Document:

exv4w1

 

OMNIBUS INSTRUMENT

     WHEREAS, the parties named herein desire to enter into certain Program Documents contained
herein, each such document dated as of this 17th day of December, 2004, relating to the
issuance by Principal Life Income Fundings Trust 2004-79 (the “Trust”) of Notes to investors under
Principal Life’s secured notes program;

     WHEREAS, the Trust is a trust and will be organized under and its activities will be governed
by the provisions of the Trust Agreement (set forth in Section A of this Omnibus Instrument), dated
as of the date of the Pricing Supplement (attached to this Omnibus Instrument as Exhibit D)
(the “Pricing Supplement”), by and between the parties thereto indicated in Section F herein;

     WHEREAS, certain expense and indemnification arrangements between Principal Life and the
Trustee, on behalf of itself and on behalf of the Trust, are governed pursuant to the provisions of
the Expense and Indemnity Agreement dated as of March 5, 2004, by and between Principal Life and
the Trustee;

     WHEREAS, certain licensing arrangements between the Trust and Principal Financial Services,
Inc. will be governed pursuant to the provisions of the License Agreement (set forth in Section B
of this Omnibus Instrument), dated as of the date of the Pricing Supplement, by and between the
parties thereto indicated in Section F herein;

     WHEREAS, certain custodial arrangements of the Funding Agreement and the Guarantee will be
governed pursuant to the provisions of the Custodial Agreement (the “Custodial Agreement”) dated as
of March 5, 2004 by and among Bankers Trust Company, N.A., acting as custodian (the “Custodian”),
the Indenture Trustee and the Trustee, on behalf of the Trust;

     WHEREAS, the Notes will be issued pursuant to the Indenture (set forth in Section C of this
Omnibus Instrument), dated as of the Original Issue Date, by and between the parties thereto
indicated in Section F herein;

     WHEREAS, the sale of the Notes will be governed by the Terms Agreement (set forth in Section D
of this Omnibus Instrument), dated the date of the Pricing Supplement, by and among the parties
thereto indicated in Section F herein; and

     WHEREAS, certain agreements relating to the Notes, the Funding Agreement and the Guarantee are
set forth in the Coordination Agreement (set forth in Section E of this Omnibus Instrument), dated
as of the date of the Pricing Supplement, by and among the parties thereto indicated in Section F
herein.

     All capitalized terms used herein and not otherwise defined will have the meanings set forth
in the Indenture.

[Remainder of Page Left Intentionally Blank.]

 

 

SECTION A

TRUST AGREEMENT

     This TRUST AGREEMENT (this “Trust Agreement”), dated as of the date of the
Pricing Supplement, is entered into by and between GSS Holdings II, Inc., a
Delaware corporation, as trust beneficial owner (the “Trust Beneficial Owner”),
and U.S. Bank Trust National Association, a national banking association, as
Trustee (the “Trustee”).

W I T N E S S E T H:

     WHEREAS, the Trust Beneficial Owner and the Trustee desire to authorize
the issuance of a Trust Beneficial Interest and a series of Notes in connection
with the entry into this Trust Agreement;

     WHEREAS, all things necessary to make this Trust Agreement a valid and
legally binding agreement of the Trustee and the Trust Beneficial Owner,
enforceable in accordance with its terms, have been done;

     WHEREAS, the parties intend to provide for, among other things, (i) the
issuance and sale of the Notes (pursuant to the Indenture, the Distribution
Agreement and the related Terms Agreement) and the Trust Beneficial Interest,
(ii) the use of the proceeds of the sale of the Notes and Trust Beneficial
Interest to acquire the Funding Agreement, the payment obligations of which
will be fully and unconditionally guaranteed by the Guarantee, and (iii) all
other actions deemed necessary or desirable in connection with the transactions
contemplated by this Trust Agreement; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard Trust Terms, dated as of March 5, 2004, and attached to the
Omnibus Instrument as Exhibit A (the “Standard Trust Terms”) and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meanings set forth in the Standard Trust Terms (the Standard
Trust Terms and this Trust Agreement, collectively, the “Trust Agreement”).

     NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which are hereby acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard Trust Terms (except to the extent
expressly modified herein) are hereby incorporated herein by reference with the
same force and effect as though fully set forth herein. To the extent that the
terms set forth in Article 2 of this Trust Agreement are inconsistent with the
terms of the Standard Trust Terms, the terms set forth in Article 2 herein
shall apply.

A-1

 

ARTICLE 2

     Section 2.01 Name. The Trust created and governed by the Trust Agreement
shall be the trust specified in the Omnibus Instrument. The name of the Trust
shall be the name specified in the first paragraph of the Omnibus Instrument,
as such name may be modified from time to time by the Trustee following written
notice to the Trust Beneficial Owner.

     Section 2.02 Jurisdiction. The Trust is hereby organized in, and formed
under and pursuant to, the laws of the State of New York.

     Section 2.03 Initial Capital Contribution and Ownership. The Trust
Beneficial Owner has paid or has caused to be paid to, or to an account at the
direction of, the Trustee, on the date hereof, the sum of $15 (or, in the case
of Notes issued with original issue discount, such amount multiplied by the
issue price of the Notes). The Trustee hereby acknowledges receipt in trust
from the Trust Beneficial Owner, as of the date hereof, of the foregoing
contribution, which shall be used along with the proceeds from the sale of the
series of Notes to purchase the Funding Agreement. Upon the creation of the
Trust and the registration of the Trust Beneficial Interest in the Securities
Register (as defined in the Trust Agreement) by the Registrar in the name of
the Trust Beneficial Owner, the Trust Beneficial Owner shall be the sole
beneficial owner of the Trust.

     Section 2.04 Acknowledgment. The Trustee, on behalf of the Trust,
expressly acknowledges its duties and obligations set forth in the Standard
Trust Terms incorporated herein.

     Section 2.05 Additional Terms.

     None

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the Trust Agreement will enter into the Trust Agreement by
executing the Omnibus Instrument.

     By executing the Omnibus Instrument, the Trustee and the Trust Beneficial
Owner hereby agree that the Trust Agreement will constitute a legal, valid and
binding agreement between the Trustee and the Trust Beneficial Owner.

     All terms relating to the Trust or the series of Notes not otherwise
included in the Trust Agreement will be as specified in the Omnibus Instrument
or Pricing Supplement, as indicated herein.

A-2

 

     Section 2.07 Governing Law. The Trust Agreement will be governed by, and
construed in accordance with, the laws of the State of New York.

     Section 2.08 Counterparts. The Trust Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Left Intentionally Blank.]

A-3

 

SECTION B

LICENSE AGREEMENT

     This LICENSE AGREEMENT (this “License Agreement”), dated as of the date of
the Pricing Supplement, is entered into by and between Principal Financial
Services, Inc., an Iowa corporation with its principal place of business at 711
High Street, Des Moines, Iowa 50392 (the “Licensor”), and the Principal Life
Income Fundings Trust specified in the Omnibus Instrument (the “Licensee”).

W I T N E S S E T H:

     WHEREAS, the Licensor is the owner of certain trademarks and service marks
and registrations and pending applications therefor, and may acquire additional
trademarks and service marks in the future, all as described more fully below;

     WHEREAS, the Licensee desires to use certain of the Licensor’s trademarks
and service marks in connection with the Licensee’s activities, as described
more fully below;

     WHEREAS, the Licensor and the Licensee wish to formalize the agreement
between them regarding the Licensee’s use of the Licensor’s marks; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard License Agreement Terms, dated March 5, 2004, and attached to
the Omnibus Instrument as Exhibit B (the “Standard License Agreement Terms”)
and all capitalized terms not otherwise defined herein (including the recitals
hereof) shall have the meanings set forth in the Standard License Agreement
Terms (the Standard License Agreement Terms and this License Agreement,
collectively, the “License Agreement”).

     NOW, THEREFORE, in consideration of the mutual promises set forth herein
and for other good and valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard License Agreement Terms (except to the
extent expressly modified herein) are hereby incorporated herein by reference
with the same force and effect as though fully set forth herein. To the extent
that the terms set forth in Article 2 of this License Agreement are
inconsistent with the terms of the Standard License Agreement Terms, the terms
set forth in Article 2 herein shall apply.

ARTICLE 2

     Section 2.01 Additional Terms.

     None

B-1

 

     Section 2.02 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the License Agreement will enter into the License Agreement
by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, the Licensor and the Licensee hereby
agree that the License Agreement will constitute a legal, valid and binding
agreement between the Licensor and the Licensee.

     All terms relating to the Trust or the Notes not otherwise included in the
License Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement, as indicated herein.

     Section 2.03 Counterparts. The License Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Left Intentionally Blank.]

B-2

 

SECTION C

INDENTURE

     This INDENTURE (this “Indenture”) is entered into as of the Original Issue
Date by and between the Principal Life Income Fundings Trust specified in the
Omnibus Instrument (the “Trust”) and Citibank, N.A., as indenture trustee (the
“Indenture Trustee”).

     Citibank, N.A., in its capacity as indenture trustee, hereby accepts its
role as Registrar, Paying Agent, Transfer Agent and Calculation Agent
hereunder.

     References herein to “Indenture Trustee,” “Registrar,” “Transfer Agent,”
“Paying Agent” or “Calculation Agent” shall include the permitted successors
and assigns of any such entity from time to time.

W I T N E S S E T H:

     WHEREAS, the Trust has duly authorized the execution and delivery of this
Indenture to provide for the issuance of Notes;

     WHEREAS, all things necessary to make this Indenture a valid and legally
binding agreement of the Trust and the other parties to this Indenture,
enforceable in accordance with its terms, have been done, and the Trust
proposes to do all things necessary to make the Notes, when executed by the
Trust and authenticated and delivered pursuant hereto, valid and legally
binding obligations of the Trust as hereinafter provided; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard Indenture Terms, dated as of March 5, 2004, and attached to
the Omnibus Instrument as Exhibit C (the “Standard Indenture Terms”) and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meanings set forth in the Standard Indenture Terms (the Standard
Indenture Terms and this Indenture, collectively, the “Indenture”).

     NOW, THEREFORE, for and in consideration of the premises and the purchase
of the Notes by the Holders thereof, it is mutually covenanted and agreed by
each of the parties hereto as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard Indenture Terms (except to the extent
expressly modified herein) are hereby incorporated herein by reference (with
the same force and effect as though fully set forth herein). To the extent
that the terms set forth in Article 2 of this Indenture are inconsistent with
the terms of the Standard Indenture Terms, the terms set forth in Article 2
herein shall apply.

C-1

 

ARTICLE 2

     Section 2.01 Agreement to be Bound. Each of the Trust, the Indenture
Trustee, the Registrar, the Transfer Agent, the Paying Agent and the
Calculation Agent hereby agrees to be bound by all of the terms, provisions and
agreements set forth in the Indenture, with respect to all matters contemplated
in the Indenture, including, without limitation, those relating to the issuance
of the below-referenced Notes.

     Section 2.02 Designation of the Trust, the Notes, the Funding Agreement
and the Guarantee. The Trust created by the Trust Agreement and referred to in
the Indenture is the Principal Life Income Fundings Trust specified in the
Omnibus Instrument. The Notes issued by the Trust and governed by the
Indenture shall be the Notes specified in the Pricing Supplement. The Funding
Agreement designated hereby is the Funding Agreement designated in the Pricing
Supplement dated as of the Original Issue Date between the Trust and Principal
Life. The Guarantee designated hereby is the Guarantee dated as of the Original
Issue Date of PFG.

     Section 2.03 Additional Terms.

     None

     Section 2.04 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the Indenture will enter into the Indenture by executing
the Omnibus Instrument.

     By executing the Omnibus Instrument, the Indenture Trustee, the Registrar,
the Transfer Agent, the Paying Agent, the Calculation Agent and the Trust
hereby agree that the Indenture will constitute a legal, valid and binding
agreement between the Indenture Trustee, the Registrar, the Transfer Agent, the
Paying Agent, the Calculation Agent and the Trust.

     All terms relating to the Trust or the Notes not otherwise included in the
Indenture will be as specified in the Omnibus Instrument or Pricing Supplement,
as indicated herein.

     Section 2.05 Counterparts. The Indenture, through the Omnibus Instrument,
may be executed in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute one
and the same instrument.

[Remainder of Page Left Intentionally Blank.]

C-2

 

SECTION D

TERMS AGREEMENT

     This TERMS AGREEMENT (this “Terms Agreement”) is entered into as of the
Original Issue Date by and among Principal Life Insurance Company (“Principal
Life”), Principal Financial Group, Inc. (“PFG”), the Principal Life Income
Fundings Trust specified in the Omnibus Instrument (the “Trust”) and the
Purchasing Agent specified in the Pricing Supplement (the “Purchasing Agent”).

W I T N E S S E T H:

     WHEREAS, Principal Life, PFG and the agents named therein, including the
Purchasing Agent have entered into that certain Distribution Agreement dated
March 5, 2004 (the “Distribution Agreement”).

     NOW, THEREFORE, in consideration of the mutual promises set forth herein
and other good and valuable consideration, the sufficiency and receipt of which
are hereby acknowledged, each of the parties hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. The provisions of the
Distribution Agreement and the related definitions (unless otherwise specified
herein) are incorporated by reference herein and shall be deemed to have the
same force and effect as if set forth in full herein.

ARTICLE 2

     Section 2.01 Addition of Trust as Party to Distribution Agreement.

     Pursuant to Section 1 of the Distribution Agreement, each of the
undersigned parties hereby acknowledges and agrees that the Trust, upon
execution hereof by the Trust and the other parties to the Distribution
Agreement (other than any other trusts organized in connection with the
Registration Statement that are party thereto as of the date hereof), shall
become a Trust for purposes of the Distribution Agreement in accordance with
the terms thereof, in respect of the Notes, with all the authority, rights,
powers, duties and obligations of a Trust under the Distribution Agreement.
The Trust confirms that any agreement, covenant, acknowledgment, representation
or warranty under the Distribution Agreement applicable to the Trust is made by
the Trust at the date hereof, unless another time or times are specified in the
Distribution Agreement, in which case such agreement, covenant, acknowledgment,
representation or warranty shall be deemed to be confirmed by the Trust at such
specified time or times.

     Section 2.02 Purchase of Notes as Principal.

     (a) Subject in all respects to the terms and conditions of the
Distribution Agreement, the Trust hereby agrees to sell to the Purchasing Agent
and the Purchasing Agent hereby agrees to purchase the Notes having the terms
specified in the Pricing Supplement relating to such Notes.

D-1

 

     (b) In connection with any purchase of Notes from the Trust by the
Purchasing Agent as principal, the parties agrees that the items specified on
Schedule I of the Omnibus Instrument will be delivered as of the Settlement
Date.

     Section 2.03 Termination. Upon the termination of this Terms Agreement
pursuant to Section 13(b) of the Distribution Agreement the undersigned parties
hereby agree to that the expenses reasonably incurred prior to or in connection
with such termination will be borne by Principal Life and PFG.

     Section 2.04 Governing Law. This Terms Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard
to the principles of conflicts of laws thereof.

     Section 2.05 Notices. For purposes of Section 14 of the Distribution
Agreement, the Trust’s communications details are as set forth in Section E of
the Omnibus Instrument.

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to this Terms Agreement will enter into this Terms Agreement
by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, each party hereto agrees that this
Terms Agreement will constitute a legal, valid and binding agreement by and
among such parties.

     All terms relating to the Trust or the Notes not otherwise included in
this Terms Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement, as indicated herein.

     Section 2.07 Counterparts. This Terms Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Left Intentionally Blank.]

D-2

 

SECTION E

COORDINATION AGREEMENT

     This COORDINATION AGREEMENT (this “Coordination Agreement”), dated as of
the date of the Pricing Supplement, is entered into by and among Principal Life
Insurance Company (“Principal Life”), Principal Financial Group, Inc. (“PFG”),
the Principal Life Income Fundings Trust specified in the Omnibus Instrument
(the “Trust”), Principal Financial Services, Inc. (“PFSI”), Bankers Trust
Company, N.A. and Citibank, N.A., as indenture trustee (the “Indenture
Trustee”).

W I T N E S S E T H

     WHEREAS, the Trust will enter into the Funding Agreement with Principal
Life dated as of the Original Issue Date specified in the Pricing Supplement;

     WHEREAS, PFG will issue a Guarantee to the Trust as of the Original Issue
Date specified in the Pricing Supplement, which will fully and unconditionally
guarantee the payment obligations of Principal Life under the Funding
Agreement;

     WHEREAS, the Purchasing Agent (as defined in the Distribution Agreement)
have agreed to sell the Notes in accordance with the Registration Statement;

     WHEREAS, the Trust intends to issue the Notes in accordance with the
Indenture, to collaterally assign to, and grant a security interest in, the
Funding Agreement and the Guarantee to and in favor of the Indenture Trustee in
accordance with the Indenture to secure payment of the Notes;

     WHEREAS, the Custodian will hold the Funding Agreement and the Guarantee
on behalf of the Indenture Trustee pursuant to the terms of the Custodial
Agreement; and

     WHEREAS, certain licensing arrangements between the Trust and PFSI will be
governed pursuant to the provisions of the License Agreement.

     NOW, THEREFORE, to give effect to the agreements and arrangements
established under the Terms Agreement included in the Omnibus Instrument, as
applicable, the Trust Agreement, the Indenture and the Notes, and in
consideration of the agreements and obligations set forth herein and for other
good and valuable consideration, the sufficiency of which are hereby
acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Delivery of the Funding Agreement and the Guarantee. The
Trust hereby authorizes the Custodian, on behalf of the Indenture Trustee, to
receive the Funding Agreement from Principal Life and the Guarantee from PFG
pursuant to the assignment of the Funding Agreement and Guarantee (the
“Assignment”), to be entered into on the Original Issue Date, included in the
closing instrument dated as of the Original Issue Date (the “Closing
Instrument”).

E-1

 

     Section 1.02 Issuance and Purchase of the Notes.

     (a) Delivery of the Funding Agreement and the Guarantee to the Custodian,
on behalf of the Indenture Trustee, pursuant to the Assignment or execution of
the cross receipt contained in the Closing Instrument shall be confirmation of
payment by the Trust for the Funding Agreement.

     (b) The Trust hereby directs the Indenture Trustee, upon receipt by the
Custodian, on behalf of the Indenture Trustee, of the Funding Agreement
pursuant to the Assignment and upon receipt by the Custodian, on behalf of the
Indenture Trustee, of the Guarantee, (i) to authenticate the certificates
representing the Notes (the “Notes Certificates”) in accordance with the
Indenture and (ii) to (A) deliver each relevant Notes Certificate to the
clearing system or systems identified in each such Notes Certificate, or to the
nominee of such clearing system, or the custodian thereof, for credit to such
accounts as the Purchasing Agent may direct, or (B) deliver each relevant Notes
Certificate to the purchasers thereof as identified by the Purchasing Agent.

ARTICLE 2

     Section 2.01 Directions Regarding Periodic Payments. As registered owner
of the Funding Agreement and the Guarantee as collateral securing payments on
the Notes, the Indenture Trustee will receive payments on the Funding Agreement
and the Guarantee on behalf of the Trust. The Trust hereby directs the
Indenture Trustee to use such funds to make payments on behalf of the Trust
pursuant to the Trust Agreement and the Indenture.

     Section 2.02 Maturity of the Funding Agreement. Upon the maturity of the
Funding Agreement and the return of funds thereunder, the Trust hereby directs
the Indenture Trustee to set aside from such funds an amount sufficient for the
repayment of the outstanding principal on the Notes and Trust Beneficial
Interest when due.

ARTICLE 3

     Section 3.01 Certificates. Principal Life hereby agrees to deliver an
Officer’s Certificate, a copy of which is attached hereto as Exhibit E, on a
quarterly basis to any rating agency currently rating the Program. The Trust
hereby agrees to deliver an Officer’s Certificate, a copy of which is attached
hereto as Exhibit F, on a quarterly basis to any rating agency currently rating
the Program.

     Section 3.02 Filings. Principal Life hereby covenants to file, or cause
to be filed, in a timely manner on behalf of the Trust all reports,
certifications or similar filings required under the Securities Exchange Act of
1934, as amended.

ARTICLE 4

     Section 4.01 No Additional Liability. Nothing in this Coordination
Agreement shall impose any liability or obligation on the part of any party to
this Coordination Agreement to make any payment or disbursement in addition to
any liability or obligation such party has under the Program Documents, except
to the extent that a party has actually received funds which it is obligated to
disburse pursuant to this Coordination Agreement.

E-2

 

     Section 4.02 No Conflict. This Coordination Agreement is intended to be
in furtherance of the agreements reflected in the documents related to the
Program Documents, and not in conflict. To the extent that a provision of this
Coordination Agreement conflicts with the provisions of one or more Program
Documents, the provisions of such Program Documents shall govern.

     Section 4.03 Governing Law. This Coordination Agreement shall be governed
by and construed in accordance with the laws of the State of New York without
regard to the principles of conflicts of laws thereof.

     Section 4.04 Severability. If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

     Section 4.05 Severability. If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

     Section 4.06 Notices. All demands, notices and communications under this
Coordination Agreement shall be in writing and shall be deemed to have been
duly given upon receipt at the addresses set forth below:

	 	 	 
	To the Trust:
	 	 
	 
	

	 	Principal Life Income Fundings
Trust (followed by the number set forth in the Omnibus Instrument)
	

	 	c/o U.S. Bank Trust National Association
	

	 	100 Wall Street, 16th Floor
	

	 	New York, New York 10005
	

	 	Attention: Corporate Trust Administration
	

	 	Telephone: (212) 361-2458
	

	 	Facsimile: (212) 809-5459 and (212) 509-3384
	 
	To the Indenture Trustee:
	 	 
	 
	

	 	Citibank, N.A.
	

	 	Citibank Agency & Trust
	

	 	111 Wall Street, 14th Floor, Zone 3
	

	 	New York, New York 10005
	

	 	Attention: Nancy Forte
	

	 	Telephone: (212) 657-4703
	

	 	Facsimile: (212) 657-3862

E-3

 

	 	 	 
	To Principal Life:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011
	 
	 	 	With a copy to:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To PFG:

	 
	

	 	Principal Financial Group, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011
	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To Principal Financial
Services, Inc.:
	 	 
	 
	

	 	Principal Financial Services, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011

E-4

 

	 	 	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To Bankers Trust Company, N.A:
	 	 
	 
	

	 	Bankers Trust Company, N.A.
	

	 	665 Locust Street
	

	 	Des Moines, Iowa 50309-3702
	

	 	Attention: Angela C. Brick
	

	 	Telephone: (515) 245-2820
	

	 	Facsimile: (515) 247-2101

or at such other address as shall be designated by any such party in a written
notice to the other parties.

ARTICLE 5

     Section 5.01 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to this Coordination Agreement will enter into this
Coordination Agreement by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, each party hereto agrees that this
Coordination Agreement will constitute a legal, valid and binding agreement by
and among the Trust, Principal Life, PFG, PFSI, the Custodian and the Indenture
Trustee.

     All terms relating to the Trust or the Notes not otherwise included in
this Coordination Agreement will be as specified in the Omnibus Instrument or
Pricing Supplement, as indicated herein.

     Section 5.02 Acknowledgment. Principal Life hereby acknowledges Section
2.10 of the Indenture and Section 6.1 of the Custodial Agreement. The Trust
hereby acknowledges and agrees to the terms of the Custodial Agreement.

     Section 5.03 Counterparts. This Coordination Agreement, through the
Omnibus Instrument, may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

     Section 5.04 Capitalized Terms. All capitalized terms used herein and not
otherwise defined in this Coordination Agreement will have the meanings set
forth in the Indenture.

[Remainder of Page Left Intentionally Blank.]

E-5

 

SECTION F

MISCELLANEOUS AND EXECUTION PAGES

     This Omnibus Instrument may be executed by each of the parties hereto in any number of
counterparts, and by each of the parties hereto on separate counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

     Each signatory, by its execution hereof, does hereby become a party to each of the agreements
or indenture identified for such party as of the date specified in such agreements or indenture.

     IN WITNESS WHEREOF, the undersigned have executed this Omnibus Instrument with respect to the
Notes as of the date first written above.

	 	 	 	 	 
	 	PRINCIPAL LIFE INSURANCE COMPANY (in executing below agrees and becomes a party to (i) the Terms Agreement set forth in Section D herein and (ii) the Coordination Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ Christopher P. Freese
 	 
	 	 	Name:  	Christopher P. Freese 	 
	 	 	Title:  	Officer 	 
	 

	 	 	 	 	 
	 	PRINCIPAL FINANCIAL GROUP, INC. (in executing below agrees and becomes a party to (i) the Terms Agreement set forth in Section D herein and (ii) the Coordination Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ Elizabeth D. Swanson
 	 
	 	 	Name:  	Elizabeth D. Swanson 	 
	 	 	Title:  	Counsel 	 
	 

	 	 	 	 	 
	 	PRINCIPAL FINANCIAL SERVICES, INC. (in executing below agrees and becomes a party to (i) the License Agreement set forth in Section B herein and (ii) the Coordination Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ Elizabeth D. Swanson
 	 
	 	 	Name:  	Elizabeth D. Swanson 	 
	 	 	Title:  	Counsel 	 
	 

[Execution Page 1 of 3]

 

 

	 	 	 	 	 
	 	THE PRINCIPAL LIFE INCOME FUNDINGS TRUST DESIGNATED IN THIS OMNIBUS INSTRUMENT (in executing below agrees and becomes a party to (i) the License Agreement set forth in Section B herein, (ii) the Indenture set forth in Section C herein, (iii) the Terms Agreement set forth in Section D herein and (iv) the Coordination Agreement set forth in Section E herein)

By: U.S. Bank Trust National Association, not in its individual capacity but solely in its capacity as trustee of the Trust

 	 
	 	By:  	/s/ Jean Clarke
 	 
	 	 	Name:  	Jean Clarke 	 
	 	 	Title:  	Assistant Vice President 	 
	 

	 	 	 	 	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION (in executing below agrees and becomes a party to the Trust Agreement set forth in Section A herein), as Trustee

 	 
	 	By:  	/s/ Jean Clarke
 	 
	 	 	Name:  	Jean Clarke 	 
	 	 	Title:  	Assistant Vice President 	 
	 

	 	 	 	 	 
	 	GSS HOLDINGS II, INC. (in executing below agrees and becomes a party to the Trust Agreement set forth in Section A herein), as Trust Beneficial Owner

 	 
	 	By:  	/s/ Andrew L. Stidd
 	 
	 	 	Name:  	Andrew L. Stidd 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	CITIBANK, N.A. (in executing below agrees and becomes a party to (i) the Indenture set forth in Section C herein, as Indenture Trustee, Registrar, Transfer Agent, Paying Agent and Calculation Agent and (ii) the Coordination Agreement set forth in Section E herein), as Indenture Trustee, Registrar, Transfer Agent, Paying Agent and Calculation Agent

 	 
	 	By:  	/s/ Nancy Forte
 	 
	 	 	Name:  	Nancy Forte 	 
	 	 	Title:  	Assistant Vice President 	 
	 

[Execution Page 2 of 3]

 

 

	 	 	 	 	 
	 	BANKERS TRUST COMPANY, N.A. (in executing below agrees and becomes a party to the Coordination Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ Patty Ashbaugh
 	 
	 	 	Name:  	Patty Ashbaugh 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (in executing below agrees and becomes a party to the Terms Agreement set forth in Section D herein)

 	 
	 	By:  	/s/ Sabina Ceddia
 	 
	 	 	Name:  	Sabina Ceddia 	 
	 	 	Title:  	Duly Authorized Attorney 	 
	 

[Execution Page 3 of 3]

 

 

INDEX OF EXHIBITS AND SCHEDULES TO THE OMNIBUS INSTRUMENT

	 	 	 
	Exhibit A

	 	Standard Trust Terms – Incorporated herein by reference to Exhibit
4.6 to Principal Life Insurance Company’s and Principal Financial
Group, Inc.’s Registration Statement on Form S-3 (Registration
Nos. 333-110499 and 333-110499-01.
	 
	 	 
	Exhibit B

	 	Standard License Agreement Terms – Incorporated herein by
reference to Exhibit 99.1 to Principal Life Insurance Company’s
Current Report on Form 8-K, filed on March 29, 2004.
	 
	 	 
	Exhibit C

	 	Standard Indenture Terms – Incorporated herein by reference to
Exhibit 4.1 to Principal Life Insurance Company’s and Principal
Financial Group, Inc.’s Registration Statement on Form S-3
(Registration Nos. 333-110499 and 333-110499-01.
	 
	 	 
	Exhibit D

	 	Pricing Supplement – Incorporated herein by reference to the
Pricing Supplement with respect to Principal Life Income Fundings
Trust 2004-79, filed on December 22, 2004, with the Securities and
Exchange Commission pursuant to Rule 424(b)(5) under the
Securities Act of 1933, as amended.
	 
	 	 
	Exhibit E

	 	Principal Life Insurance Company Officer’s Certificate
	 
	 	 
	Exhibit F

	 	Principal Life Income Fundings Trusts Trustee Officer’s Certificate
	 
	 	 
	Schedule I

	 	Terms Agreement Specifications

 

 

EXHIBIT E

Principal Life Insurance Company

Officer’s Certificate

     The undersigned, an officer of Principal Life Insurance Company, an Iowa
stock life insurance company (“Principal Life”), does hereby certify to
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., in such capacity and on behalf of Principal Life, to the knowledge of the
undersigned and after reasonable inquiry, that:

	 	 	 
	1.

	 	each of the representations and warranties of Principal Life
contained in each Expense and Indemnity Agreement entered into in
connection with the Registration Statement (defined below), and each
Funding Agreement issued in connection with the Program (the
“Specified Agreements”) (other than any representation or warranty
expressly made as of a date prior to the date hereof) are true and
correct on and as of the date hereof, with the same effect as though
such representation or warranty had been made on and as of the date
hereof;
	 
	2.

	 	no default under any of the Specified Agreements and no event
or any condition which, with notice or lapse of time or both, would
become a default, has occurred and is continuing as of the date
hereof;
	 
	3.

	 	Principal Life has performed and complied with, respectively,
in all material respects, all of the agreements, covenants,
obligations and conditions applicable to Principal Life required by
the Specified Agreements to be performed or complied with by
Principal Life on or before the date hereof;
	 
	4.

	 	the Registration Statement filed on Form S-3 (File Nos.
333-110499 and 333-110499-01) (the “Registration Statement”) by
Principal Life and Principal Financial Group, Inc. has been declared
effective by the Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933, as amended (the
“Act”) and no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for that
purpose have been commenced by or are pending before or contemplated
by the Commission;
	 
	5.

	 	all filings, if any, required by Rule 424 and Rule 430A under
the Act have been made in a timely manner;
	 
	6.

	 	since
     , the Trusts organized in connection with the
program contemplated by the Registration Statement have issued the
following series of Notes:
	 
	

	 	[List each series of Notes.] [(collectively, the “Designated Notes”)]; and
	 
	7.

	 	the Funding Agreements issued in connection with the Designated
Notes have been executed and delivered by Principal Life in accordance
with the terms and conditions of the Program Documents.

E-1

 

          Capitalized terms used herein and not otherwise defined herein shall have the meanings set
forth in the Standard Indenture Terms attached as Exhibit 4.1 to the
Registration Statement.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the • day of •, 200•.

	 	 	 
	

	[Name], [in his/her] capacity as an
authorized officer of Principal Life
	 
	 	By:
	 
	 	 	

	

	 	Name:
	

	 	Title:

	 	 	 	 	 

E-2

 

EXHIBIT F

Principal Life Income Fundings Trusts

Trustee Officer’s Certificate

     U.S. Bank Trust National Association, not in its individual capacity but
solely in its capacity as trustee acting on behalf of each common law trust
organized under the laws of the State of New York (in such capacity, the
“Trustee,” and each such common law trust being referred to herein as, a
“Trust”) in connection with the program contemplated by Registration Statement
Nos. 333-110499 and 333-110499-01 filed on Form S-3 (the “Registration
Statement”) by Principal Life Insurance Company and Principal Financial Group,
Inc. with the Securities and Exchange Commission, does hereby certify to
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., in such capacity and on behalf of each Trust, to the knowledge of the
Trustee, that:

	 	 	 
	1.

	 	each of the representations and warranties of each Trust
contained in the Notes issued in connection with the Program, each
Indenture entered into in connection with the Registration Statement
and the Expense and Indemnity Agreement concerning the Trusts (the
“Specified Agreements”) (other than any representation or warranty
expressly made as of a date prior to the date hereof) are true and
correct on and as of the date hereof, with the same effect as though
such representation or warranty had been made on and as of the date
hereof;
	 
	2.

	 	no default under any of the Specified Agreements and no event
or any condition which, with notice or lapse of time or both, would
become a default, has occurred and is continuing as of the date
hereof;
	 
	3.

	 	each Trust has performed and complied with, respectively, in
all material respects, all of the agreements, covenants, obligations
and conditions applicable to such Trust required by the Specified
Agreements to be performed or complied with by such Trust on or
before the date hereof;
	 
	4.

	 	the Notes issued in connection with the Program, have been
issued, in all material respects, in accordance with the terms and
conditions of the Program Documents; and
	 
	5.

	 	each Funding Agreement has been executed and delivered by the
related Trust in accordance with the terms and conditions of the
Program Documents.

     Capitalized terms used herein and not otherwise defined herein shall have
the meanings set forth in the Standard Indenture Terms attached as Exhibit 4.1
to the Registration Statement. In no event shall U.S. Bank Trust National
Association in its personal corporate capacity have any liability for any of
the certifications or statements contained in this Trustee Officer’s
Certificate, such liability being solely that of each Trust.

F-1

 

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the • day of •, 200•.

	 	 	 
	

	 	U.S. Bank Trust National Association, not
in its capacity but solely in its capacity
as Trustee acting on behalf of each Trust
	 
	 	By:
	 
	 	 	

	

	 	Name:
	

	 	Title:

F-2

 

SCHEDULE I

Terms Agreement Specifications

     In connection with Section 3(a)(iv) of the Distribution Agreement, the
Program under which the Notes are issued is rated Aa2 by Moody’s Investors
Service, Inc. (“Moody’s”) and AA by Standard & Poor’s Rating Services, a
division of The McGraw-Hill Companies, Inc. (“S&P”). Principal Life and PFG
expect that the Notes will be rated Aa2 by Moody’s. The Company’s financial
strength rating is Aa2 by Moody’s and AA by S&P.

     In accordance with Section 2.02(b) of the Terms Agreement and in
connection with the purchase of Notes from the Trust by the Purchasing Agent as
principal, the following items will be delivered on the Settlement Date:

	 	•	 	Opinion of Sidley Austin Brown & Wood LLP regarding the
enforceability of the Guarantee and the Notes.

     All capitalized terms used herein and not otherwise defined herein will
have the meanings set forth in the Distribution Agreement.

I-1exv4w1

 

Exhibit 4.1

AMENDED AND RESTATED

CREDIT AGREEMENT

among

EAGLE MATERIALS INC.

(formerly Centex Construction Products, Inc.)

as Borrower,

JPMORGAN CHASE BANK, N.A.

(formerly known as JPMorgan Chase Bank and successor by merger to Bank One, N.A.),

as Administrative Agent and a Lender,

and

BANK OF AMERICA, N.A.

and

PNC BANK, N.A.,

as

Co–Syndication Agents

and Lenders

and

SUNTRUST BANK

and

WELLS FARGO BANK, N.A.

as Co–Documentation Agents

and a Lender

and

the other Lenders from time to time party hereto

16 December 2004

J.P. MORGAN SECURITIES INC.,

as Sole Bookrunner and Sole Lead Arranger

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page #

	ARTICLE I. DEFINITIONS
	 	 	1	 
	Section 1.01. Defined Terms
	 	 	1	 
	Section 1.02. Classification of Loans and Borrowings
	 	 	15	 
	Section 1.03. Terms Generally
	 	 	15	 
	Section 1.04. Accounting Terms; GAAP
	 	 	16	 
	ARTICLE II. THE CREDITS
	 	 	16	 
	Section 2.01. Commitments
	 	 	16	 
	Section 2.02. Loans and Borrowings
	 	 	16	 
	Section 2.03. Requests for Revolving Borrowings
	 	 	17	 
	Section 2.04. Swingline Loans
	 	 	17	 
	Section 2.05. Letters of Credit
	 	 	18	 
	Section 2.06. Funding of Borrowings
	 	 	22	 
	Section 2.07. Interest Elections
	 	 	23	 
	Section 2.08. Termination and Reduction of Commitments
	 	 	24	 
	Section 2.09. Repayment of Loans; Evidence of Debt
	 	 	24	 
	Section 2.10. Prepayment of Loans
	 	 	25	 
	Section 2.11. Fees
	 	 	25	 
	Section 2.12. Interest
	 	 	26	 
	Section 2.13. Alternate Rate of Interest
	 	 	27	 
	Section 2.14. Increased Costs
	 	 	27	 
	Section 2.15. Break Funding Payments
	 	 	28	 
	Section 2.16. Taxes
	 	 	29	 
	Section 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	30	 
	Section 2.18. Mitigation Obligations; Replacement of Lenders
	 	 	31	 
	Section 2.19. Increase of Revolving Commitments
	 	 	32	 
	ARTICLE III. REPRESENTATIONS AND WARRANTIES
	 	 	32	 
	Section 3.01. Organization; Powers
	 	 	32	 
	Section 3.02. Authorization; Enforceability
	 	 	33	 
	Section 3.03. Governmental Approvals; No Conflicts
	 	 	33	 
	Section 3.04. Financial Condition; No Material Adverse Change
	 	 	33	 
	Section 3.05. Properties
	 	 	33	 
	Section 3.06. Litigation and Environmental Matters
	 	 	34	 
	Section 3.07. Compliance with Laws and Agreements
	 	 	34	 
	Section 3.08. Investment and Holding Company Status
	 	 	34	 
	Section 3.09. Taxes
	 	 	34	 
	Section 3.10. ERISA
	 	 	34	 
	Section 3.11. Disclosure
	 	 	35	 
	Section 3.12. Subsidiaries
	 	 	35	 
	Section 3.13. Indebtedness
	 	 	35	 
	Section 3.14. Solvency
	 	 	35	 
	Section 3.15. Margin Securities
	 	 	35	 

TABLE OF CONTENTS, Page i of iii 

 

	 	 	 	 	 
	 	 	Page #

	ARTICLE IV. CONDITIONS
	 	 	36	 
	Section 4.01. Effective Date
	 	 	36	 
	Section 4.02. Each Credit Event
	 	 	37	 
	Section 4.03. Effective Date Adjustments
	 	 	37	 
	ARTICLE V. AFFIRMATIVE COVENANTS
	 	 	37	 
	Section 5.01. Financial Statements; Ratings Change and Other Information
	 	 	37	 
	Section 5.02. Notices of Material Events
	 	 	38	 
	Section 5.03. Existence; Conduct of Business
	 	 	39	 
	Section 5.04. Payment of Obligations
	 	 	39	 
	Section 5.05. Maintenance of Properties; Insurance
	 	 	39	 
	Section 5.06. Books and Records; Inspection Rights
	 	 	39	 
	Section 5.07. Compliance with Laws and Agreements
	 	 	39	 
	Section 5.08. Use of Proceeds
	 	 	40	 
	Section 5.09. Joinder of Subsidiaries to Subsidiary Guaranty
	 	 	40	 
	Section 5.10. Further Assurances
	 	 	40	 
	Section 5.11. Receivables Securitization
	 	 	40	 
	ARTICLE VI. NEGATIVE COVENANTS
	 	 	40	 
	Section 6.01. Indebtedness
	 	 	40	 
	Section 6.02. Liens
	 	 	42	 
	Section 6.03. Fundamental Changes; Sale of Assets
	 	 	43	 
	Section 6.04. Investments, Loans, Advances, Guaranties and Acquisitions
	 	 	44	 
	Section 6.05. Swap Agreements
	 	 	46	 
	Section 6.06. Restricted Payments; Prepayments of Indebtedness
	 	 	47	 
	Section 6.07. Transactions with Affiliates
	 	 	48	 
	Section 6.08. Restrictive Agreements
	 	 	48	 
	Section 6.09. Interest Coverage Ratio
	 	 	49	 
	Section 6.10. Leverage Ratio
	 	 	49	 
	Section 6.11. Sale and Lease-Back Transactions
	 	 	49	 
	ARTICLE VII. EVENTS OF DEFAULT
	 	 	49	 
	ARTICLE VIII. THE ADMINISTRATIVE AGENT
	 	 	51	 
	ARTICLE IX. MISCELLANEOUS
	 	 	53	 
	Section 9.01. Notices
	 	 	53	 
	Section 9.02. Waivers; Amendments
	 	 	54	 
	Section 9.03. Expenses; Indemnity; Damage Waiver
	 	 	54	 
	Section 9.04. Successors and Assigns
	 	 	56	 
	Section 9.05. Survival
	 	 	58	 
	Section 9.06. Counterparts; Integration; Effectiveness
	 	 	59	 
	Section 9.07. Severability
	 	 	59	 
	Section 9.08. Right of Setoff
	 	 	59	 
	Section 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	59	 
	Section 9.10. WAIVER OF JURY TRIAL
	 	 	60	 
	Section 9.11. Headings
	 	 	60	 
	Section 9.12. Confidentiality
	 	 	60	 

TABLE OF CONTENTS, Page ii of iii 

 

	 	 	 	 	 
	 	 	Page #

	Section 9.13. Maximum Interest Rate
	 	 	61	 
	Section 9.14. No Fiduciary Relationship
	 	 	62	 
	Section 9.15. Construction
	 	 	62	 
	Section 9.16. Independence of Covenants
	 	 	62	 
	Section 9.17. USA PATRIOT Act
	 	 	62	 

TABLE OF CONTENTS, Page iii of iii 

 

LIST OF SCHEDULES AND EXHIBITS

Schedules:

	 	 	 	 	 
	Schedule 1.01(a)

	 	–
	 	Existing Letters of Credit
	Schedule 2.01

	 	–
	 	Commitments
	Schedule 3.05

	 	–
	 	Existing Liens
	Schedule 3.06

	 	–
	 	Disclosed Matters
	Schedule 3.12

	 	–
	 	Subsidiaries
	Schedule 3.13

	 	–
	 	Existing Indebtedness
	Schedule 6.04

	 	–
	 	Existing Investments
	Schedule 6.08

	 	–
	 	Existing Restrictions

Exhibits:

	 	 	 	 	 
	Exhibit A

	 	–
	 	Form of Assignment and Assumption
	Exhibit B

	 	–
	 	Form of Opinion of Borrower’s Counsel
	Exhibit C

	 	–
	 	Form of Guaranty Agreement
	Exhibit D

	 	–
	 	Form of Notice of Borrowing
	Exhibit E

	 	–
	 	Form of Increased Commitment Supplement

LIST OF SCHEDULES AND EXHIBITS, Solo Page

 

 

     AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) dated as of
December 16, 2004, among EAGLE MATERIALS INC. (formerly know as Centex
Construction Products, Inc.) as the Borrower, the LENDERS party hereto, and
JPMORGAN CHASE BANK, N.A. (formerly known as JPMorgan Chase Bank and successor
by merger to Bank One, N.A.), as Administrative Agent.

     Centex Construction Products, Inc. (who is now known as the Borrower), the
lenders identified therein named and JPMorgan Chase Bank (who is now known as
JPMorgan Chase Bank, N.A.) as administrative agent previously entered into that
certain Credit Agreement dated as of December 18, 2003 (as the same has been
amended by that certain First Amendment to Credit Agreement dated May 21, 2004,
herein referred to as the “Prior Agreement”).

     Since the date of the Prior Agreement:

     (a) JPMorgan Chase Bank changed its name to JPMorgan Chase Bank, N.A.;

     (b) Bank One, N.A., a lender under the Prior Agreement, merged with and
into JPMorgan Chase Bank; and

     (c) Calyon New York Branch (formerly Credit Lyonnais New York Branch)
assigned to JPMorgan Chase Bank, N.A. all of its right, title and interest in
and to the Prior Agreement.

     The Borrower, the lenders party hereto and the Administrative Agent now
desire to enter into this Agreement to amend and restate the Prior Agreement in
its entirety and agree as follows:

ARTICLE I.

Definitions

     Section 1.01. Defined Terms. As used in this Agreement, the following
terms have the meanings specified below:

          “ABR”, when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are bearing interest at a
rate determined by reference to the Alternate Base Rate.

          “Acquisition” means any transaction, or any series of related
transactions, by which the Borrower or any of the Subsidiaries (i) acquires any
going business or all or substantially all of the assets of any Person or
division or business unit thereof, whether through purchase of assets, merger
or otherwise or (ii) directly or indirectly acquires (in one transaction or as
the most recent transaction in a series of transactions) 50% or more (in number
of votes) of the Equity Interests of a Person having ordinary voting power for
the election of the board of directors or other applicable governing body
(other than securities having such power only by reason of the happening of a
contingency) or 50% or more (by percentage or voting power) of the outstanding
Equity Interests of a partnership or limited liability company.

          “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for
any Interest Period, an interest rate per annum (rounded upwards, if necessary,
to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period
multiplied by (b) the Statutory Reserve Rate.

          “Adjusted Net Income” has the meaning assigned to such term in the
definition of the term “Consolidated EBITDA”.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 1

 

          “Administrative Agent” means JPMorgan Chase Bank, N.A. (formerly known as
JPMorgan Chase Bank) in its capacity as administrative agent for the Lenders
hereunder.

          “Administrative Questionnaire” means an Administrative Questionnaire in a
form supplied by the Administrative Agent.

          “Affiliate” means, with respect to a specified Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.

          “Alternate Base Rate” means, for any day, a rate per annum equal to the
greatest of (a) the Prime Rate in effect on such day, and (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

          “Applicable Percentage” means, with respect to any Lender, the percentage
of the total Commitments represented by such Lender’s Commitment. If the
Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to
any assignments.

          “Applicable Rate” means, for any day, with respect to any ABR Loan or
Eurodollar Revolving Loan, or with respect to the commitment fees payable
hereunder, as the case may be, the applicable rate per annum set forth below
under the caption “ABR Spread”, “Eurodollar Spread” or “Commitment Fee Rate”,
as the case may be, opposite the category in the table below which corresponds
with the actual Leverage Ratio as of the most recent determination date;
provided that from and including the Effective Date until the first date that
the Applicable Rate is determined as set forth below in this definition, the
“Applicable Rate” shall be the applicable rate per annum set forth below in
Category 2:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Eurodollar	 	 	 	 	 	Commitment
	Leverage Ratio
	 	Spread
	 	ABR Spread
	 	Fee Rate

	Category 1
< 1.00 to 1.00
	 	 	0.875
	%	 	 	0.000	%	 	 	0.175	%
	Category 2
3  1.00 to 1.00
but
< 1.50 to 1.00
	 	 	1.125	%	 	 	0.125	%	 	 	0.200	%
	Category 3
3 1.50 to 1.00
but
< 2.00 to 1.00
	 	 	1.375	%	 	 	0.375	%	 	 	0.250	%
	Category 4
3 2.00 to 1.00
	 	 	1.625	%	 	 	0.625	%	 	 	0.300	%

          For purposes of the foregoing, (i) the Leverage Ratio shall be determined
as of the end of each fiscal quarter of the Borrower’s fiscal year based upon
the Borrower’s consolidated financial statements delivered pursuant to Section
5.01(a) or (b), beginning with the fiscal quarter ended December 31, 2004 and
(ii) each change in the Applicable Rate resulting from a change in the Leverage
Ratio shall be effective during the period commencing on and including the date
of delivery to the Administrative Agent of such consolidated financial
statements indicating such change and ending on the date immediately preceding
the effective date of the next such change; provided that the Leverage Ratio
shall be deemed to be in Category 4: (A) at any time that an Event of Default
has occurred and is continuing or (B) at the option of the Administrative Agent
or at the request of the Required Lenders, if the Borrower fails to deliver
the consolidated financial statements required to be delivered by it pursuant

AMENDED AND RESTATED CREDIT AGREEMENT, Page 2

 

to Section 5.01(a) or (b), during the period from the expiration of the
time for delivery thereof until such consolidated financial statements are
delivered.

          “Approved Fund” has the meaning assigned to such term in Section
9.04(b)(ii)(D).

          “Assignment and Assumption” means an Assignment and Assumption entered
into by a Lender and an assignee (with the consent of any party whose consent
is required by Section 9.04), and accepted by the Administrative Agent, in the
form of Exhibit A or any other form approved by the Administrative Agent.

          “Availability Period” means the period from and including the Effective
Date to but excluding the earlier of the Maturity Date and the date of
termination of the Commitments.

          “Board” means the Board of Governors of the Federal Reserve System of the
United States of America.

          “Borrower” means Eagle Materials Inc. (formerly Centex Construction
Products, Inc.).

          “Borrowing” means (a) Revolving Loans of the same Type, made, converted or
continued on the same date and, in the case of Eurodollar Loans, as to which a
single Interest Period is in effect or (b) a Swingline Loan.

          “Borrowing Request” means a request by the Borrower for a Revolving
Borrowing in accordance with Section 2.03 and in substantially the form of
Exhibit D hereto.

          “Business Day” means any day that is not a Saturday, Sunday or other day
on which commercial banks in Dallas, Texas and New York, New York are
authorized or required by law to remain closed; provided that, when used in
connection with a Eurodollar Loan, the term “Business Day” shall also exclude
any day on which banks are not open for dealings in dollar deposits in the
London interbank market.

          “Capital Lease Obligations” of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination
thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in
accordance with GAAP.

          “Cash Collateral Account” has the meaning assigned to such term in Section
2.05(j).

          “Change in Control” means (a) the acquisition by any party, or two or more
parties acting in concert, of beneficial ownership (within the meaning of Rule
13d-3 of the Securities and Exchange Commission under the Securities Exchange
Act of 1934) of 50% or more of the outstanding shares of the stock of the
Borrower entitled to elect 50% or more of the members of the board of directors
of the Borrower, or (b) during any period of twelve (12) consecutive months, a
majority of the members of the board of directors or other equivalent governing
body of the Borrower cease to be composed of individuals (i) who were members
of that board or equivalent governing body on the first day of such period,
(ii) whose election or nomination to that board or equivalent governing body
was approved by individuals referred to in clause (i) above constituting at the
time of such election or nomination at least a majority of that board or
equivalent governing body, or (iii) whose election or nomination to that board
or other equivalent governing body was approved by individuals referred to in
clauses (i) and (ii) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body
(excluding, in the case of both clause (ii) and clause (iii), any individual
whose initial

AMENDED AND RESTATED CREDIT AGREEMENT, Page 3

 

nomination for, or assumption of office as, a member of that board or
equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more
directors by any Person or group other than a solicitation for the election of
one or more directors by or on behalf of the board of directors).

          “Change in Law” means (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender or any Issuing
Bank (or, for purposes of Section 2.14(b), by any lending office of such Lender
or by such Lender’s or an Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

          “Class”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans
or Swingline Loans.

          “Code” means the Internal Revenue Code of 1986, as amended from time to
time.

          “Commitment” means, with respect to each Lender, the commitment of such
Lender to make Revolving Loans and to acquire participations in Letters of
Credit and Swingline Loans hereunder, expressed as an amount representing the
maximum aggregate amount of such Lender’s Revolving Credit Exposure hereunder,
as such commitment may be (a) reduced from time to time pursuant to Section
2.08; (b) reduced or increased from time to time pursuant to assignments by or
to such Lender pursuant to Section 9.04; and (c) increased from time to time
pursuant to Section 2.19. The initial amount of each Lender’s Commitment is
set forth on Schedule 2.01 or in the Assignment and Assumption pursuant to
which such Lender shall have assumed its Commitment. The initial aggregate
amount of the Lenders’ Commitments is $350,000,000.00.

          “Consolidated EBIT” means, for any period, the sum of Consolidated EBITDA
for such period minus depreciation and amortization for such period, all
calculated for the Borrower and the Subsidiaries on a consolidated basis.

          “Consolidated EBITDA” means, with respect to any Person and any period,
the sum of the following calculated for such Person on a consolidated basis:

          (a) the total of: (i) its Consolidated Net Income minus; (ii) the income
(or plus the loss) of any third party (other than a subsidiary of the Person)
in which the Person or a subsidiary of such Person has an ownership interest;
plus (iii) the income of any such third party to the extent actually received
in cash by the Person or a subsidiary of such Person in the form of dividends
or similar distributions (the amount determined in accordance with this clause
(a), herein the “Adjusted Net Income”); plus

          (b) to the extent deducted from revenues in determining Adjusted Net
Income: (i) its Consolidated Interest Expense; (ii) expense for taxes paid or
accrued; (iii) depreciation; (iv) amortization; and (v) extraordinary non-cash
losses incurred other than in the ordinary course of business; minus

          (c) to the extent included in its Adjusted Net Income, extraordinary,
nonrecurring or other nonoperating income or gains.

Notwithstanding anything herein to the contrary, but without duplication, the
Borrower’s Consolidated EBITDA for any period shall: (i) include, to the extent
the following can be determined from audited financial statements delivered to
the Administrative Agent and to the extent not already included in the

AMENDED AND RESTATED CREDIT AGREEMENT, Page 4

 

Borrower’s Consolidated EBITDA for such period: (a) in the case of an
Acquisition of Equity Interests in a Person, the Consolidated EBITDA of such
Person for the portion of the calculation period before it became a Subsidiary
and (b) in the case of an Acquisition of assets, the Consolidated EBITDA
associated with such acquired assets for the portion of the calculation period
before such acquisition by the Borrower or any Subsidiary and (ii) exclude: (a)
in the case of a disposition of Equity Interests in a Person, the Consolidated
EBITDA of such Person for the portion of the calculation period after it is
directly or indirectly disposed of and (b) in the case of a disposition of
assets, the Consolidated EBITDA associated with such assets for the portion of
the calculation period after such assets were disposed of.

          “Consolidated Indebtedness” means, at any time, the Indebtedness of the
Borrower and the Subsidiaries calculated on a consolidated basis as of such
time, excluding however, any Indebtedness under Swap Agreements that is not
then due.

          “Consolidated Interest Expense” means, with reference to any period and
any Person, the interest expense and preferred stock dividends of such Person
calculated on a consolidated basis for such period.

          “Consolidated Net Income” means, with reference to any period and any
Person, the net income (or loss) of such Person calculated on a consolidated
basis for such period.

          “Consolidated Net Worth” means, at any time, the consolidated
stockholders’ equity of the Borrower and the Subsidiaries calculated on a
consolidated basis as of such time.

          “Consolidated Tangible Net Worth” means, at any time, the Consolidated Net
Worth, minus (a) any intangible assets, including, without limitation, patents,
patent rights, trademarks, trade names, franchises, copyrights, goodwill, and
other similar intangible assets of the Borrower and the Subsidiaries calculated
on a consolidated basis as of such time, minus (b) any non-cash gain (or plus
any non-cash loss, as applicable) resulting from any mark-to-market adjustments
made directly to Consolidated Net Worth as a result of fluctuations in the
value of financial instruments owned by the Borrower or any of the Subsidiaries
as mandated under Financial Accounting Standards Board Statement 133.

          “Control” means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person,
whether through the ability to exercise voting power, by contract or otherwise.
“Controlling” and “Controlled” have meanings correlative thereto.

          “Default” means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

          “Disclosed Matters” means the actions, suits and proceedings and the
environmental matters disclosed in Schedule 3.06.

          “dollars” or “$” refers to lawful money of the United States of America.

          “Effective Date” means the date on which the conditions specified in
Section 4.01 are satisfied (or waived in accordance with Section 9.02).

          “Environmental Laws” means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 5

 

          “Environmental Liability” means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation,
fines, penalties or indemnities), of the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

          “Equity Interests” means shares of capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a Person, and any warrants,
options or other rights entitling the holder thereof to purchase or acquire any
such equity interest.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

          “ERISA Affiliate” means any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043
of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived); (b) the existence
with respect to any Plan of an “accumulated funding deficiency” (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c)
the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of
an application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g)
the receipt by the Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of
any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA.

          “Eurodollar”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Adjusted LIBO Rate.

          “Event of Default” has the meaning assigned to such term in Article VII.

          “Excluded Taxes” means, with respect to the Administrative Agent, any
Lender, any Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of the Borrower hereunder, (a) income or franchise
taxes imposed on (or measured by) its net income by the United States of
America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which the Borrower is located and (c) in
the case of a Foreign Lender (other than an assignee pursuant to a request by
the Borrower under Section 2.18(b)), any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party to

AMENDED AND RESTATED CREDIT AGREEMENT, Page 6

 

this Agreement (or designates a new lending office) or is attributable to
such Foreign Lender’s failure to comply with Section 2.16(e), except to the
extent that such Foreign Lender (or its assignor, if any) was entitled, at the
time of designation of a new lending office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax
pursuant to Section 2.16(a).

          “Existing Letters of Credit” shall mean the letters of credit which are
“Letters of Credit” under the Prior Agreement, which are outstanding on the
Effective Date and are listed on Schedule 1.01(a) hereto.

          “Federal Funds Effective Rate” means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

          “Financial Officer” means the chief financial officer, principal
accounting officer, treasurer or controller of the Borrower.

          “Foreign Lender” means any Lender that is organized under the laws of a
jurisdiction other than that in which the Borrower is located. For purposes of
this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

          “GAAP” means generally accepted accounting principles in the United States
of America.

          “Governmental Authority” means the government of the United States of
America, any other nation or any political subdivision thereof, whether state
or local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

          “Guaranty” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guarantying or having the economic
effect of guarantying any Indebtedness or other obligation (including any
obligation under an operating lease) of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of the guarantor, direct or indirect, (a) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation or to purchase (or to advance or supply funds for the purchase
of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation (including any obligation under an operating
lease) of the payment thereof, (c) to maintain working capital, equity capital
or any other financial statement condition or liquidity of the primary obligor
so as to enable the primary obligor to pay such Indebtedness or other
obligation or (d) as an account party in respect of any letter of credit or
letter of guaranty issued to support such Indebtedness or obligation; provided,
that the term Guaranty shall not include endorsements for collection or deposit
in the ordinary course of business.

          “Guarantor” means any Subsidiary of the Borrower who is a guarantor under
the Subsidiary Guaranty as required by Section 5.09.

          “Hazardous Materials” means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates,

AMENDED AND RESTATED CREDIT AGREEMENT, Page 7

 

asbestos or asbestos containing materials, polychlorinated biphenyls,
radon gas, infectious or medical wastes and all other substances or wastes of
any nature regulated pursuant to any Environmental Law.

          “Indebtedness” of any Person means, without duplication, (a) all
obligations of such Person for borrowed money; (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments; (c) all
obligations of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person; (d) all obligations of
such Person in respect of the deferred purchase price of property or services
(excluding current accounts payable incurred in the ordinary course of business
and payable on customary trade terms); (e) all Indebtedness of others secured
by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed; (f) all Guaranties by such Person; (g) all Capital Lease
Obligations of such Person; (h) all obligations, contingent or otherwise, of
such Person as an account party in respect of letters of credit; (i) all
obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances; (j) all obligations of such Person in respect of mandatory
redemption or mandatory dividend rights on Equity Interests but excluding
dividends payable solely in additional Equity Interests; (k) all obligations of
such Person, contingent or otherwise, for the payment of money under any
noncompete, consulting or similar agreement entered into with the seller of a
target or any other similar arrangements providing for the deferred payment of
the purchase price for an Acquisition permitted hereby or an Acquisition
consummated prior to the date hereof; (l) all obligations of such Person under
any Swap Agreement; (m) all Limited Recourse Liabilities of such Person; (n)
all obligations of such Person to purchase securities or other property arising
out of or in connection with the sale of the same or substantially similar
securities or property; and (o) any other obligation for borrowed money or
other financial accommodation which in accordance with GAAP would be shown as a
liability on the consolidated balance sheet of such Person. The Indebtedness
of any Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such
Person is liable therefor as a result of such Person’s ownership interest in or
other relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor. For purposes of
the forgoing sentence and as of the Effective Date, “any other entity” when
considered with respect to any Subsidiary that is a general partner of a Joint
Venture, shall include the applicable Joint Venture. The amount of the
obligations of any Person in respect of any Swap Agreement shall, at any time
of determination and for all purposes under this Agreement, be the maximum
aggregate amount (giving effect to any netting agreements) that such Person
would be required to pay if such Swap Agreement were terminated at such time
giving effect to current market conditions notwithstanding any contrary
treatment in accordance with GAAP.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Information Memorandum” means the Confidential Information Memorandum
dated November 2004 relating to the Borrower and the Transactions.

          “Interest Election Request” means a request by the Borrower to convert or
continue a Revolving Borrowing in accordance with Section 2.07.

          “Interest Payment Date” means (a) with respect to any ABR Loan (other than
a Swingline Loan), the last day of each March, June, September and December,
(b) with respect to any Eurodollar Loan, the last day of the Interest Period
applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurodollar Borrowing with an Interest Period of more than three months’
duration, each day prior to the last day of such Interest Period that occurs at
intervals of three months’ duration after the first day of such Interest
Period, and (c) with respect to any Swingline Loan, the day that such Loan is
required to be repaid.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 8

 

          “Interest Period” means with respect to any Eurodollar Borrowing, a period
of one week or one, two, three or six months commencing on a Business Day
selected by the Borrower pursuant to this Agreement or the Prior Agreement. A
weekly Interest Period shall end on the day of the next following week which
corresponds to the day of the week on which such Interest Period began,
however, if such Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day. A
monthly Interest Period shall end on the day which corresponds numerically to
such date one, two, three or six months thereafter, as the Borrower may elect,
however: (i) if any monthly Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the immediately
preceding Business Day and (ii) any monthly Interest Period that commences on
the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period. For purposes hereof, the date of a Borrowing initially shall
be the date on which such Borrowing is made and, in the case of a Revolving
Borrowing, thereafter shall be the effective date of the most recent conversion
or continuation of such Borrowing.

          “Issuing Bank” means JPMorgan Chase Bank, N.A. (formerly known as JPMorgan
Chase Bank and successor by merger to Bank One, N.A.) in its capacity as the
issuer of Letters of Credit, and its successors or predecessors in such
capacity. JPMorgan Chase Bank, N.A. may, in its discretion, arrange for one
or more Letters of Credit to be issued by its Affiliates, in which case the
term “Issuing Bank” shall include any such Affiliate with respect to Letters of
Credit issued by such Affiliate.

          “Joint Venture” means Illinois Cement Company and Texas–Lehigh Cement
Company, L.P.

          “LC Disbursement” means a payment made by an Issuing Bank pursuant to a
Letter of Credit.

          “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit at such time plus (b) the aggregate
amount of all LC Disbursements that have not yet been reimbursed by or on
behalf of the Borrower at such time. The LC Exposure of any Lender at any time
shall be its Applicable Percentage of the total LC Exposure at such time.

          “Lenders” means the Persons listed on Schedule 2.01 and any other Person
that shall have become a party hereto pursuant to an Assignment and Assumption
or Increase Commitment Supplement, other than any such Person that ceases to be
a party hereto pursuant to an Assignment and Assumption. Unless the context
otherwise requires, the term “Lenders” includes the Swingline Lender.

          “Letter of Credit” means any letter of credit issued pursuant to this
Agreement and any Existing Letter of Credit.

          “Leverage Ratio” means, as of any date, the ratio of Consolidated
Indebtedness to Consolidated EBITDA then most recently calculated in accordance
with Section 6.10.

          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on Page 3750 of the Dow Jones Market
Service (or on any successor or substitute page of such Service, or any
successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as
determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the
London interbank market) at approximately 11:00 A.M., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such

AMENDED AND RESTATED CREDIT AGREEMENT, Page 9

 

Interest Period. In the event that such rate is not available at such
time for any reason, then the “LIBO Rate” with respect to such Eurodollar
Borrowing for such Interest Period shall be the rate at which dollar deposits
of $5,000,000 and for a maturity comparable to such Interest Period are offered
by the principal London office of the Administrative Agent in immediately
available funds in the London interbank market at approximately 11:00 A.M.,
London time, two Business Days prior to the commencement of such Interest
Period.

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust,
lien, pledge, hypothecation, encumbrance, charge or security interest in, on or
of such asset, (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of securities, any purchase option,
call or similar right of a third party with respect to such securities.

          “Limited Recourse Liability” of a Person means (i) any repurchase
obligation or liability of such Person with respect to accounts or notes
receivable sold by such Person, (ii) any liability under any sale and leaseback
transaction which is not characterized as a Capital Lease Obligation, (iii) any
liability under any Synthetic Lease entered into by such Person, (iv) any
obligation or liability arising with respect to any sale or transfer of an
interest in accounts receivable of the Borrower or any Subsidiary on a limited
recourse basis, or (v) any obligation for which such Person is liable arising
with respect to any other transaction which is the functional equivalent of or
takes the place of borrowing but which does not constitute a liability on the
balance sheet of such Person, but excluding from this clause (v) any lease
classified as an operating lease in accordance with GAAP.

          “Loans” means the loans made by the Lenders to the Borrower pursuant to
this Agreement or pursuant to the Prior Agreement which are outstanding on the
Effective Date.

          “Loan Documents” means this Agreement, any notes executed pursuant hereto,
the Subsidiary Guaranty and all other documentation now or hereafter executed
and/or delivered by Borrower or any Guarantor in connection with any of the
foregoing.

          “Material Adverse Effect” means any event, development or circumstance
that has had or could reasonably be expected to have a material adverse effect
on (a) the business, property, financial condition or results of operation of
the Borrower and the Subsidiaries taken as a whole; (b) the ability of the
Borrower and the Subsidiaries (taken as a whole) to perform their respective
obligations under the Loan Documents; or (c) the validity or enforceability of
any of the Loan Documents or the rights or remedies of the Administrative Agent
and the Lenders thereunder.

          “Material Indebtedness” means Indebtedness (other than the Loans and
Letters of Credit), or obligations in respect of one or more Swap Agreements,
of any one or more of the Borrower and the Subsidiaries in an aggregate
principal or notional amount, respectively, exceeding $2,500,000.

          “Material Subsidiary” means, as of any date of determination, any
Subsidiary whose: (i) total assets are, at that date, equal to or greater than
15% of the Borrower’s consolidated total assets; or (ii) Consolidated EBITDA
for the 12 completed months immediately prior to the date of determination is
equal to or greater than 15% of the Borrower’s Consolidated EBITDA for such
period.

          “Maturity Date” means December 16, 2009.

          “Moody’s” means Moody’s Investors Service, Inc.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 10

 

          “Multiemployer Plan” means a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

          “New Lender” has the meaning specified in Section 2.19.

          “New Material Subsidiary” has the meaning set forth in Section 5.09.

          “Non-Guarantor Amount” has the meaning set forth in clause (c) of Section
6.01.

          “Non-Guarantor Subsidiary” means a Subsidiary that is not a Guarantor.

          “Other Taxes” means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made hereunder or from the execution, delivery or enforcement
of, or otherwise with respect to, this Agreement.

          “Participant” has the meaning set forth in Section 9.04(c)(i).

          “PBGC” means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar functions.

          “Permitted Encumbrances” means:

     (a) Liens created pursuant to the terms of the Loan
Documents;

     (b) Liens imposed by law for taxes, assessments or
governmental charges or levies that are not yet due or are being
contested in compliance with Section 5.04;

     (c) carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s and other like Liens imposed by law, arising in the
ordinary course of business and securing obligations that are not
overdue by more than 60 days or are being contested in compliance
with Section 5.04;

     (d) pledges and deposits made in the ordinary course of
business in compliance with workers’ compensation, unemployment
insurance and other social security, retirement or similar laws or
regulations;

     (e) judgment liens in respect of judgments that do not
constitute an Event of Default under clause (k) of Article VII;

     (f) easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the
ordinary course of business or of a nature generally existing with
respect to properties of a similar character, in each case that do
not secure any monetary obligations and do not materially detract
from the value of the affected property or interfere with the
ordinary conduct of business of the Borrower or any Subsidiary;
and

     (g) liens arising from filing UCC financing statements
regarding leases permitted by this Agreement.

          “Permitted Investments” means:

     (a) direct obligations of, or obligations the principal of
and interest on which are unconditionally guarantied by, the
United States of America (or by any agency

AMENDED AND RESTATED CREDIT AGREEMENT, Page 11

 

thereof to the extent such obligations are backed by the full
faith and credit of the United States of America), in each case
maturing within one year from the date of acquisition thereof;

     (b) investments in commercial paper maturing within 270 days
from the date of acquisition thereof and having, at such date of
acquisition, a credit rating of at least A–1 from S&P or at least
P–1 from Moody’s;

     (c) investments in certificates of deposit, banker’s
acceptances and time deposits maturing within 180 days from the
date of acquisition thereof issued or guarantied by or placed
with, and money market deposit accounts issued or offered by, any
domestic office of any commercial bank organized under the laws of
the United States of America or any State thereof which has a
combined capital and surplus and undivided profits of not less
than $500,000,000;

     (d) fully collateralized repurchase agreements with a term of
not more than 30 days for securities described in clause (a) above
and entered into with a financial institution satisfying the
criteria described in clause (c) above;

     (e) money market funds that (i) comply with the criteria set
forth in Securities and Exchange Commission Rule 2a-7 under the
Investment Company Act of 1940, (ii) are rated at least A- by S&P
and A3 by Moody’s and (iii) have portfolio assets of at least
$5,000,000,000;

     (f) any Equity Interests, evidences of indebtedness or other
securities (including any option, warrant or other right to
acquire any of the forgoing) representing the noncash portion of
the sales price of any assets disposed of under the permissions of
Section 6.03(c)(iv); provided that the related disposition was
consummated in accordance with the limitations in Section 6.03;
and

     (g) any Equity Interest, evidences of indebtedness or other
securities (including any option, warrant or other right to
acquire any of the forgoing) received in connection the bankruptcy
or reorganization of, or settlement of delinquent accounts and
disputes with, customers and suppliers, in each case in the
ordinary course of business.

          “Person” means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership, Governmental Authority
or other entity.

          “Plan” means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower
or any ERISA Affiliate is (or, if such plan were terminated, would under
Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5)
of ERISA.

          “Prime Rate” means the rate of interest per annum publicly announced from
time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its
principal office in New York, New York; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as
being effective.

          “Prior Agreement” has the meaning set forth in the introduction to this
Agreement.

          “Purchase Price” has the meaning set forth in Section 6.04(h)(v).

AMENDED AND RESTATED CREDIT AGREEMENT, Page 12

 

          “Receivable Financing Amount” means the aggregate amount of all loans and
advances to, receivables due from, capital contributions to or guaranties of
the obligations of, a special purpose bankruptcy remote entity; provided that
for such a loan, advance, receivable, capital contribution or guaranty (each a
“SPV Investments”) to be included in the Receivable Financing Amount, the
following conditions must be satisfied:

     (a) The SPV Investment must be made in connection with a
Receivable Securitization Financing otherwise permitted hereby;

     (b) The special purpose bankruptcy remote entity must be the
special purpose entity utilized in connection with the Receivable
Securitization Financing;

     (c) The aggregate amount of the SPV Investments made with
respect to any one Receivable Securitization Financing may not
exceed the aggregate amount of the receivables transferred in the
securitization;

     (d) The SPV Investment, if a loan, advance, or receivable,
may only be made in consideration for receivables transferred in
the securitization to evidence the consideration given by the
special purpose entity in return therefor;

     (e) The SPV Investment, if a capital contribution, may only
be made with receivables, or as a discounted sale of receivables,
to be transferred in the securitization;

     (f) If the SPV Investment is a guaranty, such guaranty shall
be non-recourse to the Borrower or the applicable Subsidiary and
their respective assets except the beneficiary of the guaranty may
have recourse to the Borrower’s or the applicable Subsidiary’s
interests in the receivables transferred in the securitization;
and

     (g) The SPV Investment must not otherwise impair the limited
recourse or true sale nature of the Receivable Securitization
Financing.

          “Receivable Securitization Financings” 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
limited recourse basis in a transaction treated as a legal true sale to a
special purpose bankruptcy remote entity who obtains debt financing or sells
interests in such receivables to finance the purchase price.

          “Register” has the meaning set forth in Section 9.04(b)(iv).

          “Related Parties” means, with respect to any specified Person, such
Person’s Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person’s Affiliates.

          “Required Lenders” means, at any time, Lenders having Revolving Credit
Exposures and unused Commitments representing at least 51% of the sum of the
total Revolving Credit Exposures and unused Commitments at such time.

          “Restricted Payment” means any dividend or other distribution (whether in
cash, securities or other property) with respect to any Equity Interests in the
Borrower or any Subsidiary, or any payment (whether in cash, securities or
other property), including any sinking fund or similar deposit, on account of
the purchase, redemption, retirement, acquisition, cancellation or termination
of any Equity

AMENDED AND RESTATED CREDIT AGREEMENT, Page 13

 

Interest in the Borrower or any option, warrant or other right to acquire
any such Equity Interest in the Borrower.

          “Revolving Credit Exposure” means, with respect to any Lender at any time,
the sum of the outstanding principal amount of such Lender’s Revolving Loans
and its LC Exposure and Swingline Exposure at such time.

          “Revolving Loan” means a Loan made pursuant to Section 2.03 or made
pursuant to Section 2.03 of the Prior Agreement and outstanding on the
Effective Date.

          “S&P” means Standard & Poor’s.

          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject for
eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in
Regulation D of the Board). Such reserve percentages shall include those
imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to
constitute eurocurrency funding and to be subject to such reserve requirements
without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under such Regulation D or any
comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

          “subsidiary” means, with respect to any Person (the “parent”) at any date,
any corporation, limited liability company, partnership, association or other
entity of which securities or other ownership interests representing more than
50% of the equity or more than 50% of the ordinary voting power or, in the case
of a partnership, more than 50% of the general partnership interests are, as of
such date, owned, Controlled or held, by the parent or one or more subsidiaries
of the parent or by the parent and one or more subsidiaries of the parent.

          “Subsidiary” means any subsidiary of the Borrower. As of the Effective
Date, neither Illinois Cement Company nor Texas–Lehigh Cement Company, L.P. is
a Subsidiary and as a result, nothing in this Agreement shall prohibit or
otherwise restrict: (i) the creation, incurrence or assumption by either
Illinois Cement Company or Texas–Lehigh Cement Company, L.P. of any
Indebtedness of any kind (except to the extent that the Indebtedness of a Joint
Venture may be limited by the fact that the Indebtedness of a Subsidiary that
is its general partner, if any, may be limited hereby) or (ii) the creation,
incurrence or assumption by either Illinois Cement Company or Texas–Lehigh
Cement Company, L.P. of any Liens on any of its properties or assets.

          “Subsidiary Guaranty” means that certain Amended and Restated Guaranty
Agreement dated the date hereof executed by certain of the Subsidiaries,
substantially in the form of Exhibit C hereto.

          “Substantial Portion” has the meaning set forth in Section 6.03(c).

          “Swap Agreement” means any agreement with respect to any swap, forward,
future or derivative transaction or option or similar agreement involving, or
settled by reference to, one or more rates, currencies, commodities, equity or
debt instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services
provided by current or former directors, officers, employees or consultants of
the Borrower or the Subsidiaries shall be a Swap Agreement.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 14

 

          “Swingline Exposure” means, at any time, the aggregate principal amount of
all Swingline Loans outstanding at such time. The Swingline Exposure of any
Lender at any time shall be its Applicable Percentage of the total Swingline
Exposure at such time.

          “Swingline Lender” means JPMorgan Chase Bank, N.A. (formerly known as
JPMorgan Chase Bank) in its capacity as lender of Swingline Loans hereunder.

          “Swingline Loan” means a Loan made pursuant to Section 2.04.

          “Synthetic Lease” means a lease (i) that is treated as an operating lease
under GAAP and (ii) (a) in respect of which the leased asset is treated as
owned by the lessee for purposes of the Code and/or (b) that is treated as a
loan to the lessee for commercial law or insolvency law purposes.

          “Taxes” means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

          “Transactions” means the execution, delivery and performance by the
Borrower of this Agreement, the borrowing of Loans, the use of the proceeds
thereof, the execution, delivery and performance by each Guarantor of the
Subsidiary Guaranty and the issuance of Letters of Credit hereunder.

          “Type”, when used in reference to any Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing,
is determined by reference to the Adjusted LIBO Rate or the Alternate Base
Rate.

          “Withdrawal Liability” means liability to a Multiemployer Plan as a result
of a complete or partial withdrawal from such Multiemployer Plan, as such terms
are defined in Part I of Subtitle E of Title IV of ERISA.

     Section 1.02. Classification of Loans and Borrowings. For purposes of
this Agreement, Loans may be classified and referred to by Class (e.g., a
“Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type
(e.g., a “Eurodollar Revolving Loan”). Borrowings also may be classified and
referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a
“Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving
Borrowing”).

     Section 1.03. Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. 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”. The word
“will” shall be construed to have the same meaning and effect as the word
“shall”. Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth
herein), (b) any reference herein to any Person shall be construed to include
such Person’s successors and assigns, (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 15

 

     Section 1.04. Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.

ARTICLE II.

The Credits

     Section 2.01. Commitments. Subject to the terms and conditions set forth
herein, each Lender agrees to make Revolving Loans to the Borrower from time to
time during the Availability Period in an aggregate principal amount that will
not result in (a) such Lender’s Revolving Credit Exposure exceeding such
Lender’s Commitment or (b) the total Revolving Credit Exposures exceeding the
total Commitments. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow
Revolving Loans.

     Section 2.02. Loans and Borrowings.

          (a) Each Revolving Loan shall be made as part of a Borrowing consisting of
Revolving Loans made by the Lenders ratably in accordance with their respective
Commitments. The failure of any Lender to make any Loan required to be made by
it shall not relieve any other Lender of its obligations hereunder; provided
that the Commitments of the Lenders are several and no Lender shall be
responsible for any other Lender’s failure to make Loans as required.

          (b) Subject to Section 2.13, each Revolving Borrowing shall be comprised
entirely of ABR Loans or Eurodollar Loans as the Borrower may request in
accordance herewith. Each Swingline Loan shall be an ABR Loan. Each Lender at
its option may make any Eurodollar Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan; provided that any
exercise of such option shall not affect the obligation of the Borrower to
repay such Loan in accordance with the terms of this Agreement.

          (c) At the commencement of each Interest Period for any Eurodollar
Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an
integral multiple of $100,000 and not less than $1,000,000. At the time that
each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $100,000 and not less than $1,000,000;
provided that an ABR Revolving Borrowing may be in an aggregate amount that is
equal to the entire unused balance of the total Commitments or that is required
to finance the reimbursement of an LC Disbursement as contemplated by Section
2.05(e). Each Swingline Loan shall be in an amount that is an integral
multiple of $100,000 and not less than $100,000. Borrowings of more than one
Type and Class may be outstanding at the same time; provided that there shall
not at any time be more than a total of 6 Eurodollar Revolving Borrowings
outstanding.

          (d) Notwithstanding any other provision of this Agreement, the Borrower
shall not be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after
the Maturity Date.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 16

 

     Section 2.03. Requests for Revolving Borrowings. To request a Revolving
Borrowing, the Borrower shall notify the Administrative Agent of such request
by telephone (a) in the case of a Eurodollar Borrowing, not later than 10:00
A.M., Dallas, Texas time, three Business Days before the date of the proposed
Borrowing or (b) in the case of an ABR Borrowing, not later than 10:00 A.M.,
Dallas, Texas time, one Business Day before the date of the proposed Borrowing;
provided that any such notice of an ABR Revolving Borrowing to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.05(e) may be
given not later than 9:00 A.M., Dallas, Texas time, on the date of the proposed
Borrowing. Each such telephonic Borrowing Request shall be irrevocable and
shall be confirmed promptly by hand delivery or telecopy to the Administrative
Agent of a written Borrowing Request in a form approved by the Administrative
Agent and signed by the Borrower. Each such telephonic and written Borrowing
Request shall specify the following information in compliance with Section
2.02:

               (i) the aggregate amount of the requested Borrowing;

               (ii) the date of such Borrowing, which shall be a Business Day;

               (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing;

               (iv) in the case of a Eurodollar Borrowing, the initial Interest Period to
be applicable thereto, which shall be a period contemplated by the definition
of the term “Interest Period”; and

               (v) the location and number of the Borrower’s account to which funds are
to be disbursed, which shall comply with the requirements of Section 2.06.

If no election as to the Type of Revolving Borrowing is specified, then the
requested Revolving Borrowing shall be an ABR Borrowing. If no Interest Period
is specified with respect to any requested Eurodollar Revolving Borrowing, then
the Borrower shall be deemed to have selected an Interest Period of one month’s
duration. Promptly following receipt of a Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender’s Loan to be made as part of the
requested Borrowing.

     Section 2.04. Swingline Loans.

          (a) Subject to the terms and conditions set forth herein, the Swingline
Lender agrees to make Swingline Loans to the Borrower from time to time during
the Availability Period, in an aggregate principal amount at any time
outstanding that will not result in (i) the aggregate principal amount of
outstanding Swingline Loans exceeding $15,000,000 or (ii) the total Revolving
Credit Exposures exceeding the total Commitments; provided that the Swingline
Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Loan. Within the foregoing limits and subject to the
terms and conditions set forth herein, the Borrower may borrow, prepay and
reborrow Swingline Loans.

          (b) To request a Swingline Loan, the Borrower shall notify the
Administrative Agent of such request by telephone (confirmed by telecopy), not
later than 1:00 P.M., Dallas, Texas time, on the day of a proposed Swingline
Loan. Each such notice shall be irrevocable and shall specify the requested
date (which shall be a Business Day) and amount of the requested Swingline
Loan. The Administrative Agent will promptly advise the Swingline Lender of
any such notice received from the Borrower. The Swingline Lender shall make
each Swingline Loan available to the Borrower by means of a credit to the
general deposit account of the Borrower with the Swingline Lender (or, in the
case of a Swingline Loan

AMENDED AND RESTATED CREDIT AGREEMENT, Page 17

 

made to finance the reimbursement of an LC Disbursement as provided in
Section 2.05(e), by remittance to an Issuing Bank) by 12:00 P.M., Dallas, Texas
time, on the requested date of such Swingline Loan.

          (c) The Swingline Lender may by written notice given to the Administrative
Agent not later than 11:00 A.M., Dallas, Texas time, on any Business Day
require the Lenders to acquire participations on such Business Day in all or a
portion of the Swingline Loans outstanding. Such notice shall specify the
aggregate amount of Swingline Loans in which Lenders will participate.
Promptly upon receipt of such notice, the Administrative Agent will give notice
thereof to each Lender, specifying in such notice such Lender’s Applicable
Percentage of such Swingline Loan or Loans. Each Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the
Administrative Agent, for the account of the Swingline Lender, such Lender’s
Applicable Percentage of such Swingline Loan or Loans excluding however, any
such Swingline Loan or Loans made by the Swingline Lender after it received
from any Lender a notice that any applicable condition precedent set forth in
Section 4.02 had not then been satisfied. Each Lender acknowledges and agrees
that, except as set forth in the immediately preceding sentence, its obligation
to acquire participations in Swingline Loans pursuant to this paragraph is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including the occurrence and continuance of a Default or reduction
or termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever. Each
Lender shall comply with its obligation under this paragraph by wire transfer
of immediately available funds, in the same manner as provided in Section 2.06
with respect to Loans made by such Lender (and Section 2.06 shall apply,
mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so
received by it from the Lenders. The Administrative Agent shall notify the
Borrower of any participations in any Swingline Loan acquired pursuant to this
paragraph, and thereafter payments in respect of such Swingline Loan shall be
made to the Administrative Agent and not to the Swingline Lender. Any amounts
received by the Swingline Lender from the Borrower (or other party on behalf of
the Borrower) in respect of a Swingline Loan after receipt by the Swingline
Lender of the proceeds of a sale of participations therein shall be promptly
remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to
the Lenders that shall have made their payments pursuant to this paragraph and
to the Swingline Lender, as their interests may appear; provided that any such
payment so remitted shall be repaid to the Swingline Lender or to the
Administrative Agent, as applicable, if and to the extent such payment is
required to be refunded to the Borrower for any reason. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve
the Borrower of any default in the payment thereof.

     Section 2.05. Letters of Credit.

          (a) General. The Borrower may request the issuance of standby and
commercial Letters of Credit for its own account, in a form reasonably
acceptable to the Administrative Agent and JPMorgan Chase Bank, N.A. and may
request the amendment, renewal and extension of outstanding Letters of Credit.
Subject to the terms and conditions set forth in this Agreement and at any time
and from time to time during the Availability Period, at the Borrower’s
request, JPMorgan Chase Bank, N.A. agrees to issue Letters of Credit. In the
event of any inconsistency between the terms and conditions of this Agreement
and the terms and conditions of any form of letter of credit application or
other agreement submitted by the Borrower to, or entered into by the Borrower
with, an Issuing Bank relating to any Letter of Credit, the terms and
conditions of this Agreement shall control.

          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.
To request the issuance of a Letter of Credit (or the amendment, renewal or
extension of an outstanding Letter of Credit), the Borrower shall hand deliver
or telecopy (or transmit by electronic communication, if arrangements for doing
so have been approved by the applicable Issuing Bank) to the applicable Issuing

AMENDED AND RESTATED CREDIT AGREEMENT, Page 18

 

Bank and the Administrative Agent (reasonably in advance of the requested
date of issuance, amendment, renewal or extension) a notice requesting the
issuance of a Letter of Credit, or identifying the Letter of Credit to be
amended, renewed or extended, and specifying the date of issuance, amendment,
renewal or extension (which shall be a Business Day), the date on which such
Letter of Credit is to expire (which shall comply with paragraph (c) of this
Section), the amount of such Letter of Credit, the name and address of the
beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit. If requested by the
applicable Issuing Bank, the Borrower also shall submit a letter of credit
application on such Issuing Bank’s standard form in connection with any request
for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed
or extended only if (and upon issuance, amendment, renewal or extension of each
Letter of Credit the Borrower shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or extension (i) the
LC Exposure shall not exceed $25,000,000 and (ii) the total Revolving Credit
Exposures shall not exceed the total Commitments.

          (c) Expiration Date; Collateralization of Extended Term Letters of Credit.
Each Letter of Credit shall expire at or prior to the close of business on the
earlier of (i) the date one year after the date of the issuance of such Letter
of Credit (or, in the case of any renewal or extension thereof, one year after
such renewal or extension) and (ii) the date that is six months after the
Maturity Date; provided however, that with respect to each Letter of Credit
with an expiry date beyond the Maturity Date, the Borrower shall pledge to the
Administrative Agent cash collateral in the amount, at the time and in the
manner provided for in Section 2.05(j).

          (d) Participations. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) or on the
Effective Date with respect to the Existing Letters of Credit, and without any
further action on the part of an Issuing Bank or the Lenders, the applicable
Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from
the applicable Issuing Bank, a participation in such Letter of Credit equal to
such Lender’s Applicable Percentage of the aggregate amount available to be
drawn under such Letter of Credit. In consideration and in furtherance of the
foregoing, each Lender hereby absolutely and unconditionally agrees to pay to
the Administrative Agent, for the account of the applicable Issuing Bank, such
Lender’s Applicable Percentage of each LC Disbursement made by an Issuing Bank
and not reimbursed by the Borrower on the date due as provided in paragraph (e)
of this Section, or of any reimbursement payment required to be refunded to the
Borrower for any reason; provided that a Lender shall not be obligated to pay
to the Administrative Agent the Applicable Percentage of any LC Disbursement if
the Letter of Credit under which such LC Disbursement was made was issued by
the Issuing Bank after it received from any Lender a notice that any applicable
condition precedent set forth in Section 4.02 had not then been satisfied. .
Each Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.

          (e) Reimbursement. If an Issuing Bank shall make any LC Disbursement in
respect of a Letter of Credit, the Borrower shall reimburse such LC
Disbursement by paying to the Administrative Agent an amount equal to such LC
Disbursement not later than 11:00 A.M., Dallas, Texas time, on the date that
such LC Disbursement is made, if the Borrower shall have received notice of
such LC Disbursement prior to 9:00 A.M., Dallas, Texas time, on such date, or,
if such notice has not been received by the Borrower prior to such time on such
date, then not later than 11:00 A.M., Dallas, Texas time, on (i) the Business
Day that the Borrower receives such notice, if such notice is received prior to
9:00 A.M., Dallas, Texas time, on the day of receipt, or (ii) the Business Day
immediately following the day that the Borrower receives such notice, if such
notice is not received prior to such time on the day of

AMENDED AND RESTATED CREDIT AGREEMENT, Page 19

 

receipt; provided that the Borrower may, subject to the conditions to
borrowing set forth herein, request in accordance with Section 2.03 or 2.04
that such payment be financed with an ABR Revolving Borrowing or Swingline Loan
in an equivalent amount and, to the extent so financed, the Borrower’s
obligation to make such payment shall be discharged and replaced by the
resulting ABR Revolving Borrowing or Swingline Loan. If the Borrower fails to
make such payment when due, the Administrative Agent shall notify each Lender
of the applicable LC Disbursement, the payment then due from the Borrower in
respect thereof and such Lender’s Applicable Percentage thereof. Promptly
following receipt of such notice, each Lender shall pay to the Administrative
Agent its Applicable Percentage of the payment then due from the Borrower, in
the same manner as provided in Section 2.06 with respect to Loans made by such
Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment
obligations of the Lenders), and the Administrative Agent shall promptly pay to
the applicable Issuing Bank the amounts so received by it from the Lenders.
Promptly following receipt by the Administrative Agent of any payment from the
Borrower pursuant to this paragraph, the Administrative Agent shall distribute
such payment to the applicable Issuing Bank or, to the extent that Lenders have
made payments pursuant to this paragraph to reimburse the applicable Issuing
Bank, then to such Lenders and the applicable Issuing Bank as their interests
may appear. Any payment made by a Lender pursuant to this paragraph to
reimburse an Issuing Bank for any LC Disbursement (other than the funding of
ABR Revolving Loans or a Swingline Loan as contemplated above) shall not
constitute a Loan and shall not relieve the Borrower of its obligation to
reimburse such LC Disbursement.

          (f) Obligations Absolute. The Borrower’s obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by an Issuing Bank under a Letter of
Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section, constitute a legal or equitable
discharge of, or provide a right of setoff against, the Borrower’s obligations
hereunder. Neither the Administrative Agent, the Lenders nor any Issuing Bank,
nor any of their Related Parties, shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of
Credit or any payment or failure to make any payment thereunder (irrespective
of any of the circumstances referred to in the preceding sentence), or any
error, omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond
the control of an Issuing Bank; provided that the foregoing shall not be
construed to excuse an Issuing Bank from liability to the Borrower to the
extent of any direct damages (as opposed to consequential damages, claims in
respect of which are hereby waived by the Borrower to the extent permitted by
applicable law) suffered by the Borrower that are caused by (i) an Issuing
Bank’s failure to exercise care when determining whether drafts and other
documents presented under a Letter of Credit comply with the terms thereof or
(ii) an Issuing Bank’s failure to pay under any Letter of Credit after the
presentation to it of drafts or other documents strictly complying with the
terms and conditions of such Letter of Credit. The parties hereto expressly
agree that, in the absence of gross negligence or willful misconduct on the
part of an Issuing Bank (as finally determined by a court of competent
jurisdiction), the Issuing Bank shall be deemed to have exercised care in each
such determination referred to in clause (i) of the preceding sentence. In
furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented which appear on their
face to be in substantial compliance with the terms of a Letter of Credit, an
Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further

AMENDED AND RESTATED CREDIT AGREEMENT, Page 20

 

investigation, regardless of any notice or information to the contrary, or
refuse to accept and make payment upon such documents if such documents are not
in strict compliance with the terms of such Letter of Credit.

          (g) Disbursement Procedures. An Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit. The Issuing Bank under such Letter of Credit
shall promptly notify the Administrative Agent and the Borrower by telephone
(confirmed by telecopy) of such demand for payment, including the amount
thereof and the proposed payment date, and whether it has made or will make an
LC Disbursement thereunder; provided that any failure to give or delay in
giving such notice shall not relieve the Borrower of its obligation to
reimburse the applicable Issuing Bank and the Lenders with respect to any such
LC Disbursement.

          (h) Interim Interest. If an Issuing Bank shall make any LC Disbursement,
then, unless the Borrower shall reimburse such LC Disbursement in full on the
date such LC Disbursement is made, the unpaid amount thereof shall bear
interest, for each day from and including the date such LC Disbursement is made
to but excluding the date that the Borrower reimburses such LC Disbursement, at
the rate per annum then applicable to ABR Revolving Loans; provided that, if
the Borrower fails to reimburse such LC Disbursement when due pursuant to
paragraph (e) of this Section, then Section 2.12(e) shall apply. Interest
accrued pursuant to this paragraph shall be for the account of the applicable
Issuing Bank, except that interest accrued on and after the date of payment by
any Lender pursuant to paragraph (e) of this Section to reimburse an Issuing
Bank shall be for the account of such Lender to the extent of such payment.

          (i) Replacement of the Issuing Bank. JPMorgan Chase Bank, N.A. may be
replaced as an Issuing Bank hereunder at any time by written agreement among
the Borrower, the Administrative Agent, JPMorgan Chase Bank, N.A. and the
successor. The Administrative Agent shall notify the Lenders of any such
replacement of JPMorgan Chase Bank, N.A. At the time any such replacement
shall become effective, the Borrower shall pay all unpaid fees accrued for the
account of JPMorgan Chase Bank, N.A. in its capacity as the replaced Issuing
Bank pursuant to Section 2.11(b). From and after the effective date of any
such replacement, (i) the successor shall have all the rights and obligations
of an Issuing Bank under this Agreement with respect to Letters of Credit to be
issued thereafter and (ii) references herein to the term “Issuing Bank” shall
be deemed to refer to such successor or to any previous Issuing Bank, or to
such successor and all previous Issuing Banks, as the context shall require.
After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank
shall remain a party hereto and shall continue to have all the rights and
obligations of an Issuing Bank under this Agreement with respect to Letters of
Credit issued by it prior to such replacement, but shall not be required to
issue additional Letters of Credit.

          (j) Cash Collateralization. If any Event of Default shall occur and be
continuing, on the Business Day that the Borrower receives notice from the
Administrative Agent or the Required Lenders demanding the deposit of cash
collateral pursuant to this paragraph, the Borrower shall deposit in an account
with the Administrative Agent, in the name of the Administrative Agent and for
the benefit of the Lenders (the “Cash Collateral Account”), an amount in cash
equal to the LC Exposure as of such date plus any accrued and unpaid interest
thereon; provided that the obligation to deposit such cash collateral shall
become effective immediately, and such deposit shall become immediately due and
payable, without demand or other notice of any kind, upon the occurrence of any
Event of Default with respect to the Borrower described in clause (h) or (i) of
Article VII. If the Borrower is required to deposit cash collateral pursuant
to Section 2.10(b) because the Revolving Credit Exposures exceed the total
Commitments, the Borrower shall deposit cash collateral in the Cash Collateral
Account in an aggregate amount equal to such excess plus any accrued and unpaid
interest thereon. If the Borrower is required to

AMENDED AND RESTATED CREDIT AGREEMENT, Page 21

 

pledge cash collateral pursuant to clause (c) of this Section, then on or
before the date 30 days prior to the Maturity Date, the Borrower shall deposit
in the Cash Collateral Account an amount in cash equal to the aggregate LC
Exposure for all Letters of Credit that have expiry dates past the Maturity
Date plus any accrued and unpaid interest thereon. The deposits made under
this paragraph shall be held by the Administrative Agent as collateral for the
payment and performance of the obligations of the Borrower under this
Agreement. The Administrative Agent shall have exclusive dominion and control,
including the exclusive right of withdrawal, over the Cash Collateral Account.
Other than any interest earned on the investment of such deposits, which
investments shall be made at the option and sole discretion of the
Administrative Agent and at the Borrower’s risk and expense, such deposits
shall not bear interest. Interest or profits, if any, on such investments
shall accumulate in the Cash Collateral Account. Money in the Cash Collateral
Account shall be applied by the Administrative Agent to reimburse the Issuing
Banks for LC Disbursements for which they have not been reimbursed and, to the
extent not so applied, shall be held for the satisfaction of the reimbursement
obligations of the Borrower for the LC Exposure at such time or, if the
maturity of the Loans has been accelerated, be applied to satisfy other
obligations of the Borrower and the Subsidiaries under the Loan Documents and
under the Swap Agreements entered into with a Lender or Affiliate of a Lender.
If the Borrower is required to provide an amount of cash collateral hereunder
as a result of the occurrence of an Event of Default, such amount (to the
extent not applied as aforesaid) shall be returned to the Borrower within three
Business Days after all Events of Default have been cured or waived. If the
Borrower is required to provide an amount of cash collateral hereunder to
secure Letters of Credit with expiry dates beyond the Maturity Date, such
amount (to the extent not applied as aforesaid) shall be returned to the
Borrower within three Business Days after the Letter of Credit with the latest
expiry date has expired if as of such date no further Letters of Credit are
outstanding and all LC Disbursements have been reimbursed. If the Borrower is
required to provide an amount of cash collateral hereunder as a result of the
fact that the Revolving Credit Exposure exceeds the total Commitments, such
amount (to the extent not applied as aforesaid) shall be returned to the
Borrower within three Business Days after the date when the Revolving Credit
Exposures no longer exceed the total Commitments.

     Section 2.06. Funding of Borrowings.

          (a) Each Lender shall make each Loan to be made by it hereunder on the
proposed date thereof by wire transfer of immediately available funds by 11:00
A.M., Dallas, Texas time, to the account of the Administrative Agent most
recently designated by it for such purpose by notice to the Lenders; provided
that Swingline Loans shall be made as provided in Section 2.04. The
Administrative Agent will make such Loans available to the Borrower by promptly
crediting the amounts so received, in like funds, to an account of the Borrower
maintained with the Administrative Agent in Dallas, Texas and designated by the
Borrower in the applicable Borrowing Request; provided that ABR Revolving Loans
made to finance the reimbursement of an LC Disbursement as provided in Section
2.05(e) shall be remitted by the Administrative Agent to the applicable Issuing
Bank.

          (b) Unless the Administrative Agent shall have received notice from a
Lender prior to the proposed date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its
share of the applicable Borrowing available to the Administrative Agent, then
the applicable Lender and the Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to the Borrower to but excluding the date of payment to the
Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank

AMENDED AND RESTATED CREDIT AGREEMENT, Page 22

 

compensation or (ii) in the case of the Borrower, the interest rate
applicable to ABR Loans. If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender’s Loan included in such
Borrowing.

     Section 2.07. Interest Elections.

          (a) Each Revolving Borrowing initially shall be of the Type specified in
the applicable Borrowing Request and, in the case of a Eurodollar Revolving
Borrowing, shall have an initial Interest Period as specified in such Borrowing
Request. Thereafter, the Borrower may elect to convert such Borrowing to a
different Type or to continue such Borrowing and, in the case of a Eurodollar
Revolving Borrowing, may elect Interest Periods therefor, all as provided in
this Section. The Borrower may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Swingline Borrowings,
which may not be converted or continued.

          (b) To make an election pursuant to this Section, the Borrower shall
notify the Administrative Agent of such election by telephone by the time that
a Borrowing Request would be required under Section 2.03 if the Borrower were
requesting a Revolving Borrowing of the Type resulting from such election to be
made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election
Request in a form approved by the Administrative Agent and signed by the
Borrower.

          (c) Each telephonic and written Interest Election Request shall specify
the following information in compliance with Section 2.02:

               (i) the Borrowing to which such Interest Election Request applies and, if
different options are being elected with respect to different portions thereof,
the portions thereof to be allocated to each resulting Borrowing (in which case
the information to be specified pursuant to clauses (iii) and (iv) below shall
be specified for each resulting Borrowing);

               (ii) the effective date of the election made pursuant to such Interest
Election Request, which shall be a Business Day;

               (iii) whether the resulting Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing; and

               (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest
Period to be applicable thereto after giving effect to such election, which
shall be a period contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the Borrower shall be deemed to have
selected an Interest Period of one month’s duration.

          (d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of
such Lender’s portion of each resulting Borrowing.

          (e) If the Borrower fails to deliver a timely Interest Election Request
with respect to a Eurodollar Revolving Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be

AMENDED AND RESTATED CREDIT AGREEMENT, Page 23

 

converted to an ABR Borrowing. Notwithstanding any contrary provision
hereof, if an Event of Default has occurred and is continuing and the
Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower, then, so long as an Event of Default is continuing (i) no outstanding
Revolving Borrowing may be converted to or continued as a Eurodollar Borrowing
and (ii) unless repaid, each Eurodollar Revolving Borrowing shall be converted
to an ABR Borrowing at the end of the Interest Period applicable thereto.

     Section 2.08. Termination and Reduction of Commitments.

          (a) Unless previously terminated, the Commitments shall terminate on the
Maturity Date.

          (b) The Borrower may at any time terminate, or from time to time reduce,
the Commitments; provided that (i) each reduction of the Commitments shall be
in an amount that is an integral multiple of $5,000,000 and not less than
$5,000,000 and (ii) the Borrower shall not terminate or reduce the Commitments
if, after giving effect to any concurrent prepayment of the Loans in accordance
with Section 2.10, the Revolving Credit Exposures would exceed the total
Commitments.

          (c) The Borrower shall notify the Administrative Agent of any election to
terminate or reduce the Commitments under paragraph (b) of this Section at
least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower
pursuant to this Section shall be irrevocable; provided that a notice of
termination of the Commitments delivered by the Borrower may state that such
notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Borrower (by notice to the
Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Any termination or reduction of the Commitments
shall be permanent. Each reduction of the Commitments shall be made ratably
among the Lenders in accordance with their respective Commitments.

     Section 2.09. Repayment of Loans; Evidence of Debt.

          (a) The Borrower hereby unconditionally promises to pay (i) to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Revolving Loan on the Maturity Date and (ii) to the Swingline
Lender the then unpaid principal amount of each Swingline Loan on the earlier
of the Maturity Date and the first date after such Swingline Loan is made that
is the 15th or last day of a calendar month and is at least two Business Days
after such Swingline Loan is made; provided that on each date that a Revolving
Borrowing is made, the Borrower shall repay all Swingline Loans then
outstanding.

          (b) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder.

          (c) The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of each Loan made hereunder, the Class and Type thereof
and the Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 24

 

          (d) The entries made in the accounts maintained pursuant to paragraph (b)
or (c) of this Section shall be prima facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay
the Loans in accordance with the terms of this Agreement.

          (e) Any Lender may request that Loans made by it be evidenced by a
promissory note. In such event, the Borrower shall prepare, execute and
deliver to such Lender a promissory note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered assigns)
and in a form approved by the Administrative Agent. Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.04) be represented by one or
more promissory notes in such form payable to the order of the payee named
therein (or, if such promissory note is a registered note, to such payee and
its registered assigns).

     Section 2.10. Prepayment of Loans.

          (a) The Borrower shall have the right at any time and from time to time to
prepay any Borrowing, in whole or in part without premium or penalty except as
provided in Section 2.15, subject to prior notice in accordance with paragraph
(c) of this Section. Each optional prepayment of the Loans shall be in an
amount that is an integral multiple of $100,000 and not less than $1,000,000.

          (b) In the event and on such occasion that the Revolving Credit Exposures
exceed the total Commitments, the Borrower shall prepay Revolving Borrowings or
Swingline Borrowings (or, if no such Borrowings are outstanding, deposit cash
collateral in the Cash Collateral Account pursuant to Section 2.05(j)) in an
aggregate amount equal to such excess.

          (c) The Borrower shall notify the Administrative Agent (and, in the case
of prepayment of a Swingline Loan, the Swingline Lender) by telephone
(confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Revolving Borrowing, not later than 10:00 A.M.,
Dallas, Texas time, three Business Days before the date of prepayment, (ii) in
the case of prepayment of an ABR Revolving Borrowing, not later than 10:00
A.M., Dallas, Texas time, one Business Day before the date of prepayment or
(iii) in the case of prepayment of a Swingline Loan, not later than 11:00 A.M.,
Dallas, Texas time, on the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date and the principal amount of
each Borrowing or portion thereof to be prepaid; provided that, if a notice of
prepayment is given in connection with a conditional notice of termination of
the Commitments as contemplated by Section 2.08, then such notice of prepayment
may be revoked if such notice of termination is revoked in accordance with
Section 2.08. Promptly following receipt of any such notice relating to a
Revolving Borrowing, the Administrative Agent shall advise the Lenders of the
contents thereof. Each partial prepayment of any Revolving Borrowing shall be
in an amount that would be permitted in the case of an advance of a Revolving
Borrowing of the same Type as provided in Section 2.02. Each prepayment of a
Revolving Borrowing shall be applied ratably to the Loans included in the
prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the
extent required by Section 2.12.

     Section 2.11. Fees.

          (a) The Borrower agrees to pay to the Administrative Agent for the account
of each Lender a commitment fee, which shall accrue at the Applicable Rate on
the daily amount of the unused Commitment of such Lender during the
Availability Period. Accrued commitment fees shall be payable in arrears on
the last day of March, June, September and December of each year and on the
date on which the Commitments terminate, commencing on the first such date to
occur after the date hereof. All

AMENDED AND RESTATED CREDIT AGREEMENT, Page 25

 

commitment fees shall be computed on the basis of a year of 360 days and
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day). For purposes of computing commitment fees, a
Commitment of a Lender shall be deemed to be used to the extent of the
outstanding Loans and LC Exposure of such Lender (and the Swingline Exposure of
such Lender shall be disregarded for such purpose).

          (b) The Borrower agrees to pay (i) to the Administrative Agent for the
account of each Lender a participation fee with respect to its participations
in Letters of Credit, which shall accrue at the same Applicable Rate used to
determine the interest rate applicable to Eurodollar Revolving Loans on the
average daily amount of such Lender’s LC Exposure (excluding any portion
thereof attributable to unreimbursed LC Disbursements) during the period from
and including the Effective Date to but excluding the later of the date on
which such Lender’s Commitment terminates and the date on which such Lender
ceases to have any LC Exposure, and (ii) to each Issuing Bank a fronting fee,
which shall accrue at the rate of 0.125% per annum on the average daily amount
of the LC Exposure (excluding any portion thereof attributable to unreimbursed
LC Disbursements) attributable to the Letters of Credit issued by such Issuing
Bank during the period from and including the Effective Date to but excluding
the later of the date of termination of the Commitments and the date on which
there ceases to be any such LC Exposure, as well as each Issuing Bank’s
standard fees with respect to the issuance, amendment, renewal or extension of
any Letter of Credit or processing of drawings thereunder. Participation fees
and fronting fees accrued through and including the last day of March, June,
September and December of each year shall be payable on the third Business Day
following such last day, commencing on the first such date to occur after the
Effective Date; provided that all such fees shall be payable on the date on
which the Commitments terminate and any such fees accruing after the date on
which the Commitments terminate shall be payable on demand. Any other fees
payable to an Issuing Bank pursuant to this paragraph shall be payable within
10 days after demand. All participation fees and fronting fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).

          (c) The Borrower agrees to pay to the Administrative Agent, for its own
account, fees payable in the amounts and at the times separately agreed upon
between the Borrower and the Administrative Agent.

          (d) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or to an Issuing
Bank, in the case of fees payable to it) for distribution, in the case of
commitment fees and participation fees, to the Lenders. Fees paid shall not be
refundable under any circumstances.

     Section 2.12. Interest.

          (a) The Loans comprising each ABR Borrowing (including each Swingline
Loan) shall bear interest at the Alternate Base Rate plus the Applicable Rate.

          (b) The Loans comprising each Eurodollar Borrowing shall bear interest at
the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing
plus the Applicable Rate.

          (c) Notwithstanding the foregoing, if any principal of or interest on any
Loan or any fee or other amount payable by the Borrower hereunder is not paid
when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding
paragraphs of this Section or (ii) in the case of any other amount, 2% plus the
rate applicable to ABR Loans as provided in paragraph (a) of this Section.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 26

 

          (d) Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan and, in the case of Revolving Loans, upon
termination of the Commitments; provided that (i) interest accrued pursuant to
paragraph (c) of this Section shall be payable on demand, (ii) in the event of
any repayment or prepayment of any Loan (other than a prepayment of an ABR
Revolving Loan prior to the end of the Availability Period), accrued interest
on the principal amount repaid or prepaid shall be payable on the date of such
repayment or prepayment and (iii) in the event of any conversion of any
Eurodollar Revolving Loan prior to the end of the current Interest Period
therefor, accrued interest on such Loan shall be payable on the effective date
of such conversion.

          (e) All interest hereunder shall be computed on the basis of a year of 360
days, except that interest computed by reference to the Alternate Base Rate at
times when the Alternate Base Rate is based on the Prime Rate shall be computed
on the basis of a year of 365 days (or 366 days in a leap year) or unless such
calculation would result in a usurious rate, in which case interest shall be
calculated on the basis of a year of 365 days (or 366 days in a leap year), and
in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable Alternate Base Rate
or Adjusted LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

     Section 2.13. Alternate Rate of Interest. If prior to the commencement of
any Interest Period for a Eurodollar Borrowing:

          (a) the Administrative Agent determines (which determination shall be
conclusive absent manifest error) that adequate and reasonable means do not
exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or

          (b) the Administrative Agent is advised by the Required Lenders that the
Adjusted LIBO Rate for such Interest Period will not adequately and fairly
reflect the cost to such Lenders (or Lender) of making or maintaining their
Loans (or its Loan) included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be
ineffective, and (ii) if any Borrowing Request requests a Eurodollar Revolving
Borrowing, such Borrowing shall be made as an ABR Borrowing.

     Section 2.14. Increased Costs.

          (a) If any Change in Law shall:

               (i) impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account of, or
credit extended by, any Lender (except any such reserve requirement reflected
in the Adjusted LIBO Rate) or any Issuing Bank; or

               (ii) impose on any Lender or any Issuing Bank or the London interbank
market any other condition affecting this Agreement or Eurodollar Loans made by
such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase

AMENDED AND RESTATED CREDIT AGREEMENT, Page 27

 

the cost to such Lender or an Issuing Bank of participating in, issuing or
maintaining any Letter of Credit or to reduce the amount of any sum received or
receivable by such Lender or an Issuing Bank hereunder (whether of principal,
interest or otherwise), then the Borrower will pay to such Lender or the
applicable Issuing Bank, as the case may be, such additional amount or amounts
as will compensate such Lender or such Issuing Bank, as the case may be, for
such additional costs incurred or reduction suffered.

          (b) If any Lender or any Issuing Bank determines that any Change in Law
regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender’s or such Issuing Bank’s capital or on the
capital of such Lender’s or such Issuing Bank’s holding company, if any, as a
consequence of this Agreement or the Loans made by, or participations in
Letters of Credit held by, such Lender, or the Letters of Credit issued by an
Issuing Bank, to a level below that which such Lender or applicable Issuing
Bank or such Lender’s or such Issuing Bank’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s or
such Issuing Bank’s policies and the policies of such Lender’s or such Issuing
Bank’s holding company with respect to capital adequacy), then from time to
time the Borrower will pay to such Lender or such Issuing Bank, as the case may
be, such additional amount or amounts as will compensate such Lender or such
Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any
such reduction suffered.

          (c) A certificate of a Lender or an Issuing Bank setting forth the amount
or amounts necessary to compensate such Lender or such Issuing Bank or its
holding company, as the case may be, as specified in paragraph (a) or (b) of
this Section shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay such Lender or such Issuing Bank, as
the case may be, the amount shown as due on any such certificate within 10 days
after receipt thereof.

          (d) Failure or delay on the part of any Lender or any Issuing Bank to
demand compensation pursuant to this Section shall not constitute a waiver of
such Lender’s or such Issuing Bank’s right to demand such compensation;
provided that the Borrower shall not be required to compensate a Lender or an
Issuing Bank pursuant to this Section for any increased costs or reductions
incurred more than 270 days prior to the date that such Lender or such Issuing
Bank, as the case may be, notifies the Borrower of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s or such Issuing
Bank’s intention to claim compensation therefor; provided further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the 270-day period referred to above shall be extended to include the
period of retroactive effect thereof.

     Section 2.15. Break Funding Payments. In the event of (a) the payment of
any principal of any Eurodollar Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b)
the conversion of any Eurodollar Loan other than on the last day of the
Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Eurodollar Loan on the date specified in any notice
delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.10(c) and is revoked in accordance therewith), or (d) the
assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to
Section 2.18, then, in any such event, the Borrower shall compensate each
Lender for the loss, cost and expense attributable to such event. In the case
of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed
to include an amount determined by such Lender to be the excess, if any, of (i)
the amount of interest which would have accrued on the principal amount of such
Loan had such event not occurred, at the Adjusted LIBO Rate that would have
been applicable to such Loan, for the period from the date of such event to the
last day of the then current Interest Period therefor (or, in the case of a
failure to borrow, convert or continue, for the period that would have been the
Interest Period for such Loan), over (ii) the amount of interest which would
accrue on such principal amount for such period at the interest rate which such
Lender would bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks

AMENDED AND RESTATED CREDIT AGREEMENT, Page 28

 

in the eurodollar market. A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.

     Section 2.16. Taxes.

          (a) Any and all payments by or on account of any obligation of the
Borrower hereunder shall be made free and clear of and without deduction for
any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be
required to deduct any Indemnified Taxes or Other Taxes from such payments,
then (i) the sum payable shall be increased as necessary so that after making
all required deductions (including deductions applicable to additional sums
payable under this Section) the Administrative Agent, Lender or Issuing Bank
(as the case may be) receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrower shall make such deductions
and (iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

          (b) In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

          (c) The Borrower shall indemnify the Administrative Agent, each Lender and
each Issuing Bank, within 10 days after written demand therefor, for the full
amount of any Indemnified Taxes or Other Taxes paid by the Administrative
Agent, such Lender or such Issuing Bank, as the case may be, on or with respect
to any payment by or on account of any obligation of the Borrower hereunder
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the
amount of such payment or liability delivered to the Borrower by a Lender or an
Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of
a Lender or an Issuing Bank, shall be conclusive absent manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other
Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver
to the Administrative Agent the original or a certified copy of a receipt
issued by such Governmental Authority evidencing such payment, a copy of the
return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction
of withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made
without withholding or at a reduced rate.

          (f) If the Administrative Agent or a Lender determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to
which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section 2.16, it shall
pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section
2.16 with respect to the Taxes or Other Taxes giving rise to such refund), net
of all out-of-pocket expenses of the Administrative Agent or such Lender and
without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund); provided, that the Borrower, upon the
request of the Administrative Agent or such Lender, agrees

AMENDED AND RESTATED CREDIT AGREEMENT, Page 29

 

to repay the amount paid over to the Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority) to
the Administrative Agent or such Lender in the event the Administrative Agent
or such Lender is required to repay such refund to such Governmental Authority.
This Section shall not be construed to require the Administrative Agent or any
Lender to make available its tax returns (or any other information relating to
its taxes which it deems confidential) to the Borrower or any other Person.

     Section 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

          (a) The Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees or reimbursement of LC
Disbursements, or of amounts payable under Section 2.14, 2.15 or 2.16, or
otherwise) prior to 11:00 A.M., Dallas, Texas time, on the date when due, in
immediately available funds, without set-off or counterclaim. Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices in New York, New York,
except payments to be made directly to an Issuing Bank or the Swingline Lender
as expressly provided herein and except that payments pursuant to Sections
2.14, 2.15, 2.16 and 9.03 shall be made directly to the Persons entitled
thereto. The Administrative Agent shall distribute any such payments received
by it and any payments received under the terms of the Subsidiary Guaranty for
the account of any other Person to the appropriate recipient promptly following
receipt thereof. If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding
Business Day, and, in the case of any payment accruing interest, interest
thereon shall be payable for the period of such extension. All payments
hereunder shall be made in dollars.

          (b) If at any time insufficient funds are received from the Borrower by
and available to the Administrative Agent to pay fully all amounts of
principal, unreimbursed LC Disbursements, interest and fees then due hereunder,
such funds shall be applied (i) first, towards payment of interest and fees
then due hereunder, ratably among the parties entitled thereto in accordance
with the amounts of interest and fees then due to such parties, and (ii)
second, towards payment of principal and unreimbursed LC Disbursements then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal and unreimbursed LC Disbursements then due to such
parties. If at any time funds are received by the Administrative Agent from a
Guarantor under the Subsidiary Guaranty that are insufficient to pay fully all
amounts of principal, unreimbursed LC Disbursements, interest and fees then due
hereunder and all amounts due under any Swap Agreement the Borrower or a
Subsidiary has entered into with a Lender or an Affiliate of a Lender, such
funds shall be applied: (i) first, towards payment of interest and fees then
due, ratably among the parties entitled thereto in accordance with the amounts
of interest and fees then due to such parties, and (ii) second, towards payment
of principal, unreimbursed LC Disbursements and the amounts owing under such
Swap Agreements then due, ratably among the parties entitled thereto in
accordance with the amounts thereof.

          (c) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans or participations in LC Disbursements or
Swingline Loans resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Revolving Loans and participations in
LC Disbursements and Swingline Loans and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the
Revolving Loans and participations in LC Disbursements and Swingline Loans of
other Lenders to the extent necessary so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Revolving Loans and
participations in LC Disbursements and Swingline Loans; provided that

AMENDED AND RESTATED CREDIT AGREEMENT, Page 30

 

(i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by
a Lender as consideration for the assignment of or sale of a participation in
any of its Loans or participations in LC Disbursements to any assignee or
participant, other than to the Borrower or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply). The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such participation.

          (d) Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or an Issuing Bank hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or the applicable
Issuing Bank, as the case may be, the amount due. In such event, if the
Borrower has not in fact made such payment, then each of the Lenders or the
applicable Issuing Bank, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or such Issuing Bank with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date
of payment to the Administrative Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation.

          (e) If any Lender shall fail to make any payment required to be made by it
pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b) or 2.17(d), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender to satisfy such Lender’s obligations under
such Sections until all such unsatisfied obligations are fully paid.

     Section 2.18. Mitigation Obligations; Replacement of Lenders.

          (a) If any Lender requests compensation under Section 2.14, or if the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 2.14 or 2.16, as the case may be,
in the future and (ii) would not subject such Lender to any unreimbursed cost
or expense and would not otherwise be disadvantageous to such Lender. The
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

          (b) If any Lender requests compensation under Section 2.14, or if the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and
the Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 9.04), all its interests, rights and obligations under this Agreement
to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender

AMENDED AND RESTATED CREDIT AGREEMENT, Page 31

 

accepts such assignment); provided that (i) the Borrower shall have
received the prior written consent of the Administrative Agent which consent
shall not unreasonably be withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and
participations in LC Disbursements and Swingline Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts) and (iii) in the case
of any such assignment resulting from a claim for compensation under Section
2.14 or payments required to be made pursuant to Section 2.16, such assignment
will result in a reduction in such compensation or payments. A Lender shall
not be required to make any such assignment and delegation if, prior thereto,
as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to
apply.

     Section 2.19. Increase of Revolving Commitments. By written notice sent
to the Administrative Agent (which the Administrative Agent shall promptly
distribute to the Lenders), the Borrower may request an increase of the
aggregate amount of the Commitments: (i) by an aggregate amount equal to any
integral multiple of $5,000,000 but no less than $10,000,000; (ii) by an
aggregate amount up to $150,000,000; and (iii) to an amount not to exceed
$500,000,000; provided that (i) no Default shall have occurred and be
continuing and (ii) the aggregate amount of the Commitments shall not
previously have been increased more than two times pursuant to this Section
2.19. Each Lender, in its sole and absolute discretion, shall determine
whether it will increase its Commitment. If one or more of the Lenders will
not be increasing its Revolving Commitment pursuant to such request, then, with
notice to the Administrative Agent and the other Lenders, another one or more
financial institutions, each as approved by the Borrower, and the
Administrative Agent (a “New Lender”), may commit to provide an amount equal to
the aggregate amount of the requested increase that will not be provided by the
existing Lenders (the “Increase Amount”); provided, that the Commitment of each
New Lender shall be at least $10,000,000 and the maximum number of New Lenders
shall be five (5). Upon receipt of notice from the Administrative Agent to the
Lenders and the Borrower that the Lenders, or sufficient Lenders and New
Lenders, have agreed to commit to an aggregate amount equal to the Increase
Amount (or such lesser amount as the Borrower shall agree, which shall be at
least $5,000,000 and an integral multiple of $5,000,000 in excess thereof),
then: provided that no Default exists at such time or after giving effect to
the requested increase, the Borrower, the Administrative Agent and the Lenders
willing to increase their respective Commitments and the New Lenders (if any)
shall execute and deliver an Increased Commitment Supplement (herein so called)
in the form attached hereto as Exhibit E. If all existing Lenders shall not
have provided their pro rata portion of the requested increase, then after
giving effect to the requested increase the outstanding Revolving Loans may not
be held pro rata in accordance with the new Commitments. In order to remedy
the forgoing, on the effective date of the Increased Commitment Supplement, the
Lenders shall make advances among themselves (either directly or through the
Administrative Agent) so that after giving effect thereto the Revolving Loans
will be held by the Lenders, pro rata in accordance with their respective
Commitments. Any advances made under this Section 2.19 by a Lender shall be
deemed to be a purchase of a corresponding amount of the Revolving Loans of the
Lender or Lenders who shall receive such advances. The Commitments of the
Lenders who do not agree to increase their Commitments can not be reduced or
otherwise changed pursuant to this Section 2.19.

ARTICLE III.

Representations and Warranties

     The Borrower represents and warrants to the Lenders that:

     Section 3.01. Organization; Powers. Each of the Borrower and the
Subsidiaries is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has

AMENDED AND RESTATED CREDIT AGREEMENT, Page 32

 

all requisite corporate, limited liability company or partnership power
and authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business
in, and is in good standing in, every jurisdiction where such qualification is
required.

     Section 3.02. Authorization; Enforceability. The Transactions to be
entered into by the Borrower and each Guarantor are within such party’s
corporate, limited liability company or partnership powers and have been duly
authorized by all necessary corporate, company or partnership action and, if
required, stockholder, member, manager or partner action. This Agreement has
been duly executed and delivered by the Borrower and constitutes a legal, valid
and binding obligation of the Borrower, enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law. The Subsidiary Guaranty has been duly executed and delivered
by the Guarantors and constitutes a legal, valid and binding obligation of each
such Guarantor, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

     Section 3.03. Governmental Approvals; No Conflicts. The Transactions (a)
do not require any consent or approval of, registration or filing with, or any
other action by, any Governmental Authority, except such as have been obtained
or made and are in full force and effect or are not yet required, (b) will not
violate any applicable law or regulation or the charter, by-laws or other
organizational documents of the Borrower or any of the Subsidiaries or any
order of any Governmental Authority, (c) will not violate or result in a
default under any indenture, agreement or other instrument binding upon the
Borrower or any of the Subsidiaries or its assets, or give rise to a right
thereunder to require any payment to be made by the Borrower or any of the
Subsidiaries, and (d) will not result in the creation or imposition of any Lien
on any asset of the Borrower or any of the Subsidiaries.

     Section 3.04. Financial Condition; No Material Adverse Change.

          (a) The Borrower has heretofore furnished to the Lenders its consolidated
balance sheet and statements of income, stockholders equity and cash flows (i)
as of and for the fiscal year ended March 31, 2004, reported by independent
public accountants, and (ii) as of and for the fiscal quarter and the portion
of the fiscal year ended September 30, 2004, certified by its chief financial
officer. Such financial statements present fairly, in all material respects,
the financial position and results of operations and cash flows of the Borrower
and its consolidated Subsidiaries as of such dates and for such periods in
accordance with GAAP, subject to year-end audit adjustments and the absence of
footnotes in the case of the statements referred to in clause (ii) above.

          (b) Since March 31, 2004, there has been no material adverse change in the
business, assets, results of operations, or financial condition of the Borrower
and the Subsidiaries, taken as a whole.

     Section 3.05. Properties.

          (a) Each of the Borrower and the Subsidiaries has good title to, or valid
leasehold interests in, all its real and personal property material to its
business, free and clear of all Liens except for (i) minor defects in title
that do not interfere with its ability to conduct its business as currently
conducted or to utilize such properties for their intended purposes; (ii) as of
the Effective Date, Permitted Encumbrances and other Liens disclosed on
Schedule 3.05 or otherwise permitted by Section 6.02(d) or Section 6.02(f), and
(iii) at all times after the Effective Date, as permitted by Section 6.02.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 33

 

          (b) Each of the Borrower and the Subsidiaries owns, or is licensed to use,
all trademarks, tradenames, copyrights, patents and other intellectual property
the failure to own or be licensed to use could reasonably be expected to result
in a Material Adverse Effect, and the use thereof by the Borrower and the
Subsidiaries does not infringe upon the rights of any other Person, except for
any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     Section 3.06. Litigation and Environmental Matters.

          (a) There are no actions, suits or proceedings by or before any arbitrator
or Governmental Authority pending against or, to the knowledge of the Borrower,
threatened against or affecting the Borrower or any of the Subsidiaries (i) as
to which there is a reasonable expectation of an adverse determination and
that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect (other than the Disclosed
Matters) or (ii) that involve this Agreement or the Transactions.

          (b) Except for the Disclosed Matters and except with respect to any other
matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, neither the Borrower nor any
of the Subsidiaries (i) has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required
under any Environmental Law, (ii) has become subject to any Environmental
Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental
Liability.

          (c) Since the date of this Agreement, there has been no change in the
status of the Disclosed Matters that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect.

     Section 3.07. Compliance with Laws and Agreements. Each of the Borrower
and the Subsidiaries is in compliance with all laws, regulations and orders of
any Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. No Default has occurred and
is continuing.

     Section 3.08. Investment and Holding Company Status. Neither the Borrower
nor any of the Subsidiaries is (a) an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940 or (b) a
“holding company” as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.

     Section 3.09. Taxes. Each of the Borrower and the Subsidiaries has timely
filed or caused to be filed all Tax returns and reports required to have been
filed and has paid or caused to be paid all Taxes required to have been paid by
it, except (a) Taxes that are being contested in good faith by appropriate
proceedings and for which the Borrower or such Subsidiary, as applicable, has
set aside on its books adequate reserves or (b) to the extent that the failure
to do so could not reasonably be expected to result in a Material Adverse
Effect.

     Section 3.10. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events
for which liability is reasonably expected to occur, could reasonably be
expected to result in a Material Adverse Effect. The present value of all
accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as
of the date of the most recent financial statements reflecting such amounts,
exceed by more than $2,500,000 the fair market value of the assets of such
Plan,

AMENDED AND RESTATED CREDIT AGREEMENT, Page 34

 

and the present value of all accumulated benefit obligations of all
underfunded Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed by more than
$10,000,000 the fair market value of the assets of all such underfunded Plans.

     Section 3.11. Disclosure. Neither the Information Memorandum nor any of
the other reports, financial statements, certificates or other information
furnished by or on behalf of the Borrower to the Administrative Agent or any
Lender in connection with the negotiation of this Agreement or delivered
hereunder (as modified or supplemented by other information so furnished)
contains any material misstatement of fact or omits to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that, with respect to
projected financial information, the Borrower represents only that such
information was prepared in good faith based upon assumptions believed to be
reasonable at the time.

     Section 3.12. Subsidiaries. Schedule 3.12 contains an accurate list of
all Subsidiaries of the Borrower as of the Effective Date, setting forth their
respective jurisdictions of organization, whether such Subsidiary is a Material
Subsidiary, and the percentage of their respective capital stock or other
Equity Interests owned directly by the Borrower and each other Subsidiary. All
of the issued and outstanding shares of capital stock or other Equity Interests
of such Subsidiaries have been duly authorized and issued and are fully paid
and non-assessable. There are no outstanding subscriptions, options, warrants,
calls, or rights (including preemptive rights) to acquire, and no outstanding
securities or instruments convertible into, any Equity Interests of any
Subsidiary.

     Section 3.13. Indebtedness. The Borrower has no Indebtedness, except, as
of the Effective Date, as reflected on Schedule 3.13 or otherwise permitted by
clauses (c), (d), (f), (g), (h), (i), (j), (k), or (l)(ii) of Section 6.01 and,
at all times after the Effective Date, as permitted by Section 6.01. As of the
Effective Date, the Non-Guarantor Amount does not exceed $15,000,000.

     Section 3.14. Solvency. Immediately after the consummation of the
Transactions to occur on the Effective Date and immediately following the
making of each Loan and after giving effect to the application of the proceeds
of such Loans, (a) the fair value of the assets of Borrower and each
Subsidiary, at a fair valuation, will exceed its debts and liabilities,
subordinated, contingent or otherwise; (b) the present fair saleable value of
the property of each such party will be greater than the amount that will be
required to pay the probable liability of its debts and other liabilities,
subordinated, contingent or otherwise, as such debts and other liabilities
become absolute and matured; (c) each such party will be able to pay its debts
and liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (d) each such party will not have
unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be conducted
following the Effective Date. The term “fair value” means the amount at which
the applicable assets would change hands between a willing buyer and a willing
seller within a reasonable time, each having reasonable knowledge of the
relevant facts, neither being under any compulsion to act, with equity to both
and “present fair saleable value” means the amount that may be realized if the
applicable company’s aggregate assets are sold with reasonable promptness in an
arm’s length transaction under present conditions for the sale of a comparable
business enterprises.

     Section 3.15. Margin Securities. Neither the Borrower nor any Subsidiary
is engaged principally, or as one of its important activities, in the business
of extending credit for the purpose of purchasing or carrying margin stock
(within the meaning of Regulations U or X of the Board of Governors of the
Federal Reserve System), and, except for the repurchases of the Borrower’s
capital stock in accordance with the limitations in Section 6.06, no part of
the proceeds of any Loan will be used to

AMENDED AND RESTATED CREDIT AGREEMENT, Page 35

 

purchase or carry any margin stock or to extend credit to others for the
purpose of purchasing or carrying margin stock.

ARTICLE IV.

Conditions

     Section 4.01. Effective Date. The effectiveness of this Agreement to
amend and restate the Prior Agreement and the obligations of the Lenders to
make Loans and of JPMorgan Chase Bank, N.A. to issue Letters of Credit
hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 9.02):

          (a) The Administrative Agent (or its counsel) shall have received from
each party hereto either (i) a counterpart of this Agreement signed on behalf
of such party or (ii) written evidence satisfactory to the Administrative Agent
(which may include telecopy transmission of a signed signature page of this
Agreement) that such party has signed a counterpart of this Agreement.

          (b) The Administrative Agent shall have received a favorable written
opinion (addressed to the Administrative Agent and the Lenders and dated the
Effective Date) of counsel for the Borrower and the Guarantors, substantially
in the form of Exhibit B, and covering such other matters relating to the
Borrower, the Guarantors, this Agreement or the Transactions as the Required
Lenders shall reasonably request. The Borrower hereby requests such counsel to
deliver such opinion.

          (c) The Administrative Agent shall have received a fully executed copy of
the Subsidiary Guaranty executed by each Subsidiary party thereto.

          (d) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably request
relating to the organization, existence and good standing of the Borrower and
the Guarantors, the authorization of the Transactions and any other legal
matters relating to the Borrower, the Guarantors, this Agreement or the
Transactions, all in form and substance reasonably satisfactory to the
Administrative Agent and its counsel.

          (e) The Administrative Agent shall have received a certificate, dated the
Effective Date and signed by the President, a Vice President or a Financial
Officer of the Borrower, confirming compliance with the conditions set forth in
paragraphs (a) and (b) of Section 4.02.

          (f) The Administrative Agent shall have received all fees and other
amounts due and payable by Borrower on or prior to the Effective Date hereunder
or under the Fee Letter between Borrower and Administrative Agent dated
November 2, 2004, including, to the extent invoiced, reimbursement or payment
of all out-of-pocket expenses required to be reimbursed or paid by the Borrower
hereunder.

          (g) The Administrative Agent shall have received all unpaid interest and
fees accrued under the Prior Agreement through the Effective Date and all other
fees, expenses and other charges outstanding thereunder (including all amounts
due under Section 2.15 thereof arising as a result of the termination of all
interest periods thereunder on the Effective Date.

The Administrative Agent shall notify the Borrower and the Lenders of the
Effective Date, and such notice shall be conclusive and binding.
Notwithstanding the foregoing, the effectiveness of this Agreement to amend and
restate the Prior Agreement and the obligations of the Lenders to make Loans
and of JPMorgan Chase Bank, N.A. to issue Letters of Credit hereunder shall not
become effective unless

AMENDED AND RESTATED CREDIT AGREEMENT, Page 36

 

each of the foregoing conditions is satisfied (as evidenced by the
Administrative Agent’s notice pursuant to the immediately preceding sentence)
or waived pursuant to Section 9.02, at or prior to 3:00 P.M., Dallas, Texas
time, on December 31, 2004 (and, in the event such conditions are not so
satisfied or waived, the Commitments shall terminate at such time).

     Section 4.02. Each Credit Event. The obligation of each Lender to make a
Loan on the occasion of any Borrowing, and of an Issuing Bank to issue, amend,
renew or extend any Letter of Credit, is subject to the satisfaction of the
following conditions:

          (a) The representations and warranties of the Borrower set forth in this
Agreement shall be true and correct in all material respects on and as of the
date of such Borrowing or the date of issuance, amendment, renewal or extension
of such Letter of Credit, as applicable, except to the extent any such
representation or warranty is stated to relate solely to an earlier date, in
which case such representation or warranty shall be true and correct in all
material respects on and as of such earlier date.

          (b) At the time of and immediately after giving effect to such Borrowing
or the issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, no Default shall have occurred and be continuing.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter
of Credit shall be deemed to constitute a representation and warranty by the
Borrower on the date thereof as to the matters specified in paragraphs (a) and
(b) of this Section.

     Section 4.03. Effective Date Adjustments. If as a result of the amendment
to the amount of the Commitments under Prior Agreement contemplated hereby, any
outstanding Revolving Loans are not be held pro rata in accordance with the new
Commitments as of the Effective Date, then on the Effective Date, the Lenders
shall make advances among themselves (either directly or through the
Administrative Agent) so that after giving effect thereto the Revolving Loans
will be held by the Lenders, pro rata in accordance with their respective
Commitments. Any advances made under this Section 4.03 by a Lender shall be
deemed to be a purchase of a corresponding amount of the Revolving Loans of the
Lender or Lenders who shall receive such advances.

ARTICLE V.

Affirmative Covenants

     Until the Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees payable hereunder shall have been paid
in full and all Letters of Credit shall have expired or terminated and all LC
Disbursements shall have been reimbursed, the Borrower covenants and agrees
with the Lenders that:

     Section 5.01. Financial Statements; Ratings Change and Other Information.
The Borrower will furnish to the Administrative Agent and each Lender:

          (a) within 120 days after the end of each fiscal year of the Borrower, its
audited consolidated balance sheet and related statements of operations,
stockholders’ equity and cash flows as of the end of and for such year, setting
forth in each case in comparative form the figures for the previous fiscal
year, all reported on by independent public accountants of recognized national
standing (without a “going concern” or like qualification or exception and
without any qualification or exception as to the scope of such audit) to the
effect that such consolidated financial statements present fairly in all
material

AMENDED AND RESTATED CREDIT AGREEMENT, Page 37

 

respects the financial condition and results of operations of the Borrower
and its consolidated Subsidiaries on a consolidated basis in accordance with
GAAP consistently applied;

          (b) within 60 days after the end of each of the first three fiscal
quarters of each fiscal year of the Borrower, its consolidated balance sheet
and related statements of operations, stockholders’ equity and cash flows as of
the end of and for such fiscal quarter and the then elapsed portion of the
fiscal year, setting forth in each case in comparative form the figures for the
corresponding period or periods of (or, in the case of the balance sheet, as of
the end of) the previous fiscal year, all certified by one of its Financial
Officers as presenting fairly in all material respects the financial condition
and results of operations of the Borrower and its consolidated Subsidiaries on
a consolidated basis in accordance with GAAP consistently applied, subject to
normal year-end audit adjustments and the absence of footnotes;

          (c) concurrently with any delivery of financial statements under clause
(a) or (b) above, a certificate of a Financial Officer of the Borrower (i)
certifying as to whether a Default has occurred and, if a Default has occurred,
specifying the details thereof and any action taken or proposed to be taken
with respect thereto, (ii) setting forth reasonably detailed calculations
demonstrating compliance with Sections 5.09, 6.06, 6.09 and 6.10 and (iii)
stating whether any change in GAAP or in the application thereof which has
affected or will affect the Borrower’s financial statements has occurred since
the date of the most recent audited financial statements of Borrower delivered
to the Administrative Agent hereunder and specifying the effect of such change
on the financial statements accompanying such certificate;

          (d) As soon as available, but in any event within 15 days before the
beginning of each fiscal year of the Borrower, a copy of the plan and forecast
(including a projected consolidated balance sheet, income statement and funds
flow statement) of the Borrower for the forthcoming fiscal year;

          (e) concurrently with any delivery of financial statements under clause
(a) or (b) above, copies of all registration statements, all annual, quarterly
or other regular reports and all proxy statements filed by the Borrower or any
Subsidiary with the Securities and Exchange Commission, or any Governmental
Authority succeeding to any or all of the functions of said Commission, or
distributed by the Borrower to its shareholders generally, which have been
filed or distributed since the date of the last delivery under this clause (e)
or, with respect to the first such delivery under this clause (e), since the
Effective Date;

          (f) promptly upon receipt thereof, a copy of any management letter
submitted to the Borrower or any Subsidiary by independent certified public
accountants with respect to the financial statements required to be delivered
under clause (a) above; and

          (g) promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of the
Borrower or any Subsidiary, or compliance with the terms of this Agreement, as
the Administrative Agent or any Lender may reasonably request.

     Section 5.02. Notices of Material Events. The Borrower will furnish to
the Administrative Agent and each Lender prompt written notice of the
following:

          (a) the occurrence of any Default;

          (b) the filing or commencement of any action, suit or proceeding by or
before any arbitrator or Governmental Authority against or affecting the
Borrower or any Subsidiary that is reasonably expected to be determined
adversely and, if adversely determined, could reasonably be expected to result
in a Material Adverse Effect;

AMENDED AND RESTATED CREDIT AGREEMENT, Page 38

 

          (c) the occurrence of any ERISA Event that, alone or together with any
other ERISA Events that have occurred, could reasonably be expected to result
in a Material Adverse Effect; and

          (d) any other development that results in, or could reasonably be expected
to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Borrower setting forth
the details of the event or development requiring such notice and any action
taken or proposed to be taken with respect thereto.

     Section 5.03. Existence; Conduct of Business. The Borrower will, and will
cause each of the Subsidiaries to, do or cause to be done all things necessary
to preserve, renew and keep in full force and effect its legal existence;
provided that the foregoing shall not prohibit any merger, consolidation,
liquidation or dissolution permitted under Section 6.03. The Borrower will,
and will cause each of the Subsidiaries to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect all the rights,
licenses, permits, privileges and franchises used in the conduct of its
business, except for such rights, licenses, permits, privileges and franchises
the failure to preserve, renew or keep effective could not reasonably be
expected to result in a Material Adverse Effect.

     Section 5.04. Payment of Obligations. The Borrower will, and will cause
each of the Subsidiaries to, pay its obligations, including Tax liabilities,
that, if not paid, could result in a Material Adverse Effect before the same
shall become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) the
Borrower or such Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP and (c) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect.

     Section 5.05. Maintenance of Properties; Insurance. The Borrower will,
and will cause each of the Subsidiaries to, (a) keep and maintain all its
property in good working order and condition, ordinary wear and tear excepted,
except where the failure to do so could not reasonably be expected to result in
a Material Adverse Effect and (b) maintain, with financially sound and
reputable insurance companies, insurance in such amounts and against such risks
as are customarily maintained by companies engaged in the same or similar
businesses operating in the same or similar locations.

     Section 5.06. Books and Records; Inspection Rights. The Borrower will,
and will cause each of the Subsidiaries to, keep proper books of record and
account in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities to the extent necessary
to permit financial statements to be prepared in conformity with GAAP and
otherwise in all material respects with all requirements of law. The Borrower
will, and will cause each of the Subsidiaries to, permit any representatives
designated by the Administrative Agent or any Lender, upon reasonable prior
notice, to visit and inspect its properties, to examine and make extracts from
its books and records, and to discuss its affairs, finances and condition with
its officers and independent accountants, all at such reasonable times and as
often as reasonably requested.

     Section 5.07. Compliance with Laws and Agreements. The Borrower will, and
will cause each of the Subsidiaries to, comply with all laws, rules,
regulations and orders of any Governmental Authority applicable to it or its
property, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. The
Borrower will, and will cause each Subsidiary to, comply with all agreements,
contracts, and instruments binding on it or affecting its properties or
business, except where the failure to do so could not reasonably be expected to
result in a Material Adverse Effect.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 39

 

     Section 5.08. Use of Proceeds. The proceeds of the Loans will be used for
general corporate purposes of the Borrower and the Subsidiaries, including to
refinance debt and make acquisitions. No part of the proceeds of any Loan will
be used, whether directly or indirectly, for any purpose that entails a
violation of any of the Regulations of the Board, including Regulations G, U
and X. Letters of Credit will be issued to support transactions entered into
by the Borrower and the Subsidiaries in their ordinary course of business.

     Section 5.09. Joinder of Subsidiaries to Subsidiary Guaranty. Within 60
days after the end of each fiscal quarter, the Borrower shall make the
calculations to determine whether: (i) any Subsidiary who is not a party to the
Subsidiary Guaranty is a “Material Subsidiary” as of such fiscal quarter end;
and (ii) if the Subsidiaries who are party to the Subsidiary Guaranty met the
Aggregation Test as of such fiscal quarter end. The “Aggregation Test” shall
be deemed to be met as of a fiscal quarter end if all the following conditions
are satisfied as of such fiscal quarter end: (i) the combined total assets of
the Subsidiaries who are party to the Subsidiary Guaranty as of such fiscal
quarter end are equal to or greater than 85% of the Borrower’s consolidated
total assets as of such fiscal quarter end; and (ii) the total combined
Consolidated EBITDA of the Subsidiaries who are party to the Subsidiary
Guaranty for the 12 completed months ending as of such fiscal quarter end is
equal to or greater than 85% of the Borrower’s Consolidated EBITDA for such
period. If any Subsidiary who is not a party to the Subsidiary Guaranty is a
Material Subsidiary as of such fiscal quarter end, then within 60 days after
the end of such fiscal quarter the Borrower shall cause each such Subsidiary
(any such Material Subsidiary, herein a “New Material Subsidiary”) to execute
and deliver to the Administrative Agent a Subsidiary Joinder Agreement in the
form attached to the Subsidiary Guaranty as Exhibit “A” joining it as a
guarantor under the Subsidiary Guaranty and shall execute and/or deliver such
other documentation as the Administrative Agent may reasonably request to cause
such New Material Subsidiary to evidence its authority to enter into or
otherwise implement the guaranty of the repayment of the obligations
contemplated by the Subsidiary Guaranty and this Agreement. If as of the end
of any fiscal quarter, the Aggregation Test is not satisfied, then within 60
days after the end of such fiscal quarter the Borrower shall cause such number
of Subsidiaries to join into the Subsidiary Guaranty (as if they were each a
New Material Subsidiary as provided in the foregoing sentence) so that after
giving effect thereto, the Aggregation Test is satisfied.

     Section 5.10. Further Assurances. The Borrower will execute, and will
cause each Guarantor to execute, any and all further documents, agreements and
instruments, and take all such further actions, which may be required under any
applicable law, or which either the Administrative Agent or the Required
Lenders may reasonably request, to effectuate the Transactions all at the
expense of the Borrower.

     Section 5.11. Receivables Securitization. The Borrower shall deliver to
the Administrative Agent copies of any agreements or other documents relating
to any Receivables Securitization Financing entered into by the Borrower or any
Subsidiary promptly following the execution thereof.

ARTICLE VI.

Negative Covenants

     Until the Commitments have expired or terminated and the principal of and
interest on each Loan and all fees payable hereunder have been paid in full and
all Letters of Credit have expired or terminated and all LC Disbursements shall
have been reimbursed, the Borrower covenants and agrees with the Lenders that:

     Section 6.01. Indebtedness. The Borrower will not, and will not permit
any Subsidiary to, create, incur, assume or permit to exist any Indebtedness,
except:

AMENDED AND RESTATED CREDIT AGREEMENT, Page 40

 

          (a) Indebtedness created under the Loan Documents;

          (b) Indebtedness existing on the Effective Date and set forth in Schedule
3.13 and extensions, renewals and replacements of any such Indebtedness that do
not increase the outstanding principal amount thereof;

          (c) Indebtedness of any Subsidiary to Borrower, of Borrower to any
Subsidiary or of any Subsidiary to any other Subsidiary; provided that: (i)
such Indebtedness must be incurred in the ordinary course of business or
incurred to finance general corporate needs; and (ii) the sum of the aggregate
outstanding amount of all of the obligations of Non-Guarantor Subsidiaries
guarantied by the Borrower or any Guarantor pursuant to clause (f) below plus
the aggregate outstanding principal amount of all of the loans and advances
made to Non-Guarantor Subsidiaries by Borrower or any Guarantor plus the
aggregate amount of all of the investments made after the Effective Date in
Non-Guarantor Subsidiaries by the Borrower or any Guarantor excluding all
Receivable Financing Amounts (such sum the “Non-Guarantor Amount”) shall not at
any time exceed an aggregate amount equal to $15,000,000;

          (d) Indebtedness of the Borrower or any Subsidiary incurred to finance the
acquisition, construction or improvement of any fixed or capital assets,
including Capital Lease Obligations and any Indebtedness assumed in connection
with the acquisition of any such assets or secured by a Lien on any such assets
prior to the acquisition thereof, and extensions, renewals and replacements of
any such Indebtedness that do not increase the outstanding principal amount
thereof;

          (e) Indebtedness of any Person that becomes a Subsidiary after the date
hereof; provided that such Indebtedness exists at the time such Person becomes
a Subsidiary and is not created in contemplation of or in connection with such
Person becoming a Subsidiary;

          (f) Guaranties by the Borrower of Indebtedness or other obligations of any
Subsidiary and by any Subsidiary of Indebtedness or other obligations of the
Borrower or any other Subsidiary; provided that the Non-Guarantor Amount shall
not exceed $15,000,000;

          (g) Indebtedness outstanding under Receivable Securitization Financings
provided that the aggregate purchase commitment under all of the Borrower’s and
the Subsidiaries’ Receivable Securitization Financings shall not exceed
$75,000,000;

          (h) Indebtedness arising in connection with Swap Agreements permitted by
Section 6.05;

          (i) Indebtedness for borrowed money owed by Subsidiaries, provided that:
(i) the aggregate principal amount of all the Indebtedness for borrowed money
owed by the Subsidiaries (including that permitted under other clauses of this
Section 6.01, but excluding the Indebtedness permitted under clauses (a), (c),
(g), (l)(i) and (l)(ii) of this Section 6.01) does not exceed at any time an
amount equal to 15% of the Consolidated Tangible Net Worth of the Borrower and
(ii) the Non-Guarantor Amount shall not exceed $15,000,000;

          (j) Indebtedness incurred in the ordinary course of business with respect
to surety and appeal bonds, performance and return-of-money bonds, and other
similar obligations;

          (k) Indebtedness constituting obligations to reimburse worker’s
compensation insurance companies for claims paid by such companies on
Borrower’s or a Subsidiaries’ behalf in accordance with the policies issued to
Borrower and the Subsidiaries; and

AMENDED AND RESTATED CREDIT AGREEMENT, Page 41

 

          (l) The following Indebtedness, in addition to the other Indebtedness
permitted by this Section, as long as on the date of the incurrence of any of
the Indebtedness described below in this clause: (i) no Default exists or
would result therefrom; (ii) with respect to clauses (iii) and (iv) below only,
the limitations on Subsidiary Indebtedness under clause (i) of this Section
6.01 are not exceeded; and (iii) the Borrower shall have provided to the
Administrative Agent and each Lender prior to or on the date of the incurrence
thereof, a certificate of a Financial Officer of the Borrower: (A) certifying
that no Default exists or could reasonably be expected to occur as a result of
the proposed Indebtedness, and (B) demonstrating that as of the date of any
such incurrence, the Borrower is and, on a pro forma basis after giving effect
to such Indebtedness, will be, in compliance with the financial covenants set
forth in Sections 6.09 and 6.10 of this Agreement:

               (i) Guaranties by the Borrower and the Guarantors of the Indebtedness of
Illinois Cement Company and Texas-Lehigh Cement Company, L.P.;

               (ii) Indebtedness of a Subsidiary who is a general partner of a Joint
Venture arising for Indebtedness incurred by the Joint Venture as a result of
the fact that the Subsidiary is the general partner of the Joint Venture;

               (iii) Indebtedness for borrowed money incurred by the Borrower and the
guaranty thereof by the Guarantors; and

               (iv) Indebtedness of the type described in clause (k) of the definition of
the term Indebtedness of Borrower or any Subsidiary.

     Section 6.02. Liens. The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, except:

          (a) Permitted Encumbrances;

          (b) any Lien on any property or asset of the Borrower or any Subsidiary
existing on the Effective Date and set forth in Schedule 3.05; provided that
(i) such Lien shall not apply to any other property or asset of the Borrower or
any Subsidiary and (ii) such Lien shall secure only those obligations which it
secures on the date hereof and extensions, renewals and replacements thereof
that do not increase the outstanding principal amount thereof;

          (c) any Lien existing on any property or asset prior to the acquisition
thereof by the Borrower or any Subsidiary or existing on any property or asset
of any Person that becomes a Subsidiary after the date hereof prior to the time
such Person becomes a Subsidiary; provided that (i) such Lien is not created in
contemplation of or in connection with such acquisition or such Person becoming
a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other
property or assets of the Borrower or any Subsidiary and (iii) such Lien shall
secure only those obligations which it secures on the date of such acquisition
or the date such Person becomes a Subsidiary, as the case may be and
extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof;

          (d) Liens on fixed or capital assets acquired, constructed or improved by
the Borrower or any Subsidiary; provided that (i) such Liens secure
Indebtedness permitted by clause (d) of Section 6.01, (ii) such Liens and the
Indebtedness secured thereby are incurred prior to or within 90 days after such
acquisition or the completion of such construction or improvement, (iii) the
Indebtedness secured thereby does not exceed 100% of the cost of acquiring,
constructing or improving such fixed or capital assets and (iv) such Liens
shall not apply to any other property or assets of the Borrower or any
Subsidiary;

AMENDED AND RESTATED CREDIT AGREEMENT, Page 42

 

          (e) Liens arising out of pledges or deposits made in the ordinary course
of business of the Borrower and the Subsidiaries to secure the performance of
bids, tenders, insurance or other contracts (other than for the repayment of
borrowed money) or to secure statutory obligations, surety or appeal bonds or
indemnity, performance or other similar bonds so long as such amounts secured
by such Liens shall not exceed at any time an aggregate amount equal to
$15,000,000;

          (f) Liens granted in connection with Receivables Securitization Financings
permitted by Section 6.01(g) on the accounts receivable sold or transferred
pursuant thereto (together with all collections and other proceeds thereof, any
collateral securing the payment thereof and all rights, interest and claims of
the Borrower or any Subsidiary in or under the agreements or instruments
evidencing, supporting or securing payment thereof), all right, title and
interest in and to the lockboxes and other collection accounts in which
proceeds of such accounts receivable are deposited, the rights under the
documents executed in connection with such Receivables Securitization
Financings and in the Equity Interests issued by any special purpose entity
organized to purchase the receivables thereunder; and

          (g) Liens, in addition to those permitted by the foregoing clauses of this
Section, provided that the aggregate market value of the property and assets
encumbered by all Liens incurred under the permissions of this clause (g) shall
not exceed $15,000,000 and the aggregate principal amount of the Indebtedness
secured by all such Liens does not exceed $15,000,000.

     Section 6.03. Fundamental Changes; Sale of Assets.

          (a) The Borrower will not, and will not permit any Subsidiary to, merge
into or consolidate with any other Person, or permit any other Person to merge
into or consolidate with it, or sell, transfer, lease or otherwise dispose of
(in one transaction or in a series of transactions) all of its assets, or all
or substantially all of the Equity Interest of any of the Subsidiaries (in each
case, whether now owned or hereafter acquired), or liquidate or dissolve,
except that, if at the time thereof and immediately after giving effect thereto
no Default shall have occurred and be continuing: (i) any Person may merge into
the Borrower in a transaction in which the Borrower is the surviving
corporation, (ii) any Person may merge into or consolidate with any Subsidiary
or any Subsidiary may merge into or consolidate with any Person, in each case
in a transaction in which the surviving entity is a Subsidiary, (iii) Borrower
or any Subsidiary may sell or transfer Equity Interests of a Subsidiary to
another Subsidiary or Borrower, (iv) any Subsidiary may sell, transfer, lease
or otherwise dispose of its assets to the Borrower or to another Subsidiary,
(v) any Subsidiary may liquidate or dissolve if the Borrower determines in good
faith that such liquidation or dissolution is in the best interests of the
Borrower and is not materially disadvantageous to the Lenders; and (vi) the
Borrower and the Subsidiaries may dispose of property and assets, including
Equity Interests of a Subsidiary, either directly or through a merger or
consolidation, in accordance with the permissions set forth in clause (c) of
this Section; provided that any merger or consolidation permitted under this
clause (a) involving a Person that is not a wholly owned Subsidiary immediately
prior to such merger or consolidation shall not be permitted unless also
permitted by Section 6.04 to the extent such Section otherwise restricts such
transaction.

          (b) The Borrower will not, and will not permit any of the Subsidiaries to,
engage to any material extent in any business other than businesses of the type
conducted by the Borrower and the Subsidiaries on the date of execution of this
Agreement and businesses reasonably related thereto.

          (c) The Borrower will not, and will not permit any of the Subsidiaries to,
sell, transfer, lease or otherwise dispose of any of its property or assets,
including any Equity Interests owned by it, except:

AMENDED AND RESTATED CREDIT AGREEMENT, Page 43

 

               (i) sales of inventory, used, obsolete or surplus equipment and Permitted
Investments in the ordinary course of business;

               (ii) as long as no Default exists or would result therefrom, sales,
transfers, leases and other dispositions to the Borrower or a Subsidiary;
provided that any such sales, transfers, leases or other dispositions involving
a Subsidiary shall be made in compliance with Section 6.07;

               (iii) the sale of accounts receivable on a limited recourse basis pursuant
to a Receivable Securitization Financing permitted by Section 6.01(g); and

               (iv) in addition to the dispositions permitted by (i) through (iii)
immediately above, leases, sales or other dispositions of property, either
directly or through a merger or consolidation, that, together with all other
property of the Borrower and the Subsidiaries previously disposed of under the
permissions of this clause (iv) during the twelve-month period ending with the
month in which any such other disposition occurs (the “Calculation Period”), do
not constitute a Substantial Portion of the property of the Borrower and the
Subsidiaries;

provided that all sales, transfers, leases and other dispositions permitted
hereby (other than those permitted by clause (ii) above) shall be made for fair
value and, if the sale, transfer, lease or disposition in question together
with any related series of sales, transfers, leases or other dispositions,
involves assets that have a fair value of more than $10,000,000, then at least
75% of the consideration therefor shall be in cash. The term “Substantial
Portion” means, on any date, property with a book value that: (A) represents
more than 15% of the consolidated assets of the Borrower and the Subsidiaries
as would be shown in the consolidated financial statements of the Borrower as
of the last day of the last month before the start of the applicable
Calculation Period or (B) is responsible for more than 15% of the consolidated
sales or 15% of the Consolidated EBITDA of the Borrower for the last 12 months
as reflected or calculated from in the financial statements referred to in
clause (A) above.

     Section 6.04. Investments, Loans, Advances, Guaranties and Acquisitions.
The Borrower will not, and will not permit any of the Subsidiaries to,
purchase, hold or acquire (including pursuant to any merger with any Person
that was not a wholly owned Subsidiary prior to such merger) any Equity
Interests, evidences of indebtedness or other securities (including any option,
warrant or other right to acquire any of the foregoing) of, make or permit to
exist any loans or advances to, Guaranty any obligations of, or make or permit
to exist any investment or any other ownership interest in, any other Person,
or purchase or otherwise acquire (in one transaction or a series of
transactions) any assets of any other Person constituting a business unit,
except:

          (a) acquisitions of Equity Interests in another Person not constituting
Acquisitions so long as (i) no Default exists or would result therefrom, (ii)
the total Purchase Price paid for all such acquisitions during the completed 12
month period immediately prior to the date of the acquisition in question plus
the Purchase Price for the acquisition in question does not exceed $10,000,000
and (iii) the Non-Guarantor Amount does at no time exceed $10,000,000;

          (b) Permitted Investments;

          (c) investments by the Borrower or any Subsidiary existing on the date
hereof and identified on Schedule 6.04;

          (d) Equity Interests in Subsidiaries owned as of the Effective Date or in
Subsidiaries formed or created by Borrower or a Subsidiary after the Effective
Date; provided that the Non-Guarantor Amount shall at no time exceed
$10,000,000;

AMENDED AND RESTATED CREDIT AGREEMENT, Page 44

 

          (e) loans or advances and other evidence of Indebtedness including any
Receivable Financing Amount and any promissory note evidencing such amount made
by the Borrower to any Subsidiary, by any Subsidiary to the Borrower or by any
Subsidiary to any other Subsidiary, in each case to the extent permitted by
Section 6.01(c);

          (f) loans and advances to directors, officers, consultants or employees as
payroll advances or for business expenses incurred in the ordinary course of
business or for other purposes so long as the aggregate principal amount of the
loans and advances made for such other purposes does not exceed $1,000,000 at
any one time outstanding;

          (g) Guaranties constituting Indebtedness permitted by Section 6.01;

          (h) Acquisitions so long as:

               (i) no Default exists or would result therefrom;

               (ii) the target company is involved in a similar type of business
activities as the Borrower or the Subsidiary;

               (iii) Borrower shall have: (A) completed customary due diligence on the
acquisition target, including due diligence as to compliance with all laws,
including without limitation Environmental Laws, and provided the
Administrative Agent, if requested by the Administrative Agent, reasonable
evidence thereof, and (B) provided the Administrative Agent and each Lender, if
requested by the Administrative Agent, with copies of the financial statements
(which to the extent available, shall be audited financial statements) of the
acquisition target for the most recent twelve (12) month period prior to the
closing of the Acquisition and the interim financial statements of the
acquisition target, each containing at a minimum a balance sheet, statement of
income, and a statement of cash flow;

               (iv) Such Acquisition has been: (i) in the event a corporation or its
assets is the acquisition target, either (x) approved by the Board of Directors
of the corporation which is the acquisition target, or (y) recommended by such
Board of Directors to the shareholders of such acquisition target, (ii) in the
event a partnership is the acquisition target, approved by a majority (by
percentage of voting power) of the partners of the acquisition target, (iii) in
the event an organization or entity other than a corporation or partnership is
the acquisition target, approved by a majority (by percentage of voting power)
of the governing body, if any, or by a majority (by percentage of ownership
interest) of the owners of the acquisition target or (iv) in the event the
corporation, partnership or other organization or entity which is the
acquisition target is in bankruptcy, approved by the bankruptcy court or
another court of competent jurisdiction;

               (v) the total Purchase Price (as defined below) paid or to be paid for the
proposed Acquisition in question does not exceed a dollar amount equal to 30%
of the Borrower’s Consolidated Tangible Net Worth, determined as of the date of
each acquisition based on the most recent financial statements then available
(the term “Purchase Price” means, as of any date of determination and with
respect to a proposed Acquisition or acquisition of other Equity Interests, the
purchase price to be paid for the target, its assets or such Equity Interests,
including all cash consideration paid (whether classified as purchase price,
noncompete or consulting payments or otherwise), the value of all other assets
to be transferred by the purchaser in connection with such acquisition to the
seller (including any stock issued to the seller) all valued in accordance with
the applicable purchase agreement and the outstanding principal amount of all
Indebtedness of the target or the seller assumed or acquired in connection with
such acquisition);

AMENDED AND RESTATED CREDIT AGREEMENT, Page 45

 

               (vi) Borrower shall have provided to the Administrative Agent and each
Lender prior to or on the date that the proposed Acquisition is to be
consummated, among other documents relating to the Acquisition in question
reasonably requested by the Administrative Agent, a certificate of a Financial
Officer: (A) certifying that no Default exists or could reasonably be expected
to occur as a result of the proposed Acquisition, and (B) demonstrating
compliance with the criteria set forth in the next clause and that as of the
date of any such Acquisition, the Borrower is and, on a pro forma basis after
giving effect to the Acquisition and the incurrence or assumption of any
Indebtedness in connection therewith will be, in compliance with the financial
covenants set forth in Sections 6.09 and 6.10 of this Agreement; and

               (vii) After giving proforma effect to any Indebtedness incurred or
acquired in connection with the Acquisition and any Consolidated EBITDA of the
target to be acquired or whose assets are to be acquired (to the extent that
such Consolidated EBITDA can be established from audited financial statements
delivered to the Administrative Agent and the Lenders), Borrower shall have a
Leverage Ratio of no more than 2.25 to 1.00 calculated in the same manner as in
Section 6.10 but on a pro forma basis as set forth in this clause for the most
recently ended fiscal quarter of Borrower prior to the date of the proposed
Acquisition; and

          (i) To the extent not otherwise permitted by the foregoing clause (h), the
acquisitions of all of the Equity Interest in Illinois Cement Company and
Texas-Lehigh Cement Company, L.P. so long as:

               (i) no Default exists or would result therefrom;

               (ii) Borrower shall have provided the Administrative Agent and each Lender
copies of the financial statements (which to the extent available, shall be
audited financial statements) of the acquisition target for the most recent
twelve (12) month period prior to the closing of the Acquisition and the
interim financial statements of the acquisition target, each containing at a
minimum a balance sheet, statement of income, and a statement of cash flow;

               (iii) Borrower shall have provided to the Administrative Agent and each
Lender prior to or on the date that the proposed Acquisition is to be
consummated, among other documents relating to the Acquisition in question
reasonably requested by the Administrative Agent, a certificate of a Financial
Officer of the Borrower (A) certifying that no Default exists or could
reasonably be expected to occur as a result of the proposed Acquisition, and
(B) demonstrating compliance with the criteria set forth in the next clause and
that as of the date of any such Acquisition and immediately following such
Acquisition, the Borrower is and, on a pro forma basis after giving effect to
the Acquisition and the incurrence or assumption of any Indebtedness in
connection therewith will be, in compliance with the financial covenants set
forth in Sections 6.09 and 6.10 of this Agreement;

               (iv) after giving proforma effect to any Indebtedness incurred or acquired
in connection with the Acquisition and any Consolidated EBITDA of the target to
be acquired (to the extent that such Consolidated EBITDA can be established
from audited financial statements delivered to the Administrative Agent and the
Lenders and only to the extent such Consolidated EBITDA is not already included
in the Borrower’s consolidated financial statements), Borrower shall have a
Leverage Ratio of no more than 2.25 to 1.00 calculated in the same manner as in
Section 6.10 but on a pro forma basis as set forth in this clause for the most
recently ended fiscal quarter of Borrower prior to the date of the proposed
Acquisition.

     Section 6.05. Swap Agreements. The Borrower will not, and will not permit
any of the Subsidiaries to, enter into any Swap Agreement, except (a) Swap
Agreements entered into to hedge or mitigate risks to which the Borrower or any
Subsidiary has actual exposure (other than those in respect of

AMENDED AND RESTATED CREDIT AGREEMENT, Page 46

 

Equity Interests of the Borrower or any of the Subsidiaries), and (b) Swap
Agreements entered into in order to effectively cap, collar or exchange
interest rates (from fixed to floating rates, from one floating rate to another
floating rate or otherwise) with respect to any interest-bearing liability or
investment of the Borrower or any Subsidiary.

     Section 6.06. Restricted Payments; Prepayments of Indebtedness.

          (a) The Borrower will not, and will not permit any of the Subsidiaries to,
declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment, except:

               (i) the Borrower may declare and pay dividends or make other distributions
with respect to its capital stock payable solely in additional shares of its
capital stock or warrants, options or other rights to acquire capital stock;

               (ii) Subsidiaries may declare and pay dividends or make other
distributions ratably with respect to their capital stock;

               (iii) the Borrower and the Subsidiaries may make Restricted Payments
pursuant to and in accordance with (or otherwise under) stock option plans or
other benefit plans for directors, officers, consultants or employees of the
Borrower and the Subsidiaries;

               (iv) the purchase or redemption by the Borrower of capital stock of the
Borrower out of the net cash proceeds of a substantially concurrent issue or
sale of capital stock by the Borrower;

               (v) Borrower may declare and make a Restricted Payment on any date if on
the date of the declaration thereof, on the date of the payment thereof and
immediately after giving effect thereto: (A) no Default exists or would result
therefrom; and (B) neither the Borrower nor any Subsidiary has any Indebtedness
(other than Indebtedness relating to letters of credit and Indebtedness of the
type described in clauses (c), (d), (f), (i), (j) and (k) of Section 6.01)
outstanding;

               (vi) the Borrower may declare and pay cash dividends in an aggregate
amount of up to $25,000,000 each fiscal year if no Default exists or would
result therefrom;

               (vii) In any fiscal quarter of any fiscal year, the Borrower may declare
and make other Restricted Payments not otherwise permitted by this Section so
long as: (A) no Default exists or would result therefrom as of the date of the
declaration and payment thereof; and (B) the aggregate amount of all such
Restricted Payments made during a fiscal quarter under the permissions of this
clause (vii) does not exceed:

     (1) the total of:

     (x) $75,000,000; plus

     (y) 100% of the Borrower’s Consolidated Net Income for the
immediately preceding fiscal year; minus

     (y) all Restricted Payments previously made under the
permissions of clause (vi) above and this clause (vii) in the
current fiscal year in which such proposed Restricted Payment is to
be paid,

if the Borrower shall have a Leverage Ratio of no more than 2.00 to 1.00
as calculated: (i) on a pro forma basis; (ii) after giving effect to any
Indebtedness incurred in connection with the

AMENDED AND RESTATED CREDIT AGREEMENT, Page 47

 

proposed Restricted Payment (including any Indebtedness incurred under
this Agreement) and (iii) for the most recently ended fiscal quarter of
the Borrower prior to the date of the proposed Restricted Payment; or

     (2) the total of 50% of the Borrower’s Consolidated Net Income for
the immediately preceding fiscal year minus all Restricted Payments
previously made under the permissions of clause (vi) above and this
clause (vii) in the current fiscal year in which such proposed Restricted
Payment is to be paid, if the Borrower shall have a Leverage Ratio of
more than 2.00 to 1.00 as calculated: (x) on a pro forma basis; (y) after
giving pro forma effect to any Indebtedness incurred in connection with
the proposed Restricted Payment (including any Indebtedness incurred
under this Agreement) and (z) for the most recently ended fiscal quarter
of the Borrower prior to the date of the proposed Restricted Payment.

          (b) If a Default exists, the Borrower will not, nor will it permit any
Subsidiary to, make or agree to pay or make, directly or indirectly, any
payment or other distribution (whether in cash, securities or other property)
of or in respect of principal of or interest on any Indebtedness of Borrower or
any Subsidiary, or any payment or other distribution (whether in cash,
securities or other property), including any sinking fund or similar deposit,
on account of the purchase, redemption, retirement, acquisition, cancellation
or termination of any Indebtedness of Borrower or any Subsidiary, except:

               (i) payment of Indebtedness created under the Loan Documents;

               (ii) payment of regularly scheduled interest, principal or other payments
as and when due in respect of any Indebtedness;

               (iii) refinancing of Indebtedness to the extent permitted by Section 6.01;
and

               (iv) payment of secured Indebtedness that becomes due as a result of the
voluntary sale or transfer of the property or assets securing such
Indebtedness.

     Section 6.07. Transactions with Affiliates. The Borrower will not, and
will not permit any of the Subsidiaries to, sell, lease or otherwise transfer
any property or assets to, or purchase, lease or otherwise acquire any property
or assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) in the ordinary course of business at prices and on
terms and conditions not less favorable to the Borrower or such Subsidiary than
could be obtained on an arm’s-length basis from unrelated third parties, (b)
transactions between or among the Borrower and the Guarantors not involving any
other Affiliate, (c) any Restricted Payment permitted by Section 6.06, (d)
Indebtedness permitted by clauses (c), (f) and (l)(i) of Section 6.01, (e)
Acquisitions permitted by Section 6.04(i) provided that such Acquisitions are
on terms and conditions not less favorable to the Borrower and the Subsidiaries
than could be obtained on an arm’s-length basis from unrelated third parties
and (f) transactions between or among Borrower and its Affiliates in connection
with Receivable Securitization Financings permitted by and consummated in
accordance with Section 6.01(g).

     Section 6.08. Restrictive Agreements. The Borrower will not, and will not
permit any of the Subsidiaries to, directly or indirectly, enter into, incur or
permit to exist any agreement or other arrangement that prohibits, restricts or
imposes any condition upon (a) the ability of the Borrower or any Subsidiary to
create, incur or permit to exist any Lien upon any of its property or assets,
or (b) the ability of any Subsidiary to pay dividends or other distributions
with respect to any shares of its capital stock or to make or repay loans or
advances to the Borrower or any other Subsidiary or to Guaranty Indebtedness of
the Borrower or any other Subsidiary; provided that (i) the foregoing shall not
apply to restrictions and conditions imposed by law or by this Agreement, (ii)
the foregoing shall not apply to restrictions and conditions existing on the
date hereof identified on Schedule 6.08 (but shall apply to any extension or

AMENDED AND RESTATED CREDIT AGREEMENT, Page 48

 

renewal of, or any amendment or modification expanding the scope of, any
such restriction or condition), (iii) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the
sale of the assets of, or an Equity Interest in, a Subsidiary pending such
sale, provided such restrictions and conditions apply only to the Subsidiary
that is to be sold and such sale is permitted hereunder, (iv) clause (a) of the
foregoing shall not apply to restrictions or conditions imposed by (1) any
agreement relating to secured Indebtedness permitted by this Agreement if such
restrictions or conditions apply only to the property or assets securing such
Indebtedness or (2) Liens permitted by Section 6.02 if such restrictions or
conditions apply only to the property or assets that are the subject of such
Liens, (v) clause (a) of the foregoing shall not apply to customary provisions
in leases and other contracts restricting the assignment thereof, (vi) clause
(b) of the foregoing shall not apply to customary provisions contained in
agreements entered into in connection with Receivables Securitization
Financings permitted by Section 6.01(g) that impose restrictions on the ability
of the special purpose entity party thereto to declare, pay or set aside funds
for the making of any distribution in respect of the Equity Interests issued by
such entity or to make or repay loans or advances to or guaranty indebtedness
of the Borrower or any other Subsidiary, and (vii) the foregoing shall not
apply to restrictions and conditions imposed by the documentation executed in
connection with a financing permitted by clauses (iii) of Section 6.01(l) as
long as such restrictions and conditions are no more onerous to the Borrower
and the Subsidiaries, and no more beneficial to the parties entitled to the
protections thereof, than the restrictions and conditions hereunder.

     Section 6.09. Interest Coverage Ratio. The Borrower will not permit the
ratio, determined as of the end of each of its fiscal quarters beginning with
the fiscal quarter ended September 30, 2004, of (i) Consolidated EBIT for the
then most-recently ended four fiscal quarters to (ii) its Consolidated Interest
Expense for such four fiscal quarters to be less than 3.00 to 1.00.

     Section 6.10. Leverage Ratio. The Borrower will not permit the ratio,
determined as of the end of each of its fiscal quarters beginning with the
fiscal quarter ended September 30, 2004, of (i) its Consolidated Indebtedness
as of such fiscal quarter end to (ii) its Consolidated EBITDA for the then
most-recently ended four fiscal quarters to be greater than 2.50 to 1.00.

     Section 6.11. Sale and Lease-Back Transactions. The Borrower will not,
and will not permit any Subsidiary to, enter into any arrangement, directly or
indirectly, whereby it shall sell or transfer any property, real or personal,
used or useful in its business, whether now owned or hereafter acquired, and
thereafter rent or lease such property or other property that it intends to use
for substantially the same purpose or purposes as the property sold or
transferred, except for any such sale of any fixed or capital assets that is
made for cash consideration in an amount not less than the cost of such fixed
or capital asset and is consummated within 90 days after the Borrower or such
Subsidiary acquires or completes the construction of such fixed or capital
asset.

ARTICLE VII.

Events of Default

     If any of the following events (“Events of Default”) shall occur:

          (a) The Borrower shall fail to pay any principal of any Loan when and as
the same shall become due and payable, whether at the due date thereof or at a
date fixed for prepayment thereof or otherwise. The Borrower shall fail to pay
any reimbursement obligation in respect of any LC Disbursement when and as the
same shall become due and payable, and such failure shall continue unremedied
for one Business Day;

AMENDED AND RESTATED CREDIT AGREEMENT, Page 49

 

          (b) The Borrower shall fail to pay any interest on any Loan or any fee or
any other amount (other than an amount referred to in clause (a) of this
Article) payable under this Agreement, when and as the same shall become due
and payable, and such failure shall continue unremedied for a period of five
Business Days;

          (c) any representation or warranty made or deemed made by or on behalf of
the Borrower or any Subsidiary in or in connection with this Agreement or any
amendment or modification hereof or waiver hereunder, or in any report,
certificate, financial statement or other document furnished pursuant to or in
connection with this Agreement or any amendment or modification hereof or
waiver hereunder, shall prove to have been incorrect in any material respect
when made or deemed made;

          (d) the Borrower shall fail to observe or perform any covenant, condition
or agreement contained in Sections 5.01(a), (b) or (c), 5.02, 5.03 (with
respect to the Borrower’s existence) or 5.08 or in Article VI;

          (e) the Borrower shall fail to observe or perform any covenant, condition
or agreement contained in this Agreement (other than those specified in clause
(a), (b) or (d) of this Article), and such failure shall continue unremedied
for a period of 15 days after written notice thereof from the Administrative
Agent to the Borrower (which notice will be given at the request of any
Lender);

          (f) the Borrower or any Subsidiary shall fail to make any payment (whether
of principal or interest and regardless of amount) in respect of any Material
Indebtedness, when and as the same shall become due and payable (after
expiration of any applicable grace period);

          (g) any event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that enables or
permits (with or without the giving of notice, the lapse of time or both) the
holder or holders of any Material Indebtedness or any trustee or agent on its
or their behalf to cause any Material Indebtedness to become due, or to require
the prepayment, repurchase, redemption or defeasance thereof, prior to its
scheduled maturity; provided that this clause (g) shall not apply to secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of
the property or assets securing such Indebtedness;

          (h) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other relief
in respect of the Borrower or any Subsidiary or its debts, or of a substantial
part of its assets, under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect or (ii) the appointment
of a receiver, trustee, custodian, sequestrator, conservator or similar
official for the Borrower or any Subsidiary or for a substantial part of its
assets, and, in any such case, such proceeding or petition shall continue
undismissed for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;

          (i) the Borrower or any Subsidiary shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other
relief under any Federal, state or foreign bankruptcy, insolvency, receivership
or similar law now or hereafter in effect, (ii) consent to the institution of,
or fail to contest in a timely and appropriate manner, any proceeding or
petition described in clause (h) of this Article, (iii) apply for or consent to
the appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Borrower or any Subsidiary or for a substantial part
of its assets, (iv) file an answer admitting the material allegations of a
petition filed against it in any such proceeding, (v) make a general assignment
for the benefit of creditors or (vi) take any action for the purpose of
effecting any of the foregoing;

          (j) the Borrower or any Subsidiary shall become unable, admit in writing
its inability or fail generally to pay its debts as they become due;

AMENDED AND RESTATED CREDIT AGREEMENT, Page 50

 

          (k) one or more judgments for the payment of money in an aggregate amount
in excess of $2,500,000 shall be rendered against the Borrower, any Subsidiary
or any combination thereof and the same shall remain undischarged for a period
of 60 consecutive days during which execution shall not be effectively stayed,
or any action shall be legally taken by a judgment creditor to attach or levy
upon any assets of the Borrower or any Subsidiary to enforce any such judgment;

          (l) an ERISA Event shall have occurred that, in the opinion of the
Required Lenders, when taken together with all other ERISA Events that have
occurred, could reasonably be expected to result in a Material Adverse Effect;

          (m) a Change in Control shall occur; or

          (n) the Subsidiary Guaranty shall for any reason cease to be in full force
and effect and valid, binding and enforceable in accordance with its terms
after its date of execution, or the Borrower or any Material Subsidiary shall
so state in writing;

then, and in every such event (other than an event with respect to the Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either
or both of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments shall terminate
immediately, and (ii) declare the Loans then outstanding to be due and payable
in whole (or in part, in which case any principal not so declared to be due and
payable may thereafter be declared to be due and payable), and thereupon the
principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall become due and payable immediately, without presentment,
demand, protest, notice of intent to accelerate, notice of acceleration or
other notice of any kind, all of which are hereby waived by the Borrower; and
in case of any event with respect to the Borrower described in clause (h) or
(i) of this Article, the Commitments shall automatically terminate and the
principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrower accrued hereunder, shall
automatically become due and payable, without presentment, demand, protest
notice of intent to accelerate, notice of acceleration or other notice of any
kind, all of which are hereby waived by the Borrower.

ARTICLE VIII.

The Administrative Agent

     Each of the Lenders and each Issuing Bank hereby irrevocably appoints (and
continues the appointment under the terms of the Prior Agreement) the
Administrative Agent as its (and for purposes of the Subsidiary Guaranty, its
Affiliates) agent and authorizes the Administrative Agent to take such actions
on its behalf and its Affiliates behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms hereof and of the Subsidiary
Guaranty, together with such actions and powers as are reasonably incidental
thereto.

     The bank serving as the Administrative Agent hereunder shall have the same
rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent, and such bank
and its Affiliates may accept deposits from, lend money to and generally engage
in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

     The Administrative Agent shall not have any duties or obligations except
those expressly set forth herein. Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject

AMENDED AND RESTATED CREDIT AGREEMENT, Page 51

 

to any fiduciary or other implied duties, regardless of whether a Default
has occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby that the
Administrative Agent is required to exercise in writing as directed by the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02), and (c) except
as expressly set forth herein, the Administrative Agent shall not have any duty
to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of the Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be
liable for any action taken or not taken by it with the consent or at the
request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section
9.02) or in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default
unless and until written notice thereof is given to the Administrative Agent by
the Borrower or a Lender, and the Administrative Agent shall not be responsible
for or have any duty to ascertain or inquire into (i) any statement, warranty
or representation made in or in connection with this Agreement, (ii) the
contents of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative
Agent.

     The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing believed by it to be
genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. The Administrative Agent may consult
with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

     The Administrative Agent may perform any and all its duties and exercise
its rights and powers by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all its duties and exercise its rights and powers through their
respective Related Parties. The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

     Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders, the Issuing Banks and the Borrower. Upon any
such resignation, the Required Lenders shall have the right, with the approval
of the Borrower, to appoint a successor. If no successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Banks, appoint a successor Administrative Agent. Upon
the acceptance of its appointment as Administrative Agent hereunder by a
successor, such successor shall succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such

AMENDED AND RESTATED CREDIT AGREEMENT, Page 52

 

successor. After the Administrative Agent’s resignation hereunder, the
provisions of this Article and Section 9.03 shall continue in effect for the
benefit of such retiring Administrative Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while it was acting as Administrative Agent.

     Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any related agreement or any
document furnished hereunder or thereunder. By accepting the benefits of the
Subsidiary Guaranty, each Affiliate of the Lenders who is owed any obligations
guarantied pursuant to the terms thereof agrees to be bound by the Loan
Documents as if it were a Lender.

     Bank of America, N.A. and PNC Bank, N.A. have been designated as
“co-syndication agents” hereunder and Wells Fargo Bank, N.A. and SunTrust Bank
have been designated as “co-documentation agents” hereunder. No such Lender is
an agent for the Lenders and no such Lender shall have any obligation
hereunder, in each case, other than those existing in its capacity as a Lender.
Without limiting the foregoing, no such Lender shall have or be deemed to have
any fiduciary relationship with or duty to any Lender.

ARTICLE IX.

Miscellaneous

     Section 9.01. Notices. (a) Except in the case of notices and other
communications expressly permitted to be given by telephone (and subject to
paragraph (b) below), all notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopy, as
follows:

               (i) if to the Borrower, to it at 3811 Turtle Creek Blvd., Suite 1100,
Dallas, Texas, 75219, Attention of Arthur R. Zunker, Jr., (Telecopy No.
214-432-2110); and

               (ii) if to the Administrative Agent, JPMorgan Chase Bank, N.A. as an
Issuing Bank or the Swingline Lender, to JPMorgan Chase Bank, N.A. 2200 Ross
Avenue, 3rd Floor, Dallas, Texas, 75201, Attention of David L. Howard,
(Telecopy No. 214/965-2044), with a copy to JPMorgan Chase Bank, N.A., 1111
Fannin Street, 10th Floor, Houston, TX 77002; Attention: Bernie Gonzales,
Telephone 713/750-3755; Telecopy No. 713/750-2823; and

               (iii) if to any other Lender, to it at its address (or telecopy number)
set forth in its Administrative Questionnaire.

          (b) Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or
the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be
limited to particular notices or communications. Any party hereto may change
its address or telecopy number for notices and other communications hereunder
by notice to the other parties hereto. All notices

AMENDED AND RESTATED CREDIT AGREEMENT, Page 53

 

and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of
receipt.

     Section 9.02. Waivers; Amendments.

          (a) No failure or delay by the Administrative Agent, any Issuing Bank or
any Lender in exercising any right or power hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power,
or any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent, the
Issuing Banks and the Lenders hereunder are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any
provision of this Agreement or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent, any Lender or any
Issuing Bank may have had notice or knowledge of such Default at the time.

          (b) Neither this Agreement nor any provision hereof may be waived, amended
or modified except: (x) pursuant to an Increased Commitment Supplement executed
in accordance with Section 2.19 which only needs to be signed by the Borrower,
the Administrative Agent and the Lenders increasing or providing new
Commitments thereunder if the Increased Commitment Supplement does not increase
the aggregate amount of the Commitments to an amount in excess of $500,000,000
and (y) in the case of this Agreement and any circumstance other than as
described in clause (x), pursuant to an agreement or agreements in writing
entered into by the Borrower and the Required Lenders or, in the case of any
other Loan Document, pursuant to an agreement or agreements in writing entered
into by the parties thereto, in each case with the consent of the Required
Lenders; provided that no such agreement shall (i) increase the Commitment of
any Lender without the written consent of such Lender, (ii) reduce the
principal amount of any Loan or LC Disbursement or reduce the rate of interest
thereon, or reduce any fees payable hereunder, without the written consent of
each Lender affected thereby, (iii) postpone the scheduled date of payment of
the principal amount of any Loan or LC Disbursement, or any interest thereon,
or any fees payable hereunder, or reduce the amount of, waive or excuse any
such payment, or postpone the scheduled date of expiration of any Commitment,
without the written consent of each Lender affected thereby, (iv) change
Section 2.17(b) or (c) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender, (v)
change any of the provisions of this Section or the definition of “Required
Lenders” or any other provision hereof specifying the number or percentage of
Lenders required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender, or (vi) release any Guarantor from its obligations under the
Subsidiary Guaranty except in connection with a disposition of such Subsidiary
otherwise permitted hereby (in which case the Administrative Agent shall be
authorized to release the applicable Guarantor without the consent or approval
of any Lender); provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of the Administrative Agent, an Issuing
Bank or the Swingline Lender hereunder without the prior written consent of the
Administrative Agent, the applicable Issuing Bank or the Swingline Lender, as
the case may be. The Loan Documents may be amended or otherwise modified
without the consent or agreement of any Affiliate of any Lender.

     Section 9.03. Expenses; Indemnity; Damage Waiver.

          (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses
incurred by the Administrative Agent and its Affiliates, including the
reasonable fees, charges and disbursements of

AMENDED AND RESTATED CREDIT AGREEMENT, Page 54

 

counsel for the Administrative Agent, in connection with the syndication
of the credit facilities provided for herein, the preparation, execution,
delivery and administration of this Agreement or any amendments, modifications
or waivers of the provisions hereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by each Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder and (iii) all out-of-pocket expenses incurred by the
Administrative Agent, each Issuing Bank or any Lender, including the fees,
charges and disbursements of any counsel for the Administrative Agent, any
Issuing Bank or any Lender, in connection with the enforcement or protection of
its rights in connection with this Agreement, including its rights under this
Section, or in connection with the Loans made or Letters of Credit issued
hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.

          (b) SUBJECT TO CLAUSE (d) BELOW, THE BORROWER SHALL INDEMNIFY THE
ADMINISTRATIVE AGENT, EACH ISSUING BANK AND EACH LENDER, AND EACH RELATED PARTY
OF ANY OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”)
AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS,
DAMAGES, LIABILITIES AND RELATED EXPENSES, INCLUDING THE FEES, CHARGES AND
DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE, INCURRED BY OR ASSERTED
AGAINST ANY INDEMNITEE ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF
(I) THE EXECUTION OR DELIVERY OF THE PRIOR AGREEMENT, THIS AGREEMENT OR ANY
AGREEMENT OR INSTRUMENT CONTEMPLATED THEREBY OR HEREBY, THE PERFORMANCE BY THE
PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREBY OR THE
CONSUMMATION OF THE TRANSACTIONS OR ANY OTHER TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY, (II) ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS
THEREFROM (INCLUDING ANY REFUSAL BY AN ISSUING BANK TO HONOR A DEMAND FOR
PAYMENT UNDER A LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH
SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT),
(III) ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR
FROM ANY PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF THE SUBSIDIARIES,
OR ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE BORROWER OR ANY OF THE
SUBSIDIARIES, OR (IV) ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION,
INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY AND REGARDLESS OF WHETHER ANY INDEMNITEE IS
A PARTY THERETO; PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE,
BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR
RELATED EXPENSES RESULTED FROM THE GROSS NEGLIGENCE, UNLAWFUL CONDUCT OR
WILLFUL MISCONDUCT OF SUCH INDEMNITEE. IT IS THE EXPRESSED INTENT OF THE
PARTIES HERETO THAT THE INDEMNITY IN THIS CLAUSE (b) SHALL, AS TO ANY
INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES,
LIABILITIES OR RELATED EXPENSES ARE DETERMINED TO HAVE RESULTED FROM THE SOLE
OR CONTRIBUTORY NEGLIGENCE OF SUCH INDEMNITEE.

          (c) To the extent that the Borrower fails to pay any amount required to be
paid by it to the Administrative Agent, an Issuing Bank or the Swingline Lender
under paragraph (a) or (b) of this Section, each Lender severally agrees to pay
to the Administrative Agent, the applicable Issuing Bank or the Swingline
Lender, as the case may be, such Lender’s Applicable Percentage (determined as
of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount; provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense,

AMENDED AND RESTATED CREDIT AGREEMENT, Page 55

 

as the case may be, was incurred by or asserted against the Administrative
Agent, the Issuing Bank or the Swingline Lender in its capacity as such.

          (d) To the extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, and each
Indemnitee shall not assert, and hereby waives, any claim against Borrower or
any Guarantor, on any theory of liability, for special, indirect, consequential
or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or
instrument contemplated hereby, the Transactions, any Loan or Letter of Credit
or the use of the proceeds thereof.

          (e) All amounts due under this Section shall be payable promptly after
written demand therefor and may be funded as a Swingline Loan or Revolving
Loan.

     Section 9.04. Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby (including any Affiliate of JPMorgan Chase Bank, N.A. that
issues any Letter of Credit), except that (i) the Borrower may not assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of each Lender (and any attempted assignment or transfer by the
Borrower without such consent shall be null and void) and (ii) no Lender may
assign or otherwise transfer its rights or obligations hereunder except in
accordance with this Section or in accordance with Section 2.18. Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of JPMorgan Chase Bank, N.A. that
issues any Letter of Credit), Participants (to the extent provided in paragraph
(c) of this Section) and, to the extent expressly contemplated hereby, the
Related Parties of each of the Administrative Agent, each Issuing Bank and the
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below,
any Lender may assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it) with the prior written
consent (such consent not to be unreasonably withheld) of:

                    (A) the Borrower, provided that no consent of the Borrower shall be
required for an assignment to a Lender, an Affiliate of a Lender, an Approved
Fund or, if an Event of Default has occurred and is continuing, any other
assignee; and

                    (B) the Administrative Agent, provided that no consent of the
Administrative Agent shall be required for an assignment to a Lender, an
Affiliate of a Lender, or an Approved Fund.

               (ii) Assignments shall be subject to the following additional conditions:

                    (A) except in the case of an assignment to a Lender or an Affiliate of a
Lender or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans, the amount of the Commitment or Loans of the
assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of the
Borrower and the Administrative Agent otherwise consent, provided that no such
consent of the Borrower shall be required if an Event of Default has occurred
and is continuing;

AMENDED AND RESTATED CREDIT AGREEMENT, Page 56

 

                    (B) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under
this Agreement;

                    (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing
and recordation fee of $3,500; and

                    (D) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.

For the purposes of this Section 9.04(b), the term “Approved Fund” has the
following meaning:

     “Approved Fund” means any Person (other than a natural
person) that is engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or
managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or an Affiliate of an entity that administers or manages a
Lender.

               (iii) Subject to acceptance and recording thereof pursuant to paragraph
(b)(iv) of this Section, from and after the effective date specified in each
Assignment and Assumption the assignee thereunder shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Assumption, have
the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.14, 2.15, 2.16 and 9.03). Any assignment or transfer by
a Lender of rights or obligations under this Agreement that does not comply
with this Section 9.04 shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (c) of this Section.

               (iv) The Administrative Agent, acting for this purpose as an agent of the
Borrower, shall maintain at one of its offices a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitment of, and principal amount of the
Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, each Issuing Bank and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower, each Issuing Bank and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

               (v) Upon its receipt of a duly completed Assignment and Assumption
executed by an assigning Lender and an assignee, the assignee’s completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register;
provided that if either the assigning Lender or the assignee shall have failed
to make any payment required to be made by it pursuant to Section 2.04(c),
2.05(d), or (e), 2.06 (b), 2.17(d) or 9.03(c), the Administrative Agent shall
have no obligation to accept such Assignment and Assumption and record the
information therein in the Register unless and until such payment shall have
been made in full, together with all accrued interest thereon. No assignment
shall be

AMENDED AND RESTATED CREDIT AGREEMENT, Page 57

 

effective for purposes of this Agreement unless it has been recorded in
the Register as provided in this paragraph.

          (c) (i) Any Lender may, without the consent of the Borrower, the
Administrative Agent, any Issuing Bank or the Swingline Lender, sell
participations to one or more banks or other entities (a “Participant”) in all
or a portion of such Lender’s rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (C) the Borrower, the
Administrative Agent, each Issuing Bank and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver described in the first proviso to Section 9.02(b) that affects such
Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Sections 2.14, 2.15
and 2.16 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section. To the
extent permitted by law, each Participant also shall be entitled to the
benefits of Section 9.08 as though it were a Lender, provided such Participant
agrees to be subject to Section 2.17(c) as though it were a Lender.

               (ii) A Participant shall not be entitled to receive any greater payment
under Section 2.14 or 2.16 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Borrower’s
prior written consent. A Participant that would be a Foreign Lender if it were
a Lender shall not be entitled to the benefits of Section 2.16 unless the
Borrower is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrower, to comply with Section
2.16(e) as though it were a Lender.

          (d) Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge
or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

     Section 9.05. Survival. All covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making of any
Loans and issuance of any Letters of Credit, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Administrative Agent, any Issuing Bank or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time
any credit is extended hereunder, and shall continue in full force and effect
as long as the principal of or any accrued interest on any Loan or any fee or
any other amount payable under this Agreement is outstanding and unpaid or any
Letter of Credit is outstanding and so long as the Commitments have not expired
or terminated. The provisions of Sections 2.14, 2.15, 2.16 and 9.03 and
Article VIII shall survive and remain in full force and effect regardless of
the consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 58

 

     Section 9.06. Counterparts; Integration; Effectiveness. This Agreement
may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract. THIS AGREEMENT, THE
OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND ANY SEPARATE LETTER
AGREEMENTS WITH RESPECT TO FEES PAYABLE TO THE ADMINISTRATIVE AGENT EMBODY THE
FINAL, ENTIRE AGREEMENT AMONG THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF
AND SUPERSEDE ANY AND ALL PREVIOUS COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND
UNDERSTANDINGS, WHETHER ORAL OR WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF
(INCLUDING WITHOUT LIMITATION, THE PRIOR AGREEMENT) AND MAY NOT BE CONTRADICTED
OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OR DISCUSSIONS OF THE PARTIES HERETO THERE ARE NO UNWRITTEN ORAL AGREEMENTS
AMONG THE PARTIES HERETO. This Agreement amends and restates in its entirety
the Prior Agreement. However, for all matters arising prior to the Effective
Date (including, without limitation, the accrual and payment of interest and
fees, and matters relating to indemnification and compliance with financial
covenants), the terms of the Prior Agreement (as unmodified by this Agreement)
shall control and are hereby ratified and confirmed. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall
have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature
page of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement. Borrower represents and warrants that
as of the Effective Date there are no claims or offsets against or rights of
recoupment with respect to or defenses or counterclaims to its obligations
under the Prior Agreement. TO INDUCE THE LENDERS AND ADMINISTRATIVE AGENT TO
ENTER INTO THIS AGREEMENT, BORROWER WAIVES ANY AND ALL SUCH CLAIMS, OFFSETS,
RIGHTS OF RECOUPMENT, DEFENSES OR COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN,
ARISING PRIOR TO THE CLOSING DATE AND RELATING TO THE PRIOR AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

     Section 9.07. Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

     Section 9.08. Right of Setoff. If an Event of Default shall have occurred
and be continuing, each Lender and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other obligations at any time owing
by such Lender or Affiliate to or for the credit or the account of the Borrower
against any of and all the obligations of the Borrower now or hereafter
existing under this Agreement held by such Lender, irrespective of whether or
not such Lender shall have made any demand under this Agreement and although
such obligations may be unmatured. The rights of each Lender under this
Section are in addition to other rights and remedies (including other rights of
setoff) which such Lender may have.

     Section 9.09. Governing Law; Jurisdiction; Consent to Service of Process.

          (a) This Agreement shall be construed in accordance with and governed by
the law of the State of Texas.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 59

 

          (b) THE BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR
ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE STATE COURTS
OF THE STATE OF TEXAS SITTING IN DALLAS COUNTY AND OF THE UNITED STATES
DISTRICT COURT OF THE NORTHERN DISTRICT OF TEXAS, AND ANY APPELLATE COURT FROM
ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH
TEXAS STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF
THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
AGREEMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY ISSUING
BANK OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT AGAINST THE BORROWER OR ITS PROPERTIES IN THE COURTS
OF ANY JURISDICTION.

          (c) The Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement in any court referred to in
paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

     Section 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     Section 9.11. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

     Section 9.12. Confidentiality. Each of the Administrative Agent, the
Issuing Banks and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its and its Affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the

AMENDED AND RESTATED CREDIT AGREEMENT, Page 60

 

extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder,
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement and (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and
its obligations, (g) with the consent of the Borrower or (h) to the extent such
Information becomes publicly available other than as a result of a breach of
this Section or becomes available to the Administrative Agent, an Issuing Bank
or any Lender on a non-confidential basis from a source other than the Borrower
or any of its Affiliates; provided such source is not known by the receiving
party to be bound by a confidentiality agreement with or other contractual,
legal or fiduciary obligation of confidentiality to Borrower, or (i) to any
direct or indirect contractual counterparty with a Lender or its Affiliates in
a Swap Agreement or such counterparty’s professional advisor (so long as such
contractual counterparty or professional advisor to such contractual
counterparty agrees to be bound by the provisions of this Section 9.12);
provided that, unless specifically prohibited by applicable law or court order,
each Lender shall notify the Borrower of any request by any regulatory
authority or representative thereof or pursuant to legal process (other than
any such request in connection with any examination of the financial condition
of such Lender by such regulatory authority) for disclosure of any such
nonpublic information prior to disclosure of such information. For the
purposes of this Section, “Information” means all information received from the
Borrower or any of its Affiliates relating to the Borrower or any of the
Subsidiaries or their respective businesses; provided that, in the case of
information received from the Borrower after the date hereof, such information
is clearly identified at the time of delivery as confidential. Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

     Section 9.13. Maximum Interest Rate.

          (a) No interest rate specified in any Loan Document shall at any time
exceed the Maximum Rate. If at any time the interest rate (the “Contract
Rate”) for any obligation under the Loan Documents shall exceed the Maximum
Rate, thereby causing the interest accruing on such obligation to be limited to
the Maximum Rate, then any subsequent reduction in the Contract Rate for such
obligation shall not reduce the rate of interest on such obligation below the
Maximum Rate until the aggregate amount of interest accrued on such obligation
equals the aggregate amount of interest which would have accrued on such
obligation if the Contract Rate for such obligation had at all times been in
effect. As used herein, the term “Maximum Rate” means, at any time with
respect to any Lender, the maximum rate of nonusurious interest under
applicable law that such Lender may contract for, charge, reserve, or receive.
The Maximum Rate shall be calculated in a manner that takes into account any
and all fees, payments, and other charges contracted for, charged, reserved, or
received in connection with the Loan Documents that constitute interest under
applicable law. Each change in any interest rate provided for herein based
upon the Maximum Rate resulting from a change in the Maximum Rate shall take
effect without notice to Borrower at the time of such change in the Maximum
Rate. For purposes of determining the Maximum Rate under Texas law, the
applicable rate ceiling shall be the weekly rate ceiling described in, and
computed in accordance with, Chapter 303 of the Texas Finance Code.

          (b) No provision of any Loan Document shall require the payment or the
collection of interest in excess of the maximum amount permitted by applicable
law. If any excess interest is hereby provided for, or shall be adjudicated to
be so provided, in any Loan Document or otherwise in connection with this loan
transaction, the provisions of this Section shall govern and prevail and
neither Borrower nor the sureties, guarantors, successors, or assigns of
Borrower shall be obligated to pay the excess amount of

AMENDED AND RESTATED CREDIT AGREEMENT, Page 61

 

such interest or any other excess sum paid for the use, forbearance, or
detention of sums loaned pursuant hereto. In the event any Lender ever
receives, or collects, interest in excess of the maximum lawful amount of
interest, such amount which is or would be in excess of the maximum amount
permitted by applicable law shall be applied as a payment and reduction of the
principal of the obligations outstanding hereunder, and, if the principal of
the obligations outstanding hereunder has been paid in full or would be paid in
full by all or part of such application, any remaining excess shall forthwith
be paid to the Borrower. In determining whether or not the interest contracted
for, charged, reserved or received exceeds the Maximum Rate, Borrower and each
Lender shall, to the extent permitted by applicable law, (a) characterize any
non-principal payment as an expense, fee, or premium rather than as interest,
(b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread the total amount of interest contracted for,
charged, reserved and received throughout the entire contemplated term of the
obligations outstanding hereunder so that interest for the entire term does not
exceed the Maximum Rate.

          (c) The provisions of Chapter 346 of the Finance Code of Texas are
specifically declared by the parties hereto not to be applicable to this
Agreement or to the transactions contemplated hereby.

     Section 9.14. No Fiduciary Relationship. The relationship between the
Borrower and the Guarantors on the one hand and the Administrative Agent and
each Lender on the other is solely that of debtor and creditor, and neither the
Administrative Agent nor any Lender has any fiduciary or other special
relationship with either the Borrower or any Guarantor, and no term or
condition of any of the Loan Documents shall be construed so as to deem the
relationship between the Borrower and the Guarantors on the one hand and the
Administrative Agent and each Lender on the other to be other than that of
debtor and creditor.

     Section 9.15. Construction. The Borrower, the Guarantors (by its
execution of the Loan Documents to which it is a party), the Administrative
Agent and each Lender acknowledges that each of them has had the benefit of
legal counsel of its own choice and has been afforded an opportunity to review
the Loan Documents with its legal counsel and that the Loan Documents shall be
construed as if jointly drafted by the parties thereto.

     Section 9.16. Independence of Covenants. All covenants under the Loan
Documents shall be given independent effect so that if a particular action or
condition is not permitted by any of such covenants, the fact that it would be
permitted by an exception to, or be otherwise within the limitations of,
another covenant shall not avoid the occurrence of a Default if such action is
taken or such condition exists.

     Section 9.17. USA PATRIOT Act. Each Lender that is subject to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Act”) hereby notifies the Borrower that pursuant
to the requirements of the Act, it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
to identify the Borrower in accordance with the Act.

AMENDED AND RESTATED CREDIT AGREEMENT, Page 62

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	EAGLE MATERIALS INC. (formerly Centex

Construction Products, Inc.)

 	 
	 	By:  	/s/ Arthur R. Zunker, Jr
 	 
	 	 	Arthur R. Zunker, Jr., Chief Financial Officer 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

(formerly known as JPMorgan Chase Bank and 

successor by merger to Bank One, N.A.) 

individually and as Administrative Agent,

 	 
	 	By:  	/s/ David L. Howard
 	 
	 	 	David L. Howard, Vice President 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	PNC BANK, N.A.

 	 
	 	By:  	/s/ Dorothy G.W. Bailey
 	 
	 	 	Name:  	Dorothy G.W. Bailey 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	BANK OF TEXAS, N.A.

 	 
	 	By:  	/s/ Ryan Suchala
 	 
	 	 	Name:  	Ryan Suchala 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	SUNTRUST BANK

 	 
	 	By:  	/s/ Daniel S. Komitor
 	 
	 	 	Name:  	Daniel S. Komitor 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	BRANCH BANKING AND TRUST COMPANY

 	 
	 	By:  	/s/ John G. Reeves
 	 
	 	 	Name:  	John G. Reeves 	 
	 	 	Title:  	Assistant Vice President 	 
	 

AMENDED AND RESTATED CREDIT AGREEMENT, Page 63

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ David F. Higbee
 	 
	 	 	Name:  	David F. Higbee 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	

WELLS FARGO BANK, N.A.

 	 
	 	By:  	/s/ Lorrie Reynolds
 	 
	 	 	Name:  	Lorrie Reynolds 	 
	 	 	Title:  	AVP 	 
	 

	 	 	 	 	 
	 	BNP PARIBAS

 	 
	 	By:  	/s/ Jeff Tebeaux
 	 
	 	 	Name:  	Jeff Tebeaux 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Lloyd G. Cox
 	 
	 	 	Name:  	Lloyd G. Cox 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Michael F. Murray
 	 
	 	 	Name:  	Michael F. Murray 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY

 	 
	 	By:  	/s/ Paul H. Theiss
 	 
	 	 	Name:  	Paul H. Theiss 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Jeff P. Geisbauer
 	 
	 	 	Name:  	Jeff P. Geisbauer 	 
	 	 	Title:  	Corporate Banking Officer 	 
	 

	 	 	 	 	 

AMENDED AND RESTATED CREDIT AGREEMENT, Page 64

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A.

 	 
	 	By:  	/s/ Albert W. Kelley
 	 
	 	 	Name:  	Albert W. Kelley 	 
	 	 	Title:  	Vice President 	 
	 

AMENDED AND RESTATED CREDIT AGREEMENT, Page 65

 

LIST OF SCHEDULES AND EXHIBITS

Schedules:

	 	 	 	 	 
	Schedule 1.01(a)

	 	-
	 	Existing Letters of Credit
	Schedule 2.01

	 	-
	 	Commitments
	Schedule 3.05

	 	-
	 	Existing Liens
	Schedule 3.06

	 	-
	 	Disclosed Matters
	Schedule 3.12

	 	-
	 	Subsidiaries
	Schedule 3.13

	 	-
	 	Existing Indebtedness
	Schedule 6.04

	 	-
	 	Existing Investments
	Schedule 6.08

	 	-
	 	Existing Restrictions

Exhibits:

	 	 	 	 	 
	Exhibit A

	 	-
	 	Form of Assignment and Assumption
	Exhibit B

	 	-
	 	Form of Opinion of Borrower’s Counsel
	Exhibit C

	 	-
	 	Form of Guaranty Agreement
	Exhibit D

	 	-
	 	Form of Notice of Borrowing
	Exhibit E

	 	-
	 	Form of Increased Commitment Supplement

LIST OF SCHEDULES AND EXHIBITS, Solo Page

 

 

EXHIBIT A

TO

EAGLE MATERIALS INC.

AMENDED AND RESTATED CREDIT AGREEMENT

Form of Assignment and Assumption

EXHIBIT A, FORM OF ASSIGNMENT AND ASSUMPTION, Cover Page

 

 

ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (the “Assignment and Assumption”) is dated
as of the Effective Date set forth below and is entered into by and between
[Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the
“Assignee”). Capitalized terms used but not defined herein shall have the
meanings given to them in the Amended and Restated Credit Agreement identified
below (as amended, the “Credit Agreement”), receipt of a copy of which is
hereby acknowledged by the Assignee. The Standard Terms and Conditions set
forth in Annex 1 attached hereto are hereby agreed to and incorporated herein
by reference and made a part of this Assignment and Assumption as if set forth
herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below (i) all of the Assignor’s rights
and obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below (including any letters of credit, guaranties, and
swingline loans included in such facilities) and (ii) to the extent permitted
to be assigned under applicable law, all claims, suits, causes of action and
any other right of the Assignor (in its capacity as a Lender) against any
Person, whether known or unknown, arising under or in connection with the
Credit Agreement, any other documents or instruments delivered pursuant thereto
or the loan transactions governed thereby or in any way based on or related to
any of the foregoing, including contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i) above (the
rights and obligations sold and assigned pursuant to clauses (i) and (ii) above
being referred to herein collectively as the “Assigned Interest”). Such sale
and assignment is without recourse to the Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty
by the Assignor.

	 	 	 	 	 
	1.

	 	Assignor:	 	 
	 
	 	 	 	 
	2.

	 	Assignee:	 	 
	

	 	 	 	[and is an Affiliate/Approved Fund of [identify Lender]1]
	 
	 	 	 	 
	3.

	 	Borrower:
	 	Eagle Materials Inc. (formerly Centex Construction Products, Inc.)
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	JPMorgan Chase Bank, N.A. as the administrative agent under the Credit
Agreement
	 
	 	 	 	 
	5.

	 	Credit Agreement:
	 	The $350,000,000 Amended and Restated Credit Agreement dated as of December
16, 2004 among Eagle Materials Inc., the Lenders parties thereto and JPMorgan
Chase Bank, N.A. as Administrative Agent.

ASSIGNMENT AND ASSUMPTION, Page 1

 

	 	 	 	 	 
	6.

	 	Assigned Interest:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	Amount of	 	 
	 	 	Commitment/Loans	 	Commitment/Loans	 	Percentage Assigned
	Facility Assigned2
	 	for all Lenders
	 	Assigned
	 	of Commitment/Loans3

	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 

Effective Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE
AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE
REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 	 	 
	 	 	ASSIGNOR
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	

	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	

	 
	 	 	 	 	 	 
	 	 	ASSIGNEE
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE]
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	

	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	

ASSIGNMENT AND ASSUMPTION, Page 2

 

[Consented to and] Accepted:

	 	 	 	 	 	 	 
	JPMORGAN CHASE BANK, N.A.

(formerly known as JPMorgan Chase Bank), as

  Administrative Agent	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	

	

	 	Name:	 	 	 	 
	

	 	 	 	

	

	 	Title:	 	 	 	 
	

	 	 	 	

	 
	 	 	 	 	 	 
	[Consented to:]	 	 
	 
	 	 	 	 	 	 
	EAGLE MATERIALS INC.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	

	

	 	Name:	 	 	 	 
	

	 	 	 	

	

	 	Title:	 	 	 	 
	

	 	 	 	

ASSIGNMENT AND ASSUMPTION, Page 3

 

ANNEX 1

EAGLE MATERIALS INC.

AMENDED AND RESTATED CREDIT AGREEMENT

DATED

16 DECEMBER 2004

STANDARD TERMS AND CONDITIONS

FOR

ASSIGNMENT AND ASSUMPTION

     1. Representations and Warranties.

     1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest
is free and clear of any lien, encumbrance or other adverse claim and (iii) it
has full power and authority, and has taken all action necessary, to execute
and deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the
Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of the
Borrower, any of the Subsidiaries or Affiliates or any other Person obligated
in respect of any Loan Document or (iv) the performance or observance by the
Borrower, any of the Subsidiaries or Affiliates or any other Person of any of
their respective obligations under any Loan Document.

     1.2. Assignee. The Assignee (a) represents and warrants that (i) it has
full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
satisfies the requirements, if any, specified in the Credit Agreement that are
required to be satisfied by it in order to acquire the Assigned Interest and
become a Lender, (iii) from and after the Effective Date, it shall be bound by
the provisions of the Credit Agreement as a Lender thereunder and, to the
extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together with
copies of the most recent financial statements delivered pursuant to Section
5.01 thereof, as applicable, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without
reliance on the Administrative Agent or any other Lender, and (v) if it is a
Foreign Lender, attached to the Assignment and Assumption is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by the Assignee; and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, the Assignor or
any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.

     2. Payments. From and after the Effective Date, the Administrative Agent
shall make all payments in respect of the Assigned Interest (including payments
of principal, interest, fees and other amounts) to the Assignor for amounts
which have accrued to but excluding the Effective Date and to the Assignee for
amounts which have accrued from and after the Effective Date.

     3. General Provisions. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Assumption may be executed in any
number of counterparts, which together shall constitute one instrument.
Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption
shall be governed by, and construed in accordance with, the law of the State of
Texas.

ANNEX 1 to Assignment and Assumption, Solo Page

 

 

EXHIBIT B

TO

EAGLE MATERIALS INC.

AMENDED AND RESTATED CREDIT AGREEMENT

Form of Opinion of Counsel for the Borrower

16 December 2004

To the Lenders and the Administrative

  Agent Referred to Below

c/o JPMorgan Chase Bank, N.A. as

  Administrative Agent

2200 Ross Avenue, 3rd Floor

Dallas, Texas, TX 75201

Dear Sirs:

     We have acted as counsel for Eagle Materials Inc. (formerly Centex
Construction Products, Inc.), a Delaware corporation (the “Borrower”) and the
guarantors listed in Appendix 1 attached hereto (the “Guarantors”) (the
Borrower and the Guarantors being collectively referred to hereafter as the
“Obligated Parties”) in connection with the Amended and Restated Credit
Agreement dated as of December 16, 2004 (the “Credit Agreement”) among the
Borrower, the banks and other financial institutions identified therein as
Lenders, and JPMorgan Chase Bank, N.A. as Administrative Agent. Terms defined
in the Credit Agreement are used herein with the same meanings.

     We have examined originals or copies, certified or otherwise identified to
our satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as we have deemed necessary or advisable for purposes of this
opinion.

     Upon the basis of the foregoing, we are of the opinion that:

     1. Each of the Obligated Parties (a) is a business entity duly organized,
validly existing and in good standing under the laws of its state of formation,
(b) has all requisite corporate, limited liability company or partnership power
and authority to carry on its business as now conducted and (c) except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business
in, and is in good standing in, every jurisdiction where such qualification is
required.

     2. The Transactions are within each of the Obligated Parties’ corporate,
limited liability company or partnership powers and have been duly authorized
by all necessary corporate, company or partnership action and, if required,
stockholder, member, manager or partner action. Each of the Obligated Parties
has duly executed and delivered the Loan Documents to which it is a party and
such Loan Documents constitute the legal, valid and binding obligation of each
of the Obligated Parties which are parties thereto, enforceable in accordance
with their terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to
general principles of equity, regardless of whether considered in a proceeding
in equity or at law.

EXHIBIT B, OPINION OF COUNSEL FOR THE BORROWER, Page 1

 

     3. The Transactions (a) do not require any consent or approval of,
registration or filing with, or any other action by, any Governmental
Authority, except such as have been obtained or made and are in full force and
effect, (b) will not violate any applicable law or regulation or the charter,
by-laws or other organizational documents of Borrower or any of the
Subsidiaries or any order of any Governmental Authority, (c) to the best of our
knowledge after due inquiry, will not violate or result in a default under any
indenture, agreement or other instrument binding upon Borrower or any of the
Subsidiaries or any of their respective assets, or give rise to a right
thereunder to require any payment to be made by Borrower or any of the
Subsidiaries, and (d) to the best of our knowledge after due inquiry, will not
result in the creation or imposition of any Lien on any asset of Borrower or
any Subsidiary.

     4. To the best of our knowledge after due inquiry, there are no actions,
suits or proceedings by or before any arbitrator or Governmental Authority
pending against or threatened against or affecting Borrower or any Subsidiary
(a) as to which there is a reasonable expectation of an adverse determination
and that, if adversely determined, could reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect (other than the
Disclosed Matters) or (b) that involve the Loan Documents or the Transactions.

     We are members of the bar of the State of Texas and the foregoing opinion
is limited to the laws of the State of Texas, the General Corporation Law of
each state in which any Obligated Party is organized and the Federal laws of
the United States of America. This opinion is rendered solely to you in
connection with the above matter. This opinion may not be relied upon by you
for any other purpose or relied upon by any other Person (other than your
successors and assigns as Lenders and Persons that acquire participations in
your Loans) without our prior written consent.

                    Very truly yours,

EXHIBIT B, OPINION OF COUNSEL FOR THE BORROWER, Page 2

 

APPENDIX 1

TO

LEGAL OPINION

Guarantors

AMERICAN GYPSUM COMPANY

AMERICAN GYPSUM MARKETING COMPANY

CCP CEMENT COMPANY

CCP CONCRETE/AGGREGATES LLC

CCP GYPSUM COMPANY

CCP LAND COMPANY

CENTEX CEMENT CORPORATION

CENTEX MATERIALS LLC

HOLLIS & EASTERN RAILROAD COMPANY LLC

MATHEWS READYMIX LLC

M&W DRYWALL SUPPLY COMPANY

MOUNTAIN CEMENT COMPANY

NEVADA CEMENT COMPANY

REPUBLIC PAPERBOARD COMPANY LLC

TLCC GP LLC

TLCC LP LLC

TEXAS CEMENT COMPANY

WESTERN AGGREGATES LLC (formerly Western Aggregates, Inc.)

WESTERN CEMENT COMPANY OF CALIFORNIA

EXHIBIT B, OPINION OF COUNSEL FOR THE BORROWER, Page 3

 

EXHIBIT C

TO

EAGLE MATERIALS INC.

AMENDED AND RESTATED CREDIT AGREEMENT

Form of Subsidiary Guaranty

EXHIBIT C, FORM OF GUARANTY AGREEMENT, Cover Page

 

 

AMENDED AND RESTATED GUARANTY AGREEMENT

     WHEREAS, EAGLE MATERIALS INC. (formerly Centex Construction Products,
Inc.), a Delaware corporation (the “Borrower”) has entered into that certain
Amended and Restated Credit Agreement dated as of December 16, 2004, among
Borrower, the lenders party thereto (the “Lenders”), and JPMORGAN CHASE BANK,
N.A. (formerly known as JPMorgan Chase Bank), as the administrative agent for
such Lenders (the “Agent”) (such Amended and Restated Credit Agreement, as it
may hereafter be amended or otherwise modified from time to time, being
hereinafter referred to as the “Credit Agreement”, and capitalized terms not
otherwise defined herein shall have the same meaning as set forth in the Credit
Agreement);

     WHEREAS, certain of the parties hereto have executed and delivered that
certain Guaranty Agreement dated as of December 18, 2003 in connection with and
for the benefit of the lenders under the Prior Agreement (as defined in the
Credit Agreement and such Guaranty Agreement, herein the “Prior Guaranty”) and
the execution of this Amended and Restated Guaranty Agreement (herein the
“Guaranty Agreement”) is a condition to the Agent’s and each Lender’s
obligations under the Credit Agreement and amends and restates the Prior
Guaranty in its entirety;

     NOW, THEREFORE, for valuable consideration, the receipt and adequacy of
which are hereby acknowledged, each of the undersigned Subsidiaries and any
Subsidiary hereafter added as a “Guarantor” hereto pursuant to a Subsidiary
Joinder Agreement in the form attached hereto as Exhibit A (individually a
“Guarantor” and collectively the “Guarantors”), hereby irrevocably and
unconditionally guaranties to the Agent, the Lenders, the Issuing Banks and
their respective Related Parties (collectively the “Creditors”) the full and
prompt payment and performance of the Guarantied Indebtedness (hereinafter
defined), this Guaranty Agreement being upon the following terms:

     1. The term “Guarantied Indebtedness”, as used herein, means: (i) all
obligations, indebtedness, and liabilities of the Borrower to any Creditor
arising pursuant to the Credit Agreement, any note executed pursuant thereto or
any other Loan Document, whether now existing or hereafter arising, whether
direct, indirect, related, unrelated, fixed, contingent, liquidated,
unliquidated, joint, several, or joint and several, including, without
limitation, the obligation of the Borrower to repay the Loans, the LC
Disbursements, interest on the Loans and LC Disbursements, and all fees, costs,
and expenses (including attorneys’ fees and expenses) provided for in the
Credit Agreement and the notes executed pursuant thereto and (ii) all
obligations, indebtedness, and liabilities of the Borrower or any Subsidiaries,
or any one of them, to any Lender or any Affiliate of any Lender arising
pursuant to any Swap Agreements entered into by such Creditor with the Borrower
or any Subsidiaries, or any one of them, whether now existing or hereafter
arising, whether direct, indirect, related, unrelated, fixed, contingent,
liquidated, unliquidated, joint, several, or joint and several, including,
without limitation, all fees, costs, and expenses (including attorneys’ fees
and expenses) provided for in such Swap Agreements. The “Guarantied
Indebtedness” shall include any and all post-petition interest and expenses
(including attorneys’ fees) whether or not allowed under any bankruptcy,
insolvency, or other similar law; provided that the Guarantied Indebtedness
shall be limited, with respect to each Guarantor, to an aggregate amount equal
to the largest amount that would not render such Guarantor’s obligations
hereunder subject to avoidance under Section 544 or 548 of the United States
Bankruptcy Code or under any applicable state law relating to fraudulent
transfers or conveyances.

     2. The Guarantors together desire to allocate among themselves
(collectively, the “Contributing Guarantors”), in a fair and equitable manner,
their obligations arising under this Guaranty Agreement. Accordingly, in the
event any payment or distribution is made by a Guarantor under this Guaranty
Agreement (a “Funding Guarantor”) that exceeds its Fair Share (as defined
below), that Funding Guarantor shall be entitled to a contribution from each of
the other Contributing Guarantors in the amount

AMENDED AND RESTATED GUARANTY AGREEMENT, Page 1

 

of such other Contributing Guarantor’s Fair Share Shortfall (as defined
below), with the result that all such contributions will cause each
Contributing Guarantor’s Aggregate Payments (as defined below) to equal its
Fair Share. “Fair Share” means, with respect to a Contributing Guarantor as of
any date of determination, an amount equal to (i) the ratio of (x) the Adjusted
Maximum Amount (as defined below) with respect to such Contributing Guarantor
to (y) the aggregate of the Adjusted Maximum Amounts with respect to all
Contributing Guarantors, multiplied by (ii) the aggregate amount paid or
distributed on or before such date by all Funding Guarantors under this
Guaranty Agreement in respect of the obligations guarantied. “Fair Share
Shortfall” means, with respect to a Contributing Guarantor as of any date of
determination, the excess, if any, of the Fair Share of such Contributing
Guarantor over the Aggregate Payments of such Contributing Guarantor.
“Adjusted Maximum Amount” means, with respect to a Contributing Guarantor as of
any date of determination, the maximum aggregate amount of the obligations of
such Contributing Guarantor under this Guaranty Agreement determined in
accordance with the provisions hereof; provided that, solely for purposes of
calculating the “Adjusted Maximum Amount” with respect to any Contributing
Guarantor for purposes of this paragraph 2, the assets or liabilities arising
by virtue of any rights to or obligations of contribution hereunder shall not
be considered as assets or liabilities of such Contributing Guarantor.
“Aggregate Payments” means, with respect to a Contributing Guarantor as of any
date of determination, the aggregate amount of all payments and distributions
made on or before such date by such Contributing Guarantor in respect of this
Guaranty Agreement (including, without limitation, in respect of this paragraph
2). The amounts payable as contributions hereunder shall be determined as of
the date on which the related payment or distribution is made by the applicable
Funding Guarantor. The allocation among Contributing Guarantors of their
obligations as set forth in this paragraph 2 shall not be construed in any way
to limit the liability of any Contributing Guarantor hereunder.

     3. This instrument shall be an absolute, continuing, irrevocable and
unconditional guaranty of payment and performance, and not a guaranty of
collection, and each Guarantor shall remain liable on its obligations hereunder
until the payment and performance in full of the Guarantied Indebtedness. No
set-off, counterclaim, recoupment, reduction, or diminution of any obligation,
or any defense of any kind or nature which Borrower or any Subsidiary may have
against any Creditor or any other party, or which any Guarantor may have
against Borrower or any Subsidiary, any Creditor or any other party, shall be
available to, or shall be asserted by, any Guarantor against any Creditor or
any subsequent holder of the Guarantied Indebtedness or any part thereof or
against payment of the Guarantied Indebtedness or any part thereof.

     4. If a Guarantor becomes liable for any indebtedness owing by Borrower or
any Subsidiary to any Creditor by endorsement or otherwise, other than under
this Guaranty Agreement, such liability shall not be in any manner impaired or
affected hereby, and the rights of the Creditors hereunder shall be cumulative
of any and all other rights that any Creditor may ever have against such
Guarantor. The exercise by any Creditor of any right or remedy hereunder or
under any other instrument, or at law or in equity, shall not preclude the
concurrent or subsequent exercise of any other right or remedy.

     5. In the event of default by Borrower or any Subsidiary in payment or
performance of the Guarantied Indebtedness, or any part thereof, when such
Guarantied Indebtedness becomes due, whether by its terms, by acceleration, or
otherwise, the Guarantors shall, jointly and severally, promptly pay the amount
due thereon to Agent, without notice or demand, in lawful currency of the
United States of America, and it shall not be necessary for Agent or any other
Creditor, in order to enforce such payment by any Guarantor, first to institute
suit or exhaust its remedies against Borrower, any Subsidiary or others liable
on such Guarantied Indebtedness, or to enforce any rights against any
collateral which shall ever have been given to secure such Guarantied
Indebtedness. In the event such payment is made by a Guarantor, then such
Guarantor shall be subrogated to the rights then held by Agent and any other
Creditor with respect to the Guarantied Indebtedness to the extent to which the
Guarantied Indebtedness

AMENDED AND RESTATED GUARANTY AGREEMENT, Page 2

 

was discharged by such Guarantor and, in addition, upon payment by such
Guarantor of any sums to Agent or any other Creditor hereunder, all rights of
such Guarantor against Borrower, any Subsidiary, any other guarantor or any
collateral arising as a result therefrom by way of right of subrogation,
reimbursement, or otherwise shall in all respects be subordinate and junior in
right of payment to the prior indefeasible payment in full of the Guarantied
Indebtedness. All payments received by the Agent hereunder shall be applied by
the Agent to payment of the Guarantied Indebtedness in the order provided for
in Section 2.17 of the Credit Agreement.

     6. If acceleration of the time for payment of any amount payable by
Borrower or any Subsidiary under the Guarantied Indebtedness is stayed upon the
insolvency, bankruptcy, or reorganization of Borrower or any Subsidiary, all
such amounts otherwise subject to acceleration under the terms of the
Guarantied Indebtedness shall nonetheless be payable by the Guarantors
hereunder forthwith on demand by Agent or any other Creditor.

     7. Each Guarantor hereby agrees that its obligations under this Guaranty
Agreement shall not be released, discharged, diminished, impaired, reduced, or
affected for any reason or by the occurrence of any event, including, without
limitation, one or more of the following events, whether or not with notice to
or the consent of any Guarantor: (a) the taking or accepting of collateral as
security for any or all of the Guarantied Indebtedness or the release,
surrender, exchange, or subordination of any collateral now or hereafter
securing any or all of the Guarantied Indebtedness; (b) any partial release of
the liability of any Guarantor hereunder, or the full or partial release of any
other guarantor from liability for any or all of the Guarantied Indebtedness;
(c) any disability of Borrower or any Subsidiary, or the dissolution,
insolvency, or bankruptcy of Borrower, any Subsidiary, any Guarantor, or any
other party at any time liable for the payment of any or all of the Guarantied
Indebtedness; (d) any renewal, extension, modification, waiver, amendment, or
rearrangement of any or all of the Guarantied Indebtedness or any instrument,
document, or agreement evidencing, securing, or otherwise relating to any or
all of the Guarantied Indebtedness; (e) any adjustment, indulgence,
forbearance, waiver, or compromise that may be granted or given by Agent or any
other Creditor to Borrower, any Subsidiary, any Guarantor, or any other party
ever liable for any or all of the Guarantied Indebtedness; (f) any neglect,
delay, omission, failure, or refusal of Agent or any other Creditor to take or
prosecute any action for the collection of any of the Guarantied Indebtedness
or to foreclose or take or prosecute any action in connection with any
instrument, document, or agreement evidencing, securing, or otherwise relating
to any or all of the Guarantied Indebtedness; (g) the unenforceability or
invalidity of any or all of the Guarantied Indebtedness or of any instrument,
document, or agreement evidencing, securing, or otherwise relating to any or
all of the Guarantied Indebtedness; (h) any payment by Borrower, any Subsidiary
or any other party to Agent or any other Creditor is held to constitute a
preference under applicable bankruptcy or insolvency law or if for any other
reason Agent or any other Creditor is required to refund any payment or pay the
amount thereof to someone else; (i) the settlement or compromise of any of the
Guarantied Indebtedness; (j) the non-perfection of any security interest or
lien securing any or all of the Guarantied Indebtedness; (k) any impairment of
any collateral securing any or all of the Guarantied Indebtedness; (l) the
failure of Agent or any other Creditor to sell any collateral securing any or
all of the Guarantied Indebtedness in a commercially reasonable manner or as
otherwise required by law; (m) any change in the corporate existence,
structure, or ownership of Borrower or any Subsidiary; or (n) any other
circumstance which might otherwise constitute a defense available to, or
discharge of, Borrower, any Subsidiary or any other Guarantor (other than
payment of the Guarantied Indebtedness).

     8. Each Guarantor represents and warrants to Agent and the Lenders as
follows:

          (a) All representations and warranties in the Credit Agreement relating to
it are true and correct as of the date hereof and on each date the
representations and warranties hereunder are

AMENDED AND RESTATED GUARANTY AGREEMENT, Page 3

 

restated pursuant to the Credit Agreement with the same force and effect
as if such representations and warranties had been made on and as of such date.

          (b) It has, independently and without reliance upon any Creditor and based
upon such documents and information as it has deemed appropriate, made its own
analysis and decision to enter into this Guaranty Agreement.

          (c) It has adequate means to obtain from Borrower and the Subsidiaries on
a continuing basis information concerning the financial condition and assets of
Borrower and the Subsidiaries and it is not relying upon any Creditor to
provide (and no Creditor shall have any duty to provide) any such information
to it either now or in the future.

          (2) The value of the consideration received and to be received by each
Guarantor as a result of Borrower’s and the Lenders’ entering into the Credit
Agreement and the Borrower and the Subsidiaries entering into the Swap
Agreements and each Guarantor’s executing and delivering this Guaranty
Agreement is reasonably worth at least as much as the liability and obligation
of each Guarantor hereunder, and such liability and obligation, the Credit
Agreement and such Swap Agreements have benefited and may reasonably be
expected to benefit each Guarantor directly or indirectly.

     9. Each Guarantor covenants and agrees that, as long as the Guarantied
Indebtedness or any part thereof is outstanding or any Lender has any
commitment under the Credit Agreement, it will comply with all covenants set
forth in the Credit Agreement specifically applicable to it.

     10. When an Event of Default exists and subject to the terms of Section
2.17 of the Credit Agreement, Agent and each other Creditor shall have the
right to set-off and apply against this Guaranty Agreement or the Guarantied
Indebtedness or both, at any time and without notice to any Guarantor, any and
all deposits (general or special, time or demand, provisional or final) or
other sums at any time credited by or owing from Agent and each other Creditor
to any Guarantor whether or not the Guarantied Indebtedness is then due and
irrespective of whether or not Agent or any other Creditor shall have made any
demand under this Guaranty Agreement. Each Creditor agrees promptly to notify
the Borrower (with a copy to the Agent) after any such setoff and application,
provided that the failure to give such notice shall not affect the validity of
such setoff and application. The rights and remedies of Agent and other
Creditors hereunder are in addition to other rights and remedies (including,
without limitation, other rights of set-off) which Agent or any other Creditor
may have.

     11. (a) Each Guarantor hereby agrees that the Subordinated Indebtedness
(as defined below) shall be subordinate and junior in right of payment to the
prior payment in full of all Guarantied Indebtedness as herein provided. The
Subordinated Indebtedness shall not be payable, and no payment of principal,
interest or other amounts on account thereof, and no property or guaranty of
any nature to secure or pay the Subordinated Indebtedness shall be made or
given, directly or indirectly by or on behalf of any Debtor (hereafter defined)
or received, accepted, retained or applied by any Guarantor unless and until
the Guarantied Indebtedness shall have been paid in full in cash; except that
prior to the occurrence and continuance of an Event of Default, each Debtor
shall have the right to make payments and a Guarantor shall have the right to
receive payments on the Subordinated Indebtedness from time to time in the
ordinary course of business. After the occurrence and during the continuance
of an Event of Default, no payments may be made or given on the Subordinated
Indebtedness, directly or indirectly, by or on behalf of any Debtor or
received, accepted, retained or applied by any Guarantor unless and until the
Guarantied Indebtedness shall have been paid in full in cash. If any sums
shall be paid to a Guarantor by any Debtor or any other Person on account of
the Subordinated Indebtedness when such payment is not permitted hereunder,
such sums shall be held in trust by such Guarantor for the benefit of Agent and
the other Creditors and shall forthwith be paid to the Agent and applied by
Agent against the Guarantied

AMENDED AND RESTATED GUARANTY AGREEMENT, Page 4

 

Indebtedness in accordance with this Guaranty Agreement. For purposes of
this Guaranty Agreement and with respect to a Guarantor, the term “Subordinated
Indebtedness” means all indebtedness, liabilities, and obligations of Borrower
or any other Subsidiary (Borrower and such other Subsidiaries herein the
“Debtors”) to such Guarantor, whether such indebtedness, liabilities, and
obligations now exist or are hereafter incurred or arise, or are direct,
indirect, contingent, primary, secondary, several, joint and several, or
otherwise, and irrespective of whether such indebtedness, liabilities, or
obligations are evidenced by a note, contract, open account, or otherwise, and
irrespective of the Person or Persons in whose favor such indebtedness,
obligations, or liabilities may, at their inception, have been, or may
hereafter be created, or the manner in which they have been or may hereafter be
acquired by such Guarantor.

          (b) Each Guarantor agrees that any and all Liens (including any judgment
liens), upon any Debtor’s assets securing payment of any Subordinated
Indebtedness shall be and remain inferior and subordinate to any and all Liens
upon any Debtor’s assets securing payment of the Guarantied Indebtedness or any
part thereof, regardless of whether such Liens in favor of a Guarantor, Agent
or any other Creditor presently exist or are hereafter created or attached.
Without the prior written consent of Agent, no Guarantor shall (i) file suit
against any Debtor or exercise or enforce any other creditor’s right it may
have against any Debtor, or (ii) foreclose, repossess, sequester, or otherwise
take steps or institute any action or proceedings (judicial or otherwise,
including without limitation the commencement of, or joinder in, any
liquidation, bankruptcy, rearrangement, debtor’s relief or insolvency
proceeding) to enforce any obligations of any Debtor to such Guarantor or any
Liens held by such Guarantor on assets of any Debtor.

          (c) In the event of any receivership, bankruptcy, reorganization,
rearrangement, debtor’s relief, or other insolvency proceeding involving any
Debtor as debtor, Agent shall have the right to prove and vote any claim under
the Subordinated Indebtedness and to receive directly from the receiver,
trustee or other court custodian all dividends, distributions, and payments
made in respect of the Subordinated Indebtedness until the Guarantied
Indebtedness has been paid in full in cash. Agent may apply any such dividends,
distributions, and payments against the Guarantied Indebtedness in accordance
with the Credit Agreement.

     12. Except for modifications made pursuant to the execution and delivery
of a Subsidiary Joinder Agreement (which needs to be signed only by the
Subsidiary party thereto) and the release of any Guarantor from its obligations
hereunder (which shall require the consent of all Lenders unless such release
is authorized by Section 9.02 of the Credit Agreement); no amendment or waiver
of any provision of this Guaranty Agreement or consent to any departure by any
Guarantor therefrom shall in any event be effective unless the same shall be in
writing and signed by Agent and Required Lenders except as otherwise provided
in the Credit Agreement. No failure on the part of Agent or any other Creditor
to exercise, and no delay in exercising, any right, power, or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power, or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, power, or
privilege. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law.

     13. To the extent permitted by law, any acknowledgment or new promise,
whether by payment of principal or interest or otherwise and whether by
Borrower or others (including any Guarantor), with respect to any of the
Guarantied Indebtedness shall, if the statute of limitations in favor of a
Guarantor against Agent or any other Creditor shall have commenced to run, toll
the running of such statute of limitations and, if the period of such statute
of limitations shall have expired, prevent the operation of such statute of
limitations.

AMENDED AND RESTATED GUARANTY AGREEMENT, Page 5

 

     14. This Guaranty Agreement is for the benefit of the Creditors and their
successors and assigns, and in the event of an assignment of the Guarantied
Indebtedness, or any part thereof, the rights and benefits hereunder, to the
extent applicable to the indebtedness so assigned, may be transferred with such
indebtedness. This Guaranty Agreement is binding not only on each Guarantor,
but on each Guarantor’s successors and assigns.

     15. Each Guarantor recognizes that Agent and the Lenders are relying upon
this Guaranty Agreement and the undertakings of each Guarantor hereunder in
making extensions of credit to Borrower under the Credit Agreement and further
recognizes that the execution and delivery of this Guaranty Agreement is a
material inducement to Agent and the Lenders in entering into the Credit
Agreement and continuing to extend credit thereunder. Each Guarantor hereby
acknowledges that there are no conditions to the full effectiveness of this
Guaranty Agreement.

     16. Any notice or demand to any Guarantor under or in connection with this
Guaranty Agreement shall be deemed effective if given to the Guarantor, care of
Borrower in accordance with the notice provisions in the Credit Agreement.

     17. The Guarantors shall, jointly and severally, pay on demand all
reasonable attorneys’ fees and all other reasonable costs and expenses incurred
by Agent and the other Creditors in connection with the administration,
enforcement, or collection of this Guaranty Agreement.

     18. Except as otherwise specifically provided in the Credit Agreement,
each Guarantor hereby waives promptness, diligence, notice of any default under
the Guarantied Indebtedness, demand of payment, notice of acceptance of this
Guaranty Agreement, presentment, notice of protest, notice of dishonor, notice
of the incurring by Borrower of additional indebtedness, notice of intent to
accelerate, notice of acceleration and all other notices and demands with
respect to the Guarantied Indebtedness and this Guaranty Agreement.

     19. The Credit Agreement, and all of the terms thereof, are incorporated
herein by reference, the same as if stated verbatim herein, and each Guarantor
agrees that Agent and the Lenders may exercise any and all rights granted to
any of them under the Credit Agreement without affecting the validity or
enforceability of this Guaranty Agreement.

     20. THIS GUARANTY AGREEMENT EMBODIES THE FINAL, ENTIRE AGREEMENT OF EACH
GUARANTOR, AGENT AND THE OTHER CREDITORS WITH RESPECT TO EACH GUARANTOR’S
GUARANTY OF THE GUARANTIED INDEBTEDNESS AND SUPERSEDES ANY AND ALL PRIOR
COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN
OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF, INCLUDING THE PRIOR GUARANTY.
THIS GUARANTY AGREEMENT IS INTENDED BY EACH GUARANTOR, AGENT AND THE OTHER
CREDITORS AS A FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY
AGREEMENT, AND NO COURSE OF DEALING AMONG ANY GUARANTOR, AGENT AND ANY OTHER
CREDITOR, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER
EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT
OR MODIFY ANY TERM OF THIS GUARANTY AGREEMENT. THERE ARE NO ORAL AGREEMENTS
AMONG ANY GUARANTOR, AGENT AND ANY OTHER CREDITOR. This Guaranty Agreement
amends and restates in its entirety the Prior Guaranty. However, for all
matters arising prior to the date hereof (including, without limitation, the
accrual and payment of interest and fees, and matters relating to
indemnification), the terms of the Prior Guaranty (as unmodified by this
Guaranty Agreement) shall control and are hereby ratified and confirmed. Each
Guarantor represents and warrants

AMENDED AND RESTATED GUARANTY AGREEMENT, Page 6

 

that as of the date hereof there are no claims or offsets against or
rights of recoupment with respect to or defenses or counterclaims to its
obligations under the Prior Guaranty. TO INDUCE THE LENDERS AND ADMINISTRATIVE
AGENT TO ENTER INTO THE CREDIT AGREEMENT, EACH GUARANTOR WAIVES ANY AND ALL
SUCH CLAIMS, OFFSETS, RIGHTS OF RECOUPMENT, DEFENSES OR COUNTERCLAIMS, WHETHER
KNOWN OR UNKNOWN, ARISING PRIOR TO THE DATE HEREOF AND RELATING TO THE PRIOR
GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

     21. This Guaranty Agreement shall be construed in accordance with and
governed by the law of the State of Texas. EACH GUARANTOR HEREBY IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE STATE COURTS OF THE STATE OF TEXAS SITTING IN DALLAS COUNTY
AND OF THE UNITED STATES DISTRICT COURT OF THE NORTHERN DISTRICT OF TEXAS, AND
ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS GUARANTY AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH TEXAS STATE OR, TO THE EXTENT
PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES
THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT
ANY CREDITOR MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO
THIS GUARANTY AGREEMENT AGAINST ANY GUARANTOR OR ITS PROPERTIES IN THE COURTS
OF ANY JURISDICTION. Each Guarantor hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Guaranty
Agreement in any court referred to in this Section. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court. Each party to this Guaranty Agreement irrevocably consents to
service of process in the manner provided for notices in Section 9.01 of the
Credit Agreement. Nothing in this Guaranty Agreement will affect the right of
any party to this Guaranty Agreement to serve process in any other manner
permitted by law.

     22. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.

AMENDED AND RESTATED GUARANTY AGREEMENT, Page 7

 

     EXECUTED as of the date first written above.

	 	 	 	GUARANTORS:
	 
	 	 	 	AMERICAN GYPSUM COMPANY

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 (formerly Western
Aggregates, Inc.)

WESTERN CEMENT COMPANY OF CALIFORNIA
	 
	 	 	 	By:                                                                            
          Arthur
R. Zunker, Jr., Senior Vice President
          Finance and Treasurer of each Guarantor
	 
	 	 	 	CENTEX MATERIALS LLC

TLCC GP LLC
	 
	 	 	 	By:                                                                            
          Arthur
R. Zunker, Jr., Manager of the
          Guarantors
listed
	 
	 	 	 	TLCC LP LLC
	 
	 	 	 	By:                                                                            
          Nicholas
Stiren, Manager of the Guarantor listed

AMENDED AND RESTATED GUARANTY AGREEMENT, Page 8

 

EXHIBIT “A”

TO

GUARANTY AGREEMENT

Subsidiary Joinder Agreement

EXHIBIT “A” to GUARANTY AGREEMENT, Cover Page

 

 

SUBSIDIARY JOINDER AGREEMENT

     This SUBSIDIARY JOINDER AGREEMENT (the “Agreement”) dated as of
   ,    is executed by the undersigned (the “Guarantor”) for
the benefit of JPMORGAN CHASE BANK, N.A. (formerly known as JPMorgan Chase
Bank) in its capacity as agent for the lenders party to the hereafter
identified Credit Agreement and for the benefit of such lenders and certain
other creditors in connection with that certain Amended and Restated Credit
Agreement dated as of December 16, 2004 among Eagle Materials Inc. (formerly
Centex Construction Products, Inc. and herein “Borrower”), the lenders party
thereto, JPMORGAN CHASE BANK, N.A. (formerly known as JPMorgan Chase Bank), as
the administrative agent for the Lenders (the “Agent”) (such Amended and
Restated Credit Agreement, as it may hereafter be amended or otherwise modified
from time to time, being hereinafter referred to as the “Credit Agreement”, and
capitalized terms not otherwise defined herein shall have the same meaning as
set forth in the Credit Agreement).

     The Guarantor is a newly formed or newly acquired Subsidiary and is
required to execute this Agreement pursuant to Section 5.09 of the Credit
Agreement.

     NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Guarantor hereby agrees as follows:

     1. The Guarantor hereby assumes all the obligations of a “Guarantor” under
the Subsidiary Guaranty and agrees that it is a “Guarantor” and bound as a
“Guarantor” under the terms of the Subsidiary Guaranty as if it had been an
original signatory thereto. In accordance with the foregoing and for valuable
consideration, the receipt and adequacy of which are hereby acknowledged,
Guarantor irrevocably and unconditionally guaranties to the Agent and the other
Creditors the full and prompt payment and performance of the Guarantied
Indebtedness (as defined in the Subsidiary Guaranty) upon the terms and
conditions set forth in the Subsidiary Guaranty.

     2. This Agreement shall be deemed to be part of, and a modification to,
the Subsidiary Guaranty and shall be governed by all the terms and provisions
of the Subsidiary Guaranty, which terms are incorporated herein by reference,
are ratified and confirmed and shall continue in full force and effect as valid
and binding agreements of Guarantor enforceable against Guarantor. The
Guarantor hereby waives notice of Agent’s, the Issuing Banks’ or any other
Lender’s acceptance of this Agreement.

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

	 	 	 	 	 	 	 
	 	 	Guarantor:
	 
	 	 	 	 	 	 
	 	 	

	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:
	 	

	

	 	 	 	Title:
	 	

SUBSIDIARY JOINDER AGREEMENT, Solo Page

 

 

EXHIBIT D

TO

EAGLE MATERIALS INC.

AMENDED AND RESTATED CREDIT AGREEMENT

Form of Notice of Borrowing

EXHIBIT “D” FORM OF NOTICE OF BORROWING, Cover Page

 

 

[Date]

JPMorgan Chase Bank, N.A., as Administrative

Agent for the Lenders referred to below

2200 Ross Avenue, 3rd Floor

Dallas, TX 75201

Attn: David L. Howard

Telecopy: 214-965-2044

and

JPMorgan Chase Bank, N.A.

1111 Fannin St., 10th Floor

Houston, Texas 77002

Attn: Rese Comley

Telecopy: 713-750-2892

Ladies and Gentlemen:

     The undersigned, Eagle Materials Inc. (the “Borrower”), refers to the
Amended and Restated Credit Agreement dated as of December 16, 2004 among the
Borrower, the Lenders named therein and JPMorgan Chase Bank, N.A. (formerly
known as JPMorgan Chase Bank), as Administrative Agent (as amended, modified,
extended or restated from time to time, the “Agreement”). Capitalized terms
used herein and not otherwise defined herein shall have the meanings assigned
to such terms in the Agreement.

     1. The Borrower hereby gives you notice pursuant to Section 2.03 of the
Agreement that it requests a Borrowing under the Agreement, and sets forth
below the terms on which such Borrowing is requested to be made:

	 	 	 	 	 	 	 
	(A)
	 	Date of Borrowing (which is a Business Day)	 	 	 	 
	 
	 	 	 	 	
 	 
	(B)
	 	Type of Loan (i.e., ABR Borrowing or Eurodollar Borrowing)	 	 	 	 
	 
	 	 	 	 	
 	 
	(C)
	 	Facility (i.e., Revolver or Swingline)	 	 	 	 
	 
	 	 	 	 	
 	 
	(D)
	 	Principal amount of Borrowing4	 	 	 	 
	 
	 	 	 	 	
 	 
	(E)
	 	Interest Period and the last day thereof5	 	 	 	 
	 
	 	 	 	 	
 	 
	(F)
	 	Total outstanding Revolving Loans (including, if applicable, Borrowing requested)	 	$	 	 
	 
	 	 	 	 	
 	 
	(G)
	 	Total outstanding Swingline Loans (including, if applicable, Borrowing requested)	 	$	 	 
	 
	 	 	 	 	
 	 

4 Not less than $1,000,000 (and in integral multiples of $100,000) with respect
to Revolving Loans. Not less than $100,000 (and in integral multiples of
$100,000) with respect to Swingline Loans.

5 Which shall be subject to the definition of “Interest Period” and end not
later than the Maturity Date.

NOTICE OF BORROWING, Page 1

 

	 	 	 	 	 	 	 
	(H)
	 	Total LC Exposure	 	$	 	 
	 
	 	 	 	 	
 	 
	(I)
	 	Total Revolving Exposure (sum of (F), (G) and (H))	 	$	 	 
	 
	 	 	 	 	
 	 
	(J)
	 	Total Commitments	 	$	 	 
	 
	 	 	 	 	
 	 
	(K)
	 	Availability ((J) - (I))	 	$	 	 
	 
	 	 	 	 	
 	 

     2. The Borrower instructs you to disburse the proceeds of the requested
Borrowing into the following account:

Account Name:

Bank Name:

ABA Routing No.:

Bank Account No.:

Ref.:

     The Borrower represents and warrants that the conditions to lending
specified in Section 4.02(a) and (b) of the Agreement have been satisfied and
that after giving effect to the Borrowing requested hereby, the total Revolving
Credit Exposures of all Lenders shall not exceed the total Commitment.

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	EAGLE MATERIALS INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	

	

	 	 	 	Name:
	 	

	

	 	 	 	Title:
	 	

NOTICE OF BORROWING, Page 2

 

EXHIBIT E

TO

EAGLE MATERIALS INC.

AMENDED AND RESTATED CREDIT AGREEMENT

Form of Increased Commitment Supplement

EXHIBIT C, Cover Page

 

 

INCREASED COMMITMENT SUPPLEMENT

     This INCREASED COMMITMENT SUPPLEMENT (this “Supplement”) is dated as of
   , 20   and entered into by and among EAGLE MATERIALS INC. (formerly
Centex Construction Products, Inc.), a Delaware corporation (the “Borrower”),
each of the banks or other lending institutions which is a signatory hereto
(the “Lenders”), JPMORGAN CHASE BANK, N.A. (formerly known as JPMorgan Chase
Bank), as Administrative Agent for itself and the other lenders (in such
capacity, together with its successors in such capacity, the “Agent”), and is
made with reference to that certain Amended and Restated Credit Agreement dated
as of December 16, 2004 (as amended, the “Credit Agreement”), by and among the
Borrower, certain lenders and JPMORGAN CHASE BANK, N.A. (formerly known as
JPMorgan Chase Bank), as Administrative Agent. Capitalized terms used herein
without definition shall have the same meanings herein as set forth in the
Credit Agreement.

RECITALS

     WHEREAS, pursuant to Section 2.19 of the Credit Agreement, the Borrower
and the Lenders are entering into this Increased Commitment Supplement to
provide for the increase of the aggregate Commitments;

     WHEREAS, each Lender [party hereto and already a party to the Credit
Agreement] wishes to increase its Commitment [, and each Lender, to the extent
not already a Lender party to the Credit Agreement (herein a “New Lender”),
wishes to become a Lender party to the Credit Agreement];6

     WHEREAS, the Lenders are willing to agree to supplement the Credit
Agreement in the manner provided herein.

     NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, the parties hereto agree as follows:

     Section 1. Increase in Commitments. Subject to the terms and conditions
hereof, each Lender severally agrees that its Commitment shall be increased to
[or in the case of a New Lender, shall be] the amount set forth opposite its
name on the signature pages hereof.

     Section 2. [New Lenders. Each New Lender (i) confirms that it has
received a copy of the Credit Agreement, together with copies of the most
recent financial statements of the Borrower delivered under Section 5.01 and
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Supplement; (ii) agrees
that it has, independently and without reliance upon the Agent, any other
Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Supplement; (iii) agrees that it will,
independently and without reliance upon the Agent, any other Lender or any of
their Related Parties and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement; (iv) appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement as are delegated to the
Agent by the terms thereof, together with such powers and discretion as are
reasonably incidental thereto; and (v) agrees that it is a “Lender” under the
Credit Agreement and will perform in accordance

6Bracketed alternatives should be included if there are New Banks.

SCHEDULE 6.08, Solo Page 

 

with their terms all of the obligations that by the terms of the Credit
Agreement are required to be performed by it as a Lender.

     Section 3. Conditions to Effectiveness. Section 1 of this Supplement
shall become effective only upon the satisfaction of the following conditions
precedent:

     (a) receipt by the Agent of an opinion of counsel to the
Borrower as to the matters referred to in Section 3.01, 3.02 and
3.03 of the Credit Agreement (with the term “Agreement” as used
therein meaning this Supplement for purposes of such opinion),
dated the date hereof, satisfactory in form and substance to the
Agent;

     (b) receipt by the Agent of certified copies of all corporate
action taken by the Borrower to authorize the execution, delivery
and performance of this Supplement; and

     (c) receipt by the Agent of a certificate of the Secretary or
an Assistant Secretary of the Borrower certifying the names and
true signatures of the officers of the Borrower authorized to sign
this Supplement and the other documents to be delivered hereunder.

     Section 4. Representations and Warranties. In order to induce the Lenders
to enter into this Supplement and to supplement the Credit Agreement in the
manner provided herein, Borrower represents and warrants to Agent and each
Lender that (a) the representations and warranties contained in Article III of
the Credit Agreement are and will be true, correct and complete in all material
respects on and as of the effective date hereof to the same extent as though
made on and as of that date and for that purpose, this Supplement shall be
deemed to be included as part of the Agreement referred to therein, and (b) no
event has occurred and is continuing or will result from the consummation of
the transactions contemplated by this Supplement that would constitute a
Default.

     Section 5. Effect of Supplement. The terms and provisions set forth in
this Supplement shall modify and supersede all inconsistent terms and
provisions set forth in the Credit Agreement and except as expressly modified
and superseded by this Supplement, the terms and provisions of the Credit
Agreement are ratified and confirmed and shall continue in full force and
effect. The Borrower, the Agent, and the Lenders party hereto agree that the
Credit Agreement as supplemented hereby shall continue to be legal, valid,
binding and enforceable in accordance with their respective terms. Any and all
agreements, documents, or instruments now or hereafter executed and delivered
pursuant to the terms hereof or pursuant to the terms of the Credit Agreement
as supplemented hereby, are hereby amended so that any reference in such
documents to the Agreement shall mean a reference to the Agreement as
supplemented hereby.

     Section 6. Applicable Law. This Supplement shall be governed by, and
construed in accordance with, the laws of the State of Texas and applicable
laws of the United States of America.

     Section 7. Counterparts, Effectiveness. This Supplement may be executed
in any number of counterparts, by different parties hereto in separate
counterparts and on telecopy counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument; signature pages may be detached
from multiple separate counterparts and attached to a single counterpart so
that all signature pages are physically attached to the same document. This
Supplement (other than the provisions of Section 1 hereof, the effectiveness of
which is governed by Section 3 hereof) shall become effective upon the
execution of a counterpart hereof by the Borrower, the Lenders and receipt by
the Borrower and the Agent of written or telephonic notification of such
execution and authorization of delivery thereof.

SCHEDULE 6.08, Solo Page 

 

     Section 8. ENTIRE AGREEMENT. THIS SUPPLEMENT EMBODIES THE FINAL, ENTIRE
AGREEMENT AMONG THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND SUPERSEDE
ANY AND ALL PREVIOUS COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND
UNDERSTANDINGS, WHETHER ORAL OR WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF
AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO THERE ARE NO
UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.

     IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

	 	 	 	 	 	 	 
	 	 	EAGLE MATERIALS INC.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	
 
	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	
 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	New Total Commitment:
	 	 	 	 	 	 
	$______________________	 	JPMORGAN CHASE BANK, N.A.

(formerly known as JPMorgan
Chase Bank), as the
Administrative Agent
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	
 
	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	
 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	$______________________	 	[Lender]
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	
 
	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	
 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	$______________________	 	[NEW LENDER]
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	
 
	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	
 
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	
 

SCHEDULE 6.08, Solo Page 

 

CONSENT OF GUARANTORS

     Each Guarantor: (i) consents and agrees to this Supplement; (ii) agrees
that each of the Subsidiary Guaranty is in full force and effect and continues
to be its legal, valid and binding obligation enforceable in accordance with
its respective terms; and (iii) agrees that the obligations, indebtedness and
liabilities of the Borrower arising as a result of the increase in the
Commitments contemplated hereby are “Guaranteed Indebtedness” as defined in the
Subsidiary Guaranty.

	 	 	 	GUARANTORS:
	 
	 	 	 	AMERICAN GYPSUM COMPANY

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 (formerly Western
Aggregates, Inc.)

WESTERN CEMENT COMPANY OF CALIFORNIA
	 
	 	 	 	By:                                                                            
          Arthur
R. Zunker, Jr., Senior Vice
          President
Finance and Treasurer of each Guarantor
	 
	 	 	 	CENTEX MATERIALS LLC

TLCC GP LLC
	 
	 	 	 	By:                                                                            
          Arthur
R. Zunker, Jr., Manager of the
          Guarantors
listed
	 
	 	 	 	TLCC LP LLC
	 
	 	 	 	By:                                                                            
          Nicholas
Stiren, Manager of the Guarantor listed

SCHEDULE 6.08, Solo Page

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