Document:

FIRST AMENDMENT
TO

    SECOND AMENDED AND RESTATED
CREDIT AGREEMENT

     

    THIS
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”)
is entered into as of June 19, 2009, by and among TEXAS INDUSTRIES, INC., a
Delaware corporation (the “Borrower”),
BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative
Agent”), and the financial institutions named on the signature pages
hereto (the “Lenders”).

     

    WITNESSETH:

     

    WHEREAS,
the Borrower, the Administrative Agent and the Lenders are parties to that
certain Second Amended and Restated Credit Agreement dated as of June 19,
2009 (the “Credit
Agreement”) (capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to such terms in the Credit
Agreement);

     

    WHEREAS,
the Borrower and the Lenders desire to amend certain terms of the Credit
Agreement and have agreed to such amendments on the terms and conditions of this
Amendment;

     

    NOW,
THEREFORE, in consideration of the premises and mutual covenants herein
contained and intending to be legally bound hereby, the parties hereby agree as
follows:

     

    Section
1.              
Amendments.  Effective
as of the Effective Date (defined below), the Credit Agreement is hereby amended
as follows:

     

    1.1.           Amendments to Voting
Rights.

     

    (a)           Amendment to Section 9.10 of
the Credit Agreement.  Section 9.10 of the Credit
Agreement is amended to amend and restate clause (a)(iii) thereof in its
entirety as follows:

     

    (iii) if
approved, authorized or ratified in writing by the Required Lenders, provided,
that a release of the Administrative Agent’s Lien on all or substantially all of
the Collateral shall require the written approval of all Lenders pursuant to
Section
10.01(j);

     

    (b)           Amendment to Section 10.01
of the Credit Agreement.  Section 10.01 of the Credit
Agreement is amended to add the following clauses after clause (g)
thereof:

     

    (h) amend
the definition of “Borrowing Base” without the written consent of each
Lender;

     

    (i)
increase any of the advance rates set forth in the definitions of “Accounts
Formula Amount”, “Inventory Formula Amount” or “Rolling Stock Formula Amount”
without the written consent of each Lender; or

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    (j)
release all or substantially all of the Collateral without the written consent
of each Lender;

     

    1.2           Amendments Regarding
Defaulting Lenders.

     

    (a)           Amendment to Section 2.09 of
the Credit Agreement.  Section 2.09 of the Credit
Agreement is amended to add the following sentence to the end of clause (a)
thereof:

     

    Notwithstanding
anything to the contrary herein, no Commitment Fee shall be payable to any
Defaulting Lender with respect to any period of time during which it is a
Defaulting Lender.

     

    (b)           Amendment to Section 2.12 of
the Credit Agreement.  Section 2.12 of the Credit
Agreement is amended to add the following two sentences to the end of
clause (a) thereof:

     

    Notwithstanding
the foregoing, the Administrative Agent may (but is not required to), in its
discretion, retain any payments or other funds received by the Administrative
Agent that are to be provided to a Defaulting Lender hereunder, and may apply
such funds to such Lender’s defaulted obligations, hold such funds as collateral
for such Lender's defaulted obligations, or readvance the funds to the Borrower
in accordance with this Agreement.  A Defaulting Lender shall not be
entitled to any interest on any amounts held by the Administrative Agent
pursuant to the preceding sentence.

     

    1.3.           Amendments to Bank Product
Reserve and Waterfall.

     

    (a)           Amendment to Section 1.01 of
the Credit Agreement.  Section 1.01 of the Credit
Agreement is amended to amend and restate clause (ii) of the defined term
“Secured Obligations” in its entirety as follows:

     

    (ii) the
estimated maximum dollar amount of obligations arising thereunder (“Bank Product
Amount”), and

     

    (b)           Amendment to Section 8.03 of
the Credit Agreement.  Section 8.03 of the Credit
Agreement is amended to amend and restate clauses Second, Fourth and Sixth thereof in
their entirety as follows:

     

    Second, to payment of
that portion of the Secured Obligations constituting fees, indemnities and other
amounts (other than principal, interest, Letter of Credit Fees, Cash Management
Obligations and Swap Obligations) payable to the Lenders and the L/C Issuer
(including fees, charges and disbursements of counsel to the respective Lenders
and the L/C Issuer (including fees and time charges for attorneys who may be
employees of any Lender or the L/C Issuer) and amounts payable under Article III), ratably
among them in proportion to the respective amounts described in this clause
Second payable
to them;

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    Fourth, to payment of
that portion of the Secured Obligations constituting unpaid principal of the
Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuer in
proportion to the respective amounts described in this clause Fourth held by
them;

     

    Sixth, to payment of
the remaining portion of the Secured Obligations (including Cash Management
Obligations and Swap Obligations), ratably among the Lenders in proportion to
the respective amounts described in this clause Sixth held by them;
and

     

    Section
2.               Effectiveness.  This
Amendment shall be effective automatically and without the necessity of any
further action when the Administrative Agent has received (a) counterparts
hereof duly executed by the Borrower and each Lender and (b) a consent executed
by the Guarantors pursuant to which each Guarantor consents to the amendment of
the Credit Agreement contemplated hereby and reaffirms its obligations under the
Guaranty (such date, the “Effective
Date”).

     

    Section
3.               Reaffirmation of
Representations
and Warranties.  To induce the Lenders to enter into this
Amendment, the Borrower hereby represents and warrants that, except to the
extent such representations and warranties specifically refer to an earlier
date, each representation and warranty of the Borrower contained in the Credit
Agreement and the other Loan Documents is true and correct in all material
respects on the date hereof and after giving effect to the amendments set forth
herein.

     

    Section
4.               Miscellaneous.

     

    4.1           Reaffirmation of Loan
Documents; Liens.  All of the terms and provisions of the
Credit Agreement and the other Loan Documents shall, except as amended and
modified hereby, remain in full force and effect.  The Borrower agrees
that the amendments and modifications herein contained shall in no manner
adversely affect or impair the Obligations or the Liens securing payment and
performance thereof.

     

    4.2           Parties in
Interest.  All of the terms and provisions of this Amendment
shall bind and inure to the benefit of the parties hereto and their respective
successors and assigns.

     

    4.3           Counterparts.  This
Amendment may be executed in counterparts, and all parties need not execute the
same counterpart.  Facsimiles shall be effective as
originals.

     

    4.4           Complete
Agreement.  THIS AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER
LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE
PARTIES.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

     

    4.5           Headings.  The
headings and captions used in this Amendment are for convenience only and shall
not be deemed to limit, amplify or modify the terms of this Amendment, nor
affect the meaning thereof.

     

    4.6           Governing
Law.  This Amendment shall be governed by, and construed in
accordance with, the law of the State of Texas.

     

    [Signature
Pages Follow]

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

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

     

    
      
        
          
            
              	 
      	
                      BORROWER:

                    
	 	 
	 
      	
                      TEXAS INDUSTRIES, INC.,
      a Delaware corporation

                    
	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Sharon Ellis

                    
	 
      	
                      Name:

                    	
                      Sharon
      Ellis

                    
	 
      	
                      Title:

                    	
                      Treasurer

                    

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	 
      	
                      ADMINISTRATIVE AGENT AND
      LENDERS:

                    
	 	 
	 
      	
                      BANK OF AMERICA, N.A.,
      as Administrative 

                      Agent

                    
	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Joy L. Bartholomew

                    
	 
      	
                      Name:

                    	
                      Joy
      L. Bartholomew

                    
	 
      	
                      Title:

                    	
                      Senior
      Vice
President

                    

            

          

        

      

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      
        
          	 
      	
                  BANK OF AMERICA, N.A.,
      as a Lender, 

                  L/C
      Issuer and Swing Line Lender

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Joy L. Bartholomew

                
	 
      	
                  Name:

                	
                  Joy
      L. Bartholomew

                
	 
      	
                  Title:

                	
                  Senior
      Vice President

                

        

      

    

     

    
      
         

      

      
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                  UBS LOAN FINANCE, as a
      Lender

                
	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Irja R. Otsa

                
	 
      	
                  Name:

                	
                  Irja
      R. Otsa

                
	 
      	
                  Title:

                	
                  Associate
      Director

                
	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Mary E. Evans

                
	 
      	
                  Name:

                	
                  Mary
      E. Evans

                
	 
      	
                  Title:

                	
                  Associate
      Director

                

        

      

    

    

     

    
      
         

      

      
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                  WELLS FARGO BANK, NATIONAL
      

                  ASSOCIATION, as
      Co-Documentation Agent and 

                  as
      a Lender

                
	 
      	 
      
	 
      	
                  By

                	
                  :  /s/ Greg Campbell

                
	 
      	
                  Name:

                	
                  Greg
      Campbell

                
	 
      	
                  Title:

                	
                  Vice
      President

                

        

      

    

     

    
      
         

      

      
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                  COMERICA BANK, as
      Co-Documentation Agent 

                  and
      as a Lender

                
	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Catherine Young

                
	 
      	
                  Name:

                	
                  Catherine
      Meister Young

                
	 
      	
                  Title:

                	
                  Vice
      President

                

        

      

    

     

    
      
         

      

      
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                  SUNTRUST BANK, as a
      Lender

                
	 
      	 
      
	 
      	
                  By:

                	
                  /s/ J Haynes Gentry III

                
	 
      	
                  Name:

                	
                  J
      Haynes Gentry, III

                
	 
      	
                  Title:

                	
                  Vice
      President

                

        

      

    

     

    
      
         

      

      
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                  U.S. BANK NATIONAL
      ASSOCIATION, as a 

                  Lender

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Matthew Kasper

                
	 
      	
                  Name:

                	
                  Matthew
      Kasper

                
	 
      	
                  Title:

                	
                  Assistant
      Vice-President

                

        

      

    

     

    
      
         

      

      
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                  CAPITAL ONE, N.A., as a Lender

                
	 
      
	 
      	
                  By:

                	
                  /s/ Mary Jo Hoch

                
	 
      	
                  Name:

                	
                  Mary
      Jo Hoch

                
	 
      	
                  Title:

                	
                  Senior
      Vice President

                

        

      

    

     

    
      
         

      

      
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                GENERAL
      ELECTRIC CAPITAL

                CORPORATION, as a
      Lender

              
	 
      
	 
      	
                By:

              	
                /s/ Maura Fitzgerald

              
	 
      	
                Name:

              	
                Maura
      Fitzgerald

              
	 
      	
                Title:

              	
                Vice
      President

              

      

    

     

    
      
         

      

      
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    CONSENT
OF GUARANTORS

     

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

     

    
      
        	 
      	
                BROOKHOLLOW
      CORPORATION

              
	 
      	
                BROOK
      HOLLOW PROPERTIES, INC.

              
	 
      	
                BROOKHOLLOW
      OF ALEXANDRIA, INC.

              
	 
      	
                BROOKHOLLOW
      OF VIRGINIA, INC.

              
	 
      	
                SOUTHWESTERN
      FINANCIAL

              
	 
      	
                CORPORATION

              
	 
      	
                CREOLE
      CORPORATION

              
	 
      	
                PARTIN
      LIMESTONE PRODUCTS, INC.

              
	 
      	
                RIVERSIDE
      CEMENT HOLDINGS COMPANY

              
	 
      	
                TXI
      AVIATION, INC.

              
	 
      	
                TXI
      CEMENT COMPANY

              
	 
      	
                TXI
      RIVERSIDE INC.

              
	 
      	
                TXI
      TRANSPORTATION COMPANY

              
	 
      	
                TXI
      CALIFORNIA INC.

              
	 
      	
                PACIFIC
      CUSTOM MATERIALS, INC.

              
	 
      	
                TXI
      POWER COMPANY

              
	 
      	
                TEXAS
      INDUSTRIES HOLDINGS, LLC

              
	 
      	
                TEXAS
      INDUSTRIES TRUST

              
	 
      	
                TXI
      LLC

              
	 
      	
                TXI
      OPERATING TRUST

              

      

    

     

    
      
        	 
      	
                By:

              	
                /s/ Sharon Ellis

              
	 
      	
                Name:

              	
                Sharon
      Ellis

              
	 
      	
                Title:

              	
                Treasurer

              

      

    

     

    
      
        	 
      	
                RIVERSIDE
      CEMENT COMPANY

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Sharon Ellis

              
	 
      	
                Name:

              	
                Sharon
      Ellis

              
	 
      	
                Title:

              	
                Treasurer

              

      

    

    
      
         

      

      
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                                  TXI
      OPERATIONS, LP

                                
	 	 	 
	 
      	
                                  By:

                                	
                                  TXI
      Operating Trust, its general partner

                                
	 	 	 
	 
      	
                                  By:

                                	
                                  /s/ Sharon Ellis

                                
	 
      	
                                  Name:

                                	
                                  Sharon
      Ellis

                                
	 
      	
                                  Title:

                                	
                                  Treasurer

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        16AMENDED
AND RESTATED SECURITY AGREEMENT

     

    THIS
AMENDED AND RESTATED SECURITY AGREEMENT (this "Agreement"), dated as
of June 19, 2009, is entered into by and among each of the parties
signatory hereto as Grantors (including any permitted successors and assigns,
collectively, the "Grantors" and each a
"Grantor"), and
Bank of America, N.A., as Administrative Agent ("Administrative
Agent"), for the ratable benefit of each Secured Party (as hereinafter
defined).

     

    BACKGROUND.

     

    A.           Bank
of America, N.A., as Administrative Agent, Swing Line Lender and L/C
Issuer, the Lenders party thereto, and Texas Industries, Inc., a Delaware
corporation (the "Borrower"), entered
into the First Amended and Restated Credit Agreement dated as of August 15,
2007 (as amended by a First Amendment dated January 28, 2008, a Second
Amendment dated March 20, 2008 and a Third Amendment dated
November 21, 2008, the "Existing Credit
Agreement").

     

    B.           In
connection with the Existing Credit Agreement, the Grantors entered into that
certain Security Agreement dated November 21, 2008 (the “Existing Security
Agreement”), pursuant to which the Grantors granted a first priority
security interest in personal property of the Grantors to Administrative
Agent.

     

    C.           Concurrently
herewith, the Borrower, Administrative Agent and the Required Lenders are
entering into a Second Amended and Restated Credit Agreement (the “Credit Agreement”),
pursuant to which the Existing Credit Agreement will be amended and restated in
its entirety.

     

    D.           It
is a condition precedent to effectiveness of the Credit Agreement that the
Grantors shall have executed and delivered to Administrative Agent this
Agreement which amends and restates the Existing Security
Agreement.

     

    AGREEMENT.

     

    NOW,
THEREFORE, in consideration of the premises set forth herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and in order to induce the Secured Parties to enter into the
Credit Agreement and continue to make Loans and the L/C Issuer to continue to
issue Letters of Credit under the Credit Agreement and to extend other credit
accommodations under the Loan Documents, each Grantor hereby agrees with
Administrative Agent, for the ratable benefit of the Secured Parties, to amend
and restate the Existing Security Agreement as follows, and hereby further
agrees as follows:

     

    ARTICLE
I

     

    DEFINITIONS

     

    1.1.         Definitions.  For purposes of
this Agreement:

    
      
         

      

      
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    "Accession" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to an accession (as
defined in the UCC), and (whether or not included in that definition), a good
that is physically united with another good in such a manner that the identity
of the original good is not lost.

     

    "Account" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to an account (as
defined in the UCC), and (whether or not included in such definition), a right
to payment of a monetary obligation, whether or not earned by performance, for
property that has been or is to be sold, leased, licensed, assigned, or
otherwise disposed of, and for service rendered or to be rendered, and all
right, title, and interest in any such returned property, together with all
rights, titles, securities, and guarantees with respect thereto, including any
rights to stoppage in transit, replevin, reclamation, and resales, and all
related Liens whether voluntary or involuntary.

     

    "Account Debtor" means
any Person who is or who may become obligated to each Grantor under, with
respect to or on account of an Account.

     

    “Aggregates” means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to all stone, sand,
gravel, limestone and similar minerals, including, but not limited to, all such
materials that constitute As-Extracted Collateral (excluding oil and
gas).

     

    “As-Extracted
Collateral” means all right, title, and interest of each Grantor (in each
case whether now or hereafter existing, owned, arising, or acquired) in and to
as-extracted collateral (as defined in the UCC), and (whether or not included in
such definition) all oil, gas and other minerals extracted by any Grantor from
real estate and all accounts arising out of the sale at the wellhead or minehead
of oil, gas and other minerals.

     

    "Chattel Paper" means
all right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to chattel paper (as
defined in the UCC), and (whether or not included in such definition) a Record
or Records that evidence both a monetary obligation and a security interest in
specific Goods, a security interest in specific Goods and Software used in the
Goods, or a lease of specific Goods.

     

    "Collateral" means all
(a) Accounts, (b) Accessions, (c) Chattel Paper,
(d) Commercial Tort Claims, including but not limited to the specific
Commercial Tort Claims described on Schedule 7,
(e) Commodity Accounts, (f) Commodity Contracts, (g) Deposit
Accounts, (h) Documents, (i) Equipment, (j) Financial Assets,
(k) General Intangibles, (l) Goods, (m) Intellectual Property,
(n) Instruments, (o) Inventory, (p) Investment Property,
(q) Letters of Credit, (r) Letter-of-Credit Rights, (s) Payment
Intangibles, (t) Permits, (u) Securities, (v) Securities
Accounts, (w) Security Entitlements, (x) Software, (y) supporting
obligations, (z) cash and cash accounts, (aa) Proceeds,
(ab) products of Collateral, (ac) Collateral Records,
(ad) Insurance, (ae) Money, and (af) Pledged Equity Interests,
provided that "Collateral" does not include any fixtures or real property or any
property or assets subject to a Lien permitted by clause (f) of the
definition of "Permitted Liens" in the Credit Agreement.

    
      
         

      

      
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    "Collateral Records"
shall mean books, records, ledger cards, files, correspondence, customer lists,
blueprints, technical specifications, manuals, computer software, computer
printouts, tapes, disks and related data processing software and similar items
that at any time evidence or contain information relating to any of the
Collateral or are otherwise necessary or helpful in the collection thereof or
realization thereupon.

     

    "Commercial Tort
Claim" means all right, title, and interest of each Grantor (in each case
whether now or hereafter existing, owned, arising, or acquired) in and to a
commercial tort claim (as defined in the UCC), and (whether or not included in
such definition), all claims arising in tort with respect to which the claimant
(a) is an organization, or (b) an individual and the claim
(i) arose in the course of the claimant's business or profession, and
(ii) does not include damages arising out of personal injury to or the
death of an individual.

     

    "Commodity Account"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a commodity
account (as defined in the UCC), and (whether or not included in such
definition), an account maintained by a Commodity Intermediary in which a
Commodity Contract is carried for a Commodity Customer.

     

    "Commodity Contract"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a commodity
futures contract, an option on a commodity futures contract, a commodity option,
or any other contract if the contract or option is (a) traded on or subject
to the rules of a board of trade that has been designated as a contract market
for such a contract pursuant to the federal commodities Laws, or (b) traded
on a foreign commodity board of trade, exchange, or market, and is carried on
the books of a Commodity Intermediary for a Commodity Customer.

     

    "Commodity Customer"
means a Person for whom a Commodity Intermediary carries a Commodity Contract on
its books.

     

    "Commodity
Intermediary" means (a) a Person that is registered as a futures
commission merchant under the federal commodities Laws or (b) a Person that
in the ordinary course of its business provides clearance or settlement services
for a board of trade that has been designated as a contract market pursuant to
federal commodities Laws.

     

    "Copyright License"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to any written
agreement, now or hereafter in effect, granting any right to any third party
under any Copyright now or hereafter owned by each such Grantor or which each
such Grantor otherwise has the right to license, or granting any right to each
such Grantor under any Copyright now or hereafter owned by any third party, and
all rights of each such Grantor under any such agreement.

     

    "Copyrights" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to (a) all
copyright rights in any work subject to the copyright Laws of any Governmental
Authority, whether as author, assignee, transferee, or otherwise set forth on
Schedule 5(d),
(b) all registrations and applications for registration of any such
copyright in any Governmental Authority, including registrations, recordings,
supplemental registrations, and pending applications for registration in any
jurisdiction, and (c) all rights to use and/or sell any of the
foregoing.

    
      
         

      

      
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    "Deposit Account"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a deposit account
(as defined in the UCC), and (whether or not included in such definition), a
demand, time, savings, passbook, or similar account maintained at a bank (as
defined in the UCC).

     

    "Document" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to a document (as
defined in the UCC), and (whether or not included in such definition), a
document of title, bill of lading, dock warrant, dock receipt, warehouse
receipt, or order for the delivery of Goods.

     

    "Electronic Chattel
Paper" means all right, title, and interest of each Grantor (in each case
whether now or hereafter existing, owned, arising, or acquired) in and to
electronic chattel paper (as defined in the UCC), and (whether or not included
in such definition), chattel paper evidenced by a Record or Records consisting
of information stored in electronic medium.

     

    "Entitlement Holder"
means a Person identified in the records of a Securities Intermediary as the
Person having a Security Entitlement against the Securities Intermediary. If a
Person acquires a Security Entitlement by virtue of Section 8.501(b)(2) or
(3) of the UCC, such Person is the Entitlement Holder.

     

    "Equipment" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to equipment (as defined
in the UCC), and (whether or not included in such definition), all Rolling Stock
and Goods other than Inventory, farm products or consumer goods, and all
improvements, accessions, or appurtenances thereto.

     

    "Financial Asset"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a financial asset
(as defined in the UCC), and (whether or not included in such definition),
(a) a Security, (b) an obligation of a Person or a share,
participation or other interest in a Person or in property or an enterprise of a
Person, that is, or is of a type, dealt in or traded on financial markets or
that is recognized in any area in which it is issued or dealt in as a medium for
investment, or (c) any property that is held by a Securities Intermediary
for another Person in a Securities Account if the Securities Intermediary has
expressly agreed with the other Person that the property is to be treated as a
financial asset under Chapter 8 of the UCC. As the context requires, "Financial
Asset" means either the interest itself or the means by which a Person's claim
to it is evidenced, including a certificated or uncertificated Security, a
certificate representing a Security, or a Security Entitlement.

     

    "General Intangible"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a general
intangible (as defined in the UCC), and (whether or not included in such
definition) all other personal property, including things in action, other than
Accounts, Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents,
Goods, Instruments, Investment Property, Letter-of-Credit Rights, Letters of
Credit, Money, and oil, gas or other minerals before
extraction.

    
      
         

      

      
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    "Goods" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to goods (as defined in
the UCC).

     

    "Governmental
Authority" means any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body,
court, administrative tribunal, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government, and any corporation or other entity
owned or controlled, through stock or capital ownership or otherwise, by any of
the foregoing.

     

    "Instrument" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to an instrument (as
defined in the UCC), and (whether or not included in such definition), a
negotiable instrument or any other writing that evidences a right to the payment
of a monetary obligation, is not itself a security agreement or lease, and is of
a type that in ordinary course of business is transferred by delivery with any
necessary indorsement or assignment.

     

    "Insurance" shall mean
all right, title and interest to insurance policies covering any or all of the
Collateral (regardless of whether Administrative Agent is the loss payee
thereof).

     

    "Intellectual
Property" means all right, title, and interest of each Grantor (in each
case whether now or hereafter existing, owned, arising, or acquired) in and to
all Patents, Copyrights, Licenses, Trademarks, Trade Secrets, confidential or
proprietary technical and business information, know-how, show-how or other data
or information, Software and databases and all embodiments or fixations thereof
and related documentation, registrations and franchises, and all additions,
improvements and accessions to, and books and records describing or used in
connection with, any of the foregoing.

     

    "Inventory" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to inventory (as defined
in the UCC), and (whether or not included in such definition), Goods (other than
farm products) that (a) are leased by such Grantor as lessor, (b) are
held by such Grantor for sale or lease or to be furnished under a contract of
service, (c) are furnished by such Grantor under a contract of service, or
(d) consist of raw materials (including Aggregates), work in process, or
materials used or consumed in a business, including packaging materials, scrap
material, manufacturing supplies and spare parts, and all such Goods that have
been returned to or repossessed by or on behalf of such Grantor.

     

    "Investment Property"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to investment
property (as defined in the UCC), and (whether or not included in such
definition), a Security (whether certificated or uncertificated), a Security
Entitlement and a Securities Account.

    
      
         

      

      
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    "Letter of Credit"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a letter of credit
(as defined in the UCC).

     

    "Letter-of-Credit
Right" means all right, title, and interest of each Grantor (in each case
whether now or hereafter existing, owned, arising, or acquired) in and to a
letter-of-credit right (as defined in the UCC), and (whether or not included in
such definition), a right to payment or performance under a letter of credit,
whether or not the beneficiary has demanded or is at the time entitled to demand
payment or performance.

     

    "License" means any
Patent License, Trademark License, Copyright License, or other similar license
or sublicense.

     

    "Money" shall mean
"money" as defined in the UCC.

     

    "Patent License" means
all right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to any written
agreement, now or hereafter in effect, granting to any third party any right to
make, use or sell any invention on which a Patent, now or hereafter owned by
each such Grantor or which each such Grantor otherwise has the right to license,
is in existence, or granting to each such Grantor any right to make, use or sell
any invention on which a Patent, now or hereafter owned by any third party, is
in existence, and all rights of each such Grantor under any such
agreement.

     

    "Patents" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to (a) all letters
patent of any Governmental Authority set forth on Schedule 5(b),
all registrations and recordings thereof, and all applications for letters
patent of any Governmental Authority set forth on Schedule 5(c),
and (b) all reissues, continuations, divisions, continuations-in-part,
renewals, or extensions thereof, and the inventions disclosed or claimed
therein, including the right to make, use and/or sell the inventions disclosed
or claimed therein.

     

    "Payment Intangible"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a payment
intangible (as defined in the UCC), and (whether or not included in such
definition), a General Intangible under which the Account Debtor's principal
obligation is a monetary obligation.

     

    "Permit" means all right, title,
and interest of each Grantor (in each case whether now or hereafter existing,
owned, arising, or acquired) in and to any authorization, consent, approval,
permit, license or exemption of or from a Governmental Authority, together with
any registration or filing with, or report or notice to, any such Governmental
Authority as part of such authorization, consent, approval, permit, license or
exemption.

     

    "Pledged Equity
Interests" shall mean all Pledged Stock, Pledged LLC Interests, Pledged
Partnership Interests and Pledged Trust Interests, provided, however,
notwithstanding anything herein to the contrary, the amount of pledged equity
interests of any Foreign Subsidiary pledged by any Grantor shall be limited to
66% of the issued and outstanding equity interests of such Foreign Subsidiary
owned directly by such Grantor.

    
      
         

      

      
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    "Pledged LLC
Interests" shall mean, with respect to each Grantor, all interests of
such Grantor in any limited liability company and the certificates, if any,
representing such limited liability company interests and any interest of such
Grantor on the books and records of such limited liability company or on the
books and records of any Securities Intermediary pertaining to such interest and
all dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all of such
limited liability company interests, provided, however,
notwithstanding anything herein to the contrary, the amount of pledged limited
liability company interests of any Foreign Subsidiary pledged by any Grantor
shall be limited to 66% of the issued and outstanding limited liability company
interests of such Foreign Subsidiary owned directly by such
Grantor.

     

    "Pledged Partnership
Interests" shall mean, with respect to each Grantor, all interests of
such Grantor in any general partnership, limited partnership, limited liability
partnership or other partnership and the certificates, if any, representing such
partnership interests and any interest of such Grantor on the books and records
of such partnership or on the books and records of any Securities Intermediary
pertaining to such interest and all dividends, distributions, cash, warrants,
rights, options, instruments, securities and other property or proceeds from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of such partnership interests, provided, however,
notwithstanding anything herein to the contrary, the amount of pledged general
partnership, limited partnership, limited liability partnership or other
partnership interests of any Foreign Subsidiary pledged by any Grantor shall be
limited to 66% of the issued and outstanding general partnership, limited
partnership, limited liability partnership or other partnership interests of
such Foreign Subsidiary owned directly by such Grantor.

     

    "Pledged Stock" shall
mean, with respect to each Grantor, all shares of capital stock owned by such
Grantor and the certificates, if any, representing such shares and any interest
of such Grantor on the books of the issuer of such shares or on the books of any
Securities Intermediary pertaining to such shares, and all dividends,
distributions, cash, warrants, rights, options, instruments, securities and
other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such shares, provided, however,
notwithstanding anything herein to the contrary, the amount of pledged capital
stock of any Foreign Subsidiary pledged by any Grantor shall be limited to 66%
of the issued and outstanding capital stock of such Foreign Subsidiary owned
directly by such Grantor.

     

    "Pledged Trust
Interests" shall mean, with respect to each Grantor, all interests of
such Grantor in a business trust or other trust and the certificates, if any,
representing such trust interests and any interest of such Grantor on the books
and records of such trust or on the books and records of any Securities
Intermediary pertaining to such interest and all dividends, distributions, cash,
warrants, rights, options, instruments, securities and other property or
proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such trust
interests.

    
      
         

      

      
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    "Proceeds" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to proceeds (as defined
in the UCC) of Collateral, and (whether or not included in such definition),
(a) whatever is acquired upon the sale, lease, license, exchange, or other
disposition of the Collateral, (b) whatever is collected on, or distributed
on account of, the Collateral, (c) rights arising out of the Collateral,
(d) claims arising out of the loss, nonconformity, or interference with the
use of, defects or infringement of rights in, or damage to the Collateral,
(e) insurance payable by reason of the loss or nonconformity of, defects or
infringement of rights in, or damage to the Collateral, and (f) any and all
other amounts from time to time paid or payable under or in connection with any
of the Collateral.

     

    "Record" means
information that is inscribed on a tangible medium or that is stored in an
electronic or other medium and is retrievable in perceivable form.

     

    "Release Date" means
the date on which all of the conditions set forth in Section 9.10(a)(i)
of the Credit Agreement have been satisfied.

     

    “Responsible Senior
Officer” means the chief financial officer, general counsel or treasurer
of the Borrower.

     

    “Rolling Stock” means
all right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to all locomotives,
railcars, automobiles, trucks, trailers, tractors, bulldozers, scrapers,
loaders, forklifts and other motor vehicles and mobile equipment.

     

    "Secured Party" has
the meaning given to such term in the Credit Agreement.

     

    "Secured Obligations"
has the meaning given to such term in the Credit Agreement.

     

    "Securities Account"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to an account to
which a Financial Asset is or may be credited in accordance with an agreement
under which the Person maintaining the account undertakes to treat the Person
for whom the account is maintained as entitled to exercise rights that comprise
the Financial Asset.

     

    “Securities
Collateral” has the meaning specified in Section
4.5.

     

    "Securities
Intermediary" means (a) a clearing corporation, or (b) a
Person, including a bank or broker, that in the ordinary course of its business
maintains securities accounts for others and is acting in that
capacity.

     

    "Security" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to any obligation of an
issuer or any share, participation or other interest in an issuer or in property
or an enterprise of an issuer which (a) is represented by a certificate
representing a security in bearer or registered form, or the transfer of which
may be registered upon books maintained for that purpose by or on behalf of the
issuer, (b) is one of a class or series or by its terms is divisible into a
class or series of shares, participations, interests or obligations, and
(c)(i) is, or is of a type, dealt with or traded on securities exchanges or
securities markets or (ii) is a medium for investment and by its terms
expressly provides that it is a security governed by Chapter 8 of the
UCC.

    
      
         

      

      
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    "Security
Entitlements" means all right, title, and interest of each Grantor (in
each case whether now or hereafter existing, owned, arising, or acquired) in and
to the rights and property interests as and of an Entitlement Holder with
respect to a Financial Asset.

     

    "Software" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to software (as defined
in the UCC), and (whether or not included in such definition), a computer
program (including both source and object code) and any supporting information
provided in connection with a transaction relating to the program.

     

    "Tangible Chattel
Paper" means all right, title, and interest of each Grantor (in each case
whether now or hereafter existing, owned, arising, or acquired) in and to
tangible chattel paper (as defined in the UCC), and (whether or not included in
such definition), chattel paper evidenced by a Record or Records consisting of
information that is inscribed on a tangible medium.

     

    "Trade Secrets" means
all right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to all trade secrets,
know-how, inventions, processes, methods, information, data, plans, blueprints,
specifications, designs, drawings, engineering reports, test reports, materials
standards, processing standards and performance standards, and all Software
directly related thereto, and all Licenses or other agreements to which such
Grantor is a party with respect to any of the foregoing.

     

    "Trademark License"
means all right, title, and interest of each Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to any written
agreement, now or hereafter in effect, granting to any third party any right to
use any Trademark now or hereafter owned by such Grantor or which such Grantor
otherwise has the right to license, or granting to such Grantor any right to use
any Trademark now or hereafter owned by any third party, and all rights of such
Grantor under any such agreement.

     

    "Trademarks" means all
right, title, and interest of each Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to (a) all
trademarks, service marks, trade names, corporate names, company names, business
names, fictitious business names, trade styles, trade dress, logos, other source
or business identifiers, designs and general intangibles of like nature, all
registrations and recordings thereof set forth on Schedule 5(a),
and all registration and recording applications filed with any Governmental
Authority in connection therewith, and all extensions or renewals thereof,
(b) all goodwill associated therewith or symbolized thereby, (c) all
other assets, rights and interests that uniquely reflect or embody such
goodwill, (d) all rights to use and/or sell any of the foregoing, and
(e) the portion of the business to which each trademark
pertains.

     

    "UCC" means
Chapters 8 and 9 of the Uniform Commercial Code as in effect from time to
time in the State of Texas.

     

    1.2.         Other Definitional
Provisions.  Capitalized terms not otherwise defined herein
have the meaning specified in the Credit Agreement, and, to the extent of any
conflict, terms as defined in the Credit Agreement shall control (provided, that a more
expansive or explanatory definition shall not be deemed a
conflict).

    
      
         

      

      
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    1.3.         Construction.  Unless otherwise
expressly provided in this Agreement or the context requires otherwise,
(a) the singular shall include the plural, and vice versa, (b) words of
a gender include the other genders, (c) monetary references are to Dollars,
(d) time references are to Dallas time, (e) references to "Articles,"
"Sections," "Exhibits," and "Schedules" are to the Articles, Sections, Exhibits,
and Schedules of and to this Agreement, (f) headings used in this Agreement
are for convenience only and shall not be used in connection with the
interpretation of any provision hereof, (g) references to any Person
include that Person's heirs, personal representatives, successors, trustees,
receivers, and permitted assigns, that Person as a debtor-in possession, and any
receiver, trustee, liquidator, conservator, custodian, or similar party
appointed for such Person or all or substantially all of its assets,
(h) references to any Law include every amendment or restatement to it,
rule and regulation adopted under it, and successor or replacement for it,
(i) references to a particular Loan Document include each amendment or
restatement to it made in accordance with the Credit Agreement and such Loan
Document, and (j) the inclusion of Proceeds in the definition of
"Collateral" shall not be deemed a consent by the Secured Parties to any sale or
other disposition of any Collateral not otherwise specifically permitted by the
terms of the Credit Agreement or this Agreement.  This Agreement is a
Loan Document.

     

    ARTICLE
II

     

    GRANT
OF SECURITY INTEREST

     

    2.1.         Assignment and Grant of
Security Interest. As security for the payment and performance, as the
case may be, in full of the Secured Obligations, each Grantor hereby ratifies
and confirms its assignment, pledge and grant to Administrative Agent (pursuant
to the Existing Security Agreement), for its benefit and the ratable benefit of
the other Secured Parties, of:

     

    (a)           a
security interest in the entire right, title, and interest of Grantor in and to
all Collateral of each such Grantor, whether now or hereafter existing, owned,
arising or acquired (provided, the amount
of Equity Interests of any Foreign Subsidiary pledged by such Grantor hereunder
shall be limited to 66% of the issued and outstanding Equity Interests of such
Foreign Subsidiary directly owned by such Grantor); and

     

    (b)           an
irrevocable royalty-free right and license to use, upon the occurrence and
during continuance of an Event of Default, the Intellectual Property of such
Grantor worldwide in order to enable Administrative Agent to exercise its rights
and remedies with respect to the Collateral as Administrative Agent reasonably
deems necessary or appropriate.

    
      
         

      

      
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    To the
extent (if any) necessary to make such security interest, right and license
effective as to any Collateral, each Grantor also assigns, pledges and grants
the same to Administrative Agent for its benefit and the ratable benefit of the
other Secured Parties.  The Collateral shall not include any
agreement, license or permit which by Law or its terms validly prohibits the
granting of a security interest therein unless a consent to the security
interest and pledge hereunder has been obtained; provided that the
foregoing limitation shall not affect, limit, restrict, or impair the grant by
each Grantor of a security interest pursuant to this Agreement in any such
Collateral to the extent that an otherwise applicable prohibition on such grant
is rendered ineffective by the UCC or other applicable
Law.  Collateral shall not include any general intangibles to the
extent the grant by such Grantor of a security interest pursuant to this
Agreement in such general intangibles is expressly prohibited or restricted,
unless such prohibition or restriction is rendered ineffective pursuant to
Section 9.408 of the UCC, provided that the foregoing limitation shall not
affect, limit, restrict or impair the grant by such Grantor of a security
interest pursuant to this Agreement in any money or other amounts due or sums
due in respect of such general intangible under Section 9.408 of the
UCC.

     

    2.2.         Grantor Remains
Liable.  Anything herein to the contrary notwithstanding,
(a) each Grantor shall remain liable under the contracts and agreements
included in such Grantor’s Collateral to the extent set forth therein to perform
all of its duties and obligations thereunder to the same extent as if this
Agreement had not been executed, (b) the exercise by any Secured Party of
any of the rights hereunder shall not release any Grantor from any of its duties
or obligations under the contracts and agreements included in such Grantor’s
Collateral, and (c) no Secured Party shall have any obligation or liability
under the contracts and agreements included in such Grantor’s Collateral by
reason of this Agreement, nor shall any Secured Party be obligated to perform
any of the obligations or duties of any Grantor thereunder or to take any action
to collect or enforce any claim for payment assigned hereunder.

     

    2.3.         Delivery of Pledged Equity
Interests.  All certificates or instruments constituting or
evidencing the Pledged Equity Interests shall be delivered to and held by or on
behalf of Administrative Agent pursuant hereto and shall be in suitable form for
transfer by delivery, or shall be accompanied by undated and duly executed
instruments of transfer or assignment in blank, all in form and substance
reasonably satisfactory to Administrative Agent.  If an Event of
Default exists, Administrative Agent has the right, without notice to any
Grantor, to register in the name of Administrative Agent or any of its nominees
any or all of such Collateral.  In addition, Administrative Agent has
the right at any time, with the consent of the Borrower prior to an Event of
Default, to exchange certificates or instruments representing or evidencing
Pledged Equity Interests for certificates or instruments of smaller or larger
denominations.

     

    ARTICLE
III

     

    REPRESENTATIONS
AND WARRANTIES

     

    3.1.         Representations and
Warranties.  Each Grantor
represents and warrants to each Secured Party with respect to itself and the
Collateral owned by it that:

     

    (a)           This
Agreement and the grant of the security interest pursuant to this Agreement in
the Collateral create a valid first priority security interest in favor of
Administrative Agent for the ratable benefit of the Secured Parties in the
Collateral (subject to Permitted Liens), securing the payment and performance of
the Secured Obligations, and all filings and other actions necessary to perfect
and protect such security interest and such priority (other than with respect to
Collateral consisting of (i) Rolling Stock that is not Eligible Rolling Stock,
(ii) Aggregates constituting As-Extracted Collateral, (iii) certain Deposit
Accounts over which Administrative Agent is not required to have control
pursuant to Section 6.15 of the Credit Agreement, (iv) Instruments and Chattel
Paper that remain in a Grantor’s possession, and (v) Letters of Credit over
which Administrative Agent does not have control) have been duly taken (or will
be taken upon any Grantor obtaining rights in Collateral after the date
hereof), subject, however, with respect to
Proceeds, to the provisions of Section 9.315 of the
UCC.

    
      
         

      

      
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    (b)           Each
Grantor has good and indefeasible title to, or a valid leasehold interest in,
all of the Collateral free and clear of any Lien, except for Permitted
Liens.  No Grantor has granted a currently effective security interest
or other Lien in or made a currently effective assignment of any of the
Collateral (except for Permitted Liens).  No Grantor has entered into
nor is it or any of its property subject to any agreement limiting the ability
of such Grantor to grant a Lien in any Collateral of such Grantor, or the
ability of such Grantor to agree to grant or not grant a Lien in any property of
such Grantor (in each case, except as permitted by the Credit
Agreement).  None of the Collateral is consigned Goods or subject to
any agreement of repurchase except in the ordinary course of business, nor is
any Collateral subject to any dispute, defense, or counterclaim.  No
effective financing statement or other similar document used to perfect and
preserve a security interest or other Lien under the Laws of any jurisdiction
covering all or any part of the Collateral is on file in any recording office,
except such as may have been filed (i) pursuant to this Agreement or other
Loan Document, or (ii) relating to Permitted Liens.  Except as
permitted under the Credit Agreement, no Grantor has made any presently
effective sale of any interest in any of its Accounts (other than past due or
doubtful Accounts assigned to third parties for collection), Chattel Paper,
promissory notes, or Payment Intangibles.  Except for consignments of
immaterial amounts Inventory that do not constitute Eligible Inventory, no
Grantor has consigned any of its Inventory.

     

    (c)           All
of the Pledged Equity Interests have been duly and validly issued, and the
Pledged Stock is fully paid and nonassessable.  All of the Pledged
Equity Interests consisting of certificated securities have been delivered to
Administrative Agent.  Other than Pledged Partnership Interests,
Pledged LLC Interests and Pledged Trust Interests (which constitute General
Intangibles and not Securities), there are no Pledged Equity Interests other
than those represented by certificated securities in the possession of
Administrative Agent.  There are no restrictions in any Organization
Document governing any Pledged Equity Interest or any other document related
thereto which would limit or restrict (i) the grant of a Lien in the
Pledged Equity Interests, (ii) the perfection of such Lien or
(iii) the exercise of remedies in respect of such perfected Lien in the
Pledged Equity Interests as contemplated by this Agreement that have not been
waived.  Upon the exercise of remedies in respect of Pledged
Partnership Interests, Pledged LLC Interests and Pledged Trust Interests, a
transferee or assignee of a partnership interest, a membership interest, or a
trust interest, as the case may be, of such partnership, limited liability
company or trust, as the case may be, shall become a partner, member, trustee,
beneficiary or settlor, as the case may be, of such partnership, limited
liability company or trust, as the case may be, entitled to participate in the
management thereof to the extent such partnership, membership or trust interest
would otherwise permit such transferee or assignee to participate in management,
and, upon the transfer of the entire interest of such Grantor, such Grantor
ceases to be a partner, member, trustee, beneficiary or settlor, as the case may
be.

    
      
         

      

      
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    (d)           Schedule 1
states the exact name of each Grantor, as such name appears in its currently
effective organizational documents as filed with the appropriate authority of
the jurisdiction of each Grantor's organization.  Schedule 1,
Section (a)
states the jurisdiction of organization of each Guarantor.  Schedule 1,
Section (b) sets
forth the type of entity and each other name each Grantor has had in the past
two years, together with the date of the relevant change.  Except as
set forth in Schedule 1,
Section (c),
each Grantor has not changed its identity or type of entity in any way within
the past two years.  Changes in identity or type of entity include
mergers, consolidations, conversions, and any change in the form, nature, or
jurisdiction of organization.  Schedules 1 and
2 contain the
information required by this Section as to each acquiree or constituent party to
a merger, consolidation, or conversion within the preceding two years. Schedule 1,
Section (d)
states all other names (including trade, assumed, and similar names) used by
each Grantor or any of its divisions or other business units at any time during
the past two years.  Schedule 1,
Section (e)
states the Federal Taxpayer Identification Number of each
Grantor.  Schedule 1,
Section (f)
states the corporate or other organizational number of each
Grantor.

     

    (e)           As
of the Closing Date, the chief executive office of each Grantor is located at
the address stated on Schedule 2,
Section (a) and
Schedule 2,
Section (b)
states all locations where each Grantor maintains any books or records relating
to all Accounts (with each location at which Chattel Paper, if any, is kept
being indicated by an "*").  As of the Closing Date, Schedule 2,
Section (c)
states all locations where each Grantor maintains any Equipment or
Inventory.  As of the Closing Date, Schedule 2,
Section (d)
states all the places of business of each Grantor or other locations of material
Collateral not identified in Schedule 2,
Sections 2(a),
(b), or (c).   As
of the Closing Date, Schedule 2,
Section (e)
states the names and addresses of all Persons other than each Grantor who have
possession of any of the Collateral of each such Grantor, other than (i)
Equipment temporarily out of service or out of repair, (ii) Inventory in the
hands of transporters, and (iii) immaterial amounts of Inventory that is not,
and is not claimed to be, Eligible Inventory but is instead in the hands of
third party processors, storage providers and consignees.

     

    (f)           No
Grantor owns any aircraft, ships or other vessels.

     

    (g)           Each
Grantor has exclusive possession and control of the Equipment and Inventory
pledged by it hereunder, other than Equipment temporarily out of service or out
for repair and Inventory in the hands of third party processors, transporters or
storage providers.

     

    (h)           As
of the Closing Date, Schedule 3 is a
complete and correct list of all the issued and outstanding stock, partnership
interests, limited liability company membership interests, or other equity
interest of each Grantor and the record and beneficial owners of such stock,
partnership interests, membership interests or other equity
interests.  Also set forth on Schedule 3 is
each equity investment of each Grantor that represents 50% or less of the equity
of the entity in which such investment was made as of the Closing
Date.

    
      
         

      

      
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    (i)           As
of the Closing Date, Schedule 4 is a
complete and correct list of each promissory note and other Instrument
evidencing indebtedness owed to and held by each Grantor (excluding all
intercompany notes and other instruments between each Grantor and each
Subsidiary, and each Subsidiary and each other Subsidiary).

     

    (j)           As
of the Closing Date, Schedule 5(a) is
a complete and correct list of each United States Trademark registration and
Trademark application in which each Grantor has any interest as owner, including
the name of the registered owner, the registered or applied for Trademark, and
the Trademark application serial and/or registration number.  As of
the Closing Date, no Grantor owns or is the licensee of any non-United States
Trademark, or is the licensee of any United States Trademark, that in each case
is material to its business.

     

    (k)           As
of the Closing Date, Schedule 5(b) is
a complete and correct list of each United States Patent in which each Grantor
has any interest as owner, including the name of the registered owner and the
Patent number.  As of the Closing Date, no Grantor owns or is the
licensee of any non-United States Patent, or is the licensee of any United
States Patent, that in each case is material to its business.

     

    (l)           As
of the Closing Date, Schedule 5(c) is
a complete and correct list of each United States Patent application in which
each Grantor has any interest as owner, including the name of the Person
applying to be the registered owner and the Patent application
number.  As of the Closing Date, no Grantor owns or is the licensee of
any non-United States Patent application, or is the licensee of any United
States Patent application, that in each case is material to its
business.

     

    (m)           As
of the Closing Date, Schedule 5(d) is
a complete and correct list of each United States Copyright (including the
related registration and Copyright application, if any) in which each Grantor
has any interest as owner, including the name of the registered owner, the title
of the work which is the subject of the registered or applied for Copyright, and
the registration number (if applicable).  As of the Closing Date, no
Grantor (i) owns or is the licensee of any non-United States Copyright, (ii) has
pending any non-United States Copyright application or (iii) is the licensee of
any United States Copyright that, in each case, is material to its
business.

     

    (n)           As
of the Closing Date, Schedule 5(e) is
a complete and correct list of all allegations of use under Section 1(c) or
1(d) of the Trademark Act (15 U.S.C. §1051, et seq.) filed under the
Trademark Act by each Grantor.

     

    (o)           As
of the Closing Date, Schedule 6 is a
complete and correct list of all material Software (other than non-custom
generally available Software) in which each Grantor has any interest (either as
owner or licensee), including the name of the licensor and the escrow agent
under the applicable Software escrow agreement (if any).

    
      
         

      

      
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    (p)           As
of the Closing Date, Schedule 7 is a
complete and correct list of all pending Commercial Tort Claims known to a
Responsible Senior Officer in which any Grantor has any interest, including the
complete case name or style, the case number, and the court or other tribunal in
which the case is pending.

     

    (q)           As
of the Closing Date, except as set forth on Schedule 8, no
consent of any other Person and no authorization, approval or other action by,
and no notice to or filing with, any Governmental Authority is required
(i) for the pledge by each Grantor of the Collateral pledged by it
hereunder, for the grant by each Grantor of the security interest granted
hereby, or for the execution, delivery, or performance of this Agreement by each
Grantor, (ii) for the perfection or maintenance of the pledge, assignment,
and security interest created hereby (including the first priority nature of
such pledge, assignment, and security interest) as contemplated herein or
(iii) for the enforcement of remedies by Administrative Agent or any other
Secured Parties.

     

    (r)           As
of the Closing Date, Schedule 9 is a
complete and correct list of all insurance policies covering losses with respect
to Collateral for which each Grantor is a named insured.

     

    (s)           With
respect to each Account of such Grantor at the time it is shown as an Eligible
Account in a Borrowing Base Certificate:

     

    (i)    it
is, at such time, an Eligible Account, meeting all requirements for Eligible
Accounts set out in the Credit Agreement;

     

    (ii)   it
is for a sum certain, maturing as stated in the invoice covering such sale or
rendition of services, a copy of which has been furnished or is available to
Administrative Agent on request;

     

    (iii)  no
purchase order, agreement, document or Applicable Law restricts assignment of
the Account to Administrative Agent (regardless of whether, under the UCC, the
restriction is ineffective), and such Grantor is the sole payee or remittance
party shown on the invoice; and

     

    (iv)  to
the knowledge of the Responsible Senior Officers, (i) there are no facts or
circumstances that are reasonably likely to impair the enforceability or
collectability of such Account; (ii) the Account Debtor had the capacity to
contract when the Account arose, continues to meet such Grantor’s customary
credit standards, is Solvent, is not contemplating or subject to any proceeding
under Debtor Relief Laws, and has not failed, or suspended or ceased doing
business; and (iii) there are no proceedings or actions threatened or pending
against any Account Debtor that could reasonably be expected to have a material
adverse effect on the Account Debtor's financial condition.

     

    (t)           As
of the Closing Date, Schedule 10 is a
complete list of all the Securities Accounts in which each Grantor has any
interest.

    
      
         

      

      
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    (u)           As
of the Closing Date, Schedule 11 is a
complete list of all Letter-of-Credit Rights in which any Grantor has an
interest.

     

    ARTICLE
IV

     

    COVENANTS

     

    4.1.         Further
Assurances.

     

    (a)           Each
Grantor will, from time to time and at each Grantor's expense, promptly execute
and deliver such financing or continuation statements, or amendments thereto,
such control agreements and such patent or trademark filings and promptly
deliver such certificated securities, as may be necessary, or as Administrative
Agent may request, in order to perfect and preserve the pledge, assignment, and
security interest granted or purported to be granted hereby, and take all
further action in connection with the filing of such financing or continuation
statements or amendments thereto, such control agreements and such patent or
trademark office filings that Administrative Agent may reasonably request, in
order to perfect and protect any pledge, assignment, or security interest
granted or purported to be granted hereby, and the priority thereof, or to
enable Administrative Agent to exercise and enforce Administrative Agent's and
other Secured Parties' rights and remedies hereunder with respect to any
Collateral.  Without limitation to the foregoing, within 30 days
following the Closing Date each Grantor shall take all actions necessary to
establish Administrative Agent’s control, for the purposes of 9-106 of the UCC,
of each Securities Account owned by it, provided, that Administrative Agent
agrees not to exercise such control unless an Event of Default has occurred and
is continuing.

     

    (b)           In
addition to such other information as shall be specifically provided for herein,
each Grantor shall promptly furnish to Administrative Agent such other
information with respect to the Collateral as Administrative Agent may
reasonably request.

     

    (c)           Each
Grantor will not, and will not permit any Person to, revise, modify, amend, or
restate the Organization Documents of any Person the Equity Interests in which
is Pledged Equity Interests in a manner that adversely affects the security
interest of Administrative Agent therein, except as permitted by the Credit
Agreement, or terminate, cancel, or dissolve any such Person except as permitted
by the Credit Agreement.

     

    (d)           Each
Grantor shall promptly, and in any event within five Business Days after any
Responsible Senior Officer obtains knowledge thereof, notify Administrative
Agent in writing if, after the Closing Date, it obtains any interest in any
Collateral consisting of Deposit Accounts, Securities Accounts, Documents or
Letter-of-Credit Rights and, upon Administrative Agent's request (except with
respect to Petty Cash Accounts and as set forth in Section 4.2(c)), shall
promptly take such actions as Administrative Agent deems appropriate to effect
Administrative Agent's duly perfected, first priority Lien upon such Collateral,
including obtaining any appropriate possession, control agreement or Lien
Waiver.

    
      
         

      

      
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    (e)           Within
ten Business Days after a Grantor’s general counsel learns of the existence of
any Commercial Tort Claim and concludes that it is a valid and material claim
that such Grantor intends to prosecute, each Grantor will notify Administrative
Agent of such Commercial Tort Claim and, if Administrative Agent requests, such
Grantor shall enter into an amendment to this Agreement granting to
Administrative Agent a first priority security interest in such Commercial Tort
Claim.

     

    (f)           Each
Grantor authorizes Administrative Agent to file one or more financing or
continuation statements and amendments thereto and any patent and trademark
filings, relating to all or any part of the Collateral without the
authentication of any Grantor where permitted by Law.  Such financing
statements may describe the Collateral as “all personal property other than
fixtures” of such Grantor.  Administrative Agent hereby agrees, upon
request by any Grantor, to amend or partially release all financing statements
and similar filings covering Collateral to exclude from the coverage thereof any
properties or assets that now or hereafter are fixtures or are subject to a Lien
permitted by clause (f) of the definition of "Permitted Liens" in the Credit
Agreement.  A photocopy or other reproduction of this Agreement or any
financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by Law.  Each
Grantor ratifies its execution and delivery of, and the filing of, any financing
statement describing any of the Collateral which was filed prior to the date of
this Agreement.

     

    (g)           Notwithstanding
anything to the contrary herein, each Grantor shall take such actions with
respect to perfection of Administrative Agent’s Lien on Rolling Stock as are
required under the Credit Agreement, and no Grantor shall be obligated hereunder
to take any action not required under the Credit Agreement to perfect
Administrative Agent’s Lien on any Rolling Stock.

     

    4.2.         Place of Perfection;
Records; Collection of Accounts, Chattel Paper and Instruments; Letters of
Credit

     

    (a)           No
Grantor shall change the jurisdiction of its organization from the jurisdiction
specified in Schedule 1,
Section (a), its
type of entity from the type of entity specified in Schedule 1,
Section (b), or
its name from the name specified in Schedule 1,
unless the appropriate Grantor has delivered to Administrative Agent 30 days
prior written notice and taken such actions as Administrative Agent may
reasonably require with respect to such change.  Each Grantor shall
keep its chief executive office at the address specified in Schedule 2,
Section (a), and
the offices where it keeps its books and records concerning the Accounts, and
the originals of all Chattel Paper and Instruments not otherwise delivered to
Administrative Agent, at the addresses specified in Schedule 2,
Section (b),
unless the appropriate Grantor has delivered to Administrative Agent 30 days
prior written notice and taken such actions as Administrative Agent may
reasonably require with respect to such change.  Each Grantor will
hold and preserve such records and Chattel Paper and Instruments and will permit
representatives of Administrative Agent at any time during normal business hours
to inspect and make abstracts from and copies of such records and Chattel Paper
and Instruments.

    
      
         

      

      
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    (b)           Except
as otherwise provided in this Section 4.2(b),
each Grantor shall continue to collect, at its own expense, all amounts due or
to become due each Grantor under the Accounts, Chattel Paper, and
Instruments.  In connection with such collections, each Grantor may
take (and, at Administrative Agent's direction, shall take) such action as each
such Grantor or Administrative Agent may deem necessary or advisable to enforce
collection of the Accounts, Chattel Paper, and Instruments; provided, however, that
Administrative Agent shall have the right, if an Event of Default exists and is
continuing, without notice to any Grantor, to notify the Account Debtors or
obligors under any Accounts, Chattel Paper, and Instruments of the assignment of
such Accounts, Chattel Paper, and Instruments to Administrative Agent and to
direct such Account Debtors or obligors to make payment of all amounts due or to
become due to each Grantor thereunder directly to Administrative Agent and, at
the expense of each Grantor, to enforce collection of any such Accounts, Chattel
Paper, and Instruments, and to adjust, settle or compromise the amount or
payment thereof, in the same manner and to the same extent as each Grantor might
have done or as Administrative Agent deems appropriate.  Each Grantor
shall not adjust, settle, or compromise the amount or payment of any Account,
Chattel Paper, or Instrument, release wholly or partly any Account Debtor or
obligor thereof, or allow any credit or discount thereon, except in the ordinary
course of business.  If any Collateral shall be or be evidenced by a
promissory note or other Instrument or be Tangible Chattel Paper, and is, in
each case, in the original amount of $1,500,000 or greater, the applicable
Grantor shall deliver to Administrative Agent such note, Instrument or Tangible
Chattel Paper duly endorsed (whether by allonge or otherwise) and accompanied by
duly executed instruments of transfer or assignment, all in form and substance
satisfactory to Administrative Agent; provided, however, upon the
occurrence of a Trigger Period, Grantors shall deliver, promptly upon request by
the Administrative Agent therefor, to Administrative Agent all Collateral
evidenced by a promissory note, Instrument or Chattel Paper, duly endorsed and
accompanied by duly executed instruments of transfer or assignment, all in form
and substance satisfactory to Administrative Agent.

     

    (c)           If
any Grantor is or becomes the beneficiary of a Letter of Credit with a face
amount of $1,500,000 or greater, then within five Business Days after any
Responsible Senior Officer obtains knowledge thereof, such Grantor will notify
Administrative Agent of such Letter of Credit and such Grantor shall, promptly
upon request by Administrative Agent therefor, use commercially reasonable
efforts to cause the issuer and/or confirming bank to (i) consent to the
assignment of any Letter-of-Credit Rights with respect thereto to Administrative
Agent and (ii) agree to direct all payments thereunder to a Dominion Account,
all in form and substance reasonably satisfactory to Administrative Agent; provided, however, upon the
occurrence of a Trigger Period, Grantors shall, promptly upon request by
Administrative Agent therefor, use commercially reasonable efforts to cause each
issuer and/or confirming bank for each Letter of Credit (regardless of the face
amount thereof) to consent and agree to the foregoing actions.

    
      
         

      

      
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    (d)           If
an Account includes a charge for any Taxes then, during the continuation of any
Trigger Period, Administrative Agent is authorized, in its discretion, to pay
the amount thereof to the proper taxing authority for the account of the
applicable Grantor and to charge the Grantors therefor; provided, however, that
neither Administrative Agent nor any other Secured Party shall be liable for any
Taxes that may be due from the Grantors or with respect to any
Collateral.

     

    (e)           Whether
or not a Default or Event of Default exists, Administrative Agent shall have the
right at any time, in the name of Administrative Agent, any designee of
Administrative Agent or any Grantor, to verify the validity, amount or any other
matter relating to any Accounts by mail, telephone or otherwise.  Each
Grantor shall cooperate fully with Administrative Agent in an effort to
facilitate and promptly conclude any such verification
process.  Administrative Agent shall use commercially reasonable
efforts to conduct any such verification process in a manner that does not
adversely impact Grantors’ relationships with their customers.

     

    4.3.         Patents, Trademarks, and
Copyrights.

     

    (a)           [Reserved].

     

    (b)           No
Grantor (either itself or through licensees or sublicensees) will do any act, or
omit to do any act, whereby any material Patent may become invalidated or
dedicated to the public, and shall continue to mark any products covered by a
material Patent with the relevant patent number as necessary and sufficient to
establish and preserve its maximum rights under Applicable Laws.

     

    (c)           Each
Grantor (either itself or through licensees or sublicensees) will, for each
material registered Trademark, (i) maintain such Trademark in full force
free from any claim of abandonment or invalidity for non-use; (ii) maintain
the quality of products and services offered under such Trademark,
(iii) display such Trademark with notice of United States federal or
foreign registration to the extent necessary and sufficient to establish and
preserve its maximum rights under Applicable Law, and (iv) not use or
permit the use of such Trademark in violation of any third party
rights.

     

    (d)           Each
Grantor (either itself or through licensees or sublicensees) will, for each work
covered by a material Copyright, continue to publish, reproduce, display, adopt,
and distribute the work with appropriate copyright notice as necessary and
sufficient to establish and preserve its maximum rights under Applicable
Laws.

     

    (e)           Each
Grantor shall notify Administrative Agent immediately if any Responsible Senior
Officer obtains knowledge that any material Patent, Trademark, or Copyright may
become abandoned, lost, or dedicated to the public, or of any adverse
determination or development (including the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, United States Copyright Office, or any Governmental Authority
in any jurisdiction) regarding Grantor's ownership of any material Patent,
Trademark, or Copyright, its right to register the same, or to keep and maintain
the same.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    (f)           In
no event shall any Grantor, either itself or through any agent, employee,
licensee, or designee, file an application for any material Patent, Trademark,
or Copyright (or for the registration of any Trademark or Copyright) with the
United States Patent and Trademark Office, United States Copyright Office, or
any Governmental Authority in any jurisdiction, unless it informs Administrative
Agent within 15 Business Days of such filing, and, upon request of
Administrative Agent, executes and delivers any and all agreements, instruments,
documents, and papers as Administrative Agent may request to evidence
Administrative Agent's and Secured Parties' security interest in such Patent,
Trademark, or Copyright, and each Grantor hereby appoints Administrative Agent
as its attorney-in-fact to execute and file such writings for the foregoing
purposes.

     

    (g)           Each
Grantor will take all necessary steps that are consistent with the practice in
any proceeding before the United States Patent and Trademark Office, United
States Copyright Office, or any Governmental Authority in any other jurisdiction
as may be required by Administrative Agent, to maintain and pursue each
application relating to the material Patents, Trademarks, and/or Copyrights (and
to obtain the relevant grant or registration), and to maintain each such issued
Patent and each registration of such Trademarks and Copyrights, including timely
filings of applications for renewal, affidavits of use, affidavits of
incontestability and payment of maintenance fees, and, if consistent with good
business judgment, to initiate opposition, interference, and cancellation
proceedings against third parties.

     

    (h)           If
any Grantor has reason to believe that any Collateral consisting of a material
Patent, Trademark, or Copyright has been or is about to be infringed,
misappropriated, or diluted by a third party, each such Grantor promptly shall
notify Administrative Agent and shall, if consistent with good business
judgment, unless such Grantor shall reasonably determine that such Patent,
Trademark or Copyright is in no way material to the conduct of its business or
operations, promptly sue for infringement, misappropriation, or dilution and to
recover any and all damages for such infringement, misappropriation, or
dilution, and take such other actions as are appropriate under the circumstances
to protect such Collateral.

     

    (i)           If
an Event of Default exists, each Grantor shall use commercially reasonable
efforts to obtain all requisite consents or approvals by the licensor of each
Copyright License, Patent License, or Trademark License to effect the collateral
assignment of all of each Grantor's right, title, and interest thereunder to
Administrative Agent or its designee.

     

    (j)           In
no event shall any Grantor acquire or purchase any patent, registered trademark,
or registered copyright which any Grantor, in its reasonable discretion,
determines is material to the business operations of such Grantor unless it
informs Administrative Agent within 15 Business Days of such purchase or
acquisition, and, upon request of Administrative Agent, executes and delivers
any and all agreements, instruments, documents, and papers as Administrative
Agent may reasonably request to evidence Administrative Agent's and Secured
Parties’ security interest in such purchased or acquired patent, registered
trademark, or registered copyright.  Each Grantor hereby appoints
Administrative Agent as its attorney-in-fact to execute and file any evidence of
Administrative Agent’s security interest and Lien in any such patent, registered
trademark, or registered copyright (or for the application for any patent or
registration of any copyright) with the United States Patent and Trademark
Office, United States Copyright Office, or any Governmental Authority in any
other jurisdiction as may be reasonably required by Administrative Agent, in
connection with such purchase or acquisition of any such patent, registered
trademark, or registered copyright.

     

    
      
         

      

      
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    (k)           The
parties acknowledge and agree that the Intellectual Property is the sole and
exclusive property of each applicable Grantor, subject to the terms and
conditions stated in this Agreement.  Other than in connection with
any security interest in the Intellectual Property that any Grantor has granted
to Administrative Agent, or any rights and remedies of Secured Parties under
Applicable Law, neither Administrative Agent nor any other Secured Party shall
challenge any Grantor’s ownership of the Intellectual Property.  Each
Grantor expressly retains all rights, prior to the occurrence of an Event of
Default, to license third parties to use the Intellectual Property for any
purpose whatsoever not in violation of the Loan Documents and which are not
exclusive as to prevent Administrative Agent from using any of the Intellectual
Property in connection with the Grantors’ operations.

     

    (l)           The
license granted to Administrative Agent hereunder shall include the right of
Administrative Agent to grant sublicenses to others to use the Intellectual
Property if an Event of Default exists, and to enable such sublicensees to
exercise any rights and remedies of Secured Parties with respect to the
Collateral, as Administrative Agent reasonably deems necessary or appropriate in
the exercise of the rights and remedies of Secured Parties.  In any
country where sublicenses are incapable of registration or where registration of
a sublicense will not satisfactorily protect the rights of Grantor and
Administrative Agent, Administrative Agent shall also have the right to
designate other parties as direct licensees of Grantor to use the Intellectual
Property if an Event of Default exists and to enable such direct licensees to
exercise any rights and remedies of Secured Parties as such licensees reasonably
deem necessary or appropriate and Grantor agrees to enter into direct written
licenses with the parties as designated on the same terms as would be applicable
to a sublicense, and any such direct license may, depending on the relevant
local requirements, be either (a) in lieu of a sublicense or
(b) supplemental to a sublicense.  In either case, the parties
hereto shall cooperate to determine what shall be necessary or appropriate in
the circumstances.  For each sublicense to a sublicensee and direct
license to a licensee, Grantor appoints Administrative Agent its agent for the
purpose of exercising quality control over the sublicensee.  Grantor
shall execute this Agreement in any form, content and language suitable for
recordation, notice and/or registration in all available and appropriate
agencies of foreign countries as Administrative Agent may require.

     

    (m)           In
connection with the assignment or other transfer (in whole or in part) of its
obligations to any other Person, Administrative Agent may assign the license
granted herein without Grantor’s consent and upon such assignment or transfer
such other Person shall thereupon become vested with all rights and benefits in
respect thereof granted to Administrative Agent under this Agreement (to the
extent of such assignment or transfer).

    
      
         

      

      
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    (n)           The
parties hereto shall take reasonable action to preserve the confidentiality of
the Intellectual Property; provided, that
Administrative Agent shall not have any liability to any Person for any
disclosure of the Intellectual Property upon and after any realization upon
Collateral.

     

    (o)           Notwithstanding
any other provisions of this Agreement, nothing herein obligates any Grantor to
pursue registration or other protection of, and any Grantor may abandon,
relinquish, withdraw or release, any Intellectual Property determined by such
Grantor as not in any way material to the conduct of its business or
operations.

     

    4.4.         Rights to Dividends and
Distributions.  With respect to
any certificates, bonds, or other Instruments or Securities constituting a part
of the Collateral, Administrative Agent shall have authority if an Event of
Default exists and is continuing, either to have the same registered in
Administrative Agent's name or in the name of a nominee, and, with or without
such registration, to demand of the issuer thereof, and to receive and receipt
for, any and all dividends (including any stock or similar dividend or
distribution) payable in respect thereof, whether they be ordinary or
extraordinary.  Administrative Agent shall send to the respective
Grantor notice of Administrative Agent’s election to take any action described
in the preceding sentence; provided any failure of any Grantor to receive any
such notice shall not invalidate any action taken by Administrative Agent or
impair any of its rights.  If any Grantor shall become entitled to
receive or shall receive any interest in or certificate (including, without
limitation, any interest in or certificate representing a dividend or a
distribution in connection with any reclassification, increase, or reduction of
capital, or issued in connection with any reorganization), or any option or
rights arising from or relating to any of the Collateral, whether as an addition
to, in substitution of, as a conversion of, or in exchange for any of the
Collateral, or otherwise, each Grantor agrees to accept the same as
Administrative Agent's agent and to hold the same in trust on behalf of and for
the benefit of Administrative Agent, and to deliver the same immediately to
Administrative Agent in the exact form received, with appropriate undated stock
or similar powers, duly executed in blank, to be held by Administrative Agent,
subject to the terms hereof, as Collateral.  Unless an Event of
Default exists, each Grantor shall be entitled to receive all cash dividends and
distributions paid in respect of any of the Collateral (subject to the
restrictions of any other Loan Document).  Administrative Agent shall
be entitled to all dividends and distributions, and to any sums paid upon or in
respect of any Collateral, upon the liquidation, dissolution, or reorganization
of the issuer thereof (except those constituting Dispositions permitted under
the Credit Agreement) which shall be paid to Administrative Agent to be held by
it as additional collateral security for and application to the Secured
Obligations at the discretion of Administrative Agent.  All dividends
paid or distributed in respect of the Collateral which are received by any
Grantor in violation of this Agreement shall, until paid or delivered to
Administrative Agent, be held by each Grantor in trust as additional Collateral
for the Secured Obligations.

     

    4.5.         Right of Administrative
Agent to Notify Issuers.  If an Event of
Default exists and is continuing and at such other times as Administrative Agent
is entitled to receive dividends and other property in respect of or consisting
of any Collateral which is or represents an equity or ownership interest in any
Person ("Securities
Collateral"), Administrative Agent may notify issuers of the Securities
Collateral to make payments of all dividends and distributions directly to
Administrative Agent and Administrative Agent may take control of all Proceeds
of any Securities Collateral.  Until Administrative Agent elects to
exercise such rights, if an Event of Default exists, each Grantor, as agent of
Administrative Agent, shall collect and segregate all dividends and other
amounts paid or distributed with respect to the Securities
Collateral.

    
      
         

      

      
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    4.6.         Insurance.  All policies of
insurance required to be maintained pursuant to Section 6.07 of
the Credit Agreement insuring the Equipment and Inventory shall be written for
the benefit of Administrative Agent for itself and the other Secured Parties and
each Grantor, as their interests may appear, and shall provide for at least
thirty days' prior written notice of cancellation to Administrative
Agent.  Upon reasonable request by Administrative Agent, each Grantor
shall promptly furnish to Administrative Agent evidence of such insurance in
form and content satisfactory to Administrative Agent.  If any Grantor
fails to perform or observe any applicable covenants as to insurance,
Administrative Agent may at its option obtain insurance on only Secured Parties'
interest in the Equipment and Inventory, any premium thereby paid by
Administrative Agent to become part of the Secured Obligations, bear interest
prior to the existence of an Event of Default, at the then applicable Base Rate,
and during the existence of an Event of Default, at the lesser of (i) the
Highest Lawful Rate and (ii) the Default Rate.  If Administrative
Agent maintains such substitute insurance, the premium for such insurance shall
be due on demand and payable by the applicable Grantor to Administrative
Agent.  Each Grantor grants and appoints Administrative Agent its
attorney-in-fact to, if an Event of Default exists, endorse any check or draft
that may be payable to each such Grantor in order to collect any payments in
respect of insurance, including any refunds of unearned premiums in connection
with any cancellation, adjustment, or termination of any policy of
insurance.  Any such sums collected by Administrative Agent shall be
credited, except to the extent applied to the purchase by Administrative Agent
of similar insurance, to any amounts then owing on the Secured Obligations in
accordance with the Credit Agreement.

     

    4.7.         Transfers and Other
Liens.  No Grantor shall
(a) Dispose of any of the Collateral, except as permitted under the Credit
Agreement and the other Loan Documents, or (b) create or permit to exist
any Lien upon or with respect to any of the Collateral, except for Permitted
Liens.

     

    4.8.         Administrative Agent
Appointed Attorney-in-Fact.  Each Grantor
hereby irrevocably appoints Administrative Agent Grantor's attorney-in-fact,
with full authority in the place and stead of each Grantor and in the name of
each Grantor or otherwise to take any action and to execute any instrument which
Administrative Agent may deem reasonably necessary or advisable to accomplish
the purposes of this Agreement, including, without limitation (provided that,
except as otherwise authorized in any lockbox servicing or deposit account
agreement with respect to clause (c) below, the actions listed in clauses
(b), (c) and (d) below may only be taken or exercised if an Event of Default
exists):

     

    (a)           to
obtain and adjust insurance as and when authorized pursuant to Section 4.6;

     

    (b)           to
ask, demand, collect, sue for, recover, compromise, receive, and give
acquittance and receipts for moneys due and to become due under or in connection
with the Collateral;

    
      
         

      

      
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    (c)           to
receive, indorse, and collect any drafts or other Instruments, Documents, and
Chattel Paper, in connection therewith; and

     

    (d)           to
file any claims or take any action or institute any proceedings which
Administrative Agent may deem necessary or desirable for the collection of any
of the Collateral or otherwise to enforce compliance with the terms and
conditions of any Collateral or the rights of Administrative Agent with respect
to any of the Collateral.  EACH GRANTOR HEREBY IRREVOCABLY
GRANTS TO ADMINISTRATIVE AGENT EACH SUCH GRANTOR'S PROXY (EXERCISABLE ONLY IF AN
EVENT OF DEFAULT EXISTS) TO VOTE ANY SECURITIES COLLATERAL AND APPOINTS
ADMINISTRATIVE AGENT EACH SUCH GRANTOR'S ATTORNEY-IN-FACT TO PERFORM ALL
OBLIGATIONS OF GRANTOR UNDER THIS AGREEMENT AND TO EXERCISE ALL OF
ADMINISTRATIVE AGENT'S AND EACH OTHER SECURED PARTY'S RIGHTS
HEREUNDER.  THE PROXY AND EACH POWER OF ATTORNEY HEREIN GRANTED, AND
EACH STOCK POWER AND SIMILAR POWER NOW OR HEREAFTER GRANTED (INCLUDING ANY
EVIDENCED BY A SEPARATE WRITING), ARE COUPLED WITH AN INTEREST AND ARE
IRREVOCABLE PRIOR TO FINAL PAYMENT IN FULL OF THE SECURED
OBLIGATIONS.

     

    4.9.         Dilution of
Ownership.  As to any Pledged Equity Interests, unless
otherwise permitted by the Credit Agreement, no Grantor will consent to or
approve of the issuance of (a) any additional shares of any class of Equity
Interests of such issuer (unless issued to one or more Grantors and immediately
upon such issuance the additional Equity Interests are pledged and delivered to
Administrative Agent pursuant to the terms hereof to the extent necessary to
give Administrative Agent a security interest after such issuance in at least
the same percentage of such issuer's outstanding securities or other equity
interest as Administrative Agent had before such issuance), (b) any
instrument convertible voluntarily by the holder thereof or automatically upon
the occurrence or non-occurrence of any event or condition into, or exchangeable
for, any such securities or other equity interests (unless issued to one or more
Grantors and immediately upon such issuance such instrument is pledged and
delivered to Administrative Agent pursuant to the terms hereof), or (c) any
warrants, options, contracts or other commitments entitling any third party to
purchase or otherwise acquire any such securities or other equity
interests.  The foregoing shall not apply to any equity interests in
Borrower.

     

    4.10.       Restrictions on
Securities.  No Grantor will enter into any agreement creating,
or otherwise permit to exist, any restriction or condition upon the transfer,
voting or control of any Pledged Equity Interests, except as (a) consented to in
writing by Administrative Agent, (b) required by provisions of applicable
Securities Laws or state securities Laws (which provisions are subject to Laws
that expressly prohibit waiver of such provision), or (c) otherwise permitted by
the Credit Agreement.  No issuer of any Pledged Equity Interests,
which is either a partnership or limited liability company, shall amend or
restate its partnership agreement or certificate of organization or operating
agreement, respectively, or other governance document, to provide that any
Equity Interest of such issuer is a security governed by Chapter 8 of the UCC or
permit any Equity Interest of such issuer to be evidenced by a certificate or
other instrument (unless immediately upon issuance such certificate or
instrument is pledged and delivered to Administrative Agent pursuant to the
terms hereof).

    
      
         

      

      
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    4.11.       Administration of
Inventory.

     

    (a)           Grantors
shall keep accurate and complete records of all Inventory, including costs and
daily withdrawals and additions, and shall submit to Administrative Agent
inventory and reconciliation reports in form satisfactory to Administrative
Agent, on such periodic basis as Administrative Agent may reasonably
request.  Each Grantor shall conduct a physical inventory at least
once per calendar year (and on a more frequent basis if requested by
Administrative Agent when an Event of Default exists) and periodic cycle counts
consistent with historical practices, and shall provide to Administrative Agent
a report based on each such inventory and count promptly upon completion
thereof, together with such supporting information as Administrative Agent may
request (including any Quarry Tech or other reports measuring piles of
Inventory).  Administrative Agent may participate in and observe each
physical count.

     

    (b)           No
Grantor shall return any Inventory to a supplier, vendor or other Person,
whether for cash, credit or otherwise, unless (i) such return is in the ordinary
course of business, (ii) no Event of Default exists or would result therefrom,
(iii) Administrative Agent is promptly notified if the aggregate Value of all
Inventory (other than replacement parts and manufacturing supplies) returned in
any month exceeds $1,000,000, and (iv) any payment received by a Grantor for a
return is promptly remitted to a lockbox for deposit into a Dominion
Account.

     

    (c)           No
Grantor shall acquire or accept any Inventory on consignment or approval, and
shall take all steps to assure that all Inventory is produced in accordance with
Applicable Law.  No Grantor shall sell any Inventory on consignment or
approval or any other basis under which, in each case, the customer may return
or require a Grantor to repurchase such Inventory, provided, that the Grantors
may store or consign immaterial amounts of Inventory that do not constitute
Eligible Inventory with customers who agree to pay for such Inventory as and
when they withdraw it from storage or consignment.  Each Grantor shall
use, store and maintain all Inventory with reasonable care and caution, in
accordance with applicable standards of any insurance and in material conformity
with all Applicable Law, and shall make current rent and royalty payments
(within applicable grace periods provided for in leases) at all locations where
any Collateral is located or mined.

     

    4.12.       Administration of Rolling
Stock

     

    (a)           Each
Grantor shall keep accurate and complete records of its Rolling Stock, including
kind, quantity, cost, acquisitions and dispositions thereof, and shall submit to
Administrative Agent, on such periodic basis as Administrative Agent may
reasonably request, a current schedule thereof, in form reasonably satisfactory
to Administrative Agent.  Promptly upon request, each Grantor shall
deliver to Administrative Agent evidence of its ownership or interests in any
Eligible Rolling Stock.

     

    (b)           Each
Grantor shall maintain its Eligible Rolling Stock in good operating condition
and repair, reasonable wear and tear excepted.

    
      
         

      

      
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    4.13.       Locations of
Collateral.

     

    (a)           All
tangible items of Collateral, other than Inventory and Rolling Stock in transit,
shall at all times be kept by the Grantors at the business locations set forth
in Schedule 2,
except that the Grantors may (i) make sales or other dispositions of Collateral
in accordance with the Credit Agreement, and (ii) move Collateral to other
locations in the United States (not set forth in Schedule 2), upon 30
days prior written notice to Administrative Agent.

     

    (b)           Upon
request, provide Administrative Agent with copies of all existing agreements and
future agreements between any Grantor and any landlord, warehouseman, processor,
shipper, bailee or other Person that owns any premises at which any material
amount of Collateral may be kept or that otherwise may possess or handle any
material amount of Collateral.

     

    ARTICLE
V

     

    RIGHTS
AND POWERS OF SECURED PARTIES.

     

    5.1.         Administrative Agent May
Perform.  If any Grantor fails to perform any agreement
contained herein, Administrative Agent may itself perform, or cause performance
of, such agreement, and the expenses of Administrative Agent incurred in
connection therewith shall be payable by each such Grantor under Section 5.5.

     

    5.2.         Administrative Agent's
Duties.  The powers
conferred on Administrative Agent hereunder are solely to protect Secured
Parties' interest in the Collateral and shall not impose any duty upon it to
exercise any such powers.  Except for the safe custody of any
Collateral in its possession and the accounting for moneys actually received by
Secured Parties hereunder, neither Administrative Agent nor any other Secured
Party shall have any duty as to any Collateral, as to ascertaining or taking
action with respect to calls, conversions, exchanges, maturities, tenders, or
other matters relative to any Collateral, whether or not Administrative Agent or
any other Secured Party has or is deemed to have knowledge of such matters, or
as to the taking of any necessary steps to preserve rights against prior parties
or any other rights pertaining to any reasonable care in the custody and
preservation of any Collateral in its possession if such Collateral is accorded
treatment substantially equal to that which Administrative Agent accords its own
property.  Except as provided in this Section 5.2,
neither Administrative Agent nor any other Secured Party shall have any duty or
liability to protect or preserve any Collateral or to preserve rights pertaining
thereto.  Nothing contained in this Agreement shall be construed as
requiring or obligating Administrative Agent or any other Secured Party, and
neither Administrative Agent nor any other Secured Party shall be required or
obligated, to (a) present or file any claim or notice or take any action,
with respect to any Collateral or in connection therewith or (b) notify any
Grantor of any decline in the value of any Collateral.

    
      
         

      

      
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    5.3.         Remedies.  If
an Event of Default exists:

     

    (a)           Administrative
Agent may exercise in respect of the Collateral, in addition to other rights and
remedies provided for herein or otherwise available to it or any other Secured
Party pursuant to any Applicable Law, all the rights and remedies of a secured
party on default under the UCC (whether or not the UCC applies to the affected
Collateral), and also may require each Grantor to, and each Grantor will at its
expense and upon request of Administrative Agent forthwith, assemble all or part
of the Collateral as directed by Administrative Agent and make it available to
Administrative Agent at a place to be designated by Administrative Agent which
is reasonably convenient to both parties at public or private sale, at any of
Administrative Agent's offices or elsewhere, for cash, on credit or for future
delivery, and upon such other terms as Administrative Agent may deem
commercially reasonable.  Each Grantor agrees that, to the extent
notice of sale shall be required by Law, ten days' notice to each Grantor of the
time and place of any public sale or the time after which any private sale is to
be made shall constitute reasonable notification.  Administrative
Agent shall not be obligated to make any sale of Collateral regardless of notice
of sale having been given.  Administrative Agent may adjourn any
public or private sale from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at the time
and place to which it was so adjourned.

     

    (b)           All
cash proceeds received by Administrative Agent upon any sale of, collection of,
or other realization upon, all or any part of the Collateral shall be applied as
set forth in Section 8.03 of
the Credit Agreement.

     

    (c)           All
payments received by each Grantor under or in connection with any Collateral
shall be received in trust for the benefit of Administrative Agent, shall be
segregated from other funds of each such Grantor, and shall be forthwith paid
over to Administrative Agent in the same form as so received (with any necessary
indorsement).

     

    (d)           Because
of the Securities Act of 1933, as amended ("Securities Act"), and
other Laws, including without limitation state "blue sky" Laws, or contractual
restrictions or agreements, there may be legal restrictions or limitations
affecting Administrative Agent in any attempts to dispose of the Collateral and
the enforcement of rights under this Agreement.  For these reasons,
Administrative Agent is authorized by each Grantor, but not obligated, if any
Event of Default exists, to sell or otherwise dispose of any of the Collateral
at private sale, subject to an investment letter, or in any other manner which
will not require the Collateral, or any part thereof, to be registered in
accordance with the Securities Act, or any other Law.  Administrative
Agent is also hereby authorized by each Grantor, but not obligated, to take such
actions, give such notices, obtain such consents, and do such other things as
Administrative Agent may deem required or appropriate under the Securities Act
or other securities Laws or other Laws or contractual restrictions or agreements
in the event of a sale or disposition of any Collateral.  Each Grantor
understands that Administrative Agent may in its discretion approach a
restricted number of potential purchasers and that a sale under such
circumstances may yield a lower price for the Collateral than would otherwise be
obtainable if same were registered and/or sold in the open market.  No
sale so made in good faith by Administrative Agent shall be deemed to be not
"commercially reasonable" because so made.  Each Grantor agrees that
if an Event of Default exists, and Administrative Agent sells the Collateral or
any portion thereof at any private sale or sales, Administrative Agent shall
have the right to rely upon the advice and opinion of appraisers and other
Persons, which appraisers and other Persons are acceptable to Administrative
Agent, as to the best price reasonably obtainable upon such a private sale
thereof.  In the absence of bad faith or gross negligence, such
reliance shall be prima
facie evidence that Administrative Agent and the other Secured Parties
handled such matter in a commercially reasonable manner under Applicable
Law.

     

    
      
         

      

      
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    (e)           After
notice to Grantor, Administrative Agent and such Persons as Administrative Agent
may reasonably designate shall have the right, at Grantor's own cost and
expense, to verify under reasonable procedures, the validity, amount, quality,
quantity, value, condition, and status of, or any other matter relating to, the
Collateral (excluding, for the purposes of this clause, Accounts as to which
Administrative Agent’s rights are set forth in Section 4.2), including, in
the case of any such Collateral in the possession of any third person, by
contacting the third person possessing such Collateral for the purpose of making
such a verification.  Administrative Agent shall have the absolute
right to share any information it gains from such inspection or verification
with any Secured Party.

     

    (f)           For
purposes of enabling Administrative Agent to exercise rights and remedies under
this Agreement, each Grantor grants (to the extent not otherwise prohibited by a
license with respect thereto) to Administrative Agent an irrevocable,
nonexclusive license (exercisable without payment of royalty or other
compensation to any Grantor or any other Person, provided, that if the
license granted to Administrative Agent is a sublicense, each Grantor shall be
solely responsible for, and indemnify Administrative Agent against, any royalty
or other compensation payable to Grantor's licensor or other Person) to use, if
an Event of Default exists, all of Grantor's Software, and including in such
license reasonable access to all media in which any of the licensed items may be
recorded and all related manuals.

     

    (g)           For
the purpose of enabling Administrative Agent to exercise rights and remedies
under this Agreement, each Grantor grants (to the extent not otherwise
prohibited by a license with respect thereto) to Administrative Agent an
irrevocable, nonexclusive license (exercisable without payment of royalty or
other compensation to any Grantor or any other Person) to use, license, or
sub-license, if an Event of Default exists, any of the Collateral consisting of
Intellectual Property and wherever the same may be located, and including in
such license reasonable access to all media in which any of the licensed items
may be recorded or stored and to all Software used for the use, compilation, or
printout thereof.  In connection therewith, each Grantor shall execute
and deliver a license agreement to Administrative Agent to evidence the grant of
such license.  The use of such license by Administrative Agent shall
be exercised, at the option of Administrative Agent, if an Event of Default
exists; provided that any
license, sub-license, or other transaction entered into by Administrative Agent
in accordance herewith shall be binding upon each Grantor notwithstanding any
subsequent cure of an Event of Default; provided further,
Administrative Agent shall use reasonable efforts to limit the duration of each
such license or sub-license to the time period ending upon the cure of such
Event of Default in accordance with the Loan Documents.

    
      
         

      

      
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    5.4.         Appointment of Receiver or
Trustee.  In connection with the exercise of Secured Parties'
rights under this Agreement or any other Loan Document, Administrative Agent
may, if an Event of Default exists resulting in the acceleration of any of the
Secured Obligations or following any Loan Party's failure to pay any of the
Secured Obligations at maturity, obtain the appointment of a receiver or trustee
to assume, upon receipt of all necessary judicial or other Governmental
Authority consents or approvals, control of or ownership of any
Permits.  Such receiver or trustee shall have all rights and powers
provided to it by Law or by court order or provided to Administrative Agent
under this Agreement or any other Loan Document.  Upon the appointment
of such trustee or receiver, each Grantor shall cooperate, to the extent
necessary or appropriate, in the expeditious preparation, execution, and filing
of an application to any Governmental Authority or for consent to the transfer
of control or assignment of each Grantor's Permits to the receiver or
trustee.

     

    5.5.         INDEMNITY AND
EXPENSES

     

    (a)           EACH
GRANTOR SHALL INDEMNIFY (WHICH SHALL BE PAYABLE FROM TIME TO TIME ON DEMAND)
SECURED PARTIES FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, AND LIABILITIES
(INCLUDING REASONABLE ATTORNEYS' FEES) GROWING OUT OF OR RESULTING FROM THIS
AGREEMENT (INCLUDING ENFORCEMENT OF THIS AGREEMENT), EXPRESSLY INCLUDING SUCH CLAIMS, LOSSES, OR
LIABILITIES ARISING OUT OF MERE NEGLIGENCE OF ANY SECURED PARTY, EXCEPT CLAIMS,
LOSSES, OR LIABILITIES RESULTING FROM ANY SECURED PARTY'S (i) GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OR (ii) BREACH IN BAD FAITH OF ITS
OBLIGATIONS UNDER ANY LOAN DOCUMENT.

     

    (b)           EACH
GRANTOR WILL UPON DEMAND PAY TO ADMINISTRATIVE AGENT (AND EACH SUB-AGENT
THEREOF) AND THEIR RESPECTIVE RELATED PARTIES THE AMOUNT OF ANY AND ALL
REASONABLE EXPENSES, INCLUDING THE REASONABLE FEES AND EXPENSES OF ITS COUNSEL
AND OF ANY EXPERTS AND AGENTS, WHICH ADMINISTRATIVE AGENT (AND EACH SUB-AGENT
THEREOF) AND THEIR RESPECTIVE RELATED PARTIES MAY INCUR IN CONNECTION WITH THE
ADMINISTRATION OF THIS AGREEMENT.

     

    (c)           EACH
GRANTOR WILL UPON DEMAND PAY TO ADMINISTRATIVE AGENT (AND EACH SUB-AGENT
THEREOF), EACH OTHER SECURED PARTY AND THEIR RESPECTIVE RELATED PARTIES THE
AMOUNT OF ANY AND ALL EXPENSES, INCLUDING THE FEES AND EXPENSES OF ITS COUNSEL
AND OF ANY EXPERTS AND AGENTS, WHICH ADMINISTRATIVE AGENT (AND EACH SUB-AGENT
THEREOF), SUCH OTHER SECURED PARTY AND THEIR RESPECTIVE RELATED PARTIES MAY
INCUR IN CONNECTION WITH (I) THE CUSTODY, PRESERVATION, USE OR OPERATION
OF, OR THE SALE OF, COLLECTION FROM, OR OTHER REALIZATION UPON, ANY OF THE
COLLATERAL, (II) THE EXERCISE OR ENFORCEMENT OF ANY OF THE RIGHTS OF ANY
SECURED PARTY HEREUNDER, OR (III) THE FAILURE BY GRANTOR TO PERFORM OR
OBSERVE ANY OF THE PROVISIONS HEREOF.

    
      
         

      

      
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    ARTICLE
VI

     

    MISCELLANEOUS

     

    6.1.         Maximum
Liability.
Anything in this Agreement to the contrary notwithstanding, the
obligations of each Grantor (other than Borrower) hereunder shall be limited to
a maximum aggregate amount equal to the largest amount that would not render its
obligations hereunder subject to avoidance as a fraudulent transfer or
conveyance under Section 548 of Title 11 of the United States Code or
any applicable provisions of comparable Law (collectively, the "Fraudulent Transfer
Laws"), in each case after giving effect to all other liabilities of each
Grantor, contingent or otherwise, that are relevant under the Fraudulent
Transfer Laws (specifically excluding, however, any liabilities of each Grantor
in respect of intercompany indebtedness to other Loan Parties or Affiliates of
other Loan Parties to the extent that such indebtedness would be discharged in
an amount equal to the amount paid or property conveyed by each Grantor under
the Loan Documents) and after giving effect as assets, subject to Section 6.2, to
the value (as determined under the applicable provisions of the Fraudulent
Transfer Laws) of any rights to subrogation or contribution of each Grantor
pursuant to (a) Applicable Law or (b) any agreement providing for an
equitable allocation among each Grantor and other Loan Parties of obligations
arising under the Loan Documents.

     

    6.2.         Waiver of
Subrogation.  No Grantor shall
assert, enforce, or otherwise exercise (a) any right of subrogation to any
of the rights or Liens of any Secured Party or any other beneficiary against any
other Loan Party or any Collateral or other security, or (b) any right of
recourse, reimbursement, contribution, indemnification, or similar right against
any other Loan Party on all or any part of the Obligations or any other Loan
Party, and each Grantor hereby waives any and all of the foregoing rights and
the benefit of, and any right to participate in, and Collateral or other
security given to or for the benefit of any Secured Party or any other
beneficiary to secure payment of the Obligations.  This Section 6.2
shall survive the termination of this Agreement, and any satisfaction and
discharge of each Grantor by virtue of any payment, court order, or
Law.

     

    6.3.         Cumulative
Rights.  All rights of Administrative Agent and each other
Secured Party under the Loan Documents are cumulative of each other and of every
other right which Administrative Agent and each other Secured Party may
otherwise have at Law or in equity or under any other agreement.  The
exercise of one or more rights shall not prejudice or impair the concurrent or
subsequent exercise of other rights.

     

    6.4.         Amendments;
Waivers.  Any term, covenant, agreement, or condition of this
Agreement may be amended, and any right under this Agreement may be waived, if,
but only if, such amendment or waiver is in writing and is signed by
Administrative Agent and, in the case of an amendment, by each
Grantor.  Unless otherwise specified in such waiver, a waiver of any
right under this Agreement shall be effective only in the specific instance and
for the specific purpose for which given.  No election not to
exercise, failure to exercise or delay in exercising any right, nor any course
of dealing or performance, shall operate as a waiver of any right of any Secured
Party under this Agreement or Applicable Law, nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right of any Secured Party under this Agreement or
Applicable Law.

    
      
         

      

      
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    6.5.         Continuing Security
Interest.

     

    (a)           This
Agreement creates a continuing security interest in the Collateral and shall
(x) remain in full force and effect until the Release Date, (y) be
binding upon each Grantor, its successors and assigns, and (z) inure to the
benefit of, and be enforceable by, Administrative Agent and its successors,
transferees and assigns.  Upon the Release Date, this Agreement and
all obligations (other than those expressly stated to survive such termination)
of Administrative Agent and each Grantor hereunder shall terminate, all without
delivery of any instrument or performance of any act by any party, and all
rights to the Collateral shall revert to the granting parties and Administrative
Agent will, at Grantor's expense, execute and deliver to each Grantor or
authorize such Grantor to file such documents (including without limitation UCC
termination statements) as each such Grantor shall reasonably request to
evidence such termination and shall deliver to such Grantor any Collateral held
by or on behalf of Administrative Agent hereunder.  Each Grantor
agrees that to the extent that Administrative Agent or any other Secured Party
receives any payment or benefit and such payment or benefit, or any part
thereof, is subsequently invalidated, declared to be fraudulent or preferential,
set aside or is required to be repaid to a trustee, receiver, or any other
Person under any Debtor Relief Law, common law or equitable cause, then to the
extent of such payment or benefit, the Obligations or part thereof intended to
be satisfied shall be revived and continued in full force and effect as if such
payment or benefit had not been made and, further, any such repayment by
Administrative Agent or any other Secured Party, to the extent that
Administrative Agent or any other Secured Party did not directly receive a
corresponding cash payment, shall be added to and be additional Secured
Obligations payable upon demand by Administrative Agent or any other Secured
Party and secured hereby, and, if the Lien and security interest hereof shall
have been released, such Lien and security interest shall be reinstated with the
same effect and priority as on the date of execution hereof all as if no release
of such Lien or security interest had ever occurred.

     

    (b)           In
connection with any sale or other disposition of Collateral permitted by the
Credit Agreement, the Lien pursuant to this Agreement on such sold or disposed
of Collateral shall be automatically released.  In connection with the
sale or other disposition of Collateral permitted under the Credit Agreement,
Administrative Agent shall, upon receipt from the Borrower of a written request
for the release of such Collateral subject to such sale or other disposition,
identifying such Collateral, deliver to such Grantor, as the case may be, such
Collateral held by Administrative Agent hereunder and execute and deliver to the
relevant Grantor (at the sole cost and expense of such Grantor) or authorize
such Grantor to file all releases or other documents (including without
limitation UCC termination statements) necessary or reasonably desirable for the
release of Liens created hereby on such Collateral as such Grantor may
reasonably request.

    
      
         

      

      
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    6.6.         GOVERNING LAW; WAIVER OF
JURY TRIAL; CONSENT TO JURISDICTION AND SERVICE OF PROCESS.

     

    (a)           THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN
SUCH STATE AND
APPLICABLE FEDERAL LAW.

     

    (b)           EACH
GRANTOR, ADMINISTRATIVE AGENT AND EACH OTHER SECURED PARTY, BY ACCEPTANCE
HEREOF, IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO
THE NONEXCLUSIVE JURISDICTION OF THE 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 ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH GRANTOR, ADMINISTRATIVE
AGENT AND EACH OTHER SECURED PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT
ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH TEXAS STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH GRANTOR, ADMINISTRATIVE
AGENT AND EACH OTHER SECURED LENDER BY ACCEPTANCE HEREOF, 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 OR IN ANY OTHER LOAN
DOCUMENT SHALL AFFECT ANY RIGHT THAT ADMINISTRATIVE AGENT, ANY OTHER SECURED
PARTY OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY GRANTOR OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     

    (c)           EACH
GRANTOR, ADMINISTRATIVE AGENT AND EACH OTHER SECURED PARTY, BY ACCEPTANCE
HEREOF, IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (B) OF THIS SECTION.  EACH GRANTOR, ADMINISTRATIVE
AGENT AND EACH OTHER SECURED PARTY, BY ACCEPTANCE HEREOF, HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

     

    (d)           EACH
GRANTOR, ADMINISTRATIVE AGENT AND EACH OTHER SECURED PARTY, BY ACCEPTANCE
HEREOF, IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 10.02 OF
THE CREDIT AGREEMENT.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT
OF EACH GRANTOR, ADMINISTRATIVE AGENT AND EACH OTHER SECURED PARTY, TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     

    (e)           EACH
GRANTOR, ADMINISTRATIVE AGENT AND EACH OTHER SECURED PARTY, BY ACCEPTANCE
HEREOF,  HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT,
OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND
EACH GRANTOR, ADMINISTRATIVE AGENT AND EACH OTHER SECURED PARTY, BY ACCEPTANCE
HEREOF,  HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND
THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     

    6.7.         Administrative Agent's Right
to Use Agents.  Administrative
Agent may exercise its rights under this Agreement through an agent or other
designee.

     

    6.8.         No Interference,
Compensation or Expense.  Administrative Agent may exercise its
rights under this Agreement (a) without resistance or interference by any
Grantor and (b) without payment of any rent, license fee, or compensation
of any kind to any Grantor.

     

    6.9.         Waivers of Rights Inhibiting
Enforcement.  Each Grantor
waives (a) any claim that, as to any part of the Collateral, a private
sale, should Administrative Agent elect so to proceed, is, in and of itself, not
a commercially reasonable method of sale for such Collateral, (b) except as
otherwise provided in this Agreement, TO THE FULLEST EXTENT NOT PROHIBITED
BY APPLICABLE LAW, NOTICE OR JUDICIAL HEARING IN CONNECTION
WITH  ADMINISTRATIVE AGENT'S DISPOSITION OF ANY OF THE COLLATERAL
INCLUDING ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR
REMEDIES AND ANY SUCH RIGHT THAT EACH GRANTOR WOULD OTHERWISE HAVE UNDER THE
CONSTITUTION OR ANY STATUTE OF THE UNITED STATES OR OF ANY STATE, AND ALL OTHER
REQUIREMENTS AS TO THE TIME, PLACE AND TERMS OF SALE OR OTHER REQUIREMENTS WITH
RESPECT TO THE ENFORCEMENT OF SECURED LENDERS' RIGHTS HEREUNDER and (c)
all rights of redemption, appraisement or valuation.

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

     

    6.10.       Obligations Not
Affected.  To the fullest extent not prohibited by Applicable
Law, the obligations of each Grantor under this Agreement shall remain in full
force and effect without regard to, and shall not be impaired or affected
by:

     

    (a)           any
amendment, addition, or supplement to, or restatement of any Loan Document or
any instrument delivered in connection therewith or any assignment or transfer
thereof;

     

    (b)           any
exercise, non-exercise, or waiver by Administrative Agent or any other Secured
Party of any right, remedy, power, or privilege under or in respect of, or any
release of any guaranty, any collateral, or the Collateral or any part thereof
provided pursuant to, this Agreement or any Loan Document;

     

    (c)           any
waiver, consent, extension, indulgence, or other action or inaction in respect
of this Agreement or any Loan Document or any assignment or transfer of any
thereof;

     

    (d)           any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation, or the like of any Loan Party or any other Person, whether or not
each Grantor shall have notice or knowledge of any of the foregoing;
or

     

    (e)           any
other event which may give a Grantor or any other Loan Party a defense to, or a
discharge of, any of its obligations under any Loan Document.

     

    6.11.       Notices and
Deliveries.  All notices and other communications provided for
hereunder shall be effectuated in the manner provided for in Section 10.02 of
the Credit Agreement, provided that if a notice or communication hereunder is to
a Grantor other than the Borrower, said notice shall be addressed to such
Grantor, in care of the Borrower at the Borrower's then current address (or
facsimile number) for notice under the Credit Agreement.

     

    6.12.       Severability.  If
any provision of this Agreement is held to be illegal, invalid, or unenforceable
under present or future Laws during the term thereof, (a) such provision
shall be fully severable, this Agreement shall be construed and enforced as if
such illegal, invalid, or unenforceable provision had never comprised a part
hereof, and the remaining provisions hereof shall remain in full force and
effect and shall not be affected by the illegal, invalid, or unenforceable
provision or by its severance herefrom and (b) the parties shall endeavor
in good faith negotiations to replace the illegal, invalid, or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid, or unenforceable
provisions.

     

    6.13.       Successors and
Assigns.  All of the provisions of this Agreement shall be
binding and inure to the benefit of the parties hereto and their respective
successors and assigns (including, as to each Grantor, all Persons who may
become bound as a debtor or a new debtor to this Agreement); provided, each
Grantor may not assign any of its rights or obligations under this Agreement,
except as a result of the consummation of a transaction permitted under Section 7.04 of
the Credit Agreement.

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

     

    6.14.       Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original, with the same effect as if the signatures thereto were upon the
same instrument.

     

    6.15.       Waiver.  To the extent
not prohibited by Applicable Law, each Grantor, which is a partner in any
partnership in which any Pledged Partnership Interests are being pledged
hereunder, a member in any limited liability company in which any Pledged
Membership Interests are being pledged hereunder, or a trustee, settlor or
beneficiary of any trust in which Pledged Trust Interests are being pledged
hereunder, hereby agrees that any provision of any Organization Document, the
Delaware Limited Liability Company Act (as it may be amended or restated) or any
other governance document that in any manner restricts, prohibits or provides
conditions to (a) the grant of a Lien on any interest in such partnership,
limited liability company or trust, (b) any transfer of any interest in
such partnership, limited liability company or trust, (c) any change in
management or control of such partnership, limited liability company or trust,
or (d) any other exercise by Administrative Agent of any rights pursuant to
this Agreement, any other Loan Document or Law shall not apply to (i) the
grant of any Lien hereunder, (ii) the execution, delivery and performance
of this Agreement by any such Grantor, or (iii) the foreclosure or other
realization upon any interest in any Pledged Equity
Interest.  Furthermore, each such Grantor agrees that it will not
permit any amendment to or restatement of any Organization Document or any other
governance document in any manner to adversely affect Administrative Agent's
ability to foreclose on any Pledged Equity Interest or which conflicts with the
provisions of this Section 6.15
without the prior written consent of Administrative Agent.

     

    6.16.       ENTIRE
AGREEMENT.  THIS WRITTEN AGREEMENT, TOGETHER WITH THE OTHER
LOAN DOCUMENTS, REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS
AMONG THE PARTIES.

     

    6.17.       Existing Security
Agreement.  The Existing Security Agreement is hereby amended
and restated in its entirety by this Agreement, and all Liens in the Collateral
created by the Existing Security Agreement are automatically
continued.

     

    
      
        	
                THE
      REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
  BLANK.

              

      

    

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

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

     

    GRANTORS:

     

    
      
        	
                TEXAS
      INDUSTRIES, INC.

              
	 
      	 
      
	
                By:

              	
                /s/ Sharon Ellis

              
	
                Name:  

              	
                Sharon
      Ellis

              
	
                Title:

              	
                Treasurer

              
	 
      	 
      
	
                BROOKHOLLOW
      CORPORATION

              
	
                BROOK
      HOLLOW PROPERTIES, INC.

              
	
                BROOKHOLLOW
      OF ALEXANDRIA, INC.

              
	
                BROOKHOLLOW
      OF VIRGINIA, INC.

              
	
                SOUTHWESTERN
      FINANCIAL CORPORATION

              
	
                CREOLE
      CORPORATION

              
	
                PARTIN
      LIMESTONE PRODUCTS, INC.

              
	
                RIVERSIDE
      CEMENT HOLDINGS COMPANY

              
	
                TXI
      AVIATION, INC.

              
	
                TXI
      CEMENT COMPANY

              
	
                TXI
      RIVERSIDE INC.

              
	
                TXI
      TRANSPORTATION COMPANY

              
	
                TXI
      CALIFORNIA INC.

              
	
                PACIFIC
      CUSTOM MATERIALS, INC.

              
	
                TXI
      POWER COMPANY

              
	
                TEXAS
      INDUSTRIES HOLDINGS, LLC

              
	
                TEXAS
      INDUSTRIES TRUST

              
	
                TXI
      LLC

              
	
                TXI
      OPERATING TRUST

              
	 
      
	
                By:

              	
                /s/ Sharon Ellis

              
	
                Name:

              	
                Sharon
      Ellis

              
	
                Title:

              	
                Treasurer

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  RIVERSIDE
      CEMENT COMPANY

                
	 
      
	
                  By:

                	
                  /s/ Sharon Ellis

                
	
                  Name:  

                	
                  Sharon
      Ellis

                
	
                  Title:

                	
                  Treasurer

                
	 
      	 
      
	
                  TXI
      OPERATIONS, LP

                
	 
      
	
                  By:

                	
                  TXI
      Operating Trust, its General Partner

                
	 
      	 
      
	
                  By:

                	
                  /s/ Sharon
      Ellis                                           

                
	
                  Name:  

                	
                  Sharon
      Ellis

                
	
                  Title:

                	
                  Treasurer

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ADMINISTRATIVE
AGENT:

    

    
      
        	
                BANK
      OF AMERICA, N.A., as Administrative Agent

              
	 
      
	
                By:

              	
                /s/ Joy L. Bartholomew

              
	
                Name:  

              	
                Joy
      L. Bartholomew

              
	
                Title:

              	
                Senior
      Vice President

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