Document:

exv10w3

 

Exhibit 10.3

CHANGE IN TERMS AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Principal	 	 	Loan Date	 	 	Maturity	 	 	Loan No.	 	 	Call / Coll	 	 	Account	 	 	Officer	 	 	Initials	 
	 	$230,000.00	 	 	08-02-2006	 	 	12-02-2006	 	 	479195	 	 		 	 		 	 	025	 	 	 	 
	 	References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***’’ has been omitted due to text length limitations.
	 
	 

	 	 	 	 	 	 	 
	Borrower:

	 	Z-AXIS CORPORATION
	 	Lender:
	 	COLORADO BUSINESS BANK
	 

	 	THE QUADRANT — 5445 DTC PARKWAY STE. 450
	 	 	 	DENVER
	 

	 	GREENWOOD VILLAGE, CO 80111
	 	 	 	821 17TH STREET
	 

	 	 	 	 	 	DENVER, CO 80202

					
	Principal Amount: $230,000.00
	 	Initial Rate: 9.750%
	 	Date of Agreement: August 2, 2006

DESCRIPTION OF
EXISTING INDEBTEDNESS. AN ORIGINAL PROMISSORY NOTE DATED JUNE 2, 2003 IN THE
PRINCIPAL AMOUNT OF $500,000.00, WITH AN ORIGINAL MATURITY DATE OF JULY 2, 2004
AND INCLUDING ANY AND ALL SUBSEQUENT EXTENSIONS AND MODIFICATIONS THEREFROM.

DESCRIPTION OF CHANGE IN TERMS. EXTENSION OF MATURITY DATE
FROM AUGUST 2, 2006 TO DECEMBER 2, 2006. IN ADDITION, THIS
LINE OF CREDIT IS HEREBY CAPPED AT $215,000.00 AS OF
SEPTEMBER 2, 2006; $200,000.00 AS OF OCTOBER 2, 2006; AND
$185,000.00 AS OF NOVEMBER 2, 2006. ALSO, SEE BELOW FOR NEW
INTEREST RATE. ALL OTHER TERMS AND CONDITIONS WILL REMAIN
THE SAME.

PROMISE TO
PAY. Z-AXIS CORPORATION (“Borrower“) promises to
pay to COLORADO BUSINESS BANK (“Lender”), or order, in
lawful money of the United States of America, the principal
amount of Two Hundred Thirty Thousand & 00/100 Dollars
($230,000.00) or so much as may be outstanding, together
with interest on the unpaid outstanding principal balance
of each advance. Interest shall be calculated from the date
of each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan in one payment of all
outstanding principal plus all accrued unpaid interest on December 2, 2006. In
addition, Borrower will pay regular monthly payments of all accrued unpaid
interest due as of each payment date, beginning September 2, 2006, with all
subsequent interest payments to be due on the same day of each month after
that. Unless otherwise agreed or required by applicable law, payments will be
applied first to any accrued unpaid interest; then to principal: then to any
late charges; and then to any unpaid collection costs. Interest on this loan is
computed on a 365/360 simple interest basis; that is, by applying the ratio of
the annual interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal balance
is outstanding. Borrower will pay Lender at Lender’s address shown above or at
such other place as Lender may designate in writing.

VARIABLE INTEREST RATE. The interest rate on this loan is subject to change
from time to time based on changes in an index which is the COLORADO BUSINESS
BANK PRIME RATE (the “Index”). Lender will tell Borrower
the current Index rate
upon Borrower’s request. The interest rate change will not occur more often
than each DAY. Borrower understands that Lender may make loans based on other
rates as well. The index currently is 8.250% per annum. The interest rate to be
applied to the unpaid principal balance during this loan will be at a rate of
1.500 percentage points over the Index, resulting in an initial rate of 9.750%
per annum. NOTICE: Under no circumstances will the interest rate on this loan
be more than the maximum rate allowed by applicable law.

PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance
charges are earned fully as of the date of the loan and will not be subject to
refund upon early payment (whether voluntary or as a result of default), except
as otherwise required by law. Except for the foregoing, Borrower may pay
without penalty all or a portion of the amount owed earlier than it is due.
Early payments will not, unless agreed to by Lender in writing, relieve
Borrower of Borrower’s obligation to continue to make payments of accrued
unpaid interest. Rather, early payments will reduce the principal balance due.
Borrower agrees not to send Lender payments marked “paid in full”, “without
recourse”, or similar language. If Borrower sends such a payment, Lender may
accept it without losing any of Lender’s rights under this Agreement, and
Borrower will remain obligated to pay any further amount owed to Lender. All
written communications concerning disputed amounts, including any check or
other payment instrument that indicates that the payment constitutes “payment
in full” of the amount owed or that is tendered with other conditions or
limitations or as full satisfaction of a disputed amount must be mailed or
delivered to: COLORADO BUSINESS BANK, ATTN: LOAN OPERATIONS, P.O. BOX 8779
DENVER, CO 80201.

LATE CHARGE. If a payment is 11 days or more late, Borrower
will be charged 5.000% of the unpaid portion of the regularly scheduled
payment.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final
maturity, the interest rate on this loan shall be increased by adding a 5.000
percentage point margin (“Default Rate Margin”). The Default Rate Margin shall
also apply to each succeeding interest rate change that would have applied had
there been no default. However, in no event will the interest rate exceed the
maximum interest rate limitations under applicable law.

DEFAULT. Each of the
following shall constitute an Event of Default under this Agreement:

Payment Default. Borrower fails to make any payment when due under the
Indebtedness.

Other Defaults. Borrower fails to comply with or to perform
any other term, obligation, covenant or condition contained in this
Agreement or in any of the Related Documents or to comply with or to perform
any term, obligation, covenant or condition contained in any other agreement
between Lender and Borrower.

False Statements. Any warranty, representation
or statement made or furnished to Lender by Borrower or on Borrower’s behalf
under this Agreement or the Related Documents is false or misleading in any
material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.

Insolvency. The dissolution or
termination of Borrower’s existence as a going business, the insolvency of
Borrower, the appointment of a receiver for any part of Borrower’s property,
any assignment for the benefit of creditors, any type of creditor workout,
or the commencement of any proceeding under any bankruptcy or insolvency
laws by or against Borrower.

Creditor or Forfeiture Proceedings.
Commencement of foreclosure or forfeiture proceedings, whether by judicial
proceeding, self-help, repossession or any other method, by any creditor of
Borrower or by any governmental agency against any collateral securing the
Indebtedness. This includes a garnishment of any of Borrower’s accounts,
including deposit accounts, with Lender. However, this Event of Default
shall not apply if there is a good faith dispute by Borrower as to the
validity or reasonableness of the claim which is the basis of the creditor
or forfeiture proceeding and if Borrower gives Lender written notice of the
creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount
determined by Lender, in its sole discretion, as being an adequate reserve
or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect
to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes
incompetent, or revokes or disputes the validity of, or liability under, any
Guaranty of the Indebtedness evidenced by this Note.

Change
In Ownership. Any change in ownership of
twenty-five percent (25%) or more of the common stock of
Borrower.

Adverse Change. A material adverse change occurs in
Borrower’s financial condition, or Lender believes the
prospect of payment or performance of the Indebtedness
is impaired.

Insecurity. Lender in good faith believes itself
insecure.

LENDER’S
RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance under this Agreement and all accrued unpaid interest immediately due,
and then Borrower will pay that amount.

ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collect
this Agreement if Borrower does not pay. Borrower will pay Lender the
reasonable costs of such collection. This includes, subject to any limits under
applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether
or not there is a lawsuit, including without limitation attorneys’ fees and
legal expenses for bankruptcy proceedings (including efforts to modify or
vacate any automatic stay or injunction), and appeals. If not prohibited by
applicable law, Borrower also will pay any court costs, in addition to all
other sums provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in
any action, proceeding, or counterclaim brought by either Lender or Borrower
against the other.

 

 

					
	 
	 	CHANGE IN TERMS AGREEMENT	 	 
	Loan No: 479195
	 	(Continued)
	 	Page 2
	 

GOVERNING
LAW. This Agreement will be governed by federal
law applicable to Lender and, to the extent not preempted
by federal law, the laws of the State of Colorado without
regard to its conflicts of law provisions. This Agreement
has been accepted by Lender in the State of Colorado.

DISHONORED
ITEM FEE. Borrower will pay a fee to Lender of $32.00 if Borrower
makes a payment on Borrower’s loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Borrower’s accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds
jointly with someone else and all accounts Borrower may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
debt against any and all such accounts.

LINE OF CREDIT. This Agreement evidences a revolving line of credit. Advances
under this Agreement, as well as directions for payment from Borrower’s
accounts, may be requested orally or in writing by Borrower or by an authorized
person. Lender may, but need not, require that all oral requests be confirmed in
writing. Borrower agrees to be liable for all sums either: (A) advanced in
accordance with the instructions of an authorized person or (B) credited to any
of Borrower’s accounts with Lender. The unpaid principal balance owing on this
Agreement at any time may be evidenced by endorsements on this Agreement or by
Lender’s internal records, including daily computer print-outs. Lender will have
no obligation to advance funds under this Agreement if: (A) Borrower or any
guarantor is in default under the terms of this Agreement or any agreement that
Borrower or any guarantor has with Lender, including any agreement made in
connection with the signing of this Agreement; (B) Borrower or any guarantor
ceases doing business or is insolvent; (C) any guarantor seeks, claims or
otherwise attempts to limit, modify or revoke such guarantor’s guarantee of this
Agreement or any other loan with Lender; (D) Borrower has applied funds provided
pursuant to this Agreement for purposes other than those authorized by Lender;
or (E) Lender in good faith believes itself insecure.

CONTINUING VALIDITY.
Except as expressly changed by this Agreement, the terms of the original
obligation or obligations, including all agreements evidenced or securing the
obligation(s), remain unchanged and in full force and effect. Consent by Lender
to this Agreement does not waive Lender’s right to strict performance of the
obligation(s) as changed, nor obligate Lender to make any future change in
terms. Nothing in this Agreement will constitute a satisfaction of the
obligation(s). It is the intention of Lender to retain as liable parties all
makers and endorsers of the original obligation(s), including accommodation
parties, unless a party is expressly released by Lender in writing. Any maker or
endorser, including accommodation makers, will not be released by virtue of this
Agreement. If any person who signed the original obligation does not sign this
Agreement below, then all persons signing below acknowledge that this Agreement
is given conditionally, based on the representation to Lender that the
non-signing party consents to the changes and provisions of this Agreement or
otherwise will not be released by it. This waiver applies not only to any
initial extension, modification or release, but also to all such subsequent
actions.

SUCCESSORS AND ASSIGNS. Subject to any limitations stated in this Agreement on
transfer of Borrower’s interest, this Agreement shall be binding upon and inure
to the benefit of the parties, their successors and assigns. If ownership of
the Collateral becomes vested in a person other than Borrower, Lender, without
notice to Borrower, may deal with Borrower’s successors with reference to this
Agreement and the Indebtedness by way of forbearance or extension without
releasing Borrower from the obligations of this Agreement or liability under
the Indebtedness.

NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES.
Please notify us if we report any inaccurate information about your account(s)
to a consumer reporting agency. Your written notice describing the specific
inaccuracy(ies) should be sent to us at the following address: COLORADO
BUSINESS BANK ATTN: LOAN OPERATIONS 821 17TH STREET DENVER, CO 80202.

MISCELLANEOUS PROVISIONS. If any part of this Agreement cannot be enforced,
this fact will not affect the rest of the Agreement. Lender may delay or forgo
enforcing any of its rights or remedies under this Agreement without losing
them. Borrower and any other person who signs, guarantees or endorses this
Agreement, to the extent allowed by law, waive presentment, demand for payment,
and notice of dishonor. Upon any change in the terms of this Agreement, and
unless otherwise expressly stated in writing, no party who signs this
Agreement, whether as maker, guarantor, accommodation maker or endorser, shall
be released from liability. All such parties agree that Lender may renew or
extend (repeatedly and for any length of time) this loan or release any party
or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s
security interest in the collateral; and take any other action deemed necessary
by Lender without the consent of or notice to anyone. All such parties also
agree that Lender may modify this loan without the consent of or notice to
anyone other than the party with whom the modification is made. The
obligations under this Agreement are joint and several.

PRIOR TO SIGNING THIS
AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT,
INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS
OF THE AGREEMENT.

	 	 	 	 	 	 	 
	BORROWER:	 	 	 	 
	 
	 	 	 	 	 	 
	Z-AXIS CORPORATION	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ ALAN TREIBITZ
	 	By:
	 	/s/ STEPHANIE S. KELSO
	 

	 	 
	 	 	 	 
	 

	 	ALAN TREIBITZ, CEO/CFO of Z-AXIS
	 	 	 	STEPHANIE S. KELSO, President of Z-AXIS
	 

	 	CORPORATION
	 	 	 	CORPORATION

 

 

 

DISBURSEMENT REQUEST AND AUTHORIZATION

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Principal	 	 	Loan Date	 	 	Maturity	 	 	Loan No.	 	 	Call / Coll	 	 	Account	 	 	Officer	 	 	Initials	 
	 	$230,000.00	 	 	08-02-2006	 	 	12-02-2006	 	 	479195	 	 		 	 		 	 	025	 	 	 	 
	 	References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***’’ has been omitted due to text length limitations.
	 
	 

	 	 	 	 	 	 	 
	Borrower:

	 	Z-AXIS CORPORATION
	 	Lender:
	 	COLORADO BUSINESS BANK
	 

	 	THE QUADRANT — 5445 DTC PARKWAY STE. 450
	 	 	 	DENVER
	 

	 	GREENWOOD VILLAGE CO 80111
	 	 	 	821 17TH STREET
	 

	 	 	 	 	 	DENVER, CO 80202

LOAN TYPE. This is a Variable Rate Nondisclosable
Revolving Line of Credit
Loan to a Corporation for $230,000.00 due on December 2, 2006. The reference
rate (COLORADO BUSINESS BANK PRIME RATE, currently 8.250%) is added to the
margin of 1.500%, resulting in an initial rate of 9.750.

PRIMARY PURPOSE OF LOAN. The primary purpose of this loan
is for:

o Personal, Family, or Household Purposes or Personal
Investment.

x Business (Including Real Estate Investment).

SPECIFIC PURPOSE. The specific purpose of this loan is:
CHANGE IN TERMS.

DISBURSEMENT INSTRUCTIONS. Borrower understands that no
loan proceeds will be disbursed until all of Lender’s
conditions for making the loan have been satisfied. Please
disburse the loan proceeds of $230,000.00 as follows:

	 	 	 	 	 
	Undisbursed Funds:
	 	$	118.20	 
	Other Disbursements:
	 	$	229,881.80	 
	$229,881.80 EXTEND & MODIFY LOAN #479195 (CURRENT
BALANCE)
	 	 	 	 
	 
	 	 	 
	Note Principal:
	 	$	230,000.00	 

CHARGES PAID IN CASH. Borrower has paid or will pay in cash as agreed
the following charges:

	 	 	 	 	 
	Prepaid Finance Charges Paid in Cash:
	 	$	1,000.00	 
	$1,000.00 LOAN FEE
	 	 	 	 
	Other Charges Paid in Cash:
	 	$	1,949.21	 
	$1,949.21 INTEREST DUE TO 09-02-06
	 	 	 	 
	 
	 	 	 
	Total Charges Paid In Cash:
	 	$	2,949.21	 

AUTHORIZATION. BORROWER AUTHORIZES LENDER TO DISBURSE THE
LOAN PROCEEDS BY WIRE TRANSFER WHERE APPROPRIATE AND THIS
AUTHORIZATION SHALL CONSTITUTE A PAYMENT ORDER FOR SUCH
TRANSFERS.

FINANCIAL CONDITION. BY SIGNING THlS AUTHORIZATION, BORROWER REPRESENTS AND
WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND
THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER’S FINANCIAL
CONDITION AS DISCLOSED IN BORROWER’S MOST RECENT FINANCIAL STATEMENT TO LENDER.
THlS AUTHORIZATION IS DATED AUGUST 2, 2006.

	 	 	 	 	 	 	 
	BORROWER:	 	 	 	 
	 
	 	 	 	 	 	 
	Z-AXIS CORPORATION	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ ALAN TREIBITZ
	 	By:
	 	/s/ STEPHANIE S. KELSO
	 

	 	 
	 	 	 	 
	 

	 	ALAN TREIBITZ, CEO/CFO of Z-AXIS
	 	 	 	STEPHANIE S. KELSO, President of Z-AXIS
	 

	 	CORPORATION
	 	 	 	CORPORATION

 

 

COMMERCIAL GUARANTY

																	
	 

	 
 
	Principal	 
 
	Loan Date	 
 
	Maturity	 
 
	Loan No	 
 
	Call/Coll	 
 
	Account	 
 
	Officer
025	 
 
	Initials	 
 

	 
	 
	 

	 
 
	References in the
shaded area are for Lender’s use only and do not limit the
applicability of this document to any particular loan or item.

Any
item above containing “***” has been omitted due to text
length limitations.	 
 

	 
	 
	 

	 	 	 	 
	Borrower:	Z-AXIS CORPORATION	Lender:	COLORADO BUSINESS BANK
	 	THE QUADRANT - 5445 DTC PARKWAY
STE. 450	 	DENVER
	 	GREENWOOD VILLAGE, CO 80111	 	821 17TH STREET
	 	 	 	DENVER, CO 80202
	Guarantor:	ALAN TREIBITZ	 	 
	 	259 LEAD QUEEN DR.	 	 
	 	CASTLE ROCK, CO 80108	 	 
	 

CONTINUING GUARANTEE OF PAYMENT AND PERFORMANCE. For good and valuable
consideration, Guarantor absolutely and unconditionally guarantees full and
punctual payment and satisfaction of the Indebtedness of Borrower to Lender, and
the performance and discharge of all Borrower’s obligations under the Note and
the Related Documents. This is a guaranty of payment and performance and not of
collection, so Lender can enforce this Guaranty against Guarantor even when
Lender has not exhausted Lender’s remedies against anyone else obligated to pay
the Indebtedness or against any collateral securing the Indebtedness, this
Guaranty or any other guaranty of the Indebtedness. Guarantor will make any
payments to Lender or its order, on demand, in legal tender of the United States
of America, in same-day funds, without set-off or deduction or counterclaim, and
will otherwise perform Borrower’s obligations under the Note and Related
Documents. Under this Guaranty, Guarantor’s liability is unlimited and
Guarantor’s obligations are continuing.

INDEBTEDNESS.
The word “Indebtedness” as used in this Guaranty means all of the
principal amount outstanding from time to time and at any one or more times,
accrued unpaid interest thereon and all collection costs and legal expenses
related thereto permitted by law, attorneys’ fees, arising from any and all
debts, liabilities and obligations of every nature or form, now existing or
hereafter arising or acquired, that Borrower individually or collectively or
interchangeably with others, owes or will owe Lender. “Indebtedness” includes,
without limitation, loans, advances, debts, overdraft indebtedness, credit card
indebtedness, lease obligations, liabilities and obligations under any interest
rate protection agreements or foreign currency exchange agreements or commodity
price protection agreements, other obligations, and liabilities of Borrower, and
any present or future judgments against Borrower, future advances, loans or
transactions that renew, extend, modify, refinance, consolidate or substitute
these debts, liabilities and obligations whether: voluntarily or involuntarily
incurred; due or to become due by their terms or acceleration; absolute or
contingent; liquidated or unliquidated; determined or undetermined; direct or
indirect; primary or secondary in nature or arising from a guaranty or surety;
secured or unsecured; joint or several or joint and several; evidenced by a
negotiable or non-negotiable instrument or writing; originated by Lender or
another or others; barred or unenforceable against Borrower for any reason
whatsoever; for any transactions that may be voidable for any reason (such as
infancy, insanity, ultra vires or otherwise); and originated then reduced or
extinguished and then afterwards increased or reinstated.

If Lender
presently holds one or more guaranties, or hereafter receives
additional guaranties from Guarantor, Lender’s rights under all
guaranties shall be cumulative. This Guaranty shall not (unless
specifically provided below to the contrary) affect or invalidate any
such other guaranties. Guarantor’s liability will be
Guarantor’s aggregate liability under the terms of this Guaranty
and any such other unterminated guaranties.

CONTINUING GUARANTY. THIS
IS A “CONTINUING GUARANTY” UNDER WHICH GUARANTOR AGREES TO GUARANTEE THE FULL
AND PUNCTUAL PAYMENT, PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS OF
BORROWER TO LENDER, NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN
AND CONTINUING BASIS. ACCORDINGLY, ANY PAYMENTS MADE ON THE INDEBTEDNESS WILL
NOT DISCHARGE OR DIMINISH GUARANTOR’S OBLIGATIONS AND LIABILITY UNDER THIS
GUARANTY FOR ANY REMAINING AND SUCCEEDING INDEBTEDNESS EVEN WHEN ALL OR PART OF
THE OUTSTANDING INDEBTEDNESS MAY BE A ZERO BALANCE FROM TIME TO TIME.

DURATION OF GUARANTY. This Guaranty will take effect when received by Lender
without the necessity of any acceptance by Lender, or any notice to Guarantor
or to Borrower, and will continue in full force until all the Indebtedness
incurred or contracted before receipt by Lender of any notice of revocation
shall have been fully and finally paid and satisfied and all of Guarantor’s
other obligations under this Guaranty shall have been performed in full. If
Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing.
Guarantor’s written notice of revocation must be mailed to Lender, by certified
mail, at Lender’s address listed above or such other place as Lender may
designate in writing. Written revocation of this Guaranty will apply only to
advances or new Indebtedness created after actual receipt by Lender of
Guarantor’s written revocation. For this purpose and without limitation, the
term “new Indebtedness” does not include the Indebtedness which at the time of
notice of revocation is contingent, unliquidated, undetermined or not due and
which later becomes absolute, liquidated, determined or due. This Guaranty will
continue to bind Guarantor for all the Indebtedness incurred by Borrower or
committed by Lender prior to receipt of Guarantor’s written notice of
revocation, including any extensions, renewals, substitutions or modifications
of the Indebtedness. All renewals, extensions, substitutions, and modifications
of the Indebtedness granted after Guarantor’s revocation, are contemplated
under this Guaranty and, specifically will not be considered to be new
Indebtedness. This Guaranty shall bind Guarantor’s estate as to the
Indebtedness created both before and after Guarantor’s death or incapacity,
regardless of Lender’s actual notice of Guarantor’s death. Subject to the
foregoing, Guarantor’s executor or administrator or other legal representative
may terminate this Guaranty in the same manner in which Guarantor might have
terminated it and with the same effect. Release of any other guarantor or
termination of any other guaranty of the Indebtedness shall not affect the
liability of Guarantor under this Guaranty. A revocation Lender receives from
any one or more Guarantors shall not affect the liability of any remaining
Guarantors under this Guaranty. It is anticipated that fluctuations may occur
in the aggregate amount of the Indebtedness covered by this Guaranty, and
Guarantor specifically acknowledges and agrees that reductions in the amount of
the Indebtedness, even to zero dollars ($0.00), prior to Guarantor’s written
revocation of this Guaranty shall not constitute a termination of this
Guaranty. This Guaranty is binding upon Guarantor and Guarantor’s heirs,
successors and assigns so long as any of the Indebtedness remains unpaid and
even though the Indebtedness may from time to time be zero dollars
($0.00).

GUARANTOR’S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before
or after any revocation hereof, without notice or demand and without lessening
Guarantor’s liability under this Guaranty, from time to time: (A) prior to
revocation as set forth above, to make one or more additional secured or
unsecured loans to Borrower, to lease equipment or other goods to Borrower, or
otherwise to extend additional credit to Borrower; (B) to alter, compromise,
renew, extend, accelerate, or otherwise change one or more times the
time for payment or other terms of the Indebtedness or any part of
the Indebtedness,
including increases and decreases of the rate of interest on the Indebtedness;
extensions may be repeated and may be for longer than the original loan term;
(C) to take and hold security for the payment of this Guaranty or the
Indebtedness, and exchange, enforce, waive, subordinate, fail or decide not to
perfect, and release any such security, with or without the substitution of new
collateral; (D) to release, substitute, agree not to sue, or deal with any one
or more of Borrower’s sureties, endorsers, or other guarantors on any terms or
in any manner Lender may choose; (E) to determine how, when and what
application of payments and credits shall be made on the
Indebtedness; (F) to
apply such security and direct the order or manner of sale thereof, including
without limitation, any nonjudicial sale permitted by the terms of the
controlling security agreement or deed of trust, as Lender in its discretion
may determine: (G) to sell, transfer, assign or grant participations in all or
any part of the Indebtedness; and (H) to assign or transfer this Guaranty in
whole or in part.

GUARANTOR’S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants
to Lender that (A) no representations or agreements of any kind have been made
to Guarantor which would limit or qualify in any way the terms of this
Guaranty; (B) this Guaranty is executed at Borrower’s request and not at the
request of Lender; (C) Guarantor has full power, right and authority to enter
into this Guaranty; (D) the provisions of this Guaranty do not conflict with or
result in a default under any agreement or other instrument binding upon
Guarantor and do not result in a violation of any law, regulation, court decree
or order applicable to Guarantor; (E) Guarantor has not and will not, without
the prior written consent of Lender, sell, lease, assign, encumber,
hypothecate, transfer, or otherwise dispose of all or substantially all of
Guarantor’s assets, or any interest therein; (F) upon Lender’s request,
Guarantor will provide to Lender financial and credit information in form
acceptable to Lender, and all such financial information which currently has
been, and all future financial information which will be provided to Lender is
and will be true and correct in all material respects and fairly present
Guarantor’s financial condition as of the dates the financial information is
provided; (G) no material adverse change has occurred in Guarantor’s financial
condition since the date of the most recent financial statements provided to
Lender and no event has occurred which may materially adversely affect
Guarantor’s financial condition; (H) no litigation, claim,
investigation,
administrative proceeding or similar action (including those for unpaid taxes)
against Guarantor is pending or threatened; (I) Lender has made no
representation to Guarantor as to the creditworthiness of Borrower;
and (J)
Guarantor has established adequate means of obtaining from Borrower on a
continuing basis information regarding Borrower’s financial condition.
Guarantor agrees to keep adequately informed from such means of any facts,
events, or circumstances which might in any way affect Guarantor’s risks under
this Guaranty, and Guarantor further agrees that, absent a request for
information. Lender shall have no obligation to disclose to Guarantor any

 

 

					
	 
	 	COMMERCIAL GUARANTY	 	 
	Loan No: 479195
	 	(Continued)
	 	Page 2

information or documents acquired by Lender in the course
of its relationship with Borrower.

GUARANTOR’S WAIVERS. Except as prohibited by applicable law, Guarantor waives
any right to require Lender [A) to continue lending money or to extend other
credit to Borrower; (B) to make any presentment, protest, demand, or notice of
any kind, including notice of any nonpayment of the Indebtedness or of any
nonpayment related to any collateral, or notice of any action or nonaction on
the part of Borrower, Lender, any surety, endorser, or other guarantor in
connection with the Indebtedness or in connection with the creation of new or
additional loans or obligations; (C) to resort for payment or to proceed
directly or at once against any person, including Borrower or any other
guarantor; (D) to proceed directly against or exhaust any collateral held by
Lender from Borrower, any other guarantor, or any other person; (E) to give
notice of the terms, time, and place of any public or private sale of personal
property security held by Lender from Borrower or to comply with any other
applicable provisions of the Uniform Commercial Code; (F) to pursue any other
remedy within Lender’s power; or (G) to commit any act or omission of any kind,
or at any time, with respect to any matter whatsoever.

Guarantor also waives any and all rights or defenses based on suretyship or
impairment of collateral including, but not limited to, any rights or defenses
arising by reason of (A) any “one action” or “anti-deficiency” law or any other
law which may prevent Lender from bringing any action, including a claim for
deficiency, against Guarantor, before or after Lender’s commencement or
completion of any foreclosure action, either judicially or by exercise of a
power of sale; (B) any election of remedies by Lender which destroys or
otherwise adversely affects Guarantor’s subrogation rights or Guarantor’s rights
to proceed against Borrower for reimbursement, including without limitation, any
loss of rights Guarantor may suffer by reason of any law limiting, qualifying,
or discharging the Indebtedness; (C) any disability or other defense of
Borrower, of any other guarantor, or of any other person, or by reason of the
cessation of Borrower’s liability from any cause whatsoever, other than payment
in full in legal tender, of the Indebtedness; (D) any right to claim discharge
of the Indebtedness on the basis of unjustified impairment of any collateral far
the Indebtedness; (E) any statute of limitations, if at any time any action or
suit brought by Lender against Guarantor is commenced, there is outstanding
Indebtedness which is not barred by any applicable statute of
limitations; or
(F) any defenses given to guarantors at law or in equity other than
actual
payment and performance of the Indebtedness. If payment is made by
Borrower,
whether voluntarily or otherwise, or by any third party, on the Indebtedness and
thereafter Lender is forced to remit the amount of that payment to Borrower’s
trustee in bankruptcy or to any similar person under any federal or state
bankruptcy law or law for the relief of debtors, the Indebtedness shall be
considered unpaid for the purpose of the enforcement of this Guaranty.

Guarantor further waives and agrees not to assert or claim at any time any
deductions to the amount guaranteed under this Guaranty for any claim of
setoff, counterclaim, counter demand, recoupment or similar right, whether such
claim, demand or right may be asserted by the Borrower, the Guarantor, or
both.

GUARANTOR’S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and
agrees that each of the waivers set forth above is made with Guarantor’s full
knowledge of its significance and consequences and that, under the
circumstances, the waivers are reasonable and not contrary to public policy or
law. If any such waiver is determined to be contrary to any applicable law or
public policy, such waiver shall be effective only to the extent permitted by
law or public policy.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Guarantor’s accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Guarantor holds
jointly with someone else and all accounts Guarantor may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Guarantor authorizes Lender, to
the extent permitted by applicable law, to hold these funds if there is a
default, and Lender may apply the funds in these accounts to pay what Guarantor
owes under the terms of this Guaranty.

SUBORDINATION OF BORROWER’S DEBTS TO GUARANTOR. Guarantor agrees that the
Indebtedness, whether now existing or hereafter created, shall be superior to
any claim that Guarantor may now have or hereafter acquire against Borrower,
whether or not Borrower becomes insolvent. Guarantor hereby expressly
subordinates any claim Guarantor may have against Borrower, upon any account
whatsoever, to any claim that Lender may now or hereafter have against
Borrower. In the event of insolvency and consequent liquidation of the assets
of Borrower, through bankruptcy, by an assignment for the benefit of creditors,
by voluntary liquidation, or otherwise, the assets of Borrower applicable to
the payment of the claims of both Lender and Guarantor shall be paid to Lender
and shall be first applied by Lender to the Indebtedness. Guarantor does hereby
assign to Lender all claims which it may have or acquire against Borrower or
against any assignee or trustee in bankruptcy of Borrower; provided however,
that such assignment shall be effective only for the purpose of assuring to
Lender full payment in legal tender of the Indebtedness. If Lender so requests,
any notes or credit agreements now or hereafter evidencing any debts or
obligations of Borrower to Guarantor shall be marked with a legend that the
same are subject to this Guaranty and shall be delivered to Lender. Guarantor
agrees, and Lender is hereby authorized, in the name of Guarantor, from time to
time to file financing statements and continuation statements and to execute
documents and to take such other actions as Lender deems necessary or
appropriate to perfect, preserve and enforce its rights under this Guaranty.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Guaranty.

Amendments. This Guaranty, together with any Related Documents, constitutes
the entire understanding and agreement of the parties as to the matters set
forth in this Guaranty. No alteration of or amendment to this Guaranty shall
be effective unless given in writing and signed by the party or parties
sought to be charged or bound by the alteration or amendment.

Attorneys’
Fees; Expenses. Guarantor agrees to pay upon demand all of
Lender’s reasonable costs and expenses, including Lender’s attorneys’ fees
and Lender’s legal expenses, incurred in connection with the enforcement of
this Guaranty. Lender may hire or pay someone else to help enforce this
Guaranty, and Guarantor shall pay the reasonable costs and expenses of such
enforcement. Costs and expenses include Lender’s attorneys’ fees and legal
expenses whether or not there is a lawsuit, including attorneys’ fees and
legal expenses for bankruptcy proceedings (including efforts to modify or
vacate any automatic stay or injunction), appeals, and any anticipated
post-judgment collection services. Guarantor also shall pay all court costs
and such additional fees as may be directed by the court.

Caption Headings. Caption headings in this Guaranty are for convenience
purposes only and are not to be used to interpret or define the provisions
of this Guaranty.

Governing
Law. This Guaranty will be governed by federal
law applicable to Lender and, to the extent not preempted by federal law,
the laws of the State of Colorado without regard to its conflicts of law
provisions. This Guaranty has been accepted by Lender in the State of
Colorado.

Integration.
Guarantor further agrees that Guarantor has read and fully
understands the terms of this Guaranty; Guarantor has had the opportunity to
be advised by Guarantor’s attorney with respect to this Guaranty; the
Guaranty fully reflects Guarantor’s intentions and parol evidence is not
required to interpret the terms of this Guaranty. Guarantor hereby
indemnifies and holds Lender harmless from all losses, claims, damages, and
costs (including Lender’s attorneys’ fees) suffered or incurred by Lender as
a result of any breach by Guarantor of the warranties, representations and
agreements of this paragraph.

Interpretation. In all cases where there is more than one Borrower or
Guarantor, then all words used in this Guaranty in the singular shall be
deemed to have been used in the plural where the context and construction so
require; and where there is more than one Borrower named in this Guaranty or
when this Guaranty is executed by more than one Guarantor, the words
“Borrower” and “Guarantor” respectively shall mean all and any one or more
of them. The words “Guarantor,” “Borrower,” and “Lender” include the heirs,
successors, assigns, and transferees of each of them. If a court finds that
any provision of this Guaranty is not valid or should not be enforced, that
fact by itself will not mean that the rest of this Guaranty will not be
valid or enforced. Therefore, a court will enforce the rest of the
provisions of this Guaranty even if a provision of this Guaranty may be
found to be invalid or unenforceable. If any one or more of Borrower or
Guarantor are corporations, partnerships, limited liability companies, or
similar entities, it is not necessary for Lender to inquire into the powers
of Borrower or Guarantor or of the officers, directors, partners, managers,
or other agents acting or purporting to act on their behalf, and any
indebtedness made or created in reliance upon the professed exercise of such
powers shall be guaranteed under this Guaranty.

Notices. Any notice required to be given under this Guaranty shall be given
in writing, and, except for revocation notices by Guarantor, shall be
effective when actually delivered, when actually received by telefacsimile
(unless otherwise required by law), when deposited with a nationally
recognized overnight courier, or, if mailed, when deposited in the United
States mail, as first class, certified or registered mail postage prepaid,
directed to the addresses shown near the beginning of this Guaranty. All
revocation notices by Guarantor shall be in writing and shall be effective
upon delivery to Lender as provided in the section of this Guaranty entitled
“DURATION OF GUARANTY.” Any party may change its address for notices under
this Guaranty by giving formal written notice to the other parties,
specifying that the purpose of the notice is to change the party’s address.
For notice purposes, Guarantor agrees to keep Lender informed at all times
of Guarantor’s current address. Unless otherwise provided or required by
law, if there is more than one Guarantor, any notice given by Lender to any
Guarantor is deemed to be notice given to all Guarantors.

No Waiver by Lender. Lender shall not be deemed to have waived any rights
under this Guaranty unless such waiver is given in writing and signed by
Lender. No delay or omission on the part of Lender in exercising any right
shall operate as a waiver of such right or any other right. A waiver by
Lender of a provision of this Guaranty shall not prejudice or constitute a
waiver of Lender’s right otherwise to demand strict compliance with that
provision or any other provision of this Guaranty. No prior waiver by
Lender, nor any course of dealing between Lender and Guarantor, shall
constitute a waiver of any of Lender’s rights or of any of Guarantor’s
obligations as to any future transactions. Whenever the consent of
Lender is
required under this Guaranty, the granting of such consent by Lender in any
instance shall not constitute

 

 

					
	 
	 	COMMERCIAL GUARANTY	 	 
	Loan No: 479195
	 	(Continued)
	 	Page 3

continuing consent to subsequent instances where such
consent is required and in all cases such consent may be
granted or withheld in the sole discretion of Lender.

Successors and Assigns. Subject to any limitations stated in this Guaranty
on transfer of Guarantor’s interest, this Guaranty shall be binding upon and
inure to the benefit of the parties, their successors and assigns.

Waive Jury. Lender and Guarantor hereby waive the right to any jury trial in
any action, proceeding, or counterclaim brought by either Lender or Borrower
against the other.

DEFINITIONS.
The following capitalized words and terms shall have the following
meanings when used in this Guaranty. Unless specifically stated to the contrary,
all references to dollar amounts shall mean amounts in lawful money of the
United States of America. Words and terms used in the singular shall include the
plural, and the plural shall include the singular, as the context may require.
Words and terms not otherwise defined in this Guaranty shall have the meanings
attributed to such terms in the Uniform Commercial Code:

Borrower.
The word “Borrower” means Z-AXIS CORPORATION
and includes all co-signers and co-makers signing the
Note and all their successors and assigns.

Guarantor. The word “Guarantor” means everyone signing
this Guaranty, including without limitation ALAN
TREIBITZ, and in each case, any signer’s successors and
assigns.

Guaranty. The word “Guaranty” means this guaranty from
Guarantor to Lender.

Indebtedness. The word “Indebtedness” means Borrower’s
indebtedness to Lender as more particularly described in
this Guaranty.

Lender.
The word “Lender” means COLORADO BUSINESS BANK, its successors and
assigns.

Note.
The word “Note” means and includes without limitation all of
Borrower’s promissory notes and/or credit agreements evidencing Borrower’s
loan obligations in favor of Lender, together with all renewals of,
extensions of, modifications of, refinancings of, consolidations of and
substitutions for promissory notes or credit agreements.

Related
Documents. The words “Related Documents” mean all promissory notes,
credit agreements, loan agreements, environmental agreements, guaranties,
security agreements, mortgages, deeds of trust, security deeds, collateral
mortgages, and all other instruments, agreements and documents, whether now
or hereafter existing, executed in connection with the indebtedness.

EACH
UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF
THIS
GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT
THIS GUARANTY IS EFFECTIVE UPON GUARANTOR’S EXECUTION AND DELIVERY OF THIS
GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE
MANNER SET FORTH IN THE SECTION TITLED “DURATION OF GUARANTY”. NO FORMAL
ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS
GUARANTY IS DATED AUGUST 2, 2006.

GUARANTOR:

	 	 	 	 	 
	X

	 	/s/ ALAN TREIBITZ
	 	 
	 

	 	 	 	 
	 

	 	ALAN TREIBITZAmendment No. 6 to the Credit Agreement

EXECUTION COPY 

AMENDMENT NO. 6 TO THE
CREDIT AGREEMENT 

Dated as of August 30,
2006 

        AMENDMENT
NO. 6 TO THE CREDIT AGREEMENT (this “Amendment No. 6”)
among Headwaters Incorporated, a Delaware corporation (the
“Borrower”), the Lenders (as defined in the Credit
Agreement referred to below), Morgan Stanley & Co. Incorporated, as collateral agent
(the “Collateral Agent”), and Morgan Stanley Senior
Funding, Inc. (“Morgan Stanley”), as administrative agent
(the “Administrative Agent”; together with the Collateral
Agent, the “Agents”). 

         PRELIMINARY
STATEMENTS:

         (1)       
          The Borrower, certain financial institutions and other persons from time to time
          parties thereto (collectively, the “Lenders”),
          the Agents, JPMorgan Chase Bank, N.A. (as successor to JPMorgan Chase Bank), as
          syndication agent, and Morgan Stanley and J.P. Morgan Securities Inc., as joint
          lead arrangers and joint bookrunners, have entered into that certain Credit
          Agreement dated as of September 8, 2004 (as amended and modified pursuant to
          consents dated November 6, 2004 and December 16, 2004, Amendment No. 2 to the
          Credit Agreement dated March 14, 2005, Amendment No. 3 to the Credit Agreement
          dated May 19, 2005, Amendment No. 4 to the Credit Agreement dated October 26,
          2005 and Amendment No. 5 to the Credit Agreement dated June 27, 2006, the
          “Credit Agreement”; capitalized terms used herein
          but not defined shall be used herein as defined in the Credit Agreement). 

         (2)       
          The Borrower has requested additional Revolving Loan Commitments in a principal
          amount of up to $40,000,000. The Required Lenders are willing to consent to the
          increase in the Revolving Loan Commitments and to amend the Credit Agreement so
          as to permit the inclusion of additional Lenders with Revolving Loan Commitments
          (it being understood that no existing Lender shall be under any obligation to
          provide any portion of the Additional Revolving Loan Commitments referred to
          herein). 

         (3)       
          The Borrower, the Agents and the Lenders have agreed, subject to the terms and
          conditions hereinafter set forth, to amend the Credit Agreement in certain
          additional respects as set forth below. 

        NOW,
THEREFORE, in consideration of the premises and for other good and valuable consideration
(the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby
agree as follows: 

        SECTION
1. Amendment of Credit Agreement. The Credit Agreement is, effective as of the
date hereof and subject to the satisfaction of the conditions precedent set forth in
Section 2 below, hereby amended as follows:  

	 	        (a)
    Section 1.01 is amended by adding in the appropriate alphabetical
order the following new definitions:  

	 	
“‘Additional
Revolving Lender’ means a Person with an Additional Revolving Loan Commitment
pursuant to a Revolving Lender Joinder Agreement, it being understood that an Additional
Revolving Lender may be an existing Lender.” 

	 	
“‘Additional
Revolving Loan Commitment’ means, with respect to an Additional Revolving Lender, the
commitment of such Additional Revolving Lender to make Revolving Loans from time to time
after the effective date of its Revolving Lender Joinder Agreement, in an amount in US
Dollars set forth next to the name of such Additional Revolving Lender on the Commitment
Schedule to its Revolving Lender Joinder Agreement. The aggregate amount of the Additional
Revolving Loan Commitments shall not exceed Forty Million and 00/100 Dollars
($40,000,000).” 

	 	
“‘Revolving
Lender Joinder Agreement’ means an agreement in substantially the form of Exhibit
I.” 

	 	        (b)
                    Section 1.01 is further amended as follows:  

	 	        (i)
 Clause (v) of the definition of “Consolidated Funded Indebtedness” is
                    amended and restated in its entirety to read as follows:  

	 	
“(v)
                  Contingent Obligations (A) in
respect of any of the Indebtedness described in           the foregoing clauses (i),
(ii), (iii) and (iv), (B) resulting from any           Investment made under Section
6.13.4 or (C) consisting of the amount of any           obligation secured by a Lien
permitted under Section 6.15.19.” 

	 	        (ii)
 The definition of “Exempt Property” is amended by (A) substituting for
                    the word “and” where it appears immediately before clause
(iv) of such                     definition a comma and (B) inserting at the end of such
definition the                     following: “and (v) at any time, property that at
such time is subject to a                     Lien permitted under Section 6.15.19".  

	 	        (iii)
 The definition of “Investment” is amended and restated in its entirety
                    to read as follows:  

	  	
“‘Investment’of
a Person means any loan, advance (other than commission, travel and similar advances to
officers, employees made in the ordinary course of business), extension of credit (other
than Receivables arising in the ordinary course of business) or contribution of capital
by such Person; stocks, bonds, mutual funds, partnership interests, notes, debentures or
other securities owned by such Person; any deposit accounts and certificate of deposit
owned by such Person; structured notes, derivative financial instruments and other
similar instruments or contracts owned by such Person; and, in the case of any JV Entity
at any time, includes in any event (x) the amount of any Contingent Obligations incurred
by the Borrower in respect of such JV Entity unless such Contingent Obligations have been
released or terminated (without any payment being made in respect thereof) at such time
and (y) the amount of any obligation (contingent or otherwise) of a JV Entity secured by
a Lien permitted under Section 6.15.19, unless recourse to Headwaters and its
Subsidiaries is limited to the ownership interests in such JV Entity.” 

	  	        (iv)
      The definition of “JV Subsidiary” is amended and
restated in its entirety to read as follows:  

	  	
“‘JV
Subsidiary’ means (i) Blue Flint Ethanol LLC formed on June 3, 2005 and (ii) any
Person formed or invested in by the Borrower or one of its Subsidiaries after October 26,
2005 pursuant to Section 6.13.4.” 

2 

	  	        (v)
 The definition of “JV Subsidiary Holding Company” is amended and
                    restated in its entirety to read as follows:  

	  	
“‘JV
Subsidiary Holding Company’ means each direct or indirect Subsidiary of the Borrower
that holds the Equity Interests in a JV Subsidiary in accordance with Section 6.31 and
that does not own any assets other than (i) Equity Interests in one or more JV
Subsidiaries, (ii) cash and deposit and securities accounts held for the purpose of
funding future Investments in the relevant JV Subsidiary and (iii) contracts and contract
rights related to its investment in the relevant JV Subsidiary.” 

	  	        (vi)
    The definition of “Lenders” is amended and restated in
its entirety to           read as follows:  

	  	
“‘Lenders’means
the Initial Lenders and their respective successors and assigns, each Additional Term B1
Lender and its respective successors and assigns, and each Additional Revolving Lender
and its respective successors and assigns. Unless otherwise specified, the term “Lenders” includes
the Swing Line Lender and each LC Issuer, but in no event shall the term “Lender” include
Bank One.” 

	  	        (vii)
              The definition of “Revolving Loan Commitment” is
amended and restated           in its entirety to read as follows:   

	  	
“Revolving
Loan Commitment” means, for each Lender, including, without limitation, each LC
Issuer and each Additional Revolving Lender, such Lender’s obligation to make
Revolving Loans to, and participate in Facility LCs issued upon the application of, the
Borrower in an aggregate amount not exceeding the amount set forth for such Lender on the
Commitment Schedule or Commitment Schedule to its Revolving Lender Joinder Agreement or
in any Assignment Agreement delivered pursuant to Section 12.3, as such amount may be
modified from time to time pursuant to the terms hereof.” 

	  	        (c)
               Section 6.13.4 is amended by deleting the figure “$85,000,000” where
               it appears in subsection (a) thereof and replacing such deleted figure
with the                following: “$100,000,000".  

	  	        (d)
               The following new Section 6.14.13 is added to Article VI in the
appropriate                numerical order:  

	  	
“Contingent
Obligations consisting of Investments permitted under Section 6.13.4.” 

	 	        (e)
     The following new Section 6.14.14 is added to Article VI in
the appropriate numerical order:  

	  	
“Contingent
Obligations permitted under Section 6.19.” 

	 	        (f)              The
following new Section 6.15.19 is added to Article VI in the appropriate
          numerical order:  

	  	
“Liens
on assets constituting all or any part of, or created or acquired to facilitate, an
Investment made pursuant to Section 6.13.4 (including the relevant joint venture
interests, joint venture agreement and cash deposits to secure future equity
contributions) securing obligations of the relevant JV Subsidiary.” 

3 

	 	        (g)              Section
6.19 is amended and restated in its entirety to read as follows:  

	  	
“Contingent
Obligations. The Borrower will not, nor will it permit any Subsidiary to, make or
suffer to exist any Contingent Obligation (including, without limitation, any Contingent
Obligation with respect to the obligations of a Subsidiary), except (i) the Reimbursement
Obligations, (ii) any guaranty of the Secured Obligations, (iii) any guaranty pursuant to
any of the Subordinated Indebtedness Documents, (iv) any guaranty of any Indebtedness
permitted by Section 6.14 or (v) any Contingent Obligation incurred in connection with
Investments permitted under Section 6.13.4.” 

	 	        (h)
               Section 6.23 is amended by deleting in its entirety the table set forth
therein                and replacing such deleted table with the following:  

                        For fiscal year:                                        Capital Expenditures
                        2005                                                    $62,000,000
                        2006                                                    $80,000,000
                        2007 and each year thereafter                           $100,000,000

	 	        (i)
               Section 6.26(a) is amended by amending and restating in its entirety the
first                sentence thereof to read as follows:  

	  	
“(a)
       Subject to the exceptions set forth in this
Section 6.26, the Borrower will           cause, and will cause each other Credit Party
to cause, all of its owned           Property whether now or hereafter acquired (other
than Exempt Property) to be           subject at all times to first priority perfected
Liens in favor of the           Administrative Agent for the benefit of the Holders of
Secured Obligations to           secure the Secured Obligations in accordance with the
terms and conditions of           the Collateral Documents, subject in any case to Liens
permitted by Section 6.15           hereof.” 

	 	        (j)
               Section 6.33 is amended by amending and restating in its entirety the
               introductory paragraph thereof to read as follows:  

	  	
“JV
Entities Separateness. The Borrower shall use its commercially reasonable efforts to
enter into joint ventures only on terms that comply, and that permit the Borrower to
cause each of its Subsidiaries and each JV Entity to comply, with the following (provided,
that if such terms are not available from the relevant joint venture parties after the
Borrower’s use of commercially reasonable efforts, then (x) the Borrower shall
nevertheless, in any event, comply with Section 6.31 and (y) all obligations of any JV
Entity for which the Borrower or one of its Subsidiaries becomes liable shall constitute
Investments for the purposes of Section 6.13.4 and shall be treated as Consolidated
Funded Indebtedness as provided in the definition thereof):" 

4 

	 	        (k)              Article
XII is amended by adding in the appropriate numerical order the           following new
Section 12.6:  

	  	
“12.6
Additional Revolving Loan Commitments. 

	  	
12.6.1.
       Joinder of Additional Revolving Lenders.
The Borrower and each           Additional Revolving Lender hereby agrees that from and
after the effective date           of such Additional Revolving Lender’s Revolving
Lender Joinder Agreement,           such Additional Revolving Lender shall be a “Lender” for
all purposes           under the Credit Agreement.  

	  	
12.6.2.
       Outstanding Revolving Loans. To the
extent any Revolving Loans are           outstanding immediately prior to the effective
date of any Revolving Lender           Joinder Agreement, each of the Lenders under such
Revolving Loans and each           Additional Revolving Lender hereby agrees to execute
any assignment pursuant to           Section 12.3 of the Credit Agreement which is
required to maintain the Pro Rata           Share of the Revolving Loan Commitment of
each Lender under each such Revolving           Loan in the same proportion immediately
before and after such effective           date.” 

	 	        (l)
               The form of Revolving Lender Joinder Agreement attached as Exhibit A
hereto is                attached to the Credit Agreement as Exhibit I thereto.  

        SECTION 2.
Conditions to Effectiveness. This Amendment No. 6 and the amendments contained
herein shall become effective as of the date hereof (the “Amendment No. 6
Effective Date”) when each of the conditions set forth in this
Section 2 to this Amendment No. 6 shall have been fulfilled to the satisfaction of the
Administrative Agent.  

          	 	(a) 	
               Execution of Counterparts. The Administrative Agent shall have received
               counterparts of this Amendment No. 6, duly executed and delivered on behalf of
               the Borrower and the Required Lenders, or, as to any of the foregoing parties,
               advice reasonably satisfactory to the Administrative Agent that such party has
               executed a counterpart of this Amendment No. 6. 

               

          	 	(b) 	
               Guarantor Consent. The Administrative Agent shall have received the
               Consent attached as Exhibit B hereto duly executed by each of the Guarantors. 

               

          	 	(c) 	
               Payment of Fees and Expenses. The Borrower shall have paid (i) an
               amendment fee of 5 basis points for the account of each Lender that executes and
               delivers this Amendment No. 6 at or before 5:00 P.M. (New York City time) on
               August 30, 2006 (calculated on the outstanding principal amounts owed to such
               Lender under its respective outstanding Loans and Commitments), subject to
               successful achievement of the Amendment No. 6 Effective Date, and (ii) all
               reasonable expenses (including the reasonable fees and expenses of Shearman
               & Sterling LLP) incurred in connection with the preparation, negotiation and
               execution of this Amendment No. 6 and other matters relating to the Credit
               Agreement from and after the last invoice to the extent invoiced. 

               

          	 	(d) 	
               Corporate Documents. The Administrative Agent shall have received: 

               

	(i)		certified
copies of the resolutions of the Board of Directors of the Borrower                and
each Guarantor approving this Amendment No. 6 and the Additional Revolving
               Commitments, and of all documents evidencing other necessary corporate
action                and governmental and other third party approvals and consents, if
any, with                respect to this Amendment No. 6 and the Additional Revolving
Commitments;  

5 

	(ii)  	  	a
copy of a certificate of the Secretary of State of the jurisdiction of
               incorporation of the Borrower, dated reasonably near the proposed
Amendment No.                6 Effective Date, certifying (A) as to a true and correct
copy of the charter of                the Borrower and each amendment thereto on file in
such Secretary’s office                and (B) that (1) such amendments are the only
amendments to the Borrower’s                charter on file in such Secretary’s
office, (2) the Borrower has paid all                franchise taxes to the date of such
certificate and (3) the Borrower is duly                incorporated and in good standing
or presently subsisting under the laws of the                State of the jurisdiction of
its incorporation;  

	(iii)  	  	a
certificate of the Borrower signed on behalf of the Borrower by its President
               or a Vice President and its Secretary or any Assistant Secretary, dated
the date                hereof (the statements made in which certificate shall be true on
and as of the                date hereof), certifying (A) that there have been no
amendments to the charter                of the Borrower since the date of the Secretary
of State’s certificate                referred to in Section 2(d)(ii) above, (B) a
true and correct copy of the bylaws                of the Borrower as in effect on the
date on which the resolutions referred to in                Section 2(d)(i) above were
adopted and on the date hereof, (C) the due                incorporation and good
standing or valid existence of the Borrower as a                corporation organized
under the laws of the jurisdiction of its incorporation,                and the absence
of any proceeding for the dissolution or liquidation of the                Borrower, (D)
the truth and correctness, in all material respects, of the
               representations and warranties contained in the Credit Agreement on and as
of                the date hereof, before and after giving effect to this Amendment No.
6, as                though made on and as of the date hereof, other than any such
representations or                warranties that, by their terms, refer to a specific
date, and (E) that no                Default or Unmatured Default has occurred and is
continuing, or would occur as a                result of the transactions contemplated by
this Amendment No. 6; and  

	(iv)  	  	a
certificate of the Secretary or an Assistant Secretary of the Borrower
               certifying the names and true signatures of the officers of the Borrower
and                each Guarantor authorized to sign this Amendment No. 6 or the Consent,
as                applicable.  

          	 	(e) 	
               Legal Opinion. The Administrative Agent shall have received a favorable
               opinion of the General Counsel of the Borrower, in substantially the form of
               Exhibit C hereto and as to such other matters as any Lender Party through the
               Administrative Agent may reasonably request. 

               

        SECTION 3.
Reference to and Effect on the Loan Documents. (a) On and after the
Amendment No. 6 Effective Date, each reference in the Credit Agreement to “hereunder”,
“hereof” or words of like import referring to the Credit Agreement, and
each reference in the other transaction documents to the “Credit Agreement”,
“thereunder”, “thereof” or words of like import
referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement
as modified by this Amendment No. 6.  

          	 	(b) 	
               The Credit Agreement, the Pledge and Security Agreement, the Notes and each of
               the other Loan Documents, as specifically amended by this Amendment No. 6, are
               and shall continue to be in full force and effect and are hereby in all respects
               ratified and confirmed. Without limiting the generality of the foregoing, the
               Collateral Documents and all of the Collateral described therein do and shall
               continue to secure the payment of all Obligations of the Credit Parties under
               the Loan Documents, in each case as amended by this Amendment No. 6. 

               

6 

          	 	(c) 	
               The execution, delivery and effectiveness of this Amendment No. 6 shall not,
               except as expressly provided herein, operate as a waiver of any right, power or
               remedy of any Lender or any Agent under any of the Loan Documents, nor
               constitute a waiver of any provision of any of the Loan Documents. 

               

        SECTION 4.
Execution in Counterparts. This Amendment No. 6 may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when
so executed shall be deemed to be an original and all of which taken together shall
constitute but one and the same agreement. Delivery of an executed counterpart of a
signature page to this Amendment No. 6 by facsimile shall be effective as delivery of a
manually executed original counterpart of this Amendment No. 6.  

        SECTION 5.
Governing Law. This Amendment No. 6 shall be governed by, and construed in
accordance with, the laws of the State of New York, and shall be subject to the
jurisdictional and service provisions of the Credit Agreement, as if this were a part of
the Credit Agreement.  

        SECTION 6.
Release of Collateral. The Required Lenders hereby consent to the release of
assets currently constituting part of the Collateral that are to be subject to a lien
permitted under Section 6.15.19 of the Credit Agreement, as amended by this Amendment No.
6, and hereby authorize the Administrative Agent and the Collateral Agent to execute and
deliver in accordance with the Loan Documents any documentation to evidence such release.  

        SECTION
7. Entire Agreement; Modification. This Amendment No. 6 constitutes the entire
agreement of the parties hereto with respect to the subject matter hereof, there being no
other agreements or understandings, oral, written or otherwise, respecting such subject
matter, any such agreement or understanding being superseded hereby, shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and
assigns, and may not be amended, extended or otherwise modified, except in a writing
executed in whole or in counterparts by each party hereto.  

[SIGNATURE PAGES
FOLLOW]  

7 

        IN
WITNESS WHEREOF, the parties hereto have caused this Amendment No. 6 to be executed by
their respective officers thereunto duly authorized, as of the date first above written. 

                                                     HEADWATERS INCORPORATED,
                                                            as Borrower

                                                     By:    /s/ Scott K. Sorensen
                                                            Title: Chief Financial Officer

                                                     MORGAN STANLEY SENIOR FUNDING, INC.,
                                                       as Administrative Agent, Swing Line Lender
                                                       and as a Lender

                                                     By:    /s/ Whitner H. Marshall
                                                            Title: Vice President

                                                     MORGAN STANLEY & CO. INCORPORATED,
                                                       as Collateral Agent

                                                     By:    /s/ Whitner H. Marshall
                                                            Title: Managing Director

                                                     [and other lenders]

EXHIBIT B 

CONSENT 

Dated as of August 30,
2006 

        Reference
is made to the Credit Agreement referred to in the foregoing Amendment No. 6 (capitalized
terms used herein and not defined being used herein as defined in the Credit Agreement).
Each of the undersigned, in its capacity as a Guarantor under the Guaranty Agreement and
as a Grantor under the Pledge and Security Agreement, hereby (i) consents to the
execution, delivery and performance of Amendment No. 6 and agrees that each of the
Guaranty Agreement and the Pledge and Security Agreement is, and shall continue to be, in
full force and effect and is hereby in all respects ratified and confirmed on the
Amendment No. 6 Effective Date, except that, on and after the Amendment No. 6 Effective
Date, each reference to “the Credit Agreement”,
“thereunder”, “thereof”, “therein” or
words of like import referring to the Credit Agreement shall mean and be a reference to
the Credit Agreement as amended and otherwise modified by Amendment No. 6 and (ii)
confirms that the Collateral Documents to which each of the undersigned is a party and all
of the Collateral described therein do, and shall continue to, secure the payment of all
of the Secured Obligations. 

ATLANTIC SHUTTER SYSTEMS, INC.;             HEADWATERS RESOURCES, INC.;
BEST MASONRY & TOOL SUPPLY, LP              HEADWATERS SYNFUEL INVESTMENTS, LLC;
BUILDERS EDGE, INC.;                        HEADWATERS TECHNOLOGY INNOVATION GROUP, INC.;
CHIHUAHUA STONE LLC;                        HYDROCARBON TECHNOLOGIES, INC.;
COMACO, INC.;                               HEADWATERS SERVICES CORPORATION;
COVOL COAL COMPANY, LLC;                    L&S STONE LLC;
COVOL ENGINEERED FUELS, LC;                 L-B STONE LLC;
COVOL SERVICES CORPORATION;                 METAMORA PRODUCTS CORPORATION;
DON'S BUILDING SUPPLY, LP                   METAMORA PRODUCTS CORPORATION OF ELKLAND;
EAGLE STONE & BRICK LLC;                    MTP, INC.;
ELDORADO G-ACQUISITION CO.;                 NORTHWEST STONE & BRICK LLC;
ELDORADO SC-ACQUISITION CO.;                PALESTINE CONCRETE TILE COMPANY, L.P.;
ELDORADO STONE ACQUISITION CO., LC;         STONECRAFT INDUSTRIES LLC;
ELDORADO STONE FUNDING CO., LLC;            SYNDECRETE LLC;
ELDORADO STONE LLC;                         TAPCO HOLDINGS, INC.,
ELDORADO STONE OPERATIONS LLC;              TAPCO INTERNATIONAL CORPORATION;
ENVIRONMENTAL TECHNOLOGIES GROUP, LLC;      TEMPE STONE LLC
GLOBAL CLIMATE RESERVE CORPORATION;         VANTAGE BUILDING PRODUCTS CORPORATION;
HCM BLOCK & BRICK GENERAL, INC.;            VFL TECHNOLOGY CORPORATION;
HCM BLOCK & BRICK PARTNER, LLC;             WAMCO CORPORATION
HCM BLOCK & BRICK, LLC;
HCM FLEXCRETE, LP;
HCM MORTAR & STUCCO PARTNER, LLC;           each as a Guarantor
HCM MORTAR & STUCCO, INC.;
HCM MORTAR & STUCCO HOLDING, LLC;
HCM STONE, LLC;                             By: /s/ Scott K. Sorensen
HCM UTAH, INC.;                                Name: Scott K. Sorensen
HEADWATERS CONSTRUCTION MATERIALS, INC.;       Title: Chief Financial Officer
HEADWATERS ENERGY SERVICES CORP.;
HEADWATERS ETHANOL OPERATORS, LLC;
HEADWATERS HEAVY OIL, LLC;
HEADWATERS NANOKINETIX, INC.;

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]