Securities of record at the close of business on the relevant Regular Record Dates
referred to on the face hereof, all as provided in the Indenture.

     In the event of redemption or repurchase of this Security in part only, a new Security or
Securities of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     The Indenture contains provisions for defeasance at any time of the entire indebtedness of
this Security or certain restrictive covenants and Events of Default with respect to this Security,
in each case upon compliance with certain conditions set forth in the Indenture.

     If an Event of Default with respect to the Securities shall occur and be continuing, the
principal of the Securities may be declared due and payable in the manner and with the effect
provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification or waiver of the rights and obligations of the Company and the rights of the
Holders of the Securities to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of more than 50% in aggregate principal amount of the
Securities at the time Outstanding to be affected. The Indenture also contains provisions
permitting the Holders of more than 50% in aggregate principal amount of the Securities at the time
Outstanding, on behalf of the Holders of all of the Securities, to waive compliance with certain
provisions of the Indenture and certain past Defaults (other than with respect to nonpayment or in
respect of a provision that cannot be amended without the written consent of each Holder affected)
under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of

A-4 

 

a receiver or trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default with respect to the
Securities, the Holders of not less than 25% in aggregate principal amount of the Securities at the
time Outstanding shall have made written request to the Trustee to institute proceedings in respect
of such Event of Default as Trustee and offered the Trustee satisfactory indemnity, and the Trustee
shall not have received from the Holders of a majority in aggregate principal amount of the
Securities at the time Outstanding a direction inconsistent with such request, and shall have
failed to institute any such proceeding, for 60 days after receipt of such notice, request and
offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this
Security for the enforcement of any payment of principal hereof or any premium or interest hereon
on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or its attorney duly authorized in writing,
and thereupon one or more new Securities of like tenor, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or transferees.

     The Securities are issuable only in registered form without coupons in denominations of $2,000
and integral multiples of $1,000 thereof. As provided in the Indenture and subject to certain
limitations therein set forth, the Securities are exchangeable for a like aggregate principal
amount of the Securities of like tenor of a different authorized denomination, as requested by the
Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     The Indenture and the Securities shall be governed by, and construed in accordance with, the
laws of the State of New York.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

A-5 

 

ASSIGNMENT FORM

To assign this Security, fill in the form below and have your signature guaranteed:
(I) or (we) assign and transfer this Note to

	 	 	 
	 

(Insert assignee’s soc. sec. or tax I.D. no.)

	 	 
	 
	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

(Print or type assignee’s name, address and zip code)

	 	 

and irrevocably appoint   
                
               
               
               
                   
                
               
        agent
to transfer this Security on the books of the Company. The agent may substitute another to act for
him.

	 	 	 	 	 
	 
	 
	 	 	 	 
	Date:

	 	Your Name:  	 	 
	 
	 	 	 	 
	 

	 	 	(Print your name exactly as it appears on the face

 of this Note)
	 
	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	(Sign exactly as your name appears on the face of

 this Note)
	 
	 	 	 	 
	 

	Signature Guarantee*:	 	 
	 

	 	 	 	 

 

			
	*    Participant in a recognized Signature Guarantee Medallion Program
(or other signature guarantor acceptable to the Trustee).

A-6 

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Security purchased by the Company pursuant to Section [
] of the Indenture, check the box below:

     [_] Section [       ]

     If you want to elect to have only part of the Note purchased by the Company pursuant to
Section [  ] of the Indenture, state the amount you elect to have purchased:

	 	 	 	 	 
	$                     
	 	 	 	 
	 
	 	 	 	 
	Date:                     

	 	Your Signature:	 	 
	 

	 	  

	 

	 	 	  (Sign exactly as your name appears on the face of this Note)
	 
	 	 	 	 
	 

	 	Tax Identification No:
	 

	 	 

	 
	 	 	 	 
	Signature Guarantee*:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	(*Participant in a Recognized Signature
	 	 	 	 
	Guarantee Medallion Program)
	 	 	 	 

A-7 

 

EXCHANGES
OF INTERESTS IN THE GLOBAL SECURITY3

     The following exchanges of a part of this Global Security for an interest in another Global
Security or for a definitive Security, or exchanges of a part of another Global Security or
definitive Security for an interest in this Global Security, have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Principal	 	Signature of
	 	 	 	 	Amount of	 	Amount of	 	Amount of this	 	authorized
	 	 	 	 	decrease in	 	increase in	 	Global Security	 	signatory of
	 	 	 	 	Principal	 	Principal	 	following such	 	Trustee or
	Date of	 	Amount of this	 	Amount of this	 	decrease (or	 	Security
	Exchange	 	Global Security	 	Global Security	 	increase)	 	Custodian

 

			
	3	 	If this Security is a Global Security, include this provision.

A-8exv10w1

 

Exhibit 10.1

	 	 	 
	Execution Version
	 	 
	 

Eagle Materials Inc.

$20,000,000 6.08% Series 2007A Senior Notes, Tranche A

due October 2, 2014

$50,000,000 6.27% Series 2007A Senior Notes, Tranche B

due October 2, 2016

$70,000,000 6.36% Series 2007A Senior Notes, Tranche C

due October 2, 2017

$60,000,000 6.48% Series 2007A Senior Notes, Tranche D

due October 2, 2019

 

Note Purchase Agreement

 

Dated as of October 2, 2007

 

 

 

Table of Contents

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page
	Section 1.
	 	Authorization of Notes	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.1.
	 	Description of Notes	 	 	1	 
	Section 1.2.
	 	Interest Rate	 	 	2	 
	 
	 	 	 	 	 	 
	Section 2.
	 	Sale and Purchase of Notes	 	 	2	 
	 
	 	 	 	 	 	 
	Section 2.1.
	 	Series 2007A Notes	 	 	2	 
	Section 2.2.
	 	Additional Series of Notes	 	 	2	 
	Section 2.3.
	 	Subsidiary Guaranty	 	 	4	 
	 
	 	 	 	 	 	 
	Section 3.
	 	Closing	 	 	5	 
	 
	 	 	 	 	 	 
	Section 4.
	 	Conditions to Closing	 	 	5	 
	 
	 	 	 	 	 	 
	Section 4.1.
	 	Representations and Warranties	 	 	5	 
	Section 4.2.
	 	Performance; No Default	 	 	5	 
	Section 4.3.
	 	Compliance Certificates	 	 	6	 
	Section 4.4.
	 	Opinions of Counsel	 	 	6	 
	Section 4.5.
	 	Purchase Permitted By Applicable Law, Etc.	 	 	6	 
	Section 4.6.
	 	Sale of Other Notes	 	 	7	 
	Section 4.7.
	 	Payment of Special Counsel Fees	 	 	7	 
	Section 4.8.
	 	Private Placement Number	 	 	7	 
	Section 4.9.
	 	Changes in Corporate Structure	 	 	7	 
	Section 4.10.
	 	Subsidiary Guaranty	 	 	7	 
	Section 4.11.
	 	Funding Instructions	 	 	7	 
	Section 4.12.
	 	Proceedings and Documents	 	 	7	 
	 
	 	 	 	 	 	 
	Section 5.
	 	Representations and Warranties of the Company	 	 	8	 
	 
	 	 	 	 	 	 
	Section 5.1.
	 	Organization; Power and Authority	 	 	8	 
	Section 5.2.
	 	Authorization, Etc.	 	 	8	 
	Section 5.3.
	 	Disclosure	 	 	8	 
	Section 5.4.
	 	Organization and Ownership of Shares of Subsidiaries; Affiliates	 	 	8	 
	Section 5.5.
	 	Financial Statements; Material Liabilities	 	 	9	 
	Section 5.6.
	 	Compliance with Laws, Other Instruments, Etc.	 	 	9	 
	Section 5.7.
	 	Governmental Authorizations, Etc.	 	 	10	 
	Section 5.8.
	 	Litigation; Observance of Agreements, Statutes and Orders	 	 	10	 
	Section 5.9.
	 	Taxes	 	 	10	 
	Section 5.10.
	 	Title to Property; Leases	 	 	10	 
	Section 5.11.
	 	Licenses, Permits, Etc.	 	 	11	 
	Section 5.12.
	 	Compliance with ERISA	 	 	11	 
	Section 5.13.
	 	Private Offering by the Company	 	 	12	 

-i- 

 

Table of Contents

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page
	Section 5.14.
	 	Use of Proceeds; Margin Regulations	 	 	12	 
	Section 5.15.
	 	Existing Debt; Future Liens	 	 	12	 
	Section 5.16.
	 	Foreign Assets Control Regulations, Etc.	 	 	13	 
	Section 5.17.
	 	Status under Certain Statutes	 	 	13	 
	Section 5.18.
	 	Environmental Matters	 	 	13	 
	Section 5.19.
	 	Notes Rank Pari Passu	 	 	14	 
	 
	 	 	 	 	 	 
	Section 6.
	 	Representations of the Purchaser	 	 	14	 
	 
	 	 	 	 	 	 
	Section 6.1.
	 	Purchase for Investment	 	 	14	 
	Section 6.2.
	 	Accredited Investor	 	 	14	 
	Section 6.3.
	 	Source of Funds	 	 	15	 
	 
	 	 	 	 	 	 
	Section 7.
	 	Information as to Company	 	 	16	 
	 
	 	 	 	 	 	 
	Section 7.1.
	 	Financial and Business Information	 	 	16	 
	Section 7.2.
	 	Officer’s Certificate	 	 	19	 
	Section 7.3.
	 	Visitation	 	 	20	 
	 
	 	 	 	 	 	 
	Section 8.
	 	Payment of the Notes	 	 	20	 
	 
	 	 	 	 	 	 
	Section 8.1.
	 	Required Prepayments	 	 	20	 
	Section 8.2.
	 	Optional Prepayments with Make-Whole Amount	 	 	20	 
	Section 8.3.
	 	Allocation of Partial Prepayments	 	 	21	 
	Section 8.4.
	 	Maturity; Surrender, Etc.	 	 	21	 
	Section 8.5.
	 	Purchase of Notes	 	 	21	 
	Section 8.6.
	 	Make-Whole Amount for the Series 2007A Notes	 	 	22	 
	Section 8.7.
	 	Change in Control	 	 	23	 
	 
	 	 	 	 	 	 
	Section 9.
	 	Affirmative Covenants	 	 	24	 
	 
	 	 	 	 	 	 
	Section 9.1.
	 	Compliance with Law	 	 	24	 
	Section 9.2.
	 	Insurance	 	 	25	 
	Section 9.3.
	 	Maintenance of Properties	 	 	25	 
	Section 9.4.
	 	Payment of Taxes and Claims	 	 	25	 
	Section 9.5.
	 	Corporate Existence, Etc.	 	 	25	 
	Section 9.6.
	 	Designation of Subsidiaries	 	 	25	 
	Section 9.7.
	 	Notes to Rank Pari Passu	 	 	26	 
	Section 9.8.
	 	Additional Subsidiary Guarantors	 	 	26	 
	Section 9.9.
	 	Books and Records	 	 	27	 
	 
	 	 	 	 	 	 
	Section 10.
	 	Negative Covenants	 	 	27	 
	 
	 	 	 	 	 	 
	Section 10.1.
	 	Consolidated Debt to Consolidated EBITDA	 	 	27	 
	Section 10.2.
	 	Priority Debt	 	 	27	 
	Section 10.3.
	 	Interest Coverage Ratio	 	 	27	 
	Section 10.4.
	 	Limitation on Liens	 	 	27	 
	Section 10.5.
	 	Sales of Assets	 	 	29	 
	Section 10.6.
	 	Merger and Consolidation	 	 	30	 

-ii- 

 

Table of Contents

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page
	Section 10.7.
	 	Transactions with Affiliates	 	 	31	 
	Section 10.8.
	 	Terrorism Sanctions Regulations	 	 	31	 
	Section 10.9.
	 	Restricted Subsidiary Group	 	 	31	 
	 
	 	 	 	 	 	 
	Section 11.
	 	Events of Default	 	 	32	 
	 
	 	 	 	 	 	 
	Section 12.
	 	Remedies on Default, Etc.	 	 	34	 
	 
	 	 	 	 	 	 
	Section 12.1.
	 	Acceleration	 	 	34	 
	Section 12.2.
	 	Other Remedies	 	 	35	 
	Section 12.3.
	 	Rescission	 	 	35	 
	Section 12.4.
	 	No Waivers or Election of Remedies, Expenses, Etc.	 	 	35	 
	 
	 	 	 	 	 	 
	Section 13.
	 	Registration; Exchange; Substitution of Notes	 	 	35	 
	 
	 	 	 	 	 	 
	Section 13.1.
	 	Registration of Notes	 	 	35	 
	Section 13.2.
	 	Transfer and Exchange of Notes	 	 	36	 
	Section 13.3.
	 	Replacement of Notes	 	 	36	 
	 
	 	 	 	 	 	 
	Section 14.
	 	Payments on Notes	 	 	37	 
	 
	 	 	 	 	 	 
	Section 14.1.
	 	Place of Payment	 	 	37	 
	Section 14.2.
	 	Home Office Payment	 	 	37	 
	 
	 	 	 	 	 	 
	Section 15.
	 	Expenses, Etc.	 	 	37	 
	 
	 	 	 	 	 	 
	Section 15.1.
	 	Transaction Expenses	 	 	37	 
	Section 15.2.
	 	Survival	 	 	38	 
	 
	 	 	 	 	 	 
	Section 16.
	 	Survival of Representations and Warranties; Entire Agreement	 	 	38	 
	 
	 	 	 	 	 	 
	Section 17.
	 	Amendment and Waiver	 	 	38	 
	 
	 	 	 	 	 	 
	Section 17.1.
	 	Requirements	 	 	38	 
	Section 17.2.
	 	Solicitation of Holders of Notes	 	 	39	 
	Section 17.3.
	 	Binding Effect, Etc.	 	 	40	 
	Section 17.4.
	 	Notes Held by Company, Etc.	 	 	40	 
	 
	 	 	 	 	 	 
	Section 18.
	 	Notices	 	 	40	 
	 
	 	 	 	 	 	 
	Section 19.
	 	Reproduction of Documents	 	 	41	 
	 
	 	 	 	 		 
	Section 20.
	 	Confidential Information	 	 	41	 
	 
	 	 	 	 	 	 
	Section 21.
	 	Substitution of Purchaser	 	 	42	 
	 
	 	 	 	 	 	 
	Section 22.
	 	Miscellaneous	 	 	43	 

-iii- 

 

Table of Contents

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page
	Section 22.1.
	 	Successors and Assigns	 	 	43	 
	Section 22.2.
	 	Payments Due on Non-Business Days	 	 	43	 
	Section 22.3.
	 	Accounting Terms	 	 	43	 
	Section 22.4.
	 	Severability	 	 	43	 
	Section 22.5.
	 	Construction	 	 	43	 
	Section 22.6.
	 	Counterparts	 	 	44	 
	Section 22.7.
	 	Governing Law	 	 	44	 
	Section 22.8.
	 	Jurisdiction and Process; Waiver of Jury Trial	 	 	44	 

-iv- 

 

	 	 	 	 	 
	Schedule A

	 	—
	 	Information Relating to Purchasers
	 
	 	 	 	 
	Schedule B

	 	—
	 	Defined Terms
	 
	 	 	 	 
	Schedule 4.9

	 	—
	 	Changes in Corporate Structure
	 
	 	 	 	 
	Schedule 5.4

	 	—
	 	Subsidiaries of the Company, Ownership of Subsidiary Stock, Affiliates
	 
	 	 	 	 
	Schedule 5.5

	 	—
	 	Financial Statements
	 
	 	 	 	 
	Schedule 5.11

	 	—
	 	Licenses, Permits, Etc.
	 
	 	 	 	 
	Schedule 5.15

	 	—
	 	Existing Debt; Future Liens
	 
	 	 	 	 
	Schedule 10.4

	 	—
	 	Existing Liens
	 
	 	 	 	 
	Exhibit 1(a)

	 	—
	 	Form of 6.08% Series 2007A Senior Notes, Tranche A, due October 2, 2014
	 
	 	 	 	 
	Exhibit 1(b)

	 	—
	 	Form of 6.27% Series 2007A Senior Notes, Tranche B, due October 2, 2016
	 
	 	 	 	 
	Exhibit 1(c)

	 	—
	 	Form of 6.36% Series 2007A Senior Notes, Tranche C, due October 2, 2017
	 
	 	 	 	 
	Exhibit 1(d)

	 	—
	 	Form of 6.48% Series 2007A Senior Notes, Tranche D, due October 2, 2019
	 
	 	 	 	 
	Exhibit 2.3

	 	—
	 	Form of Subsidiary Guaranty
	 
	 	 	 	 
	Exhibit 4.4(a)

	 	—
	 	Form of Opinion of General Counsel to the Company
	 
	 	 	 	 
	Exhibit 4.4(b)

	 	—
	 	Form of Opinion of Special Counsel to the Company
	 
	 	 	 	 
	Exhibit 4.4(c)

	 	—
	 	Form of Opinion of Special Counsel to the Purchasers
	 
	 	 	 	 
	Exhibit S

	 	—
	 	Form of Supplement to Note Purchase Agreement

-v- 

 

Eagle Materials Inc.

3811 Turtle Creek Blvd., Suite 1100

Dallas, Texas 75219

$20,000,000 6.08% Series 2007A Senior Notes, Tranche A,

due October 2, 2014

$50,000,000 6.27% Series 2007A Senior Notes, Tranche B,

due October 2, 2016

$70,000,000 6.36% Series 2007A Senior Notes, Tranche C,

due October 2, 2017

$60,000,000 6.48% Series 2007A Senior Notes, Tranche D,

due October 2, 2019

Dated as of

October 2, 2007

To the Purchasers listed in

     the attached Schedule A:

Ladies and Gentlemen:

     Eagle Materials Inc., a Delaware corporation (the “Company”), agrees with the
Purchasers listed in the attached Schedule A (the “Purchasers”) to this Note Purchase Agreement
(this “Agreement”) as follows:

Section 1. Authorization of Notes.

     Section 1.1. Description of Notes. The Company will authorize the issue and sale of the
following Senior Notes:

	 	 	 	 	 	 	 	 	 
	Issue
	 	Series and/or

Tranche
	 	Aggregate

Principal

Amount
	 	Interest Rate
	 	Maturity Date
	Senior Notes
	 	Series 2007A,

Tranche A
	 	$20,000,000
	 	6.08%
	 	October 2, 2014
	 	 	 	 	 	 	 	 	 
	Senior Notes
	 	Series 2007A,

Tranche B
	 	$50,000,000
	 	6.27%
	 	October 2, 2016

 

 

			
	Eagle Materials Inc.
	 	Note Purchase Agreement

	 	 	 	 	 	 	 	 	 
	Issue
	 	Series and/or

Tranche
	 	Aggregate

Principal

Amount
	 	Interest Rate
	 	Maturity Date
	Senior Notes
	 	Series 2007A,

Tranche C
	 	$70,000,000
	 	6.36%
	 	October 2, 2017
	 	 	 	 	 	 	 	 	 
	Senior Notes
	 	Series 2007A,

Tranche D
	 	$60,000,000
	 	6.48%
	 	October 2, 2019

          The Senior Notes described above are individually referred to respectively as the “Tranche A
Notes”, the “Tranche B Notes”, the “Tranche C Notes” and the “Tranche D Notes” and are collectively
referred to as the “Series 2007A Notes”. The Series 2007A Notes, together with each Series of
Additional Notes which may from time to time be issued pursuant to the provisions of Section 2.2,
are collectively referred to as the “Notes” (such term shall also include any such notes issued in
substitution therefor pursuant to Section 13 of this Agreement). The Tranche A Notes, the Tranche
B Notes, the Tranche C Notes and the Tranche D Notes shall be substantially in the form set out in
Exhibit 1(a), Exhibit 1(b), Exhibit 1(c) and Exhibit 1(d), respectively, with such changes
therefrom, if any, as may be approved by the Purchasers and the Company. Certain capitalized terms
used in this Agreement are defined in Schedule B; references to a “Schedule” or an “Exhibit” are,
unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.

     Section 1.2. Interest Rate. (a) The Series 2007A Notes shall bear interest (computed on the
basis of a 360-day year of twelve 30-day months) on the unpaid principal thereof from the date of
issuance at their respective stated rates of interest, payable semi-annually in arrears on the 2nd
day of April and October and at maturity, commencing on April 2, 2008, until such principal sum
shall have become due and payable (whether at maturity, upon notice of prepayment or otherwise),
and interest (so computed) on any overdue principal, interest or Make-Whole Amount shall accrue
from the due date thereof (whether by acceleration or otherwise) at the applicable Default Rate
until paid.

Section 2. Sale and Purchase of Notes.

     Section 2.1. Series 2007A Notes. Subject to the terms and conditions of this Agreement, the
Company will issue and sell to each Purchaser and each Purchaser will purchase from the Company, at
the Closing provided for in Section 3, the Series 2007A Notes of the tranches and in the respective
principal amounts specified opposite such Purchaser’s name in Schedule A at the purchase price of
100% of the principal amount thereof. The obligations of each Purchaser hereunder are several and
not joint obligations, and each Purchaser shall have no obligation and no liability to any Person
for the performance or nonperformance by any other Purchaser hereunder.

     Section 2.2. Additional Series of Notes. The Company may, from time to time, in its sole
discretion but subject to the terms hereof, issue and sell one or more additional Series of its
unsecured promissory notes under the provisions of this Agreement pursuant to a supplement (a
“Supplement”) substantially in the form of Exhibit S, provided that the aggregate principal amount
of Notes of all Series issued pursuant to all Supplements in accordance with the terms of

-2-

 

			
	Eagle Materials Inc.
	 	Note Purchase Agreement

this Section 2.2 shall not exceed $500,000,000. Each additional Series of Notes (the “Additional
Notes”) issued pursuant to a Supplement shall be subject to the following terms and conditions:

     (i) each Series of Additional Notes, when so issued, shall be differentiated from all
previous Series by sequential yearly and alphabetical designation inscribed thereon;

     (ii) Additional Notes of the same Series may consist of more than one different and
separate tranches and may differ with respect to outstanding principal amounts, maturity
dates, interest rates and premiums, if any, and price and terms of redemption or payment
prior to maturity, but all such different and separate tranches of the same Series shall
vote as a single class and constitute one Series;

     (iii) each Series of Additional Notes shall be dated the date of issue, bear interest
at such rate or rates, mature on such date or dates, be subject to such mandatory and
optional prepayment on the dates and at the premiums, if any, have such additional or
different conditions precedent to closing, such representations and warranties and such
additional covenants as shall be specified in the Supplement under which such Additional
Notes are issued, and upon execution of any such Supplement, this Agreement shall be amended
(a) to reflect such additional covenants without further action on the part of the holders
of the Notes outstanding under this Agreement, provided, that any such additional covenants
shall inure to the benefit of all holders of Notes so long as any Additional Notes issued
pursuant to such Supplement remain outstanding, provided further, that if such additional
covenants are less restrictive on the Company than any existing covenants set forth in this
Agreement, then such additional covenants shall not in any way amend the existing covenants
without the prior written consent of the requisite percentage of the holders of the Notes as
set forth in Section 17.1, and (b) to reflect such representations and warranties as are
contained in such Supplement for the benefit of the holders of such Additional Notes in
accordance with the provisions of Section 16;

     (iv) each Series of Additional Notes issued under this Agreement shall be in
substantially the form of Exhibit 1 to Exhibit S hereto with such variations, omissions and
insertions as are necessary or permitted hereunder;

     (v) the minimum principal amount of any Note issued under a Supplement shall be
$100,000, except as may be necessary to evidence the outstanding amount of any Note
originally issued in a denomination of $100,000 or more;

     (vi) all Additional Notes shall constitute Senior Debt of the Company and shall rank
pari passu with all other outstanding Notes; and

     (vii) no Additional Notes shall be issued hereunder if at the time of issuance thereof
and after giving effect to the application of the proceeds thereof, any Default or Event of
Default shall have occurred and be continuing.

-3-

 

			
	Eagle Materials Inc.
	 	Note Purchase Agreement

          The obligations of the Additional Purchasers to purchase any Additional Notes shall be subject
to the following conditions precedent, in addition to the conditions specified in the Supplement
pursuant to which such Additional Notes may be issued:

     (a) Compliance Certificate. A duly authorized Senior Financial Officer shall execute
and deliver to each Additional Purchaser and each holder of Notes an Officer’s Certificate
dated the date of issue of such Series of Additional Notes stating that such officer has
reviewed the provisions of this Agreement (including any Supplements hereto) and setting
forth the information and computations (in sufficient detail) required in order to establish
whether after giving effect to the issuance of the Additional Notes and after giving effect
to the application of the proceeds thereof, the Company is in compliance with the
requirements of Section 10.1 on such date (based upon the financial statements for the most
recent fiscal quarter ended prior to the date of such certificate).

     (b) Execution and Delivery of Supplement. The Company and each such Additional
Purchaser shall execute and deliver a Supplement substantially in the form of Exhibit S
hereto.

     (c) Representations of Additional Purchasers. Each Additional Purchaser shall have
confirmed in the Supplement that the representations set forth in Section 6 are true with
respect to such Additional Purchaser on and as of the date of issue of the Additional Notes.

     (d) Execution and Delivery of Guaranty Ratification. Provided a Guaranty Release shall
not have occurred, each Subsidiary Guarantor shall execute and deliver a Guaranty
Ratification in the form attached to the Subsidiary Guaranty.

     Section 2.3. Subsidiary Guaranty. (a) The payment by the Company of all amounts due with
respect to the Notes and the performance by the Company of its obligations under this Agreement and
any Supplement will be absolutely and unconditionally guaranteed by the Subsidiary Guarantors
pursuant to the Subsidiary Guaranty Agreement dated as of even date herewith, which shall be
substantially in the form of Exhibit 2.3 attached hereto, and otherwise in accordance with the
provisions of Section 9.8 hereof (the “Subsidiary Guaranty”).

          (b) The holders of the Notes agree to discharge and release any Subsidiary Guarantor from the
Subsidiary Guaranty upon receipt of written notification of the Company, provided that (i) such
Subsidiary Guarantor has been released and discharged (or will be released and discharged
concurrently with the release of such Subsidiary Guarantor under the Subsidiary Guaranty) as an
obligor and guarantor under and in respect of the Bank Credit Agreement and the Company so
certifies to the holders of the Notes in a certificate of a Responsible Officer, (ii) at the time
of such release and discharge, the Company shall deliver a certificate of a Responsible Officer to
the holders of the Notes stating that no Default or Event of Default exists, and (iii) if any fee
or other form of consideration is given to any holder of Debt of the Company expressly for the
purpose of such release, holders of the Notes shall receive equivalent consideration (a “Guaranty
Release”).

-4-

 

			
	Eagle Materials Inc.
	 	Note Purchase Agreement

Section 3. Closing.

          The sale and purchase of the Series 2007A Notes to be purchased by each Purchaser shall occur
at the offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, Illinois 60603 at 10:00
a.m. Central time, at a closing (the “Closing”) on October 2, 2007 or on such other Business Day
thereafter on or prior to October 15, 2007 as may be agreed upon by the Company and the Purchasers
(the “Closing Date”). On the Closing Date, the Company will deliver to each Purchaser the Series
2007A Notes to be purchased by such Purchaser in the form of a single Series 2007A Note (or such
greater number of Series 2007A Notes in denominations of at least $100,000 as such Purchaser may
request) dated the date of the Closing Date and registered in such Purchaser’s name (or in the name
of such Purchaser’s nominee), against delivery by such Purchaser to the Company or its order of
immediately available funds in the amount of the purchase price therefor by wire transfer of
immediately available funds for the account of the Company to Account Number [intentionally
omitted], at Wells Fargo, Dallas, Texas 75283-2406, ABA Number [intentionally omitted], in the
Account Name of “Eagle Materials Inc.” If, on the Closing Date, the Company shall fail to tender
such Series 2007A Notes to any Purchaser as provided above in this Section 3, or any of the
conditions specified in Section 4 shall not have been fulfilled to any Purchaser’s satisfaction,
such Purchaser shall, at such Purchaser’s election, be relieved of all further obligations under
this Agreement, without thereby waiving any rights such Purchaser may have by reason of such
failure or such nonfulfillment.

Section 4. Conditions to Closing.

          Each Purchaser’s obligation to purchase and pay for the Series 2007A Notes to be sold to such
Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to
or at the Closing, of the following conditions applicable to the Closing Date:

     Section 4.1. Representations and Warranties.

          (a) Representations and Warranties of the Company. The representations and warranties of the
Company in this Agreement shall be correct when made and at the time of the Closing.

          (b) Representations and Warranties of the Subsidiary Guarantors. The representations and
warranties of the Subsidiary Guarantors in the Subsidiary Guaranty shall be correct when made and
at the time of the Closing.

     Section 4.2. Performance; No Default.  The Company and each Subsidiary Guarantor
shall have performed and complied with all agreements and conditions contained in this Agreement
and the Subsidiary Guaranty required to be performed or complied with by the Company and each such
Subsidiary Guarantor prior to or at the Closing, and after giving effect to the issue and sale of
the Series 2007A Notes (and the application of the proceeds thereof as contemplated by
Section 5.14), no Default or Event of Default shall have occurred and be continuing. Neither the
Company nor any Subsidiary shall have entered into any transaction

-5-

 

			
	Eagle Materials Inc.
	 	Note Purchase Agreement

since the date of the Memorandum that would have been prohibited by Section 10 hereof had such
Sections applied since such date.

     Section 4.3. Compliance Certificates.

          (a) Officer’s Certificate of the Company. The Company shall have delivered to such Purchaser
an Officer’s Certificate, dated the Closing Date, certifying that the conditions specified in
Sections 4.1, 4.2 and 4.9 have been fulfilled.

          (b) Secretary’s Certificate of the Company. The Company shall have delivered to such
Purchaser a certificate, dated the Closing Date, certifying as to the resolutions attached thereto
and other corporate proceedings relating to the authorization, execution and delivery of the Series
2007A Notes and this Agreement.

          (c) Officer’s Certificate of the Subsidiary Guarantors. Each Subsidiary Guarantor shall have
delivered to such Purchaser an Officer’s Certificate, dated the Closing Date, certifying that the
conditions specified in Sections 4.1(b), 4.2 and 4.9 have been fulfilled.

          (d) Secretary’s Certificate of the Subsidiary Guarantors. Each Subsidiary Guarantor shall
have delivered to such Purchaser a certificate, dated the Closing Date, certifying as to the
resolutions attached thereto and other corporate proceedings relating to the authorization,
execution and delivery of the Subsidiary Guaranty.

     Section 4.4. Opinions of Counsel. Such Purchaser shall have received opinions in
form and substance satisfactory to such Purchaser, dated the Closing Date (a) from James H. Graass,
General Counsel of the Company, covering the matters set forth in Exhibit 4.4(a) and covering such
other matters incident to the transactions contemplated hereby as such Purchaser or its counsel may
reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the
Purchasers), (b) from Baker Botts L.L.P., special counsel for the Company, covering the matters set
forth in Exhibit 4.4(b) and covering such other matters incident to the transactions contemplated
hereby as such Purchaser or its counsel may reasonably request (and the Company hereby instructs
its counsel to deliver such opinion to the Purchasers), and (c) from Chapman and Cutler LLP, the
Purchasers’ special counsel, in connection with such transactions, substantially in the form set
forth in Exhibit 4.4(c) and covering such other matters incident to such transactions as such
Purchaser may reasonably request.

     Section 4.5. Purchase Permitted By Applicable Law, Etc. On the date of the Closing
such Purchaser’s purchase of Series 2007A Notes shall (a) be permitted by the laws and regulations
of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as
section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance
companies without restriction as to the character of the particular investment, (b) not violate any
applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of
Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or
liability under or pursuant to any applicable law or regulation, which law or regulation was not in
effect on the date hereof. If requested by such Purchaser, such Purchaser shall have received an
Officer’s Certificate certifying as to such

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	Eagle Materials Inc.
	 	Note Purchase Agreement

matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.

     Section 4.6. Sale of Other Notes.  Contemporaneously with the Closing, the Company
shall sell to each other Purchaser and each other Purchaser shall purchase the Series 2007A Notes
to be purchased by it at the Closing as specified in Schedule A.

     Section 4.7. Payment of Special Counsel Fees. Without limiting the provisions of
Section 15.1, the Company shall have paid on or before the Closing Date, the reasonable fees,
reasonable charges and reasonable disbursements of the Purchasers’ special counsel referred to in
Section 4.4 to the extent reflected in a statement of such counsel rendered to the Company at least
one Business Day prior to the Closing Date.

     Section 4.8. Private Placement Number. A Private Placement Number issued by Standard
& Poor’s CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National
Association of Insurance Commissioners) shall have been obtained for each tranche of the Series
2007A Notes.

     Section 4.9. Changes in Corporate Structure.  Neither the Company nor any Subsidiary
Guarantor shall have changed its jurisdiction of organization or, except as reflected in Schedule
4.9, been a party to any merger or consolidation, or shall have succeeded to all or any substantial
part of the liabilities of any other entity, at any time following the date of the most recent
financial statements referred to in Schedule 5.5.

     Section 4.10. Subsidiary Guaranty. The Subsidiary Guaranty shall have been duly authorized,
executed and delivered by each Subsidiary Guarantor, shall constitute the legal, valid and binding
contract and agreement of each Subsidiary Guarantor and such Purchaser shall have received a true,
correct and complete copy thereof.

     Section 4.11. Funding Instructions. At least three Business Days prior to the date
of the Closing, each Purchaser shall have received written instructions signed by a Responsible
Officer on letterhead of the Company confirming the information specified in Section 3, including
(i) the name and address of the transferee bank, (ii) such transferee bank’s ABA number and
(iii) the account name and number into which the purchase price for the Series 2007A Notes is to be
deposited.

     Section 4.12. Proceedings and Documents. All corporate and other organizational
proceedings in connection with the transactions contemplated by this Agreement and all documents
and instruments incident to such transactions shall be satisfactory to such Purchaser and its
special counsel, and such Purchaser and its special counsel shall have received all such
counterpart originals or certified or other copies of such documents related to the transactions
contemplated hereby as such Purchaser or such special counsel may reasonably request.

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	Eagle Materials Inc.
	 	Note Purchase Agreement

Section 5. Representations and Warranties of the Company.

          The Company represents and warrants to each Purchaser that:

     Section 5.1. Organization; Power and Authority. The Company is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of incorporation, and is
duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the failure to be so
qualified or in good standing would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. The Company has the corporate power and authority to own or
hold under lease the properties it purports to own or hold under lease, to transact the business it
transacts and proposes to transact, to execute and deliver this Agreement and the Series 2007A
Notes and to perform the provisions hereof and thereof.

     Section 5.2. Authorization, Etc. This Agreement and the Notes to be issued on the
Closing Date have been duly authorized by all necessary corporate action on the part of the
Company, and this Agreement constitutes, and upon execution and delivery thereof each such Note
will constitute, a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be limited by
(i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting
the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

     Section 5.3. Disclosure. The Company, through its agent, Banc of America Securities
LLC, has delivered to you and each other Purchaser a copy of a Private Placement Memorandum, dated
August 2007 (the “Memorandum”), relating to the transactions contemplated hereby. The Memorandum
fairly describes, in all material respects, the general nature of the business and principal
properties of the Company and its Restricted Subsidiaries. This Agreement, the Memorandum, the
documents, certificates or other writings delivered to the Purchasers by or on behalf of the
Company in connection with the transactions contemplated hereby and the financial statements listed
in Schedule 5.5, in each case, delivered to the Purchasers prior to August 27, 2007 (this
Agreement, the Memorandum and such documents, certificates or other writings and such financial
statements being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do
not contain any untrue statement of a material fact or omit to state any material fact necessary to
make the statements therein not misleading in light of the circumstances under which they were
made. Except as disclosed in the Disclosure Documents, since March 31, 2007, there has been no
change in the financial condition, operations, business or properties of the Company or any of its
Restricted Subsidiaries except changes that individually or in the aggregate would not reasonably
be expected to have a Material Adverse Effect. There is no fact known to the Company that would
reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in
the Disclosure Documents.

     Section 5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates.
(a) Schedule 5.4 contains (except as noted therein) complete and correct lists (i) of the

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	Eagle Materials Inc.
	 	Note Purchase Agreement

Company’s Restricted and Unrestricted Subsidiaries, showing, as to each Subsidiary, the correct
name thereof, the jurisdiction of its organization, and the percentage of shares of each class of
its capital stock or similar equity interests outstanding owned by the Company and each other
Subsidiary, (ii) of the Company’s Affiliates, other than Subsidiaries, and (iii) of the Company’s
directors and senior officers.

          (b) All of the outstanding shares of capital stock or similar equity interests of each
Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been
validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary
free and clear of any Lien (except as otherwise disclosed in Schedule 5.4).

          (c) Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly
organized, validly existing and in good standing under the laws of its jurisdiction of
organization, and is duly qualified as a foreign corporation or other legal entity and is in good
standing in each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each
such Subsidiary has the corporate or other power and authority to own or hold under lease the
properties it purports to own or hold under lease and to transact the business it transacts and
proposes to transact.

          (d) No Subsidiary is a party to, or otherwise subject to, any legal restriction or any
agreement (other than this Agreement, the agreements listed on Schedule 5.4 and customary
limitations imposed by corporate law statutes) restricting the ability of such Subsidiary to pay
dividends out of profits or make any other similar distributions of profits to the Company or any
of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of
such Subsidiary.

     Section 5.5. Financial Statements; Material Liabilities. The Company has delivered
to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on
Schedule 5.5. All of said financial statements (including in each case the related schedules and
notes) fairly present in all material respects the consolidated financial position of the Company
and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated
results of their operations and cash flows for the respective periods so specified and have been
prepared in accordance with GAAP consistently applied throughout the periods involved except as set
forth in the notes thereto (subject, in the case of any interim financial statements, to normal
year-end adjustments). The Company and its Subsidiaries do not have any Material liabilities that
are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.

     Section 5.6. Compliance with Laws, Other Instruments, Etc. The execution, delivery
and performance by the Company of this Agreement and the Series 2007A Notes will not
(a) contravene, result in any breach of, or constitute a default under, or result in the creation
of any Lien in respect of any property of the Company or any Subsidiary under, any indenture,
mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws,
or any other agreement or instrument to which the Company or any Subsidiary is bound or by

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	Eagle Materials Inc.
	 	Note Purchase Agreement

which
the Company or any Subsidiary or any of their respective properties may be bound or affected,
(b) conflict with or result in a breach of any of the terms, conditions or provisions of
any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority
applicable to the Company or any Subsidiary, or (c) violate any provision of any statute or other
rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary.

     Section 5.7. Governmental Authorizations, Etc. No consent, approval or authorization
of, or registration, filing or declaration with, any Governmental Authority is required in
connection with the execution, delivery or performance by the Company of this Agreement or the
Series 2007A Notes except for certain filings on form 8-K as may be required by Rule 13a-11 of the
Exchange Act.

     Section 5.8. Litigation; Observance of Agreements, Statutes and Orders. (a) There
are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company,
threatened against or affecting the Company or any Restricted Subsidiary or any property of the
Company or any Restricted Subsidiary in any court or before any arbitrator of any kind or before or
by any Governmental Authority that, individually or in the aggregate, would reasonably be expected
to have a Material Adverse Effect.

          (b) Neither the Company nor any Restricted Subsidiary is in default under any term of any
agreement or instrument to which it is a party or by which it is bound, or any order, judgment,
decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any
applicable law, ordinance, rule or regulation (including without limitation Environmental Laws or
the USA Patriot Act) of any Governmental Authority, which default or violation, individually or in
the aggregate, would reasonably be expected to have a Material Adverse Effect.

     Section 5.9. Taxes. The Company and its Subsidiaries have filed all tax returns that
are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and
payable on such returns and all other taxes and assessments levied upon them or their properties,
assets, income or franchises, to the extent such taxes and assessments have become due and payable
and before they have become delinquent, except for any taxes and assessments (a) the amount of
which is not individually or in the aggregate Material or (b) the amount, applicability or validity
of which is currently being contested in good faith by appropriate proceedings and with respect to
which the Company or a Subsidiary, as the case may be, has established adequate reserves in
accordance with GAAP. The Company knows of no basis for any other tax or assessment that would
reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on
the books of the Company and its Subsidiaries in respect of federal, state or other taxes for all
fiscal periods are adequate. The federal income tax liabilities of the Company and its
Subsidiaries have been finally determined (whether by reason of completed audits or the statute of
limitations having run) for all fiscal years up to and including the fiscal year ended March 31,
2000.

     Section 5.10. Title to Property; Leases. The Company and its Restricted Subsidiaries
have good and sufficient title to their respective properties which the Company and its Restricted
Subsidiaries own or purport to own that individually or in the aggregate are Material, including

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	Eagle Materials Inc.
	 	Note Purchase Agreement

all such properties reflected in the most recent audited balance sheet referred to in Section 5.5
or purported to have been acquired by the Company or any Restricted Subsidiary after said date
(except as sold or otherwise disposed of in the ordinary course of business), in each case free and
clear of Liens prohibited by this Agreement. All leases that individually or in the aggregate are
Material are valid and subsisting and are in full force and effect in all material respects.

     Section 5.11. Licenses, Permits, Etc. Except as disclosed in Schedule 5.11,

     (a) the Company and its Restricted Subsidiaries own or possess all licenses, permits,
franchises, authorizations, patents, copyrights, proprietary software, service marks,
trademarks and trade names, or rights thereto, that individually or in the aggregate are
Material, without known conflict with the rights of others, except, in each case, as would
not reasonably be expected to result in a Material Adverse Effect;

     (b) to the best knowledge of the Company, no product of the Company or any of its
Restricted Subsidiaries infringes in any respect any license, permit, franchise,
authorization, patent, copyright, proprietary software, service mark, trademark, trade name
or other right owned by any other Person, except, in each case, as would not reasonably be
expected to result in a Material Adverse Effect; and

     (c) to the best knowledge of the Company, there is no violation by any Person of any
right of the Company or any of its Restricted Subsidiaries with respect to any patent,
copyright, proprietary software, service mark, trademark, trade name or other right owned or
used by the Company or any of its Restricted Subsidiaries, except, in each case, as would
not reasonably be expected to result in a Material Adverse Effect.

     Section 5.12. Compliance with ERISA. (a) The Company and each ERISA Affiliate have
operated and administered each Plan in compliance with all applicable laws except for such
instances of noncompliance as have not resulted in and would not reasonably be expected to result
in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any
liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code
relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or
condition has occurred or exists that would reasonably be expected to result in the incurrence of
any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any
of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant
to Title I or IV of ERISA or pursuant to such penalty or excise tax provisions or pursuant to
section 401(a)(29) or 412 of the Code or section 4068 of ERISA, other than such liabilities or
Liens as would not be individually or in the aggregate Material.

          (b) The present value of the aggregate benefit liabilities under each of the Plans (other than
Multiemployer Plans), determined as of the end of such Plan’s most recently ended plan year on the
basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent
actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan
allocable to such benefit liabilities by more than $5,000,000 in the aggregate for all Plans. The
term “benefit liabilities” has the meaning specified in section 4001 of ERISA and the terms
“current value” and “present value” have the meanings specified in section 3 of ERISA.

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	Eagle Materials Inc.
	 	Note Purchase Agreement

          (c) The Company and its ERISA Affiliates have not incurred any withdrawal liabilities (and are
not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of
Multiemployer Plans that individually or in the aggregate are Material.

          (d) The expected post-retirement benefit obligation (determined as of the last day of the
Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board
Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by
section 4980B of the Code) of the Company and its Subsidiaries is not Material.

          (e) The execution and delivery of this Agreement and the issuance and sale of the Series 2007A
Notes hereunder will not involve any transaction that is subject to the prohibitions of Section 406
of ERISA or in connection with which a tax would be imposed pursuant to Section 4975(c)(1)(A)-(D)
of the Code. The representation by the Company in the first sentence of this Section 5.12(e) is
made in reliance upon and subject to the accuracy of each Purchaser’s representation in Section 6.3
as to the sources of the funds to be used to pay the purchase price of the Series 2007A Notes to be
purchased by such Purchaser.

     Section 5.13. Private Offering by the Company. Neither the Company nor anyone acting
on the Company’s behalf has offered the Series 2007A Notes or any similar securities for sale to,
or solicited any offer to buy any of the same from, or otherwise approached or negotiated in
respect thereof with, any Person other than the Purchasers and not more than 45 other Institutional
Investors, each of which has been offered the Series 2007A Notes in connection with a private sale
for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any
action that would subject the issuance or sale of the Series 2007A Notes to the registration
requirements of Section 5 of the Securities Act or to the registration requirements of any
securities or blue sky laws of any applicable jurisdiction.

     Section 5.14. Use of Proceeds; Margin Regulations. The Company will apply the
proceeds of the sale of the Series 2007A Notes to refinance existing indebtedness and for general
corporate purposes of the Company. No part of the proceeds from the sale of the Series 2007A Notes
hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin
stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System
(12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such
circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224)
or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).
Margin stock does not constitute more than 5% of the value of the consolidated assets of the
Company and its Subsidiaries and the Company does not have any present intention that margin stock
will constitute more than 5% of the value of such assets. As used in this Section, the terms
“margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said
Regulation U.

     Section 5.15. Existing Debt; Future Liens. (a) Except as described therein, Schedule 5.15
sets forth a complete and correct list of all outstanding Debt of the Company and its Restricted
Subsidiaries as of June 30, 2007, since which date there has been no Material change in the
amounts, interest rates, sinking funds, installment payments or maturities of the Debt of the
Company or its Restricted Subsidiaries. Neither the Company nor any Restricted Subsidiary is

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	Eagle Materials Inc.
	 	Note Purchase Agreement

in default and no waiver of default is currently in effect, in the payment of any principal or
interest on any Debt of the Company or such Restricted Subsidiary, and no event or condition exists
with respect to any Debt of the Company or any Restricted Subsidiary that would permit (or that
with notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to
become due and payable before its stated maturity or before its regularly scheduled dates of
payment.

          (b) Except as disclosed in Schedule 5.15, neither the Company nor any Restricted Subsidiary
has agreed or consented to cause or permit in the future (upon the happening of a contingency or
otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien
not permitted by Section 10.4.

          (c) Neither the Company nor any Subsidiary is a party to, or otherwise subject to any
provision contained in, any instrument evidencing Debt of the Company or such Subsidiary, any
agreement relating thereto or any other agreement (including, but not limited to, its charter or
other organizational document) which limits the amount of, or otherwise imposes restrictions on the
incurring of, Debt of the Company, except as specifically indicated in Schedule 5.15.

     Section 5.16. Foreign Assets Control Regulations, Etc. (a) Neither the sale of the
Series 2007A Notes by the Company hereunder nor its use of the proceeds thereof will violate the
Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling
legislation or executive order relating thereto.

          (b) Neither the Company nor any Subsidiary is a Person described or designated in the
Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or
in Section 1 of the Anti-Terrorism Order or, to the knowledge of the Company, engages in any
dealings or transactions with any such Person. The Company and its Subsidiaries are in compliance,
in all material respects, with the USA Patriot Act.

          (c) No part of the proceeds from the sale of the Series 2007A Notes hereunder will be used,
directly or indirectly, for any payments to any governmental official or employee, political party,
official of a political party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as amended, assuming in all
cases that such Act applies to the Company.

     Section 5.17. Status under Certain Statutes. Neither the Company nor any Restricted
Subsidiary is an “investment company” registered or required to be registered under the Investment
Company Act of 1940, as amended, or is subject to regulation under the Public Utility Holding
Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the Federal Power
Act, as amended.

     Section 5.18. Environmental Matters. (a) Neither the Company nor any Restricted Subsidiary
has knowledge of any claim or has received any notice of any claim, and no proceeding has been
instituted raising any claim against the Company or any of its Restricted

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	Eagle Materials Inc.
	 	Note Purchase Agreement

Subsidiaries or any of their respective real properties now or formerly owned, leased or operated
by any of them, or other assets, alleging any damage to the environment or violation of any
Environmental Laws, except, in each case, such as would not reasonably be expected to result in a
Material Adverse Effect.

          (b) Neither the Company nor any Restricted Subsidiary has knowledge of any facts which would
give rise to any claim, public or private, of violation of Environmental Laws or damage to the
environment emanating from, occurring on or in any way related to real properties now or formerly
owned, leased or operated by any of them or to other assets or their use, except, in each case,
such as would not reasonably be expected to result in a Material Adverse Effect.

          (c) Neither the Company nor any of its Restricted Subsidiaries has stored any Hazardous
Materials on real properties now or formerly owned, leased or operated by any of them or has
disposed of any Hazardous Materials in each case in a manner contrary to any Environmental Laws in
each case in any manner that would reasonably be expected to result in a Material Adverse Effect.

          (d) All buildings on all real properties now owned, leased or operated by the Company or any
of its Restricted Subsidiaries are in compliance with applicable Environmental Laws, except where
failure to comply would not reasonably be expected to result in a Material Adverse Effect.

     Section 5.19. Notes Rank Pari Passu. The obligations of the Company under this Agreement and
the Notes rank pari passu in right of payment with all other senior unsecured Debt (actual or
contingent) of the Company, including, without limitation, all senior unsecured Debt of the Company
described in Schedule 5.15 hereto. The obligations of each Subsidiary Guarantor under the
Subsidiary Guaranty rank pari passu in right of payment with all other senior unsecured Debt
(actual or contingent) of such Subsidiary Guarantor, including, without limitation, all senior
unsecured Debt of such Subsidiary Guarantor described in Schedule 5.15 hereto.

Section 6. Representations of the Purchaser.

     Section 6.1. Purchase for Investment. Each Purchaser severally represents that it is
purchasing the Series 2007A Notes for its own account or for one or more separate accounts
maintained by it or for the account of one or more pension or trust funds and not with a view to
the distribution thereof, provided that the disposition of such Purchaser’s or such pension or
trust funds’ property shall at all times be within such Purchaser’s or such pension or trust funds’
control. Each Purchaser understands that the Series 2007A Notes have not been registered under the
Securities Act and may be resold only if registered pursuant to the provisions of the Securities
Act or if an exemption from registration is available, except under circumstances where neither
such registration nor such an exemption is required by law, and that the Company is not required to
register the Series 2007A Notes.

     Section 6.2. Accredited Investor. Each Purchaser represents that it is an “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act

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	Eagle Materials Inc.
	 	Note Purchase Agreement

acting for its own account (and not for the account of others) or as a fiduciary or agent for
others (which others are also “accredited investors”). Each Purchaser further represents that
such Purchaser has had the opportunity to ask questions of the Company and received answers
concerning the terms and conditions of the sale of the Series 2007A Notes.

     Section 6.3. Source of Funds. Each Purchaser severally represents that at least one of the
following statements is an accurate representation as to each source of funds (a “Source”) to be
used by such Purchaser to pay the purchase price of the Series 2007A Notes to be purchased by such
Purchaser hereunder:

     (a) the Source is an “insurance company general account” (as the term is defined in the
United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in
respect of which the reserves and liabilities (as defined by the annual statement for life
insurance companies approved by the National Association of Insurance Commissioners (the
“NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any
employee benefit plan together with the amount of the reserves and liabilities for the
general account contract(s) held by or on behalf of any other employee benefit plans
maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the
same employee organization in the general account do not exceed 10% of the total reserves
and liabilities of the general account (exclusive of separate account liabilities) plus
surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of
domicile; or

     (b) the Source is a separate account that is maintained solely in connection with such
Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to
any employee benefit plan (or its related trust) that has any interest in such separate
account (or to any participant or beneficiary of such plan (including any annuitant)) are
not affected in any manner by the investment performance of the separate account; or

     (c) the Source is either (i) an insurance company pooled separate account, within the
meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE
91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this
clause (c), no employee benefit plan or group of plans maintained by the same employer or
employee organization beneficially owns more than 10% of all assets allocated to such pooled
separate account or collective investment fund; or

     (d) the Source constitutes assets of an “investment fund” (within the meaning of Part V
of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or
“QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s
assets that are included in such investment fund, when combined with the assets of all other
employee benefit plans established or maintained by the same employer or by an affiliate
(within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the
same employee organization and managed by such QPAM, exceed 20% of the total client assets
managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are
satisfied, neither the QPAM

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	Eagle Materials Inc.
	 	Note Purchase Agreement

nor a person controlling or controlled by the QPAM (applying the definition of “control” in
Section V(e) of the QPAM Exemption) owns a 5% or more interest in the Company and (i) the
identity of such QPAM and (ii) the names of all employee benefit plans whose assets are
included in such investment fund have been disclosed to the Company in writing pursuant to
this clause (d); or

     (e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of
PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within
the meaning of Part IV of the INHAM exemption), the conditions of Part I(a), (g) and (h) of
the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled
by the INHAM (applying the definition of “control” in Section IV(d) of the INHAM Exemption)
owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the
name(s) of the employee benefit plan(s) whose assets constitute the Source have been
disclosed to the Company in writing pursuant to this clause (e); or

     (f) the Source is a governmental plan; or

     (g) the Source is one or more employee benefit plans, or a separate account or trust
fund comprised of one or more employee benefit plans, each of which has been identified to
the Company in writing pursuant to this clause (g); or

     (h) the Source does not include assets of any employee benefit plan, other than a plan
exempt from the coverage of ERISA.

As used in this Section 6.3, the terms “employee benefit plan,” “governmental plan,” and “separate
account” shall have the respective meanings assigned to such terms in section 3 of ERISA.

Section 7. Information as to Company.

     Section 7.1. Financial and Business Information. The Company shall deliver to each holder of
Notes that is an Institutional Investor:

     (a) Quarterly Statements — within 60 days after the end of each quarterly fiscal period
in each fiscal year of the Company (other than the last quarterly fiscal period of each such
fiscal year),

     (i) a consolidated balance sheet of the Company and its Subsidiaries as at the
end of such quarter, and

     (ii) consolidated statements of income, changes in shareholders’ equity and
cash flows of the Company and its Subsidiaries, for such quarter and (in the case of
the second and third quarters) for the portion of the fiscal year ending with such
quarter,

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setting forth in each case in comparative form the figures for the corresponding periods in
the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP
applicable to quarterly financial statements generally, and certified by a Senior Financial
Officer as fairly presenting, in all material respects, the financial position of the
companies being reported on and their results of operations and cash flows, subject to
changes resulting from year-end adjustments, provided that filing with the Securities and
Exchange Commission within the time period specified above the Company’s Quarterly Report on
Form 10-Q prepared in compliance with the requirements therefor shall be deemed to satisfy
the requirements of this Section 7.1(a) and, provided, further, that the Company shall be
deemed to have made such delivery of such Form 10-Q if it shall have timely made such Form
10-Q available on “EDGAR” and on its home page on the worldwide web (at the date of this
Agreement located at: http//www.eaglematerials.com) and shall have given each Purchaser
prior notice of such availability on EDGAR and on its home page in connection with each
delivery (such availability and notice thereof being referred to as “Electronic Delivery”);

     (b) Annual Statements — within 105 days after the end of each fiscal year of the
Company,

     (i) a consolidated balance sheet of the Company and its Subsidiaries, as at the
end of such year, and

     (ii) consolidated statements of income, changes in shareholders’ equity and
cash flows of the Company and its Subsidiaries, for such year,

setting forth in each case in comparative form the figures for the previous fiscal year, all
in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion
thereon of independent certified public accountants of recognized national standing, which
opinion shall state that such financial statements present fairly, in all material respects,
the financial position of the companies being reported upon and their results of operations
and cash flows and have been prepared in conformity with GAAP, and that the examination of
such accountants in connection with such financial statements has been made in accordance
with generally accepted auditing standards, and that such audit provides a reasonable basis
for such opinion in the circumstances, provided that filing with the Securities and Exchange
Commission within the time period specified above of the Company’s Annual Report on Form
10-K for such fiscal year (together with the Company’s annual report to shareholders, if
any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the
requirements therefor shall be deemed to satisfy the requirements of this Section 7.1(b),
provided, further, that the Company shall be deemed to have made such delivery of such Form
10-K if it shall have timely made Electronic Delivery thereof;

     (c) SEC and Other Reports — except for filings referred to in Section 7.1(a) and (b)
above, promptly upon their becoming available and, to the extent applicable, one copy of
(i) each financial statement, report, notice or proxy statement sent by the Company or any
Subsidiary to public securities holders generally, and (ii) each regular or

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periodic report, each registration statement (without exhibits except as expressly requested
by such holder), and each prospectus and all amendments thereto filed by the Company or any
Subsidiary with the Securities and Exchange Commission and of all press releases and other
statements made available generally by the Company or any Subsidiary to the public
concerning developments that are Material; provided, that the Company shall be deemed to
have made such delivery of any such information if it shall have timely made Electronic
Delivery thereof;

     (d) Notice of Default or Event of Default — promptly, and in any event within five
Business Days after a Responsible Officer becomes aware of the existence of any Default or
Event of Default or that any Person has given any notice or taken any action with respect to
a claimed default hereunder or that any Person has given any notice or taken any action with
respect to a claimed default of the type referred to in Section 11(f), a written notice
specifying the nature and period of existence thereof and what action the Company is taking
or proposes to take with respect thereto;

     (e) ERISA Matters — promptly, and in any event within five Business Days after a
Responsible Officer becomes aware of any of the following, a written notice setting forth
the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes
to take with respect thereto:

     (i)
with respect to any Plan, any reportable event, as defined in Section 4043(c) of ERISA and the regulations thereunder, for which notice thereof
has not been waived pursuant to such regulations as in effect on the date thereof;or

     (ii) the taking by the PBGC of steps to institute, or the threatening by the
PBGC of the institution of, proceedings under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the
receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan
that such action has been taken by the PBGC with respect to such Multiemployer Plan;
or

     (iii) any event, transaction or condition that would result in the incurrence
of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of
ERISA or the imposition of a penalty or excise tax under the provisions of the Code
relating to employee benefit plans, or the imposition of any Lien on any of the
rights, properties or assets of the Company or any ERISA Affiliate pursuant to
Title I or IV of ERISA or such penalty or excise tax provisions, if such liability
or Lien, taken together with any other such liabilities or Liens then existing,
would reasonably be expected to have a Material Adverse Effect;

     (f) Notices from Governmental Authority — promptly, and in any event within 30 days of
receipt thereof, copies of any notice to the Company or any Subsidiary from any federal or
state Governmental Authority relating to any order, ruling, statute or

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other law or regulation that would reasonably be expected to have a Material Adverse Effect;

     (g) Supplements — promptly and in any event within 10 Business Days after the
execution and delivery of any Supplement, a copy thereof; and

     (h) Requested Information — with reasonable promptness, such other data and information
relating to the business, operations, affairs, financial condition, assets or properties of
the Company or any of its Subsidiaries or relating to the ability of the Company to perform
its obligations hereunder and under the Notes as from time to time may be reasonably
requested by any such holder of Notes.

          Notwithstanding the foregoing, in the event that one or more Unrestricted Subsidiaries shall
either (i) own more than 10% of the total consolidated assets of the Company and its Subsidiaries,
or (ii) account for more than 10% of the consolidated gross revenues of the Company and its
Subsidiaries, determined in each case in accordance with GAAP, then, within the respective periods
provided in Section 7.1(a) and (b) above, the Company shall deliver to each holder of Notes that is
an Institutional Investor, unaudited financial statements of the character and for the dates and
periods as in said Sections 7.1(a) and (b) covering such group of Unrestricted Subsidiaries (on a
consolidated basis), together with a consolidating statement reflecting eliminations or adjustments
required to reconcile the financial statements of such group of Unrestricted Subsidiaries to the
financial statements delivered pursuant to Sections 7.1(a) and (b).

     Section 7.2. Officer’s Certificate. Each set of financial statements delivered to a holder of
Notes pursuant to Section 7.1(a) or Section 7.1(b) hereof shall be accompanied by a certificate of
a Senior Financial Officer setting forth (which, in the case of Electronic Delivery of any such
financial statements, shall be by separate concurrent delivery of such certificate to each holder
of Notes):

     (a) Covenant Compliance — the information required in order to establish whether the
Company was in compliance with the requirements of Sections 10.1 through 10.6, inclusive,
and Section 10.9 hereof during the quarterly or annual period covered by the statements then
being furnished (including with respect to each such Section, where applicable, the
calculations of the maximum or minimum amount, ratio or percentage, as the case may be,
permissible under the terms of such Sections, and the calculation of the amount, ratio or
percentage then in existence); and

     (b) Event of Default — a statement that such officer has reviewed the relevant terms
hereof and such review shall not have disclosed the existence during the quarterly or annual
period covered by the statements then being furnished of any condition or event that
constitutes a Default or an Event of Default or, if any such condition or event existed or
exists, specifying the nature and period of existence thereof and what action the Company
shall have taken or proposes to take with respect thereto.

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     Section 7.3. Visitation. The Company shall permit the representatives of each holder of Notes
that is an Institutional Investor:

     (a) No Default — if no Default or Event of Default then exists, at the expense of such
holder and upon reasonable prior notice to the Company, to visit the principal executive
office of the Company, to discuss the affairs, finances and accounts of the Company and its
Subsidiaries with the Company’s officers, and (with the consent of the Company, which
consent will not be unreasonably withheld) its independent public accountants, and (with the
consent of the Company, which consent will not be unreasonably withheld) to visit the other
offices and properties of the Company and each Restricted Subsidiary, all at such reasonable
times and as often as may be reasonably requested in writing; and

     (b) Default — if a Default or Event of Default then exists, at the expense of the
Company, to visit and inspect any of the offices or properties of the Company or any
Restricted Subsidiary, to examine all their respective books of account, records, reports
and other papers, to make copies and extracts therefrom, and to discuss their respective
affairs, finances and accounts with their respective officers and independent public
accountants (and by this provision the Company authorizes said accountants to discuss the
affairs, finances and accounts of the Company and its Subsidiaries), all at such times and
as often as may be requested.

Section 8. Payment of the Notes.

     Section 8.1. Required Prepayments. (a) The entire unpaid principal amount of the Tranche A
Notes shall become due and payable on October 2, 2014.

          (b) The entire unpaid principal amount of the Tranche B Notes shall become due and payable on
October 2, 2016.

          (c) The entire unpaid principal amount of the Tranche C Notes shall become due and payable on
October 2, 2017.

          (d) The entire unpaid principal amount of the Tranche D Notes shall become due and payable on
October 2, 2019.

     Section 8.2. Optional Prepayments with Make-Whole Amount. The Company may, at its option,
upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes
of any Series in an amount not less than 10% of the original aggregate principal amount of the
Notes of such Series to be prepaid, in the case of a partial prepayment (or such lesser amount as
shall be required to effect a partial prepayment resulting from an offer of prepayment pursuant to
Section 10.5), at 100% of the principal amount so prepaid, together with interest accrued thereon
to the date of such prepayment, plus the Make-Whole Amount determined for the prepayment date with
respect to such principal amount of each Note then outstanding of the applicable Series to be
prepaid. The Company will give each holder of Notes written notice of each optional prepayment
under this Section 8.2 not less than 30 days and not

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more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such
date, the aggregate principal amount of the Notes of the applicable Series to be prepaid on such
date, the principal amount of each Note held by such holder to be prepaid (determined in accordance
with Section 8.3), and the interest to be paid on the prepayment date with respect to such
principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial
Officer as to the estimated respective Make-Whole Amount due in connection with such prepayment
(calculated as if the date of such notice were the date of the prepayment), setting forth the
details of such computation. Two Business Days prior to such prepayment, the Company shall deliver
to each holder of Notes of the Series to be prepaid a certificate of a Senior Financial Officer
specifying the calculation of each such Make-Whole Amount as of the specified prepayment date.

     Section 8.3. Allocation of Partial Prepayments. In the case of each partial prepayment of the
Notes pursuant to the provisions of Section 8.2, the principal amount of the Notes of the Series to
be prepaid shall be allocated among all of the Notes of such Series at the time outstanding in
proportion, as nearly as practicable, to the respective unpaid principal amounts thereof. All
regularly scheduled partial prepayments made with respect to any Series of Additional Notes
pursuant to any Supplement shall be allocated as provided therein.

     Section 8.4. Maturity; Surrender, Etc. In the case of each prepayment of Notes pursuant to
this Section 8, the principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment, together with interest on such principal amount
accrued to such date and the applicable Make-Whole Amount. From and after such date, unless the
Company shall fail to pay such principal amount when so due and payable, together with the interest
and Make-Whole Amount as aforesaid, interest on such principal amount shall cease to accrue. Any
Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be
reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.

     Section 8.5. Purchase of Notes. The Company will not and will not permit any Affiliate to
purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes
of any Series except (a) upon the payment or prepayment of all of the Notes of such Series in
accordance with the terms of this Agreement (including any Supplement hereto) and the Notes of such
Series or (b) pursuant to a written offer to purchase any outstanding Notes of such Series made by
the Company or an Affiliate pro rata to the holders of the Notes of such Series upon the same terms
and conditions (except that if such Series has more than one separate tranche, such written offer
shall be allocated among all of the separate tranches of such Series at the time outstanding in
proportion, as nearly as practicable, to the respective unpaid principal amounts thereof, but such
written offer may otherwise differ among such separate tranches (as appropriate due to different
interests rates and/or maturities), and with respect to each tranche of such Series, such written
offer shall be made pro rata to the holders of such tranche upon the same terms and conditions).
The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment,
prepayment or purchase of Notes pursuant to any provision of this Agreement (including any
Supplement hereto), and no Notes may be issued in substitution or exchange for any such Notes.

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	Eagle Materials Inc.
	 	Note Purchase Agreement

     Section 8.6. Make-Whole Amount for the Series 2007A Notes. The term “Make-Whole Amount”
means, with respect to any Series 2007A Note, an amount equal to the excess, if any, of the
Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such
Series 2007A Note of the applicable tranche, minus the amount of such Called Principal, provided
that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the
Make-Whole Amount, the following terms have the following meanings with respect to the Called
Principal of such Series 2007A Note:

     “Called Principal” means the principal of the Series 2007A Note of the applicable
tranche that is to be prepaid pursuant to Section 8.2 or has become or is declared to be
immediately due and payable pursuant to Section 12.1, as the context requires.

     “Discounted Value” means the amount obtained by discounting all Remaining Scheduled
Payments from their respective scheduled due dates to the Settlement Date with respect to
such Called Principal, in accordance with accepted financial practice and at a discount
factor (applied on the same periodic basis as that on which interest on such Note is
payable) equal to the Reinvestment Yield.

     “Reinvestment Yield” means 0.50% plus the yield to maturity calculated by using (i) the
yields reported, as of 10:00 A.M. (New York City time) on the second Business Day preceding
the Settlement Date on screen “PX-1” on the Bloomberg Financial Market Service (or such
other display on the Bloomberg Financial Market Service having the same information if
“PX-1” is replaced by the Bloomberg Financial Market Service) for the most recently issued,
actively traded, on-the-run benchmark U.S. Treasury securities having a maturity equal to
the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if
such yields are not reported as of such time or the yields reported as of such time are not
ascertainable (including by way of interpolation), the Treasury Constant Maturity Series
Yields reported, for the latest day for which such yields have been so reported as of the
second Business Day preceding the Settlement Date, in Federal Reserve Statistical Release
H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury
securities having a constant maturity equal to the Remaining Average Life of such Called
Principal as of such Settlement Date. In either case, the yield will be determined, if
necessary, by (a) converting U.S. Treasury bill quotations to bond-equivalent yields in
accordance with accepted financial practice and (b) interpolating linearly on a straight
line basis between (1) the most recently issued, actively traded, on-the-run benchmark U.S.
Treasury security with the maturity closest to and greater than the Remaining Average Life
and (2) the most recently issued, actively traded, on-the-run benchmark U.S. Treasury
security with the maturity closest to and less than the Remaining Average Life. The
Reinvestment Yield shall be rounded to the number of decimal places as appears in the
interest rate of the applicable Note.

     “Remaining Average Life” means the number of years (calculated to the nearest
one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the
products obtained by multiplying (a) the principal component of each Remaining Scheduled
Payment by (b) the number of years (calculated to the nearest one-twelfth

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	Eagle Materials Inc.
	 	Note Purchase Agreement

year) that will elapse between the Settlement Date and the scheduled due date of such
Remaining Scheduled Payment.

     “Remaining Scheduled Payments” means all payments of such Called Principal and interest
thereon that would be due after the Settlement Date if no payment of such Called Principal
were made prior to its scheduled due date, provided that if such Settlement Date is not a
date on which interest payments are due to be made under the terms of such Note, then the
amount of the next succeeding scheduled interest payment will be reduced by the amount of
interest accrued to such Settlement Date and required to be paid on such Settlement Date
pursuant to Section 8.2 or 12.1.

     “Settlement Date” means, the date on which such Called Principal is to be prepaid
pursuant to Section 8.2 or has become or is declared to be immediately due and payable
pursuant to Section 12.1, as the context requires.

     Section 8.7. Change in Control. (a) Notice of Change in Control or Control Event. The
Company will, within 15 Business Days after any Responsible Officer has knowledge of the occurrence
of any Change in Control or Control Event, give written notice of such Change in Control or Control
Event to each holder of Notes. If a Change in Control has occurred, such notice shall contain and
constitute an offer to prepay Notes of each Series as described in subparagraph (b) of this Section
8.7 and shall be accompanied by the certificate described in subparagraph (e) of this Section 8.7.

          (b) Offer to Prepay Notes. The offer to prepay Notes contemplated by subparagraph (a) of this
Section 8.7 shall be an offer to prepay, in accordance with and subject to this Section 8.7, all,
but not less than all, the Notes held by each holder (in this case only, “holder” in respect of any
Note registered in the name of a nominee for a disclosed beneficial owner shall mean such
beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”). Such
Proposed Prepayment Date (which shall be a Business Day) shall be not less than 20 days and not
more than 30 days after the date of such offer (if the Proposed Prepayment Date shall not be
specified in such offer, the Proposed Prepayment Date shall be the 20th day after the date of such
offer).

          (c) Acceptance; Rejection. A holder of Notes may accept or reject the offer to prepay made
pursuant to this Section 8.7 by causing a notice of such acceptance or rejection to be delivered to
the Company at least 5 Business Days prior to the Proposed Prepayment Date. A failure by a holder
of Notes to respond to an offer to prepay made pursuant to this Section 8.7 shall be deemed to
constitute a rejection of such offer by such holder.

          (d) Prepayment. Prepayment of the Notes to be prepaid pursuant to this Section 8.7 shall be
at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the
date of prepayment. The prepayment shall be made on the Proposed Prepayment Date.

          (e) Officer’s Certificate. Each offer to prepay the Notes pursuant to this Section 8.7 shall
be accompanied by a certificate, executed by a Senior Financial Officer of the Company

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	Eagle Materials Inc.
	 	Note Purchase Agreement

and dated the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is
made pursuant to this Section 8.7; (iii) the principal amount of each Note offered to be prepaid;
(iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed
Prepayment Date; (v) that the conditions of this Section 8.7 have been fulfilled; and (vi) in
reasonable detail, the nature and date of the Change in Control.

          (f) “Change in Control” Defined. “Change in Control” means the following events or
circumstances:

The acquisition by any party, or two or more parties acting in
concert, of beneficial ownership (within the meaning of Rule 13d-3
under the Exchange Act) of 50% or more of the outstanding shares of
the stock of the Company entitled to elect 50% or more of the
members of the board of directors of the Company.

          (g) “Control Event” Defined. “Control Event” means:

     (i) the execution by the Company or any of its Subsidiaries or Affiliates of any
agreement or letter of intent with respect to any proposed transaction or event or series of
transactions or events which, individually or in the aggregate, would reasonably be expected
to result in a Change in Control,

     (ii) the execution of any written agreement which, when fully performed by the parties
thereto, would result in a Change in Control, or

     (iii) the making of any written offer by any person (as such term is used in section
13(d) and section 14(d)(2) of the Exchange Act as in effect on the date of the Closing) or
related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange
Act as in effect on the date of the Closing) to the holders of the common stock of the
Company, which offer, if accepted by the requisite number of holders, would result in a
Change in Control.

Section 9. Affirmative Covenants.

          The Company covenants that so long as any of the Notes are outstanding:

     Section 9.1. Compliance with Law. Without limiting Section 10.8, the Company will, and will
cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or
regulations to which each of them is subject, including, without limitation, ERISA, the USA Patriot
Act and Environmental Laws, and will obtain and maintain in effect all licenses, certificates,
permits, franchises and other governmental authorizations necessary to the ownership of their
respective properties or to the conduct of their respective businesses, in each case to the extent
necessary to ensure that non-compliance with such laws, ordinances or governmental rules or
regulations or failures to obtain or maintain in effect such licenses, certificates, permits,
franchises and other governmental authorizations would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

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	Eagle Materials Inc.
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     Section 9.2. Insurance. The Company will, and will cause each of its Restricted Subsidiaries
to, maintain, with financially sound and reputable insurers, insurance with respect to their
respective properties and businesses against such casualties and contingencies, of such types, on
such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate
reserves are maintained with respect thereto) as is customary in the case of entities of
established reputations engaged in the same or a similar business and similarly situated, except
for any non-maintenance that would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

     Section 9.3. Maintenance of Properties. The Company will, and will cause each of its
Restricted Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective
properties in good repair, working order and condition (other than ordinary wear and tear), so that
the business carried on in connection therewith may be properly conducted at all times, provided
that this Section shall not prevent the Company or any Restricted Subsidiary from discontinuing the
operation and the maintenance of any of its properties if such discontinuance is desirable in the
conduct of its business and the Company has concluded that such discontinuance would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     Section 9.4. Payment of Taxes and Claims. The Company will, and will cause each of its
Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and
discharge all taxes shown to be due and payable on such returns and all other taxes, assessments,
governmental charges, or levies imposed on them or any of their properties, assets, income or
franchises, to the extent such taxes and assessments have become due and payable and before they
have become delinquent and all claims for which sums have become due and payable that have or might
become a Lien on properties or assets of the Company or any Subsidiary not permitted by
Section 10.4, provided that neither the Company nor any Subsidiary need pay any such tax or
assessment or claims if (i) the amount, applicability or validity thereof is contested by the
Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the
Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the
books of the Company or such Subsidiary or (ii) the non-filing or nonpayment, as the case may be,
of all such taxes and assessments or claims in the aggregate would not reasonably be expected to
have a Material Adverse Effect.

     Section 9.5. Corporate Existence, Etc. Subject to Sections 10.5 and 10.6, the Company will at
all times preserve and keep in full force and effect its corporate existence, and will at all times
preserve and keep in full force and effect the corporate existence of each of its Restricted
Subsidiaries (unless merged into the Company or a Restricted Subsidiary) and all rights and
franchises of the Company and its Restricted Subsidiaries unless, in the good faith judgment of the
Company, the termination of or failure to preserve and keep in full force and effect such corporate
existence, right or franchise would not, individually or in the aggregate, have a Material Adverse
Effect.

     Section 9.6. Designation of Subsidiaries. The Company may from time to time cause any
Subsidiary (other than a Subsidiary Guarantor) to be designated as an Unrestricted Subsidiary or
any Unrestricted Subsidiary to be designated a Restricted Subsidiary; provided,

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	 	Note Purchase Agreement

however, that at the time of such designation and immediately after giving effect thereto, (a) no Default or
Event of Default would exist under the terms of this Agreement, and (b) the Company and its
Restricted Subsidiaries would be in compliance with all of the covenants set forth in this Section
9 and Section 10 if tested on the date of such action and provided, further, that once a Subsidiary
has been designated an Unrestricted Subsidiary, it shall not thereafter be redesignated as a
Restricted Subsidiary on more than one occasion, and once a Subsidiary has been designated a
Restricted Subsidiary, it shall not thereafter be redesignated as an Unrestricted Subsidiary on
more than one occasion. Within ten (10) days following any designation described above, the
Company will deliver to each holder of Notes a notice of such designation accompanied by a
certificate signed by a Senior Financial Officer of the Company certifying compliance with all
requirements of this Section 9.6 and setting forth all information required in order to establish
such compliance.

     Section 9.7. Notes to Rank Pari Passu. The Notes and all other obligations under this
Agreement of the Company are and at all times shall remain direct and unsecured obligations of the
Company ranking pari passu as against the assets of the Company with all other Notes from time to
time issued and outstanding hereunder without any preference among themselves and pari passu with
the Debt outstanding under the Bank Credit Agreement and all other present and future unsecured
Debt (actual or contingent) of the Company which is not expressed to be subordinate or junior in
rank to any other unsecured Debt of the Company. All obligations under the Subsidiary Guaranty of
each Subsidiary Guarantor in respect of the Notes, and all other obligations of such Subsidiary
Guarantor under the Subsidiary Guaranty, are and at all times shall remain direct and unsecured
obligations of such Subsidiary Guarantor ranking pari passu as against the assets of such
Subsidiary Guarantor with all obligations of such Subsidiary Guarantor under the Subsidiary
Guaranty in respect of all other Notes from time to time issued and outstanding hereunder and
guarantied pursuant to the Subsidiary Guaranty without any preference among themselves and pari
passu with such Subsidiary Guarantor’s Guaranty in respect of the Debt outstanding under the Bank
Credit Agreement and all other present and future unsecured Debt (actual or contingent) of such
Subsidiary Guarantor which is not expressed to be subordinate or junior in rank to any other
unsecured Debt of such Subsidiary Guarantor.

     Section 9.8. Additional Subsidiary Guarantors. The Company will cause any Subsidiary which is
required by the terms of the Bank Credit Agreement to become a party to, or otherwise guarantee,
Debt in respect of the Bank Credit Agreement, to enter into the Subsidiary Guaranty and deliver to
each of the holders of the Notes (concurrently with the incurrence of any such obligation pursuant
to the Bank Credit Agreement) the following items:

     (a) a joinder agreement in respect of the Subsidiary Guaranty;

     (b) a certificate signed by an authorized Responsible Officer of the Company making
representations and warranties to the effect of those contained in Sections 5.1, 5.2, 5.4,
5.6 and 5.7, with respect to such Subsidiary and the Subsidiary Guaranty, as applicable; and

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     (c) an opinion of counsel (who may be in-house counsel for the Company) addressed to
each of the holders of the Notes and reasonably satisfactory to the Required
Holders, to the effect that the Subsidiary Guaranty by such Person has been duly authorized,
executed and delivered and that the Subsidiary Guaranty constitutes the legal, valid and
binding obligation of such Person enforceable in accordance with its terms, except as an
enforcement of such terms may be limited by bankruptcy, insolvency, fraudulent conveyance
and similar laws affecting the enforcement of creditors’ rights generally and by general
equitable principles.

     Section 9.9. Books and Records. The Company will, and will cause each of its Restricted
Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all
applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over
the Company or such Restricted Subsidiary, as the case may be.

Section 10. Negative Covenants.

          The Company covenants that so long as any of the Notes are outstanding:

     Section 10.1. Consolidated Debt to Consolidated EBITDA. The Company will not at any time
permit the ratio of Consolidated Debt to Consolidated EBITDA (Consolidated EBITDA to be calculated
as at the end of each fiscal quarter for the four consecutive fiscal quarters then ended) to exceed
3.50 to 1.00.

     Section 10.2. Priority Debt. The Company will not at any time permit the aggregate amount of
all Priority Debt to exceed 20% of Consolidated Net Worth, determined as of the end of the then
most recently ended fiscal quarter of the Company.

     Section 10.3. Interest Coverage Ratio. The Company will not permit the ratio of Consolidated
EBITDA to Consolidated Interest Expense for each period of four consecutive fiscal quarters
(calculated as at the end of each fiscal quarter for the four consecutive fiscal quarters then
ended) to be less than 2.50 to 1.00.

     Section 10.4. Limitation on Liens. The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly create, incur, assume or permit to exist (upon
the happening of a contingency or otherwise) any Lien on or with respect to any property or asset
(including, without limitation, any document or instrument in respect of goods or accounts
receivable) of the Company or any such Restricted Subsidiary, whether now owned or held or
hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to
receive income or profits (unless it makes, or causes to be made, effective provision whereby the
Notes will be equally and ratably secured with any and all other obligations thereby secured, such
security to be pursuant to an agreement reasonably satisfactory to the Required Holders and, in any
such case, the Notes shall have the benefit, to the fullest extent that, and with such priority as,
the holders of the Notes may be entitled under applicable law, of an equitable Lien on such
property), except:

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     (a) Liens for taxes, assessments or other governmental charges that are not yet due and
payable or the payment of which is not at the time required by Section 9.4;

     (b) any attachment or judgment Lien, unless the judgment it secures shall not, within
60 days after the entry thereof, have been satisfied, discharged or execution thereof stayed
pending appeal, or shall not have been discharged within 60 days after the expiration of any
such stay;

     (c) Liens incidental to the conduct of business or the ownership of properties and
assets (including landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s and other
similar Liens for sums not yet due and payable), Liens to secure the performance of bids,
tenders, leases, or trade contracts, or to secure statutory obligations (including
obligations under workers compensation, unemployment insurance and other social security
legislation), surety or appeal bonds or other Liens incurred in the ordinary course of
business and not in connection with the borrowing of money, Liens arising from UCC financing
statements filed for notice purposes in respect of operating leases and Liens in favor of
depositary banks or securities intermediaries incurred in the ordinary course of business
and not in connection with the incurrence of Debt;

     (d) leases or subleases granted to others, easements, rights-of-way, restrictions and
other similar charges or encumbrances, in each case incidental to the ownership of property
or assets or the ordinary conduct of the business of the Company or any of its Restricted
Subsidiaries, or Liens incidental to minor survey exceptions, zoning restrictions and the
like, provided that such Liens do not, in the aggregate, materially detract from the value
of such property;

     (e) Liens securing Debt of a Restricted Subsidiary to the Company or to a Wholly-Owned
Restricted Subsidiary;

     (f) Liens existing as of the Closing Date and reflected in Schedule 10.4;

     (g) Liens incurred after the Closing Date given to secure the payment of the purchase
price incurred in connection with the acquisition, construction or improvement of property
(other than accounts receivable or inventory) useful and intended to be used in carrying on
the business of the Company or a Restricted Subsidiary, including Liens existing on such
property at the time of acquisition or construction thereof or Liens incurred within 365
days of such acquisition or completion of such construction or improvement, provided that
(i) the Lien shall attach solely to the property acquired, purchased, constructed or
improved; (ii) at the time of acquisition, construction or improvement of such property (or,
in the case of any Lien incurred within 365 days of such acquisition or completion of such
construction or improvement, at the time of the incurrence of the Debt secured by such
Lien), the aggregate amount remaining unpaid on all Debt secured by such Lien on such
property, whether or not assumed by the Company or a Restricted Subsidiary, shall not exceed
the lesser of (y) the cost of such acquisition, construction or improvement or (z) the Fair
Market Value of such property (as determined in good faith by one or more officers of the
Company to whom authority to

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enter into the transaction has been delegated by the board of
directors of the Company); and (iii) at the time of such incurrence and after giving effect
thereto, no Default or Event of Default would exist;

     (h) any Lien existing on property of a Person immediately prior to its being
consolidated with or merged into the Company or a Restricted Subsidiary after the Closing
Date or its becoming a Restricted Subsidiary after the Closing Date (other than after being
designated a Restricted Subsidiary pursuant to Section 9.6 hereof), or any Lien existing on
any property acquired after the Closing Date by the Company or any Restricted Subsidiary at
the time such property is so acquired (whether or not the Debt secured thereby shall have
been assumed), provided that (i) no such Lien shall have been created or assumed in
contemplation of such consolidation or merger or such Person’s becoming a Restricted
Subsidiary or such acquisition of property, (ii) each such Lien shall extend solely to the
item or items of property so acquired and, if required by the terms of the instrument
originally creating such Lien, other property which is an improvement to or is acquired for
specific use in connection with such acquired property, and (iii) at the time of such
incurrence and after giving effect thereto, no Default or Event of Default would exist;

     (i) any extensions, renewals or replacements of any Lien permitted by the preceding
subparagraphs (e), (f), (g) and (h) of this Section 10.4, provided that (i) no additional
property shall be encumbered by such Liens, (ii) the unpaid principal amount of the Debt or
other obligations secured thereby shall not be increased on or after the date of any
extension, renewal or replacement, and (iii) at such time and immediately after giving
effect thereto, no Default or Event of Default shall have occurred and be continuing;

     (j) Liens granted on accounts receivable and all Related Rights conveyed in connection
with Receivables Securitization Financings; and

     (k) Liens securing Priority Debt of the Company or any Restricted Subsidiary, provided
that the aggregate principal amount of any such Priority Debt shall be permitted by
Section 10.2.

     Section 10.5. Sales of Assets. Except as permitted by Section 10.6, the Company will not, and
will not permit any Restricted Subsidiary to, sell, lease or otherwise dispose of any substantial
part (as defined below) of the assets of the Company and its Restricted Subsidiaries; provided,
however, that the Company or any Restricted Subsidiary may sell, lease or otherwise dispose of
assets constituting a substantial part of the assets of the Company and its Restricted Subsidiaries
if such assets are sold in an arms length transaction and, at such time and after giving effect
thereto, no Default or Event of Default shall have occurred and be continuing and an amount equal
to the net proceeds received from such sale, lease or other disposition (but only with respect to
that portion of such assets that exceeds the definition of “substantial part” set forth below)
shall be used within 365 days of such sale, lease or disposition, in any combination:

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     (1) for working capital purposes (with respect to any Receivables Securitization
Financing), or to acquire assets used or useful in carrying on the business of the Company
and its Restricted Subsidiaries and having a value at least equal to the value of such
assets sold, leased or otherwise disposed of; and/or

     (2) to prepay or retire Senior Debt of the Company and/or its Restricted Subsidiaries,
provided that (i) the Company shall offer to prepay each outstanding Note ratably with all
such Senior Debt prepaid or retired, and (ii) any such prepayment of the Notes shall be made
in accordance with the terms of Section 8.2 (except at par and without the payment of any
Make-Whole Amount or any other premium).

          As used in this Section 10.5, a sale, lease or other disposition of assets shall be deemed to
be a “substantial part” of the assets of the Company and its Restricted Subsidiaries if the book
value of such assets, when added to the book value of all other assets sold, leased or otherwise
disposed of by the Company and its Restricted Subsidiaries during the period of 12 consecutive
months ending on the date of such sale, lease or other disposition, exceeds 10% of the book value
of Consolidated Total Assets, determined as of the end of the fiscal quarter immediately preceding
such sale, lease or other disposition; provided that there shall be excluded from any determination
of a “substantial part” any (i) sale or disposition of assets in the ordinary course of business of
the Company and its Restricted Subsidiaries, (ii) any transfer of assets from the Company to any
Wholly-Owned Restricted Subsidiary or from any Restricted Subsidiary to the Company or a
Wholly-Owned Restricted Subsidiary, (iii) sales of accounts receivable pursuant to one or more
Receivables Securitization Financings with respect to which the aggregate purchase commitments do
not exceed $75,000,000, and (iv) any sale or transfer of property acquired by the Company or any
Restricted Subsidiary after the date of this Agreement to any Person within 365 days following the
acquisition or construction of such property by the Company or any Restricted Subsidiary if the
Company or a Restricted Subsidiary shall, concurrently with such sale or transfer, lease such
property as lessee.

     Section 10.6. Merger and Consolidation. The Company will not, and will not permit any of its
Restricted Subsidiaries to, consolidate with or merge with any other Person or convey, transfer or
lease all or substantially all of its assets in a single transaction or series of transactions to
any Person; provided that:

     (1) any Restricted Subsidiary of the Company may (x) consolidate with or merge with, or
convey, transfer or lease all or substantially all of its assets in a single transaction or
series of transactions to, (i) the Company or a Restricted Subsidiary so long as in any
merger or consolidation involving the Company, the Company shall be the surviving or
continuing corporation or (ii) any other Person so long as the survivor is a Restricted
Subsidiary, or (y) convey, transfer or lease all of its assets in compliance with the
provisions of Section 10.5; and

     (2) the foregoing restriction does not apply to the consolidation or merger of the
Company with, or the conveyance, transfer or lease of all or substantially all of the assets
of the Company in a single transaction or series of transactions to, any Person so long as:

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     (a) the successor formed by such consolidation or the survivor of such merger
or the Person that acquires by conveyance, transfer or lease substantially all of
the assets of the Company as an entirety, as the case may be (the “Successor
Entity”), shall be a solvent entity organized and existing under the laws of the
United States of America, any State thereof or the District of Columbia;

     (b) if the Company is not the Successor Entity, such Successor Entity shall
have executed and delivered to each holder of Notes its assumption of the due and
punctual performance and observance of each covenant and condition of this Agreement
(and each Supplement hereto) and the Notes (pursuant to such agreements and
instruments as shall be reasonably satisfactory to the Required Holders), and the
Successor Entity shall have caused to be delivered to each holder of Notes (A) an
opinion of nationally recognized independent counsel, to the effect that all
agreements or instruments effecting such assumption are enforceable in accordance
with their terms and (B) an acknowledgment from each Subsidiary Guarantor that the
Subsidiary Guaranty continues in full force and effect; and

     (c) immediately before and immediately after giving effect to such transaction
no Default or Event of Default would exist.

     Section 10.7. Transactions with Affiliates. The Company will not and will not permit any
Restricted Subsidiary to enter into directly or indirectly any Material transaction or Material
group of related transactions (including without limitation the purchase, lease, sale or exchange
of properties of any kind or the rendering of any service) with any Affiliate (other than the
Company or another Restricted Subsidiary), except in the ordinary course and upon fair and
reasonable terms that are not materially less favorable to the Company or such Restricted
Subsidiary, taken as a whole, than would be obtainable in a comparable arm’s-length transaction
with a Person not an Affiliate.

     Section 10.8. Terrorism Sanctions Regulations. The Company will not and will not permit any
Subsidiary to (a) become a Person described or designated in the Specially Designated Nationals and
Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism
Order or (b) to the best of the Company’s knowledge after reasonable investigation, engage in any
dealings or transactions with any such Person.

     Section 10.9. Restricted Subsidiary Group. The Company will at all times require that either
(i) Consolidated Total Assets equal at least 80% of the consolidated total assets of the Company
and its Subsidiaries, determined in accordance with GAAP, or (ii) consolidated total revenues of
the Company and its Restricted Subsidiaries for the period of four consecutive fiscal quarters most
recently ended equals at least 80% of the consolidated total revenues of the Company and its
Subsidiaries during such period, determined in accordance with GAAP.

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Section 11. Events of Default.

          An “Event of Default” shall exist if any of the following conditions or events shall occur and
be continuing:

     (a) the Company defaults in the payment of any principal or Make-Whole Amount, if any,
on any Note when the same becomes due and payable, whether at maturity or at a date fixed
for prepayment or by declaration or otherwise; or

     (b) the Company defaults in the payment of any interest on any Note for more than five
Business Days after the same becomes due and payable; or

     (c) the Company defaults in the performance of or compliance with any term contained in
Section 10 or any covenant in a Supplement which specifically provides that it shall have
the benefit of this paragraph (c) or any Subsidiary Guarantor defaults in the performance of
or compliance with any term of the Subsidiary Guaranty beyond any period of grace or cure
period (if any) provided with respect thereto; or

     (d) the Company defaults in the performance of or compliance with any term contained
herein or in any Supplement (other than those referred to in paragraphs (a), (b) and (c) of
this Section 11) and such default is not remedied within 30 days after the earlier of (i) a
Responsible Officer obtaining actual knowledge of such default or (ii) the Company receiving
written notice of such default from any holder of a Note (any such written notice to be
identified as a “notice of default” and to refer specifically to this paragraph (d) of
Section 11); or

     (e) any Subsidiary Guaranty ceases to be a legally valid, binding and enforceable
obligation or contract of a Subsidiary Guarantor (other than upon a release of any
Subsidiary Guarantor from a Subsidiary Guaranty in accordance with the terms of
Section 2.3(b) hereof), or any Subsidiary Guarantor or any party by, through or on account
of any such Person, challenges in writing the validity, binding nature or enforceability of
any such Subsidiary Guaranty; or

     (f) any representation or warranty made in writing by or on behalf of the Company or
Subsidiary Guarantor in this Agreement or any Subsidiary Guaranty or by any officer of the
Company or any Subsidiary Guarantor in any writing furnished in connection with the
transactions contemplated hereby or by any Subsidiary Guaranty proves to have been false or
incorrect in any material respect on the date as of which made; or

     (g) (i) the Company or any Restricted Subsidiary is in default (as principal or as
guarantor or other surety) in the payment of any principal of or premium or make-whole
amount or interest (in the payment amount of at least $100,000) on any Debt other than the
Notes that is outstanding in an aggregate principal amount of at least $10,000,000 beyond
any period of grace provided with respect thereto, or (ii) the Company or any Restricted
Subsidiary is in default in the performance of or compliance

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with any term of any
instrument, mortgage, indenture or other agreement relating to any Debt other than the Notes
in an aggregate principal amount of at least $10,000,000 or any other condition exists, and
as a consequence of such default or condition such Debt has become, or has been declared,
due and payable, or (iii) as a consequence of the occurrence or continuation of any event or
condition (other than the passage of time or
the right of the holder of Debt to convert such Debt into equity interests), the Company or
any Restricted Subsidiary has become obligated to purchase or repay Debt other than the
Notes before its regular maturity or before its regularly scheduled dates of payment in an
aggregate outstanding principal amount of at least $10,000,000; or

     (h) the Company or any Material Subsidiary (i) is generally not paying, or admits in
writing its inability to pay, its debts as they become due, (ii) files, or consents by
answer or otherwise to the filing against it of, a petition for relief or reorganization or
arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any
bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction,
(iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment
of a custodian, receiver, trustee or other officer with similar powers with respect to it or
with respect to any substantial part of its property, (v) is adjudicated as insolvent or to
be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or

     (i) a court or governmental authority of competent jurisdiction enters an order
appointing, without consent by the Company or any of its Material Subsidiaries, a custodian,
receiver, trustee or other officer with similar powers with respect to it or with respect to
any substantial part of its property, or constituting an order for relief or approving a
petition for relief or reorganization or any other petition in bankruptcy or for liquidation
or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering
the dissolution, winding-up or liquidation of the Company or any of its Material
Subsidiaries, or any such petition shall be filed against the Company or any of its Material
Subsidiaries and such petition shall not be dismissed within 60 days; or

     (j) a final judgment or judgments at any one time outstanding for the payment of money
aggregating in excess of $10,000,000 (except to the extent covered by independent
third-party insurance as to which the insurer acknowledges in writing that such judgment or
judgments are covered by such insurance) are rendered against one or more of the Company or
any of its Restricted Subsidiaries and which judgments are not, within 60 days after entry
thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days
after the expiration of such stay; or

     (k) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the
Code for any plan year or part thereof or a waiver of such standards or extension of any
amortization period is sought or granted under Section 412 of the Code, (ii) a notice of
intent to terminate any Plan shall have been or is reasonably expected to be filed with the
PBGC or the PBGC shall have instituted proceedings under Section 4042 of ERISA to terminate
or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or
any ERISA Affiliate that a Plan may become a

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subject of any such proceedings, (iii) the
aggregate “amount of unfunded benefit liabilities” (within the meaning of
Section 4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of
ERISA, shall exceed $10,000,000, (iv) the Company or any ERISA Affiliate shall have incurred
or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the
penalty or excise tax provisions of the Code relating to
employee benefit plans, (v) the Company or any ERISA Affiliate withdraws from any
Multiemployer Plan, or (vi) the Company or any Subsidiary establishes or amends any employee
welfare benefit plan that provides post-employment welfare benefits in a manner that would
increase the liability of the Company or any Subsidiary thereunder; and any such event or
events described in clauses (i) through (vi) above, either individually or together with any
other such event or events, would reasonably be expected to have a Material Adverse Effect.

As used in Section 11(k), the terms “employee benefit plan” and “employee welfare benefit plan”
shall have the respective meanings assigned to such terms in Section 3 of ERISA.

Section 12. Remedies on Default, Etc.

     Section 12.1. Acceleration. (a) If an Event of Default with respect to the Company described
in paragraph (h) or (i) of Section 11 (other than an Event of Default described in clause (i) of
paragraph (h) or described in clause (vi) of paragraph (h) by virtue of the fact that such clause
encompasses clause (i) of paragraph (h)) has occurred, all the Notes of every Series then
outstanding shall automatically become immediately due and payable.

          (b) If any other Event of Default has occurred and is continuing, any holder or holders of
more than 50% in aggregate principal amount of the Notes of any Series at the time outstanding may
at any time at its or their option, by notice or notices to the Company, declare all the Notes of
such Series then outstanding to be immediately due and payable.

          (c) If any Event of Default described in paragraph (a) or (b) of Section 11 has occurred and
is continuing with respect to any Notes, any holder or holders of Notes at the time outstanding
affected by such Event of Default may at any time, at its or their option, by notice or notices to
the Company, declare all the Notes held by such holder or holders to be immediately due and
payable.

          Upon any Note’s becoming due and payable under this Section 12.1, whether automatically or by
declaration, such Note will forthwith mature and the entire unpaid principal amount of such Note,
plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest accrued
thereon at the Default Rate) and (ii) the Make-Whole Amount determined in respect of such principal
amount (to the full extent permitted by applicable law), shall all be immediately due and payable,
in each and every case without presentment, demand, protest or further notice, all of which are
hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a Note
has the right to maintain its investment in the Notes free from repayment by the Company (except as
herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the
Company in the event that the Notes are

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prepaid or are accelerated as a result of an Event of
Default, is intended to provide compensation for the deprivation of such right under such
circumstances.

     Section 12.2. Other Remedies. If any Default or Event of Default has occurred and is
continuing, and irrespective of whether any Notes have become or have been declared immediately due
and payable under Section 12.1, the holder of any Note at the time outstanding
may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or
other appropriate proceeding, whether for the specific performance of any agreement contained
herein or in any Note, or for an injunction against a violation of any of the terms hereof or
thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.

     Section 12.3. Rescission. At any time after the Notes of any Series have been declared due
and payable pursuant to clause (b) or (c) of Section 12.1, the holders of not less than 51% in
aggregate principal amount of the Notes of such Series then outstanding, by written notice to the
Company, may rescind and annul any such declaration and its consequences if (a) the Company has
paid all overdue interest on the Notes of such Series, all principal of and Make-Whole Amount on
any Notes of such Series that are due and payable and are unpaid other than by reason of such
declaration, and all interest on such overdue principal and Make-Whole Amount and (to the extent
permitted by applicable law) any overdue interest in respect of the Notes of such Series at the
Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have
become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than
non-payment of amounts that have become due solely by reason of such declaration, have been cured
or have been waived pursuant to Section 17, and (d) no judgment or decree has been entered for the
payment of any monies due pursuant hereto or to any Notes of such Series. No rescission and
annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or
Default or impair any right consequent thereon.

     Section 12.4. No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no
delay on the part of any holder of any Note in exercising any right, power or remedy shall operate
as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right,
power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be
exclusive of any other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise. Without limiting the obligations of the
Company under Section 15, the Company will pay to the holder of each Note on demand such further
amount as shall be sufficient to cover all costs and expenses of such holder incurred in any
enforcement or collection under this Section 12, including, without limitation, reasonable
attorneys’ fees, expenses and disbursements.

Section 13. Registration; Exchange; Substitution of Notes.

     Section 13.1. Registration of Notes. The Company shall keep at its principal executive office
a register for the registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and address of each transferee
of one or more Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered shall be deemed and
treated as the owner and holder thereof for all purposes hereof, and the Company shall not

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be
affected by any notice or knowledge to the contrary. The Company shall give to any holder of a
Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy
of the names and addresses of all registered holders of Notes.

     Section 13.2. Transfer and Exchange of Notes. Upon surrender of any Note to the Company at
the address and to the attention of the designated officer (all as specified in
Section 18(iii)), for registration of transfer or exchange (and in the case of a surrender for
registration of transfer accompanied by a written instrument of transfer duly executed by the
registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied
by the relevant name, address and other information for notices of each transferee of such Note or
part thereof), within ten Business Days thereafter, the Company shall execute and deliver, at the
Company’s expense (except as provided below), one or more new Notes (as requested by the holder
thereof) of the same Series (and of the same tranche if such Series has separate tranches) in
exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the
surrendered Note. Each such new Note shall be payable to such Person as such holder may request
and shall be substantially in the form of the Note of such Series originally issued hereunder or
pursuant to any Supplement. Each such new Note shall be dated and bear interest from the date to
which interest shall have been paid on the surrendered Note or dated the date of the surrendered
Note if no interest shall have been paid thereon. The Company may require payment of a sum
sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of
Notes. Notes shall not be transferred in denominations of less than $2,000,000, provided that if
necessary to enable the registration of transfer by a holder of its entire holding of Notes, one
Note may be in a denomination of less than $2,000,000. Any transferee, by its acceptance of a Note
registered in its name (or the name of its nominee), shall be deemed to have made the
representations set forth in Sections 6.2 and 6.3.

          The Notes have not been registered under the Securities Act or under the securities laws of
any state and each holder agrees that such Notes shall not be transferred or resold unless
registered under the Securities Act and all applicable state securities laws or unless an exemption
from the requirement for such registration is available.

     Section 13.3. Replacement of Notes. Upon receipt by the Company at the address and to the
attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor, notice from such Institutional
Investor of such ownership and such loss, theft, destruction or mutilation), and

     (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to
it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser
or another holder of a Note with a minimum net worth of at least $50,000,000 or a Qualified
Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to
be satisfactory), or

     (b) in the case of mutilation, upon surrender and cancellation thereof,

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	Eagle Materials Inc.
	 	Note Purchase Agreement

the Company at its own expense shall execute and deliver not more than 10 Business Days following
satisfaction of such conditions, in lieu thereof, a new Note of the same Series (and of the same
tranche if such Series has separate tranches), dated and bearing interest from the date to which
interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date
of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

Section 14. Payments on Notes.

     Section 14.1. Place of Payment. Subject to Section 14.2, payments of principal, Make-Whole
Amount and interest becoming due and payable on the Notes shall be made in New York, New York at
the principal office of Bank of America, N.A. in such jurisdiction. The Company may at any time,
by notice to each holder of a Note, change the place of payment of the Notes so long as such place
of payment shall be either the principal office of the Company in such jurisdiction or the
principal office of a bank or trust company in such jurisdiction.

     Section 14.2. Home Office Payment. So long as any Purchaser or Additional Purchaser or such
Purchaser’s nominee or such Additional Purchaser’s nominee shall be the holder of any Note, and
notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company
will pay all sums becoming due on such Note for principal, Make-Whole Amount and interest by the
method and at the address specified for such purpose for such Purchaser on Schedule A hereto or, in
the case of any Additional Purchaser, Schedule A attached to any Supplement pursuant to which such
Additional Purchaser is a party, or by such other method or at such other address as such Purchaser
or Additional Purchaser shall have from time to time specified to the Company in writing for such
purpose, without the presentation or surrender of such Note or the making of any notation thereon,
except that upon written request of the Company made concurrently with or reasonably promptly after
payment or prepayment in full of any Note, such Purchaser or Additional Purchaser shall surrender
such Note for cancellation, reasonably promptly after any such request, to the Company at its
principal executive office or at the place of payment most recently designated by the Company
pursuant to Section 14.1. Prior to any sale or other disposition of any Note held by any Purchaser
or Additional Purchaser or such Person’s nominee, such Person will, at its election, either endorse
thereon the amount of principal paid thereon and the last date to which interest has been paid
thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to
Section 13.2. The Company will afford the benefits of this Section 14.2 to any Institutional
Investor that is the direct or indirect transferee of any Note purchased by a Purchaser under this
Agreement and that has made the same agreement relating to such Note as the Purchasers have made in
this Section 14.2.

Section 15. Expenses, Etc.

     Section 15.1. Transaction Expenses. Whether or not the transactions contemplated hereby are
consummated, the Company will pay all reasonable actual out-of-pocket costs and expenses (including
reasonable attorneys’ fees of a special counsel for the Purchasers or any Additional Purchasers
and, if reasonably required by the Required Holders, local or other counsel) incurred by each
Purchaser and each Additional Purchaser and each other holder of a Note in connection with such
transactions and in connection with any amendments, waivers or

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consents under or in respect of this
Agreement (including any Supplement) or the Notes (whether or not such amendment, waiver or consent
becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing
or defending (or determining whether or how to enforce or defend) any rights under this Agreement
(including any Supplement) or the Notes or in responding to any subpoena or other legal process or
informal investigative demand issued in connection with this Agreement (including any Supplement)
or the Notes, or by reason of being a
holder of any Note, and (b) the costs and expenses, including financial advisors’ fees, incurred in
connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with
any work-out or restructuring of the transactions contemplated hereby and by the Notes. The
Company will pay, and will save each Purchaser, each Additional Purchaser and each other holder of
a Note harmless from, all claims in respect of any fees, costs or expenses if any, of brokers and
finders (other than those, if any, retained by a Purchaser or other holder in connection with its
purchase of the Notes).

     Section 15.2. Survival. The obligations of the Company under this Section 15 will survive the
payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this
Agreement, any Supplement or the Notes, and the termination of this Agreement or any Supplement.

Section 16. Survival of Representations and Warranties; Entire Agreement. 

          All representations and warranties contained herein or in any Supplement shall survive the
execution and delivery of this Agreement, such Supplement and the Notes, the purchase or transfer
by any Purchaser or any Additional Purchaser of any such Note or portion thereof or interest
therein and the payment of any Note may be relied upon by any subsequent holder of any such Note,
regardless of any investigation made at any time by or on behalf of any Purchaser or any Additional
Purchaser or any other holder of any such Note. All statements contained in any certificate or
other instrument delivered by or on behalf of the Company pursuant to this Agreement or any
Supplement shall be deemed representations and warranties of the Company under this Agreement;
provided, that the representations and warranties contained in any Supplement shall only be made
for the benefit of the Additional Purchasers which are party to such Supplement and the holders of
the Notes issued pursuant to such Supplement, including subsequent holders of any Note issued
pursuant to such Supplement, and shall not require the consent of the holders of existing Notes.
Subject to the preceding sentence, this Agreement (including every Supplement) and the Notes embody
the entire agreement and understanding between the Purchasers and the Additional Purchasers and the
Company and supersede all prior agreements and understandings relating to the subject matter
hereof.

Section 17. Amendment and Waiver.

     Section 17.1. Requirements. (a) Subject to Section 17.1(c), this Agreement (including any
Supplement) and the Notes may be amended, and the observance of any term hereof or of the Notes may
be waived (either retroactively or prospectively), with (and only with) the written consent of the
Company and the Required Holders, except that (i) no amendment or waiver of any of the provisions
of Section 1, 2, 3, 4, 5, 6 or 21 hereof or the corresponding

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provision of any Supplement, or any
defined term (as it is used in any such Section or such corresponding provision of any Supplement),
will be effective as to any holder of Notes unless consented to by such holder of Notes in writing,
and (ii) no such amendment or waiver may, without the written consent of all of the holders of
Notes at the time outstanding directly affected thereby, (A) subject to the provisions of
Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or
payment of principal of, or reduce the rate or change the time of payment or method of computation
of interest (if such change results in a decrease in the
interest rate) or of the Make-Whole Amount on, the Notes, (B) change the percentage of the
principal amount of the Notes the holders of which are required to consent to any such amendment or
waiver, or (C) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20 or the corresponding provision
of any Supplement.

          (b) Supplements. Notwithstanding anything to the contrary contained herein, the Company may
enter into any Supplement providing for the issuance of one or more Series of Additional Notes
consistent with Section 2.2 hereof without obtaining the consent of any holder of any other Series
of Notes.

          (c) Reduction to Interest Rates, Payments or Make-Whole. Notwithstanding anything to the
contrary contained in Section 17.1(a), (i) the interest rate (including the time of payment) and
Make-Whole Amount (or other prepayment premium, if applicable) (or method of computation thereof)
associated with any Series of Notes and (ii) the scheduled prepayment provisions set forth in
Section 8.1 of this Agreement (or the corresponding section of any Supplement), may be amended with
the prior written consent of the Company and all holders of the Notes of such Series, and without
any requirements to obtain the prior written consent of the holders of any other Series of Notes.

     Section 17.2. Solicitation of Holders of Notes.

          (a) Solicitation. The Company will provide each holder of the Notes (irrespective of the
amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the
date a decision is required, to enable such holder to make an informed and considered decision with
respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof, of
any Supplement or of the Notes. The Company will deliver executed or true and correct copies of
each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each
holder of outstanding Notes promptly following the date on which it is executed and delivered by,
or receives the consent or approval of, the requisite holders of Notes.

          (b) Payment. The Company will not directly or indirectly pay or cause to be paid any
remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any
security or provide other credit support, to any holder of Notes as consideration for or as an
inducement to the entering into by any holder of Notes of any waiver or amendment of any of the
terms and provisions hereof or of any Supplement unless such remuneration is concurrently paid, or
security is concurrently granted or other credit support is concurrently provided, on the same
terms, ratably to each holder of Notes then outstanding even if such holder did not consent to such
waiver or amendment.

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          (c) Consent in Contemplation of Transfer. Any consent made pursuant to this Section 17 by a
holder of Notes that has transferred or has agreed to transfer its Notes to the Company, any
Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written
consent as a condition to such transfer shall be void and of no force or effect except solely as to
such holder, and any amendments effected or waivers granted or to be effected or granted that would
not have been or would not be so effected or granted but for such consent (and the consents of all
other holders of Notes that were acquired under the same or similar conditions) shall be void and
of no force or effect except solely as to such holder.

     Section 17.3. Binding Effect, Etc. Any amendment or waiver consented to as provided in this
Section 17 applies equally to all holders of Notes and is binding upon them and upon each future
holder of any Note and upon the Company without regard to whether such Note has been marked to
indicate such amendment or waiver. No such amendment or waiver will extend to or affect any
obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or
impair any right consequent thereon. No course of dealing between the Company and the holder of
any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a
waiver of any rights of any holder of such Note. As used herein, the term “this Agreement” and
references thereto shall mean this Agreement as it may from time to time be amended or
supplemented.

     Section 17.4. Notes Held by Company, Etc. Solely for the purpose of determining whether the
holders of the requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this Agreement or the
Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon
the direction of the holders of a specified percentage of the aggregate principal amount of Notes
then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall
be deemed not to be outstanding.

Section 18. Notices.

     All notices and communications provided for hereunder shall be in writing and sent (a) by
telecopy if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), (b) by registered or certified mail with return
receipt requested (postage prepaid) or (c) by a recognized overnight delivery service (with charges
prepaid). Any such notice must be sent:

          (i) if to a Purchaser or such Purchaser’s nominee, to such Purchaser or such
Purchaser’s nominee at the address specified for such communications in Schedule A to this
Agreement, or at such other address as such Purchaser or such Purchaser’s nominee shall have
specified to the Company in writing pursuant to this Section 18;

          (ii) if to an Additional Purchaser or such Additional Purchaser’s nominee, to such
Additional Purchaser or such Additional Purchaser’s nominee at the address specified for
such communications in Schedule A to any Supplement, or at such other address as such
Additional Purchaser or such Additional Purchaser’s nominee shall have specified to the
Company in writing,

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     (iii) if to any other holder of any Note, to such holder at such address as such other
holder shall have specified to the Company in writing pursuant to this Section 18, or

     (iv) if to the Company, to the Company at its address set forth at the beginning hereof
to the attention of Chief Financial Officer, with a copy to the General Counsel, or at such
other address as the Company shall have specified to the holder of each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

Section 19. Reproduction of Documents.

     This Agreement and all documents relating thereto, including, without limitation,
(a) consents, waivers and modifications that may hereafter be executed, (b) documents received by
any Purchaser at the Closing or by any Additional Purchaser (except the Notes themselves), and
(c) financial statements, certificates and other information previously or hereafter furnished to
any Purchaser or any Additional Purchaser, may be reproduced by such Purchaser or such Additional
Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such
Purchaser or such Additional Purchaser may destroy any original document so reproduced. The
Company agrees and stipulates that, to the extent permitted by applicable law, any such
reproduction shall be admissible in evidence as the original itself in any judicial or
administrative proceeding (whether or not the original is in existence and whether or not such
reproduction was made by such Purchaser or such Additional Purchaser in the regular course of
business) and any enlargement, facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence. This Section 19 shall not prohibit the Company or any other
holder of Notes from contesting any such reproduction to the same extent that it could contest the
original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

Section 20. Confidential Information.

     For the purposes of this Section 20, “Confidential Information” means information delivered to
any Purchaser or any Additional Purchaser by or on behalf of the Company or any
Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this
Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise
adequately identified when received by such Purchaser or Additional Purchaser as being confidential
information of the Company or such Subsidiary, provided that such term does not include information
that (a) was publicly known or otherwise known to such Purchaser or such Additional Purchaser prior
to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission
by such Purchaser or such Additional Purchaser or any Person acting on such Purchaser’s or such
Additional Purchaser’s behalf, (c) otherwise becomes known to such Purchaser or such Additional
Purchaser other than through disclosure by the Company or any Subsidiary, or through disclosure by
any other Person known by such Purchaser or Additional Purchaser to be subject to a confidentiality
agreement or undertaking, or (d) constitutes financial statements delivered to such Purchaser
or
such Additional Purchaser

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under Section 7.1 that are otherwise publicly available. Each Purchaser
and each Additional Purchaser will maintain the confidentiality of such Confidential Information in
accordance with procedures adopted by such Purchaser or such Additional Purchaser in good faith to
protect confidential information of third parties delivered to such Purchaser or such Additional
Purchaser, provided that such Purchaser or such Additional Purchaser may deliver or disclose
Confidential Information to (i) such Purchaser’s or such Additional Purchaser’s directors,
trustees, officers, employees, agents, attorneys and affiliates (to the extent such disclosure
reasonably relates to the administration of the investment represented by such Purchaser’s or such
Additional Purchaser’s Notes), (ii) such Purchaser’s or such Additional Purchaser’s financial
advisors and other professional advisors who agree to hold confidential the Confidential
Information substantially in accordance with the terms of this Section 20, (iii) any other holder
of any Note, (iv) any Institutional Investor to which such Purchaser or such Additional Purchaser
sells or offers to sell such Note or any part thereof or any participation therein (if such Person
has agreed in writing prior to its receipt of such Confidential Information to be bound by the
provisions of this Section 20), (v) any Person from which such Purchaser or such Additional
Purchaser offers to purchase any security of the Company (if such Person has agreed in writing
prior to its receipt of such Confidential Information to be bound by the provisions of this
Section 20), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser
or such Additional Purchaser, (vii) the National Association of Insurance Commissioners or any
similar organization, or any nationally recognized rating agency that requires access to
information about such Purchaser’s or such Additional Purchaser’s investment portfolio, or
(viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to
effect compliance with any law, rule, regulation or order applicable to such Purchaser or such
Additional Purchaser, (x) in response to any subpoena or other legal process, (y) in connection
with any litigation to which such Purchaser or such Additional Purchaser is a party or (z) if an
Event of Default has occurred and is continuing, to the extent such Purchaser or such Additional
Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in
the enforcement or for the protection of the rights and remedies under such Purchaser’s or such
Additional Purchaser’s Notes, the Subsidiary Guaranty and this Agreement. Each holder of a Note,
by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the
benefits of this Section 20 as though it were a party to this Agreement. On reasonable request by
the Company in connection with the delivery to any holder of a Note of information required to be
delivered to such holder under this Agreement or requested by such
holder (other than a holder that is a party to this Agreement or its nominee), such holder
will enter into an agreement with the Company embodying the provisions of this Section 20.

Section 21. Substitution of Purchaser.

     Each Purchaser and each Additional Purchaser shall have the right to substitute any one of its
Affiliates as the purchaser of the Notes that it has agreed to purchase hereunder, by written
notice to the Company, which notice shall be signed by both such Purchaser or such Additional
Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound by this
Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of
the representations set forth in Section 6. Upon receipt of such notice, any reference to such
Purchaser or such Additional Purchaser in this Agreement (other than in this Section 21), shall

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be
deemed to refer to such Affiliate in lieu of such original Purchaser or such original Additional
Purchaser. In the event that such Affiliate is so substituted as a Purchaser or an Additional
Purchaser hereunder and such Affiliate thereafter transfers to such original Purchaser or such
original Additional Purchaser all of the Notes then held by such Affiliate, upon receipt by the
Company of notice of such transfer, any reference to such Affiliate as a “Purchaser” or an
“Additional Purchaser” in this Agreement (other than in this Section 21), shall no longer
be deemed
to refer to such Affiliate, but shall refer to such original Purchaser or such original Additional
Purchaser, and such original Purchaser or such original Additional Purchaser shall again have all
the rights of an original holder of the Notes under this Agreement.

Section 22. Miscellaneous.

     Section 22.1. Successors and Assigns. All covenants and other agreements contained in this
Agreement (including all covenants and other agreements contained in any Supplement) by or on
behalf of any of the parties hereto bind and inure to the benefit of their respective successors
and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed
or not.

     Section 22.2. Payments Due on Non-Business Days. Anything in this Agreement, any Supplement
or the Notes to the contrary notwithstanding (but without limiting the requirement in Section 8.4
that the notice of any optional prepayment specify a Business Day as the date fixed for such
prepayment), any payment of principal of or Make-Whole Amount or interest on any Note that is due
on a date other than a Business Day shall be made on the next succeeding Business Day without
including the additional days elapsed in the computation of the interest payable on such next
succeeding Business Day; provided that if the maturity date of any Note is a date other than a
Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding
Business Day and shall include the additional days elapsed in the computation of interest payable
on such next succeeding Business Day.

     Section 22.3. Accounting Terms. All accounting terms used herein (including any Supplement)
which are not expressly defined in this
Agreement have the meanings respectively given to them in accordance with GAAP. Except as
otherwise specifically provided herein or in any Supplement, (i) all computations made pursuant to
this Agreement (including any Supplement) shall be made in accordance with GAAP, and (ii) all
financial statements shall be prepared in accordance with GAAP.

     Section 22.4. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by
law) not invalidate or render unenforceable such provision in any other jurisdiction.

     Section 22.5. Construction. Each covenant contained herein shall be construed (absent express
provision to the contrary) as being independent of each other covenant contained herein, so that
compliance with any one covenant shall not (absent such an express contrary provision) be deemed to
excuse compliance with any other covenant. Where any provision herein refers to

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action to be taken
by any Person, or which such Person is prohibited from taking, such provision shall be applicable
whether such action is taken directly or indirectly by such Person.

               For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be
deemed to be a part hereof.

     Section 22.6. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original but all of which together shall constitute one instrument. Each
counterpart may consist of a number of copies hereof, each signed by less than all, but together
signed by all, of the parties hereto.

     Section 22.7. Governing Law. This Agreement and each Supplement shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by, the law of the
State of New York excluding choice-of-law principles of the law of such State that would permit the
application of the laws of a jurisdiction other than such State.

     Section 22.8. Jurisdiction and Process; Waiver of Jury Trial. (a) The Company irrevocably
submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the
Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or
relating to this Agreement, any Supplement or the Notes. To the fullest extent permitted by
applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a
defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any
objection that it may now or hereafter have to the laying of the venue of any such suit, action or
proceeding brought in any such court and any claim that any such suit, action or proceeding brought
in any such court has been brought in an inconvenient forum.

          (b) The Company consents to process being served by or on behalf of any holder of Notes in any
suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof
by registered or certified mail (or any substantially similar form of mail), postage prepaid,
return receipt requested, to it at its address specified in Section 18 or at such other address of
which such holder shall then have been notified pursuant to said Section. The Company agrees that
such service upon receipt (i) shall be deemed in every respect effective service of process upon it
in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by
applicable law, be taken and held to be valid personal service upon and personal delivery to it.
Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt
furnished by the United States Postal Service or any reputable commercial delivery service.

          (c) Nothing in this Section 22.8 shall affect the right of any holder of a Note to serve
process in any manner permitted by law, or limit any right that the holders of any of the Notes may
have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to
enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

          (d) The parties hereto to the fullest extent permitted by law hereby waive trial by jury
in any action brought on or with respect to this Agreement, any  

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Supplement, the Notes or any other
document executed in connection herewith or therewith.

* * * * *

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	 	Note Purchase Agreement

     The execution hereof by the Purchasers shall constitute a contract among the Company and the
Purchasers for the uses and purposes hereinabove set forth. This Agreement may be executed in any
number of counterparts, each executed counterpart constituting an original but all together only
one agreement.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	Eagle Materials Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Arthur R. Zunker, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Arthur R. Zunker, Jr.	 	 
	 

	 	 	 	Title: Senior Vice President – Finance and Treasurer
	 	 

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	 	Note Purchase Agreement

Accepted as of the date first written above.

	 	 	 	 	 	 	 
	 	 	John Hancock Life Insurance Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Michael L. Short	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Michael L. Short	 	 
	 

	 	 	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	John Hancock Variable Life Insurance Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Michael L. Short	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Michael L. Short	 	 
	 

	 	 	 	Managing Director
	 	 

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Connecticut General Life Insurance Company

By: Cigna Investments, Inc. (authorized agent)

	 	 	 	 	 
	 	 	 
	 	By  	                       /s/ Debra J. Height
 	 
	 	 	Name:  	Debra J. Height 	 
	 	 	Title:  	Managing Director 	 
	 

Life Insurance Company of North America

By:
Cigna Investments, Inc.
(authorized agent)

	 	 	 	 	 
	 	 	 
	 	By  	                       /s/ Debra J. Height
 	 
	 	 	Name:  	Debra J. Height 	 
	 	 	Title:  	Managing Director 	 

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	 	State Farm Insurance Company

 	 
	 	By  	/s/ Julie Pierce
 	 
	 	 	Julie Pierce 	 
	 	 	Senior Investment Officer 	 
	 
	 	 	 
	 	By  	                       /s/ Lisa Rogers
 	 
	 	 	Lisa Rogers 	 
	 	 	Investment Officer 	 
	 

	 	 	 	 	 
	 	State Farm Life and Accident Assurance Company

 	 
	 	By  	/s/ Julie Pierce
 	 
	 	 	Julie Pierce 	 
	 	 	Senior Investment Officer 	 
	 
	 	 	 
	 	By  	                       /s/ Lisa Rogers
 	 
	 	 	Lisa Rogers 	 
	 	 	Investment Officer 	 

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	 	Note Purchase Agreement

Massachusetts Mutual Life Insurance
Company

By:
Babson Capital Management LLC as
Investment Advisor

	 	 	 	 	 
	 	 	 
	 	By  	                      /s/ Elisabeth A. Perenick
 	 
	 	 	Name:  	Elisabeth A. Perenick 	 
	 	 	Title:  	Managing Director 	 
	 

C.M. Life Insurance Company

By:
Babson Capital Management LLC as
Investment Sub-Advisor

	 	 	 	 	 
	 	 	 
	 	By  	                      /s/ Elisabeth A. Perenick
 	 
	 	 	Name:  	Elisabeth A. Perenick 	 
	 	 	Title:  	Managing Director 	 

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ING USA Annuity and Life Insurance Company

ING Life Insurance and Annuity Company

Security Life of Denver Insurance Company

ReliaStar Life Insurance Company

ReliaStar Life Insurance Company of New York

By:
ING Investment Management LLC, as
Agent

	 	 	 	 	 
	 	 	 
	 	By  	                     /s/ James V. Wittich
 	 
	 	 	Name:  	James V. Wittich 	 
	 	 	Title:  	Senior Vice President 	 

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	 	The Guardian Life Insurance Company of America

 	 
	 	By  	/s/ Thomas Donohue
 	 
	 	 	Name:  	Thomas Donohue 	 
	 	 	Title:  	Managing Director 	 

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American Fidelity Assurance Company

Fort Dearborn Life Insurance Company

Blue Cross and Blue Shield of Florida, Inc.

American Republic Insurance Company

The Catholic Aid Association

The Lafayette Life Insurance Company

Great Western Insurance Company

By: Advantus Capital Management, Inc.

	 	 	 	 	 
	 	 	 
	 	By  	                      /s/ Theodore R. Hoxmeier
 	 
	 	 	Name:  	Theodore R. Hoxmeier 	 
	 	 	Title:  	Vice President 	 

-53-

 

	 	 	 	 	 

			
	 	 	 
	Eagle Materials Inc.
	 	Note Purchase Agreement

	 	 	 	 	 
	 	Life Insurance Company of the Southwest

 	 
	 	By  	/s/ R. Scott Higgins
 	 
	 	 	Name:  	R. Scott Higgins 	 
	 	 	Title:  	Vice President Sentinel Asset Management 	 
	 
	 	National Life Insurance Company

 	 
	 	By  	/s/ R. Scott Higgins
 	 
	 	 	Name:  	R. Scott Higgins 	 
	 	 	Title:  	Vice President Sentinel Asset Management 	 

-54-

 

	 	 	 	 	 

			
	 	 	 
	Eagle Materials Inc.
	 	Note Purchase Agreement

The Union Central Life Insurance Company

By:
Summit Investment Advisors, Inc., as Agent

	 	 	 	 	 
	 	 	 
	 	By  	                         /s/ Andrew S. White
 	 
	 	 	Name:  	Andrew S. White 	 
	 	 	Title:  	Managing Director-Private Placements 	 
	 

Acacla Life Insurance Company

By:
Summit Investment Advisors, Inc., as Agent

	 	 	 	 	 
	 	 	 
	 	By  	                         /s/ Andrew S. White
 	 
	 	 	Name:  	Andrew S. White 	 
	 	 	Title:  	Managing Director-Private Placements 	 
	 

Ameritas Life Insurance Corp.

By:
Summit Investment Advisors, Inc., as Agent

	 	 	 	 	 
	 	 	 
	 	By  	                         /s/ Andrew S. White
 	 
	 	 	Name:  	Andrew S. White 	 
	 	 	Title:  	Managing Director-Private Placements 	 

-55-

 

	 	 	 	 	 

			
	 	 	 
	Eagle Materials Inc.
	 	Note Purchase Agreement

	 	 	 	 	 
	 	National Guardian Life Insurance Company

 	 
	 	By  	/s/ R.A. Mucci
 	 
	 	 	Name:  	R.A. Mucci 	 
	 	 	Title:  	Senior Vice President & Treasurer 	 
	 
	 	Settlers Life Insurance Company

 	 
	 	By  	/s/ R.A. Mucci
 	 
	 	 	Name:  	R.A. Mucci 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 

-56-

 

Schedule A (to Note Purchase Agreement) intentionally omitted

Schedule A

(to Note Purchase Agreement)

 

 

Defined Terms

     As used herein, the following terms have the respective meanings set forth below or set forth
in the Section hereof following such term:

     “Additional Notes” is defined in Section 2.2.

     “Additional Purchasers” means purchasers of Additional Notes.

     “Affiliate” means, at any time, and with respect to any Person, (a) any other Person that at
such time directly or indirectly through one or more intermediaries Controls, or is Controlled by,
or is under common Control with, such first Person, and (b) with respect to the Company, any Person
beneficially owning or holding, directly or indirectly, 10% or more of any class of voting or
equity interests of the Company or any Subsidiary or any Person of which the Company and its
Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any
class of voting or equity interests. As used in this definition, “Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by contract or otherwise.
Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to
an Affiliate of the Company.

     “Anti-Terrorism Order” means Executive Order No. 13,224 of September 24, 2001, Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

     “Bank Credit Agreement” means the Amended and Restated Credit Agreement dated as of
December 16, 2004 by and among the Company, JPMorgan Chase Bank, N.A., as administrative agent,
Bank of America, N.A. and Branch Banking and Trust Company, as co-syndication agents, and Wells
Fargo Bank, N.A. and Union Bank of California, N.A. as co-documentation agents, and the other
financial institutions party thereto, as amended, restated, joined, supplemented or otherwise
modified from time to time, and any renewals, extensions or replacements thereof, which constitute
the primary bank credit facility of the Company and its Subsidiaries.

     “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial
banks in New York, New York or Dallas, Texas are required or authorized to be closed.

     “Capital Lease” means, at any time, a lease with respect to which the lessee is required
concurrently to recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

     “Capital Lease Obligation” means, with respect to any Person and a Capital Lease, the amount
of the obligation of such Person as the lessee under such Capital Lease which would, in accordance
with GAAP, appear as a liability on a balance sheet of such Person.

Schedule B

(to Note Purchase Agreement)

 

 

     “Closing” is defined in Section 3.

     “Closing Date” is defined in Section 3.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time.

     “Company” means Eagle Materials Inc., a Delaware corporation, or any successor that becomes
such in the manner prescribed in Section 10.6.

     “Confidential Information” is defined in Section 20.

     “Consolidated Debt” means, as of any date of determination, the total amount of all Debt of
the Company and its Restricted Subsidiaries determined on a consolidated basis in accordance with
GAAP.

     “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such period,
plus, to the extent deducted in computing such Consolidated Net Income and without duplication,
(a) depreciation, depletion, if any, and amortization expense for such period, (b) Consolidated
Interest Expense for such period, (c) income tax expense for such period, and (d) other non-cash
charges for such period, all as determined on a consolidated basis in accordance with GAAP. For
purposes of calculating Consolidated EBITDA for any period of four consecutive quarters, if during
such period the Company or any Restricted Subsidiary shall have acquired or disposed of any Person
or acquired or disposed of all or substantially all of the operating assets of any Person,
Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if
such transaction had occurred on the first day of such period.

     “Consolidated Interest Expense” shall mean, for any period, the aggregate of all interest
expense of the Company and its Restricted Subsidiaries deducted in the calculation of Consolidated
Net Income for such period, determined on a consolidated basis in accordance with GAAP. For
purposes of calculating Consolidated Interest Expense for any period of four consecutive quarters,
if during such period the Company or any Restricted Subsidiary shall have acquired or disposed of
any Person or acquired or disposed of all or substantially all of the operating assets of any
Person, Consolidated Interest Expense for such period shall be calculated after giving pro forma
effect thereto as if such transaction had occurred on the first day of such period.

     “Consolidated Net Income” shall mean, for any period, the consolidated net income (or loss) of
the Company and its Restricted Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP.

     “Consolidated Net Worth” shall mean the consolidated stockholder’s equity of the Company and
its Restricted Subsidiaries, as defined according to GAAP.

B-2

 

     “Consolidated Total Assets” means, as of any date of determination, the total amount of all
assets of the Company and its Restricted Subsidiaries, determined on a consolidated basis in
accordance with GAAP.

     “Debt” means, with respect to any Person, without duplication,

     (a) its liabilities for borrowed money;

     (b) its liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable and other accrued liabilities arising in the ordinary course of
business but including, without limitation, all liabilities created or arising under any
conditional sale or other title retention agreement with respect to any such property);

     (c) its Capital Lease Obligations;

     (d) its liabilities for borrowed money secured by any Lien with respect to any property
owned by such Person (whether or not it has assumed or otherwise become liable for such
liabilities); and

     (e) Guarantees by such Person with respect to liabilities of a type described in any of
clauses (a) through (d) hereof.

     Debt of any Person shall include all obligations of such Person of the character described in
clauses (a) through (e) to the extent such Person remains legally liable in respect thereof
notwithstanding that any such obligation is deemed to be extinguished under GAAP.

     “Default” means an event or condition the occurrence or existence of which would, with the
lapse of time or the giving of notice or both, become an Event of Default.

     “Default Rate” means, with respect to the Notes of any Series, that rate of interest that is
2% per annum above the rate of interest stated in clause (a) of the first paragraph of the Notes of
such Series (and of such tranche if such Series has separate tranches).

     “Electronic Delivery” is defined in Section 7.1(a).

     “Environmental Laws” means any and all federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including but
not limited to those related to hazardous substances or wastes, air emissions and discharges to
waste or public systems.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time in effect.

B-3

 

     “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as
a single employer together with the Company under section 414 of the Code.

     “Event of Default” is defined in Section 11.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” means, at any time and with respect to any property, the sale value of
such property that would be realized in an arm’s-length sale at such time between an informed and
willing buyer and an informed and willing seller (neither being under a compulsion to buy or sell),
as reasonably determined in the good faith opinion of the Company’s board of directors.

     “GAAP” means those generally accepted accounting principles as in effect from time to time in
the United States of America.

     “Governmental Authority” means

     (a) the government of

     (i) the United States of America or any state or other political subdivision
thereof, or

     (ii) any jurisdiction in which the Company or any Restricted Subsidiary
conducts all or any part of its business, or which has jurisdiction over any
properties of the Company or any Restricted Subsidiary, or

     (b) any entity exercising executive, legislative, judicial, regulatory or
administrative functions of, or pertaining to, any such government.

     “Guaranty” means, with respect to any Person, any obligation (except the endorsement in the
ordinary course of business of negotiable instruments for deposit or collection) of such Person
guaranteeing or in effect guaranteeing any Debt, dividend or other obligation of any other Person
in any manner, whether directly or indirectly, including (without limitation) obligations incurred
through an agreement, contingent or otherwise, by such Person:

     (a) to purchase such Debt or obligation or any property constituting security therefor
primarily for the purpose of assuring the owner of such Debt or obligation of the ability of
any other Person to make payment of the Debt or obligation;

     (b) to advance or supply funds (i) for the purchase or payment of such Debt or
obligation, or (ii) to maintain any working capital or other balance sheet condition or any
income statement condition of any other Person or otherwise to advance or make available
funds for the purchase or payment of such Debt or obligation;

B-4

 

     (c) to lease properties or to purchase properties or services primarily for the purpose
of assuring the owner of such Debt or obligation of the ability of any other Person to make
payment of the Debt or obligation; or

     (d) otherwise to assure the owner of such Debt or obligation against loss in respect
thereof.

     In any computation of the Debt or other liabilities of the obligor under any Guaranty, the
Debt or other obligations that are the subject of such Guaranty shall be assumed to be direct
obligations of such obligor, provided that the amount of such Debt outstanding for purposes of this
Agreement shall not exceed the maximum amount of Debt that is the subject of such Guaranty.

     “Guaranty Release” is defined in Section 2.3.

     “Hazardous Materials” means any and all pollutants, toxic or hazardous wastes or other
substances that might pose a hazard to health and safety, the removal of which may be required or
the generation, manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of
which is or shall be restricted, prohibited or penalized by any applicable law including, but not
limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum,
petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized
substances.

     “holder” means, with respect to any Note, the Person in whose name such Note is registered in
the register maintained by the Company pursuant to Section 13.1.

     “Institutional Investor” means (a) any original purchaser of a Note, (b) any holder of more
than $2,000,000 of the aggregate principal amount of the Notes then outstanding, and (c) any bank,
trust company, savings and loan association or other financial institution, any pension plan, any
investment company, any insurance company, any broker or dealer, or any other similar financial
institution or entity, regardless of legal form.

     “Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security
interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title retention agreement
(other than an operating lease) or Capital Lease, upon or with respect to any property or asset of
such Person (including, in the case of stock, shareholder agreements, voting trust agreements and
all similar arrangements).

     “Make-Whole Amount” shall have the meaning (i) set forth in Section 8.6 with respect to any
Series 2007A Note and (ii) set forth in the applicable Supplement with respect to any other Series
of Notes.

     “Material” means material in relation to the business, operations, affairs, financial
condition, assets or properties of the Company and its Restricted Subsidiaries taken as a whole.

B-5

 

     “Material Adverse Effect” means a material adverse effect on (a) the business, operations,
affairs, financial condition, assets or properties of the Company and its Restricted Subsidiaries
taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement
(including any Supplement) and the Notes, (c) the ability of any Subsidiary Guarantor to perform
its obligations under the Subsidiary Guaranty or (d) the validity or enforceability of this
Agreement (including any Supplement), the Notes or the Subsidiary Guaranty.

     “Material Subsidiary” means, at any time, any Restricted Subsidiary of the Company which,
together with all other Restricted Subsidiaries of such Restricted Subsidiary, accounts for more
than (i) 5% of Consolidated Total Assets or (ii) 5% of consolidated revenue of the Company and its
Restricted Subsidiaries.

     “Memorandum” is defined in Section 5.3.

     “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in
Section 4001(a)(3) of ERISA).

     “Notes” is defined in Section 1.

     “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other
officer of the Company whose responsibilities extend to the subject matter of such certificate.

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any
successor thereto.

     “Person” means an individual, partnership, corporation, limited liability company,
association, trust, unincorporated organization or other entity, or a government or agency or
political subdivision thereof.

     “Plan” means an “employee benefit plan” (as defined in Section 3(3) of ERISA) subject to Title
I of ERISA that is or, within the preceding five years, has been established or maintained, or to
which contributions are or, within the preceding five years, have been made or required to be made,
by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate
may have any liability.

     “Priority Debt” means (without duplication), as of the date of any determination thereof, the
sum of (i) all unsecured Debt of Restricted Subsidiaries (including all Guaranties of Debt of the
Company but excluding (x) Debt owing to the Company or any other Restricted Subsidiary, (y) Debt
outstanding at the time such Person became a Restricted Subsidiary (other than an Unrestricted
Subsidiary which is designated as a Restricted Subsidiary pursuant to Section 9.6 hereof), provided
that such Debt shall have not been incurred in contemplation of such person becoming a Restricted
Subsidiary, and (z) all Guaranties of Debt of the Company by any Restricted Subsidiary which has
also guaranteed the Notes), and (ii) all Debt of the Company and its Restricted Subsidiaries
secured by Liens other than Debt secured by Liens permitted by subparagraphs (a) through (j),
inclusive, of Section 10.4.

B-6

 

     “property” or “properties” means, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate.

     “Purchasers” means the purchasers of the Notes named in Schedule A hereto.

     “QPAM Exemption” means Prohibited Transaction Class Exemption 84-14 issued by the United
States Department of Labor.

     “Qualified Institutional Buyer” means any Person who is a qualified institutional buyer within
the meaning of such term as set forth in Rule 144(a)(1) under the Securities Act.

     “Receivables Securitization Financing” means a transaction or group of transactions typically
referred to as a securitization in which a Person sells, directly or indirectly through another
Person, its accounts receivable on a non-recourse basis (other than for recourse relating to
certain bad acts or breaches of representations or warranties) in a transaction treated as a legal
true sale to a special purpose bankruptcy remote entity that obtains debt financing or sells
interests in such receivables to finance the purchase price and any further assignment by such
entity in connection therewith.

     “Related Rights” means, with respect to any account receivable that is conveyed pursuant to a
Receivables Securitization Financing (for purposes of this definition, each such account receivable
is referred to as a “Subject Receivable”, and the Company, together with the Subsidiaries of the
Company which are party to the applicable Receivables Securitization Financing, are referred to as
the “Subject Parties”):

     (a) all of the Subject Parties’ interest in any goods (including returned goods), and
documentation of title evidencing the shipment or storage of any goods (including returned
goods), relating to any sale giving rise to such Subject Receivable,

     (b) all instruments and chattel paper that may evidence such Subject Receivable,

     (c) all other security interests or liens and property subject thereto from time to
time purporting to secure payment of such Subject Receivable, whether pursuant to the
contract or agreement evidencing such Subject Receivable or otherwise, together with all
uniform commercial code financing statements or similar filings related thereto,

     (d) all of the Subject Parties’ rights, interests and claims under the contracts or
agreements evidencing such Subject Receivable and all guaranties, indemnities, insurance and
other agreements or arrangements of whatever character from time to time supporting or
securing payment of such Subject Receivable or otherwise relating to such Subject
Receivable, whether pursuant to the contract or agreement evidencing such Subject Receivable
or otherwise;

     (e) all of the Subject Parties’ rights, interests and claims under the agreements
evidencing the applicable Receivables Securitization Financing, any contract or

B-7

 

agreement evidencing such Subject Receivable and any other agreement or document between the
Subject Party that originated such Subject Receivable and the account debtor with respect to
such Subject Receivable;

     (f) all collections and other proceeds of such Subject Receivable, and all deposit
accounts or securities accounts into which the account debtor with respect to such Subject
Receivable is directed to deposit the payments on such Subject Receivable or into which such
payments are regularly deposited;

     (g) all books and records of any Subject Party relating to such Subject Receivable or
any of the foregoing; and

     (h) all collections and other proceeds and products of, and all monies due or to become
due to any Subject Party with respect to, any of the foregoing that are received by any
Subject Party.

     “Required Holders” means, at any time, the holders of not less than 51% in principal amount of
the Notes of each Series at the time outstanding (exclusive of Notes then owned by the Company or
any of its Affiliates and any Notes held by parties who are contractually required to abstain from
voting with respect to matters affecting the holders of the Notes).

     “Responsible Officer” means any Senior Financial Officer and any other officer of the Company
with responsibility for the administration of the relevant portion of this Agreement.

     “Restricted Subsidiary” means any Subsidiary as to which: (i) at least a majority of the
voting securities are owned by the Company and/or one or more Restricted Subsidiaries and (ii) the
Company has not designated such Subsidiary an Unrestricted Subsidiary by notice in writing given to
the holders of the Notes.

     “Securities Act” means the Securities Act of 1933, as amended from time to time.

     “Senior Debt” means, as of the date of any determination thereof, all Consolidated Debt, other
than Subordinated Debt.

     “Senior Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or comptroller of the Company.

     “Series” means any series of Notes issued pursuant to this Agreement or any Supplement hereto.

     “Series 2007A Notes” is defined in Section 1 of this Agreement.

     “Subordinated Debt” means all unsecured Debt of the Company which shall contain or have
applicable thereto subordination provisions providing for the subordination thereof to other Debt
of the Company (including, without limitation, the obligations of the Company under this Agreement,
any Supplement or the Notes).

B-8

 

     “Subsidiary” means, as to any Person, any corporation, association or other business entity in
which such Person or one or more of its Subsidiaries or such Person and one or more of its
Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group)
ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons
performing similar functions) of such entity, and any partnership or joint venture if more than a
50% interest in the profits or capital thereof is owned by such Person or one or more of its
Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and
does ordinarily take major business actions without the prior approval of such Person or one or
more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a
“Subsidiary” is a reference to a Subsidiary of the Company.

     “Subsidiary Guarantor” means each Subsidiary which is party to the Subsidiary Guaranty.

     “Subsidiary Guaranty” is defined in Section 2.3.

     “Successor Entity” is defined in Section 10.6.

     “Supplement” is defined in Section 2.2.

     “tranche” means all Notes of a Series having the same maturity, interest rate and schedule for
mandatory prepayments.

     “Tranche A Notes” is defined in Section 1 of this Agreement.

     “Tranche B Notes” is defined in Section 1 of this Agreement.

     “Tranche C Notes” is defined in Section 1 of this Agreement.

     “Tranche D Notes” is defined in Section 1 of this Agreement.

     “Unrestricted Subsidiary” means any Subsidiary so designated by the Company in accordance with
the terms and provisions of this Agreement.

     “USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of
2001, as amended from time to time, and the rules and regulations promulgated thereunder from time
to time in effect.

     “Wholly-Owned Restricted Subsidiary” means, at any time, any Restricted Subsidiary one hundred
percent of all of the equity interests (except directors’ qualifying shares) and voting interests
of which are owned by any one or more of the Company and the Company’s other Wholly-Owned
Restricted Subsidiaries at such time.

B-9

 

Schedules 4.9, 5.4, 5.5, 5.11, 5.15, and 10.3 to Note Purchase Agreement

Intentionally Omitted

 

 

[Form of Tranche A Note]

Eagle Materials Inc.

6.08% Series 2007A Senior Note, Tranche A, due October 2, 2014

			
	 	 	 
	No. [                    ]
	 	[Date]
	$[                    ]
	 	PPN: 26969P B*8

     For Value Received, the undersigned, Eagle Materials Inc. (herein
called the “Company”), a corporation organized and existing under the laws of the State of
Delaware, hereby promises to pay to [                                        ] or registered assigns, the principal
sum of [                    ] Dollars (or so much thereof as shall not have been prepaid) on
October 2, 2014 with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance hereof at the rate of 6.08% per annum from the date hereof, payable
semi-annually, on the 2nd day of April and October in each year and at maturity, commencing on
April 2, 2008, until the principal hereof shall have become due and payable, and (b) to the extent
permitted by law, at a rate per annum from time to time equal to 8.08%, on any overdue payment of
interest and, during the continuance of an Event of Default, on the unpaid balance hereof and on
any overdue payment of any Make-Whole Amount, payable semiannually as aforesaid (or, at the option
of the registered holder hereof, on demand).

     Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at the principal office of Bank of
America, N.A. in New York, New York or at such other place as the Company shall have designated by
written notice to the holder of this Note as provided in the Note Purchase Agreement referred to
below.

     This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to
the Note Purchase Agreement, dated as of October 2, 2007 (as from time to time amended,
supplemented or modified, the “Note Purchase Agreement”), between the Company and the respective
Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in
Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in
Sections 6.2 and 6.3 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms
used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase
Agreement.

     This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of
transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of transfer, the Company may treat
the person in whose name this Note is registered as the owner hereof for the purpose of receiving
payment and for all other purposes, and the Company will not be affected by any notice to the
contrary.

Exhibit 1(a)

(to Note Purchase Agreement)

 

 

     The Company will make required prepayments of principal on the date and in the amounts
specified in the Note Agreement. This Note is subject to optional prepayment, in whole or from
time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but
not otherwise.

     Pursuant to the Subsidiary Guaranty Agreement dated as of October 2, 2007 (as amended,
restated or otherwise modified from time to time, the “Subsidiary Guaranty”), certain Subsidiaries
of the Company have absolutely and unconditionally guaranteed payment in full of the principal of,
Make-Whole Amount, if any, and interest on this Note and the performance by the Company of its
obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary
Guaranty.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing,
the principal of this Note may be declared or otherwise become due and payable in the manner, at
the price (including any applicable Make-Whole Amount) and with the effect provided in the Note
Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the issuer and
holder hereof shall be governed by, the law of the State of New York excluding choice-of-law
principles of the law of such State that would require the application of the laws of a
jurisdiction other than such State.

	 	 	 	 	 	 	 
	 	 	Eagle Materials Inc.
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

 E-1(A)-2 

 

 

[Form of Tranche B Note]

Eagle Materials Inc.

6.27% Series 2007A Senior Note, Tranche B, due October 2, 2016

			
	 	 	 
	No. [                    ]
	 	[Date]
	$[                    ]
	 	PPN: 26969P B@6

     For Value Received, the undersigned, Eagle Materials Inc. (herein called the
“Company”), a corporation organized and existing under the laws of the State of Delaware, hereby
promises to pay to [                                        ] or registered assigns, the principal sum of
[                    ] Dollars (or so much thereof as shall not have been prepaid) on
September ___, 2016 with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance hereof at the rate of 6.27% per annum from the date hereof, payable
semi-annually, on the 2nd day of April and October in each year and at maturity, commencing on
April 2, 2008, until the principal hereof shall have become due and payable, and (b) to the extent
permitted by law, at a rate per annum from time to time equal to 8.27%, on any overdue payment of
interest and, during the continuance of an Event of Default, on the unpaid balance hereof and on
any overdue payment of any Make-Whole Amount, payable semiannually as aforesaid (or, at the option
of the registered holder hereof, on demand).

     Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at the principal office of Bank of
America, N.A. in New York, New York or at such other place as the Company shall have designated by
written notice to the holder of this Note as provided in the Note Purchase Agreement referred to
below.

     This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to
the Note Purchase Agreement, dated as of October 2, 2007 (as from time to time amended,
supplemented or modified, the “Note Purchase Agreement”), between the Company and the respective
Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in
Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in
Sections 6.2 and 6.3 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms
used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase
Agreement.

     This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of
transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of transfer, the Company may treat
the person in whose name this Note is registered as the owner hereof for the purpose of receiving
payment and for all other purposes, and the Company will not be affected by any notice to the
contrary.

Exhibit 1(b)

(to Note Purchase Agreement)

 

 

     The Company will make required prepayments of principal on the date and in the amounts
specified in the Note Agreement. This Note is subject to optional prepayment, in whole or from
time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but
not otherwise.

     Pursuant to the Subsidiary Guaranty Agreement dated as of October 2, 2007 (as amended,
restated or otherwise modified from time to time, the “Subsidiary Guaranty”), certain Subsidiaries
of the Company have absolutely and unconditionally guaranteed payment in full of the principal of,
Make-Whole Amount, if any, and interest on this Note and the performance by the Company of its
obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary
Guaranty.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing,
the principal of this Note may be declared or otherwise become due and payable in the manner, at
the price (including any applicable Make-Whole Amount) and with the effect provided in the Note
Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the issuer and
holder hereof shall be governed by, the law of the State of New York excluding choice-of-law
principles of the law of such State that would require the application of the laws of a
jurisdiction other than such State.

	 	 	 	 	 	 	 
	 	 	Eagle Materials Inc.
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

 E-1(b)-2

 

 

[Form of Tranche C Note]

Eagle Materials Inc.

6.36% Series 2007A Senior Note, Tranche C, due October 2, 2017

			
	 	 	 
	No. [                    ]
	 	[Date]
	$[                                        ]
	 	PPN: 26969P B#4

     For Value Received, the undersigned, Eagle Materials Inc. (herein called the
“Company”), a corporation organized and existing under the laws of the State of Delaware, hereby
promises to pay to [                    ] or registered assigns, the principal sum of
[                    ] Dollars (or so much thereof as shall not have been prepaid) on October 2,
2017 with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance hereof at the rate of 6.36% per annum from the date hereof, payable semi-annually,
on the 2nd day of April and October in each year and at maturity, commencing on April 2, 2008,
until the principal hereof shall have become due and payable, and (b) to the extent permitted by
law, at a rate per annum from time to time equal to 8.36%, on any overdue payment of interest and,
during the continuance of an Event of Default, on the unpaid balance hereof and on any overdue
payment of any Make-Whole Amount, payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand).

     Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at the principal office of Bank of
America, N.A. in New York, New York or at such other place as the Company shall have designated by
written notice to the holder of this Note as provided in the Note Purchase Agreement referred to
below.

     This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to
the Note Purchase Agreement, dated as of October 2, 2007 (as from time to time amended,
supplemented or modified, the “Note Purchase Agreement”), between the Company and the respective
Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in
Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in
Sections 6.2 and 6.3 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms
used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase
Agreement.

     This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of
transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of transfer, the Company may treat
the person in whose name this Note is registered as the owner hereof for the

Exhibit 1(c)

(to Note Purchase Agreement)

 

 

purpose of receiving payment and for all other purposes, and the Company will not be affected
by any notice to the contrary.

     The Company will make required prepayments of principal on the date and in the amounts
specified in the Note Agreement. This Note is subject to optional prepayment, in whole or from
time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but
not otherwise.

     Pursuant to the Subsidiary Guaranty Agreement dated as of October 2, 2007 (as amended,
restated or otherwise modified from time to time, the “Subsidiary Guaranty”), certain Subsidiaries
of the Company have absolutely and unconditionally guaranteed payment in full of the principal of,
Make-Whole Amount, if any, and interest on this Note and the performance by the Company of its
obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary
Guaranty.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing,
the principal of this Note may be declared or otherwise become due and payable in the manner, at
the price (including any applicable Make-Whole Amount) and with the effect provided in the Note
Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the issuer and
holder hereof shall be governed by, the law of the State of New York excluding choice-of-law
principles of the law of such State that would require the application of the laws of a
jurisdiction other than such State.

	 	 	 	 	 	 	 
	 	 	Eagle Materials Inc.
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

 E-1(c)-2

 

 

[Form of Tranche D Note]

Eagle Materials Inc.

6.48% Series 2007A Senior Note, Tranche D, due October 2, 2019

			
	 	 	 
	No. [                    ]
	 	[Date]
	$[                                        ]
	 	PPN: 26969P C*7

     For Value Received, the undersigned, Eagle Materials Inc. (herein called the
“Company”), a corporation organized and existing under the laws of the State of Delaware, hereby
promises to pay to [                                        ] or registered assigns, the principal sum of
[                    ] Dollars (or so much thereof as shall not have been prepaid) on October 2,
2019 with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance hereof at the rate of 6.48% per annum from the date hereof, payable semi-annually,
on the 2nd day of April and October in each year and at maturity, commencing on April 2, 2008,
until the principal hereof shall have become due and payable, and (b) to the extent permitted by
law, at a rate per annum from time to time equal to 8.48%, on any overdue payment of interest and,
during the continuance of an Event of Default, on the unpaid balance hereof and on any overdue
payment of any Make-Whole Amount, payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand).

     Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at the principal office of Bank of
America, N.A. in New York, New York or at such other place as the Company shall have designated by
written notice to the holder of this Note as provided in the Note Purchase Agreement referred to
below.

     This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to
the Note Purchase Agreement, dated as of October 2, 2007 (as from time to time amended,
supplemented or modified, the “Note Purchase Agreement”), between the Company and the respective
Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in
Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in
Sections 6.2 and 6.3 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms
used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase
Agreement.

     This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of
transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of transfer, the

Exhibit 1(d)

(to Note Purchase Agreement)

 

 

Company may treat the person in whose name this Note is registered as the owner hereof for the
purpose of receiving payment and for all other purposes, and the Company will not be affected by
any notice to the contrary.

     The Company will make required prepayments of principal on the date and in the amounts
specified in the Note Agreement. This Note is subject to optional prepayment, in whole or from
time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but
not otherwise.

     Pursuant to the Subsidiary Guaranty Agreement dated as of October 2, 2007 (as amended,
restated or otherwise modified from time to time, the “Subsidiary Guaranty”), certain Subsidiaries
of the Company have absolutely and unconditionally guaranteed payment in full of the principal of,
Make-Whole Amount, if any, and interest on this Note and the performance by the Company of its
obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary
Guaranty.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing,
the principal of this Note may be declared or otherwise become due and payable in the manner, at
the price (including any applicable Make-Whole Amount) and with the effect provided in the Note
Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the issuer and
holder hereof shall be governed by, the law of the State of New York excluding choice-of-law
principles of the law of such State that would require the application of the laws of a
jurisdiction other than such State.

	 	 	 	 	 	 	 
	 	 	Eagle Materials Inc.
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

E-1(d)-2

 

 

Form of Subsidiary Guaranty

Subsidiary Guaranty Agreement

Dated as of October 2, 2007

from

The Subsidiary Guarantors Named Herein

for the benefit of

The Holders of the Notes

Re:

$20,000,000 6.08% Series 2007A Senior Notes, Tranche A

due October 2, 2014

$50,000,000 6.27% Series 2007A Senior Notes, Tranche B

due October 2, 2016

$70,000,000 6.36% Series 2007A Senior Notes, Tranche C

due October 2, 2017

$60,000,000 6.48% Series 2007A Senior Notes, Tranche D

due October 2, 2019

OF

Eagle Materials Inc.

Exhibit 2.4(b)

(to Note Purchase Agreement)

 

 

Table of Contents

	 	 	 	 	 
	Section	 	Heading	 	Page
	Section 1.
	 	Guaranty	 	5
	 
	 	 	 	 
	Section 2.
	 	Representations and Warranties	 	6
	 
	 	 	 	 
	Section 3.
	 	Subsidiary Guarantor’s Obligations Unconditional	 	8
	 
	 	 	 	 
	Section 4.
	 	Full Recourse Obligations; Pari Passu Ranking	 	14
	 
	 	 	 	 
	Section 5.
	 	Waiver	 	14
	 
	 	 	 	 
	Section 6.
	 	Waiver of Subrogation	 	15
	 
	 	 	 	 
	Section 7.
	 	Subordination	 	15
	 
	 	 	 	 
	Section 8.
	 	Effect of Bankruptcy Proceedings, Etc.	 	16
	 
	 	 	 	 
	Section 9.
	 	Term of Guaranty	 	16
	 
	 	 	 	 
	Section 10.
	 	Contribution	 	17
	 
	 	 	 	 
	Section 11.
	 	Limitation of Liability	 	17
	 
	 	 	 	 
	Section 12.
	 	Negative Pledge	 	18
	 
	 	 	 	 
	Section 13.
	 	Supplemental Agreement	 	18
	 
	 	 	 	 
	Section 14.
	 	Definitions and Terms Generally	 	18
	 
	 	 	 	 
	Section 15.
	 	Notices	 	19
	 
	 	 	 	 
	Section 16.
	 	Amendments, Etc.	 	20
	 
	 	 	 	 
	Section 17.
	 	Consent to Jurisdiction; Service of Process	 	20
	 
	 	 	 	 
	Section 18.
	 	Waiver of Jury Trial	 	21
	 
	 	 	 	 
	Section 19.
	 	Survival	 	21
	 
	 	 	 	 
	Section 20.
	 	Severability	 	21
	 
	 	 	 	 
	Section 21.
	 	Successors and Assigns	 	22

E-2.4(b)-2
 

 

Table of Contents

	 	 	 	 	 
	Section	 	Heading	 	Page
	Section 22.
	 	Table of Contents; Headings	 	22
	 
	 	 	 	 
	Section 23.
	 	Counterparts	 	22
	 
	 	 	 	 
	Section 24.
	 	Governing Law	 	22
	 
	 	 	 	 
	Section 25.
	 	Release	 	22
	 
	 	 	 	 
	Section 26.
	 	Covenant Compliance	 	22

E-2.4(b)-3

 

 

     Subsidiary Guaranty Agreement, dated as of October 2, 2007 (the “Guaranty”), from
each of:

	 	(i)	 	American Gypsum Company LLC (Delaware),
	 
	 	(ii)	 	American Gypsum Marketing Company (Delaware),
	 
	 	(iii)	 	CCP Cement Company (Nevada),
	 
	 	(iv)	 	CCP Concrete/Aggregates LLC (Delaware),
	 
	 	(v)	 	CCP Gypsum Company (Nevada),
	 
	 	(vi)	 	CCP Land Company (Nevada),
	 
	 	(vii)	 	Centex Cement Corporation (Nevada),
	 
	 	(viii)	 	Hollis & Eastern Railroad Company LLC (Delaware),
	 
	 	(ix)	 	Mathews Readymix LLC (California),
	 
	 	(x)	 	M&W Drywall Supply Company (Nevada),
	 
	 	(xi)	 	Mountain Cement Company (Nevada),
	 
	 	(xii)	 	Nevada Cement Company (Nevada),
	 
	 	(xiii)	 	Republic Paperboard Company LLC (Delaware),
	 
	 	(xiv)	 	Texas Cement Company (Nevada),
	 
	 	(xv)	 	Western Aggregates LLC (Nevada),
	 
	 	(xvi)	 	Western Cement Company of California (California),
	 
	 	(xvii)	 	Centex Materials LLC (Delaware),
	 
	 	(xviii)	 	TLCC GP LLC (Delaware),
	 
	 	(xix)	 	TLCC LP LLC (Delaware), 
	 
	 	(xx)	 	AG South Carolina LLC (Delaware),
	 
	 	(xxi)	 	Illinois Cement Company LLC (Delaware), and
	 
	 	(xxii)	 	such Subsidiaries as shall become parties hereto in accordance with
Section 13 hereof (each a “Subsidiary Guarantor” and collectively the
“Subsidiary Guarantors”),

for the benefit of the holders from time to time of the Notes (as defined below) (the “Holders”).
Capitalized terms used herein are defined in Section 14 hereof or the Note Purchase Agreement
referred to below.

     Whereas, Eagle Materials Inc., a Delaware corporation (the “Company”), will authorize
the issue and sale of (i) $20,000,000 6.08% Series 2007A Senior Notes, Tranche A, due October 2,
2014 (the “Tranche A Notes”), (ii) $50,000,000 6.27% Series 2007A Senior Notes, Tranche B, due
October 2, 2016 (the “Tranche B Notes”), (iii) $70,000,000 6.36% Series 2007A Senior Notes, Tranche
C, due October 2, 2017 (the “Tranche C Notes”) and (iv) $60,000,000 6.48% Series 2007A Senior
Notes, Tranche D, due October 2, 2019 (the “Tranche D Notes” and, together with the Tranche A
Notes, the Tranche B Notes and the Tranche C Notes, the “Series 2007A Notes”), pursuant to a Note
Purchase Agreement, dated as of the date hereof (as amended, modified or supplemented from time to
time, the “Note Purchase Agreement”) among the Company and the purchasers named therein.

     Whereas, the Company is authorized to issue Additional Notes (as such term is defined
in the Note Purchase Agreement) of one or more separate series from time to time in an

E-2.4(b)-4

 

 

aggregate
principal amount not to exceed $500,000,000 pursuant to Section 2.2 of the Note Purchase Agreement.

     Whereas, the Additional Notes together with the Series 2007A Notes are collectively
referred to as the “Notes”.

     Whereas, each of the Subsidiary Guarantors is a Subsidiary of the Company.

     Whereas, the Company has agreed that certain of its Subsidiaries will guarantee its
obligations under the Notes and the Note Purchase Agreement.

     Whereas, the Subsidiary Guarantors each acknowledge that they will derive substantial
benefits from the issuance of the Notes.

     Now, Therefore, in consideration of the premises and to induce the Holders to
purchase the Notes, each of the Subsidiary Guarantors, intending to be legally bound, hereby agrees
for the benefit of the Holders, as follows:

Section 1. Guaranty. 

     Each Subsidiary Guarantor with all other Subsidiary Guarantors, hereby absolutely,
unconditionally and irrevocably guarantees, jointly and severally, as a primary obligor and not
merely as a surety, to each Holder and its successors and assigns, the full and punctual payment
and performance when due, whether at stated maturity, by acceleration or otherwise, of the
principal of and Make-Whole Amount and interest on (including, without limitation, interest,
whether or not an allowable claim, accruing after the date of filing of any petition in bankruptcy,
or the commencement of any bankruptcy, insolvency or similar proceeding relating to the Company)
the Notes and all other amounts under the Note Purchase Agreement and all other obligations,
agreements and covenants of the Company now or hereafter existing under the Note Purchase Agreement
whether for principal, Make-Whole Amount, interest (including interest accruing or becoming owing
both prior to and subsequent to the commencement of any proceeding against or with respect to the
Company under any chapter of Title 11 of the United States Code), indemnification payments,
expenses (including reasonable attorneys’ fees and expenses) or otherwise, and all reasonable costs
and expenses, if any, incurred by any Holder in connection with enforcing any rights under this
Guaranty (all such obligations being the “Guaranteed Obligations”), and agrees to pay any and all
reasonable expenses incurred by each Holder in enforcing this Guaranty; provided that,
notwithstanding anything contained herein or in the Note Purchase Agreement to the contrary, the
maximum liability of each Subsidiary Guarantor hereunder and under the Note Purchase Agreement
shall in no event exceed such Guarantor’s Maximum Guaranteed Amount, and provided further, each
Subsidiary Guarantor shall be unconditionally required to pay all amounts demanded of it hereunder
prior to any determination of such Maximum Guaranteed Amount and the recipient of such payment, if
so required by a final non-appealable order of a court of competent jurisdiction, shall then be
liable for the refund of any excess amounts. If any such rebate or refund is ever required, all
other
Subsidiary Guarantors (and the Company) shall be fully liable for the repayment thereof to the
maximum extent allowed by applicable law. This Guaranty is an absolute, unconditional,

E-2.4(b)-5

 

 

present and
continuing guaranty of payment and not of collectibility and is in no way conditioned upon any
attempt to collect from the Company or any other action, occurrence or circumstance whatsoever.
Each Subsidiary Guarantor agrees that the Guaranteed Obligations may at any time and from to time
exceed the Maximum Guaranteed Amount of such Subsidiary Guarantor without impairing this Guaranty
or affecting the rights and remedies of the Holders hereunder.

     Notwithstanding any stay, injunction or other prohibition preventing such action against the
Company, if for any reason whatsoever the Company shall fail or be unable duly, punctually and
fully to perform and (in the case of the payment of Guaranteed Obligations) pay such amounts as and
when the same shall become due and (in the case of the payment of Guaranteed Obligations) payable
or to perform or comply with any other Guaranteed Obligation, each Subsidiary Guarantor will
forthwith (in the case of the payment of Guaranteed Obligations) pay or cause to be paid such
amounts to the Holders, in lawful money of the United States of America, at the place specified in
the Note Purchase Agreement, or perform or comply with such Guaranteed Obligations or cause such
Guaranteed Obligations to be performed or complied with, (in the case of the payment of Guaranteed
Obligations) together with interest (in the amounts and to the extent required under such Notes) on
any amount due and owing.

Section 2. Representations and Warranties. 

     Each Subsidiary Guarantor hereby represents and warrants as follows:

     (a) All representations and warranties contained in the Note Purchase Agreement that relate to
such Subsidiary Guarantor are true and correct in all respects and are incorporated by reference
with the same force and effect as though set forth herein in full.

     (b) Such Subsidiary Guarantor acknowledges that any default in the due observance or
performance by such Subsidiary Guarantor of any covenant, condition or agreement contained herein
(if, after the running of any applicable notice and opportunity to cure periods provided in the
Note Purchase Agreement, such default or event of default remains uncured) shall constitute an
Event of Default.

     (c) There are no conditions precedent to the effectiveness of this Guaranty that have not been
satisfied or expressly waived.

     (d) Such Subsidiary Guarantor has, independently and without reliance upon the Holders and
based on such documents and information as it has deemed appropriate, made its own credit analysis
and decision to enter into this Guaranty. Such Subsidiary Guarantor has investigated fully the
benefits and advantages which will be derived by it from execution of this Guaranty, and the Board
of Directors (or equivalent governing body) of such Subsidiary Guarantor has decided that a direct
and/or an indirect benefit will accrue to such Subsidiary Guarantor by reason of the execution of
this Guaranty.

     (e) (i) This Guaranty is not given with actual intent to hinder, delay or defraud any Person
to which such Subsidiary Guarantor is or will become, on or after the date hereof,

E-2.4(b)-6

 

 

indebted;
(ii) such Subsidiary Guarantor has received at least a reasonably equivalent value in exchange for
the giving of this Guaranty; (iii) such Subsidiary Guarantor is not insolvent on the date hereof
and will not become insolvent as a result of the giving of this Guaranty; (iv) such Subsidiary
Guarantor is not engaged in a business or transaction, nor is about to engage in a business or
transaction, for which any property remaining with such Subsidiary Guarantor constitutes an
unreasonably small amount of capital; and (v) such Subsidiary Guarantor does not intend to incur
debts that will be beyond such Subsidiary Guarantor’s ability to pay as such debts mature.

     (f) Each Subsidiary Guarantor is a corporation or other legal entity duly organized and
validly existing under the laws of its state of organization, and has the requisite power,
authority and legal right under the laws of its state of organization to conduct its business as
presently conducted and to execute, deliver and perform its obligations under this Guaranty.

     (g) The execution, delivery and performance of this Guaranty have been duly authorized by all
necessary action, corporate or otherwise, on the part of each Subsidiary Guarantor, and does not
require any consent or approval of, or the giving of notice to, or the taking of any other action
in respect of, any stockholder or trustee or holder of any equity, indebtedness or obligations of
such Subsidiary Guarantor. This Guaranty constitutes a legal, valid and binding obligation of each
Subsidiary Guarantor, enforceable against such Subsidiary Guarantor in accordance with its terms,
except that such enforceability is subject to any limitations arising from bankruptcy, insolvency,
liquidation, moratorium, reorganization and other similar laws of general application relating to
or affecting the rights of creditors or pledgees and to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

     (h) The execution, delivery and performance of this Guaranty does not and will not conflict
with or result in any violation of or default under any provision of the Articles or Certificate of
Incorporation or Formation or by-laws or partnership agreement or operating agreement or other
organizational documents, as the case may be, of any Subsidiary Guarantor, or any indenture,
mortgage, deed of trust, instrument, law, rule or regulation binding on any Subsidiary Guarantor or
any Subsidiary Guarantor’s assets or property or to which a Subsidiary Guarantor is a party.

     (i) The execution, delivery and performance of this Guaranty does not and will not result in
violation of any judgment or order applicable to any Subsidiary Guarantor or result in the creation
or imposition of any Lien on any of the properties or revenues of any Subsidiary Guarantor pursuant
to any requirement of law or any indenture, mortgage, deed of trust or other instrument to which
such Subsidiary Guarantor is a party or pursuant to which such Subsidiary Guarantor or any of its
assets or property is bound.

     (j) The execution, delivery and performance of this Guaranty do not and will not conflict with
and do not and will not require any consent, approval or authorization of, or
registration or filing with, any governmental authority or agency of the state of organization
of any Subsidiary Guarantor or of the United States or any State.

E-2.4(b)-7

 

 

     (k) There are no pending or, to the knowledge of any Subsidiary Guarantor, threatened actions
or proceedings against or affecting such Subsidiary Guarantor or any of its properties by or before
any court or administrative agency or arbiter that would adversely affect the ability of such
Subsidiary Guarantor to perform its obligations hereunder or call into question the validity or
enforceability of this Guaranty.

     (l) Each Subsidiary Guarantor’s obligations under this Guaranty are at least pari passu in
right of payment with all other senior unsecured Debt (actual or contingent) of such Subsidiary
Guarantor, including, without limitation, all senior unsecured Debt of such Subsidiary Guarantor
described in Schedule 5.15 of the Note Purchase Agreement.

     (m) No Subsidiary Guarantor is in breach of or default under or with respect to any
instrument, document or agreement binding upon such Subsidiary Guarantor which breach or default
would reasonably be expected to have a Material Adverse Effect. Each Subsidiary Guarantor is in
compliance with all applicable requirements of law except such non-compliance as would not
reasonably be expected to have a Material Adverse Effect.

     (n) The execution, delivery and performance by each Subsidiary Guarantor of this Guaranty will
not render such Subsidiary Guarantor insolvent, nor is it being made in contemplation of such
Subsidiary Guarantor’s insolvency, and the Subsidiary Guarantor does not have an unreasonably small
capital.

Section 3. Subsidiary Guarantor’s Obligations Unconditional.

     (a) This Guaranty shall constitute a guarantee of payment, performance and compliance and not
of collection, and each Subsidiary Guarantor specifically agrees that it shall not be necessary,
and that such Subsidiary Guarantor shall not be entitled to require, before or as a condition of
enforcing the liability of such Subsidiary Guarantor under this Guaranty or requiring payment or
performance of the Guaranteed Obligations by any Subsidiary Guarantor hereunder, or at any time
thereafter, that any Holder: (a) file suit or proceed to obtain or assert a claim for personal
judgment against the Company or any other Person that may be liable for or with respect to any
Guaranteed Obligation; (b) make any other effort to obtain payment or performance of any Guaranteed
Obligation from the Company or any other Person that may be liable for or with respect to such
Guaranteed Obligation, except for the making of the demands, when appropriate, described in
Section 1; (c) foreclose against, or seek to realize upon security now or hereafter existing for
such Guaranteed Obligations; (d) except to the extent set forth in Section 1, exercise or assert
any other right or remedy to which such Holder is or may be entitled in connection with any
Guaranteed Obligation or any security or other guaranty therefor; or (e) assert or file any claim
against the assets or property of the Company or any other Person liable for any Guaranteed
Obligation. Each Subsidiary Guarantor agrees that this Guaranty shall be continuing, and that the
Guaranteed Obligations will be paid and performed in accordance with their terms and the terms of
this Guaranty, and are the primary, absolute and unconditional obligations of such Subsidiary
Guarantor, irrespective of the value, genuineness, validity,
legality, regularity or enforceability or lack thereof of any part of the Guaranteed
Obligations or any agreement or instrument relating to the Guaranteed Obligations or this Guaranty,
or the existence of any indemnities with respect to the existence of any other guarantee of or
security

E-2.4(b)-8

 

 

for any of the Guaranteed Obligations, or any substitution, release or exchange of any
other guarantee of or security for any of the Guaranteed Obligations, and, to the fullest extent
permitted by applicable law, irrespective of any other circumstance whatsoever that might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent
of this Section 3 that the obligations of each Subsidiary Guarantor hereunder shall be irrevocable,
primary, absolute and unconditional under any and all circumstances.

     (b) Each Subsidiary Guarantor hereby expressly waives notice of acceptance of and reliance
upon this Guaranty, diligence, presentment, demand of payment or performance, protest and all other
notices (except as otherwise provided for in Section 1) whatsoever, any requirement that the
Holders exhaust any right, power or remedy or proceed against the Company or against any other
Person under any other guarantee of, or security for, or any other agreement, regarding any of the
Guaranteed Obligations. Each Subsidiary Guarantor further agrees that, subject solely to the
requirement of making demands under Section 1, the occurrence of any event or other circumstance
that might otherwise vary the risk of the Company or such Subsidiary Guarantor or constitute a
defense (legal or equitable) available to, or a discharge of, or a counterclaim or right of set-off
by, the Company or such Subsidiary Guarantor (other than the full and indefeasible due payment and
performance of the Guaranteed Obligations), shall not affect the liability of any Subsidiary
Guarantor hereunder.

     (c) The obligations of each Subsidiary Guarantor under this Guaranty are not subject to any
counterclaim, set-off, deduction, diminution, abatement, recoupment, suspension, deferment or
defense based upon any claim such Subsidiary Guarantor or any other Person may have against the
Company, any Holder or any other Person, and shall remain in full force and effect without regard
to, and shall not be released, discharged or in any way affected by, any circumstances or condition
whatsoever (whether or not such Subsidiary Guarantor or the Company shall have any knowledge or
notice thereof), including:

     (i) any renewal, extension, modification, increase, decrease, alteration or
rearrangement of all or any part of the Guaranteed Obligations or any instrument executed in
connection therewith, or any contract or understanding with the Company, the Holders, or any
of them, or any other Person, pertaining to the Guaranteed Obligations;

     (ii) any adjustment, indulgence, forbearance or compromise that might be granted or
given by any Holder to the Company or any other Person liable on the Guaranteed Obligations,
or the failure of any Holder to assert any claim or demand or to exercise any right or
remedy against the Company or any other Person under the provisions of the Note Purchase
Agreement, the Notes or otherwise; or any rescission, waiver, amendment or modification of,
or any release from any of the terms or provisions of, the Note Purchase Agreement, the
Notes, any guarantee or any other agreement;

     (iii) the insolvency, bankruptcy arrangement, adjustment, composition, liquidation,
disability, dissolution or lack of power of the Company or any other Person at
any time liable for the payment of all or part of the Guaranteed Obligations; or any
dissolution of the Company or any other such Person, or any change, restructuring or

E-2.4(b)-9

 

 

termination of the organizational structure or existence of the Company or any other such
Person, or any sale, lease or transfer of any or all of the assets or property of the
Company or any other such Person, or any change in the shareholders, partners, or members of
the Company or any other such Person; or any default, failure or delay, willful or
otherwise, in the performance of the Guaranteed Obligations;

     (iv) the invalidity, illegality or unenforceability of all or any part of the
Guaranteed Obligations, or any document or agreement executed in connection with the
Guaranteed Obligations, for any reason whatsoever, including the fact that the Guaranteed
Obligations, or any part thereof, exceed the amount permitted by law, the act of creating
the Guaranteed Obligations or any part is ultra vires, the officers or representatives
executing the documents or otherwise creating the Guaranteed Obligations acted in excess of
their authority, the Guaranteed Obligations violate applicable usury laws, the Company or
any other Person has valid defenses, claims or offsets (whether at law, in equity or by
agreement) which render the Guaranteed Obligations wholly or partially uncollectible from
the Company or any other Person, the creation, performance or repayment of the Guaranteed
Obligations (or the execution, delivery and performance of any document or instrument
representing part of the Guaranteed Obligations or executed in connection with the
Guaranteed Obligations or given to secure the repayment of the Guaranteed Obligations) is
illegal, uncollectible, legally impossible or unenforceable, or the documents or instruments
pertaining to the Guaranteed Obligations have been forged or otherwise are irregular or not
genuine or authentic;

     (v) any full or partial release of the liability of the Company on the Guaranteed
Obligations or any part thereof, of any co-guarantors, or of any other Person now or
hereafter liable, whether directly or indirectly, jointly, severally, or jointly and
severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations or
any part thereof, it being recognized, acknowledged and agreed by each Subsidiary Guarantor
that such Subsidiary Guarantor may be required to pay the Guaranteed Obligations in full
without assistance or support of any other Person, and such Subsidiary Guarantor has not
been induced to enter into this Guaranty on the basis of a contemplation, belief,
understanding or agreement that any parties other than the Company will be liable to perform
the Guaranteed Obligations, or that the Holders will look to other parties to perform the
Guaranteed Obligations;

     (vi) the taking or accepting of any other security, collateral or guaranty, or other
assurance of payment, for all or any part of the Guaranteed Obligations;

     (vii) any release, surrender, exchange, subordination, deterioration, waste, loss or
impairment (including negligent, unreasonable or unjustifiable impairment) of any
collateral, property or security, at any time existing in connection with, or assuring or
securing payment of, all or any part of the Guaranteed Obligations;

E-2.4(b)-10

 

 

     (viii) the failure of any Holder or any other Person to exercise diligence or
reasonable care in the preservation, protection, enforcement, sale or other handling or
treatment of all or any part of such collateral, property or security;

     (ix) the fact that any collateral, security, security interest or Lien contemplated or
intended to be given, created or granted as security for the repayment of the Guaranteed
Obligations shall not be properly perfected or created, or shall prove to be unenforceable
or subordinate to any other security interest or Lien, it being recognized and agreed by
each Subsidiary Guarantor that such Subsidiary Guarantor is not entering into this Guaranty
in reliance on, or in contemplation of the benefits of, the validity, enforceability,
collectibility or value of any of the collateral;

     (x) any payment by the Company to any Holder being held to constitute a preference
under any Fraudulent Conveyance Law, or for any reason any Holder being required to refund
such payment or pay such amount to the Company or someone else;

     (xi) any other action taken or omitted to be taken with respect to the Guaranteed
Obligations, or the security and collateral therefor, whether or not such action or omission
prejudices such Subsidiary Guarantor or increases the likelihood that such Subsidiary
Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof,
it being the unambiguous and unequivocal intention of such Subsidiary Guarantor that it
shall be obligated to pay the Guaranteed Obligations when due, notwithstanding any
occurrence, circumstance, event, action or omission whatsoever, whether or not contemplated,
and whether or not otherwise or particularly described herein, except for the full and final
indefeasible payment and satisfaction of the Guaranteed Obligations in cash;

     (xii) the fact that all or any of the Guaranteed Obligations cease to exist by
operation of law, including by way of a discharge, limitation or tolling thereof under
applicable bankruptcy laws;

     (xiii) any other circumstance (including any statute of limitations) that might in any
manner or to any extent otherwise constitute a defense available to, vary the risk of, or
operate as a discharge of, the Company or any Person as a matter of law or equity;

     (xiv) any change in the ownership of any shares of capital stock (or other equity
interests) of the Company, or any change in the relationship between the Company and such
Subsidiary Guarantor or any termination of any such relationship;

     (xv) any default, failure or delay, willful or otherwise, in the performance by the
Company, any Subsidiary Guarantor or any other Person of any obligations of any kind or
character whatsoever under the Note Purchase Agreement or any other agreement;

     (xvi) any merger or consolidation of the Company or any Subsidiary Guarantor or any
other Person into or with any other Person or any sale, lease, transfer or other

E-2.4(b)-11

 

 

disposition
of any of the assets or property of the Company, any Subsidiary Guarantor or
any other Person to any other Person, or any change in the ownership of any shares or
partnership interests or other equity interests of the Company, any Subsidiary Guarantor or
any other Person;

     (xvii) in respect of the Company, any Subsidiary Guarantor or any other Person, any
change of circumstances, whether or not foreseen or foreseeable, whether or not imputable to
the Company, any Subsidiary Guarantor or any other Person, or other impossibility of
performance through fire, explosion, accident, labor disturbance, floods, droughts,
embargoes, wars (whether or not declared), civil commotion, acts of God or the public enemy,
delays or failure of suppliers or carriers, inability to obtain materials, action of any
Federal or state regulatory body or agency, change of law or any other causes affecting
performance, or any other force majeure, whether or not beyond the control of the Company,
any Subsidiary Guarantor or any other Person and whether or not of the kind hereinbefore
specified; or

     (xviii) any other occurrence, circumstance, or event whatsoever, whether similar or
dissimilar to the foregoing, whether foreseen or unforeseen, and any other circumstance
which might otherwise constitute a legal or equitable defense or discharge of the
liabilities of a guarantor or surety or which might otherwise limit recourse against such
Subsidiary Guarantor;

provided that the specific enumeration of the above-mentioned acts, failures or omissions shall not
be deemed to exclude any other acts, failures or omissions, though not specifically mentioned
above, it being the purpose and intent of this Guaranty and the parties hereto that the obligations
of each Subsidiary Guarantor shall be absolute and unconditional and shall not be discharged,
impaired or varied except by the payment and performance of all obligations of the Company under
the Note Purchase Agreement and the Notes in accordance with their respective terms as each may be
amended or modified from time to time. Without limiting the foregoing, it is understood that
repeated and successive demands may be made and recoveries may be had hereunder as and when, from
time to time, the Company or any Subsidiary Guarantor shall default under or in respect of the
terms of the Note Purchase Agreement and that notwithstanding recovery hereunder for or in respect
of any given default or defaults by the Company or any Subsidiary Guarantor under the Note Purchase
Agreement, this Guaranty shall remain in full force and effect and shall apply to each and every
subsequent default. All waivers herein contained shall be without prejudice to the Holders at
their respective options to proceed against the Company, any Subsidiary Guarantor or other Person,
whether by separate action or by joinder.

     (d) Each Subsidiary Guarantor hereby consents and agrees that any Holder or Holders from time
to time, with or without any further notice to or assent from any other Subsidiary Guarantor may,
without in any manner affecting the liability of any Subsidiary Guarantor under this Guaranty, and
upon such terms and conditions as any such Holder or Holders may deem advisable:

E-2.4(b)-12

 

 

     (i) extend in whole or in part (by renewal or otherwise), modify, change, compromise,
release or extend the duration of the time for the performance or payment of
any debt, liability or obligation of the Company or any Subsidiary Guarantor or of any other
Person secondarily or otherwise liable for any debt, liability or obligations of the Company
on the Note Purchase Agreement or the Notes, or waive any Default or Event of Default with
respect thereto, or waive, modify, amend or change any provision of any other agreement or
waive this Guaranty; or

     (ii) sell, release, surrender, modify, impair, exchange or substitute any and all
property, of any nature and from whomsoever received, held by, or for the benefit of, any
such Holder as direct or indirect security for the payment or performance of any debt,
liability or obligation of the Company, any Subsidiary Guarantor or of any other Person
secondarily or otherwise liable for any debt, liability or obligation of the Company on the
Note Purchase Agreement or the Notes; or

     (iii) settle, adjust or compromise any claim of the Company or any Subsidiary Guarantor
against any other Person secondarily or otherwise liable for any debt, liability or
obligation of the Company on the Note Purchase Agreement or the Notes; or

     (iv) purchase Additional Notes form time to time from the Company pursuant to the terms
and provisions of the Note Purchase Agreement.

Each Subsidiary Guarantor hereby ratifies and confirms any such extension, renewal, change, sale,
release, waiver, surrender, exchange, modification, amendment, impairment, substitution,
settlement, adjustment, compromise or purchase of Additional Notes and that the same shall be
binding upon it, and hereby waives, to the fullest extent permitted by law, any and all defenses,
counterclaims or offsets which it might or could have by reason thereof, it being understood that
such Subsidiary Guarantor shall at all times be bound by this Guaranty and remain liable hereunder.

     (e) All rights of any Holder may be transferred or assigned at any time in accordance with the
Note Purchase Agreement and shall be considered to be transferred or assigned at any time or from
time to time upon the transfer of such Note in accordance with the Note Purchase Agreement without
the consent of or notice to the Subsidiary Guarantors under this Guaranty.

     (f) No Holder shall be under any obligation: (i) to marshal any assets in favor of the
Subsidiary Guarantors or in payment of any or all of the liabilities of the Company or any
Subsidiary Guarantor under or in respect of the Notes or the obligations of the Company and the
Subsidiary Guarantors under the Note Purchase Agreement or (ii) to pursue any other remedy that the
Subsidiary Guarantors may or may not be able to pursue themselves and that may lighten the
Subsidiary Guarantors’ burden, any right to which each Subsidiary Guarantor hereby expressly
waives.

E-2.4(b)-13

 

 

Section 4. Full Recourse Obligations; Pari Passu Ranking.

     Subject to the Maximum Guaranteed Amount specified above, the obligations of each Subsidiary
Guarantor set forth herein constitute the full recourse obligations of such Subsidiary Guarantor
enforceable against it to the full extent of all its assets and properties.

     The respective obligations under this Guaranty of the Subsidiary Guarantors in respect of the
Notes, and all other obligations of the Subsidiary Guarantors hereunder, are and at all times shall
remain direct and unsecured obligations of the Subsidiary Guarantors ranking pari passu as against
the assets of the Subsidiary Guarantors with all obligations of the Subsidiary Guarantors hereunder
in respect of all other Notes from time to time issued and outstanding under the Note Purchase
Agreement without any preference among themselves and pari passu with the Subsidiary Guarantors’
Guaranty in respect of the Debt outstanding under the Bank Credit Agreement and all other present
and future unsecured Debt (actual or contingent) of the Subsidiary Guarantors which is not
expressed to be subordinate or junior in rank to any other unsecured Debt of the Subsidiary
Guarantors.

Section 5. Waiver.

     Each Subsidiary Guarantor unconditionally waives, to the extent permitted by applicable law:

     (a) notice of any of the matters referred to in Section 3;

     (b) notice to such Subsidiary Guarantor of the incurrence of any of the Guaranteed
Obligations, notice to such Subsidiary Guarantor of any breach or default by the Company or
such Subsidiary Guarantor with respect to any of the Guaranteed Obligations or any other
notice that may be required, by statute, rule of law or otherwise, to preserve any rights of
any Holder against such Subsidiary Guarantor;

     (c) presentment to the Company or such Subsidiary Guarantor or of payment from the
Company or such Subsidiary Guarantor with respect to any Note or other Guaranteed Obligation
or protest for nonpayment or dishonor;

     (d) any right to the enforcement, assertion, exercise or exhaustion by any Holder of
any right, power, privilege or remedy conferred in any Note, the Note Purchase Agreement or
otherwise;

     (e) any requirement of diligence on the part of any Holder;

     (f) any requirement to mitigate the damages resulting from any default under the Notes
or the Note Purchase Agreement;

     (g) any notice of any sale, transfer or other disposition of any right, title to or
interest in any Note or other Guaranteed Obligation by any Holder, assignee or participant
thereof, or in the Note Purchase Agreement;

E-2.4(b)-14

 

 

     (h) any release of any Subsidiary Guarantor from its obligations hereunder resulting
from any loss by it of its rights of subrogation hereunder; and

     (i) any other circumstance whatsoever which might otherwise constitute a legal or
equitable discharge, release or defense of a guarantor or surety or which might otherwise
limit recourse against such Subsidiary Guarantor.

Section 6. Waiver of Subrogation.

     Notwithstanding any payment or payments made by any Subsidiary Guarantor hereunder, or any
application by any Holder of any security or of any credits or claims, no Subsidiary Guarantor will
assert or exercise any rights of any Holder or of such Subsidiary Guarantor against the Company to
recover the amount of any payment made by such Subsidiary Guarantor to any Holder hereunder by way
of any claim, remedy or subrogation, reimbursement, exoneration, contribution, indemnity,
participation or otherwise arising by contract, by statute, under common law or otherwise, and such
Subsidiary Guarantor shall not have any right of recourse to or any claim against assets or
property of the Company, in each case unless and until the Guaranteed Obligations have been
indefeasibly paid in full. Until such time (but not thereafter), each Subsidiary Guarantor hereby
expressly waives any right to exercise any claim, right or remedy which such Subsidiary Guarantor
may now have or hereafter acquire against the Company or any other Subsidiary Guarantor that arises
under the Notes, the Note Purchase Agreement or from the performance by any Subsidiary Guarantor of
the guaranty hereunder including any claim, remedy or right of subrogation, reimbursement,
exoneration, contribution, indemnification or participation in any claim, right or remedy of any
Holder against the Company or any Subsidiary Guarantor, or any security that any Holder now has or
hereafter acquires, whether or not such claim, right or remedy arises in equity, under contract, by
statute, under common law or otherwise. If any amount shall be paid to a Subsidiary Guarantor by
the Company or another Subsidiary Guarantor after payment in full of the Guaranteed Obligations,
and all or any portion of the Guaranteed Obligations shall thereafter be reinstated in whole or in
part and any Holder is required to repay any sums received by any of them in payment of the
Guaranteed Obligations, this Guaranty shall be automatically reinstated and such amount shall be
held in trust for the benefit of the Holders and shall forthwith be paid to the Holders to be
credited and applied to the Guaranteed Obligations, whether matured or unmatured. The provisions
of this paragraph shall survive the termination of this Guaranty, and any satisfaction and
discharge of the Company by virtue of any payment, court order or any Federal or state law.

Section 7. Subordination.

     If any Subsidiary Guarantor is or becomes the holder of any indebtedness payable by the
Company or another Subsidiary Guarantor, each Subsidiary Guarantor hereby subordinates all
indebtedness owing to it from the Company or such other Subsidiary Guarantor to all indebtedness of
the Company to the Holders, and agrees that, during the continuance of any Event of Default, it
shall not accept any payment on the same until payment in full of the Guaranteed Obligations and
shall in no circumstance whatsoever attempt to set-off or reduce any obligations hereunder because
of such indebtedness. If any amount shall nevertheless be paid in violation of the foregoing to a
Subsidiary Guarantor by the Company or another Subsidiary

E-2.4(b)-15

 

 

Guarantor prior to payment in full of the
Guaranteed Obligations, such amount shall be held in
trust for the benefit of the Holders and shall forthwith be paid to the Holders to be credited
and applied to the Guaranteed Obligations, whether matured or unmatured.

Section 8. Effect of Bankruptcy Proceedings, Etc.

     (a) If after receipt of any payment of, or proceeds of any security applied (or intended to be
applied) to the payment of all or any part of, the Guaranteed Obligations, any Holder is for any
reason compelled to surrender or voluntarily surrenders (under circumstances in which it believes
it could reasonably be expected to be so compelled if it did not voluntarily surrender), such
payment or proceeds to any Person (i) because such payment or application of proceeds is or may be
avoided, invalidated, declared fraudulent, set aside, determined to be void or voidable as a
preference, fraudulent conveyance, fraudulent transfer, impermissible set-off or a diversion of
trust funds or (ii) for any other similar reason, including, without limitation, (x) any judgment,
decree or order of any court or administrative body having jurisdiction over any Holder or any of
their respective properties or (y) any settlement or compromise of any such claim effected by any
Holder with any such claimant (including the Company), then the Guaranteed Obligations or part
thereof intended to be satisfied shall be reinstated and continue, and this Guaranty shall continue
in full force as if such payment or proceeds had not been received, notwithstanding any revocation
thereof or the cancellation of any Note or any other instrument evidencing any Guaranteed
Obligations or otherwise, and the Subsidiary Guarantors, jointly and severally, shall be liable to
pay the Holders, and hereby do indemnify the Holders and hold them harmless for, the amount of such
payment or proceeds so surrendered and all expenses (including reasonable attorneys’ fees, court
costs and expenses attributable thereto) incurred by any Holder in defense of any claim made
against any of them that any payment or proceeds received by any Holder in respect of all or part
of the Guaranteed Obligations must be surrendered. The provisions of this paragraph shall survive
the termination of this Guaranty, and any satisfaction and discharge of the Company by virtue of
any payment, court order or any Federal or state law.

     (b) If an event permitting the acceleration of the maturity of any of the Guaranteed
Obligations shall at any time have occurred and be continuing, and such acceleration shall at such
time be prevented by reason of the pendency against the Company or any other Person of any case or
proceeding contemplated by Section 8(a) hereof, then, for the purpose of defining the obligation of
any Subsidiary Guarantor under this Guaranty, the maturity of the principal amount of the
Guaranteed Obligations shall be deemed to have been accelerated with the same effect as if an
acceleration had occurred in accordance with the terms of such Guaranteed Obligations, and such
Subsidiary Guarantor shall forthwith pay such principal amount, all accrued and unpaid interest
thereon, and all other Guaranteed Obligations, due or that would have become due but for such case
or proceeding, without further notice or demand.

Section 9. Term of Guaranty.

     This Guaranty and all guarantees, covenants and agreements of each Subsidiary Guarantor
contained herein shall continue in full force and effect and shall not be discharged until such
time as all of the principal of and interest on the Notes, the other Guaranteed Obligations and
other independent payment obligations of such Subsidiary Guarantor under this

E-2.4(b)-16

 

 

	Guaranty shall be indefeasibly paid in cash and performed in full, and all of the agreements
of each of the other Subsidiary Guarantors hereunder shall be duly and indefeasibly paid in cash
and performed in full.

Section 10. Contribution.

     In order to provide for just and equitable contribution among the Subsidiary Guarantors, each
Subsidiary Guarantor agrees that, to the extent any Subsidiary Guarantor makes any payment
hereunder on any date which, when added to all preceding payments made by such Subsidiary Guarantor
hereunder, would result in the aggregate payments by such Subsidiary Guarantor hereunder exceeding
its Percentage (as defined below) of all payments then or theretofore made by all Subsidiary
Guarantors hereunder, such Subsidiary Guarantor shall have a right of contribution against each
other Subsidiary Guarantor whose aggregate payments then or theretofore made hereunder are less
than its Percentage of all payments by all Subsidiary Guarantors then or theretofore made
hereunder, in an amount such that, after giving effect to any such contribution rights, each
Subsidiary Guarantor will have paid only its Percentage of all payments by all Subsidiary
Guarantors then or theretofore made hereunder. Such contribution rights shall be subordinate and
subject in right of payment to the Guaranteed Obligations and all other indebtedness owed to any
Holder and, except as provided in the next sentence, no Subsidiary Guarantor shall exercise such
rights of contribution until all Guaranteed Obligations have been indefeasibly paid in cash and
performed in full. Furthermore, each Subsidiary Guarantor hereby unconditionally and irrevocably
agrees that in the event any payment shall be required to be made to any Holder under this Guaranty
or any other guaranty, such Subsidiary Guarantor will contribute, to the maximum extent permitted
by law, such amounts to each other Subsidiary Guarantor and each other guarantor so as to maximize
the aggregate amount paid to the Holders under or in respect of the Notes and the Note Purchase
Agreement. A Subsidiary Guarantor’s “Percentage” on any date shall mean the percentage obtained by
dividing (a) the Adjusted Net Assets of such Subsidiary Guarantor on such date by (b) the sum of
the Adjusted Net Assets of all Subsidiary Guarantors on such date. “Adjusted Net Assets” means,
for each Subsidiary Guarantor on any date, the lesser of (i) the amount by which the fair value of
the property of such Subsidiary Guarantor exceeds the total amount of liabilities, including
contingent liabilities, but excluding liabilities under this Guaranty, of such Subsidiary Guarantor
on such date and (ii) the amount by which the present fair salable value of the assets of such
Subsidiary Guarantor on such date exceeds the amount that will be required to pay the probable
liability of such Subsidiary Guarantor on its debts, excluding debt in respect of this Guaranty, as
they become absolute and matured.

Section 11. Limitation of Liability. 

     Each Subsidiary Guarantor hereby confirms that it is the intention of such Subsidiary
Guarantor that the guarantee by such Subsidiary Guarantor pursuant to this Guaranty not constitute
a fraudulent transfer or conveyance for purposes of Title 11 of the United States Code, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar applicable Federal or
state law (all such statutes and laws are collectively referred to as “Fraudulent Conveyance
Laws”). To effectuate the foregoing intention, each Subsidiary
Guarantor hereby irrevocably agrees that the obligations of such Subsidiary Guarantor under
this

E-2.4(b)-17

 

 

Guaranty shall be limited to the amount as will, after giving effect to all rights to receive
any collections from or payments by or on behalf of any other Subsidiary Guarantor in respect of
the obligations of such other Subsidiary Guarantor pursuant to Section 10 hereof, result in the
obligations of such Subsidiary Guarantor under this
Guaranty not constituting such a fraudulent
transfer or conveyance. In the event that the liability of any Subsidiary Guarantor hereunder is
limited pursuant to this Section 11 to an amount that is less than the total amount of the
Guaranteed Obligations, then it is understood and agreed that the portion of the Guaranteed
Obligations for which such Subsidiary Guarantor is liable hereunder shall be the last portion of
the Guaranteed Obligations to be repaid.

Section 12. Negative Pledge. 

     Except as permitted under Section 10.4 of the Note Purchase Agreement, no Subsidiary Guarantor
will create any Lien on its assets or property to any other Person during the pendency of this
Guaranty.

Section 13. Supplemental Agreement. 

     Upon execution and delivery by a Subsidiary of a Supplemental Agreement substantially in the
form of Exhibit A hereto, such Subsidiary shall become a Subsidiary Guarantor hereunder with the
same force and effect as if originally named as a Subsidiary Guarantor herein. The execution and
delivery of any such instrument shall not require the consent of any other Subsidiary Guarantor
hereunder or of any Holder. The rights and obligations of each Subsidiary Guarantor hereunder
shall remain in full force and effect notwithstanding the addition of any new Subsidiary Guarantor
as a party to this Guaranty.

Section 14. Definitions and Terms Generally. 

     (a) Unless otherwise defined herein, capitalized terms defined in the Note Purchase Agreement
are used herein as defined therein. In addition, the following terms shall have the following
meanings.

     “Adjusted Net Assets” has the meaning specified in Section 10 hereof.

     “Fraudulent Conveyance Laws” has the meaning specified in Section 11 hereof.

     “Guaranteed Obligations” has the meaning specified in Section 1 hereof.

     “Guaranty” has the meaning specified in the introduction hereto.

     “holder” means, with respect to any Note, the Person in whose name such Note is registered in
the register maintained by the Company pursuant to Section 13.1 of the Note Purchase Agreement.

     “Holders” has the meaning specified in the introduction hereto.

E-2.4(b)-18

 

 

     “Material Adverse Effect” means a material adverse effect on (a) the business, operations,
affairs, financial condition, assets or properties of the Company and the Subsidiary Guarantors,
taken as a whole, (b) the ability of any Subsidiary Guarantor to perform its obligations under this
Guaranty or (c) the validity or enforceability of this Guaranty, the Note Purchase Agreement or the
Notes.

     “Maximum Guaranteed Amount” shall mean, for each Subsidiary Guarantor, the maximum amount
which any Subsidiary Guarantor could pay under this Guaranty without having such payment set aside
as a fraudulent transfer or conveyance or similar action under Fraudulent Conveyance Law.

     “Note Purchase Agreement” has the meaning specified in the Recitals hereto.

     “Notes” has the meaning specified in the Recitals hereto.

     “Percentage” has the meaning specified in Section 10 hereof.

     “property” or “properties” means, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate.

     “Required Holders” has the meaning specified in the Note Purchase Agreement.

     “Subsidiary Guarantor” has the meaning specified in the introduction hereto.

     (b) Whenever the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be
followed by the phrase “without limitation.” All references herein to Articles, Sections, Exhibits
and Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules
to, this Guaranty unless the context shall otherwise require.

Section 15. Notices. 

     All notices under the terms and provisions hereof shall be in writing (with charges prepaid),
and shall be delivered or sent by hand, by telecopy, by express courier service or by registered or
certified mail, return receipt requested, postage prepaid, addressed,

     (a) if to any Holder, at the address set forth in the Note Purchase Agreement, or at
such other address as any such Holder shall from time to time designate to the Company,

     (b) if to a Subsidiary Guarantor, at the address of such Subsidiary Guarantor set forth
on the signature pages hereto or at such other address as such Subsidiary Guarantor shall
from time to time designate in writing to each Holder.

A notice or communication shall be deemed to have been duly given and effective:

E-2.4(b)-19

 

 

	 	(a)	 	when delivered (whether or not accepted), if personally delivered;
	 
	 	(b)	 	five Business Days after being deposited in the mail, postage prepaid, if
delivered by first-class mail (whether or not accepted);
	 
	 	(c)	 	when sent, if sent via facsimile;
	 
	 	(d)	 	when delivered if sent by registered or certified mail (whether or not
accepted); and
	 
	 	(e)	 	on the next Business Day if timely delivered by an overnight air courier, with
charges prepaid (whether or not accepted).

Section 16. Amendments, Etc. 

     No amendment, alteration, modification or waiver of any term or provision of this Guaranty,
nor consent to any departure by any Subsidiary Guarantor therefrom, shall in any event be effective
unless the same shall be in writing and consented to by each Subsidiary Guarantor and the Required
Holders provided, however, that (i) any amendment, alteration, modification or waiver of the terms
and conditions contained in Section 1 hereof shall require consent from all Holders, and then such
waiver or consent shall be effective only in the specific instance and for the specific purpose for
which given and (ii) any Supplemental Agreement executed pursuant to Section 13 shall not require
the consent of any Holder or any Subsidiary Guarantor.

Section 17. Consent to Jurisdiction; Service of Process. 

     (a) Each Subsidiary Guarantor irrevocably submits to the nonexclusive in personam jurisdiction
of any New York State or federal court sitting in New York City, over any suit, action or
proceeding arising out of or relating to this Guaranty or the Notes. To the fullest extent it may
effectively do so under applicable law, each Subsidiary Guarantor irrevocably waives and agrees not
to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the in
personam jurisdiction of any such court, any objection that it may now or hereafter have to the
laying of the venue of any such suit, action or proceeding brought in any such court and any claim
that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum.

     (b) Each Subsidiary Guarantor agrees, to the fullest extent it may effectively do so under
applicable law, that a final judgment in any suit, action or proceeding of the nature referred to
in paragraph (a) of this Section 17 brought in any such court shall be conclusive and binding upon
such party, subject to rights of appeal and may be enforced in the courts of the United States of
America or the State of New York (or any other courts to the jurisdiction of which such party is or
may be subject) by a suit upon such judgment.

     (c) Each Subsidiary Guarantor consents to process being served in any suit, action or
proceeding of the nature referred to in paragraph (a) of this Section 17 by mailing a copy thereof

E-2.4(b)-20

 

 

by registered or certified mail, postage prepaid, return receipt requested, to the address of each
Subsidiary Guarantor specified in Section 15 or at such other address of which the Holders shall
then have been notified pursuant to said Section. Each Subsidiary Guarantor agrees that such
service upon receipt (i) shall be deemed in every respect effective service of process upon it in
any such suit, action or proceeding and (ii) shall, to the full extent permitted by law, be taken
and held to be valid personal service upon and personal delivery to such party. Notices hereunder
shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United
States Postal Service or any reputable commercial delivery service.

     (d) Nothing in this Section 17 shall affect the right of any Holder to serve process in any
manner permitted by law, or limit any right that any of the Holders may have to bring proceedings
against any Subsidiary Guarantor in the courts of any appropriate jurisdiction or to enforce in any
lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

Section 18. Waiver of Jury Trial. 

     Each Subsidiary Guarantor and by its acceptance hereof each Holder, to the fullest extent
permitted by applicable law, irrevocably and unconditionally waives the right to trial by jury in
any legal or equitable action, suit or proceeding arising out of or relating to this Guaranty or
the Note Purchase Agreement or any transaction contemplated hereby or thereby or the subject matter
of any of the foregoing.

Section 19. Survival. 

     All warranties, representations and covenants made by each Subsidiary Guarantor herein or in
any written certificate or other instrument required to be delivered by it or on its behalf
hereunder or under the Note Purchase Agreement shall be considered to have been relied upon by the
Holders and shall survive the execution and delivery of this Guaranty, regardless of any
investigation made by any Holder or on such Holder’s behalf. All statements in any such
certificate or other instrument shall constitute warranties and representations by such Subsidiary
Guarantor hereunder.

Section 20. Severability. 

     Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction. To the extent permitted by applicable law, each Subsidiary Guarantor hereby waives
any provision of law that renders any provisions hereof prohibited or unenforceable in any respect.

E-2.4(b)-21

 

 

Section 21. Successors and Assigns. 

     The terms of this Guaranty shall be binding upon each Subsidiary Guarantor and its successors
and assigns and shall inure to the benefit of the Holders and their respective successors and
assigns.

Section 22. Table of Contents; Headings. 

     The section and paragraph headings in this Guaranty and the table of contents are for
convenience of reference only and shall not modify, define, expand or limit any of the terms or
provisions hereof, and all references herein to numbered sections, unless otherwise indicated, are
to sections in this Guaranty.

Section 23. Counterparts. 

     This Guaranty may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one instrument.

Section 24. Governing Law. 

     This Guaranty shall in all respects be governed by, and construed and interpreted in
accordance with, the laws of the State of New York, without regard to the conflicts of laws
principles of such state.

Section 25. Release. 

     Notwithstanding any other provision hereof to the contrary, including without limitation
Section 3(c)(v), 3(c)(xiv) and 3(c)(xv), a Subsidiary Guarantor shall be automatically released
from its guaranty hereunder upon the sale or exchange of all or substantially all of the stock (or
other equity interests) or the assets of such Subsidiary Guarantor permitted pursuant to
Section 10.6 of the Note Purchase Agreement.

Section 26. Covenant Compliance. 

     Each Subsidiary Guarantor agrees to comply with each of the covenants contained herein and in
the Note Purchase Agreement that imposes or purports to impose, by reference to such Subsidiary
Guarantor, express or otherwise, through agreements with the Company, restrictions or obligations
on such Subsidiary Guarantor.

E-2.4(b)-22

 

 

     In Witness Whereof, each party hereto has caused this Guaranty to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	American Gypsum Company LLC

American Gypsum Marketing Company

CCP Cement Company

CCP Concrete/Aggregates LLC

CCP Gypsum Company

CCP Land Company

Centex Cement Corporation

Hollis & Eastern Railroad Company LLC

Mathews Readymix LLC

M&W Drywall Supply Company

Mountain Cement Company

Nevada Cement Company

Republic Paperboard Company LLC

Texas Cement Company

Western Aggregates LLC 

Western Cement Company of California

AG South Carolina LLC

Illinois Cement Company LLC 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Centex Materials LLC

TLCC GP LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TLCC LP LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Notice for each of the above:

	 	 	 	 	 
	 	 Address: 3811 Turtle Creek Blvd.

               Suite 1100

               Dallas, Texas 75219

Telecopy: (214) 432-2100

 	 
	 	 	 
	 	 	 
	 	 	 
	 

E-2.4(b)-23

 

 

Exhibit A

Form of Supplemental Agreement

     Supplemental Agreement dated as of                     , ___from                     , a ___
organized under the laws of the State of                      (the “New Subsidiary”), for the benefit of the
Holders (as defined in the Guaranty referred to below). Capitalized terms used herein without
definition shall have the respective meanings ascribed thereto in the Subsidiary Guaranty
Agreement, dated as of October 2, 2007 (the “Guaranty”), from: (i) [names of guarantors] and (___)
such other Subsidiaries (as defined below) as shall become parties thereto in accordance therewith,
for the benefit of the Holders (as such term is defined in such Guaranty).

     Whereas, Eagle Materials Inc., a Delaware corporation (the “Company”), authorized the
issue and sale of (i) $20,000,000 6.08% Series 2007A Senior Notes, Tranche A, due October 2, 2014
(the “Tranche A Notes”), (ii) $50,000,000 6.27% Series 2007A Senior Notes, Tranche B, due October
2, 2016 (the “Tranche B Notes”), (iii) $70,000,000 6.36% Series 2007A Senior Notes, Tranche C, due
October 2, 2017 (the “Tranche C Notes”) and (iv) $60,000,000 6.48% Series 2007A Senior Notes,
Tranche D, due October 2, 2019 (the “Tranche D Notes” and, together with the Tranche A Notes, the
Tranche B Notes and the Tranche C Notes, the “Series 2007A Notes”), pursuant to a Note Purchase
Agreement, dated as of October 2, 2007 (as amended, modified or supplemented from time to time,
the “Note Purchase Agreement”) among the Company and the purchasers named therein.

     Whereas, the Company is authorized to issue Additional Notes (as such term is defined
in the Note Purchase Agreement) of one or more separate series from time to time in an aggregate
principal amount not to exceed $500,000,000 pursuant to Section 2.2 of the Note Purchase Agreement.

     Whereas, the Additional Notes together with the Series 2007A Notes are collectively
referred to as the “Notes”.

     Whereas, the New Subsidiary is a Subsidiary of the Company.

     Whereas, certain of the existing Subsidiaries of the Company have entered into the
Guaranty.

     Whereas, the Note Purchase Agreement requires that certain Subsidiaries become party
to the Guaranty (as a Subsidiary Guarantor).

     Whereas, the New Subsidiary acknowledges that it has and will derive substantial
benefits from the issuance of the Notes.

     Whereas, the Guaranty specifies that additional Subsidiaries may become Subsidiary
Guarantors under such Guaranty by execution and delivery of an instrument in the form of this
Agreement. The undersigned Subsidiary is executing this Agreement in accordance with the

E-2.4(b)-24

 

 

requirements of the Note Purchase Agreement and the Guaranty in order to become a Subsidiary
Guarantor under the Guaranty as consideration for the Notes previously purchased.

     Now, Therefore, the New Subsidiary Guarantor agrees as follows:

     Section 1. Guaranty. In accordance with Section 13 of the Guaranty, the New Subsidiary by its
signature hereto shall become a Subsidiary Guarantor under such Guaranty with the same force and
effect as if originally named therein as a Subsidiary Guarantor and the New Subsidiary hereby
(a) agrees to all the terms and provisions of such Guaranty applicable to it as a Subsidiary
Guarantor thereunder, (b) represents and warrants that the representations and warranties made by
it as a Subsidiary Guarantor are true and correct on and as of the date hereof with the same effect
as though made on and as of the date hereof, (c) acknowledges receipt of a copy of and agrees to be
obligated and bound by the terms of such Guaranty, and (d) agrees that each reference to a
“Subsidiary Guarantor” in such Guaranty shall be deemed to include the New Subsidiary.

     Section 2. Enforceability. The New Subsidiary hereby represents and warrants that this
Agreement has been duly authorized, executed and delivered by the New Subsidiary and that each of
this Agreement and the Guaranty (as supplemented hereby) constitutes a legal, valid and binding
obligation of the New Subsidiary enforceable against it in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the applicability of creditors’ rights generally and by equitable principles of
general applicability (regardless of whether such enforceability is considered in a proceeding in
equity or at law).

     Section 3. Effect on Guaranty. Except as expressly supplemented hereby, the Guaranty shall
continue in full force and effect.

     Section 4. Governing Law. This Agreement shall in all respects be governed by,
and construed and interpreted in accordance with, the laws of the State of New York, without regard
to the conflicts of laws principles of such state.

     Section 5. Savings Clause. To the fullest extent permitted under applicable law, in the event
any one or more of the provisions contained in this Agreement should be held invalid, illegal or
unenforceable in any respect with respect to the New Subsidiary, no party hereto shall be required
to comply with such provision for so long as such provision is held to be invalid, illegal or
unenforceable, and the validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired. The parties shall endeavor in good-faith
negotiations to replace any invalid, illegal or unenforceable provisions with valid provisions, the
economic effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

     Section 6. Notices. All communications to the New Subsidiary shall be given to it at the
address or telecopy number set forth under its signature hereto.

E-2.4(b)-25

 

 

     In Witness Whereof, the New Subsidiary has duly executed this Agreement as of the day
and year first above written.

	 	 	 	 	 
	 	[New Subsidiary]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Telecopy:	 	 	 	 
	 

	 	 	 	 	 	 

E-2.4(b)-26

 

 

Form of Opinion of General Counsel

to the Company

     The closing opinion of James H. Graass, General Counsel of the Company, which is called for by
Section 4.4 of the Note Purchase Agreement, shall be dated the Closing Date and addressed to the
Purchasers, shall be satisfactory in scope and form to each Purchaser and shall be in the form
attached hereto.

Exhibit 4.4(a)

(to Note Purchase Agreement)

 

 

Form of Opinion of Special Counsel

to the Company

     The closing opinion of Baker Botts L.L.P., special counsel to the Company, which is called for
by Section 4.4 of the Note Purchase Agreement, shall be dated the Closing Date and addressed to the
Purchasers, shall be satisfactory in scope and form to each Purchaser and shall be in the form
attached hereto.

Exhibit 4.4(b)

(to Note Purchase Agreement)

 

 

Form of Opinion of Special Counsel

to the Purchasers

     The closing opinion of Chapman and Cutler LLP, special counsel to the Purchasers, called for
by Section 4.4 of the Note Purchase Agreement, shall be dated the Closing Date and addressed to
each Purchaser, shall be satisfactory in form and substance to each Purchaser and shall be to the
effect that:

     1. The Company is a corporation, validly existing and in good standing under the laws of its
jurisdiction of incorporation and has the corporate power and the corporate authority to execute
and deliver the Note Purchase Agreement and to issue the Series 2007A Notes.

     2. The Note Purchase Agreement has been duly authorized by all necessary corporate action on
the part of the Company, has been duly executed and delivered by the Company and constitutes the
legal, valid and binding contract of the Company enforceable in accordance with its terms, subject
to bankruptcy, insolvency, fraudulent conveyance and similar laws affecting creditors’ rights
generally, and general principles of equity (regardless of whether the application of such
principles is considered in a proceeding in equity or at law).

     3. The Series 2007A Notes have been duly authorized by all necessary corporate action on the
part of the Company, and the Series 2007A Notes being delivered on the date hereof have been duly
executed and delivered by the Company and constitute the legal, valid and binding obligations of
the Company enforceable in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent conveyance and similar laws affecting creditors’ rights generally, and general
principles of equity (regardless of whether the application of such principles is considered in a
proceeding in equity or at law).

     4. The issuance, sale and delivery of the Series 2007A Notes and the execution and delivery of
the Subsidiary Guaranty under the circumstances contemplated by the Note Purchase Agreement and the
Subsidiary Guaranty do not, under existing law, require the registration of the Series 2007A Notes
or the Subsidiary Guaranty under the Securities Act of 1933, as amended, or the qualification of an
indenture under the Trust Indenture Act of 1939, as amended.

Exhibit 4.4(c)
(to Note Purchase Agreement)

 

 

     With respect to matters of fact upon which such opinion is based, Chapman and Cutler LLP may
rely on appropriate certificates of public officials and officers of the Company and upon
representations of the Company and the Purchasers delivered in connection with the issuance and
sale of the Series 2007A Notes.

     In rendering the opinion set forth in paragraph 1 above, Chapman and Cutler LLP may rely, as
to matters referred to in paragraph 1, solely upon an examination of the Articles of Incorporation
certified by, and a certificate of good standing of the Company from, the Secretary of State of the
State of Delaware, the Bylaws of the Company and the general business corporation law of the State
of Delaware. The opinion of Chapman and Cutler LLP is limited to the laws of the State of New
York, the general business corporation law of the State of Delaware and the Federal laws of the
United States.

E-4.4(c)-2

 

 

 

Eagle Materials Inc.

[Number] Supplement to Note Purchase Agreement

Dated as of                                         

     Re: $                    ___% Series ___Senior Notes

Due                                         

 

Exhibit S

(to Note Purchase Agreement)

 

 

Eagle Materials Inc.

3811 Turtle Creek Blvd., Suite 1100

Dallas, Texas 75219

Dated as of

                                        , 20__

To the Purchaser(s) named in

Schedule A hereto

Ladies and Gentlemen:

     This [Number] Supplement to Note Purchase Agreement (the “Supplement”) is between Eagle
Materials Inc., a Delaware corporation (the “Company”), and the institutional investors named
on Schedule A attached hereto (the “Purchasers”).

     Reference is hereby made to that certain Note Purchase Agreement dated as of October 2, 2007
(the “Note Purchase Agreement”) between the Company and the purchasers listed on Schedule A
thereto. All capitalized terms not otherwise defined herein shall have the same meaning as
specified in the Note Purchase Agreement. Reference is further made to Section 2.2 of the Note
Purchase Agreement which requires that, prior to the delivery of any Additional Notes, the Company
and each Additional Purchaser shall execute and deliver a Supplement.

     The Company hereby agrees with the Purchaser(s) as follows:

     1. The Company has authorized the issue and sale of $                     aggregate principal amount of
its ___% Series ___Senior Notes due                     , ___(the “Series ___Notes”). The Series
___Notes, together with the Series 2007A Notes [and the Series ___Notes] initially issued
pursuant to the Note Purchase Agreement [and the                      Supplement] and each series of
Additional Notes which may from time to time hereafter be issued pursuant to the provisions of
Section 2.2 of the Note Purchase Agreement, are collectively referred to as the “Notes” (such term
shall also include any such notes issued in substitution therefor pursuant to Section 13 of the
Note Purchase Agreement). The Series ___Notes shall be substantially in the form set out in
Exhibit 1 hereto with such changes therefrom, if any, as may be approved by the Purchaser(s) and
the Company.

     2. Subject to the terms and conditions hereof and as set forth in the Note Purchase Agreement
and on the basis of the representations and warranties hereinafter set forth, the Company agrees to
issue and sell to each Purchaser, and each Purchaser agrees to purchase from the Company, Series
___Notes in the principal amount set forth opposite such Purchaser’s name on Schedule A hereto
at a price of 100% of the principal amount thereof on the closing date hereinafter mentioned.

E-S-2

 

 

     3. The sale and purchase of the Series ___Notes to be purchased by each Purchaser shall
occur at the offices of [                                        ] at 10:00 a.m. Chicago time, at a closing
(the “Closing”) on ___, ___or on such other Business Day thereafter on or prior to ___,
___as may be agreed upon by the Company and the Purchasers. At the Closing, the Company will
deliver to each Purchaser the Series ___Notes to be purchased by such Purchaser in the form of
a single Series                      Note (or such greater number of Series ___Notes in denominations of at
least $100,000 as such Purchaser may request) dated the date of the Closing and registered in such
Purchaser’s name (or in the name of such Purchaser’s nominee), against delivery by such Purchaser
to the Company or its order of immediately available funds in the amount of the purchase price
therefor by wire transfer of immediately available funds for the account of the Company to account
number [                                        ] at                      Bank, [Insert Bank address, ABA number for wire
transfers, and any other relevant wire transfer information]. If, at the Closing, the Company
shall fail to tender such Series ___Notes to any Purchaser as provided above in this Section 3,
or any of the conditions specified in Section 4 shall not have been fulfilled to any Purchaser’s
satisfaction, such Purchaser shall, at such Purchaser’s election, be relieved of all further
obligations under this Supplement and the Note Purchase Agreement, without thereby waiving any
rights such Purchaser may have by reason of such failure or such nonfulfillment.

     4. The obligation of each Purchaser to purchase and pay for the Series ___Notes to be sold
to such Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction,
prior to the Closing, of the conditions set forth in Section 4 of the Note Purchase Agreement with
respect to the Series ___Notes to be purchased at the Closing, and to the following additional
conditions:

     (a) Except as supplemented, amended or superceded by the representations and warranties
set forth in Exhibit A hereto, each of the representations and warranties of the Company set
forth in Section 5 of the Note Purchase Agreement shall be correct as of the date of Closing
and the Company shall have delivered to each Purchaser an Officer’s Certificate, dated the
date of the Closing certifying that such condition has been fulfilled.

     (b) Contemporaneously with the Closing, the Company shall sell to each Purchaser, and
each Purchaser shall purchase, the Series ___Notes to be purchased by such Purchaser at
the Closing as specified in Schedule A.

     5. [Here insert special provisions for Series ___Notes including prepayment provisions
applicable to Series ___Notes (including Make-Whole Amount) and closing conditions applicable
to Series ___Notes].

     6. Each Purchaser represents and warrants that the representations and warranties set forth in
Section 6 of the Note Purchase Agreement are true and correct on the date hereof with respect to
the purchase of the Series ___Notes by such Purchaser.

     7. The Company and each Purchaser agree to be bound by and comply with the terms and
provisions of the Note Purchase Agreement as fully and completely as if such Purchaser were an
original signatory to the Note Purchase Agreement.

E-S-3

 

 

     The execution hereof shall constitute a contract between the Company and the Purchaser(s) for
the uses and purposes hereinabove set forth, and this agreement may be executed in any number of
counterparts, each executed counterpart constituting an original but all together only one
agreement.

	 	 	 	 	 
	 	Eagle Materials Inc.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Accepted as of __________, _____

	 	 	 	 	 
	 	[Variation]

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

E-S-4

 

 

Information Relating to Purchasers

	 	 	 	 	 
	 	 	 	 	Principal 
	 	 	 	 	Amount of Series
	 	 	 	 	______ Notes to Be
	Name and Address of Purchaser	 	Purchased
	[Name of Purchaser]	 	$
	 
	 	 	 	 
	(1)
	 	All payments by wire transfer of	 	 
	 
	 	immediately available funds to:	 	 
	 
	 
	 	with sufficient information to identify the	 	 
	 
	 	source and application of such funds.	 	 
	 
	 	 	 	 
	(2)
	 	All notices of payments and written	 	 
	 
	 	confirmations of such wire transfers:	 	 
	 
	 	 	 	 
	(3)
	 	All other communications:	 	 

E-S-5

 

 

Supplemental Representations

          The Company represents and warrants to each Purchaser that except as hereinafter set forth in
this Exhibit A, each of the representations and warranties set forth in Section 5 of the Note
Purchase Agreement is true and correct in all material respects as of the date hereof with respect
to the Series ___Notes with the same force and effect as if each reference to “Series 2007A
Notes” set forth therein was modified to refer to the “Series ___Notes” and each reference to
“this Agreement” therein was modified to refer to the Note Purchase Agreement as supplemented by
the ___Supplement, and each reference to “the Closing Date” set forth therein was modified to
refer to the Closing under the                      Supplement. The Section references hereinafter set forth
correspond to the similar sections of the Note Purchase Agreement which are supplemented hereby:

     Section 5.3. Disclosure. The Company, through its agent, Banc of America Securities LLC has
delivered to each Purchaser a copy of a Private Placement Memorandum, dated                      (the
“Memorandum”), relating to the transactions contemplated by the ___Supplement. The Memorandum
fairly describes, in all material respects, the general nature of the business and principal
properties of the Company and its Restricted Subsidiaries. The Note Purchase Agreement, the
Memorandum, the documents, certificates or other writings delivered to each Purchaser by or on
behalf of the Company in connection with the transactions contemplated by the Note Purchase
Agreement and the ___Supplement and the financial statements listed in Schedule 5.5 to the
___Supplement, taken as a whole, do not contain any untrue statement of a material fact or omit
to state any material fact necessary to make the statements therein not misleading in light of the
circumstances under which they were made. Since                     , there has been no change in the
financial condition, operations, business, properties or prospects of the Company or any
Restricted Subsidiary except changes that individually or in the aggregate would not reasonably be
expected to have a Material Adverse Effect. There is no fact known to the Company that would
reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in
the Memorandum or in the other documents, certificates and other writings delivered to each
Purchaser by or on behalf of the Company specifically for use in connection with the transactions
contemplated hereby.

     Section 5.4. Organization and Ownership of Shares of Subsidiaries. (a) Schedule 5.4 to the
___Supplement contains (except as noted therein) complete and correct lists of (i) the
Company’s Restricted and Unrestricted Subsidiaries, and showing, as to each Subsidiary, the correct
name thereof, the jurisdiction of its organization, and the percentage of shares of each class of
its capital stock or similar equity interests outstanding owned by the Company and each other
Subsidiary, (ii) the Company’s Affiliates, other than Subsidiaries, and (iii) the Company’s
directors and senior officers.

          (b) All of the outstanding shares of capital stock or similar equity interests of each
Subsidiary shown in Schedule 5.4 to the ___Supplement as being owned by the Company and its
Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the
Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in
Schedule 5.4 to the ___Supplement).

Exhibit A

(to Supplement)

 

 

          (c) Each Subsidiary identified in Schedule 5.4 to the ___Supplement is a corporation or
other legal entity duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity
and is in good standing in each jurisdiction in which such qualification is required by law, other
than those jurisdictions as to which the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each
such Subsidiary has the corporate or other power and authority to own or hold under lease the
properties it purports to own or hold under lease and to transact the business it transacts and
proposes to transact.

          (d) No Subsidiary is a party to, or otherwise subject to, any legal restriction or any
agreement (other than this Supplement, the agreements listed on Schedule 5.4 to the ___
Supplement and customary limitations imposed by corporate law statutes) restricting the ability of
such Subsidiary to pay dividends out of profits or make any other similar distributions of profits
to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar
equity interests of such Subsidiary.

     Section 5.5. Financial Statements; Material Liabilities. The Company has delivered
to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on
Schedule 5.5 to the ___Supplement. All of said financial statements (including in each case
the related schedules and notes) fairly present in all material respects the consolidated financial
position of the Company and its Subsidiaries as of the respective dates specified in such Schedule
and the consolidated results of their operations and cash flows for the respective periods so
specified and have been prepared in accordance with GAAP consistently applied throughout the
periods involved except as set forth in the notes thereto (subject, in the case of any interim
financial statements, to normal year-end adjustments). The Company and its Subsidiaries do not
have any Material liabilities that are not disclosed on such financial statements or otherwise
disclosed in the Disclosure Documents.

     Section 5.13. Private Offering by the Company. Neither the Company nor anyone acting on its
behalf has offered the Series ___Notes or any similar securities for sale to, or solicited any
offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with,
any Person other than the Purchasers and not more than [___] other Institutional Investors, each
of which has been offered the Series ___Notes at a private sale for investment. Neither the
Company nor anyone acting on its behalf has taken, or will take, any action that would subject the
issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act.

     Section 5.14. Use of Proceeds; Margin Regulations. The Company will apply the proceeds of the
sale of the Series ___Notes to                                                              and for general corporate
purposes. No part of the proceeds from the sale of the Series ___Notes pursuant to the ___
Supplement will be used, directly or indirectly, for the purpose of buying or carrying any margin
stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System
(12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such
circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224)
or to involve any broker or dealer in a violation of

-2-

 

Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 5% of the
value of the consolidated assets of the Company and its Subsidiaries and the Company does not have
any present intention that margin stock will constitute more than 5% of the value of such assets.
As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have
the meanings assigned to them in said Regulation U.

     Section 5.15. Existing Debt; Future Liens. (a) Schedule 5.15 to the                      Supplement sets
forth a complete and correct list of all outstanding Debt of the Company and its Restricted
Subsidiaries as of                     , since which date there has been no Material change in the
amounts, interest rates, sinking funds, installment payments or maturities of the Debt of the
Company or its Restricted Subsidiaries. Neither the Company nor any Restricted Subsidiary is in
default and no waiver of default is currently in effect, in the payment of any principal or
interest on any Debt of the Company or such Subsidiary and no event or condition exists with
respect to any Debt of the Company or any Restricted Subsidiary that would permit (or that with
notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to
become due and payable before its stated maturity or before its regularly scheduled dates of
payment.

     (b) Except as disclosed in Schedule 5.15 to the                      Supplement, neither the Company nor
any Restricted Subsidiary has agreed or consented to cause or permit in the future (upon the
happening of a contingency or otherwise) any of its property, whether now owned or hereafter
acquired, to be subject to a Lien not permitted by Section 10.4.

     (c) Neither the Company nor any Subsidiary is a party to, or otherwise subject to any
provision contained in, any instrument evidencing Debt of the Company or such Subsidiary, any
agreement relating thereto or any other agreement (including, but not limited to, its charter or
other organizational document) which limits the amount of, or otherwise imposes restrictions on the
incurring of, Debt of the Company, except as specifically indicated in Schedule 5.15 to the
___Supplement.

[Add any additional Sections as appropriate at the time the Series ______ Notes are issued]

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[Form of Series ______ Note]

Eagle Materials Inc.

___% Series ___Senior Note due                    

			
	No. [                    ]

$[                                        ]
	 	[Date]

PPN [                    ]

     For Value Received, the undersigned, Eagle Materials Inc., a corporation
organized and existing under the laws of the State of Delaware (herein called the “Company”),
hereby promises to pay to [                                        ], or registered assigns, the principal sum of
[                                        ] Dollars (or so much thereof as shall not have been prepaid) on
                                        , with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance hereof at the rate of ___% per annum from the date hereof, payable
semiannually, on the ___day of ___and ___in each year, commencing on the first of such
dates after the date hereof, until the principal hereof shall have become due and payable, and
(b) to the extent permitted by law, at a rate per annum from time to time equal to [2% above the
stated rate], on any overdue payment of interest and, during the continuance of an Event of
Default, on the unpaid balance hereof and on any overdue payment of any Make-Whole Amount, payable
[semiannually] as aforesaid (or, at the option of the registered holder hereof, on demand).

     Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at                                         , in
                                        , or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.

     This Note is one of a series of Senior Notes (the “Notes”) issued pursuant to a Supplement to
the Note Purchase Agreement dated as of October 2, 2007 (as from time to time amended, supplemented
or modified, the “Note Purchase Agreement”), between the Company, the Purchasers named therein and
Additional Purchasers of Notes from time to time issued pursuant to any Supplement to the Note
Purchase Agreement. This Note and the holder hereof are entitled equally and ratably with the
holders of all other Notes of all series from time to time outstanding under the Note Purchase
Agreement to all the benefits provided for thereby or referred to therein. Each holder of this
Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions
set forth in Section 20 of the Note Purchase Agreement and (ii) made the representations set forth
in Sections 6.2 and 6.3 of the Note Purchase Agreement. Unless otherwise indicated, capitalized
terms used in this Note shall have the respective meanings ascribed to such terms in the Note
Purchase Agreement.

Exhibit A

(to Supplement)

 

 

     This Note is registered with the Company and, as provided in the Note Purchase Agreement, upon
surrender of this Note for registration of transfer, duly endorsed, or
accompanied by a written instrument of transfer duly executed, by the registered holder hereof
or such holder’s attorney duly authorized in writing, a new Note of the same series for a like
principal amount will be issued to, and registered in the name of, the transferee. Prior to due
presentment for registration of transfer, the Company may treat the person in whose name this Note
is registered as the owner hereof for the purpose of receiving payment and for all other purposes,
and the Company will not be affected by any notice to the contrary.

     The Company will make required prepayments of principal on the dates and in the amounts
specified in the Note Purchase Agreement. [This Note is not subject to regularly scheduled
prepayments of principal.] This Note is [also] subject to optional prepayment, in whole or from
time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but
not otherwise.

     Pursuant to the Subsidiary Guaranty Agreement dated as of October 2, 2007 (as amended or
modified from time to time, the “Subsidiary Guaranty”), certain Subsidiaries of the Company have
absolutely and unconditionally guaranteed payment in full of the principal of, Make-Whole Amount,
if any, and interest on this Note and the performance by the Company of its obligations contained
in the Note Purchase Agreement all as more fully set forth in said Subsidiary Guaranty.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing,
the principal of this Note may be declared or otherwise become due and payable in the manner, at
the price (including any applicable Make-Whole Amount) and with the effect provided in the Note
Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the parties
shall be governed by, the law of the State of New York excluding choice-of-law principles of the
law of such State that would require the application of the laws of a jurisdiction other than such
State.

	 	 	 	 	 
	 	Eagle Materials Inc.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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