Document:

Exhibit 4.4

EXECUTION COPY

Texas Industries, Inc.

7.25% SENIOR NOTES DUE 2013

Indenture

Dated as of July 6, 2005

Wells Fargo Bank, National Association

Trustee

CROSS-REFERENCE TABLE*

	
  
Trust Indenture Act Section
  	
   
 	
  
Indenture   Section
  
	
  

  	
   
 	
  

  
	
  310
  	
  
(a)(1)
  	
  
 
  	
  
   7.10
  
	
   
 	
  
(a)(2)
  	
  
 
  	
  
   7.10
  
	
   
 	
  
(a)(3)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(a)(4)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(a)(5)
  	
  
 
  	
  
   7.10
  
	
   
 	
  
(b)
  	
  
 
  	
  
   7.10
  
	
   
 	
  (c)
  	
  
 
  	
  
   N.A.
  
	
  
311
  	
  
(a)
  	
  
 
  	
  
   7.11
  
	
   
 	
  
(b)
  	
  
 
  	
  
   7.11
  
	
   
 	
  
(c)
  	
  
 
  	
  
   N.A.
  
	
  
312
  	
  
(a)
  	
  
 
  	
  
   2.06
  
	
   
 	
  
(b)
  	
  
 
  	
  
   12.03
  
	
   
 	
  (c)
  	
  
 
  	
  
   12.03
  
	
  
313
  	
  
(a)
  	
  
 
  	
  
   7.06
  
	
   
 	
  
(b)(1)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(b)(2)
  	
  
 
  	
  
   7.06,   7.07
  
	
   
 	
  
(c)
  	
  
 
  	
  
   7.06,   12.02
  
	
   
 	
  
(d)
  	
  
 
  	
  
   7.06
  
	
  314
  	
  
(a)
  	
  
 
  	
  
   12.05
  
	
   
 	
  
(b)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(c)(1)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(c)(2)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(c)(3)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(d)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  (e)
  	
  
 
  	
  
   12.05
  
	
   
 	
  
(f)
  	
  
 
  	
  
   N.A.
  
	
  
315
  	
  
(a)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(b)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(c)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(d)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  (e)
  	
  
 
  	
  
   N.A.
  
	
  
316
  	
  
(a) (last   sentence)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(a)(1)(A)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(a)(1)(B)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(a)(2)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(b)
  	
  
 
  	
  
   N.A.
  

	
  

  
	
  
N.A. means   not applicable.
  
	
  
*This   Cross-Reference Table is not part of the Indenture.
  

	
   
 	
  
(c)
  	
  
 
  	
  
   12.14
  
	
  
317
  	
  
(a)(1)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(a)(2)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  (b)
  	
  
 
  	
  
   N.A.
  
	
  
318
  	
  
(a)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(b)
  	
  
 
  	
  
   N.A.
  
	
   
 	
  
(c)
  	
  
 
  	
  
   12.01
  

TABLE OF CONTENTS

	
   
 	
   
 	
   
 	
  
Page
  
	
   
 	
   
 	
   
 	
  

  
	
  ARTICLE ONE
  
	
  
DEFINITIONS AND INCORPORATION
  
	
  
BY REFERENCE
  
	
   
 
	
  
Section   1.01.
  	
  
Definitions
  	
  
 
  	
  
1
  
	
  
Section   1.02.
  	
  
Other   Definitions
  	
  
 
  	
  
27
  
	
  
Section   1.03. 
  	
  
Incorporation   by Reference of Trust Indenture Act
  	
  
 
  	
  
28
  
	
  
Section   1.04. 
  	
  
Rules of   Construction
  	
  
 
  	
  
28
  
	
   
  	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE TWO
  
	
  
THE NOTES
  
	
   
 
	
  
Section   2.01. 
  	
  
Form and   Dating
  	
  
 
  	
  
29
  
	
  
Section   2.02. 
  	
  
Execution   and Authentication
  	
  
 
  	
  
30
  
	
  
Section   2.03. 
  	
  
Methods of   Receiving Payments on the Notes
  	
  
 
  	
  
31
  
	
  
Section   2.04. 
  	
  
Registrar   and Paying Agent
  	
  
 
  	
  
31
  
	
  Section   2.05. 
  	
  
Paying Agent   to Hold Money in Trust
  	
  
 
  	
  
31
  
	
  
Section   2.06. 
  	
  
Holder Lists
  	
  
 
  	
  
32
  
	
  
Section   2.07. 
  	
  
Transfer and   Exchange
  	
  
 
  	
  
32
  
	
  
Section   2.08. 
  	
  
Replacement   Notes
  	
  
 
  	
  
44
  
	
  
Section   2.09. 
  	
  
Outstanding   Notes
  	
  
 
  	
  
44
  
	
  
Section   2.10. 
  	
  
Treasury   Notes
  	
  
 
  	
  
45
  
	
  Section   2.11. 
  	
  
Temporary   Notes
  	
  
 
  	
  
45
  
	
  
Section   2.12. 
  	
  
Cancellation
  	
  
 
  	
  
45
  
	
  
Section   2.13. 
  	
  
Defaulted   Interest
  	
  
 
  	
  
45
  
	
  
Section   2.14. 
  	
  
CUSIP   Numbers
  	
  
 
  	
  
46
  
	
  
 
  	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE THREE
  
	
  
REDEMPTION AND OFFERS TO
  
	
  PURCHASE
  
	
   
 
	
  
Section   3.01. 
  	
  
Notices to   Trustee
  	
  
 
  	
  
46
  
	
  
Section   3.02. 
  	
  
Selection of   Notes to Be Redeemed
  	
  
 
  	
  
46
  
	
  
Section   3.03. 
  	
  
Notice of   Redemption
  	
  
 
  	
  
46
  
	
  
Section   3.04. 
  	
  
Effect of   Notice of Redemption
  	
  
 
  	
  
47
  
	
  
Section   3.05. 
  	
  
Deposit of   Redemption Price
  	
  
 
  	
  
47
  
	
  Section   3.06. 
  	
  
Notes   Redeemed in Part
  	
  
 
  	
  
48
  
	
  
Section   3.07. 
  	
  
Optional   Redemption
  	
  
 
  	
  
48
  
	
  
Section   3.08. 
  	
  
Repurchase   Offers
  	
  
 
  	
  
49
  
	
  
Section   3.09. 
  	
  
Application   of Trust Money
  	
  
 
  	
  
51
  

	
  
ARTICLE FOUR
  
	
  COVENANTS
  
	
   
 
	
  
Section   4.01. 
  	
  
Payment of   Notes
  	
  
 
  	
  
51
  
	
  
Section   4.02. 
  	
  
Maintenance   of Office or Agency
  	
  
 
  	
  
51
  
	
  
Section   4.03. 
  	
  
Reports
  	
  
 
  	
  
52
  
	
  
Section   4.04. 
  	
  
Compliance   Certificate
  	
  
 
  	
  
52
  
	
  
Section   4.05. 
  	
  
Taxes
  	
  
 
  	
  
53
  
	
  Section   4.06. 
  	
  
Stay,   Extension and Usury Laws
  	
  
 
  	
  
53
  
	
  
Section   4.07. 
  	
  
Restricted   Payments
  	
  
 
  	
  
53
  
	
  
Section   4.08. 
  	
  
Dividend and   Other Payment Restrictions Affecting Restricted Subsidiaries
  	
  
 
  	
  
57
  
	
  
Section   4.09. 
  	
  
Incurrence   of Indebtedness and Issuance of Preferred Stock
  	
  
 
  	
  
58
  
	
  
Section   4.10. 
  	
  
Asset Sales
  	
  
 
  	
  
60
  
	
  Section   4.11. 
  	
  
Transactions   with Affiliates
  	
  
 
  	
  
62
  
	
  
Section   4.12. 
  	
  
Liens
  	
  
 
  	
  
64
  
	
  
Section   4.13. 
  	
  
Business   Activities
  	
  
 
  	
  
64
  
	
  
Section   4.14. 
  	
  
Offer to   Repurchase upon a Change of Control
  	
  
 
  	
  
64
  
	
  
Section   4.15. 
  	
  
Limitation   on Issuances and Sales of Equity Interests in Restricted Subsidiaries
  	
  
 
  	
  
65
  
	
  
Section   4.16. 
  	
  
Designation   of Restricted and Unrestricted Subsidiaries
  	
  
 
  	
  
65
  
	
  Section   4.17. 
  	
  
Payments for   Consent
  	
  
 
  	
  
67
  
	
  
Section   4.18. 
  	
  
Guarantees
  	
  
 
  	
  
67
  
	
  
Section   4.19. 
  	
  
Sale and   Leaseback Transactions
  	
  
 
  	
  
68
  
	
  
Section   4.20. 
  	
  
[INTENTIONALLY   OMITTED]
  	
  
 
  	
  
68
  
	
  
Section   4.21. 
  	
  
Suspension   of Certain Covenants and Agreements
  	
  
 
  	
  
68
  
	
  
 
  	
  
 
  	
  
 
  	
   
 
	
  ARTICLE FIVE
  
	
  
SUCCESSORS
  
	
   
 
	
  
Section   5.01. 
  	
  
Merger,   Consolidation or Sale of Assets
  	
  
 
  	
  
69
  
	
  
Section   5.02. 
  	
  
Successor   Corporation Substituted
  	
  
 
  	
  
70
  
	
  
 
  	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE SIX
  
	
  
DEFAULTS AND REMEDIES
  
	
   
 
	
  
Section   6.01. 
  	
  
Events of   Default
  	
  
 
  	
  
70
  
	
  Section   6.02. 
  	
  
Acceleration
  	
  
 
  	
  
72
  
	
  
Section   6.03. 
  	
  
Other   Remedies
  	
  
 
  	
  
72
  
	
  
Section   6.04. 
  	
  
Waiver of   Past Defaults
  	
  
 
  	
  
72
  
	
  
Section   6.05. 
  	
  
Control by   Majority
  	
  
 
  	
  
73
  
	
  
Section   6.06. 
  	
  
Limitation   on Suits
  	
  
 
  	
  
73
  
	
  
Section   6.07. 
  	
  
Rights of   Holders of Notes to Receive Payment
  	
  
 
  	
  
74
  
	
  Section   6.08. 
  	
  
Collection   Suit by Trustee
  	
  
 
  	
  
74
  
	
  
Section   6.09. 
  	
  
Trustee May   File Proofs of Claim
  	
  
 
  	
  
74
  
	
  
Section   6.10. 
  	
  
Priorities
  	
  
 
  	
  
75
  
	
  
Section   6.11. 
  	
  
Undertaking   for Costs
  	
  
 
  	
  
75
  

ii

	
  ARTICLE SEVEN
  
	
  
TRUSTEE
  
	
  
Section   7.01. 
  	
  
Duties of   Trustee
  	
  
 
  	
  
76
  
	
  
Section   7.02. 
  	
  
Certain   Rights of Trustee
  	
  
 
  	
  
77
  
	
  
Section   7.03. 
  	
  
Individual   Rights of Trustee
  	
  
 
  	
  
77
  
	
  
Section   7.04. 
  	
  
Trustee’s   Disclaimer
  	
  
 
  	
  
78
  
	
  
Section   7.05. 
  	
  
Notice of   Defaults
  	
  
 
  	
  
78
  
	
  Section   7.06. 
  	
  
Reports by   Trustee to Holders of the Notes
  	
  
 
  	
  
78
  
	
  
Section 7.07.   
  	
  
Compensation   and Indemnity
  	
  
 
  	
  
78
  
	
  
Section   7.08. 
  	
  
Replacement   of Trustee
  	
  
 
  	
  
79
  
	
  
Section   7.09. 
  	
  
Successor   Trustee by Merger, Etc
  	
  
 
  	
  
80
  
	
  
Section   7.10. 
  	
  
Eligibility;   Disqualification
  	
  
 
  	
  
80
  
	
  
Section   7.11. 
  	
  
Preferential   Collection of Claims Against Company
  	
  
 
  	
  
80
  
	
   
  	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE EIGHT
  
	
  
DEFEASANCE AND COVENANT DEFEASANCE
  
	
   
 
	
  
Section   8.01. 
  	
  
Option to   Effect Legal Defeasance or Covenant Defeasance
  	
  
 
  	
  
81
  
	
  
Section   8.02. 
  	
  
Legal   Defeasance and Discharge
  	
  
 
  	
  
81
  
	
  
Section   8.03. 
  	
  
Covenant   Defeasance
  	
  
 
  	
  
81
  
	
  
Section   8.04. 
  	
  
Conditions   to Legal or Covenant Defeasance
  	
  
 
  	
  
82
  
	
  Section   8.05. 
  	
  
Deposited   Money and Government Securities to Be Held in Trust; Other Miscellaneous   Provisions
  	
  
 
  	
  
83
  
	
  
Section   8.06. 
  	
  
Repayment to   the Company
  	
  
 
  	
  
84
  
	
  
Section   8.07. 
  	
  
Reinstatement
  	
  
 
  	
  
84
  
	
  
 
  	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE NINE
  
	
  
AMENDMENT, SUPPLEMENT AND WAIVER
  
	
   
 
	
  
Section   9.01. 
  	
  
Without   Consent of Holders of Notes
  	
  
 
  	
  
85
  
	
  Section   9.02. 
  	
  
With Consent   of Holders of Notes
  	
  
 
  	
  
85
  
	
  
Section   9.03. 
  	
  
Compliance   with Trust Indenture Act
  	
  
 
  	
  
87
  
	
  
Section   9.04. 
  	
  
Revocation   and Effect of Consents
  	
  
 
  	
  
87
  
	
  
Section   9.05. 
  	
  
Notation on   or Exchange of Notes
  	
  
 
  	
  
88
  
	
  
Section   9.06. 
  	
  
Trustee to   Sign Amendments, Etc.
  	
  
 
  	
  
88
  
	
  
 
  	
  
 
  	
  
 
  	
   
 
	
  ARTICLE TEN
  
	
  
NOTE GUARANTEES
  
	
   
 
	
  
Section   10.01. 
  	
  
Guarantee
  	
  
 
  	
  
88
  
	
  
Section   10.02. 
  	
  
Limitation   on Guarantor Liability
  	
  
 
  	
  
89
  
	
  
Section   10.03. 
  	
  
Execution   and Delivery of Note Guarantee
  	
  
 
  	
  
90
  
	
  
Section   10.04. 
  	
  
Guarantors   May Consolidate, Etc., on Certain Terms
  	
  
 
  	
  
90
  
	
  
Section   10.05. 
  	
  
Release of   Guarantor
  	
  
 
  	
  
91
  

iii

	
  
ARTICLE ELEVEN
  
	
  
SATISFACTION AND DISCHARGE
  
	
   
 
	
  
Section   11.01. 
  	
  
Satisfaction   and Discharge
  	
  
 
  	
  
91
  
	
  
Section   11.02. 
  	
  
Deposited   Money and Government Securities to Be Held in Trust; Other Miscellaneous   Provisions
  	
  
 
  	
  
92
  
	
  
Section   11.03. 
  	
  
Repayment to   the Company
  	
  
 
  	
  
93
  
	
   
  	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE TWELVE
  
	
  
MISCELLANEOUS
  
	
   
 
	
  
Section   12.01. 
  	
  
Trust   Indenture Act Controls
  	
  
 
  	
  
93
  
	
  
Section 12.02.   
  	
  
Notices
  	
  
 
  	
  
93
  
	
  
Section   12.03. 
  	
  
Communication   by Holders of Notes with Other Holders of Notes
  	
  
 
  	
  
94
  
	
  
Section   12.04. 
  	
  
Certificate   and Opinion as to Conditions Precedent
  	
  
 
  	
  
94
  
	
  Section   12.05. 
  	
  
Statements   Required in Certificate or Opinion
  	
  
 
  	
  
95
  
	
  
Section   12.06. 
  	
  
Rules by   Trustee and Agents
  	
  
 
  	
  
95
  
	
  
Section   12.07. 
  	
  
No Personal   Liability of Directors, Officers, Employees and Stockholders
  	
  
 
  	
  
95
  
	
  
Section   12.08. 
  	
  
Governing   Law
  	
  
 
  	
  
95
  
	
  
Section   12.09. 
  	
  
Consent to   Jurisdiction
  	
  
 
  	
  
96
  
	
  
Section   12.10. 
  	
  
No Adverse   Interpretation of Other Agreements
  	
  
 
  	
  
96
  
	
  Section   12.11. 
  	
  
Successors
  	
  
 
  	
  
96
  
	
  
Section   12.12. 
  	
  
Severability
  	
  
 
  	
  
96
  
	
  
Section   12.13. 
  	
  
Counterpart   Originals
  	
  
 
  	
  
96
  
	
  
Section   12.14. 
  	
  
Acts of   Holders
  	
  
 
  	
  
96
  
	
  
Section   12.15. 
  	
  
Benefit of   Indenture
  	
  
 
  	
  
98
  
	
  
Section   12.16. 
  	
  
Table of   Contents, Headings, Etc.
  	
  
 
  	
  
98
  
	
   
  	
  
 
  	
  
 
  	
   
 
	
  
EXHIBITS
  
	
   
 
	
  
Exhibit A
  	
  
FORM OF NOTE
  	
  
 
  	
   
 
	
   
  	
  
 
  	
  
 
  	
   
 
	
  
Exhibit B
  	
  
FORM OF   CERTIFICATE OF TRANSFER
  	
  
 
  	
   
 
	
   
  	
  
 
  	
  
 
  	
   
 
	
  
Exhibit C
  	
  
FORM OF   CERTIFICATE OF EXCHANGE
  	
  
 
  	
   
 
	
   
  	
  
 
  	
  
 
  	
   
 
	
  
Exhibit D
  	
  
FORM OF   CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
  	
  
 
  	
   
 
	
   
  	
  
 
  	
  
 
  	
   
 
	
  
Exhibit E
  	
  
FORM OF   NOTATION OF GUARANTEE
  	
  
 
  	
   
 
	
   
  	
  
 
  	
  
 
  	
   
 
	
  Exhibit F
  	
  
FORM OF   SUPPLEMENTAL INDENTURE
  	
  
 
  	
   
 

iv

                    INDENTURE dated as of July 6, 2005 among Texas Industries, Inc., a Delaware corporation (the “Company”), the Initial Guarantors (as defined below) listed on the signature pages hereto and Wells Fargo Bank, National Association, a national banking association, as trustee.

                    The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its 7.25% Senior Notes due 2013 to be issued in one or more series as provided in this Indenture.  The Initial Guarantors have duly authorized the execution and delivery of this Indenture to provide for a guarantee of the Notes and of certain of the Company’s obligations hereunder.  All things necessary to make this Indenture a valid agreement of the Company and the initial Guarantors, in accordance with its terms, have been done.

                    The Company, the Guarantors and the Trustee (as defined below) agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders (as defined below) of the 7.25% Senior Notes due 2013:

ARTICLE ONE
 DEFINITIONS AND INCORPORATION
 BY REFERENCE

Section 1.01.  Definitions.

                    “144A Global Note” means a global note substantially in the form of Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and registered in the name of, the Depositary or its nominee that shall be issued in a denomination equal to the outstanding principal amount at maturity of the Notes sold in reliance on Rule 144A.

                    “Acquired Debt” means, with respect to any specified Person:  (i) Indebtedness of any other Person existing at the time such other Person is merged with or into, or becomes a Subsidiary of, such specified Person, whether or not such Indebtedness is Incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Subsidiary of, such specified Person; and (ii) Indebtedness secured by a Lien encumbering any asset acquired by such specified Person.

                    “Additional Notes” means an unlimited maximum aggregate principal amount of Notes (other than the Notes issued on the date hereof) issued under this Indenture in accordance with Sections 2.02 and 4.09 hereof.

                    “Affiliate” of any specified Person means (1) any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person or (2) any executive officer or director of such specified Person. For purposes of this definition, “control,” as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a Person shall be deemed to be control. For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” shall have
correlative meanings.

                    “Agent” means any Registrar, Paying Agent or co-registrar.

                    “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange.

                    “Asset Sale” means:  

	
  
 
  	
  
          (1)          the   sale, lease, conveyance or other disposition of any property or assets; provided that the sale, conveyance or   other disposition of all or substantially all of the assets of the Company and   its Restricted Subsidiaries taken as a whole shall be governed by Section   4.14 and/or Section 5.01 and not by Section 4.10; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          the   issuance of Equity Interests by any of the Company’s Restricted Subsidiaries   or the sale by the Company or any Restricted Subsidiary of Equity Interests   in any of its Subsidiaries (other than directors’ qualifying shares and   shares issued to foreign nationals to the extent required by applicable law).
  
	
   
  	
  
 
  
	
  
Notwithstanding   the preceding, the following items shall be deemed not to be Asset Sales:
  
	
  
 
  
	
  
 
  	
  
          (1)          any   single transaction or series of related transactions that involves assets   having a Fair Market Value of less than $2.0 million;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          a   transfer of assets between or among the Company and its Restricted   Subsidiaries;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          an   issuance of Equity Interests by a Restricted Subsidiary to the Company or to   another Restricted Subsidiary;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (4)          the   sale or lease of equipment, inventory, accounts receivable or other assets in   the ordinary course of business, including sales of accounts receivable and   related assets under any Qualified Receivables Transaction;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (5)          the   sale or other disposition of Cash Equivalents;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (6)          dispositions   of accounts receivable in connection with the compromise, settlement or   collection thereof in the ordinary course of business or in bankruptcy or   similar proceedings;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (7)          a   Restricted Payment that is permitted by Section 4.07;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (8)          a   Permitted Investment;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (9)          any   sale or disposition of any property or equipment that has become damaged,   worn out or obsolete; and
  

2

	
  
 
  	
  
          (10)        the   creation of a Lien not prohibited by this Indenture.
  

                    “Attributable Debt” in respect of a sale and leaseback transaction means, at the time of determination, the present value of the obligation of the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback transaction, including any period for which such lease has been extended or may, at the option of the lessor, be extended. Such present value shall be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP.

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

                    “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” shall be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition. The terms “Beneficially Owns” and “Beneficially Owned” shall have a corresponding meaning.

                    “Board of Directors” means: 

	
  
 
  	
  
          (1)          with   respect to a corporation, the board of directors of the corporation or,   except in the context of the definitions of “Change of Control” and   “Continuing Directors,” a duly authorized committee thereof;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (2)          with   respect to a partnership, the Board of Directors of the general partner of   the partnership; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          with   respect to any other Person, the board or committee of such Person serving a   similar function.
  

                    “Board Resolution” means a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors of the Company and to be in full force and effect on the date of such certification.

                    “Broker-Dealer” has the meaning set forth in the Registration Rights Agreement.

                    “Business Day” means any day other than a Saturday, a Sunday or other day on which banking institutions in The City of New York or at a place of payment are authorized by law, regulation or executive order to remain closed.

                    “Capital Lease Obligation” means, at the time any determination thereof is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP.

3

                    “Capital
Stock” means:  

	
  
 
  	
  
          (1)          in   the case of a corporation, corporate stock;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          in   the case of an association or business entity, any and all shares, interests,   participations, rights or other equivalents (however designated) of corporate   stock;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          in   the case of a partnership or limited liability company, partnership or   membership interests (whether general or limited); and
  
	
   
  	
  
 
  
	
  
 
  	
  
          (4)          any   other interest or participation that confers on a Person the right to receive   a share of the profits and losses of, or distributions of assets of, the   issuing Person.
  

                    “Cash Equivalents” means:

	
  
 
  	
  
          (1)          United   States dollars;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          securities   issued or directly and fully guaranteed or insured by the United States   government or any agency or instrumentality thereof (provided that the full faith and credit   of the United States is pledged in support thereof) maturing, unless such   securities are deposited to defease any Indebtedness, not more than twelve   months from the date of acquisition;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (3)          certificates   of deposit and eurodollar time deposits with maturities of twelve months or   less from the date of acquisition, bankers’ acceptances with maturities not   exceeding twelve months and overnight bank deposits, in each case, with any   domestic commercial bank having capital and surplus in excess of $500.0   million and a rating at the time of acquisition thereof of P-1 or better from   Moody’s or A-1 or better from S&P;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (4)          repurchase   obligations with a term of not more than seven days for underlying securities   of the types described in clauses (2) and (3) above entered into with any   financial institution meeting the qualifications specified in clause (3)   above;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (5)          commercial   paper having the highest rating obtainable from Moody’s or S&P and in   each case maturing within six months after the date of acquisition;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (6)          auction   rate securities rated with the highest short-term ratings by Moody’s and   S&P, and maturing within 365 days of acquisition;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (7)          securities   issued and fully guaranteed by any state, commonwealth or territory of the   United States of America, or by any political subdivision or taxing authority   thereof, rated at least “A” by Moody’s or S&P and having maturities of   not more than twelve months from the date of acquisition; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (8)          money   market funds at least 95% of the assets of which constitute Cash Equivalents   of the kinds described in clauses (1) through (7) of this definition.
  

4

	
  
 
  	
  
          “Centralized   Cash Management Program” means the program through   which, until the earlier of (a) the distribution of Chaparral Steel Company   to the Company’s shareholders, and (b) the date that is 60 days after the   Issue Date, the Company may (1) sweep cash from Chaparral Steel Company and   its Subsidiaries’ concentration accounts, which shall reduce the TXI Advance;   provided that the amount swept   to the Company shall not exceed the outstanding amount of the TXI Advance, or   (2) make payments to Chaparral Steel Company to the extent required by   Chaparral Steel Company for payments including raw material procurement,   payroll and other working capital requirements and capital expenditures which   shall increase the TXI Advance; provided   that the amount of payments to Chaparral Steel Company shall not increase the   amount of the TXI Advance to an
amount in excess of $50.0 million; provided, however, that upon the earlier   of (a) the distribution of Chaparral Steel Company to the Company’s   shareholders and (b) the date that is 60 days after the Issue Date, the Company   shall contribute the TXI Advance to the capital of Chaparral Steel Company.
  

                    “Change of Control” means the occurrence of any of the following:

	
  
 
  	
  
          (1)          the   direct or indirect sale, transfer, conveyance or other disposition (other   than by way of merger or consolidation), in one or a series of related   transactions, of all or substantially all of the properties or assets of the   Company and its Restricted Subsidiaries, taken as a whole, to any “person”   (as that term is used in Section 13(d)(3) of the Exchange Act);
  
	
   
  	
  
 
  
	
  
 
  	
  
          (2)          the   adoption of a plan relating to the liquidation or dissolution of the Company;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          any   “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of   the Exchange Act) becomes the ultimate Beneficial Owner, directly or   indirectly, of 35% or more of the voting power of the Voting Stock of the   Company;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (4)          the   first day on which a majority of the members of the Board of Directors of the   Company are not Continuing Directors; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (5)          the   Company consolidates with, or merges with or into, any Person, or any Person   consolidates with, or merges with or into the Company, in any such event   pursuant to a transaction in which any of the outstanding Voting Stock of the   Company or such other Person is converted into or exchanged for cash,   securities or other property, other than any such transaction where (A) the   Voting Stock of the Company outstanding immediately prior to such transaction   remains outstanding and constitutes or is converted into or exchanged for   Voting Stock (other than Disqualified Stock) of the surviving or transferee   Person that constitutes a majority of the outstanding shares of such Voting Stock   of such surviving or transferee Person (immediately after giving effect to   such issuance) and (B) immediately after such transaction, no
“person” or   “group” (as such terms are used in Section 13(d) and 14(d) of the Exchange   Act) becomes, directly or indirectly, the beneficial owner (as defined above)   of 35% or more of the voting power of the Voting Stock of the Company.
  

5

                    “Chaparral Steel Company” means Chaparral Steel Company, a Delaware corporation.

                    “Clearstream” means Clearstream Banking, société anonyme, Luxembourg (formerly Cedel Bank, société anonyme), and any successor thereto.

                    “Closing Date” means July 6, 2005.

                    “Common Stock” means, with respect to any Person, any Capital Stock (other than Preferred Stock) of such Person, whether outstanding on the Issue Date or issued thereafter.

                    “Company” means Texas Industries, Inc. until a successor replaces it pursuant to Section 5.01 hereof and thereafter means the successor.

                    “Consolidated Cash Flow” means, with respect to any specified Person for any period, the Consolidated Net Income of such Person for such period plus:

	
  
 
  	
  
          (1)          provision   for taxes based on income or profits of such Person and its Restricted   Subsidiaries for such period, to the extent that such provision for taxes was   deducted in computing such Consolidated Net Income; plus
  
	
   
  	
  
 
  
	
  
 
  	
  
          (2)          Fixed   Charges of such Person and its Restricted Subsidiaries for such period, to   the extent that any such Fixed Charges were deducted in computing such   Consolidated Net Income; plus
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          depreciation,   depletion, amortization (including amortization of goodwill and other intangibles   but excluding amortization of prepaid cash expenses that were paid in a prior   period) and other non-cash expenses (excluding any such non-cash expense to   the extent that it represents an accrual of or reserve for cash expenses in   any future period or amortization of a prepaid cash expense that was paid in   a prior period) of such Person and its Subsidiaries for such period to the   extent that such depreciation, depletion, amortization and other non-cash   expenses were deducted in computing such Consolidated Net Income; plus
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (4)          net   losses of any Unrestricted Subsidiary or any other Person that is not a   Restricted Subsidiary of the Company and is accounted for by the equity   method of accounting, to the extent that such net losses were deducted in   computing such Consolidated Net Income; minus
  
	
   
  	
  
 
  
	
  
 
  	
  
          (5)          non-cash   items increasing such Consolidated Net Income for such period, other than the   accrual of revenue consistent with past practice and any items that represent   the reversal of any accrual of, or cash reserve for, anticipated cash charges   in any prior period, in each case, on a consolidated basis and determined in   accordance with GAAP.
  

6

                    Notwithstanding the preceding, the provision for taxes based on the income or profits of, and the depreciation, depletion and amortization and other non-cash expenses of, a Restricted Subsidiary of the Company shall be added to Consolidated Net Income to compute Consolidated Cash Flow of the Company (A) in the case of any Restricted Subsidiary that is not a wholly owned Restricted Subsidiary, in the same proportion that the Net Income of such Restricted Subsidiary was added to compute such Consolidated Net Income of the Company and (B) only to the extent that a corresponding amount would be permitted at the date of determination to be dividended, distributed or lent to the Company by such Restricted Subsidiary without prior governmental approval (that has not been obtained), and without direct or indirect restriction pursuant to the terms of its
charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and governmental regulations applicable to that Subsidiary or its stockholders.

                    “Consolidated Net Income” means, with respect to any specified Person for any period, the aggregate of the Net Income of such Person and its Subsidiaries for such period, on a consolidated basis, determined in accordance with GAAP; provided that:

	
  
 
  	
  
          (1)          the   Net Income (but not loss) of any Person that is not a Restricted Subsidiary   or that is accounted for by the equity method of accounting shall be included   only to the extent of the amount of dividends or distributions paid in cash   to the specified Person or a Restricted Subsidiary thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          the   Net Income of any Restricted Subsidiary shall be excluded to the extent that   both the declaration or payment of dividends or similar distributions and the   making of loans by that Restricted Subsidiary of that Net Income are not at   the date of determination permitted without any prior governmental approval   (that has not been obtained) or, directly or indirectly, by operation of the   terms of its charter or any agreement, instrument, judgment, decree, order,   statute, rule or governmental regulation applicable to that Restricted   Subsidiary or its equityholders;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          the   Net Income of any Person acquired during the specified period for any period   prior to the date of such acquisition shall be excluded;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (4)          the   cumulative effect of a change in accounting principles shall be excluded; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (5)          the   Net Income (but not loss) of any Unrestricted Subsidiary shall be excluded,   whether or not distributed to the specified Person or one of its   Subsidiaries.
  

                    “Continuing Directors” means, as of any date of determination, any member of the Board of Directors of the Company who:

	
  
 
  	
  
          (1)          was   a member of such Board of Directors on the Issue Date; or
  
	
  
 
  	
  
 
  
	
   
  	
  
          (2)          was   nominated for election or elected to such Board of Directors with the   approval of a majority of the Continuing Directors who were members of such   Board of Directors at the time of such nomination or election.
  

                    “Corporate Trust Office of the Trustee” shall be at the address of the Trustee specified in Section 12.02 hereof or such other address as to which the Trustee may give notice to the Company.

7

                    “Credit Agreement” means the Credit Agreement dated as of June 30, 2005 by and among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the lenders party thereto, providing for up to $200.0 million of revolving credit borrowings, including any related notes, Guarantees, collateral documents, instruments and agreements executed in connection therewith, and in each case as amended, modified, renewed, refunded, replaced, decreased, increased or refinanced from time to time, regardless of whether such amendment, modification, renewal, refunding, replacement, decrease, increase or refinancing is with the same financial institutions or otherwise.

                    “Credit Facilities” means, one or more debt or receivables facilities (including, without limitation, the Credit Agreement) or commercial paper facilities or indentures, in each case with banks, vendors or other institutional lenders or a trustee providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special purpose entities formed to borrow from such lenders against such receivables) or letters of credit or issuances of debt securities, in each case, as amended, restated, modified, renewed, refunded, replaced, decreased, increased or refinanced in whole or in part from time to time.

                    “Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any successor entity thereto.

                    “Default” means any event that is, or with the passage of time or the giving of notice or both, would be, an Event of Default.

                    “Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 2.07 hereof, substantially in the form of Exhibit A hereto, and such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of Interests in the Global Note” attached thereto.

                    “Depositary” means, with respect to the Notes issuable or issued in whole or in part in global form, the Person specified in Section 2.04 hereof as the Depositary with respect to the Notes, and any and all successors thereto appointed as depositary hereunder and having become such pursuant to the applicable provision of this Indenture.

                    “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any security into which it is convertible, or for which it is exchangeable, in each case at the option of the holder thereof), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is one year after the date on which the Notes mature. Notwithstanding the preceding sentence, any Capital Stock that would constitute Disqualified Stock solely because the holders thereof have the right to require the Company to repurchase such Capital Stock upon the occurrence of a change of control or an asset sale shall not constitute Disqualified Stock if the terms of such Capital Stock provide
that the Company may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Section 4.07. The term “Disqualified Stock” shall also include any options, warrants or other rights that are convertible into Disqualified Stock or that are redeemable at the option of the holder, or required to be redeemed, prior to the date that is one year after the date on which the Notes mature.

8

                    “Domestic Subsidiary” means any Restricted Subsidiary of the Company other than a Subsidiary that is (1) a “controlled foreign corporation” under Section 957 of the Internal Revenue Code or (2) a Subsidiary of any such controlled foreign corporation.

                    “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock).

                    “Equity Offering” means a public or private offer and sale of Capital Stock (other than Disqualified Stock) of the Company.

                    “Exchange Act” means the Securities Exchange Act of 1934, as amended.

                    “Exchange Notes” means the Notes issued in the Exchange Offer in accordance with Section 2.07(f) hereof.

                    “Exchange Offer” has the meaning set forth in the Registration Rights Agreement.

                    “Exchange Offer Registration Statement” has the meaning set forth in the Registration Rights Agreement.

                    “Existing Indebtedness” means the aggregate principal amount of Indebtedness of the Company and its Subsidiaries (other than Indebtedness under the Credit Agreement) in existence on the Issue Date.

                    “Fair Market Value” means the price that would be paid in an arm’s-length transaction between an informed and willing seller under no compulsion to sell and an informed and willing buyer under no compulsion to buy, as determined in good faith by the Board of Directors of the Company, whose determination shall be conclusive if evidenced by a Board Resolution.

                    “Fixed Charges” means, with respect to any specified Person for any period, the sum, without duplication, of:

	
  
 
  	
  
          (1)          the   consolidated interest expense of such Person and its Restricted Subsidiaries   for such period, whether paid or accrued, including, without limitation,   amortization of debt issuance costs and original issue discount, non-cash   interest payments, the interest component of any deferred payment   obligations, the interest component of all payments associated with Capital   Lease Obligations, imputed interest with respect to Attributable Debt,   commissions, discounts and other fees and charges Incurred in respect of   letters of credit or bankers’ acceptance financings, and net of the effect of   all payments made or received pursuant to Hedging Obligations; plus
  

9

	
  
 
  	
  
          (2)          the   consolidated interest of such Person and its Restricted Subsidiaries that was   capitalized during such period; plus
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          any   interest expense on Indebtedness of another Person that is Guaranteed by such   Person or one of its Restricted Subsidiaries or secured by a Lien on assets   of such Person or one of its Restricted Subsidiaries, whether or not such   Guarantee or Lien is called upon; plus
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (4)          any   accounts receivable facility fees or discounts paid under any accounts   receivables financing; plus
  
	
  
 
  	
  
 
  
	
   
  	
  
          (5)          the   product of (a) all dividends, whether paid or accrued and whether or not in   cash, on any series of Disqualified Stock or preferred stock of such Person   or any of its Restricted Subsidiaries that are not tax deductible for such   Person or such Restricted Subsidiary, other than dividends on Equity   Interests payable solely in Equity Interests of the Company (other than   Disqualified Stock) or to the Company or a Restricted Subsidiary of the   Company, times (b) a fraction, the numerator of which is one and the   denominator of which is one minus the then current combined federal, state   and local statutory tax rate of such Person, expressed as a decimal, in each   case, on a consolidated basis and in accordance with GAAP; plus
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (6)          all   dividends, whether paid or accrued and whether or not in cash, on any series   of Disqualified Stock or preferred stock of such Person or any of its   Restricted Subsidiaries that are tax deductible for such Person or such   Restricted Subsidiary, other than dividends on Equity Interests payable   solely in Equity Interests of the Company (other than Disqualified Stock) or   to the Company or a Restricted Subsidiary of the Company.
  

                    “Fixed Charge Coverage Ratio” means with respect to any specified Person for any period, the ratio of the Consolidated Cash Flow of such Person for such period to the Fixed Charges of such Person for such period. In the event that the specified Person or any of its Subsidiaries Incurs, assumes, Guarantees, repays, repurchases or redeems any Indebtedness or issues, repurchases or redeems preferred stock subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated and on or prior to the date on which the event for which the calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio shall be calculated giving pro forma effect to such Incurrence, assumption, Guarantee, repayment, repurchase or redemption of
Indebtedness, or such issuance, repurchase or redemption of preferred stock, and the use of the proceeds therefrom as if the same had occurred at the beginning of the applicable four-quarter reference period.

                    In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

	
  
 
  	
  
          (1)          acquisitions   and dispositions of business entities or property and assets constituting a   division or line of business of any Person that have been made by the   specified Person or any of its Restricted Subsidiaries, including through the   Transactions or through mergers or consolidations and including any related   financing transactions, during the   four-quarter reference period or subsequent to such reference period and on   or prior to the Calculation Date shall be given pro forma effect as if they   had occurred on the first day of the four-quarter reference period and   Consolidated Cash Flow for such reference period shall be calculated on a pro   forma basis in accordance with Regulation S-X under the Securities Act, but   without giving effect to clause (3) of the proviso set forth in the   definition of Consolidated Net Income;

  

10

	
   
  	
  
          (2)          the   Consolidated Cash Flow attributable to discontinued operations, as determined   in accordance with GAAP shall be excluded;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          the   Fixed Charges attributable to discontinued operations, as determined in   accordance with GAAP shall be excluded, but only to the extent that the   obligations giving rise to such Fixed Charges shall not be obligations of the   specified Person or any of its Subsidiaries following the Calculation Date;   and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (4)          consolidated   interest expense attributable to interest on any Indebtedness (whether   existing or being Incurred) computed on a pro   forma basis and bearing a floating interest rate shall be computed   as if the rate in effect on the Calculation Date (taking into account any   interest rate option, swap, cap or similar agreement applicable to such   Indebtedness if such agreement has a remaining term in excess of 12 months   or, if shorter, at least equal to the remaining term of such Indebtedness)   had been the applicable rate for the entire period.
  

                    “GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants, the opinions and pronouncements of the Public Company Accounting Oversight Board and in the statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect on the Closing Date. All ratios and computations contained or referred to in this Indenture shall be computed in conformity with GAAP and shall be made without giving effect to the write off of debt issuance costs or payment of consent fees or premiums on or prior to the Issue Date.

                    “Global Note Legend” means the legend set forth in Section 2.07(g)(ii), which is required to be placed on all Global Notes issued under this Indenture.

                    “Global Notes” means, individually and collectively, each of the Restricted Global Notes and the Unrestricted Global Notes, substantially in the form of Exhibit A hereto, issued in accordance with Section 2.01, 2.07(b), 2.07(d) or 2.07(f) of this Indenture.

                    “Government Securities” means securities that are direct obligations of the United States of America for the timely payment of which its full faith and credit is pledged.

                    “Guarantee” means, as to any Person, a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Indebtedness of another Person.

11

                    “Guarantors” means: 

	
  
 
  	
  
          (1)          the   Initial Guarantors; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          any   other subsidiary that executes a Note Guarantee in accordance with the   provisions of this Indenture;
  

and their respective successors and assigns until released from their obligations under their Note Guarantees and this Indenture in accordance with the terms of this Indenture.

                    “Hedging Obligations” means, with respect to any specified Person, the obligations of such Person under:

	
   
  	
  
          (1)          interest   rate swap agreements, interest rate cap agreements, interest rate collar   agreements and other agreements or arrangements designed for the purpose of   fixing, hedging or swapping interest rate risk;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          commodity   swap agreements, commodity option agreements, forward contracts and other   agreements or arrangements designed for the purpose of fixing, hedging or   swapping commodity price risk; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          foreign   exchange contracts, currency swap agreements and other agreements or   arrangements designed for the purpose of fixing, hedging or swapping foreign   currency exchange rate risk.
  

                    “Holder” means a Person in whose name a Note is registered.

                    “Incur” means, with respect to any Indebtedness, to incur, create, issue, assume, Guarantee or otherwise become directly or indirectly liable for or with respect to, or become responsible for, the payment of, contingently or otherwise, such Indebtedness (and “Incurrence” and “Incurred” will have meanings correlative to the foregoing); provided that (1) any Indebtedness of a Person existing at the time such Person becomes a Restricted Subsidiary of the Company shall be deemed to be Incurred by such Restricted Subsidiary at the time it becomes a Restricted Subsidiary of the Company and (2) neither the accrual of interest nor the accretion of original issue discount nor the payment of interest in the form of additional Indebtedness with the same terms and the payment of dividends on Disqualified Stock or
Preferred Stock in the form of additional shares of the same class of Disqualified Stock or Preferred Stock (to the extent provided for when the Indebtedness or Disqualified Stock or Preferred Stock on which such interest is paid was originally issued) shall be considered an Incurrence of Indebtedness; provided that in each case the amount thereof is for all other purposes included in the Fixed Charges and Indebtedness of the Company or its Restricted Subsidiary as accrued.

                    “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person, whether or not contingent, in respect of:

	
  
 
  	
  
          (1)          borrowed   money;
  

12

	
  
 
  	
  

          (2)          evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or
reimbursement agreements in respect thereof), but excluding obligations with
respect to letters of credit (including trade letters of credit) securing
obligations described in clause (5) below entered into in the ordinary course of
business of such Person to the extent such letters of credit are not drawn upon
or, if drawn upon, to the extent such drawing is reimbursed no later than the
third Business Day following receipt by such Person of a demand for
reimbursement; provided, however, that the foregoing exclusion shall not
apply to letters of credit outstanding under the Credit Agreement;

	
   
  	
  
 
  
	
  
 
  	
  
          (3)          banker’s   acceptances;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (4)          Capital   Lease Obligations and Attributable Debt;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (5)          the   balance deferred and unpaid of the purchase price of any property which   purchase price is due more than six months after the date of placing such   property in service or taking delivery and title thereto, except any such balance   that constitutes an accrued expense or trade payable;
  
	
  
 
  	
  
 
  
	
  
 
  	
  

          (6)          Hedging
Obligations, other than Hedging Obligations that are Incurred in the ordinary
course of business for the purpose of fixing, hedging or swapping interest rate,
commodity price or foreign currency exchange rate risk (or to reverse or amend
any such agreements previously made for such purposes), and not for speculative
purposes, and that do not increase the Indebtedness of the obligor outstanding
at any time other than as a result of fluctuations in interest rates, commodity
prices or foreign currency exchange rates or by reason of fees, indemnities and
compensation payable thereunder; or
 
	
   
  	
  
 
  
	
  
 
  	
  

          (7)          Disqualified
Stock valued at the greater of its voluntary or involuntary maximum fixed
repurchase price plus accrued dividends.
 

                    In
addition, the term “Indebtedness” includes (x) for purposes of Article
Four, any Obligations Incurred in connection with any accounts receivables
financing, (y) all Indebtedness of others secured by a Lien on any asset of the
specified Person (whether or not such Indebtedness is assumed by the specified
Person), provided that the amount of such Indebtedness shall be the
lesser of (A) the Fair Market Value of such asset at such date of determination
and (B) the amount of such Indebtedness, and (z) to the extent not otherwise
included, the Guarantee by the specified Person of any Indebtedness of any other
Person. For purposes hereof, the “maximum fixed repurchase price” of
any Disqualified Stock which does not have a fixed repurchase price shall be
calculated in accordance with the terms of such Disqualified Stock as if such
Disqualified Stock were purchased on any date on which Indebtedness shall be
required to be determined pursuant to this Indenture, and if such price is based
upon, or measured by, the Fair Market Value of such Disqualified Stock, such
Fair Market Value shall be determined in good faith by the Board of Directors of
the issuer of such Disqualified Stock.

                    The amount of any Indebtedness outstanding as of any date shall be the outstanding balance at such date of all unconditional obligations as described above and, with respect to contingent obligations, the maximum liability upon the occurrence of the contingency giving rise to the obligation, and shall be:

13

	
  
 
  	
  
          (1)          the   accreted value thereof, in the case of any Indebtedness issued with original   issue discount; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          the   principal amount thereof or, in the case of any accounts receivables   financing, an equivalent amount, together with any interest or accounts   receivable facility fees thereon that are more than 30 days past due, in the   case of any other Indebtedness;
  
	
  
 
  	
  
 
  
	
  
provided that Indebtedness shall not   include:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (i)          any   liability for federal, state, local or other taxes,
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ii)          performance,   surety or appeal bonds provided in the ordinary course of business, and   letters of credit supporting any such bonds or provided to serve the purpose   of any such bonds to the extent such letters of credit are not drawn upon or,   if drawn upon, to the extent such drawing is reimbursed no later than the   third Business Day following receipt by such Person of a demand for   reimbursement,
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)          agreements   providing for indemnification, adjustment of purchase price or similar   obligations, or Guarantees or letters of credit, surety bonds or performance   bonds securing any obligations of the Company or any of its Restricted   Subsidiaries pursuant to such agreements, in any case Incurred in connection   with the disposition of any business, assets or Restricted Subsidiary (other   than Guarantees of Indebtedness Incurred by any Person acquiring all or any   portion of such business, assets or Restricted Subsidiary for the purpose of   financing such acquisition), so long as the principal amount does not exceed   the gross proceeds actually received by the Company or any Restricted Subsidiary   in connection with such disposition,
  
	
  
 
  	
  
 
  
	
   
  	
  
          (iv)          Indebtedness   arising from the honoring by a bank or other financial institution of a   check, draft or similar instrument inadvertently (except in the case of   daylight overdrafts) drawn against insufficient funds in the ordinary course   of business; provided, however,   that such Indebtedness is extinguished within five Business Days of   Incurrence; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)          Indebtedness   arising in connection with endorsement of instruments for deposit in the   ordinary course of business.
  

                    “Initial Guarantors” means all of the subsidiaries of the Company other than Chaparral Steel Company and its subsidiaries and other than TXI Capital Trust I.

                    “Indenture” means this Indenture, as amended or supplemented from time to time.

                    “Indirect Participant” means a Person who holds a beneficial interest in a Global Note through a Participant.

                    “Institutional Accredited Investor” means an institution that is an “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, who are not also QIBs.

14

                    “Investment Grade” means (1) BBB- or above, in the case of S&P (or its equivalent under any successor Rating Categories of S&P) and Baa3 or above, in the case of Moody’s (or its equivalent under any successor Rating Categories of Moody’s), or (2) the equivalent in respect of the Rating Categories of any Rating Agencies.

                    “Investments” means, with respect to any Person, all direct or indirect investments by such Person in other Persons (including Affiliates) in the forms of loans or other extensions of credit (including Guarantees, but excluding advances to customers or suppliers in the ordinary course of business that are, in conformity with GAAP, recorded as accounts receivable, prepaid expenses or deposits on the balance sheet of the Company or its Restricted Subsidiaries and endorsements for collection or deposit arising in the ordinary course of business), advances (excluding commission, payroll, travel and similar advances to officers and employees that are expected at the time of such advances ultimately to be treated as expenses in accordance with GAAP), capital contributions, purchases or other acquisitions for consideration of
Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP.

                    If the Company or any Restricted Subsidiary of the Company sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Company such that, after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the Company, the Company shall be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market Value of the Investments in such Restricted Subsidiary not sold or disposed of in an amount determined as provided in Section 4.07 hereof.  The acquisition by the Company or any Restricted Subsidiary of the Company of a Person that holds an Investment in a third Person shall be deemed to be an Investment by the Company or such Restricted Subsidiary in such third Person in an amount equal to the Fair Market Value of the
Investment held by the acquired Person in such third Person in an amount determined as provided in Section 4.07 hereof.

                    “Issue Date” means the date of original issuance of the Notes under this Indenture.

                    “Issuer” means the Company.

                    “Legended Regulation S Global Note” means a global Note in the form of Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee, issued in a denomination equal to the outstanding principal amount at maturity of the Notes initially sold in reliance on Rule 903 of Regulation S.

                    “Letter of Transmittal” means the letter of transmittal to be prepared by the Company and sent to all Holders of the Notes for use by such Holders in connection with the Exchange Offer.

                    “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

15

                    “Liquidated Damages” means all additional interest then owing pursuant to Section 5 of the Registration Rights Agreement.

                    “Make-Whole Premium” means, with respect to a Note on any date of redemption, the greater of (x) 1% of the principal amount of such Note or (y) the excess of (A) the present value at such date of redemption of (1) the redemption price of such Note at July 15, 2009 (such redemption price as set forth under Section 3.07) plus (2) all remaining required interest payments (exclusive of interest accrued and unpaid to the date of redemption) due on such Note through July 15, 2009, computed using semi-annual discounting and a discount rate equal to the Treasury Rate plus 50 basis points, over (B) the then outstanding principal amount of such Note.

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

                    “Net Income” means, with respect to any specified Person, the net income (loss) of such Person, determined in accordance with GAAP and before any reduction in respect of preferred stock dividends (other than reductions in respect of preferred stock dividends on the 5.5% Shared Preference Redeemable Securities of TXI Capital Trust I outstanding on the Issue Date), excluding, however:

	
  
 
  	
  
          (1)          any   gain (or loss), together with any related provision for taxes on such gain   (or loss), realized in connection with: (a) any sales of assets outside the   ordinary course of business of the Company and its Restricted Subsidiaries;   or (b) the disposition of any securities by such Person or any of its   Restricted Subsidiaries or the extinguishment of any Indebtedness of such   Person or any of its Restricted Subsidiaries;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (2)          any   extraordinary gain (but not loss), together with any related provision for   taxes on such extraordinary gain (but not loss); and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          solely   for the purpose of calculating Consolidated Cash Flow, any extraordinary   loss.
  

                    “Net
Proceeds” means the aggregate cash proceeds, including payments in
respect of deferred payment obligations (to the extent corresponding to the
principal, but not the interest component, thereof) received by the Company or
any of its Restricted Subsidiaries in respect of any Asset Sale (including,
without limitation, any cash received upon the sale or other disposition of any
non-cash consideration received in any Asset Sale), net of (1) the direct costs
relating to such Asset Sale, including, without limitation, legal, accounting
and investment banking and brokerage fees, and sales commissions, and any
relocation expenses Incurred as a result thereof, (2) taxes paid or payable as a
result thereof, in each case, after taking into account any available tax
credits or deductions and any tax sharing arrangements, (3) amounts required to
be applied to the repayment of Indebtedness or other liabilities, secured by a
Lien on the asset or assets that were the subject of such Asset Sale, or
required to be paid as a result of such sale, (4) any reserve for adjustment in
respect of the sale price of such asset or assets established in accordance with GAAP,

16

(5) in the case of any Asset Sale by a Restricted Subsidiary of the Company,
payments to holders of Equity Interests in such Restricted Subsidiary in such
capacity (other than such Equity Interests held by the Company or any Restricted
Subsidiary thereof) to the extent that such payment is required to permit the
distribution of such proceeds in respect of the Equity Interests in such
Restricted Subsidiary held by the Company or any Restricted Subsidiary thereof
and (6) appropriate amounts to be provided by the Company or its Restricted
Subsidiaries as a reserve against liabilities associated with such Asset Sale,
including, without limitation, pension and other post-employment benefit
liabilities, liabilities related to environmental matters and liabilities under
any indemnification obligations associated with such Asset Sale, all as
determined in accordance with GAAP; provided that (a) excess amounts set
aside for payment of taxes pursuant to clause (2) above remaining after such
taxes have been paid in full or the statute of limitations therefor has expired
and (b) amounts initially held in reserve pursuant to clause (6) no longer so
held, will, in the case of each of subclause (a) and (b), at the time become Net
Proceeds.

                    “Non-U.S. Person” means a Person who is not a U.S. Person.

                    “Note Guarantee” means a Guarantee of the Notes pursuant to this Indenture.

                    “Notes” means the 7.25% Senior Notes due 2013 of the Company issued on the date hereof and any Additional Notes, including any Exchange Notes.  The Notes and the Additional Notes, if any, shall be treated as a single class for all purposes under this Indenture.

                    “Obligations” means any principal (or, in the case of any accounts receivables financing, an equivalent amount), interest, penalties, fees (including accounts receivable facility fees or discounts), indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness.

                    “Offering” means the offering of the Notes by the Company.

                    “Offering Memorandum” means the offering memorandum of the Company for the offering of the Notes, dated June 29, 2005.

                    “Officer” means, with respect to any Person, the chairman of the Board, the chief executive officer, the president, the chief operating officer, the chief financial officer, the treasurer, any assistant treasurer, the controller, the secretary or any vice-president of such Person.

                    “Officers’ Certificate” means a certificate signed on behalf of the Company by at least two Officers of the Company, one of whom must be the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Company, that meets the requirements of Section 12.05 hereof.

                    “Opinion
of Counsel” means an opinion from legal counsel who is reasonably
acceptable to the Trustee (who may be counsel to or an employee of the Company)
that meets the requirements of Section 12.05 hereof.

17

                    “Participant”
means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively (and
with respect to DTC, shall include Euroclear and Clearstream).

                    “Permitted Business” means any business conducted or proposed to be conducted (as described in the Offering Memorandum) by the Company and its Restricted Subsidiaries on the Issue Date and other businesses reasonably related or ancillary thereto.

                    “Permitted Investments” means: 

	
  
 
  	
  
          (1)          any   Investment in the Company or in a Restricted Subsidiary of the Company that   is a Guarantor;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          any   Investment in Cash Equivalents;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (3)          any   Investment by the Company or any Restricted Subsidiary of the Company in a   Person, if as a result of such Investment:
  

	
  
 
  	
  
 
  	
  
              (a)          such   Person becomes a Restricted Subsidiary of the Company and a Guarantor; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
              (b)          such   Person is merged, consolidated or amalgamated with or into, or transfers or   conveys substantially all of its assets to, or is liquidated into, the   Company or a Restricted Subsidiary of the Company that is a Guarantor;
  

	
  
 
  	
  
          (4)          any   Investment made as a result of the receipt of non-cash consideration from an   Asset Sale that was made pursuant to and in compliance with Section 4.10;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (5)          Investments   to the extent acquired in exchange for the issuance of Equity Interests   (other than Disqualified Stock) of the Company;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (6)          TXI   Advance made in accordance with the Centralized Cash Management Program, provided that the aggregate amount at   any time outstanding does not exceed (i) $50.0 million, and (ii) the   contribution of any such TXI Advance to the capital of Chaparral Steel   Company as contemplated by the Centralized Cash Management Program;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (7)          Hedging   Obligations that are Incurred in the ordinary course of business for the   purpose of fixing, hedging or swapping interest rate, commodity price or   foreign currency exchange rate risk (or to reverse or amend any such   agreements previously made for such purposes), and not for speculative   purposes, and that do not increase the Indebtedness of the obligor   outstanding at any time other than as a result of fluctuations in interest   rates, commodity prices or foreign currency exchange rates or by reason of   fees, indemnities and compensation payable thereunder;
  

18

	
  
 
  	
  
          (8)          other   Investments in any Person (other than a Person that controls the Company)   having an aggregate Fair Market Value (measured on the date each such   Investment was made and without giving effect to subsequent changes in   value), when taken together with all other Investments made pursuant to this   clause (8) since the Issue Date, not to exceed 10% of the Tangible Assets of   the Company and its Restricted Subsidiaries (determined as of the end of the   most recent fiscal quarter of the Company), plus,   to the extent that any Investment made pursuant to this clause (8) since the   Issue Date is sold for cash or otherwise liquidated or repaid for cash, the   lesser of (a) the cash return of capital with respect to such Investment   (less the cost of disposition, if any) and (b) the initial amount of such   Investment;
provided that, at   the time such Investment is made pursuant to this clause (8) and after giving   pro forma effect thereto as if such Investment had been made at the beginning   of the applicable four-quarter period, the Company would have been permitted   to Incur at least $1.00 of additional Indebtedness pursuant to the Fixed   Charge Coverage Ratio test set forth in Section 4.09(a) hereof;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (9)          loans   and advances to directors, employees and officers of the Company and the   Restricted Subsidiaries for bona fide business purposes and to purchase   Equity Interests of the Company not in excess of $2.0 million at any one time   outstanding;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (10)        Investments   in securities or other obligations received in settlement of debts arising in   the ordinary course of business pursuant to any plan of reorganization or   similar arrangement;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (11)        stock,   obligations or securities received in satisfaction of judgments or settlement   of claims; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (12)        Investments   in a Receivables Subsidiary in connection with any Qualified Receivables   Transaction.
  

                    “Permitted Liens” means:

	
  
 
  	
  
          (1)          Liens   on the assets of the Company and any Guarantor securing Indebtedness (and all   Obligations related thereto) Incurred under Section 4.09(b)(i);
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          Liens   in favor of the Company or any Restricted Subsidiary that is a Guarantor;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          Liens   on property of a Person existing at the time such Person is merged with or   into or consolidated with the Company or any Restricted Subsidiary of the   Company or at the time such Person becomes a Restricted Subsidiary of the   Company; provided that such   Liens were in existence prior to the contemplation of such transaction and do   not extend to any other assets of the Company or any Restricted Subsidiary   (other than additions and accessions to such property of such Person);
  
	
   
  	
  
 
  
	
  
 
  	
  
          (4)          Liens   on property existing at the time of acquisition thereof by the Company or any   Restricted Subsidiary of the Company; provided   that such Liens were in existence prior to the contemplation of such acquisition   and do not extend to any property other than the property so acquired by the   Company or the Restricted Subsidiary (and additions and accessions thereto);
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (5)          Liens   existing on the Issue Date;
  

19

	
  
 
  	
  
          (6)          Liens   on cash or Cash Equivalents securing Hedging Obligations of the Company or   any of its Restricted Subsidiaries that do not constitute Indebtedness or   securing letters of credit that support such Hedging Obligations;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (7)          Liens   securing Permitted Refinancing Indebtedness (and all Obligations related   thereto); provided that such   Liens do not extend to or cover any property or assets other than the   property or assets that secure the Indebtedness being refinanced (and additions   and accessions to such property or assets);
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (8)          Liens   for taxes, assessments and governmental charges not yet delinquent or being   contested in good faith and for which adequate reserves have been established   to the extent required by GAAP;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (9)          carriers,   warehousemen’s, mechanics’, worker’s, materialmen’s, operators’, landlords’   or similar Liens arising in the ordinary course of business;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (10)        Liens   Incurred or deposits made in the ordinary course of business in connection   with worker’s compensation, unemployment insurance or other social security   obligations;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (11)        Liens,   deposits or pledges to secure the performance of bids, tenders, contracts   (other than contracts for the payment of Indebtedness), leases, or other   similar obligations arising in the ordinary course of business;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (12)        survey   exceptions, encumbrances, easements or reservations of, or rights of others   for, rights of way, zoning or other restrictions as to the use of properties,   and defects in title which, in the case of any of the foregoing, were not   Incurred or created to secure the payment of Indebtedness, and which in the   aggregate do not materially adversely affect the value of such properties or   materially impair the use for the purposes of which such properties are held   by the Company or any Restricted Subsidiaries;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (13)        judgment   and attachment Liens not giving rise to an Event of Default and notices of   lis pendens and associated rights related to litigation being contested in   good faith by appropriate proceedings and for which adequate reserves have   been made;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (14)        Liens,   deposits or pledges to secure public or statutory obligations, surety, stay,   appeal, indemnity, performance or other similar bonds or obligations; and   Liens, deposits or pledges in lieu of such bonds or obligations, or to secure   such bonds or obligations, or to secure letters of credit in lieu of or   supporting the payment of such bonds or obligations;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (15)        Liens   on property or assets used to defease Indebtedness that was not Incurred in   violation of this Indenture;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (16)        Liens   in favor of collecting or payor banks having a right of setoff, revocation,   refund or chargeback with respect to money or instruments of the Company or   any Subsidiary on deposit with or in possession of such bank;
  

20

	
  
 
  	
  
          (17)        purchase   money Liens granted in connection with the acquisition of assets in the   ordinary course of business, provided   that (A) such Liens attach only to the property so acquired with the purchase   money indebtedness secured thereby (and to additions and accessions thereto)   and (B) the principal amount of the Indebtedness secured by such Liens does   not exceed 100% of the purchase price of such assets;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (18)        any   interest or title of a lessor in the property subject to any lease; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (19)        Liens   (not otherwise permitted hereunder) with respect to obligations that do not   exceed $15.0 million at any one time outstanding.
  

                    “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund other Indebtedness of the Company or any of its Restricted Subsidiaries (other than intercompany Indebtedness); provided that:

	
  
 
  	
  
          (1)          the   principal amount (or accreted value, if applicable) of such Permitted   Refinancing Indebtedness does not exceed the principal amount (or accreted   value, if applicable) of the Indebtedness so extended, refinanced, renewed,   replaced, defeased or refunded (plus all accrued interest thereon and the   amount of any reasonably determined premium necessary to accomplish such   refinancing and such reasonable expenses Incurred in connection therewith);
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          such   Permitted Refinancing Indebtedness has a final maturity date later than the   final maturity date of, and has a Weighted Average Life to Maturity equal to   or greater than the Weighted Average Life to Maturity of, the Indebtedness   being extended, refinanced, renewed, replaced, defeased or refunded;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (3)          if   the Indebtedness being extended, refinanced, renewed, replaced, defeased or   refunded is subordinated in right of payment to the Notes or the Note   Guarantees, such Permitted Refinancing Indebtedness has a final maturity date   later than the final maturity date of, and is subordinated in right of   payment to, the Notes on terms at least as favorable to the Holders of Notes   as those contained in the documentation governing the Indebtedness being   extended, refinanced, renewed, replaced, defeased or refunded;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (4)          if   the Indebtedness being extended, refinanced, renewed, replaced, defeased or   refunded is pari passu in right   of payment with the Notes or any Note Guarantees, such Permitted Refinancing   Indebtedness is pari passu   with, or subordinated in right of payment to, the Notes or such Note   Guarantees; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (5)          such   Indebtedness is Incurred either by the Company or by the Restricted   Subsidiary who is the obligor on the Indebtedness being extended, refinanced,   renewed, replaced, defeased or refunded.
  

21

                    “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity.

                    “Preferred Stock” means, with respect to any Person, any Capital Stock of such Person that has preferential rights to any other Capital Stock of such Person with respect to dividends or redemptions upon liquidation.

                    “Private Placement Legend” means the legend set forth in Section 2.07(g)(i) to be placed on all Notes issued under this Indenture except where otherwise permitted by the provisions of this Indenture.

                    “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

                    “Qualified Receivables Transaction” means any transaction or series of transactions that may be entered into by the Company or any of its Restricted Subsidiaries pursuant to which the Company or such Restricted Subsidiary may sell, convey or otherwise transfer to a Receivables Subsidiary accounts receivable (whether now existing or arising in the future) and any assets related thereto, including without limitation, all collateral securing such accounts receivable, all guarantees or other obligations in respect of such accounts receivable, proceeds of such accounts receivable and all other assets that are customarily transferred, or in respect of which security interests are customarily granted, in connection with an asset securitization transaction involving accounts receivable and pursuant to which such Receivables Subsidiary
may sell, convey or otherwise transfer interests in such accounts receivable and related assets to any Person other than an Affiliate of the Company; provided that:

	
  
 
  	
  
          (1)          no   portion of the Indebtedness or any other obligations (contingent or   otherwise) of a Receivables Subsidiary:
  

	
  
 
  	
  
              (a)          is   guaranteed by the Company or any Restricted Subsidiary of the Company   (excluding guarantees of obligations pursuant to Standard Securitization   Undertakings),
  
	
  
 
  	
  
 
  
	
  
 
  	
  
              (b)          is   recourse to or obligates the Company or any Restricted Subsidiary of the   Company in any way other than pursuant to Standard Securitization   Undertakings, or
  
	
  
 
  	
  
 
  
	
   
  	
  
              (c)          subjects   any property or asset of the Company or any Restricted Subsidiary of the   Company, directly or indirectly, contingently or otherwise, to the   satisfaction of obligations Incurred in such transactions, other than   pursuant to Standard Securitization Undertakings;
  

	
  
 
  	
  

          (2)          neither
the Company nor any Restricted Subsidiary of the Company has any material
contract, agreement, arrangement or understanding with a Receivables Subsidiary
other than on terms no less favorable to the Company or any Restricted
Subsidiary of the Company than those that might be obtained at the time from
Persons that are not Affiliates of the Company, other than fees payable in the
ordinary course of business in connection with servicing accounts receivable;
provided that all of the agreements, arrangements and understandings entered into by the Company or any
Restricted Subsidiary with a Receivables Subsidiary in connection with any
transaction or series of transactions shall be considered as a whole for
purposes of determining compliance with this clause (2); and
 

22

	
  
 
  	
  

          (3)          neither
the Company nor any Restricted Subsidiary of the Company (other than such
Receivables Subsidiary) has any obligation to maintain or preserve the financial
condition of a Receivables Subsidiary or cause such entity to achieve certain
levels of operating results.
 

                    “Rating Agencies” means (1) S&P and Moody’s or (2) if S&P or Moody’s or both of them are not making ratings publicly available, a nationally recognized U.S. rating agency or agencies, as the case may be, selected by the Company, which shall be substituted for S&P or Moody’s or both, as the case may be.

                    “Rating Category” means (1) with respect to S&P, any of the following categories (any of which may include a “+” or “—”): AAA, AA, A, BBB, BB, B, CCC, CC, C and D (or equivalent successor categories), (2) with respect to Moody’s, any of the following categories: Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C and D (or equivalent successor categories), and (3) the equivalent of any such categories of S&P or Moody’s used by another Rating Agency, if applicable.

                    “Receivables Subsidiary” means (a) TXI Receivables Corporation and (b) any other special purpose wholly owned subsidiary of the Company created in connection with the transactions contemplated by a Qualified Receivables Transaction, which Subsidiary engages in no activities other than those incidental to such Qualified Receivables Transaction and which is designated as a Receivables Subsidiary by the Company’s Board of Directors. Any such designation by the Board of Directors of the Company shall be evidenced by filing with the Trustee a Board Resolution giving effect to such designation and an Officers’ Certificate certifying, to the best of such officers’ knowledge and belief after consulting with counsel, such designation, and the transactions in which the Receivables Subsidiary will engage, comply with the
requirements of the definition of Qualified Receivables Transaction. For purposes of the definition of “Unrestricted Subsidiary,” the making of Standard Securitization Undertakings by the Company or any of its Restricted Subsidiaries shall not be deemed inconsistent with qualifying as an Unrestricted Subsidiary.

                    “Registration Rights Agreement” means (1) with respect to the Notes issued on the Issue Date, the Registration Rights Agreement, to be dated the Issue Date, among the Company, the Initial Guarantors, UBS Securities LLC and Banc of America Securities LLC and (2) with respect to any Additional Notes, any registration rights agreement between the Company and the other parties thereto relating to the registration by the Company of such Additional Notes under the Securities Act.

                    “Regulation S” means Regulation S promulgated under the Securities Act.

                    “Regulation S Global Note” means a Legended Regulation S Global Note or a Unlegended Regulation S Global Note, as appropriate.

23

                    “Replacement Assets” means (1) non-current tangible assets or capital expenditures that will be used or useful in a Permitted Business or (2) substantially all the assets of a Permitted Business or a majority of the Voting Stock of any Person engaged in a Permitted Business that will become on the date of acquisition thereof a Restricted Subsidiary.

                    “Responsible Officer,” when used with respect to the Trustee, means any officer within the Corporate Trust Administration of the Trustee (or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

                    “Restricted Definitive Note” means a Definitive Note bearing the Private Placement Legend.

                    “Restricted Global Note” means a Global Note bearing the Private Placement Legend.

                    “Restricted Investment” means an Investment other than a Permitted Investment.

                    “Restricted Period” means the 40-day restricted period as defined in Regulation S.

                    “Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an Unrestricted Subsidiary.

                    “Rule 144” means Rule 144 promulgated under the Securities Act.

                    “Rule 144A” means Rule 144A promulgated under the Securities Act.

                    “Rule 903” means Rule 903 promulgated under the Securities Act.

                    “Rule 904” means Rule 904 promulgated the Securities Act.

                    “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies. 

                    “sale and leaseback transaction” means, with respect to any Person, any transaction involving any of the assets or properties of such Person whether now owned or hereafter acquired, whereby such Person sells or transfers such assets or properties and then or thereafter leases such assets or properties or any part thereof or any other assets or properties which such Person intends to use for substantially the same purpose or purposes as the assets or properties sold or transferred.

                    “SEC” means the Securities and Exchange Commission.

                    “Securities Act” means the Securities Act of 1933, as amended.

24

                    “Shelf Registration Statement” means the Shelf Registration Statement as defined in the Registration Rights Agreement.

                    “Significant Subsidiary”  means any Subsidiary that would constitute a “significant subsidiary” within the meaning of Article One of Regulation S-X of the Securities Act.

                    “Standard Securitization Undertakings” means representations, warranties, covenants and indemnities entered into by the Company or any Restricted Subsidiary of the Company which, in the good faith judgment of the Board of Directors of the Company, are reasonably customary in accounts receivable transactions.

                    “Stated Maturity” means, with respect to any installment of interest or principal on any series of Indebtedness, the date on which such payment of interest or principal was scheduled to be paid in the original documentation governing such Indebtedness, and shall not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof.

                    “Subsidiary” means, with respect to any specified Person: 

	
  
 
  	
  
          (1)          any   corporation, association or other business entity of which more than 50% of   the total voting power of shares of Capital Stock entitled (without regard to   the occurrence of any contingency) to vote in the election of directors,   managers or trustees thereof is at the time owned or controlled, directly or   indirectly, by such Person or one or more of the other Subsidiaries of that   Person (or a combination thereof); and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          any   partnership (a) the sole general partner or the managing general partner of   which is such Person or a Subsidiary of such Person or (b) the only general   partners of which are such Person or one or more Subsidiaries of such Person   (or any combination thereof).
  

                    “Tangible Assets” means the total amount of assets of the Company and its Restricted Subsidiaries (less applicable depreciation, depletion, amortization and other valuation reserves), except to the extent resulting from write-ups of capital assets (excluding write-ups in connection with accounting for acquisitions in conformity with GAAP), after deducting therefrom all goodwill, trade names, trademarks, patents, unamortized debt discount and expense and other like intangibles, all as set forth on the most recent available quarterly or annual consolidated balance sheet of the Company and its Restricted Subsidiaries, prepared in conformity with GAAP.

                    “TIA” means the Trust Indenture Act of 1939, as in effect on the date on which this Indenture is qualified under the TIA.

                    “Transactions” means
(1) transfer to Chaparral Steel Company of the Company’s subsidiaries
engaged in the steel business and certain related assets, and Chaparral Steel
Company’s assumption of the liabilities arising out of the steel business
or the transferred assets, (2) the sale of the Notes by the Company, (3) the
sale of Chaparral Steel Company’s senior notes, (4) the Company’s
tender offer for, or other repurchase or prepayment of, its 10.25% senior notes
due 2011, (5) Chaparral Steel Company’s payment to the Company of a
dividend of approximately $340 million, (6) the entering into of the new senior
secured credit agreement by Chaparral Steel Company, (7) the entering into of
the Credit Agreement by the Company  (8) the registration and distribution
of the common stock of Chaparral Steel Company to the Company’s
shareholders and (9) the entering into of (i) the separation and distribution
agreement and (ii) the tax sharing and indemnification agreement, each as
contemplated by, and as further described in the Offering Memorandum.

25

                    “Treasury
Rate” means the yield to maturity at the time of computation of United
States Treasury securities with a constant maturity (as compiled and published
in the most recent Federal Reserve Statistical Release H.15 (519) which has
become publicly available at least two Business Days prior to the date fixed for
prepayment (or, if such Statistical Release is no longer published, any publicly
available source for similar market data)) most nearly equal to the then
remaining term of the Notes to July 15, 2009 provided, however, that if
the then remaining term to July 15, 2009 is not equal to the constant maturity
of a United States Treasury security for which a weekly average yield is given,
the Treasury Rate shall be obtained by linear interpolation (calculated to the
nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the then
remaining term of the Notes to July 15, 2009 is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a
constant maturity of one year shall be used.

                    “Trustee” means Wells Fargo Bank, National Association, a national banking association, until a successor replaces it in accordance with the applicable provisions of this Indenture and thereafter means the successor serving hereunder.

                    “TXI Advance” means the intercompany payable owing from Chaparral Steel Company to the Company, which on the Issue Date shall not exceed $25.0 million, which shall only increase or decrease as provided in the definition of “Centralized Cash Management Program”; provided that the amount at any time outstanding shall not exceed $50.0 million.

                    “Unlegended Regulation S Global Note” means a permanent global Note in the form of Exhibit A hereto bearing the Global Note Legend, deposited with or on behalf of and registered in the name of the Depositary or its nominee and issued upon expiration of the Restricted Period.

                    “Unrestricted Definitive Note” means one or more Definitive Notes that do not bear and are not required to bear the Private Placement Legend.

                    “Unrestricted Global Note” means a permanent Global Note substantially in the form of Exhibit A attached hereto that bears the Global Note Legend and that has the “Schedule of Exchanges of Interests in the Global Note” attached thereto, and that is deposited with or on behalf of and registered in the name of the Depositary, representing a series of Notes, and that does not bear the Private Placement Legend.

                    “Unrestricted Subsidiary” means (1) Chaparral Steel Company and its Subsidiaries, (2) any other Subsidiary of the Company that is designated by the Board of Directors of the Company as an Unrestricted Subsidiary pursuant to a Board Resolution in compliance with Section 4.16 hereof and (3) any Subsidiary of an Unrestricted Subsidiary.

26

                    “Unsubordinated Indebtedness” of a Person means any Indebtedness of such Person, unless such Indebtedness is contractually subordinate or junior in right of payment of principal, premium or interest to any other Indebtedness of such Person.

                    “U.S. Person” means a U.S. person as defined in Rule 902(o) under the Securities Act.

                    “Voting Stock” of any Person as of any date means the Capital Stock of such Person that is ordinarily entitled to vote in the election of the Board of Directors of such Person.

                    “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing:

	
  
 
  	
  
          (1)          the   sum of the products obtained by multiplying (a) the amount of each then   remaining installment, sinking fund, serial maturity or other required   payments of principal, including payment at final maturity, in respect   thereof, by (b) the number of years (calculated to the nearest one-twelfth)   that will elapse between such date and the making of such payment; by
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          the   then outstanding principal amount of such Indebtedness.
  

Section 1.02.  Other Definitions.

	
   
 	
  Term
  	
   
 	
  
Defined
   in
   Section
  	
   
 
	
   
 	
  

  	
   
 	
  

  	
   
 
	
  
 
  	
  
“Affiliate Transaction”
  	
  
 
  	
  
4.11
  	
  
 
  
	
  
 
  	
  
“Asset Sale Offer”
  	
  
 
  	
  
4.10
  	
  
 
  
	
  
 
  	
  
“Authentication Order”
  	
  
 
  	
  
2.02
  	
  
 
  
	
   
  	
  
“Change of Control Offer”
  	
  
 
  	
  
4.14
  	
  
 
  
	
  
 
  	
  
“Change of Control Payment”
  	
  
 
  	
  
4.14
  	
  
 
  
	
  
 
  	
  
“Change of Control Payment Date”
  	
  
 
  	
  
4.14
  	
  
 
  
	
  
 
  	
  
“Covenant Defeasance”
  	
  
 
  	
  
8.03
  	
  
 
  
	
  
 
  	
  
“DTC”
  	
  
 
  	
  
2.01
  	
  
 
  
	
   
  	
  
“Event of Default”
  	
  
 
  	
  
6.01
  	
  
 
  
	
  
 
  	
  
“Excess Proceeds”
  	
  
 
  	
  
4.10
  	
  
 
  
	
  
 
  	
  
“Institutional Accredited Investor”
  	
  
 
  	
  
2.07
  	
  
 
  
	
  
 
  	
  
“Legal Defeasance”
  	
  
 
  	
  
8.02
  	
  
 
  
	
  
 
  	
  
“Offer Amount”
  	
  
 
  	
  
3.08
  	
  
 
  
	
   
  	
  
“Offer Period”
  	
  
 
  	
  
3.08
  	
  
 
  
	
  
 
  	
  
“offshore transaction”
  	
  
 
  	
  
2.07
  	
  
 
  
	
  
 
  	
  
“Paying Agent”
  	
  
 
  	
  
2.04
  	
  
 
  
	
  
 
  	
  
“Payment Default”
  	
  
 
  	
  
6.01
  	
  
 
  

27

	
   
 	
  
Term
  	
   
 	
  
Defined
   in
   Section
  	
   
 
	
  
 
  	
  

  	
  
 
  	
  

  	
  
 
  
	
  
 
  	
  
“Permitted Debt”
  	
  
 
  	
  
4.09
  	
  
 
  
	
  
 
  	
  
“Purchase Date”
  	
  
 
  	
  
3.08
  	
  
 
  
	
   
  	
  
“Registrar”
  	
  
 
  	
  
2.04
  	
  
 
  
	
  
 
  	
  
“Related Proceedings”
  	
  
 
  	
  
12.09
  	
  
 
  
	
  
 
  	
  
“Repurchase Offer”
  	
  
 
  	
  
3.08
  	
  
 
  
	
  
 
  	
  
“Restricted Payments”
  	
  
 
  	
  
4.07
  	
  
 
  
	
  
 
  	
  
“Specified Courts”
  	
  
 
  	
  
12.09
  	
  
 
  
	
   
  	
  
“Suspended Covenants”
  	
  
 
  	
  
4.21
  	
  
 
  
	
  
 
  	
  
“Suspension Condition”
  	
  
 
  	
  
4.21
  	
  
 
  

Section 1.03.  Incorporation by Reference of Trust Indenture Act.

                       Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.

                       The following TIA terms used in this Indenture have the following meanings:

                       “indenture securities” means the Notes;

                       “indenture security Holder” means a Holder of a Note;

                       “indenture to be qualified” means this Indenture;

                       “indenture trustee” or “institutional trustee” means the Trustee; and

                       “obligor” on the Notes means the Company and any successor obligor upon the Notes.

                       All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to them.

Section 1.04.  Rules of Construction.

	
  
 
  	
  
            (a)         Unless   the context otherwise requires:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (i)          a   term has the meaning assigned to it;
  
	
  
 
  	
  
 
  
	
   
  	
  
            (ii)         an   accounting term not otherwise defined has the meaning assigned to it in   accordance with GAAP;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (iii)        “or”   is not exclusive;
  

28

	
  
 
  	
  
            (iv)        words   in the singular include the plural, and in the plural include the singular;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (v)         provisions   apply to successive events and transactions; and
  
	
   
  	
  
 
  
	
  
 
  	
  
            (vi)        references   to sections of or rules under the Securities Act shall be deemed to include   substitute, replacement of successor sections or rules adopted by the SEC   from time to time.
  

ARTICLE TWO
 THE NOTES

Section 2.01.  Form and Dating.  

                      (a)          General.  The Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A hereto.  The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage.  Each Note shall be dated the date of its authentication.  The Notes shall be issued in registered, global form without interest coupons and only shall be in minimum denominations of $1,000 and integral multiples of $1,000 in excess thereof.  

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

                      (b)          Global Notes.  Notes issued in global form shall be substantially in the form of Exhibit A attached hereto (and shall include the Global Note Legend thereon and the “Schedule of Exchanges of Interests in the Global Note” attached thereto).  Notes issued in definitive form shall be substantially in the form of Exhibit A attached hereto (but without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto).  Each Global Note shall represent such of the outstanding Notes as shall be specified therein and each shall provide that it shall represent the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby shall be made by the Trustee in accordance with instructions given by the Holder thereof as required by Section 2.07 hereof.

                      (c)          Regulation S Global Notes.  Notes offered and sold in reliance on Regulation S shall be issued initially in the form of the Legended Regulation S Global Note, which shall be deposited on behalf of the purchasers of the Notes represented thereby with the Trustee, as custodian for The Depository Trust Company (“DTC”) in New York,  New York, and registered in the name of the Depositary or the nominee of the Depositary for the accounts of designated agents holding on behalf of Euroclear or Clearstream, duly executed by the Company and authenticated by the Trustee as hereinafter provided.  Following the termination of the

29

Restricted Period, beneficial interests in the Legended Regulation S Global Note shall be exchanged for beneficial interests in Unlegended Regulation S Global Notes pursuant to the Applicable Procedures.  Simultaneously with the authentication of Unlegended Regulation S Global Notes, the Trustee shall cancel the Legended Regulation S Global Note.  The aggregate principal amount of the Regulation S Global Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depositary or its nominee, as the case may be, in connection with transfers of interest as hereinafter provided.

                      (d)          Euroclear and Clearstream Procedures Applicable.  The provisions of the “Operating Procedures of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and the “General Terms and Conditions of Cedel Bank” and “Customer Handbook” of Clearstream shall be applicable to transfers of beneficial interests in the Regulation S Global Notes that are held by Participants through Euroclear or Clearstream.

Section 2.02.  Execution and Authentication.

                      Two Officers of the Company shall sign the Notes for the Company by manual or facsimile signature.

                      If an Officer whose signature is on a Note no longer holds that office at the time a Note is authenticated, the Note shall nevertheless be valid.

                      A Note shall not be valid until authenticated by the manual signature of the Trustee.  Such signature shall be conclusive evidence that the Note has been authenticated under this Indenture.

                      The aggregate principal amount of Notes which may be authenticated and delivered under this Indenture is unlimited.  The Company may, subject to Article Four of this Indenture and applicable law, issue Additional Notes under this Indenture, including Exchange Notes.  The Notes issued on the Closing Date and any Additional Notes subsequently issued shall be treated as a single class for all purposes under this Indenture.

                      The Trustee shall, upon a written order of the Company signed by two Officers of the Company (an “Authentication Order”), authenticate Notes for original issue on the date hereof of $250 million.  At any time and from time to time after the execution of this Indenture, the Trustee shall, upon receipt of an Authentication Order, authenticate Notes for original issue in aggregate principal amount specified in such Authentication Order.  The Authentication Order shall specify the amount of Notes to be authenticated and the date on which the Notes are to be authenticated.

                      The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Notes.  An authenticating agent may authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of the Company.

30

Section 2.03.  Methods of Receiving Payments on the Notes.

                      If a Holder of $1.0 million or more of Notes has given wire transfer instructions to the Company, the Company shall pay all principal, interest and premium and Liquidated Damages, if any, on that Holder’s Notes in accordance with those instructions.  All other payments on Notes shall be made at the office or agency of the Paying Agent and Registrar within the City and State of New York unless the Company elects to make interest payments by check mailed to the Holders at their addresses set forth in the register of Holders.

Section 2.04.  Registrar and Paying Agent.

                      (a)          The Company shall maintain an office or agency where Notes may be presented for registration of transfer or for exchange (“Registrar”) and an office or agency where Notes may be presented for payment (“Paying Agent”).  The Registrar shall keep a register of the Notes and of their transfer and exchange.  The Company may appoint one or more co-registrars and one or more additional paying agents.  The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any additional paying agent.  The Company may change any Paying Agent or Registrar without prior notice to any Holder.  The Company shall notify the Trustee in writing of the name and address of any Agent not a party to
this Indenture.  If the Company fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such.  The Company or any of its Subsidiaries may act as Paying Agent or Registrar.

                      (b)          The Company initially appoints DTC to act as Depositary with respect to the Global Notes.

                      (c)          The Company initially appoints the Trustee to act as the Registrar and Paying Agent and to act as Custodian with respect to the Global Notes.

Section 2.05.  Paying Agent to Hold Money in Trust.

                      The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal, premium or Liquidated Damages, if any, or interest on the Notes, and shall notify the Trustee of any default by the Company in making any such payment.  While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying Agent (if other than the Company or one of its Subsidiaries) shall have no further liability for the money.  If the Company or one of its Subsidiaries acts as Paying Agent, it
shall segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as Paying Agent.  Upon any bankruptcy or reorganization proceedings relating to the Company, the Trustee shall serve as Paying Agent for the Notes.

31

Section 2.06.  Holder Lists.

                      The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of all Holders and shall otherwise comply with TIA § 312(a).  If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least seven Business Days before each interest payment date and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of the Holders of Notes and the Company shall otherwise comply with TIA § 312(a).

Section 2.07.  Transfer and Exchange.

                      (a)          Transfer and Exchange of Global Notes.  A Global Note may not be transferred as a whole except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.  All Global Notes shall be exchanged by the Company for Definitive Notes if (i) DTC (A) notifies the Company that it is unwilling or unable to continue as Depositary for the Global Notes and the Company fails to appoint a successor Depositary within 90 days after receiving such notice or that it (B) has ceased to be a clearing agency registered under the Exchange Act and the Company fails to appoint a successor
Depositary within 90 days after becoming aware of such condition; (ii) the Company, at its option, notifies the Trustee in writing that it elects to cause the issuance of Definitive Notes; provided that in no event shall the Legended Regulation S Global Note be exchanged by the Company for Definitive Notes prior to the expiration of the Restricted Period; or (iii) there shall have occurred and be continuing a Default or Event of Default with respect to the Notes.  Upon the occurrence of any of the preceding events in (i), (ii) or (iii) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Trustee.  Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.08 and 2.11 hereof.  Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.07 or Section 2.08 or 2.11 hereof, shall be authenticated and delivered in
the form of, and shall be, a Global Note.  A Global Note may not be exchanged for another Note other than as provided in this Section 2.07(a); however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 2.07(b) or (c) hereof.

                      (b)          Transfer and Exchange of Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial interests in the Global Notes shall be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures.  Beneficial interests in the Restricted Global Notes shall be subject to restrictions on transfer comparable to those set forth herein to the extent required by the Securities Act.  Transfers of beneficial interests in the Global Notes also shall require compliance with either subparagraph (i) or (ii) below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

	
  
 
  	
  
            (i)          Transfer of Beneficial Interests in the Same Global   Note.  Beneficial interests   in any Restricted Global Note may be transferred to Persons who take delivery   thereof in the form of a beneficial interest in the same Restricted Global   Note in accordance with the transfer restrictions set forth in the Private   Placement Legend; provided,   however, that prior to the expiration of the Restricted Period, transfers of   beneficial interests in the Legended Regulation S Global Note may not be made   to a U.S. Person or for the account or benefit of a U.S. Person (other than   the Initial Purchaser).  Beneficial   interests in any Unrestricted Global Note may be transferred to Persons who   take delivery thereof in the form of a beneficial interest in an Unrestricted   Global Note.  No written orders
or   instructions shall be required to be delivered to the Registrar to effect the   transfers described in this Section 2.07(b)(i).
  

32

	
  
 
  	
  
            (ii)         All Other Transfers and Exchanges of Beneficial   Interests in Global Notes.    In connection with all transfers and exchanges of beneficial interests   that are not subject to Section 2.07(b)(i) above, the transferor of such   beneficial interest must deliver to the Registrar either (A) (1) a   written order from a Participant or an Indirect Participant given to the   Depositary in accordance with the Applicable Procedures directing the   Depositary to credit or cause to be credited a beneficial interest in another   Global Note in an amount equal to the beneficial interest to be transferred   or exchanged and (2) instructions given in accordance with the   Applicable Procedures containing information regarding the Participant   account to be credited with such increase or (B) (1) a written   order
from a Participant or an Indirect Participant given to the Depositary   in accordance with the Applicable Procedures directing the Depositary to   cause to be issued a Definitive Note in an amount equal to the beneficial   interest to be transferred or exchanged and (2) instructions given by   the Depositary to the Registrar containing information regarding the Person   in whose name such Definitive Note shall be registered to effect the transfer   or exchange referred to in (1) above; provided   that in no event shall Definitive Notes be issued upon the transfer or   exchange of beneficial interests in the Legended Regulation S Global   Note prior to the expiration of the Restricted Period.  Upon consummation of an Exchange Offer by   the Company in accordance with Section 2.07(f) hereof, the requirements   of this Section 2.07(b)(ii) shall be deemed to have been satisfied upon   receipt by the Registrar of the instructions contained in the Letter of Transmittal
delivered by the Holder of such beneficial interests in the Restricted Global   Notes.  Upon satisfaction of all of   the requirements for transfer or exchange of beneficial interests in Global   Notes contained in this Indenture and the Notes or otherwise applicable under   the Securities Act, the Trustee shall adjust the principal amount at maturity   of the relevant Global Notes pursuant to Section 2.07(i) hereof.
  
	
   
  	
  
 
  
	
  
 
  	
  
            (iii)        Transfer of Beneficial Interests to Another   Restricted Global Note.  A   beneficial interest in any Restricted Global Note may be transferred to a   Person who takes delivery thereof in the form of a beneficial interest in   another Restricted Global Note if the transfer complies with the requirements   of Section 2.07(b)(ii) above and the Registrar receives the following:
  

	
  
 
  	
  
               (A)          if   the transferee shall take delivery in the form of a beneficial interest in   the 144A Global Note, then the transferor must deliver a certificate in the   form of Exhibit B hereto, including the certifications in item (1) thereof;   and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
               (B)          if   the transferee shall take delivery in the form of a beneficial   interest in a Legended Regulation S Global Note, then the transferor   must deliver a certificate in the form of Exhibit B hereto, including   the certifications in item (2) thereof.
  

33

	
  
 
  	
  
            (iv)          Transfer and Exchange of Beneficial Interests in a   Restricted Global Note for Beneficial Interests in the Unrestricted Global   Note.  A beneficial   interest in any Restricted Global Note may be exchanged by any Holder thereof   for a beneficial interest in an Unrestricted Global Note or transferred to a   Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted   Global Note if the exchange or transfer complies with the requirements of   Section 2.07(b)(ii) above and:
  

	
  
 
  	
  
               (A)          such   exchange or transfer is effected pursuant to the Exchange Offer in accordance   with the Registration Rights Agreement and the Holder of the beneficial   interest to be transferred, in the case of an exchange, or the transferee, in   the case of a transfer, certifies in the applicable Letter of Transmittal   that it is not (1) a Person participating in the distribution of the   Exchange Notes or (2) a Person who is an affiliate (as defined in   Rule 144) of the Company;
  
	
   
  	
  
 
  
	
  
 
  	
  
               (B)          such   transfer is effected pursuant to the Shelf Registration Statement in   accordance with the Registration Rights Agreement;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
               (C)          such   transfer is effected by a Broker-Dealer pursuant to the Exchange Offer   Registration Statement in accordance with the Registration Rights Agreement;   or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
               (D)          the   Registrar receives the following:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
               (1)          if   the Holder of such beneficial interest in a Restricted Global Note proposes   to exchange such beneficial interest for a beneficial interest in an   Unrestricted Global Note, a certificate from such Holder in the form of   Exhibit C hereto, including the certifications in item (1)(a)   thereof; or
  
	
   
  	
  
 
  
	
  
 
  	
  
               (2)          if   the Holder of such beneficial interest in a Restricted Global Note proposes   to transfer such beneficial interest to a Person who shall take delivery   thereof in the form of a beneficial interest in an Unrestricted Global Note,   a certificate from such Holder in the form of Exhibit B hereto, including the   certifications in item (4) thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
and, in each   such case set forth in this subparagraph (D), if the Registrar so   requests or if the Applicable Procedures so require, an Opinion of Counsel in   form reasonably acceptable to the Registrar to the effect that such exchange   or transfer is in compliance with the Securities Act and that the restrictions   on transfer contained herein and in the Private Placement Legend are no   longer required in order to maintain compliance with the Securities Act.
  

                     If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an Unrestricted Global Note has not yet been issued, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate principal amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above.

34

                    Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global Note.

	
  
 
  	
  
          (c)          Transfer or Exchange of Beneficial Interests for   Definitive Notes.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (i)          Beneficial Interests in Restricted Global Notes to   Restricted Definitive Notes.    If any Holder of a beneficial interest in a Restricted Global Note   proposes to exchange such beneficial interest for a Restricted Definitive   Note or to transfer such beneficial interest to a Person who takes delivery   thereof in the form of a Restricted Definitive Note, then, upon receipt by   the Registrar of the following documentation:
  

	
   
  	
  
          (A)          if   the Holder of such beneficial interest in a Restricted Global Note proposes   to exchange such beneficial interest for a Restricted Definitive Note, a   certificate from such Holder in the form of Exhibit C hereto, including   the certifications in item (2)(a) thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (B)          if   such beneficial interest is being transferred to a QIB in accordance with   Rule 144A under the Securities Act, a certificate to the effect set   forth in Exhibit B hereto, including the certifications in item (1)   thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (C)          if   such beneficial interest is being transferred to an Institutional Accredited   Investor in reliance on an exemption from the registration requirements of   the Securities Act other than that listed in subparagraph (B) above, a   certificate to the effect set forth in Exhibit B hereto, including the certifications,   certificates and Opinion of Counsel required by item (3)(b) thereof, if   applicable; or
  
	
  
 
  	
  
 
  
	
   
  	
  
          (D)          if   such beneficial interest is being transferred to the Company or any of its   Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,   including the certifications in item (3)(a) thereof,
  

	
  
 
  	
  
the Trustee   shall cause the aggregate principal amount of the applicable Global Note to   be reduced accordingly pursuant to Section 2.07(i) hereof, and the   Company shall execute and the Trustee shall authenticate and deliver to the   Person designated in the instructions a Definitive Note in the appropriate   principal amount.  Any Definitive Note   issued in exchange for a beneficial interest in a Restricted Global Note   pursuant to this Section 2.07(c) shall be registered in such name or   names and in such authorized denomination or denominations as the Holder of   such beneficial interest shall instruct the Registrar through instructions   from the Depositary and the Participant or Indirect Participant.  The Trustee shall deliver such Definitive   Notes to the Persons in whose names such Notes are so registered.  Any Definitive Note issued in exchange for   a beneficial interest in a Restricted Global Note pursuant to this
Section 2.07(c)(i) shall bear the Private Placement Legend and shall be   subject to all restrictions on transfer contained therein.
  

35

	
  
 
  	
  
          (ii)         Beneficial Interests in Legended Regulation S   Global Note to Definitive Notes.    A beneficial interest in the Legended Regulation S Global Note may not   be exchanged for a Definitive Note or transferred to a Person who takes   delivery thereof in the form of a Definitive Note prior to the expiration of   the Restricted Period, except in the case of a transfer pursuant to an   exemption from the registration requirements of the Securities Act other than   Rule 903 or Rule 904.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)        Beneficial Interests in Restricted Global Notes to   Unrestricted Definitive Notes.    A Holder of a beneficial interest in a Restricted Global Note may   exchange such beneficial interest for an Unrestricted Definitive Note or may   transfer such beneficial interest to a Person who takes delivery thereof in   the form of an Unrestricted Definitive Note only if:
  

	
  
 
  	
  
          (A)          such   exchange or transfer is effected pursuant to the Exchange Offer in accordance   with the Registration Rights Agreement and the Holder of such beneficial   interest, in the case of an exchange, or the transferee, in the case of a   transfer, certifies in the applicable Letter of Transmittal that it is not   (1) a Person participating in the distribution of the Exchange Notes or   (2) a Person who is an affiliate (as defined in Rule 144) of the   Company;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (B)          such   transfer is effected pursuant to the Shelf Registration Statement in   accordance with the Registration Rights Agreement;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (C)          such   transfer is effected by a Broker-Dealer pursuant to the Exchange Offer   Registration Statement in accordance with the Registration Rights Agreement;   or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (D)          the   Registrar receives the following:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (1)          if   the Holder of such beneficial interest in a Restricted Global Note proposes   to exchange such beneficial interest for a Definitive Note that does not bear   the Private Placement Legend, a certificate from such Holder in the form of   Exhibit C hereto, including the certifications in item (1)(b) thereof;   or
  
	
   
  	
  
 
  
	
  
 
  	
  
          (2)          if   the Holder of such beneficial interest in a Restricted Global Note proposes   to transfer such beneficial interest to a Person who shall take delivery   thereof in the form of a Definitive Note that does not bear the Private   Placement Legend, a certificate from such Holder in the form of   Exhibit B hereto, including the certifications in item (4) thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
and, in each   such case set forth in this subparagraph (D), if the Registrar so   requests or if the Applicable Procedures so require, an Opinion of Counsel in   form reasonably acceptable to the Registrar to the effect that such exchange   or transfer is in compliance with the Securities Act and that the   restrictions on transfer contained herein and in the Private Placement Legend   are no longer required in order to maintain compliance with the Securities Act.
  

36

	
  
 
  	
  
          (iv)        Beneficial Interests in Unrestricted Global Notes   to Unrestricted Definitive Notes.    If any Holder of a beneficial interest in an Unrestricted Global Note   proposes to exchange such beneficial interest for a Definitive Note or to   transfer such beneficial interest to a Person who takes delivery thereof in   the form of a Definitive Note, then, upon satisfaction of the conditions set   forth in Section 2.07(b)(ii) hereof, the Trustee shall cause the   aggregate principal amount of the applicable Global Note to be reduced   accordingly pursuant to Section 2.07(i) hereof, and the Company shall   execute and the Trustee shall authenticate and deliver to the Person   designated in the instructions a Definitive Note in the appropriate principal   amount.  Any Definitive Note issued in   exchange for a beneficial interest
pursuant to this Section 2.07(c)(iv)   shall be registered in such name or names and in such authorized denomination   or denominations as the Holder of such beneficial interest shall instruct the   Registrar through instructions from the Depositary and the Participant or   Indirect Participant.  The Trustee   shall deliver such Definitive Notes to the Persons in whose names such Notes   are so registered.  Any Definitive   Note issued in exchange for a beneficial interest pursuant to this   Section 2.07(c)(iv) shall not bear the Private Placement Legend.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (d)          Transfer and Exchange of Definitive Notes for   Beneficial Interests.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (i)          Restricted Definitive Notes to Beneficial Interests   in Restricted Global Notes.    If any Holder of a Restricted Definitive Note proposes to exchange   such Note for a beneficial interest in a Restricted Global Note or to   transfer such Restricted Definitive Notes to a Person who takes delivery   thereof in the form of a beneficial interest in a Restricted Global Note,   then, upon receipt by the Registrar of the following documentation:
  

	
  
 
  	
  
          (A)          if   the Holder of such Restricted Definitive Note proposes to exchange such Note   for a beneficial interest in a Restricted Global Note, a certificate from   such Holder in the form of Exhibit C hereto, including the   certifications in item (2)(b) thereof;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (B)          if   such Restricted Definitive Note is being transferred to a QIB in accordance   with Rule 144A under the Securities Act, a certificate to the effect set   forth in Exhibit B hereto, including the certifications in item (1)   thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (C)          if   such Restricted Definitive Note is being transferred to a Non-U.S. Person in   an offshore transaction in accordance with Rule 903 or Rule 904   under the Securities Act, a certificate to the effect set forth in   Exhibit B hereto, including the certifications in item (2) thereof;   or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (D)          if   such Restricted Definitive Note is being transferred to the Company or any of   its Subsidiaries, a certificate to the effect set forth hereto,
  
	
  
 
  	
  
 
  
	
   
  	
  
the Trustee   shall cancel the Restricted Definitive Note, and increase or cause to be increased   the aggregate principal amount of, in the case of clause (A) above, the   appropriate Restricted Global Note, in the case of clause (B) above, the   144A Global Note, and in the case of clause (C) above, the   Regulation S Global Note.
  

37

	
  
 
  	
  
          (ii)         Restricted Definitive Notes to Beneficial Interests   in Unrestricted Global Notes.    A Holder of a Restricted Definitive Note may exchange such Note for a   beneficial interest in an Unrestricted Global Note or transfer such Restricted   Definitive Note to a Person who takes delivery thereof in the form of a   beneficial interest in an Unrestricted Global Note only if:
  

	
  
 
  	
  
          (A)          such   exchange or transfer is effected pursuant to the Exchange Offer in accordance   with the Registration Rights Agreement and the Holder, in the case of an   exchange, or the transferee, in the case of a transfer, certifies in the   applicable Letter of Transmittal that it is not (1) a Person   participating in the distribution of the Exchange Notes or (2) a Person   who is an affiliate (as defined in Rule 144) of the Company;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (B)          such   transfer is effected pursuant to the Shelf Registration Statement in   accordance with the Registration Rights Agreement;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (C)          such   transfer is effected by a Broker-Dealer pursuant to the Exchange Offer   Registration Statement in accordance with the Registration Rights Agreement;   or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (D)          the   Registrar receives the following:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (1)          if   the Holder of such Restricted Definitive Notes proposes to exchange such   Notes for a beneficial interest in the Unrestricted Global Note, a   certificate from such Holder in the form of Exhibit C hereto, including the   certifications in item (1)(c) thereof; or
  
	
   
  	
  
 
  
	
  
 
  	
  
          (2)          if   the Holder of such Restricted Definitive Notes proposes to transfer such   Notes to a Person who shall take delivery thereof in the form of a beneficial   interest in the Unrestricted Global Note, a certificate from such Holder in   the form of Exhibit B hereto, including the certifications in   item (4) thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
and, in each   such case set forth in this subparagraph (D), if the Registrar so   requests or if the Applicable Procedures so require, an Opinion of Counsel in   form reasonably acceptable to the Registrar and the Company to the effect   that such exchange or transfer is in compliance with the Securities Act and   that the restrictions on transfer contained herein and in the Private   Placement Legend are no longer required in order to maintain compliance with   the Securities Act.
  

                    Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.07(d)(ii), the Trustee shall cancel the Unrestricted Definitive Notes and increase or cause to be increased the aggregate principal amount of the Unrestricted Global Note.

	
   
  	
  
          (iii)       Unrestricted Definitive Notes to Beneficial   Interests in Unrestricted Global Notes.  A Holder of an Unrestricted Definitive Note may exchange such   Note for a beneficial interest in an Unrestricted Global Note or transfer   such Definitive Notes to a Person who takes delivery thereof in the form of a   beneficial interest in an Unrestricted Global Note at any time.  Upon receipt of a request for such an   exchange or transfer, the Trustee shall cancel the applicable Unrestricted   Definitive Note and increase or cause to be increased the aggregate principal   amount of one of the Unrestricted Global Notes.
  

38

	
  
 
  	
  
          If   any such exchange or transfer from a Definitive Note to a beneficial interest   is effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) above at a   time when an Unrestricted Global Note has not yet been issued, the Company   shall issue and, upon receipt of an Authentication Order in accordance with   Section 2.02 hereof, the Trustee shall authenticate one or more   Unrestricted Global Notes in an aggregate principal amount equal to the   principal amount of Definitive Notes so transferred.
  

                    (e)          Transfer and Exchange of Definitive Notes for Definitive Notes.  Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.07(e), the Registrar shall register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or exchange, the requesting Holder shall present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in writing. In addition, the requesting Holder shall provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this
Section 2.07(e).

	
  
 
  	
  
          (i)          Restricted Definitive Notes to Restricted   Definitive Notes.  Any   Restricted Definitive Note may be transferred to and registered in the name   of Persons who take delivery thereof in the form of a Restricted Definitive   Note if the Registrar receives the following:
  

	
  
 
  	
  
          (A)          if   the transfer shall be made pursuant to Rule 144A under the Securities   Act, then the transferor must deliver a certificate in the form of   Exhibit B hereto, including the certifications in item (1) thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (B)          [INTENTIONALLY   OMITTED]; and
  
	
  
 
  	
  
 
  
	
   
  	
  
          (C)          if   the transfer shall be made pursuant to any other exemption from the   registration requirements of the Securities Act, then the transferor must   deliver a certificate in the form of Exhibit B hereto, including the   certifications, certificates and Opinion of Counsel required by item (3)   thereof, if applicable.
  

	
  
 
  	
  
          (ii)         Restricted Definitive Notes to Unrestricted   Definitive Notes.  Any   Restricted Definitive Note may be exchanged by the Holder thereof for an   Unrestricted Definitive Note or transferred to a Person or Persons who take   delivery thereof in the form of an Unrestricted Definitive Note if:
  

	
  
 
  	
  
          (A)          such   exchange or transfer is effected pursuant to the Exchange Offer in accordance   with the Registration Rights Agreement and the Holder, in the case of an   exchange, or the transferee, in the case of a transfer, certifies in the   applicable Letter of Transmittal that it is not (1) a Person   participating in the distribution of the Exchange Notes or (2) a Person   who is an affiliate (as defined in Rule 144) of the Company;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (B)          any   such transfer is effected pursuant to the Shelf Registration Statement in   accordance with the Registration Rights Agreement;
  

39

	
  
 
  	
  
          (C)          any   such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer   Registration Statement in accordance with the Registration Rights Agreement;   or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (D)          the   Registrar receives the following:
  
	
  
 
  	
  
 
  
	
   
  	
  
          (1)          if   the Holder of such Restricted Definitive Notes proposes to exchange such   Notes for an Unrestricted Definitive Note, a certificate from such Holder in   the form of Exhibit C hereto, including the certifications in   item (1)(d) thereof; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          if   the Holder of such Restricted Definitive Notes proposes to transfer such   Notes to a Person who shall take delivery thereof in the form of an   Unrestricted Definitive Note, a certificate from such Holder in the form of   Exhibit B hereto, including the certifications in item (4) thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
and, in each   such case set forth in this subparagraph (D), if the Registrar so   requests, an Opinion of Counsel in form reasonably acceptable to the Company   to the effect that such exchange or transfer is in compliance with the   Securities Act and that the restrictions on transfer contained herein and in   the Private Placement Legend are no longer required in order to maintain compliance   with the Securities Act.
  

	
  
 
  	
    
            (iii)          Unrestricted Definitive Notes to Unrestricted   Definitive Notes.  A Holder   of Unrestricted Definitive Notes may transfer such Notes to a Person who   takes delivery thereof in the form of an Unrestricted Definitive Note.  Upon receipt of a request to register such   a transfer, the Registrar shall register the Unrestricted Definitive Notes   pursuant to the instructions from the Holder thereof.

                    (f)          Exchange Offer.  Upon the occurrence of the Exchange Offer in accordance with the Registration Rights Agreement, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02, the Trustee shall authenticate (i) one or more Unrestricted Global Notes in an aggregate principal amount equal to the principal amount of the beneficial interests in the Restricted Global Notes tendered for acceptance by Persons that certify in the applicable Letters of Transmittal that (x) they are not participating in a distribution of the Exchange Notes and (y) they are not affiliates (as defined in Rule 144) of the Company, and accepted for exchange in the Exchange Offer and (ii) Definitive Notes in an aggregate principal
amount equal to the principal amount of the Restricted Definitive Notes accepted for exchange in the Exchange Offer.  Concurrently with the issuance of such Notes, the Trustee shall cause the aggregate principal amount of the applicable Restricted Global Notes to be reduced accordingly, and the Company shall execute and the Trustee shall authenticate and deliver to the Persons designated by the Holders of Restricted Global Notes so accepted Unrestricted Global Notes in the appropriate principal amount.  

                    (g)          Legends.  The following legends shall appear on the face of all Global Notes and Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture.

40

	
  
 
  	
  
          (i)          Private Placement Legend.  Except as permitted below, each Global   Note and each Definitive Note (and all Notes issued in exchange therefor or   substitution thereof) shall bear the legend in substantially the following   form:
  

	
  
 
  	
  
“THE   SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A   TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES   SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY   EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE   OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF THE SECURITY EVIDENCED   HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION   FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A   THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE   BENEFIT OF THE ISSUER THAT:
  
	
   
  	
  
 
  
	
  
 
  	
  
(A)          SUCH   SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY:
  

	
  
 
  	
  
(i)(a) TO A   PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER   (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING   THE REQUIREMENTS OF RULE 144A, (b) IN A TRANSACTION MEETING THE REQUIREMENTS   OF RULE 144 UNDER THE SECURITIES ACT, (c) OUTSIDE THE UNITED STATES TO A   NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR 904   UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS   DEFINED IN RULE 501 (a) (1), (2), (3) OR (7) OF THE SECURITIES ACT (AN   “INSTITUTIONAL ACCREDITED INVESTOR”)) THAT, PRIOR TO SUCH TRANSFER, FURNISHES   THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS   (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS   IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $100,000, AN   OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER THAT SUCH TRANSFER IS IN   COMPLIANCE
WITH THE SECURITIES ACT, OR (e) IN ACCORDANCE WITH ANOTHER   EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED   UPON AN OPINION OF COUNSEL IF THE ISSUER SO REQUESTS),
  
	
  
 
  	
  
 
  
	
   
  	
  
(ii)          TO   THE ISSUER, OR
  

41

	
  
 
  	
  
(iii)          PURSUANT   TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH   ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER   APPLICABLE JURISDICTION; AND
  

	
  
 
  	
  
(B)          THE   HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER   FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH   IN (A) ABOVE”.
  

	
  
 
  	
  
Notwithstanding   the foregoing, any Global Note or Definitive Note issued pursuant to   subparagraph (b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii), (e)(iii)   or (f) to this Section 2.07 (and all Notes issued in exchange therefor   or substitution thereof) shall not bear the Private Placement Legend.
  
	
   
  	
  
 
  
	
  
 
  	
  
                       (ii)          Global Note Legend.  Each Global Note shall bear a legend in   substantially the following form:
  

	
  
 
  	
  
THIS GLOBAL   NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS   NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS   HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT   THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED   PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE   EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07(a) OF THE   INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR   CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (IV) THIS GLOBAL   NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN   CONSENT OF THE COMPANY.
  

                    (h)          Regulation S Global Note Legend. The Regulation S Global Note shall bear a legend in substantially the following form:

	
   
  	
  
THE RIGHTS   ATTACHING TO THIS GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING   ITS EXCHANGE FOR DEFINITIVE NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS   DEFINED HEREIN).
  

42

                    (i)          Cancellation
and/or Adjustment of Global Notes.  At such time as all beneficial
interests in a particular Global Note have been exchanged for Definitive Notes
or a particular Global Note has been redeemed, repurchased or canceled in whole
and not in part, each such Global Note shall be returned to or retained and
canceled by the Trustee in accordance with Section 2.12 hereof.  At
any time prior to such cancellation, if any beneficial interest in a Global Note
is exchanged for or transferred to a Person who shall take delivery thereof in
the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who shall take delivery thereof in the form of a beneficial interest
in another Global Note, such other Global Note shall be increased accordingly
and an endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

                    (j)          General Provisions Relating to Transfers and Exchanges.

	
  
 
  	
  
          (i)          To   permit registrations of transfers and exchanges, the Company shall execute   and the Trustee shall authenticate Global Notes and Definitive Notes upon the   Company’s order or at the Registrar’s request.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         No   service charge shall be made to a Holder of a beneficial interest in a Global   Note or to a Holder of a Definitive Note for any registration of transfer or   exchange, but the Company may require payment of a sum sufficient to cover any   transfer tax or similar governmental charge payable in connection therewith   (other than any such transfer taxes or similar governmental charge payable   upon exchange or transfer pursuant to Sections 2.11, 3.06, 3.08, 4.10, 4.14   and 9.05 hereof).
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)        The   Registrar shall not be required to register the transfer of or exchange any   Note selected for redemption in whole or in part, except the unredeemed portion   of any Note being redeemed in part.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (iv)        All   Global Notes and Definitive Notes issued upon any registration of transfer or   exchange of Global Notes or Definitive Notes shall be the valid and legally   binding obligations of the Company, evidencing the same debt, and entitled to   the same benefits under this Indenture, as the Global Notes or Definitive   Notes surrendered upon such registration of transfer or exchange.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)         The   Company shall not be required (A) to issue, to register the transfer of   or to exchange any Notes during a period beginning at the opening of business   15 days before the day of any selection of Notes for redemption under   Section 3.02 hereof and ending at the close of business on the day of   selection, (B) to register the transfer of or to exchange any Note so selected   for redemption in whole or in part, except the unredeemed portion of any Note   being redeemed in part, (C) to register the transfer of or to exchange a   Note between a record date and the next succeeding interest payment date or   (D) to register the transfer of or to exchange a Note tendered and not   withdrawn in connection with a Change of Control Offer or an Asset Sale   Offer.
  
	
  
 
  	
  
 
  
	
   
  	
  
          (vi)        Prior   to due presentment for the registration of a transfer of any Note, the   Trustee, any Agent and the Company may deem and treat the Person in whose   name any Note is registered as the absolute owner of such Note for the   purpose of receiving payment of principal of and interest on such Notes and   for all other purposes, and none of the Trustee, any Agent or the Company   shall be affected by notice to the contrary.
  

43

	
  
 
  	
  
          (vii)       The   Trustee shall authenticate Global Notes and Definitive Notes in accordance   with the provisions of Section 2.02 hereof.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (viii)      All   certifications, certificates and Opinions of Counsel required to be submitted   to the Registrar pursuant to this Section 2.07 to effect a registration   of transfer or exchange may be submitted by facsimile with the original to   follow by first class mail.
  

Section 2.08.  Replacement Notes.

                    (a)          If any mutilated Note is surrendered to the Trustee or the Company and the Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, the Company shall issue and the Trustee, upon receipt of an Authentication Order, shall authenticate a replacement Note if the Trustee’s requirements are met.  If required by the Trustee or the Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to protect the Company, the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a Note is replaced.  The Company may charge for its expenses in replacing a Note.

                    (b)          Every replacement Note is an additional obligation of the Company and shall be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder.

Section 2.09.  Outstanding Notes.

                    (a)          The Notes outstanding at any time are all the Notes authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions hereof, and those described in this Section as not outstanding.  Except as set forth in Section 2.10 hereof, a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note; however, Notes held by the Company or a Subsidiary of the Company shall not be deemed to be outstanding for purposes of Section 3.07(b) hereof.

                    (b)          If a Note is replaced pursuant to Section 2.08 hereof, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser.

                    (c)          If the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to be outstanding and interest on it ceases to accrue.

                    (d)          If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any of the foregoing) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that date, then on and after that date such Notes shall be deemed to be no longer outstanding and shall cease to accrue interest.

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Section 2.10.  Treasury Notes.

                    In determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the Company, or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company, shall be considered as though not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that the Trustee knows are so owned shall be so disregarded.

Section 2.11.  Temporary Notes.

                    (a)          Until certificates representing Notes are ready for delivery, the Company may prepare and the Trustee, upon receipt of an Authentication Order, shall authenticate temporary Notes.  Temporary Notes shall be substantially in the form of Definitive Notes but may have variations that the Company considers appropriate for temporary Notes and as shall be reasonably acceptable to the Trustee.  Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Notes in exchange for temporary Notes.

                    (b)          Holders of temporary Notes shall be entitled to all of the benefits of this Indenture.

Section 2.12.  Cancellation.

                    The Company at any time may deliver Notes to the Trustee for cancellation.  The Registrar and Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of transfer, exchange or payment.  The Trustee and no one else shall cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation and shall dispose of canceled Notes in accordance with its procedures for the disposition of canceled securities in effect as of the date of such disposition (subject to the record retention requirement of the Exchange Act).  Certification of the disposition of all canceled Notes shall be delivered to the Company.  The Company may not issue new Notes to replace Notes that it has paid or that have been delivered to the Trustee for cancellation.

Section 2.13.  Defaulted Interest.

                    If the Company defaults in a payment of interest on the Notes, it shall pay the defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special record date, in each case at the rate provided in the Notes and in Section 4.01 hereof.  The Company shall notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment.  The Company shall fix or cause to be fixed each such special record date and payment date, provided that no such special record date shall be less than 10 days prior to the related payment date for such defaulted interest.  At least 15 days before the special record date, the Company (or, upon the written request of the Company, the
Trustee in the name and at the expense of the Company) shall mail or cause to be mailed to Holders a notice that states the special record date, the related payment date and the amount of such interest to be paid.

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Section 2.14.  CUSIP Numbers.

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

ARTICLE THREE
 REDEMPTION AND OFFERS TO 
 PURCHASE

Section 3.01.  Notices to Trustee.

                    If the Company elects to redeem Notes pursuant to the optional redemption provisions of Section 3.07 hereof, it shall furnish to the Trustee, at least 30 days but not more than 60 days before a redemption date, an Officers’ Certificate setting forth (i) the clause of this Indenture pursuant to which the redemption shall occur, (ii) the redemption date, (iii) the principal amount of Notes to be redeemed and (iv) the redemption price.

Section 3.02.  Selection of Notes to Be Redeemed.

                    (a)          If less than all of the Notes are to be redeemed at any time, the Trustee shall select the Notes to be redeemed among the Holders of the Notes in compliance with the requirements of the principal national securities exchange, if any, on which the Notes are listed or, if the Notes are not so listed, on a pro rata basis, by lot or in accordance with any other method the Trustee considers fair and appropriate.  In the event of partial redemption by lot, the particular Notes to be redeemed shall be selected, unless otherwise provided herein, not less than 30 nor more than 60 days prior to the redemption date by the Trustee from the outstanding Notes not previously called for redemption.

                    (b)          The Trustee shall promptly notify the Company in writing of the Notes selected for redemption and, in the case of any Note selected for partial redemption, the principal amount at maturity thereof to be redeemed.  No Notes in amounts of $1,000 or less shall be redeemed in part.  Notes and portions of Notes selected shall be in amounts of $1,000 or whole multiples of $1,000; except that if all of the Notes of a Holder are to be redeemed, the entire outstanding amount of Notes held by such Holder, even if not a multiple of $1,000, shall be redeemed.  Except as provided in the preceding sentence, provisions of this Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption.

Section 3.03.  Notice of Redemption.

                    (a)          At least 30 days but not more than 60 days before a redemption date, the Company shall mail or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its registered address.

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                    The notice shall identify the Notes to be redeemed and shall state:

	
  
 
  	
  
          (i)          the   redemption date;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ii)         the   redemption price;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)        if   any Note is being redeemed in part, the portion of the principal amount at   maturity of such Note to be redeemed and that, after the redemption date upon   surrender of such Note, a new Note or Notes in principal amount equal to the   unredeemed portion of the original Note shall be issued in the name of the   Holder thereof upon cancellation of the original Note;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)        the   name and address of the Paying Agent;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
   
  	
  
          (v)         that   Notes called for redemption must be surrendered to the Paying Agent to   collect the redemption price and become due on the date fixed for redemption;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vi)        that,   unless the Company defaults in making such redemption payment, interest, if   any, on Notes called for redemption ceases to accrue on and after the   redemption date;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vii)       the   paragraph of the Notes and/or Section of this Indenture pursuant to which the   Notes called for redemption are being redeemed; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (viii)      that   no representation is made as to the correctness or accuracy of the CUSIP   number, if any, listed in such notice or printed on the Notes.
  

                    (b)          At
the Company’s request, the Trustee shall give the notice of redemption in
the Company’s name and at its expense; provided, however, that the
Company shall have delivered to the Trustee, at least 45 days prior to the
redemption date, an Officers’ Certificate requesting that the Trustee give
such notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph.  The notice, if mailed in the manner
provided herein shall be presumed to have been given, whether or not the Holder
receives such notice.

Section 3.04.  Effect of Notice of Redemption.

                    Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called for redemption become irrevocably due and payable on the redemption date at the redemption price.  A notice of redemption may not be conditional.

Section 3.05.  Deposit of Redemption Price.

                    (a)          One Business Day prior to the redemption date, the Company shall deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption price of and accrued interest and Liquidated Damages, if any, on all Notes to be redeemed on that date.  The Trustee or the Paying Agent shall promptly return to the Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the redemption price of, and accrued interest on, all Notes to be redeemed.

47

                    (b)          If the Company complies with the provisions of the preceding paragraph, on and after the redemption date, interest shall cease to accrue on the Notes or the portions of Notes called for redemption.  If a Note is redeemed on or after an interest record date but on or prior to the related interest payment date, then any accrued and unpaid interest shall be paid to the Person in whose name such Note was registered at the close of business on such record date.  If any Note called for redemption shall not be so paid upon surrender for redemption because of the failure of the Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption date until such principal is paid, and to the extent lawful on any interest not paid on such
unpaid principal, in each case at the rate provided in the Notes and in Section 4.01 hereof.

Section 3.06.  Notes Redeemed in Part.

                    Upon surrender of a Note that is redeemed in part, the Company shall issue and the Trustee shall authenticate for the Holder at the expense of the Company a new Note equal in principal amount to the unredeemed portion of the Note surrendered.  No Notes in denominations of $1,000 or less shall be redeemed in part.

Section 3.07.  Optional Redemption.

                    (a)          Except as set forth in clause (b) of this Section 3.07, the Company shall not have the option to redeem the Notes pursuant to this Section 3.07 prior to July 15, 2009.  Thereafter, the Company may redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if any, thereon, to the applicable redemption date, if redeemed during the twelve-month period beginning on July 15 of the years indicated below (subject to the right of Holders on the relevant record date to receive interest due on the related interest payment date):

	
   
 	
  
Year
  	
   
 	
  
Percentage
  	
   
 
	
   
 	
  

  	
   
 	
  

  	
  

  	
   
 
	
   
  	
  
2009
  	
  
 
  	
  
 
  	
  
103.625
  	
  
%
  
	
  
 
  	
  
2010
  	
  
 
  	
  
 
  	
  
101.813
  	
  
%
  
	
  
 
  	
  
2011 and thereafter
  	
  
 
  	
  
 
  	
  
100.000
  	
  
%
  

                    (b)          At any time prior to July 15, 2008, the Company may redeem up to 35% of the aggregate principal amount of Notes originally issued hereunder (including any Additional Notes) at a redemption price of 107.250% of the principal amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any, to the redemption date, with the net cash proceeds of one or more Equity Offerings of the Company; provided that (A) at least 65% of the aggregate principal amount of the Notes originally issued under this Indenture (including any Additional Notes) remains outstanding immediately after the occurrence of such redemption, excluding Notes held by the Company and its Subsidiaries; and (B) the redemption must occur within 90 days of the date of the closing of such Equity
Offering.  

                    (c)          In addition, at any time prior to July 15, 2009, the Company may redeem all or part of the Notes upon not less than 30 days’ nor more than 60 days’ notice at a redemption price equal to the sum of (i) the principal amount thereof, plus (ii) accrued and unpaid interest, if any, to the applicable date of redemption, plus (iii) the Make-Whole Premium.

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                    (d)          Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

Section 3.08.  Repurchase Offers.

                    In the event that, pursuant to Section 4.10 or 4.14 hereof, the Company shall be required to commence an offer to all Holders to purchase their respective Notes (a “Repurchase Offer”), it shall follow the procedures specified in such Sections and, to the extent not inconsistent therewith, the procedures specified below.

                    The Repurchase Offer shall remain open for a period of no less than 30 days and no more than 60 days following its commencement, except to the extent that a longer period is required by applicable law (the “Offer Period”).  No later than three Business Days after the termination of the Offer Period (the “Purchase Date”), the Company shall purchase the principal amount of Notes required to be purchased pursuant to Section 4.10 or 4.14 hereof (the “Offer Amount”) or, if less than the Offer Amount has been tendered, all Notes tendered in response to the Repurchase Offer.  Payment for any Notes so purchased shall be made in the same manner as interest payments are made.

                    If the Purchase Date is on or after an interest record date and on or before the related interest payment date, any accrued and unpaid interest shall be paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional interest shall be payable to Holders who tender Notes pursuant to the Repurchase Offer.

                    Upon the commencement of a Repurchase Offer, the Company shall send, by first class mail, a notice to the Trustee and each of the Holders, with a copy to the Trustee.  The notice shall contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Repurchase Offer.  The Repurchase Offer shall be made to all Holders.  The notice, which shall govern the terms of the Repurchase Offer, shall state:

	
  
 
  	
  
          (i)          that   the Repurchase Offer is being made pursuant to this Section 3.08 and   Section 4.10 or Section 4.14 hereof, and the length of time the   Repurchase Offer shall remain open;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ii)         the   Offer Amount, the purchase price and the Purchase Date;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)        that   any Note not tendered or accepted for payment shall continue to accrue   interest and Liquidated Damages, if any;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)        that,   unless the Company defaults in making such payment, any Note (or portion   thereof) accepted for payment pursuant to the Repurchase Offer shall cease to   accrue interest and Liquidated Damages, if any, after the Purchase Date;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)         that   Holders electing to have a Note purchased pursuant to a Repurchase Offer may   elect to have Notes purchased in integral multiples of $1,000 only;
  

49

	
  
 
  	
  
          (vi)        that   Holders electing to have a Note purchased pursuant to any Repurchase Offer   shall be required to surrender the Note, with the form entitled “Option of   Holder to Elect Purchase” on the reverse of the Note completed, or transfer   by book-entry transfer, to the Company, a depositary, if appointed by the   Company, or a Paying Agent at the address specified in the notice at least   three days before the Purchase Date;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vii)       that   Holders shall be entitled to withdraw their election if the Company, the   Depositary or the Paying Agent, as the case may be, receives, not later than   the expiration of the Offer Period, a telegram, telex, facsimile transmission   or letter setting forth the name of the Holder, the principal amount of the   Note the Holder delivered for purchase and a statement that such Holder is   withdrawing his election to have such Note purchased;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (viii)      that,   if the aggregate amount of Notes surrendered by Holders exceeds the Offer   Amount, the Trustee shall, subject in the case of a Repurchase Offer made   pursuant to Section 4.10 to the provisions of Section 4.10, select the Notes   to be purchased on a pro rata basis (with such adjustments as may be deemed   appropriate by the Trustee so that only Notes in denominations of $1,000, or   integral multiples thereof, shall be purchased); and
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ix)        that   Holders whose Notes were purchased only in part shall be issued new Notes   equal in principal amount to the unpurchased portion of the Notes surrendered   (or transferred by book-entry transfer).
  

                    On the Purchase Date, the Company shall, to the extent lawful, subject in the case of a Repurchase Offer made pursuant to Section 4.10 to the provisions of Section 4.10, accept for payment on a pro rata basis to the extent necessary, the Offer Amount of Notes (or portions thereof) tendered pursuant to the Repurchase Offer, or if less than the Offer Amount has been tendered, all Notes tendered, and shall deliver to the Trustee an Officers’ Certificate stating that such Notes (or portions thereof) were accepted for payment by the Company in accordance with the terms of this Section 3.08.  The Company, the Depositary or the Paying Agent, as the case may be, shall promptly (but in any case not later than three days after the Purchase Date) mail or deliver to each tendering Holder an amount equal to the purchase price of Notes tendered
by such Holder, as the case may be, and accepted by the Company for purchase, and the Company, shall promptly issue a new Note.  The Trustee, upon written request from the Company shall authenticate and mail or deliver such new Note to such Holder, in a principal amount at maturity equal to any unpurchased portion of the Note surrendered.  Any Note not so accepted shall be promptly mailed or delivered by the Company to the respective Holder thereof.  The Company shall publicly announce the results of the Repurchase Offer on the Purchase Date.

                    The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act, and any other securities laws and regulations thereunder to the extent such laws or regulations are applicable in connection with the repurchase of the Notes pursuant to a Repurchase Offer and shall not be deemed to have breached its obligations under Section 3.08, 4.10 or 4.14 by virtue of such compliance.

50

Section 3.09.  Application of Trust Money.

                    All money deposited with the Trustee pursuant to Section 11.02 shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money has been deposited with the Trustee; but such money need not be segregated from other funds except to the extent required by law.

ARTICLE FOUR
 COVENANTS

Section 4.01.  Payment of Notes.

                    (a)          The Company shall pay or cause to be paid the principal of, premium, if any, and interest on the Notes on the dates and in the manner provided in the Notes.  Principal, premium, if any, and interest shall be considered paid on the date due if the Paying Agent, if other than the Company or one of its Subsidiaries, holds as of 11:00 a.m. Eastern Time on the due date money deposited by the Company in immediately available funds and designated for and sufficient to pay all principal, premium, if any, and interest then due.  The Company shall pay all Liquidated Damages, if any, in the same manner on the dates and in the amounts set forth in the Registration Rights Agreement.

                    (b)          The Company shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then applicable interest rate on the Notes to the extent lawful; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest, and Liquidated Damages (without regard to any applicable grace period) at the same rate to the extent lawful.

Section 4.02.  Maintenance of Office or Agency.

                    (a)          The Company shall maintain in the Borough of Manhattan, The City of New York, an office or agency (which may be an office of the Trustee or an agent of the Trustee, Registrar or co-registrar) where Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served.  The Company shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency.  If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the
Trustee.

                    (b)          The
Company may also from time to time designate one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in the Borough of
Manhattan, The City of New York for such purposes.  The Company shall give
prompt written notice to the Trustee of any such designation or rescission and
of any change in the location of any such other office or agency.

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                    (c)          The Company hereby designates the Corporate Trust Office of the Trustee as one such office or agency of the Company in accordance with Section 2.04 of this Indenture.

Section 4.03.  Reports.

                    (a)          The Company shall furnish to the Trustee and, upon request, to beneficial owners and prospective investors, a copy of all of the information and reports referred to in clauses (i) and (ii) below within the time periods specified in the SEC’s rules and regulations:

	
  
 
  	
  
          (i)          all   quarterly and annual financial information that would be required to be   contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were   required to file such Forms, including a “Management’s Discussion and   Analysis of Financial Condition and Results of Operations” and, with respect   to the annual information only, a report on the annual financial statements   by the Company’s certified independent accountants; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         all   current reports that would be required to be filed with the SEC on Form 8--K   if the Company were required to file such reports.
  

                    (b)          Whether or not required by the SEC, the Company will comply with the periodic reporting requirements of the Exchange Act and will file the reports specified to in clauses (a)(i) and (ii) with the SEC within the time periods specified above (unless the SEC will not accept such a filing).  The Company agrees that it will not take any action for the purpose of causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the SEC will not accept the Company’s filings for any reason, the Company will post the reports referred to in paragraph (a) above on its website within the time periods that would apply if the Company were required to file those reports with the SEC.

                    (c)          If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then the quarterly and annual financial information required by paragraphs (a) and (b) above shall include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of the financial condition and results of operations of the Company and its Restricted Subsidiaries separate from the financial condition and results of operations of the Unrestricted Subsidiaries of the Company.

Section 4.04.  Compliance Certificate.

                    (a)          The Company and each Guarantor (to the extent that such Guarantor is so required under the TIA) shall deliver to the Trustee, within 90 days after the end of each fiscal year, an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed,

52

performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his or her knowledge, the Company has kept, observed, performed and fulfilled its obligations under this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto) and that to the best of his or her knowledge no event has occurred and remains in existence by reason of which payments on account of the principal of or interest, if any, on the Notes is prohibited or if such event has occurred, a description of the event and what action the Company is taking or proposes to take with respect thereto.

                    (b)          So long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants, the year-end financial statements delivered pursuant to Section 4.03(a) above shall be accompanied by a written statement of the Company’s independent public accountants (which shall be a firm of established national reputation) that in making the examination necessary for certification of such financial statements, nothing has come to their attention that would lead them to believe that the Company has violated any provisions of Article Four or Article Five hereof or, if any such violation has occurred, specifying the nature and period of existence thereof, it being understood that such accountants shall not be liable directly or indirectly to any Person
for any failure to obtain knowledge of any such violation.

                    (c)          The Company shall, so long as any of the Notes are outstanding, deliver to the Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default, an Officers  Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

Section 4.05.  Taxes.

                    The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency, any taxes, assessments, and governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of the Notes.

Section 4.06.  Stay, Extension and Usury Laws.

                    The Company and each of the Guarantors covenant (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the Company and each of the Guarantors (to the extent that it may lawfully do so) hereby expressly waive all benefit or advantage of any such law, and covenant that they shall not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law has been enacted.

Section 4.07.  Restricted Payments.

                    (a)          The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly:

53

	
  
 
  	
  
          (i)          declare   or pay (without duplication) any dividend or make any other payment or   distribution on account of the Company’s or any of its Restricted   Subsidiaries’ Equity Interests (including, without limitation, any payment in   connection with any merger or consolidation involving the Company or any of   its Restricted Subsidiaries) or to the direct or indirect holders of the   Company’s or any of its Restricted Subsidiaries’ Equity Interests in their   capacity as such (other than dividends, payments or distributions payable in   Equity Interests (other than Disqualified Stock) of the Company or to the   Company or a Restricted Subsidiary of the Company);
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         purchase,   redeem or otherwise acquire or retire for value (including, without   limitation, in connection with any merger or consolidation involving the   Company or any of its Restricted Subsidiaries) any Equity Interests of the   Company or any Restricted Subsidiary thereof held by Persons other than the   Company or any of its Restricted Subsidiaries;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (iii)        (a)   make any voluntary payment on or with respect to, or voluntarily purchase,   redeem, defease or otherwise acquire or retire for value any Indebtedness   that is subordinated to the Notes or the Note Guarantees or (b) make any   payment on or with respect to, or purchase, redeem, defease or otherwise   acquire or retire for value any Indebtedness owed to the Company or any of   the Company’s Affiliates that is subordinated to the Notes or any Note Guarantees,   except, in the case of clause (b), (i) a payment of interest or principal at   the Stated Maturity thereof or (ii) the purchase, repurchase or other   acquisition of any such Indebtedness in anticipation of satisfying a sinking   fund obligation, principal installment or final maturity, in each case due   within one year of the date of such purchase, repurchase or other   acquisition;
or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)        make   any Restricted Investment (all such payments and other actions set forth in   Sections 4.07(a)(i) through (iv) above being collectively referred to as “Restricted Payments”),
  

unless, at the time of and after giving effect to such Restricted Payment:

	
   
  	
  
          (A)          no   Default or Event of Default shall have occurred and be continuing or would   occur as a consequence thereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (B)          the   Company would, at the time of such Restricted Payment and after giving pro   forma effect thereto as if such Restricted Payment had been made at the   beginning of the applicable four-quarter period, have been permitted to Incur   at least $1.00 of additional Indebtedness pursuant to the Fixed Charge   Coverage Ratio test set forth in Section 4.09(a); and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (C)          such   Restricted Payment, together with the aggregate amount of all other   Restricted Payments made by the Company and its Restricted Subsidiaries after   the Issue Date (excluding Restricted Payments permitted by Sections (ii),   (iii), (iv) and (v) of Section 4.07 (b) below), is less than the sum, without   duplication, of:
  

54

	
  
 
  	
  
          (1)          50%   of the Consolidated Net Income of the Company for the period (taken as one   accounting period) from the beginning of the first fiscal quarter commencing   after the Issue Date to the end of the Company’s most recently ended fiscal   quarter for which internal financial statements are available at the time of   such Restricted Payment (or, if such Consolidated Net Income for such period   is a deficit, less 100% of such deficit), plus
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          100%   of the aggregate net cash proceeds received by the Company since the Issue   Date as a contribution to its common equity capital or from the issue or sale   of Equity Interests of the Company (other than Disqualified Stock) or from   the issue or sale of Disqualified Stock or debt securities of the Company   that have been converted into or exchanged for such Equity Interests (other   than Equity Interests (or Disqualified Stock or debt securities) sold to a   Subsidiary of the Company); plus
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (3)          with   respect to Restricted Investments made by the Company and its Restricted   Subsidiaries after the Issue Date, an amount equal to (x) the amount returned   in cash to the Company or any Restricted Subsidiary of the Company on or with   respect to such Restricted Investments, whether resulting from payments of   interest on Indebtedness, dividends or distributions, repayments of loans or   advances in cash or other payments, or from the net cash proceeds from the   sale of any such Investment, (y) upon the designation of any Unrestricted   Subsidiary to be a Restricted Subsidiary, the Fair Market Value of the   Company’s or its Restricted Subsidiary’s equity interest in such Subsidiary   at the time of such designation, or (z) upon the release of any Guarantee   (except to the extent any amounts are paid under such Guarantee),
the amount   of the Guarantee released, in each case, but only if and to the extent such   amounts are not included in the calculation of Consolidated Net Income and   not to exceed the amount of the Restricted Investment previously made by the   Company or any Restricted Subsidiary in such Person or Unrestricted   Subsidiary.
  

                    (b)          The preceding provisions shall not prohibit:

	
  
 
  	
  
          (i)          the   payment of any dividend within 60 days after the date of declaration thereof,   if at said date of declaration such payment would have complied with the   provisions of this Indenture;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         the   redemption, repurchase, retirement, defeasance or other acquisition of any   subordinated Indebtedness of the Company or any Guarantor or of any Equity   Interests of the Company or any Restricted Subsidiary in exchange for, or out   of the net cash proceeds of a contribution to the common equity of the   Company or a substantially concurrent sale (other than to a Subsidiary of the   Company) of, Equity Interests of the Company (other than Disqualified Stock);   provided that the amount of any   such net cash proceeds that are utilized for any such redemption, repurchase,   retirement, defeasance or other acquisition shall be excluded from Section   4.07(a)(C)(2);
  

55

	
  
 
  	
  
          (iii)        the   defeasance, redemption, repurchase or other acquisition of subordinated   Indebtedness of the Company or any Guarantor in exchange for, or with the net   cash proceeds from, an Incurrence of Permitted Refinancing Indebtedness;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)        the   payment of any dividend or distribution by a Restricted Subsidiary of the   Company, other than a Guarantor, to the holders of its common Equity   Interests, or the redemption by a Restricted Subsidiary of the Company, other   than a Guarantor, of its common Equity Interests, in each case on a pro rata   basis;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)         the   repurchase of Capital Stock deemed to occur upon the exercise of options or   warrants to the extent that such Capital Stock represents all or a portion of   the exercise price thereof;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (vi)        the   repurchase, redemption or other acquisition or retirement for value of any   Equity Interests of the Company held by any current or former employee or   director of the Company (or any of its Restricted Subsidiaries) pursuant to   the terms of any employee equity subscription agreement, stock option   agreement or similar agreement entered into in the ordinary course of   business; provided that the   aggregate price paid for all such repurchased, redeemed, acquired or retired   Equity Interests shall not exceed $5.0 million and provided further that such aggregate price paid, in any   calendar year, shall not exceed $1.0 million;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vii)       the   Transactions;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (viii)      the   payment of dividends on the 5.5% Shared Preference Redeemable Securities of   TXI Capital Trust I as in effect and outstanding as of the Issue Date in an   aggregate annual amount not to exceed $11.0 million;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ix)        dividends   paid by the Company on its common stock in an annual amount not to exceed (a)   $7.5 million plus (b) an amount equal to 3% of net cash proceeds received by   the Company or reduction of Indebtedness of the Company from the issuance,   exchange or sale of the Company’s common stock after the Issue Date; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (x)         other   Restricted Payments in an aggregate amount not to exceed $35.0 million,
  

provided that, except in the case of clauses (i) and (vii), no Default has occurred and is continuing or would be caused thereby.

                    The amount of all Restricted Payments (other than cash) shall be the Fair Market Value on the date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued to or by the Company or such Subsidiary, as the case may be, pursuant to the Restricted Payment. The Fair Market Value of any assets or securities that are required to be valued by this Section 4.07 shall be determined by the Board of Directors of the Company whose resolution with respect thereto shall be delivered to the Trustee. The Board of Directors’ determination shall be based upon an opinion or appraisal issued by an independent accounting, appraisal or investment banking firm if the Fair Market Value exceeds $10.0 million. Not later than the date of making any Restricted Payment, the Company shall deliver to the Trustee an Officers’
Certificate stating that such Restricted Payment is permitted and setting forth the basis upon which the calculations required by this Section 4.07 were computed, together with a copy of any fairness opinion or appraisal required by this Indenture.

56

Section 4.08.  Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

                    (a)          The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to:

	
  
 
  	
  
          (i)          pay   dividends or make any other distributions on its Capital Stock (or with   respect to any other interest or participation in, or measured by, its   profits) to the Company or any of its Restricted Subsidiaries or pay any   liabilities owed to the Company or any of its Restricted Subsidiaries;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         make   loans or advances to the Company or any of its Restricted Subsidiaries; or
  
	
  
 
  	
  
 
  
	
   
  	
  
          (iii)        transfer   any of its properties or assets to the Company or any of its Restricted   Subsidiaries.
  

                    (b)          However, the preceding restrictions shall not apply to such encumbrances or restrictions existing under, by reason of or with respect to:

	
  
 
  	
  
          (i)          the   Existing Indebtedness, the Credit Agreement, this Indenture, the Notes, any   Note Guarantee or any other agreements in effect on the Issue Date and any   amendments, modifications, restatements, renewals, extensions, supplements,   refundings, replacements or refinancings thereof, provided that the encumbrances and restrictions in any   such amendments, modifications, restatements, renewals, extensions,   supplements, refundings, replacements or refinancings are no more restrictive,   taken as a whole, than those contained in such Existing Indebtedness, this   Indenture, the Credit Agreement or such other agreements as in effect on the   Issue Date;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         any   provision of any indenture, credit agreement or similar agreement not   described in the immediately preceding clause (i) that requires intercompany   obligations to be subordinated to the indebtedness under such indenture or   agreement on substantially the same terms as those provided above in Section   4.09(b)(vi);
  
	
   
  	
  
 
  
	
  
 
  	
  
          (iii)        applicable   law;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)        any   agreement or arrangement applicable to any Person or the property or assets   of such Person acquired by the Company or any of its Restricted Subsidiaries,   existing at the time of such acquisition and not entered into in connection   with or in contemplation of such acquisition; provided that the encumbrance or restriction therein is   not applicable to any Person or the properties or assets of any Person, other   than the Person, or the property or assets of such Person, so acquired and   any amendments, modifications, restatements, renewals, extensions,   supplements, refundings, replacements or refinancings thereof, provided that the encumbrances and   restrictions in any such amendments, modifications, restatements, renewals,   extensions, supplements, refundings, replacement or refinancings are no more   restrictive, taken as a
whole, than those in effect on the date of the   acquisition;
  

57

	
   
  	
  
          (v)         in   the case of Section 4.08(a)(iii):
  

	
  
 
  	
  
          (A)          that   restrict in a customary manner the subletting, assignment or transfer of any   property or asset that is a lease, license, conveyance, joint venture,   partnership interest or contract or similar property or asset,
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (B)          existing   by virtue of any transfer of, agreement to transfer, option or right with   respect to, or Lien on, any property or assets of the Company or any   Restricted Subsidiary not otherwise prohibited by this Indenture or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (C)          arising   or agreed to in the ordinary course of business, not relating to any   Indebtedness, and that do not, individually or in the aggregate, detract from   the value of property or assets of the Company or any Restricted Subsidiary   in any manner material to the Company or any Restricted Subsidiary;
  

	
  
 
  	
  
          (vi)        any   agreement for the sale or other disposition of all or substantially all of   the Capital Stock of, or property and assets of, a Restricted Subsidiary that   restricts distributions by that Restricted Subsidiary pending such sale or   other disposition;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vii)       Permitted   Refinancing Indebtedness; provided   that the restrictions contained in the agreements governing such Permitted   Refinancing Indebtedness are no more restrictive, taken as a whole, than   those contained in the agreements governing the Indebtedness being   refinanced;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (viii)      restrictions   on cash or other deposits or net worth imposed by customers or required by   insurance, surety or bonding companies, in each case under contracts entered   into in the ordinary course of business; and
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ix)        Standard   Securitization Undertakings related to a Receivables Subsidiary in connection   with a Qualified Receivables Transaction.
  

Section 4.09.  Incurrence of Indebtedness and Issuance of Preferred Stock.

                    (a)          The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, Incur any Indebtedness (including Acquired Debt), and the Company shall not permit any of its Restricted Subsidiaries to issue any preferred stock; provided, however, that the Company or any Guarantor may Incur Indebtedness, if the Fixed Charge Coverage Ratio for the Company’s most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is Incurred would have been at least 2.0 to 1, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been Incurred at the beginning of such
four-quarter period.

58

                    (b)          Section 4.09(a) shall not prohibit the Incurrence of any of the following items of Indebtedness (collectively, “Permitted Debt”):

	
  
 
  	
  
          (i)          the   Incurrence by the Company or any Guarantor of Indebtedness under Credit   Facilities in an aggregate principal amount at any one time outstanding   pursuant to this Section 4.09(b)(i) not to exceed $200.0 million less the aggregate amount of all Net   Proceeds of Asset Sales applied by the Company or any Restricted Subsidiary   to permanently repay any such Indebtedness (and, in the case of any revolving   credit Indebtedness, to effect a corresponding commitment reduction   thereunder) pursuant to Section 4.10;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         the   Incurrence of Existing Indebtedness;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)        the   Incurrence by the Company and the Guarantors of Indebtedness represented by   the Notes and the related Note Guarantees to be issued on the Issue Date and   the Exchange Notes and the related Note Guarantees to be issued pursuant to   the Registration Rights Agreement;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (iv)        the   Incurrence by the Company or any Restricted Subsidiary of the Company of   Indebtedness represented by Capital Lease Obligations, mortgage financings or   purchase money obligations, in each case, Incurred for the purpose of   financing all or any part of the purchase price or cost of construction or   improvement of property, plant or equipment used in the business of the   Company or such Restricted Subsidiary, in an aggregate amount, including all   Permitted Refinancing Indebtedness Incurred to refund, refinance or replace   any Indebtedness Incurred pursuant to this clause (iv), not to exceed $10.0   million at any one time outstanding;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)         the   Incurrence by the Company or any Restricted Subsidiary of the Company of   Permitted Refinancing Indebtedness in exchange for, or the net proceeds of   which are used to refund, refinance or replace Indebtedness (other than   intercompany Indebtedness) that was permitted by this Indenture to be   Incurred under Section 4.09(a) or Section 4.09(b)(ii), (iii), (iv), (v) or   (viii);
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vi)        the   Incurrence by the Company or any of its Restricted Subsidiaries of   intercompany Indebtedness owing to and held by the Company or any of its   Restricted Subsidiaries; provided,   however, that:
  

	
  
 
  	
  
          (A)          if   the Company or any Guarantor is the obligor on such Indebtedness, such   Indebtedness must be expressly subordinated to the prior payment in full in   cash of all Obligations with respect to the Notes, in the case of the   Company, or the Note Guarantee, in the case of a Guarantor; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (B)          (i)   any subsequent issuance or transfer of Equity Interests that results in any   such Indebtedness being held by a Person other than the Company or a   Restricted Subsidiary thereof and (ii) any sale or other transfer of any such   Indebtedness to a Person that is not either the Company or a Restricted   Subsidiary thereof, shall be deemed, in each case, to constitute an   Incurrence of such Indebtedness by the Company or such Restricted Subsidiary,   as the case may be, that was not permitted by this Section 4.09(b)(vi);
  

59

	
   
  	
  
          (vii)       the   Guarantee by the Company or any of the Guarantors of Indebtedness of the   Company or a Restricted Subsidiary of the Company that was permitted to be   Incurred by this Section 4.09; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (viii)      the   Incurrence by the Company or any Restricted Subsidiary of the Company of   additional Indebtedness in an aggregate principal amount (or accreted value,   as applicable) at any time outstanding, including all Permitted Refinancing   Indebtedness Incurred to refund, refinance or replace any Indebtedness   Incurred pursuant to this Section 4.09(b)(viii), not to exceed $35.0 million.
  

                    For purposes of determining compliance with this Section 4.09, in the event that any proposed Indebtedness meets the criteria of more than one of the categories of Permitted Debt described in Sections 4.09(b)(i) through (viii) above, or is entitled to be Incurred pursuant to Section 4.09(a), the Company shall be permitted to classify at the time of its Incurrence such item of Indebtedness in any manner that complies with this Section 4.09.  In addition, any Indebtedness originally classified as Incurred pursuant to clauses (i) through (viii) above may later be reclassified by the Company such that it shall be deemed as having been Incurred pursuant to another of such clauses to the extent that such reclassified Indebtedness could be Incurred pursuant to such new clause at the time of such reclassification.  Notwithstanding the
foregoing, Indebtedness under Credit Facilities outstanding on the Issue Date shall be deemed to have been Incurred on such date in reliance on the exception provided by 4.09(b)(i).

                    (c)          Notwithstanding any other provision of this Section 4.09, the maximum amount of Indebtedness that may be Incurred pursuant to this Section 4.09 shall not be deemed to be exceeded, with respect to any outstanding Indebtedness due solely to the result of fluctuations in the exchange rates of currencies.

                    (d)          The Company shall not Incur any Indebtedness that is subordinate or junior in right of payment to any other Indebtedness of the Company unless it is subordinate in right of payment to the Notes.  No Guarantor shall Incur any Indebtedness that is subordinate or junior in right of payment to any other Indebtedness of such Guarantor unless it is subordinate in right of payment to such Guarantor’s Note Guarantee.  For purposes of the foregoing, no Indebtedness will be deemed to be subordinated in right of payment to any other Indebtedness of the Company or any Guarantor, as applicable, solely by reason of any Liens or Guarantees arising or created in respect of such other Indebtedness or by virtue of the fact that the holders of any secured Indebtedness have entered into
intercreditor agreements giving one or more of such holders priority over the other holders in collateral held by them.

Section 4.10.  Asset Sales.

                    (a)          The Company shall not, and shall not permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless:

60

	
   
  	
  
          (i)          the   Company (or the Restricted Subsidiary, as the case may be) receives   consideration at the time of such Asset Sale at least equal to the Fair   Market Value of the assets or Equity Interests issued or sold or otherwise   disposed of;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         such   Fair Market Value is determined in good faith by (a) the chief executive   officer or chief financial officer of the Company, in the case of any Asset   Sales or series of related Asset Sales having a Fair Market Value of less   than $25.0 million, and (b) the Board of Directors of the Company and   evidenced by a resolution of the Board of Directors of the Company set forth   in an Officers’ Certificate delivered to the Trustee, in the case of any   Asset Sales or series of related Asset Sales having a Fair Market Value of   $25.0 million or more; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)        at   least 75% of the consideration therefor received by the Company or such   Restricted Subsidiary is in the form of cash, Cash Equivalents or Replacement   Assets or a combination of both. For purposes of this Section 4.10(a)(iii),   each of the following shall be deemed to be cash:
  

	
  
 
  	
  
          (A)          any   liabilities (as shown on the Company’s or such Restricted Subsidiary’s most   recent balance sheet) of the Company or any Restricted Subsidiary (other than   contingent liabilities, liabilities that are by their terms subordinated to   the Notes or any Note Guarantee and liabilities to the extent owed to the   Company or any Affiliate of the Company) that are assumed by the transferee   of any such assets pursuant to a customary written agreement that releases   the Company or such Restricted Subsidiary from further liability; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (B)          any   securities, notes or other obligations received by the Company or any such   Restricted Subsidiary from such transferee that are contemporaneously   (subject to ordinary settlement periods) converted by the Company or such   Restricted Subsidiary into cash (to the extent of the cash received in that   conversion).
  

                    (b)          Within 360 days after the receipt of any Net Proceeds from an Asset Sale, the Company may apply such Net Proceeds at its option:

	
  
 
  	
  
          (i)          to   repay Indebtedness under the Credit Facilities or Unsubordinated Indebtedness   secured by such assets and, if the Indebtedness repaid is revolving credit   Indebtedness, to correspondingly reduce commitments with respect thereto;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         to   purchase Replacement Assets (or enter into a binding agreement to purchase   such Replacement Assets; provided   that (x) such purchase is consummated within 90 days after the date of such binding   agreement and (y) if such purchase is not consummated within the period set   forth in subclause (x), the Net Proceeds not so applied will be deemed to be   Excess Proceeds (as defined in clause (c) of this Section)); or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)        to   apply (no later than the end of the 360-day period referred to in this   paragraph) such Net Proceeds (to the extent not applied pursuant to clauses   (i) and (ii)) as provided in Section 4.10(c).
  

61

Pending the final application of any such Net Proceeds, the Company may temporarily reduce revolving credit borrowings or otherwise invest such Net Proceeds in any manner that is not prohibited by this Indenture.

                    (c)          Any Net Proceeds from Asset Sales that are not applied or invested as provided in Section 4.10(b) above shall constitute “Excess Proceeds.” Within 10 days after the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company shall make an offer (an “Asset Sale Offer”) to all Holders of Notes and all holders of other Unsubordinated Indebtedness containing provisions similar to those set forth in this Indenture with respect to offers to purchase with the proceeds of sales of assets, to purchase the maximum principal amount of Notes and such other Unsubordinated Indebtedness that may be purchased out of the Excess Proceeds. The offer price in any Asset Sale Offer shall be equal to 100% of principal amount plus accrued and unpaid interest and
Liquidated Damages, if any, to the date of purchase, and shall be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use such Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the aggregate principal amount of Notes and such other Unsubordinated Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, Notes and such other Unsubordinated Indebtedness to be purchased shall be selected on a pro rata basis based on the principal amount of Notes and such other pari passu Indebtedness tendered. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero.

Section 4.11.  Transactions with Affiliates.

                    (a)          The Company shall not, and shall not permit any of its Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into, make, amend, renew or extend any transaction, contract, agreement, understanding, loan, advance or Guarantee with, or for the benefit of, any Affiliate (each, an “Affiliate Transaction”), unless:

	
  
 
  	
  
          (i)          such   Affiliate Transaction is on terms that are no less favorable to the Company   or the relevant Restricted Subsidiary than those that would have been   obtained in a comparable arm’s-length transaction by the Company or such   Restricted Subsidiary with a Person that is not an Affiliate of the Company;   and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         the   Company delivers to the Trustee:
  

	
  
 
  	
  
          (A)          with   respect to any Affiliate Transaction or series of related Affiliate   Transactions involving aggregate consideration in excess of $5.0 million, a   resolution of the Board of Directors set forth in an Officers’ Certificate   certifying that such Affiliate Transaction or series of related Affiliate   Transactions complies with this Section 4.11 and that such Affiliate   Transaction or series of related Affiliate Transactions has been approved by   a majority of the disinterested members of the Board of Directors; and
  
	
   
  	
  
 
  
	
  
 
  	
  
          (B)          with   respect to any Affiliate Transaction or series of related Affiliate   Transactions involving aggregate consideration in excess of $10.0 million, an   opinion as to the fairness to the Company or such Restricted Subsidiary of   such Affiliate Transaction or series of related Affiliate Transactions from a   financial point of view issued by an independent accounting, appraisal or   investment banking firm.
  

62

                    (b)          The following items shall not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions of Section 4.11(a):

	
  
 
  	
  
          (i)          transactions   between or among the Company and/or its Restricted Subsidiaries;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         payment   of reasonable fees and compensation to, and indemnity provided on behalf of,   the executive officers and directors of the Company and its Restricted   Subsidiaries;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (iii)        the   entering into of a tax sharing agreement, or payments pursuant thereto,   between the Company and/or one or more Subsidiaries, on the one hand, and any   other Person with which the Company or such Subsidiaries are required or   permitted to file a consolidated tax return or with which the Company or such   Subsidiaries are part of a consolidated group for tax purposes, on the other   hand, which payments by the Company and the Restricted Subsidiaries are not   in excess of the tax liabilities that would have been payable by them on a   stand-alone basis;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)        loans   and advances permitted by clause (8) of the definition of “Permitted   Investments”;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)         Restricted   Payments that are permitted by the provisions of Section 4.07;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (vi)        the   Transactions and the Centralized Cash Management Program;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vii)       prior   to the distribution of Chaparral Steel Company to the Company’s shareholders,   (a) purchases of slag from Chaparral Steel Company consistent with past   practice and (b) purchases and sales of goods and services in the ordinary   course of business with Chaparral Steel Company; provided such purchases and   sales are on terms no less favorable to the Company than those that would   have been obtained in a comparable arm’s-length transaction with a Person   that is not an Affiliate of the Company;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (viii)      transfers   of accounts receivable and related assets to a Receivables Subsidiary in   connection with a Qualified Receivables Transaction and the charging of fees   and expenses in the ordinary course of business in connection with such   transfers; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ix)        any   sale of Equity Interests (other than Disqualified Stock) of the Company.
  

63

Section 4.12.  Liens.

                    The Company shall not, and shall not permit any of its Restricted Subsidiaries to, create, Incur, assume or otherwise cause or suffer to exist or become effective any Lien of any kind (other than Permitted Liens) upon any of their property or assets, now owned or hereafter acquired, unless all payments due under this Indenture and the Notes are secured on an equal and ratable basis with the obligations so secured until such time as such obligations are no longer secured by a Lien.

Section 4.13.  Business Activities.

                    The Company shall not, and shall not permit any Restricted Subsidiary to, engage in any business other than Permitted Businesses except to such extent as would not be material to the Company and its Restricted Subsidiaries taken as a whole.

Section 4.14.  Offer to Repurchase upon a Change of Control.

                    (a)          If a Change of Control occurs, each Holder of Notes shall have the right to require the Company to repurchase all or any part (equal to $1,000 or an integral multiple thereof) of that Holder’s Notes pursuant to an offer by the Company (a “Change of Control Offer”). In the Change of Control Offer, the Company shall offer payment (a “Change of Control Payment”) in cash of 101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest and Liquidated Damages, if any, thereon, to the date of repurchase (the “Change of Control Payment Date”, which date shall be no earlier than the date of such Change of Control). Within 30 days following any Change of Control, the Company shall mail a notice to each Holder
describing the transaction or transactions that constitute the Change of Control and offering to repurchase Notes on the Change of Control Payment Date specified in such notice, which shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed, pursuant to the procedures described in Section 3.08.

                    (b)          By 11:00 a.m. Eastern Time on the Change of Control Payment Date, the Company shall, to the extent lawful:

	
  
 
  	
  
          (i)          accept   for payment all Notes or portions thereof properly tendered pursuant to the   Change of Control Offer;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         deposit   with the Paying Agent an amount equal to the Change of Control Payment in   respect of all Notes or portions thereof so tendered; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)        deliver   or cause to be delivered to the Trustee the Notes so accepted together with   an Officers’ Certificate stating the aggregate principal amount of Notes or   portions thereof being purchased by the Company.
  

                     (c)          The Paying Agent shall promptly mail or wire transfer to each Holder of Notes so tendered the Change of Control Payment for such Notes, and the Trustee shall promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note shall be in a principal amount of $1,000 or an integral multiple thereof.

64

                     (d)          The Company will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date.

                    (e)          Notwithstanding anything to the contrary in this Section 4.14, the Company shall not be required to make a Change of Control Offer upon a Change of Control if a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section 4.14 and all other provisions of this Indenture applicable to a Change of Control Offer made by the Company and purchases all Notes validly tendered and not withdrawn under such Change of Control Offer.

Section 4.15.  Limitation on Issuances and Sales of Equity Interests in Restricted Subsidiaries.

                    (a)          The Company shall not transfer, convey, sell, lease or otherwise dispose of, and shall not permit any of its Restricted Subsidiaries to issue, transfer, convey, sell, lease or otherwise dispose of, any Equity Interests in any Restricted Subsidiary of the Company to any Person (other than the Company or a Restricted Subsidiary of the Company or, if necessary, shares of its Capital Stock constituting directors’ qualifying shares or issuances of shares of Capital Stock of foreign Restricted Subsidiaries to foreign nationals, to the extent required by applicable law), except:

	
  
 
  	
  
          (i)          if,   immediately after giving effect to such issuance, transfer, conveyance, sale,   lease or other disposition, such Restricted Subsidiary would no longer   constitute a Restricted Subsidiary and any Investment in such Person   remaining after giving effect to such issuance or sale would have been   permitted to be made under Section 4.07 hereof if made on the date of such   issuance or sale; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)            sales of Common Stock of a Restricted Subsidiary by the Company or a   Restricted Subsidiary, provided   that the Company or such Restricted Subsidiary complies with Section 4.10.
  

Section 4.16.  Designation of Restricted and Unrestricted Subsidiaries.

                    (a)          The Board of Directors of the Company may designate any Restricted Subsidiary to be an Unrestricted Subsidiary, provided that:

	
   
  	
  
          (i)          any   Guarantee by the Company or any Restricted Subsidiary of any Indebtedness of   the Subsidiary being so designated shall be deemed to be an Incurrence of   Indebtedness by the Company or such Restricted Subsidiary (or both, if   applicable) at the time of such designation, and such Incurrence of   Indebtedness would be permitted under Section 4.09;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)            the aggregate Fair Market Value of all outstanding Investments owned by the   Company and its Restricted Subsidiaries in the Subsidiary being so designated   (including any Guarantee by the Company or any Restricted Subsidiary of any   Indebtedness of such Subsidiary) shall be deemed to be a Restricted   Investment made as of the time of such designation and such Investment would   be permitted under Section 4.07;
  

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          (iii)        such   Subsidiary does not hold any Liens on any Property of, the Company or any   Restricted Subsidiary;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)         the   Subsidiary being so designated:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (A)          is   not party to any agreement, contract, arrangement or understanding with the   Company or any Restricted Subsidiary of the Company unless the terms of any   such agreement, contract, arrangement or understanding are no less favorable   to the Company or such Restricted Subsidiary than those that might be   obtained at the time from Persons who are not Affiliates of the Company;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (B)          is   a Person with respect to which neither the Company nor any of its Restricted   Subsidiaries has any direct or indirect obligation (i) to subscribe for   additional Equity Interests or (ii) to maintain or preserve such Person’s   financial condition or to cause such Person to achieve any specified levels   of operating results;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (C)          has   not Guaranteed or otherwise directly or indirectly provided credit support   for any Indebtedness of the Company or any of its Restricted Subsidiaries,   except to the extent such Guarantee or credit support would be released upon   such designation; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (D)          other   than in the case of a Receivables Subsidiary, has at least one director on   its Board of Directors that is not a director or officer of the Company or   any of its Restricted Subsidiaries and has at least one executive officer   that is not a director or officer of the Company or any of its Restricted   Subsidiaries; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)          no   Default or Event of Default would be in existence following such designation.
  

                    (b)          Any designation of a Restricted Subsidiary of the Company as an Unrestricted Subsidiary shall be evidenced to the Trustee by filing with the Trustee a certified copy of the Board Resolution giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the preceding conditions and was permitted by this Indenture. If, at any time, any Unrestricted Subsidiary (other than Chaparral Steel Company) (x) would fail to meet any of the preceding requirements described in Sections 4.16(a)(iv)(A), (B) and (C) above or (y) fails to meet the requirement described in Section 4.16(a)(iv)(D) above and such failure continues for a period of 60 days, such Subsidiary shall thereafter cease to be an Unrestricted Subsidiary for purposes of this
Indenture and any Indebtedness, Investments, or Liens on the property, of such Subsidiary shall be deemed to be Incurred by a Restricted Subsidiary of the Company as of such date and, if such Indebtedness, Investments or Liens are not permitted to be Incurred as of such date under this Indenture, the Company shall be in Default under this Indenture.

                    (c)          The Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that:

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          (i)          such   designation shall be deemed to be an Incurrence of Indebtedness by a   Restricted Subsidiary of the Company of any outstanding Indebtedness of such   Unrestricted Subsidiary and such designation shall only be permitted if such   Indebtedness is permitted under Section 4.09;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ii)            all outstanding Investments owned by such Unrestricted Subsidiary shall be   deemed to be made as of the time of such designation and such Investments   shall only be permitted if such Investments would be permitted under Section   4.07;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)           all Liens upon property or assets of such Unrestricted Subsidiary existing at   the time of such designation would be permitted under Section 4.12; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)            no Default or Event of Default would be in existence following such   designation.
  

Section 4.17.  Payments for Consent.

                    The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder of Notes for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this Indenture or the Notes unless such consideration is offered to be paid and is paid to all Holders of the Notes that consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement.

Section 4.18.  Guarantees.

                    (a)          (i) If the Company or any of its Restricted Subsidiaries acquires or creates another Domestic Subsidiary (other than a Receivables Subsidiary) on or after the Issue Date, then that newly acquired or created Domestic Subsidiary shall become a Guarantor and execute a supplemental indenture in the form of Exhibit F hereto and deliver an Opinion of Counsel to the Trustee as to the authorization and enforceability of such supplemental indenture and any other matters reasonably requested by the Trustee and in compliance with Section 12.05 hereof.  (ii) The Company shall not permit any of its Restricted Subsidiaries, directly or indirectly, to Guarantee the payment of any other Indebtedness of the Company, unless such Restricted Subsidiary is a Guarantor or simultaneously executes and
delivers a supplemental indenture in the form attached hereto as Exhibit F providing for a Note Guarantee of payment of the Notes by such Restricted Subsidiary, which Note Guarantee shall be senior to or pari passu with such Subsidiary’s Guarantee of such other Indebtedness.

                    (b)          Notwithstanding the preceding paragraph, any Note Guarantee may provide by its terms that it will be automatically and unconditionally released and discharged under the circumstances described under Section 10.05 hereof.

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Section 4.19.  Sale and Leaseback Transactions. The Company shall not, and shall not permit any of its Restricted Subsidiaries to, enter into any sale and leaseback transaction, provided that the Company or any Restricted Subsidiary may enter into a sale and leaseback transaction if:

	
  
 
  	
  
          (i)          the   Company or that Restricted Subsidiary, as applicable, could have Incurred   Indebtedness in an amount equal to the Attributable Debt relating to such   sale and leaseback transaction under the Fixed Charge Coverage Ratio test in   Section 4.09(a);
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)            the gross cash proceeds of that sale and leaseback transaction are at least   equal to the Fair Market Value, as determined in good faith by the Board of   Directors and set forth in an Officers’ Certificate delivered to the Trustee,   of the property that is the subject of that sale and leaseback transaction;   and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)           the transfer of assets in that sale and leaseback transaction is permitted   by, and the Company applies the proceeds of such transaction in compliance   with Section 4.10.
  

Section 4.20.  [INTENTIONALLY OMITTED]

Section 4.21.  Suspension of Certain Covenants and Agreements.

                    (a)          If the Notes are rated Investment Grade by both Rating Agencies and no Default or Event of Default shall have occurred and then be continuing (the foregoing conditions being referred to collectively as the “Suspension Condition”), the Company and its Restricted Subsidiaries cease to be subject to Sections 4.07, 4.09, 4.10, 4.11, 4.15, clauses (i) and (iii) of Section 4.19 and clause (iii) of Section 5.01(a) (collectively, the “Suspended Covenants”).

                    (b)          If the Company and its Restricted Subsidiaries are not subject to the Suspended Covenants with respect to the Notes for any period of time as a result of Section 4.21(a) and, subsequently, one or both Rating Agencies withdraw their Investment Grade rating or downgrade the Investment Grade  rating assigned to the Notes such that the Notes are no longer rated Investment Grade by both Rating Agencies, then the Company and each of its Restricted Subsidiaries will thereafter again be subject to the Suspended Covenants.  Compliance with the Suspended Covenants with respect to Restricted Payments made after the time of such withdrawal or downgrade will be calculated in accordance with the terms of Section 4.07 as if such covenant had been in effect during the entire period of time
from the Issue Date.

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ARTICLE FIVE
 SUCCESSORS

Section 5.01.  Merger, Consolidation or Sale of Assets.

                    (a)           The Company shall not, directly or indirectly: (1) consolidate or merge with or into another Person (whether or not the Company is the surviving corporation) or (2) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties and assets of the Company and its Subsidiaries taken as a whole, in one or more related transactions, to another Person unless:

	
  
 
  	
  
          (i)          either:   (a) the Company is the surviving corporation; or (b) the Person formed by or   surviving any such consolidation or merger (if other than the Company) or to   which such sale, assignment, transfer, conveyance or other disposition shall   have been made (i) is a corporation organized or existing under the laws of   the United States, any state thereof or the District of Columbia and (ii)   assumes all the obligations of the Company under the Notes, this Indenture   and the Registration Rights Agreement pursuant to agreements reasonably   satisfactory to the Trustee;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)            immediately after giving effect to such transaction, no Default or Event of   Default exists;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)           immediately after giving effect to such transaction on a pro forma basis, the   Company or the Person formed by or surviving any such consolidation or merger   (if other than the Company), or to which such sale, assignment, transfer,   conveyance or other disposition shall have been made, will, on the date of   such transaction after giving pro forma effect thereto and any related financing   transactions as if the same had occurred at the beginning of the applicable   four-quarter period, be permitted to Incur at least $1.00 of additional   Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in   Section 4.09(a);
  
	
   
  	
  
 
  
	
  
 
  	
  
          (iv)            each Guarantor, unless such Guarantor is the Person with which the Company   has entered into a transaction under this Section 5.01, shall have by   amendment to its Note Guarantee confirmed that its Note Guarantee shall apply   to the obligations of the Company or the surviving Person in accordance with   the Notes and this Indenture; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)          the   Company delivers to the Trustee an Officers’ Certificate (attaching the   arithmetic computation to demonstrate compliance with clause (iii) above) and   Opinion of Counsel, in each case stating that such transaction and such   agreement complies with this Section and that all conditions precedent   provided for herein relating to such transaction have been complied with.
  

                     (b)          In addition, the Company shall not, directly or indirectly, lease all or substantially all of its properties or assets, in one or more related transactions, to any other Person.  

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                    (c)          Section 5.01(a)(iii) above shall not apply to any merger, consolidation or sale, assignment, transfer, conveyance or other disposition of assets between or among the Company and any of its Restricted Subsidiaries.

Section 5.02.  Successor Corporation Substituted.  

                         Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance with Section 5.01 hereof, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, assignment, transfer, conveyance or other disposition is made shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale, conveyance or other disposition, the provisions of this Indenture referring to the “Company” shall refer instead to the successor corporation and not to the Company), and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the
Company herein; provided, however, that the predecessor Company shall not be relieved from the obligation to pay the principal of and interest and Liquidated Damages, if any, on the Notes except in the case of a sale, assignment, transfer, conveyance or other disposition of all of the Company’s assets that meets the requirements of Section 5.01 hereof.

ARTICLE SIX
 DEFAULTS AND REMEDIES

Section 6.01.  Events of Default.

                    (a)          Each of the following is an “Event of Default”: 

	
  
 
  	
  
          (i)          default   for 30 days in the payment when due of interest on, or Liquidated Damages   with respect to, the Notes;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ii)            default in payment when due (whether at maturity, upon acceleration,   redemption or otherwise) of the principal of, or premium, if any, on the   Notes;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)           failure by the Company or any of its Restricted Subsidiaries to comply with   the provisions described under Sections 4.10, 4.14, 4.18, 5.01 or 10.04;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)            failure by the Company or any of its Restricted Subsidiaries for 30 days   after written notice by the Trustee or Holders representing 25% or more of   the aggregate principal amount of Notes outstanding to comply with any of the   other agreements in this Indenture;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)          default   under any mortgage, indenture or instrument under which there may be issued   or by which there may be secured or evidenced any Indebtedness by the Company   or any of its Restricted Subsidiaries (or the payment of which is Guaranteed   by the Company or any of its Restricted Subsidiaries) whether such   Indebtedness or Guarantee now exists, or is created after the Issue Date, if   that default:
  

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          (A)          is   caused by a failure to make any payment when due at the final maturity of   such Indebtedness (a “Payment Default”);   or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (B)          results   in the acceleration of such Indebtedness prior to its express maturity,
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
and, in each   case, the amount of any such Indebtedness, together with the amount of any   other such Indebtedness under which there has been a Payment Default or the   maturity of which has been so accelerated, aggregates $10.0 million or more;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (vi)            failure by the Company or any of its Restricted Subsidiaries to pay final   judgments (to the extent such judgments are not paid or covered by insurance   provided by a reputable carrier that has the ability to perform and has   acknowledged coverage in writing) aggregating in excess of $10.0 million,   which judgments are not paid, discharged or stayed for a period of 60 days;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (vii)           except as permitted by this Indenture, any Note Guarantee shall be held in   any judicial proceeding to be unenforceable or invalid or shall cease for any   reason to be in full force and effect or any Guarantor, or any Person acting   on behalf of any Guarantor, shall deny or disaffirm its obligations under its   Note Guarantee;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (viii)           the Company or any Significant Subsidiary of the Company (or any Restricted   Subsidiaries that together would constitute a Significant Subsidiary)   pursuant to or within the meaning of Bankruptcy Law:
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (A)          commences   a voluntary case,
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (B)          consents   to the entry of an order for relief against it in an involuntary case,
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (C)          makes   a general assignment for the benefit of its creditors, or
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
          (D)          generally   is not paying its debts as they become due; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (ix)            a court of competent jurisdiction enters an order or decree under any   Bankruptcy Law that:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (A)          is   for relief against the Company or any of its Restricted Subsidiaries that is   a Significant Subsidiary (or Restricted Subsidiaries that together would   constitute a Significant Subsidiary), in an involuntary case; or
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
          (B)          appoints   a custodian of the Company or any of its Restricted Subsidiaries that is a   Significant Subsidiary (or Restricted Subsidiaries that together would   constitute a Significant Subsidiary) or for all or substantially all of the   property of the Company or any of its Restricted Subsidiaries that is a Significant   Subsidiary (or Restricted Subsidiaries that together would constitute a   Significant Subsidiary), or
  

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          (C)          orders   the liquidation of the Company or any of its Restricted Subsidiaries that is   a Significant Subsidiary (or Restricted Subsidiaries that together would   constitute a Significant Subsidiary);
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
and the   order or decree remains unstayed and in effect for 60 consecutive days.
  

Section 6.02.  Acceleration.

                    (a)          In the case of an Event of Default specified in clauses (viii) or (ix) of Section 6.01 hereof, with respect to the Company or any Significant Subsidiary of the Company (or any Restricted Subsidiaries that together would constitute a Significant Subsidiary), all outstanding Notes will become due and payable immediately without further action or notice.  If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately by notice in writing to the Company specifying the Event of Default.

                    (b)          With respect to periods after July 15, 2009, in the case of any Event of Default occurring by reason of any willful action or inaction taken or not taken by or on behalf of the Company with the intention of avoiding payment of the premium that the Company would have had to pay if the Company then had elected to redeem the Notes pursuant to Section 3.07(a) hereof, an equivalent premium shall also become and be immediately due and payable to the extent permitted by law upon the acceleration of the Notes.  With respect to periods prior to July 15, 2009, if an Event of Default occurs during any time that the Notes are outstanding, by reason of any willful action (or inaction) taken (or not taken) by or on behalf of the Company with the intention of avoiding the prohibition on
redemption of the Notes, then the premium specified in Section 3.07(c) hereof that would have been payable upon redemption at the time the Event of Default occurs shall also become immediately due and payable to the extent permitted by law upon the acceleration of the Notes.

Section 6.03.  Other Remedies.

                    (a)          If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal, premium, if any, interest, and Liquidated Damages, if any, with respect to, the Notes or to enforce the performance of any provision of the Notes or this Indenture.

                    (b)          The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Holder of a Note in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default.  All remedies are cumulative to the extent permitted by law.

Section 6.04.  Waiver of Past Defaults.

                    Holders of a majority in principal amount of the then outstanding Notes by notice to the Trustee may, on behalf of the Holders of all of the Notes, rescind and annul a declaration of acceleration pursuant to Section 6.02 hereof, and its consequences, and waive any related existing Default or Event of Default if: 

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                    (a)           the Company has paid or deposited with the Trustee a sum sufficient to pay (i) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses and disbursements and advances of the Trustee, it agents and counsel, (ii) all overdue interest and Liquidated Damages on all Notes, (iii) the principal of and premium, if any, on any Notes that have become due otherwise than by such declaration or occurrence of acceleration and interest and Liquidated Damages, if any, thereon at the rate prescribed therefor by such Notes, and (iv) to the extent that payment for such interest is lawful, interest upon overdue interest, if any, at the rate prescribed in Section 4.01 hereof, 

                    (b)          all existing Events of Default, other than the nonpayment of the principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes that have become due solely by such declaration of acceleration, have been cured or waived and 

                    (c)          the rescission would not conflict with any judgment or decree of a court of competent jurisdiction. 

                    The Company shall deliver to the Trustee an Officers’ Certificate stating that the requisite percentage of Holders have consented to any such waiver and attaching copies of such consents.  In case of any such waiver, the Company, the Trustee and the Holders shall be restored to their former positions and rights hereunder and under the Notes, respectively.  This Section 6.04 and Section 9.02 shall be in lieu of Section 316(a)(1)(B) of the TIA and such Section 316(a)(1)(B) of the TIA is hereby expressly excluded from this Indenture and the Notes, as permitted by the TIA.  Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

Section 6.05.  Control by Majority.

                    Holders of a majority in principal amount of the then outstanding Notes may direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or power conferred on it.  However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture that the Trustee determines in good faith may be unduly prejudicial to the rights of other Holders of Notes or that may involve the Trustee in personal liability and may take any other action it deems proper that is not inconsistent with any such direction received from Holders of Notes.

Section 6.06.  Limitation on Suits.

                    (a)          A Holder may not pursue any remedy with respect to this Indenture or the Notes unless:

	
  
 
  	
  
          (i)          the   Holder gives the Trustee written notice of a continuing Event of Default;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         the   Holders of at least 25% in aggregate principal amount of outstanding Notes   make a written request to the Trustee to pursue the remedy;
  

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          (iii)        such   Holder or Holders offer and, if requested, provide to the Trustee security   and indemnity satisfactory to the Trustee against any costs, liability or   expense that might be Incurred by it in connection with the request or   direction;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (iv)         the   Trustee does not comply with the request within 60 days after receipt of the   request and the offer and, if requested, the provision of indemnity; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)          during   such 60-day period, the Holders of a majority in aggregate principal amount   of the outstanding Notes do not give the Trustee a direction that is   inconsistent with the request.
  

                    (b)          A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a Note or to obtain a preference or priority over another Holder of a Note.

Section 6.07.  Rights of Holders of Notes to Receive Payment.

                    Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to receive payment of principal, premium, if any, interest on, and Liquidated Damages, if any, with respect to, the Note, on or after the respective due dates expressed in the Note (including in connection with an offer to purchase), or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder.

Section 6.08.  Collection Suit by Trustee.

                    If an Event of Default specified in Section 6.01(a)(i) or (a)(ii) occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal of, premium, if any, interest, and Liquidated Damages, if any, remaining unpaid on the Notes and interest on overdue principal and premium, if any, and, to the extent lawful, interest and Liquidated Damages, if any, and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

Section 6.09.  Trustee May File Proofs of Claim.

                    The
Trustee is authorized to file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and the Holders of the
Notes allowed in any judicial proceedings relative to the Company or any
Guarantor (or any other obligor upon the Notes), its creditors or its property
and shall be entitled and empowered to collect, receive and distribute any money
or other securities or property payable or deliverable on any such claims and
any custodian in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee, and in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.07 hereof.  To the extent that the
payment of any such compensation,

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expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise.  Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

Section 6.10.  Priorities.

                    (a)          If the Trustee collects any money pursuant to this Article, it shall pay out the money in the following order:

	
  
 
  	
  
          First:  to the Trustee, its agents and attorneys   for amounts due under Section 7.07 hereof, including payment of all   compensation, expense and liabilities Incurred, and all advances made, by the   Trustee and the costs and expenses of collection;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          Second:  to Holders of Notes for amounts due and   unpaid on the Notes for principal, premium, if any, interest and Liquidated   Damages, if any, ratably, without preference or priority of any kind,   according to the amounts due and payable on the Notes for principal, premium,   if any, interest, and Liquidated Damages, if any, respectively; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          Third:  to the Company or to such party as a court   of competent jurisdiction shall direct.
  

                    (b)          The Trustee may fix a record date and payment date for any payment to Holders of Notes pursuant to this Section 6.10.

Section 6.11.  Undertaking for Costs.

                    In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant.  This Section does not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof, or a suit by Holders of more than ten percent in principal amount of the then outstanding Notes.

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ARTICLE SEVEN
 TRUSTEE

Section 7.01.  Duties of Trustee.  Except to the extent, if any, provided otherwise in the Trust Indenture Act of 1939 (as from time to time in effect):

                    (a)          If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in its exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

                    (b)          Except during the continuance of an Event of Default:

	
  
 
  	
  
          (i)          the   duties of the Trustee shall be determined solely by the express provisions of   this Indenture and the Trustee need perform only those duties that are   specifically set forth in this Indenture and no others, and no implied covenants   or obligations shall be read into this Indenture against the Trustee; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)            in the absence of bad faith on its part, the Trustee may conclusively rely,   as to the truth of the statements and the correctness of the opinions   expressed therein, upon certificates or opinions furnished to the Trustee and   conforming to the requirements of this Indenture.  However, the Trustee shall examine the certificates and   opinions to determine whether or not they conform to the requirements of this   Indenture.
  

                    (c)          The Trustee may not be relieved from liabilities for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that:

	
   
  	
  
          (i)          this   paragraph does not limit the effect of paragraph (b) of this Section;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)            the Trustee shall not be liable for any error of judgment made in good faith   by a Responsible Officer, unless it is proved that the Trustee was negligent   in ascertaining the pertinent facts; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)           the Trustee shall not be liable with respect to any action it takes or omits   to take in good faith in accordance with a direction received by it pursuant   to Section 6.05 hereof.
  

                    (d)          Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01.

                    (e)          No provision of this Indenture shall require the Trustee to expend or risk its own funds or incur any liability.  The Trustee shall be under no obligation to exercise any of its rights and powers under this Indenture at the request of any Holders, unless such Holder shall have offered to the Trustee security and indemnity satisfactory to it against any loss, costs, liability or expense that might be incurred by it in connection with the request or direction.

                    (f)          Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

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Section 7.02.  Certain Rights of Trustee.

                    (a)          The Trustee may conclusively rely upon any document believed by it to be genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or matter stated in the document.

                    (b)          Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both.  The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel.  The Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

                    (c)          The Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.

                    (d)          The Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within the rights or powers conferred upon it by this Indenture.

                    (e)          Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company shall be sufficient if signed by an Officer of the Company.

                    (f)          The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction.

                    (g)          The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of such event is sent to the Trustee in accordance with Section 12.02 hereof, and such notice references the Notes.

Section 7.03.  Individual Rights of Trustee.

                    The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may become a creditor of, or otherwise deal with, the Company or any of its Affiliates with the same rights it would have if it were not Trustee.  However, in the event that the Trustee acquires any conflicting interest as described in the Trust Indenture Act of 1939 (as in effect at such time), it must eliminate such conflict within 90 days, apply to the SEC for permission to continue as trustee or resign.  Any Agent may do the same with like rights and duties.  The Trustee is also subject to Sections 7.10 and 7.11 hereof.

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Section 7.04.  Trustee’s Disclaimer.

                    The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture, it shall not be accountable for the Company’s use of the proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any provision of this Indenture, it shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee, and it shall not be responsible for any statement or recital herein or any statement in the Notes or any other document in connection with the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.

Section 7.05.  Notice of Defaults.

                    If a Default or Event of Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to Holders of Notes a notice of the Default or Event of Default within 90 days after it occurs.  Except in the case of a Default or Event of Default in payment of principal, premium, interest or Liquidated Damages on any Note, the Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of the Holders of the Notes.

Section 7.06.  Reports by Trustee to Holders of the Notes.

                    (a)          Within 60 days after each May 31 beginning with the May 31 following the date hereof, and for so long as Notes remain outstanding, the Trustee shall mail to the Holders of the Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date, no report need be transmitted).  The Trustee also shall comply with TIA § 313(b)(2).  The Trustee shall also transmit by mail all reports as required by TIA § 313(c).

                    (b)          A copy of each report at the time of its mailing to the Holders of Notes shall be mailed to the Company and filed with the SEC and each stock exchange on which the Notes are listed in accordance with TIA § 313(d).  The Company shall promptly notify the Trustee when the Notes are listed on any stock exchange or any delisting thereof.

Section 7.07.  Compensation and Indemnity.

                    (a)          The Company shall pay to the Trustee from time to time reasonable compensation for its acceptance of this Indenture and services hereunder in accordance with a written schedule provided by the Trustee to the Company.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred or made by it in addition to the compensation for its services.  Such expenses shall include the reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

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                    (b)          The
Company shall indemnify the Trustee against any and all losses, liabilities or
expenses incurred by it arising out of or in connection with the acceptance or
administration of its duties under this Indenture, including the costs and
expenses of enforcing this Indenture against the Company (including this Section
7.07) and defending itself against any claim (whether asserted by either of the
Company or any Holder or any other person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder, except to the
extent any such loss, liability or expense may be attributable to its
negligence, bad faith or willful misconduct.  The Trustee shall notify the
Company promptly of any claim for which it may seek indemnity.  Failure by
the Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder.  The Company shall defend the claim and the Trustee
shall cooperate in the defense.  The Company need not pay for any
settlement made without its consent, which consent shall not be unreasonably
withheld.

                    (c)          The obligations of the Company under this Section 7.07 shall survive the satisfaction and discharge of this Indenture and resignation of removal of the Trustee.

                    (d)          To secure the Company’s payment obligations in this Section, the Trustee shall have a Lien prior to the Notes on all money or property held or collected by the Trustee, except that held in trust to pay principal and interest on particular Notes.  Such Lien shall survive the satisfaction and discharge of this Indenture and resignation or removal of the Trustee.

                    (e)          When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(a)(viii) and (ix) hereof occurs, the expenses and the compensation for the services (including the fees and expenses of its agents and counsel) are intended to constitute expenses of administration under any Bankruptcy Law.

                    (f)          The Trustee shall comply with the provisions of TIA § 313(b)(2) to the extent applicable.

Section 7.08.  Replacement of Trustee.

                    (a)          A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 7.08.

                    (b)          The Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Company.  The Holders of a majority in principal amount of the then outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing.  The Company may remove the Trustee if:

	
  
 
  	
  
          (i)          the   Trustee fails to comply with Section 7.10 hereof;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         the   Trustee is adjudged a bankrupt or an insolvent or an order for relief is   entered with respect to the Trustee under any Bankruptcy Law;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)        a   custodian or public officer takes charge of the Trustee or its property; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)         the   Trustee becomes incapable of acting.
  

                    (c)          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee.  Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

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                    (d)          If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company, or the Holders of Notes of at least 10% in principal amount of the then outstanding Notes may petition at the expense of the Company any court of competent jurisdiction for the appointment of a successor Trustee.

                    (e)           If the Trustee, after written request by any Holder who has been a Holder for at least six months, fails to comply with Section 7.10, such Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

                    (f)          A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company.  Thereupon, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of its succession to Holders.  The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, provided all sums owing to the Trustee hereunder have been paid and subject to the Lien provided for in Section 7.07 hereof.  Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof shall continue for
the benefit of the retiring Trustee.

Section 7.09.  Successor Trustee by Merger, Etc.

                    If the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to, another Person, the successor Person without any further act shall be the successor Trustee.

Section 7.10.  Eligibility; Disqualification.

                    There shall at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of America or of any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination by federal or state authorities and that has a combined capital and surplus of at least $150.0 million as set forth in its most recent published annual report of condition.

                    This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5).  The Trustee is subject to TIA § 310(b).

Section 7.11.  Preferential Collection of Claims Against Company.

                    The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b).  A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein.  The Trustee hereby waives any right to set-off any claim that it may have against the Company in any capacity (other than as Trustee and Paying Agent) against any of the assets of the Company held by the Trustee; provided, however, that if the Trustee is or becomes a lender of any other Indebtedness permitted hereunder to be pari passu with the Notes, then such waiver shall not apply to the extent of such Indebtedness.

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ARTICLE EIGHT
 DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01.  Option to Effect Legal Defeasance or Covenant Defeasance.

                    The Company may, at the option of the Board of Directors evidenced by a resolution set forth in an Officers’ Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article Eight.

Section 8.02.  Legal Defeasance and Discharge.

                    Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.02, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged from its obligations with respect to all outstanding Notes and all obligations of the Guarantors shall be deemed to have been discharged with respect to their obligations under the Note Guarantees on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that the Company and the Guarantors shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes and Note Guarantees, respectively, which shall thereafter be deemed to be “outstanding” only for the purposes
of Section 8.05 hereof and the other Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Notes and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder:  (a) the rights of Holders of outstanding Notes to receive solely from the trust fund described in Section 8.04 hereof, and as more fully set forth in such Section, payments in respect of the principal of, premium, if any, interest and Liquidated Damages, if any, on such Notes when such payments are due, (b) the Company’s obligations with respect to such Notes under Article Two concerning issuing temporary Notes, registration of Notes and mutilated, destroyed, lost or stolen Notes and the Company’s obligations under Section 4.02 hereof, (c) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and the Company’s obligations in connection therewith and (d) this Article Eight.  Subject to compliance with this Article Eight, the Company may exercise its option under this Section 8.02 notwithstanding the prior exercise of its option under Section 8.03 hereof.

Section 8.03.  Covenant Defeasance.

                    Upon
the Company’s exercise under Section 8.01 hereof of the option applicable
to this Section 8.03, the Company shall, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be released from its obligations
under the covenants contained in Sections 4.07, 4.08, 4.09 (including the
incorporation thereof into Section 5.01(a)(iii)), 4.10, 4.11, 4.12, 4.13, 4.14,
4.15, 4.16, 4.17, 4.18 and 4.19 hereof with respect to the outstanding Notes on
and after the date the conditions set forth in Section 8.04 are satisfied
(hereinafter, “Covenant Defeasance”), and the Notes shall
thereafter be deemed not “outstanding” for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder
(it being understood that such Notes shall not be deemed outstanding for
accounting purposes).  

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For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes, the Company and the Guarantors may omit to comply with and
shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference in
any such covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a Default or an Event of Default
under Section 6.01 hereof, but, except as specified above, the remainder of this
Indenture and such Notes shall be unaffected thereby.  In addition, upon
the Company’s exercise under Section 8.01 hereof of the option applicable
to this Section 8.03, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, Sections 6.01(a)(iii) through (vii) shall not constitute
Events of Default.

Section 8.04.  Conditions to Legal or Covenant Defeasance.

                    (a)          The following shall be the conditions to the application of either Section 8.02 or 8.03 hereof to the outstanding Notes:

	
  
 
  	
  
          (i)          the   Company must irrevocably deposit with the Trustee, in trust, for the benefit   of the Holders of the Notes, cash in U.S. dollars, non-callable Government   Securities, or a combination thereof, in such amounts as will be sufficient,   in the opinion of a nationally recognized firm of independent public   accountants, to pay the principal of, or interest and premium and Liquidated   Damages, if any, on the outstanding Notes on the stated maturity or on the   applicable redemption date, as the case may be, and the Company must specify   whether the Notes are being defeased to maturity or to a particular   redemption date;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)            in the case of Legal Defeasance, the Company shall have delivered to the   Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming   that (a) the Company has received from, or there has been published by, the   Internal Revenue Service a ruling or (b) since the Issue Date, there has been   a change in the applicable federal income tax law, in either case to the   effect that, and based thereon such Opinion of Counsel shall confirm that,   the Holders of the outstanding Notes will not recognize income, gain or loss   for federal income tax purposes as a result of such Legal Defeasance and will   be subject to federal income tax on the same amounts, in the same manner and   at the same times as would have been the case if such Legal Defeasance had   not occurred;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (iii)           in the case of Covenant Defeasance, the Company shall have delivered to the   Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming   that the Holders of the outstanding Notes will not recognize income, gain or   loss for federal income tax purposes as a result of such Covenant Defeasance   and will be subject to federal income tax on the same amounts, in the same   manner and at the same times as would have been the case if such Covenant   Defeasance had not occurred;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)            no Default or Event of Default shall have occurred and be continuing either:   (a) on the date of such deposit; or (b) insofar as Events of Default from   bankruptcy or insolvency events are concerned, at any time in the period   ending on the 91st day after the date of deposit;
  

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          (v)          such   Legal Defeasance or Covenant Defeasance will not result in a breach or   violation of, or constitute a default under any material agreement or   instrument to which the Company or any of its Subsidiaries is a party or by   which the Company or any of its Subsidiaries is bound;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (vi)         the   Company must have delivered to the Trustee an Opinion of Counsel to the   effect that, (1) assuming no intervening bankruptcy of the Company or any   Guarantor between the date of deposit and the 91st day following the deposit   and assuming that no Holder is an “insider” of the Company under applicable   bankruptcy law, after the 91st day following the deposit, the trust funds   will not be subject to the effect of Section 547 of the United States   Bankruptcy Code and (2) the creation of the defeasance trust does not violate   the Investment Company Act of 1940;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vii)           the Company must deliver to the Trustee an Officers’ Certificate stating that   the deposit was not made by the Company with the intent of preferring the   Holders of Notes over the other creditors of the Company with the intent of   defeating, hindering, delaying or defrauding creditors of the Company or   others;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (viii)          if the Notes are to be redeemed prior to their stated maturity, the Company   must deliver to the Trustee irrevocable instructions to redeem all of the   Notes on the specified redemption date; and
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ix)            the Company must deliver to the Trustee an Officers’ Certificate and an   Opinion of Counsel, each stating that all conditions precedent relating to   the Legal Defeasance or the Covenant Defeasance have been complied with.
  

Section 8.05.    Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous Provisions.

                    (a)          Subject to Section 8.06 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee pursuant to Section 8.04 hereof in respect of the outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium and Liquidated Damages, if any, and interest, but such money need not be segregated from other funds except to the extent required by law.

                    (b)          The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government Securities deposited pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes.

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                    (c)          Anything in this Article Eight to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the request of the Company any money or non-callable Government Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(a) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

Section 8.06.  Repayment to the Company.

                    Subject to applicable escheat laws, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium, if any, or interest on any Note and remaining unclaimed for two years after such principal, and premium, if any, or interest has become due and payable shall be paid to the Company on its request or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to
be published once, in the New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining shall be repaid to the Company.

Section 8.07.  Reinstatement.

                    If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable Government Securities in accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof and, in the case of a Legal Defeasance, the Guarantors’ obligations under their respective Note Guarantees shall be revised and reinstated as though no deposit had occurred pursuant to Section 8.02 hereof, in each case until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof, as
the case may be; provided, however, that, if the Company makes any payment of principal of, premium, if any, or interest on any Note following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent.

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ARTICLE NINE
 AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01.  Without Consent of Holders of Notes.

                    (a)          Notwithstanding Section 9.02 of this Indenture, the Company, the Guarantors, and the Trustee may amend or supplement this Indenture or the Notes without the consent of any Holder of a Note:

	
   
  	
  
          (i)          to   cure any ambiguity, defect or inconsistency;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)            to provide for uncertificated Notes in addition to or in place of   certificated Notes;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)           to provide for the assumption of the Company’s or any Guarantor’s obligations   to Holders of Notes in the case of a merger or consolidation or sale of all   or substantially all of the Company’s or such Guarantor’s assets;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)            to make any change that would provide any additional rights or benefits to   the Holders of Notes or that does not materially adversely affect the legal   rights under this Indenture of any such Holder;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (v)          to   comply with requirements of the SEC in order to effect or maintain the   qualification of this Indenture under the Trust Indenture Act;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vi)            to provide for the issuance of Additional Notes in accordance with the   limitations set forth in this Indenture as of its date;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vii)           to allow any Guarantor to execute a supplemental Indenture and a Note   Guarantee with respect to the Notes; or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (viii)          to evidence and provide for the acceptance of appointment of a successor   Trustee.
  

                    (b)          Upon the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon receipt by the Trustee of any documents requested under Section 7.02(b) hereof, the Trustee shall join with the Company in the execution of any amended or supplemental Indenture authorized or permitted by the terms of this Indenture and make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into such amended or supplemental Indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

Section 9.02.  With Consent of Holders of Notes.

                    (a)          Except as otherwise provided in this Section 9.02, the Company, the Guarantors and the Trustee may amend or supplement this Indenture or the Notes with the consent of the Holders of at least a majority in principal amount of the Notes then outstanding (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of Default or compliance with any provision of this Indenture or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, Notes).

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

                    (c)          Upon the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amendment or supplement to this Indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee shall join with the Company in the execution of such amendment or supplement unless such amendment or supplement directly affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amendment or supplement.

                    (d)          It shall not be necessary for the consent of the Holders of Notes under this Section 9.02 to approve the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if such consent approves the substance thereof.

                    (e)          After an amendment, supplement or waiver under this Section becomes effective, the Company shall mail to the Holders of Notes affected thereby a notice briefly describing the amendment, supplement or waiver.  Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment, supplement or waiver.  Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate principal amount of the then outstanding Notes (including Additional Notes, if any) may waive compliance in a particular instance by the Company with any provision of this Indenture, or the Notes.  However, without the consent of each Holder affected, an amendment or waiver under this Section 9.02 may not (with
respect to any Notes held by a non-consenting Holder):

	
  
 
  	
  
          (i)          reduce   the principal amount of Notes whose Holders must consent to an amendment,   supplement or waiver;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)            reduce the principal of or change the fixed maturity of any Note or alter the   provisions, or waive any payment, with respect to the redemption of the   Notes;
  

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          (iii)           reduce the rate of or change the time for payment of interest on any Note;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (iv)            waive a Default or Event of Default in the payment of principal of, or   interest or premium, or Liquidated Damages, if any, on the Notes (except a   rescission of acceleration of the Notes by the Holders of at least a majority   in aggregate principal amount of the Notes and a waiver of the payment   default that resulted from such acceleration);
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (v)          make   any Note payable in money other than U.S. dollars;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vi)            make any change in the provisions of this Indenture relating to waivers of   past Defaults or the rights of Holders of Notes to receive payments of   principal of, or interest or premium or Liquidated Damages, if any, on the   Notes;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (vii)           release any Guarantor from any of its obligations under its Note Guarantee or   this Indenture, except in accordance with the terms of this Indenture, as   then in effect;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (viii)          impair the right to institute suit for the enforcement of any payment on or   with respect to the Notes or the Note Guarantees;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ix)            amend, change or modify the obligation of the Company to make and consummate   an Asset Sale Offer with respect to any Asset Sale in accordance with Section   4.10 after the obligation to make such Asset Sale Offer has arisen or the   obligation of the Company to make and consummate a Change of Control Offer in   the event of a Change of Control in accordance with Section 4.14 after such   Change of Control has occurred, including, in each case, amending, changing   or modifying any definition relating thereto;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (x)          except   as otherwise permitted under Section 5.01, consent to the assignment or   transfer by the Company or any Guarantor of any of their rights or   obligations under this Indenture; and
  
	
   
  	
  
 
  
	
  
 
  	
  
          (xi)            make any change in the preceding amendment and waiver provisions.
  

Section 9.03.  Compliance with Trust Indenture Act.

                    Every amendment or supplement to this Indenture or the Notes shall be set forth in a document that complies with the TIA as then in effect.

Section 9.04.  Revocation and Effect of Consents.

                    Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note.  However, any such Holder of a Note or subsequent Holder of a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the waiver, supplement or amendment becomes effective.  An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder.

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Section 9.05.  Notation on or Exchange of Notes.

                    (a)          The Trustee may place an appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated.  The Company in exchange for all Notes may issue and the Trustee shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment, supplement or waiver.

                    (b)          Failure to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment, supplement or waiver.

Section 9.06.  Trustee to Sign Amendments, Etc.

                    The Trustee shall sign any amendment or supplement to this Indenture or any Note authorized pursuant to this Article Nine if the amendment or supplement does not adversely affect the rights, duties, liabilities or immunities of the Trustee.  The Company may not sign an amendment or supplemental Indenture or Note until its Board of Directors approves it.  In executing any amendment or supplement or Note, the Trustee shall be entitled to receive and (subject to Section 7.01 hereof) shall be fully protected in relying upon an Officers’ Certificate and an Opinion of Counsel stating that the execution of such amendment or supplement is authorized or permitted by this Indenture.

ARTICLE TEN
 NOTE GUARANTEES

Section 10.01.  Guarantee.  

                    (a)          Subject to this Article Ten, each of the Guarantors hereby, jointly and severally, and fully and unconditionally, guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of, this Indenture, the Notes or the obligations of the Company hereunder or thereunder, that: (a) the principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes, if lawful (subject in all cases to any applicable grace period provided herein), and
all other obligations of the Company to the Holders or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.  Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors shall be jointly and severally obligated to pay the same immediately.  Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.  

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                    (b)          The Guarantors hereby agree that, to the maximum extent permitted under applicable law, their obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor.  Subject to Section 6.06 hereof, each Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands whatsoever and covenants that this Note Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes and this Indenture.

                    (c)          If any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation to any of the Company or the Guarantors, any amount paid by any of them to the Trustee or such Holder, this Note Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.

                    (d)          Each Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby.  Each Guarantor further agrees that, as between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article Six hereof for the purposes of this Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in Article Six hereof, such obligations (whether or not due
and payable) shall forthwith become due and payable by the Guarantors for the purpose of this Note Guarantee.  The Guarantors shall have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the Holders under the Note Guarantee.

Section 10.02.  Limitation on Guarantor Liability.

                    Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to such Note Guarantee.  To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of such Guarantor will be limited to the maximum amount as will, after giving effect to all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this Article Ten, result in the obligations of such Guarantor under its Note Guarantee not constituting a fraudulent transfer or conveyance.

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Section 10.03.  Execution and Delivery of Note Guarantee.  

                    (a)          To evidence its Note Guarantee set forth in Section 10.01, each Guarantor hereby agrees that a notation of such Note Guarantee substantially in the form included in Exhibit E shall be endorsed by an Officer of such Guarantor on each Note authenticated and delivered by the Trustee and that this Indenture shall be executed on behalf of such Guarantor by its President or one of its Vice Presidents.

                    (b)          Each Guarantor hereby agrees that its Note Guarantee set forth in Section 10.01 shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Note Guarantee.

                    (c)          If an Officer whose signature is on this Indenture or on the Note Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Note Guarantee is endorsed, the Note Guarantee shall be valid nevertheless.

                    (d)          The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of the Guarantors.

                    (e)          If required by Section 4.18 hereof, the Company shall cause such Subsidiaries to execute supplemental indentures to this Indenture and Note Guarantees in accordance with Section 4.18 hereof and this Article Ten, to the extent applicable.

Section 10.04.  Guarantors May Consolidate, Etc., on Certain Terms.  

                    (a)          A Guarantor may not sell or otherwise dispose of all or substantially all of its assets to, or consolidate with or merge with or into (whether or not such Guarantor is the surviving Person), another Person, other than the Company or another Guarantor, unless:

	
  
 
  	
  
          (i)          immediately   after giving effect to that transaction, no Default or Event of Default   exists; and
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         either:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (A)          the   Person acquiring the property in any such sale or disposition or the Person   formed by or surviving any such consolidation or merger (if other than the   Guarantor) is a corporation or limited liability company organized or   existing under the laws of the United States, any state thereof or the   District of Columbia and  assumes all   the obligations of that Guarantor under this Indenture, its Note Guarantee   and the Registration Rights Agreement pursuant to a supplemental indenture   reasonably satisfactory to the Trustee; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (B)          such   sale or other disposition or consolidation or merger complies with Section   4.10 hereof.
  

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                    (b)          In case of any such consolidation, merger, sale or conveyance governed by Section 10.04(a)(ii)(A), upon the assumption by the successor Person, by supplemental indenture, executed and delivered to the Trustee and reasonably satisfactory in form to the Trustee, of the Note Guarantee endorsed upon the Notes and the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by a Guarantor, such successor Person shall succeed to and be substituted for a Guarantor with the same effect as if it had been named herein as a Guarantor.  Such successor Person thereupon may cause to be signed any or all of the Note Guarantees to be endorsed upon all of the Notes issuable hereunder which theretofore shall not have been signed by the Company and
delivered to the Trustee.  All the Note Guarantees so issued shall in all respects have the same legal rank and benefit under this Indenture as the Note Guarantees theretofore and thereafter issued in accordance with the terms of this Indenture as though all of such Note Guarantees had been issued at the date of the execution hereof.

Section 10.05.  Release of Guarantor.  

                    (a)          Any Guarantor will be released and relieved of any obligations under its Note Guarantee, (i)  in connection with any sale or other disposition of all of the Capital Stock of that Guarantor to a Person that is not (either before or after giving effect to such transaction) an Affiliate of the Company, if the sale of all such Capital Stock of that Guarantor complies with Section 4.10 hereof; (ii) if the Company properly designates that Guarantor as an Unrestricted Subsidiary under this Indenture or (iii) solely in the case of a Note Guarantee created pursuant to Section 4.18(a)(ii), upon the release or discharge of the Guarantee which resulted in the creation of such Note Guarantee, except a discharge or release by or as a result of payment under such Guarantee.  Upon delivery
by the Company to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the effect that one of the foregoing requirements has been satisfied and the conditions to the release of a Guarantor under this Section 10.05 have been met, the Trustee shall execute any documents reasonably required in order to evidence the release of such Guarantor from its obligations under its Note Guarantee.

                    (b)          Any Guarantor not released from its obligations under its Note Guarantee shall remain liable for the full amount of principal of and interest and Liquidated Damages, if any, on the Notes and for the other obligations of any Guarantor under this Indenture as provided in this Article Ten.

ARTICLE ELEVEN
 SATISFACTION AND DISCHARGE

Section 11.01.  Satisfaction and Discharge.

                    (a)          This Indenture shall be discharged and shall cease to be of further effect as to all Notes issued thereunder, when:

	
  
 
  	
  
          (i)          either:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (A)          all   Notes that have been authenticated (except lost, stolen or destroyed Notes   that have been replaced or paid and Notes for whose payment money has   theretofore been deposited in trust and thereafter repaid to the Company)   have been delivered to the Trustee for cancellation; or
  

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          (B)          all   Notes that have not been delivered to the Trustee for cancellation have   become due and payable by reason of the sending of a notice of redemption or   otherwise or will become due and payable within one year and the Company or   any Guarantor has irrevocably deposited or caused to be deposited with the   Trustee as trust funds in trust solely for the benefit of the Holders, cash   in U.S. dollars, non-callable Government Securities, or a combination   thereof, in such amounts as will be sufficient without consideration of any   reinvestment of interest, to pay and discharge the entire indebtedness on the   Notes not delivered to the Trustee for cancellation for principal, premium   and Liquidated Damages, if any, and accrued interest to the date of maturity   or redemption;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         no   Default or Event of Default shall have occurred and be continuing on the date   of any deposit referred to in clause (a)(i)(B) or shall occur as a result of   such deposit and such deposit will not result in a breach or violation of, or   constitute a default under, any other instrument to which the Company or any   Guarantor is a party or by which the Company or any Guarantor is bound;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (iii)        the   Company or any Guarantor has paid or caused to be paid all sums payable by it   under this Indenture; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)         the   Company has delivered irrevocable instructions to the Trustee under this   Indenture to apply the deposited money toward the payment of the Notes at   maturity or the redemption date, as the case may be.
  

                    (b)          In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel (which opinion may be subject to customary assumptions and exclusions) to the Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.

                    (c)          Notwithstanding the above, the Trustee shall pay to the Company from time to time upon its request any cash or Government Securities held by it as provided in this section which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification delivered to the Trustee, are in excess of the amount thereof that would then be required to be deposited to effect a satisfaction and discharge under this Article Eleven.

Section 11.02.  Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous Provisions.

                    Subject to Section 11.03 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee pursuant to Section 11.01 hereof in respect of the outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium and Liquidated Damages, if any, and interest, but such money need not be segregated from other funds except to the extent required by law.

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Section 11.03.  Repayment to the Company.

                    Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium and Liquidated Damages, if any, or interest on any Note and remaining unclaimed for two years after such principal, and premium or Liquidated Damages, if any, or interest has become due and payable shall be paid to the Company on its request or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company
cause to be published once, in the New York Times or The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining shall be repaid to the Company.

ARTICLE TWELVE
 MISCELLANEOUS

Section 12.01.  Trust Indenture Act Controls.

                    If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by TIA § 318(c), the imposed duties shall control.

Section 12.02.  Notices.

                    (a)          Any notice or communication by the Company or any Guarantor, on the one hand, or the Trustee on the other hand, to the other is duly given if in writing and delivered in Person or mailed by first class mail (registered or certified, return receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the others’ address:

	
  
 
  	
  
If to the   Company or any Guarantor:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Texas   Industries, Inc.
  
	
  
 
  	
  
1341 West   Mockingbird Lane
  
	
   
  	
  
Dallas,   Texas 75247
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Facsimile:  972-647-3320
  
	
  
 
  	
  
Attention:  General Counsel
  
	
  
 
  	
  
 
  
	
  
 
  	
  
With copies   to:
  
	
  
 
  	
  
Thompson   & Knight LLP
  
	
  
 
  	
  
1700 Pacific   Avenue
  
	
  
 
  	
  
Suite 3300
  
	
  
 
  	
  
Dallas,   TX  75201
  
	
  
 
  	
  
 
  
	
   
  	
  
Facsimile:  214-880-3135
  
	
  
 
  	
  
Attention:  Joe Dannenmaier
  
	
  
 
  	
  
 
  

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If to the   Trustee:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Wells Fargo   Bank, National Association
  
	
  
 
  	
  
505 Main   Street, Suite 301
  
	
  
 
  	
  
Fort Worth,   TX  76102
  
	
  
 
  	
  
Phone   817-334-7065
  
	
   
  	
  
Fax   817-885-8650
  
	
  
 
  	
  
Attention:  Melissa Scott
  

                    (b)          The Company the Guarantors or the Trustee, by notice to the others may designate additional or different addresses for subsequent notices or communications.

                    (c)          All notices and communications (other than those sent to Holders) shall be deemed to have been duly given:  at the time delivered by hand, if personally delivered; three Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.

                    (d)          Any notice or communication to a Holder shall be mailed by first class mail, certified or registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Registrar.  Any notice or communication shall also be so mailed to any Person described in TIA § 313(c), to the extent required by the TIA.  Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders.

                    (e)          If a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it.

                    (f)          If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee and each Agent at the same time.

Section 12.03.  Communication by Holders of Notes with Other Holders of Notes.

                    Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to its rights under this Indenture or the Notes.  The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c).

Section 12.04.  Certificate and Opinion as to Conditions Precedent.

                    (a)          Upon any request or application by the Company to the Trustee to take any action under this Indenture (except with respect to the initial issuance of the Notes), the Company shall furnish to the Trustee:

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          (i)         an   Officers’ Certificate in form and substance reasonably satisfactory to the   Trustee (which shall include the statements set forth in Section 12.05   hereof) stating that, in the opinion of the signers, all conditions precedent   and covenants, if any, provided for in this Indenture relating to the   proposed action have been satisfied; and
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ii)         an   Opinion of Counsel in form and substance reasonably satisfactory to the   Trustee (which shall include the statements set forth in Section 12.05   hereof) stating that, in the opinion of such counsel (who may rely upon and   Officers’ Certificate as to matters of fact), all such conditions precedent   and covenants have been satisfied.
  

Section 12.05.  Statements Required in Certificate or Opinion.

                    (a)          Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and shall include:

	
  
 
  	
  
          (i)          a   statement that the Person making such certificate or opinion has read such   covenant or condition;
  
	
  
 
  	
  
 
  
	
   
  	
  
          (ii)         a   brief statement as to the nature and scope of the examination or   investigation upon which the statements or opinions contained in such   certificate or opinion are based;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)        a   statement that, in the opinion of such Person, he or she has made such   examination or investigation as is necessary to enable him to express an   informed opinion as to whether or not such covenant or condition has been   satisfied; and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iv)         a   statement as to whether or not, in the opinion of such Person, such condition   or covenant has been satisfied.
  

Section 12.06.  Rules by Trustee and Agents.

                    The Trustee may make reasonable rules for action by or at a meeting of Holders.  The Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

Section 12.07.  No Personal Liability of Directors, Officers, Employees and Stockholders.

                    No director, officer, employee, incorporator or stockholder of the Company or any Guarantor, as such, shall have any liability for any obligations of the Company or the Guarantors under the Notes, this Indenture, the Note Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a Note waives and releases all such liability.  This waiver and release are part of the consideration for issuance of the Notes.  The waiver may not be effective to waive liabilities under the federal securities laws.

Section 12.08.  Governing Law.

                    THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES.

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Section 12.09.  Consent to Jurisdiction.

                    Any legal suit, action or proceeding arising out of or based upon this Indenture or the transactions contemplated hereby (“Related Proceedings”) may be instituted in the federal courts of the United States of America located in the City of New York or the courts of the State of New York in each case located in the City of New York (collectively, the “Specified Courts”), and each party irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding.  Service of any process, summons, notice or document by mail (to the extent allowed under any applicable statute or rule of court) to such party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court.  The parties irrevocably and
unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court has been brought in an inconvenient forum.

Section 12.10.  No Adverse Interpretation of Other Agreements.

                    This Indenture may not be used to interpret any other indenture, loan or debt agreement of the Company or any of its Subsidiaries or of any other Person.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

Section 12.11.  Successors.

                    All agreements of the Company in this Indenture and the Notes shall bind its successors.  All agreements of the Trustee in this Indenture shall bind its successors.  All agreements of each Guarantor in this Indenture shall bind its successors, except as otherwise provided in Section 10.04.

Section 12.12.  Severability.

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

Section 12.13.  Counterpart Originals.

                    The parties may sign any number of copies of this Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

Section 12.14.  Acts of Holders.

                    (a)          Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by the Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agents duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company.  Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments.  Proof of execution of

 any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company if made in the manner provided in this Section 12.14.

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                    (b)          The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to such witness, notary or officer the execution thereof.  Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of authority.  The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which the Trustee deems sufficient.

                    (c)          Notwithstanding anything to the contrary contained in this Section 12.14, the principal amount and serial numbers of Notes held by any Holder, and the date of holding the same, shall be proved by the register of the Notes maintained by the Registrar as provided in Section 2.04 hereof.

                    (d)          If the Company shall solicit from the Holders of the Notes any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to a resolution of its Board of Directors, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so.  Notwithstanding TIA § 316(c), such record date shall be the record date specified in or pursuant to such resolution, which shall be a date not earlier than the date 30 days prior to the first solicitation of Holders generally in connection therewith or the date of the most recent list of Holders forwarded to the Trustee prior
to such solicitation pursuant to Section 2.06 hereof and not later than the date such solicitation is completed.  If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of the then outstanding Notes have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the then outstanding Notes shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than eleven months after the record date.

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

97

                    (f)          Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with regard to any particular Note may do so itself with regard to all or any part of the principal amount of such Note or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any part of such principal amount.

Section 12.15.  Benefit of Indenture.

                    Nothing, in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto, any Paying Agent, any Registrar and its successors hereunder, and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture.

Section 12.16.  Table of Contents, Headings, Etc.

                    The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part of this Indenture and shall in no way modify or restrict any of the terms or provisions hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

98

	
  
 
  	
  
SIGNATURES
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
Very truly yours,
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
TEXAS   INDUSTRIES, INC.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
By:
  	
  
/s/ RICHARD M. FOWLER
  
	
  
 
  	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Name:
  	
  
Richard M. Fowler
  
	
  
 
  	
  
 
  	
  
Title:
  	
  
Executive Vice President –   Finance and Chief Financial Officer
  

	
   
  	
  
 
  	
  
BROOKHOLLOW CORPORATION
  
	
  
 
  	
  
 
  	
  
BROOKHOLLOW PROPERTIES, INC.
  
	
  
 
  	
  
 
  	
  
BROOKHOLLOW    OF ALEXANDRIA ,   INC.
  
	
  
 
  	
  
 
  	
  
BROOKHOLLOW    OF VIRGINIA,   INC.
  
	
  
 
  	
  
 
  	
  
SOUTHWESTERN FINANCIAL CORPORATION
  
	
   
  	
  
 
  	
  
CREOLE CORPORATION
  
	
  
 
  	
  
 
  	
  
PACIFIC CUSTOM MATERIALS,   INC.
  
	
  
 
  	
  
 
  	
  
RIVERSIDE CEMENT COMPANY
  
	
  
 
  	
  
 
  	
  
PARTIN LIMESTONE PRODUCTS,   INC.
  
	
  
 
  	
  
 
  	
  
RIVERSIDE CEMENT HOLDINGS   COMPANY
  
	
   
  	
  
 
  	
  
TXI AVIATION, INC.
  
	
  
 
  	
  
 
  	
  
TXI CALIFORNIA INC.
  
	
  
 
  	
  
 
  	
  
TXI CEMENT COMPANY
  
	
  
 
  	
  
 
  	
  
TXI POWER COMPANY
  
	
  
 
  	
  
 
  	
  
TXI RIVERSIDE INC.
  
	
  
 
  	
  
 
  	
  
TXI TRANSPORTATION COMPANY
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
By:
  	
  
/s/ RICHARD M. FOWLER
  
	
  
 
  	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  	
  
Authorized Officer
  

	
  
 
  	
  
 
  	
  
TEXAS   INDUSTRIES HOLDINGS,   LLC
  
	
   
  	
  
 
  	
  
TEXAS   INDUSTRIES TRUST
  
	
  
 
  	
  
 
  	
  
TXI LLC
  
	
  
 
  	
  
 
  	
  
TXI OPERATING TRUST
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
By:
  	
  
/s/ RICHARD M. FOWLER
  
	
  
 
  	
  
 
  	
  
 
  	
  

  
	
   
  	
  
 
  	
  
 
  	
  
Authorized Officer
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
TXI OPERATIONS, LP
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
By:
  	
  
TXI OPERATING TRUST, its general partner
  
	
  
 
  	
  
 
  	
  
 
  	
  

  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
By:
  	
  
/s/ RICHARD M. FOWLER
  
	
  
 
  	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  	
  
Authorized Officer
  

	
  
 
  	
  
 
  	
  
WELLS  FARGO  BANK, NATIONAL    ASSOCIATION,
  
	
   
  	
  
 
  	
  
as Trustee
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
By:
  	
  
/s/ MELISSA SCOTT
  
	
  
 
  	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Name:
  	
  
Melissa Scott
  
	
  
 
  	
  
 
  	
  
Title:
  	
  
Vice President
  

EXHIBIT A

[Face of Note]

[INSERT APPROPRIATE LEGENDS]

A1-1

CUSIP  [                    ]

	
  
No.
  	
  
**$__________**
  

TEXAS INDUSTRIES, INC.

71⁄4% Senior Notes due 2013

Issue Date:

                    Texas Industries, Inc., a Delaware corporation (the “Company”, which term includes any successor under this Indenture hereinafter referred to), for value received, promises to pay to CEDE & CO., or its registered assigns, the principal sum of [Amount of Note] ($         ) on July 15, 2013.

Interest Payment Dates:  January 15 and July 15, commencing January 15, 2006.

Record Dates:  January 1 and July 1.

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

[ATTACH NOTATION OF GUARANTEE FOR EACH GUARANTOR]

A1-2

                    IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by its duly authorized officers.

	
  
 
  	
  
TEXAS INDUSTRIES, INC.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
   
  	
  
Title:
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
Title:
  	
  
 
  

(Trustee’s Certificate of Authentication)

This is one of the 71⁄4% Senior Notes due 2013 described in the within-mentioned Indenture.

Dated:  

	
  WELLS FARGO BANK,   NATIONAL ASSOCIATION,
  	
  
 
  
	
  
as Trustee
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  
	
  
 
  	
  

  	
  
 
  
	
  
 
  	
  
Authorized   Signatory
  	
  
 
  

A1-3

[Reverse Side of Note]

TEXAS INDUSTRIES, INC.

71⁄4% Senior Notes due 2013

                    Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

                    1.          Interest.  The Company promises to pay interest on the principal amount of this Note at 71⁄4% per annum from the date hereof until maturity and shall pay the Liquidated Damages, if any, payable pursuant to Section 5 of the Registration Rights Agreement referred to below.  The Company shall pay interest and Liquidated Damages, if any, semi-annually in arrears on January 15 and July 15 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”).  Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of original issuance; provided that if there is no existing Default in the payment of
interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided further that the first Interest Payment Date shall be January 15, 2006.  The Company shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 1% per annum in excess of the rate then in effect; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

                    2.          Method of Payment.  The Company shall pay interest on the Notes (except defaulted interest) and Liquidated Damages, if any, to the Persons who are registered Holders of Notes at the close of business on the record date immediately preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.13 of the Indenture with respect to defaulted interest.  The Notes shall be payable as to principal, premium and Liquidated Damages, if any, and interest at the office or agency of the Company maintained for such purpose in The City of New York, or, at the option of the Company, payment of interest and Liquidated Damages, if any, may be made by check mailed to the Holders at
their addresses set forth in the register of Holders, and provided that payment by wire transfer of immediately available funds shall be required with respect to principal of and interest, premium and Liquidated Damages, if any, on, all Global Notes and to any Holder of $1.0 million or more of Notes which shall have provided wire transfer instructions to the Company or the Paying Agent.  Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

A1-4

                    3.          Paying Agent and Registrar.  Initially, the Trustee under the Indenture shall act as Paying Agent and Registrar.  The Company may change any Paying Agent or Registrar without notice to any Holder.  The Company or any of its Subsidiaries may act in any such capacity.

                    4.          Indenture.  The Company issued the Notes under an Indenture dated as of July 6, 2005 (“Indenture”) among the Company, the Guarantors and the Trustee.  The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended.  The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms.  To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.  The Indenture pursuant to which this Note is issued provides that an unlimited aggregate principal amount of Additional Notes may be issued
thereunder.

                    5.          Optional Redemption.  (a)  Except as set forth in paragraph 5(b) below, the Company shall not have the option to redeem any Notes prior to July 15, 2009.  Thereafter, the Company shall have the option to redeem the Notes, in whole or in part, upon not less than 30 nor more than 60 days’ prior notice, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if any, thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on July 15 of the years indicated below (subject to the right of Holders on the relevant record date to receive interest due on the related interest payment date):

	
  Year
  	
   
 	
  
Percentage
  
	
  

  	
  
 
  	
  

  
	
  
2009
  	
  
 
  	
  
103.625%
  
	
  
2010
  	
  
 
  	
  
101.813%
  
	
  
2011 and   thereafter
  	
  
 
  	
  
100.000%
  

                    (b)          Notwithstanding the foregoing, at any time prior to July 15, 2008, the Company may redeem up to 35% of the aggregate principal amount of Notes originally issued under the Indenture (including any Additional Notes) at a redemption price of 107.250% of the principal amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any, to the redemption date, with the net cash proceeds of one or more Equity Offerings of the Company; provided that (A) at least 65% of the aggregate principal amount of the Notes originally issued under the Indenture (including any Additional Notes) remains outstanding immediately after the occurrence of such redemption, excluding Notes held by the Company and its Subsidiaries; and (B) the redemption must occur within 90 days of
the date of the closing of such Equity Offering.  

                    (c)          In addition, at any time prior to July 15, 2009, the Company may redeem all or part of the Notes upon not less than 30 days nor more than 60 days’ notice at a redemption price equal to the sum of (i) the principal amount thereof, plus (ii) accrued and unpaid interest, if any, to the applicable date of redemption, plus (iii) the Make-Whole Premium.

                    6.          Repurchase
at Option of Holder.  (a) If a Change of Control occurs, each Holder of
Notes shall have the right to require the Company to repurchase all or any part
(equal to $1,000 or an integral multiple thereof) of that Holder’s Notes
pursuant to an offer by the Company (a “Change of Control Offer”).

A1-5

In the Change of Control Offer, the Company shall offer payment (a “Change
of Control Payment”) in cash of 101% of the aggregate principal amount of
Notes repurchased plus accrued and unpaid interest and Liquidated Damages, if
any, thereon, to the date of repurchase (the “Change of Control Payment
Date”, which date shall be no earlier than the date of such Change of
Control). Within 30 days following any Change of Control, the Company shall mail
a notice to each Holder describing the transaction or transactions that
constitute the Change of Control and offering to repurchase Notes on the Change
of Control Payment Date specified in such notice, which shall be no earlier than
30 days and no later than 60 days from the date such notice is mailed, pursuant
to the procedures required by the Indenture and described in such
notice.

                    (b)          Within
360 days after the receipt of any Net Proceeds from an Asset Sale, the Company
may apply such Net Proceeds at its option: (i) to repay Indebtedness under the
Credit Facilities or Unsubordinated Indebtedness secured by such assets and, if
the Indebtedness repaid is revolving credit Indebtedness, to correspondingly
reduce commitments with respect thereto; or (ii) to purchase Replacement Assets
(or enter into a binding agreement to purchase such Replacement Assets; provided
that (x) such purchase is consummated within 90 days after the date of such
binding agreement and (y) if such purchase is not consummated within the period
set forth in subclause (x), the Net Proceeds not so applied will be deemed to be
Excess Proceeds (as defined below)).  Pending the final applications of any
such Net Proceeds, the Company may temporarily reduce revolving credit
borrowings or otherwise invest such Net Proceeds in any manner that is not
prohibited by the Indenture.  Any Net Proceeds from Asset Sales that are
not applied or invested as provided in the next preceding sentence will
constitute “Excess Proceeds.”  Within ten days after the
aggregate amount of Excess Proceeds exceeds $10.0 million, the Company shall
make an offer (an “Asset Sale Offer”) to all Holders of Notes and all
holders of other Unsubordinated Indebtedness containing provisions similar to
those set forth in the Indenture with respect to offers to purchase with the
proceeds of sales of assets, to purchase the maximum principal amount of Notes
and such other Unsubordinated Indebtedness that may be purchased out of the
Excess Proceeds.  The offer price in any Asset Sale Offer shall be equal to
100% of the principal amount thereof plus accrued and unpaid interest and
Liquidated Damages, if any, to the date of purchase and shall be payable in
cash.  If any Excess Proceeds remain after consummation of an Asset Sale
Offer, the Company may use such Excess Proceeds for any purpose not otherwise
prohibited by the Indenture. If the aggregate principal amount of Notes and such
other Unsubordinated Indebtedness tendered into such Asset Sale Offer exceeds
the amount of Excess Proceeds, Notes and such other Unsubordinated Indebtedness
to be purchased shall be selected on a pro rata basis based on the principal
amount of Notes and such other Unsubordinated Indebtedness tendered.  Upon
completion of each Asset Sale Offer, the amount of Excess Proceeds shall be
reset at zero.

                    7.          Denominations, Transfer, Exchange.  The Notes are in registered form without coupons in denominations of $1,000 and integral multiples of $1,000.  The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company is not required to transfer or exchange any Note selected for redemption. Also, the Company is not required to transfer or exchange any Note for a period of 15 days before a selection of Notes to be redeemed.  Transfer may be restricted as provided in the
Indenture.

A1-6

                    8.          Persons Deemed Owners.  The registered Holder of a Note will be treated as its owner for all purposes.

                    9.          Amendment, Supplement and Waiver.  Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes), and any existing default or compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes).  Without the consent of any Holder of a Note, the Indenture or the Notes may be
amended or supplemented to, among other things, cure any ambiguity, defect or inconsistency, or to make any change that does not adversely affect the legal rights under the Indenture of any such Holder.

                    10.          Defaults and Remedies.  In the case of an Event of Default arising from certain events of bankruptcy or insolvency, with respect to the Company or any Significant Subsidiary of the Company (or any Restricted Subsidiaries that together would constitute a Significant Subsidiary), all outstanding Notes will become due and payable immediately without further action or notice.  If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately by notice in writing to the Company specifying the Event of Default.  Holders of the Notes may not enforce the Indenture or the Notes except as provided in the Indenture.  Subject
to certain limitations, Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Holders of the Notes notice of any Default or Event of Default (except a Default or Event of Default relating to the payment of principal, premium, interest or Liquidated Damages) if it determines that withholding notice is in their interest.  Holders of a majority in principal amount of the then outstanding Notes by notice to the Trustee may, on behalf of the Holders of all of the Notes, rescind and annul a declaration of acceleration pursuant to Section 6.02 of the Indenture, and its consequences, and waive any related existing Default or Event of Default if certain conditions are satisfied.

                    With respect to periods after July 15, 2009, in the case of any Event of Default occurring by reason of any willful action or inaction taken or not taken by or on behalf of the Company with the intention of avoiding payment of the premium that the Company would have had to pay if the Company then had elected to redeem the Notes pursuant to Section 3.07(a) of the Indenture, an equivalent premium shall also become and be immediately due and payable to the extent permitted by law upon the acceleration of the Notes.  With respect to periods prior to July 15, 2009, if an Event of Default occurs during any time that the Notes are outstanding, by reason of any willful action (or inaction) taken (or not taken) by or on behalf of the Company with the intention of avoiding the prohibition on redemption of the Notes, then the premium specified in
Section 3.07(c) of the Indenture that would have been payable upon redemption at the time the Event of Default occurs shall also become immediately due and payable to the extent permitted by law upon the acceleration of the Notes.

A1-7

                    11.          Trustee Dealings with Company.  The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee.

                    12.          No Recourse Against Others.  No director, officer, employee, incorporator or stockholder of the Company or any Guarantor, as such, shall have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture, the Note Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a Note waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.  The waiver may not be effective to waive liabilities under the federal securities laws.

                    13.          Authentication.  This Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

                    14.          Additional Rights of Holders of Restricted Global Notes and Restricted Definitive Notes.  In addition to the rights provided to Holders under the Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes shall have all the rights set forth in the Registration Rights Agreement dated as of July 6, 2005, between the Company, the Guarantors and the parties named on the signature pages thereof or, in the case of Additional Notes, Holders of Restricted Global Notes and Restricted Definitive Notes shall have the rights set forth in one or more registration rights agreements, if any, between the Company, the Guarantors and the other parties thereto, relating to rights given by the Company and the Guarantors to the purchasers of Additional Notes (the
“Registration Rights Agreement”).

                    15.          CUSIP Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

                    16.          Guarantee.  The Company’s obligations under the Notes are fully and unconditionally guaranteed, jointly and severally, by the Guarantors.   

                    17.          Copies of Documents.  The Company shall furnish to any Holder upon written request and without charge a copy of the Indenture and/or the Registration Rights Agreement.  Requests may be made to:

	
  
 
  	
  
Texas   Industries, Inc.
  
	
  
 
  	
  
1341 West   Mockingbird Lane
  
	
  
 
  	
  
Dallas,   TX  75247
  
	
   
  	
  
 
  
	
  
 
  	
  
Facsimile:   972-647-6742
  
	
  
 
  	
  
Attention:   Frederick Anderson, Vice President - General Counsel, and Secretary
  

A1-8

ASSIGNMENT FORM

                    To assign this Note, fill in the form below:

	
  
(I) or (we)   assign and transfer this Note   to: _____________________________________________________________
  
	
  
                             (Insert   assignee’s legal name)
  
	
  
 
  
	
  

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

  
	
  
 
  
	
  

  
	
  
 
  
	
  

  
	
  
 
  
	
  

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

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

Date:                               

	
  
 
  	
  
Your Signature:
  	
  
 
  
	
   
  	
   
 	
  

  
	
  
 
  	
  
 
  	
  
(Sign   exactly as your name appears on the face of this Note)
  
	
  
 
  	
  
 
  	
  
 
  
	
  
Signature   Guarantee*: ______________________________________
  	
  
 
  

	
  

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

A1-9

OPTION OF HOLDER TO ELECT PURCHASE

                    If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.14 of the Indenture, check the appropriate box below:

	
  
o
  	
  
Section 4.10
  	
  
o
  	
  
Section 4.14
  

                    If you want to elect to have only part of the Note purchased by the Company pursuant to Section 4.10 or Section 4.14 of the Indenture, state the amount you elect to have purchased:

$____________________

Date: ______________

	
  
 
  	
  
Your Signature:
  	
  
 
  
	
  
 
  	
   
 	
  

  
	
   
  	
  
 
  	
  
(Sign   exactly as your name appears on the face of this Note)
  
	
  
 
  	
   
 	
  
 
  
	
  
 
  	
  
Tax Identification No.:
  	
  
_____________________________________
  
	
  
 
  	
   
 	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
Signature   Guarantee*: ______________________________________
  	
  
 
  

	
  

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

A1-10

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

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

	
  
Date of   Exchange
  	
   
 	
  
Amount of   Decrease in
   Principal Amount at 
   Maturity
   of this Global Note
  	
   
 	
  
Amount of   Increase in
   Principal Amount at 
   Maturity
   of this Global Note
  	
   
 	
  
Principal   Amount at 
   Maturity
   of this Global Note
   Following such
   decrease (or increase)
  	
   
 	
  
Signature   of
   Authorized Officer
   of Trustee or
   Note Custodian
  
	
  

  	
   
  	
  

  	
  
 
  	
  

  	
  
 
  	
  

  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  

A1-11

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Texas Industries, Inc.
 1341 West Mockingbird Lane
 Dallas, Texas  75247
 Attention:  General Counsel 

Wells Fargo Bank, National Association
 505 Main Street, Suite 301
 Fort Worth, TX  76102
 Attention:  Corporate Trust Administration

                    Re:   71⁄4% Senior Notes due 2013

                    Reference is hereby made to the Indenture, dated as of July 6, 2005 (the “Indenture”), among Texas Industries, Inc., a Delaware corporation (the “Company”), the Guarantors, and Wells Fargo Bank, National Association, as trustee.  Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

                    ___________________ (the “Transferor”) owns and proposes to transfer the Note[s] or interest in such Note[s] specified in Annex A hereto, in the principal amount at maturity of $___________ in such Note[s] or interests (the “Transfer”), to  ___________________________ (the “Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

          
o
          1.          Check if Transferee will take delivery of a beneficial interest in the 144A Global Note or a Definitive Note Pursuant to Rule 144A.  The Transfer is being effected pursuant to and in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive Note is being transferred to a Person that the Transferor reasonably believed and believes is purchasing the beneficial interest or Definitive Note for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a transaction meeting the requirements of Rule
144A and such Transfer is in compliance with any applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A Global Note and/or the Definitive Note and in the Indenture and the Securities Act.

B-1

          
o
          2.          Check if Transferee will take delivery of a beneficial interest in a Legended Regulation S Global Note, or a Definitive Note pursuant to Regulation S.  The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act and (iv) the transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person.  Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Legended Regulation S Global Note and/or the Definitive Note and in the Indenture and the Securities Act.

          
o
          3.          Check and complete if Transferee will take delivery of a Restricted Definitive Note pursuant to any provision of the Securities Act other than Rule 144A or Regulation S.  The Transfer is being effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Notes and Restricted Definitive Notes and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of any state of the United States, and accordingly the Transferor hereby further certifies that (check one):

          
o
          (a)          such Transfer is being effected to the Company or a subsidiary thereof; or

          
o
          (b)          such Transfer is being effected to an Institutional Accredited Investor and pursuant to an exemption from the registration requirements of the Securities Act other than Rule 144A, Rule 144 or Rule 904, and the Transferor hereby further certifies that it has not engaged in any general solicitation within the meaning of Regulation D under the Securities Act and the Transfer complies with the transfer restrictions applicable to beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the requirements of the exemption claimed, which certification is supported by (1) a certificate executed by the Transferee in the form of Exhibit D to the Indenture and (2) if such transfer is in respect of an aggregate principal amount of Notes less than $100,000, an Opinion of Counsel provided by the Transferor or the Transferee (a copy of
which the Transferor has attached to this certification), to the effect that such Transfer is in compliance with the Securities Act.  Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Definitive Notes and in the Indenture and the Securities Act.

                    4.          Check if Transferee will take delivery of a beneficial interest in an Unrestricted Global Note or of an Unrestricted Definitive Note.

B-2

          
o
          (a)          Check if Transfer is Pursuant to Rule 144.  (i) The Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

          
o
          (b)          Check if Transfer is Pursuant to Regulation S.  (i) The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and, in the case of a transfer from a Restricted Global Note or a Restricted Definitive Note, the Transferor hereby further certifies that (a) the Transfer is not being made to a person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore
securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (b) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (c) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act and (d) the transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person, and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

          
o
          (c)          Check if Transfer is Pursuant to Other Exemption.  (i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or
Restricted Definitive Notes and in the Indenture.

B-3

                    This certificate and the statements contained herein are made for your benefit and the benefit of the Company.

	
  
 
  	
  
Dated: _________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  

  
	
  
 
  	
  
[Insert Name of Transferor]
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
Title:
  	
  
 
  

B-4

ANNEX A TO CERTIFICATE OF TRANSFER

	
  1.
  	
  
The   Transferor owns and proposes to transfer the following:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
[CHECK ONE OF (A) OR (B)]
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
o
  	
  
(A)
  	
  
A BENEFICIAL   INTEREST IN THE:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
(i)
  	
  
144A Global   Note (CUSIP 882491 AJ 2); or
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
(ii)
  	
  
Regulation S   Global Note (CUSIP U88244 AB 1); or
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
o
  	
  
(B)
  	
  
A RESTRICTED   DEFINITIVE NOTE.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
2.
  	
  
After the   Transfer the Transferee will hold:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
[CHECK ONE]
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
o
  	
  
(A)
  	
  
A BENEFICIAL   INTEREST IN THE:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
(i)
  	
  
144A Global   Note (CUSIP 882491 AJ 2); or
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
(ii)
  	
  
Regulation S   Global Note (CUSIP U88244 AB 1); or
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
(iii)
  	
  
Unrestricted   Global Note (CUSIP [  ]); or
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
o
  	
  
(B)
  	
  
A RESTRICTED   DEFINITIVE NOTE; OR
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
o
  	
  
(C)
  	
  
AN   UNRESTRICTED DEFINITIVE NOTE,
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
in   accordance with the terms of the Indenture.
  

B-5

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Texas Industries, Inc.
 1341 West Mockingbird Lane
 Dallas, Texas  75247
 Attention:  General Counsel 

Wells Fargo Bank, National Association
 505 Main Street, Suite 301
 Fort Worth, TX  76102
 Attention:  Corporate Trust Administration

                    Re:  71⁄4% Senior Notes due 2013

                    Reference is hereby made to the Indenture, dated as of July 6, 2005 (the “Indenture”), among Texas Industries, Inc., a Delaware corporation (the “Company”), the Guarantors and Wells Fargo Bank, National Association, as trustee.  Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

                    __________________________ (the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the principal amount at maturity of $____________ in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner hereby certifies that:

                    1.          Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

          
o
          (a)           Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial interest in an Unrestricted Global Note.  In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an equal principal amount at maturity, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance with the United States Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the beneficial interest in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

          
o
          (b)          Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted Definitive Note.  In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the 

C-1

Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

          
o
          (c)          Check if Exchange is from Restricted Definitive Note to beneficial interest in an Unrestricted Global Note.  In connection with the Owner’s Exchange of a Restricted Definitive Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired in compliance with any applicable blue sky securities laws of any state of the United
States.

          
o
          (d)          Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note.  In connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

                    2.          Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes

          
o
          (a)          Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted Definitive Note.  In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a Restricted Definitive Note with an equal principal amount at maturity, the Owner hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account without transfer.  Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive Note issued will continue to be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and in the Indenture and the Securities Act.

          
o
          (b)          Check if Exchange is from Restricted Definitive Note to beneficial interest in a Restricted Global Note.  In connection with the Exchange of the Owner’s Restricted Definitive Note for a beneficial interest in the [CHECK ONE] :

                    
o
          144A Global Note, :

                    
o
          Regulation S Global Note, :

C-2

with an equal principal amount at maturity, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act.

                    This certificate and the statements contained herein are made for your benefit and the benefit of the Company.

	
   
  	
  
Dated: _________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  

  
	
  
 
  	
  
[Insert Name of Transferor]
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
Title:
  	
  
 
  

C-3

EXHIBIT D

FORM OF CERTIFICATE FROM
 ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Texas Industries, Inc.
 1341 West Mockingbird Lane
 Dallas, Texas  75247
 Attention:  General Counsel

Wells Fargo Bank, National Association
 505 Main Street, Suite 301
 Fort Worth, TX  76102
 Attention:  Corporate Trust Administration 

                    Re:  71⁄4% Senior Notes due 2013

                    Reference is hereby made to the Indenture, dated as of July 6, 2005 (the “Indenture”), among Texas Industries, Inc., a Delaware corporation (the “Company”), the Guarantors and Wells Fargo Bank, National Association, as trustee.  Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

                    In connection with our proposed purchase of $____________ aggregate principal amount at maturity of:

	
  
 
  	
  
(a)
  	
  
o:
  	
  
beneficial   interest in a Global Note, or
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
o
  	
  
a Definitive   Note,
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
we confirm   that:
  

                    1.          We understand that any subsequent transfer of the Notes or any interest therein is subject to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except in compliance with, such restrictions and conditions and the United States Securities Act of 1933, as amended (the “Securities Act”).

                    2.          We understand that the offer and sale of the Notes have not been registered under the Securities Act, and that the Notes and any interest therein may not be offered or sold except as permitted in the following sentence.  We agree, on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell the Notes or any interest therein, we will do so only:

	
  
 
  	
  
             (i)(a) to a person whom we reasonably believe is a qualified institutional   buyer (as defined in Rule 144A under the securities act) in a transaction   meeting the requirements of Rule 144A, (b) in a transaction meeting the   requirements of Rule 144 under the Securities Act, (c) outside the United States   to a non-U.S. person in a transaction meeting the requirements of Rule 903 or   904 under the Securities Act, (d) to an institutional “accredited investor”   (as defined in Rule 501(a)(1), (2) (3) or (7) of the Securities Act (an 
  

D-1

	
  
 
  	
  
“Institutional   Accredited Investor”)) that, prior to such transfer, furnishes the trustee a   signed letter substantially in the form of this letter and, if such transfer   is in respect of an aggregate principal amount of Notes less than $100,000,   an Opinion of Counsel acceptable to the issuer that such transfer is in   compliance with the Securities Act, or (e) in accordance with another   exemption from the registration requirements of the Securities Act (and based   upon an Opinion of Counsel if the Company so requests),
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)   to the Company, or
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (iii)   pursuant to an effective registration statement and, in each case, in   accordance with any applicable securities laws of any state of the United   States or any other applicable jurisdiction;
  

and we further agree to provide to any person purchasing the Definitive Note or beneficial interest in a Global Note from us in a transaction meeting the requirements of this paragraph a notice advising such purchaser that resales thereof are restricted as stated herein.

                    3.          We understand that, on any proposed resale of the Notes or beneficial interest therein, we will be required to furnish to you and the Company such certifications, legal opinions and other information as you and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions.  We further understand that the Notes purchased by us will bear a legend to the foregoing effect.

                    4.          We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any accounts for which we are acting are each able to bear the economic risk of our or its investment.

                    5.          We are acquiring the Notes or beneficial interest therein purchased by us for our own account or for one or more accounts (each of which is an institutional “accredited investor”) as to each of which we exercise sole investment discretion.

                    You and the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby.

	
  Dated: _________________
  	
  
 
  	
  
 
  
	
  
 
  	
  

  
	
  
 
  	
  
[Insert Name of Accredited Investor]
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
Title:
  	
  
 
  

D-2

EXHIBIT E

FORM OF NOTATION OF GUARANTEE

                    For value received, each Guarantor (which term includes any successor Person under the Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture dated as of July 6, 2005 (the “Indenture”) among Texas Industries, Inc., the other Guarantors (as defined in the Indenture) and Wells Fargo Bank, National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes (as defined in the Indenture), whether at maturity, by acceleration, redemption or otherwise, and the due and punctual payment of interest on overdue principal premium, if any, and interest and Liquidated Damages, if any, on the Notes, if lawful(subject in all cases
to any applicable grace period provided herein), and the due and punctual performance of all other obligations of the Company to the Holders or the Trustee all in accordance with the terms of the Indenture and the Notes and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.  The obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Note Guarantee and the Indenture are expressly set forth in Article Ten of the Indenture and reference is hereby made to the Indenture for the precise terms of the Note Guarantee.  Each Holder of a Note, by accepting the same, (a) agrees to and shall be bound by such provisions and (b) appoints the Trustee attorney-in-fact of such Holder for such purpose.

E-1

                    IN WITNESS HEREOF, each Guarantor has caused this Notation of Guarantee to be signed manually or by facsimile by its duly authorized officer.

	
  
 
  	
  
[NAME OF   GUARANTOR]
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
   
  	
  
Title:
  	
  
 
  

E-2

EXHIBIT F

FORM OF SUPPLEMENTAL INDENTURE
 TO BE DELIVERED BY SUBSEQUENT GUARANTORS

                    Supplemental Indenture (this “Supplemental Indenture”), dated as of _____________, among  __________________ (the “Guaranteeing Subsidiary”), a subsidiary of Texas Industries, Inc. (or its permitted successor), a Delaware corporation (the “Company”), and Wells Fargo Bank, National Association (or its permitted successor), as trustee under the Indenture referred to below (the “Trustee”).

W I T N E S S E T H

                    WHEREAS, the Company and the other Guarantors party thereto have heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of July 6, 2005 providing for the issuance of 7.25% Senior Notes due 2013 (the “Notes”);

                    WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Note Guarantee”); and

                    WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

                    NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

                    1.     Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

                    2.     Agreement to Guarantee.

          (a)          In accordance with the terms of Article Ten of the Indenture, the Guaranteeing Subsidiary, along with all other Guarantors, jointly and severally, and fully and unconditionally, guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of the Indenture, the Notes or the obligations of the Company hereunder or thereunder, that:

                              (i)          the principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes, if lawful (subject in all cases to any applicable grace period provided herein), and all other obligations of the Company to the Holders or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof;

F-1

                              (ii)          in case of any extension of time of payment or renewal of any Notes or any of such other obligations, the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.  Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors shall be jointly and severally obligated to pay the same immediately.  The Guaranteeing Subsidiary agrees that this is a guarantee of payment and not a guarantee of collection.

          (b)          The Guaranteeing Subsidiary hereby agrees that, to the maximum extent permitted under applicable law, its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance that might otherwise constitute a legal or equitable discharge or defense of a Guarantor.

          (c)          The Guaranteeing Subsidiary, subject to Section 6.06 of the Indenture, hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that this Note Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes and the Indenture.

          (d)          The Guaranteeing Subsidiary agrees that if any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantors, or any custodian, trustee, liquidator or other similar official acting in relation to any of the Company or the Guarantors, any amount paid by any of them to the Trustee or such Holder, this Note Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.

          (e)          The Guaranteeing Subsidiary agrees that the Guaranteeing Subsidiary shall not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby.

          (f)          The Guaranteeing Subsidiary agrees that, as between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article Six of the Indenture for the purposes of this Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in Article Six of the Indenture, such obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantors for the purpose of this Note Guarantee.

F-2

          (g)          The Guaranteeing Subsidiary shall have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of Holders under the Note Guarantee.  

          (h)          The Guaranteeing Subsidiary confirms, pursuant to Section 10.02 of the Indenture, that it is the intention of such Guaranteeing Subsidiary that its Note Guarantee not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to its Note Guarantee and, to effectuate the foregoing intention, hereby irrevocably agrees that the obligations of such Guaranteeing Subsidiary will be limited to the maximum amount as will, after giving effect to all other contingent and fixed liabilities of such Guaranteeing Subsidiary that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under Article Ten of the Indenture, result in the obligations of such Guaranteeing Subsidiary under its Note Guarantee not constituting a fraudulent transfer or conveyance.

                    3.      Execution and Delivery.  The Guaranteeing Subsidiary agrees that the Note Guarantees shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Note Guarantee.

                    4.     Guaranteeing Subsidiary May Consolidate, Etc., on Certain Terms.

                    (a)          A Guarantor may not sell or otherwise dispose of all or substantially all of its assets, or consolidate with or merge with or into (whether or not such Guarantor is the surviving Person) another Person, other than the Company or another Guarantor, unless:

	
  
 
  	
  
          (i)          immediately   after giving effect to that transaction, no Default or Event of Default   exists; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
          (ii)         either:
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (A)          the   Person acquiring the property in any such sale or disposition or the Person   formed by or surviving any such consolidation or merger (if other than the   Guarantor) is a corporation or limited liability company organized or   existing under the laws of the United States, any state thereof or the   District of Columbia and assumes all the obligations of that Guarantor under   the Indenture, its Note Guarantee and the Registration Rights Agreement   pursuant to a supplemental indenture reasonably satisfactory to the Trustee;   or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (B)          such   sale or other disposition or consolidation or merger complies with Section   4.10 of the Indenture.
  

                    (b)
          In case of any such
consolidation, merger, sale or conveyance governed by Section 4(a) hereof and
upon the assumption by the successor Person, by supplemental indenture, executed
and delivered to the Trustee and reasonably satisfactory in form to the Trustee,
of the Note Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of the Indenture to be
performed by a Guarantor, such successor Person shall succeed to and be
substituted for a Guarantor with the same effect as if it had been named herein
as a Guarantor. 

F-3

Such successor Person thereupon may cause to be signed any or all of the Note
Guarantees to be endorsed upon all of the Notes issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the
Trustee.  All the Note Guarantees so issued shall in all respects have the
same legal rank and benefit under the Indenture as the Note Guarantees
theretofore and thereafter issued in accordance with the terms of the Indenture
as though all of such Note Guarantees had been issued at the date of the
execution hereof.

                    5.     Release.

                    (a)          Any Guarantor will be released and relieved of any obligations under its Note Guarantee, (i) in connection with any sale or other disposition of all of the Capital Stock of that Guarantor to a Person that is not (either before or after giving effect to such transaction) an Affiliate of the Company, if the sale of all such Capital Stock of that Guarantor complies with Section 4.10 of the Indenture; (ii) if the Company properly designates that Guarantor as an Unrestricted Subsidiary under the Indenture or (iii) upon the release or discharge of the Guarantee which resulted in the creation of such Note Guarantee, except a discharge or release by or as a result or payment under such Guarantee. Upon delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of
Counsel to the effect that one of the foregoing requirements has been satisfied and the conditions to the release of a Guarantor under this Section 5 have been satisfied, the Trustee shall execute any documents reasonably required in order to evidence the release of such Guarantor from its obligations under its Note Guarantee.

                    (b)          Any Guarantor not released from its obligations under its Note Guarantee shall remain liable for the full amount of principal of and interest and Liquidated Damages, if any, on the Notes and for the other obligations of any Guarantor under the Indenture as provided in Article Ten of the Indenture.

                    6.     No Recourse Against Others.  Pursuant to Section 12.07 of the Indenture, no director, officer, employee, incorporator or stockholder of the Guaranteeing Subsidiary shall have any liability for any obligations of such Guaranteeing Subsidiary under the Notes, the Indenture, the Note Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation.  

                    7.     NEW YORK LAW TO GOVERN.  THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

                    8.          Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

                    9.          Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

F-4

                    10.          Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and the Company.

F-5

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

Dated:  _______________, ____

	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
[Guaranteeing   Subsidiary]
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
   
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
Title:
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
TEXAS INDUSTRIE   S , INC.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
Title:
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
WELLS FARGO BANK,   NATIONAL ASSOCIATION,
 as Trustee
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
   
  	
   
  
	
   
  	
  By:
  	
   
  
	
   
  	
   
  	
  

  
	
   
  	
  Name:
  	
   
  
	
   
  	
  Title:
  	
   
  

F-6Exhibit 10.1

EXECUTION COPY

Texas Industries, Inc.

and the Guarantors

listed on Schedule A hereto

$250,000,000

7.25% Senior Notes due 2013

Purchase Agreement

dated June 29, 2005

UBS Securities LLC

Banc of America Securities LLC

Wells Fargo Securities, LLC

BB&T Capital Markets, a division of Scott & Stringfellow, Inc.

Purchase Agreement

June 29, 2005

UBS SECURITIES LLC
 BANC OF AMERICA SECURITIES LLC
 WELLS FARGO SECURITIES, LLC
 BB&T CAPITAL MARKETS, A DIVISION OF SCOTT & STRINGFELLOW, INC.

     As Initial Purchasers

c/o UBS SECURITIES LLC
 299 Park Avenue
 New York, New York  10171

Ladies and Gentlemen:

                    Texas Industries Inc., a Delaware corporation (the “Company”), proposes to issue and sell to the several Initial Purchasers named in Schedule B (the “Initial Purchasers”), acting severally and not jointly, the respective amounts set forth in such Schedule B of $250,000,000 aggregate principal amount of the Company’s 7.25%  Senior Notes due 2013 (the “Notes”).

                    The Notes will be issued pursuant to an indenture, to be dated as of July 6, 2005 (the “Indenture”), among the Company, the Guarantors (as defined below) and Wells Fargo Bank, National Association, as trustee (the “Trustee”).  Notes issued in book-entry form will be issued in the name of Cede & Co., as nominee of The Depository Trust Company (the “Depositary”) pursuant to a DTC Agreement, to be dated on or prior to the Closing Date (as defined in Section 2) (the “DTC Agreement”), among the Company and the Depositary.

                    The payment of principal of, premium and Liquidated Damages (as defined in the Indenture), if any, and interest on the Notes and the Exchange Notes (as defined below) will be fully and unconditionally guaranteed on a senior basis, jointly and severally by the Guarantors listed on Schedule A hereto (collectively, the “Guarantors”) pursuant to their guarantees (the “Guarantees”).  The Notes and the Guarantees attached thereto are herein collectively referred to as the “Securities” and the Exchange Notes and the Guarantees attached thereto are herein collectively referred to as the “Exchange Securities.”

                    The holders of the Notes will be entitled to the benefits of a registration rights agreement, to be dated as of July 6, 2005 (the “Registration Rights Agreement”), among the Company, the Guarantors and the Initial Purchasers, pursuant to which the Company and the Guarantors will agree to file, within 90 days of the Closing Date, a registration statement with the Securities and Exchange Commission (the “Commission”) registering under the Securities Act of 1933 (as amended, the “Securities Act,” which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder) debt securities of the Company and the Guarantors with terms substantially identical to the Notes (the “Exchange Notes”) and the Guarantees thereof to be offered in exchange for the Notes and the Guarantees thereof
(the “Exchange Offer”) and, to the extent required by the Registration Rights Agreement, a shelf registration statement relating to resales of the Notes.

                    The
Company understands that the Initial Purchasers propose to make an offering of
the Securities on the terms and in the manner set forth herein and in the
Offering Memorandum (as defined below) and agrees that the Initial Purchasers
may resell, subject to the conditions set forth herein, all or a portion of the
Securities to subsequent purchasers (the “Subsequent Purchasers”) at
any time after the date of this Agreement.  The Securities are to be
offered and sold to or through the Initial Purchasers without being registered
with the Commission under the Securities Act, in reliance upon
exemptions therefrom. 

1

The terms of the Securities and the Indenture will
require that investors that acquire Securities expressly agree that Securities
may only be resold or otherwise transferred, after the date hereof, if such
Securities are registered for sale under the Securities Act or if an exemption
from the registration requirements of the Securities Act is available (including
the exemptions afforded by Rule 144A (“Rule 144A”) or
Regulation S (“Regulation S”) thereunder).

                    The Company has prepared and delivered to each Initial Purchaser copies of a Preliminary Offering Memorandum, dated June 17, 2005 (the “Preliminary Offering Memorandum”), and has prepared and will deliver to each Initial Purchaser, copies of the Offering Memorandum, dated June 29, 2005, describing the terms of the Securities, each for use by such Initial Purchaser in connection with its solicitation of offers to purchase the Notes.  As used herein, the “Offering Memorandum” shall mean, with respect to any date or time referred to in this Agreement, the Company’s Offering Memorandum, dated June 29, 2005, including amendments or supplements thereto and any exhibits thereto, in the most recent form that has been prepared and delivered by the Company to the Initial Purchasers in connection with their solicitation of
offers to purchase Notes. 

                    On or prior to the Closing Date (as defined herein), the Company will transfer, assign or contribute all of its subsidiaries engaged in the steel business and certain other assets used in the steel business to Chaparral Steel Company, a Delaware corporation and wholly owned subsidiary of the Company (“Chaparral”), cancel certain intercompany payables between the Company and Chaparral and contribute to the capital of the Company all but $25 million of net intercompany indebtedness owed by Chaparral to the Company; Chaparral will assume the liabilities arising out of the steel business or the transferred assets (the “Contribution”).

                    In connection with the issuance of the Notes, the Company has offered to purchase for cash (the “Tender Offer”) any and all of its outstanding 101⁄4% Senior Notes due 2011 (the “Parent Notes”) and has solicited consents to proposed amendments (the “Amendment”) to the related indenture (the “Consent Solicitation”) pursuant to the terms of an Offer to Purchase and Consent Solicitation Statement dated June 13, 2005 and the related Consent and Letter of Transmittal (together, as amended, the “Tender Offer Documents”).

                    On or prior to the Closing Date (as defined herein), (i) the Company will enter into a $200 million credit agreement among the Company, Bank of America Securities N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the lenders party thereto (including all documents and agreements executed in connection therewith, the “New Credit Facility”), and (ii) Chaparral will enter into a $150 million credit agreement among the Company, Bank of America Securities N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the lender parties thereto (including all documents and agreements executed in connection therewith, the “New Chaparral Credit Facility”).  On the Closing Date, Chaparral will also issue $300 million aggregate principal amount of its 10% senior notes due 2013 (the “Chaparral Note
Offering”).

                    Following the Closing Date, the Board of Directors of the Company will declare a dividend whereby all of the outstanding shares of Chaparral common stock held by the Company will be distributed to the stockholders of the Company (the “Spin-Off Transaction”).

                    In connection with the Spin-Off Transaction, the issuance of the Notes and entering into the New Credit Facility, Chaparral will (i) declare and pay a cash dividend of approximately $341 million to the Company (the “Dividend Payment”) payable on or prior to the Closing Date, and (ii) declare and pay a stock dividend to the Company payable on or prior to the consummation of the Spin-Off Transaction (the “Stock Dividend”).

                    The Contribution, the issuance and sale of the Notes, the entering into the New Credit Facility and the New Chaparral Credit Facility, the Spin-Off Transaction, the Dividend Payment, the Stock Dividend, the Tender Offer and Consent Solicitation, and the Chaparral Note Offering are collectively referred to herein as the “Transactions.”

2

                    Each of the Company and the Guarantors hereby confirms its agreements with the Initial Purchasers as follows:

                    Section 1.     Representations and Warranties..  Each of the Company and the Guarantors hereby jointly and severally represents, warrants and covenants to each Initial Purchaser as follows:

                    (a)     No Registration Required.  Subject to compliance by the Initial Purchasers with the representations and warranties set forth in Section 2 hereof and with the procedures set forth in Section 7 hereof, it is not necessary in connection with the offer, sale and delivery of the Securities to the Initial Purchasers and to each Subsequent Purchaser in the manner contemplated by this Agreement and the Offering Memorandum to register the Securities under the Securities Act or, until such time as the Exchange Securities are issued pursuant to an effective registration statement, to qualify the Indenture under the Trust Indenture Act of 1939 (the “Trust Indenture Act,” which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder).

                    (b)     No Integration of Offerings or General Solicitation.  Neither the Company nor any Guarantor has, directly or indirectly, solicited any offer to buy or offered to sell, and will not, directly or indirectly, solicit any offer to buy or offer to sell, in the United States or to any United States citizen or resident, any security which is or would be integrated with the sale of the Securities in a manner that would require the Securities to be registered under the Securities Act.  None of the Company, the Guarantors, their respective affiliates (as such term is defined in Rule 501(b) under the Securities Act (each, an “Affiliate”)), or any person acting on its or any of their behalf (other than the Initial Purchasers, as to whom neither the Company nor the Guarantors makes any
representation or warranty) has engaged or will engage, in connection with the offering of the Securities, in any form of general solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act.  With respect to those Securities sold in reliance upon Regulation S, (i) none of the Company, the Guarantors, their respective Affiliates or any person acting on their behalf (other than the Initial Purchasers, as to whom neither the Company nor any Guarantor makes any representation or warranty) has engaged or will engage in any directed selling efforts within the meaning of Regulation S and (ii) each of the Company and the Guarantors and their respective Affiliates and any person acting on their behalf (other than the Initial Purchasers, as to whom neither the Company nor any Guarantor makes any representation or warranty) has complied and will comply with the offering restrictions set forth in Regulation S.

                    (c)     Eligibility for Resale under Rule 144A.  The Securities are eligible for resale pursuant to Rule 144A and will not be, at the Closing Date, of the same class as securities listed on a national securities exchange registered under Section 6 of the Securities Exchange Act of 1934 (as amended, the “Exchange Act,” which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder) or quoted in a U.S. automated interdealer quotation system.

                    (d)     The Offering Memorandum.  The Offering Memorandum does not, and at the Closing Date will not, include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that this representation, warranty and agreement shall not apply to statements in or omissions from the Offering Memorandum made in reliance upon and in conformity with information furnished to the Company in writing by any Initial Purchaser through UBS Securities LLC expressly for use in the Offering Memorandum.  Each of the Preliminary Offering Memorandum and the Offering Memorandum, as of its date, contains all the information specified in, and meeting the requirements of, Rule
144A.  Neither the Company nor any Guarantor has distributed or will distribute, prior to the later of the Closing Date and the completion of the Initial Purchasers’ distribution of the Securities, any offering material in connection with the offering and sale of the Securities other than the Preliminary Offering Memorandum or the Offering Memorandum.

                    (e)     The Purchase Agreement.  This Agreement has been duly authorized, executed and delivered by, and is a valid and binding agreement of, the Company and each Guarantor, enforceable in accordance with its terms, except as rights to indemnification hereunder may be limited by applicable law and except as the enforcement hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles.

                    (f)     The Registration Rights Agreement.  At the Closing Date, the Registration Rights Agreement will have been duly authorized, executed and delivered by, and will be a valid and binding agreement of, the Company and each of the Guarantors, enforceable against the Company and each Guarantor in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles and except as rights to indemnification thereunder may be limited by applicable law.

3

                     (g)     The DTC Agreement.  At the Closing Date, the DTC Agreement will have been duly authorized, executed and delivered by the Company, and, assuming the due authorization, execution and delivery thereof by the other parties thereto, will be a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. 

                    (h)     Authorization of the Securities and the Exchange Securities.  (i) The Notes to be purchased by the Initial Purchasers from the Company are in the form contemplated by the Indenture, have been duly authorized for issuance and sale pursuant to this Agreement and the Indenture, at the Closing Date will have been duly executed by the Company and, when authenticated in the manner provided for in the Indenture and delivered against payment of the purchase price therefor, will constitute valid and binding agreements of the Company, enforceable in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles and will be
entitled to the benefits of the Indenture.  (ii) The Exchange Notes have been duly and validly authorized for issuance by the Company and, when issued and authenticated in accordance with the terms of the Indenture, the Registration Rights Agreement and the Exchange Offer, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting enforcement of the rights and remedies of creditors or by general principles of equity and will be entitled to the benefits of the Indenture.  (iii) The Guarantees of the Notes and the Exchange Notes are in the respective forms contemplated by the Indenture, have been duly authorized for issuance and sale pursuant to this Agreement and the Indenture and, when duly executed by each of the Guarantors, when the Notes have been authenticated in the manner
provided for in the Indenture and delivered against payment of the purchase price therefor, and when the Exchange Notes have been issued and authenticated in accordance with the terms of the Indenture, the Registration Rights Agreement and the Exchange Offer, the Guarantees thereof, respectively, will constitute valid and binding agreements of the Guarantors, enforceable against the Guarantors in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles and will be entitled to the benefits of the Indenture.

                    (i)     Authorization of the Indenture.  The Indenture has been duly authorized by the Company and each of the Guarantors and, at the Closing Date, will have been duly executed and delivered by the Company and each of the Guarantors and will constitute a valid and binding agreement of the Company and each of the Guarantors, enforceable against the Company and each of the Guarantors in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles.

                    (j)     Authorization of the Transactions.  The Company shall consummate the Transactions in accordance with their applicable terms and shall take on a timely basis all material actions necessary or required in relation thereto.  The Company has taken all necessary corporate action to authorize the Transactions.  As of the date on which the Transactions are consummated, the Company will have all necessary corporate power and authority to perform all of its obligations contemplated under each of the documents governing any of the Transactions and will have executed any agreements in connection therewith.  The terms of the Amendment proposed in the Consent Solicitation, effected pursuant to a supplemental indenture (the “Supplemental Indenture”), have been approved by the requisite
number of holders of the Parent Notes and the Supplemental Indenture has become effective, and the Amendment will be operative and in full force and effect on the Closing Date.

                     (k)     Spin-Off Documents.  Each of the Tax Sharing and Indemnification Agreement, to be dated on or prior to the Closing Date, between the Company and Chaparral, and the Separation and Distribution Agreement, to be dated on or prior to the Closing Date, between the Company and Chaparral, (collectively, the “Spin-Off Documents”), has been duly authorized and, on or prior to the Closing Date, will be duly executed and delivered by the Company.  Each of the Spin-Off Documents conforms in all material respects to the description thereof contained in the Offering Memorandum. 

4

                    (l)     The Spin-Off Transaction, the Contribution and the Dividend Payment.  To the knowledge of the Company, the Spin-Off Transaction will qualify as a distribution under section 355 of the Internal Revenue Code of 1986, as amended (the “Code”), the Contribution will qualify as a reorganization under Section 368(a)(1)(D) of the Code, the Dividend Payment will qualify under Section 361(b)(3) of the Code and the Spin-Off Transaction, the Contribution and the Dividend Payment will not result in the imposition of any material amount of tax on the Company, its subsidiaries (including Chaparral) or stockholders of the Company.

                    (m)     Description of the Securities and the Indenture.  The Notes, the Exchange Notes, the Guarantees of the Notes and the Exchange Notes and the Indenture will conform in all material respects to the respective statements relating thereto contained in the Offering Memorandum.  The Exchange Notes and the Guarantees of the Exchange Securities will conform in all material respects to the respective statements relating thereto contained in the Offering Memorandum and the Registration Statement at the time such Registration Statement becomes effective.

                    (n)     No Material Adverse Change.  Except as otherwise disclosed in the Offering Memorandum, subsequent to the respective dates as of which information is given in the Offering Memorandum:  (i) there has been no material adverse change, or any development that could reasonably be expected to result in such a material adverse change, in the condition, financial or otherwise, or in the earnings, business, operations or prospects, whether or not arising from transactions in the ordinary course of business, of the Company and its subsidiaries, considered as one entity, or the Guarantors (any such change is called a “Material Adverse Change”); (ii) neither the Company and its subsidiaries, considered as one entity, nor the Guarantors, have incurred any material liability or obligation, indirect,
direct or contingent, not in the ordinary course of business nor entered into any material transaction or agreement not in the ordinary course of business; and (iii) except as disclosed in the Offering Memorandum and except for the Stock Dividend, there has been no dividend or distribution of any kind declared, paid or made by the Company or, except for dividends paid to the Company or other subsidiaries, any of its subsidiaries on any class of capital stock or repurchase or redemption by the Company or any of its subsidiaries of any class of capital stock.

                    (o)     Independent Accountants.  Ernst & Young LLP, who have expressed their opinion with respect to the financial statements (which term as used in this Agreement includes the related notes thereto) filed with the Commission and included in the Offering Memorandum is an independent registered public accounting firm within the meaning of Regulation S-X under the Securities Act and the Exchange Act.

                    (p)     Preparation of the Financial Statements.  The financial statements, together with the related notes, included in the Offering Memorandum present fairly the consolidated financial position of the Company and its subsidiaries as of and at the dates indicated and the results of their operations and cash flows for the periods specified.  Such financial statements have been prepared in conformity with generally accepted accounting principles, as applied in the United States, applied on a consistent basis throughout the periods involved, except as may be expressly stated in the related notes thereto.  The financial data set forth in the Offering Memorandum under the captions “Summary–Summary Unaudited Pro Forma Consolidated Financial and Other Data,” “Summary–Summary
Historical Consolidated Financial and Other Data,” “Unaudited Pro Forma Financial Information” and “Selected Consolidated Financial and Other Data” fairly present the information set forth therein on a basis consistent with that of the audited financial statements contained in the Offering Memorandum.

                    (q)     Incorporation
and Good Standing of the Company and its Subsidiaries.  Each of the
Company and its subsidiaries has been duly incorporated or organized, as
applicable, and is validly existing as a corporation, trust, limited liability
company, limited partnership or general partnership in good standing under the
laws of the jurisdiction of its incorporation or organization and has corporate,
trust, limited liability company, or partnership power and authority to own,
lease and operate its properties and to conduct its business as described in the
Offering Memorandum and, in the case of the Company and each of the Guarantors,
to enter into and perform its obligations, as applicable, under each of this
Agreement, the Registration Rights Agreement, the DTC Agreement, the Securities,
the Exchange Securities and the Indenture.  The Company and each subsidiary
is duly qualified as a foreign corporation, trust, limited liability company,
limited partnership, or general partnership, as applicable, to transact business and is in good standing
in each jurisdiction in which such qualification is required, whether by reason
of the ownership or leasing of property or the conduct of business, except for
such jurisdictions where the failure to so qualify or to be in good standing
would not, individually or in the aggregate, result in a Material Adverse
Change. 

5

The only jurisdictions in which the Company and its subsidiaries
are required to be so qualified are set forth in Schedule C hereto. 
All of the issued and outstanding capital stock or partnership or other
ownership interest of each subsidiary has been duly authorized and validly
issued, is fully paid and nonassessable and, except as disclosed in the Offering
Memorandum, is owned by the Company, directly or through subsidiaries, free and
clear of any security interest, mortgage, pledge, lien, encumbrance or
claim.  Upon consummation of the Spin-Off Transaction, the Company will not
own or control, directly or indirectly, any corporation, association or other
entity other than the subsidiaries listed in Schedule C
hereto.

                    (r)     Capitalization and Other Capital Stock Matters.  At February 28, 2005, on a consolidated basis, after giving pro forma effect to the Transactions, the Company would have an authorized and outstanding capitalization as set forth in the Offering Memorandum under the caption “Capitalization” (other than for subsequent issuances of capital stock, if any, pursuant to employee benefit plans described in the Offering Memorandum).  All of the outstanding shares of capital stock of the Company have been duly authorized and validly issued, are fully paid and nonassessable and have been issued in compliance with federal and state securities laws.  None of the outstanding shares of capital stock of the Company were issued in violation of any preemptive rights, rights of first refusal or other
similar rights to subscribe for or purchase securities of the Company.

                    (s)     Stock Exchange Listing.  The Common Stock of the Company is registered pursuant to Section 12(b) of the Exchange Act and is listed on the New York Stock Exchange (the “NYSE”), and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the NYSE, nor has the Company received any notification that the Commission or the NYSE is contemplating terminating such registration or listing.

                    (t)     Non-Contravention
of Existing Instruments; No Further Authorizations or Approvals
Required.  Neither the Company nor any of its subsidiaries is in
violation of its charter or by-laws, or, assuming receipt by the Company of
requisite consents pursuant to the Consent Solicitation and effectiveness of the
Amendment, would be in default (or, with the giving of notice or lapse of time
would be in default) (“Default”) under any indenture, mortgage, loan
or credit agreement, note, contract, franchise, lease or other instrument to
which the Company or any of its subsidiaries is a party or by which it or any of
them may be bound (including, without limitation, the Company’s New Credit
Facility, or to which any of the property or assets of the Company or any of its
subsidiaries is subject (each, an “Existing Instrument”), except for
such Defaults as would not, individually or in the aggregate, result in a
Material Adverse Change.  The Company’s and each Guarantors’
execution, delivery and performance of this Agreement, the Registration Rights
Agreement and the Indenture, the issuance and delivery of the Securities and the
Exchange Securities, the Company’s execution, delivery and performance of
the DTC Agreement, and consummation of the Transactions in accordance with their
terms (i) have been duly authorized by all necessary corporate, trust, limited
liability company or partnership action of the Company and the Guarantors
(except that the Spin-Off Transaction will be declared by the Board of Directors
of the Company immediately following the Closing Date) and will not result in
any violation of the provisions of the charter or by-laws, trust agreement,
operating agreement or partnership agreement of the Company or any subsidiary,
(ii) assuming receipt by the Company of requisite consents pursuant to the
Consent Solicitation and effectiveness of the Amendment, will not conflict with
or constitute a breach of, or constitute a Default or a Debt Repayment
Triggering Event (as defined below) under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the
Company or any of its subsidiaries pursuant to, or require the consent of any
other party to, any Existing Instrument, except for such conflicts, breaches,
Defaults, liens, charges or encumbrances as would not, individually or in the
aggregate, result in a Material Adverse Change and such consents as have been
obtained and are in full force and effect and (iii) will not result in any
violation of any law, administrative regulation or administrative or court
decree applicable to the Company or any subsidiary.  No consent, approval,
authorization or other order of, or registration or filing with, any court or
other governmental or regulatory authority or agency, is required for the
Company’s or any Guarantor’s, as applicable, execution, delivery and
performance of this Agreement, the Registration Rights Agreement, the DTC
Agreement or the Indenture, or the issuance and delivery of the Securities or
the Exchange Securities, or consummation of the Transactions, except such as
have been obtained or made by the Company or such Guarantors and are in full
force and effect and except such as may be required by federal and state
securities laws with respect to the filing and effectiveness of the applicable
registration statement under the Securities Act and qualification of the
Indenture under the Trust Indenture Act in connection with the Registration
Rights Agreement.  

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As used herein, a “Debt Repayment Triggering
Event” means any event or condition which gives, or with the giving of
notice or lapse of time would give, the holder of any note, debenture or other
evidence of indebtedness (or any person acting on such holder’s behalf) the
right to require the repurchase, redemption or repayment of all or a portion of
such indebtedness by the Company or any of its subsidiaries.  The Existing
Agreements listed in Schedule D hereto (the “Material Existing
Agreements”) are the only agreements that are material to the Company and
its subsidiaries taken as a whole.

                    (u)     No Material Actions or Proceedings.  Except as otherwise disclosed in the Offering Memorandum, there are no legal or governmental actions, suits or proceedings pending or, to the best of the Company’s and the Guarantors’ knowledge, threatened (i) against or affecting the Company or any of its subsidiaries, or (ii) which has as the subject thereof any property owned or leased by, the Company or any of its subsidiaries, where in any such case (A) there is a reasonable possibility that such action, suit or proceeding might be determined adversely to the Company or such subsidiary and (B) any such action, suit or proceeding, if so determined adversely, would reasonably be expected to result in a Material Adverse Change or adversely affect the consummation of the Transactions.  No material
labor dispute with the employees of the Company or any of its subsidiaries exists or, to the best of the Company’s and the Guarantors’ knowledge, is threatened or imminent.  

                    (v)     Intellectual Property Rights.  The Company and its subsidiaries own or possess sufficient trademarks, trade names, patent rights, copyrights, licenses, approvals, trade secrets and other similar rights (collectively, “Intellectual Property Rights”) reasonably necessary to conduct their businesses as now conducted; and the expected expiration of any of such Intellectual Property Rights would not reasonably be expected to result in a Material Adverse Change.  Neither the Company nor any of its subsidiaries has received any notice of infringement or conflict with asserted Intellectual Property Rights of others, which infringement or conflict, if the subject of an unfavorable decision, would reasonably be expected to result in a Material Adverse Change.

                    (w)     All Necessary Permits, etc.  The Company and each subsidiary possess such valid and current certificates, authorizations or permits issued by the appropriate local, state, federal or foreign regulatory agencies or bodies necessary to conduct their respective businesses, each such certificate, authorization and permit being in full force and effect, and the Company and each subsidiary is in compliance with the terms of each such certificate, authorization and permit, except where the failure to so possess or comply would not, individually or in the aggregate, result in a Material Adverse Change.  Except as disclosed in the Offering Memorandum, neither the Company nor any subsidiary has received any notice of proceedings relating to the revocation or modification of, or non-compliance with, any
such certificate, authorization or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a Material Adverse Change.

                    (x)     Title to Properties.  The Company and each of its subsidiaries has good and marketable title to all the properties and assets reflected as owned in the financial statements referred to in Section 1(p) above (or elsewhere in the Offering Memorandum), in each case free and clear of any security interests, mortgages, liens, encumbrances, equities, claims and other defects, except such as do not materially and adversely affect the value of such property and do not materially interfere with the use made or proposed to be made of such property by the Company or such subsidiary.  The real property, improvements, equipment and personal property held under lease by the Company or any subsidiary are held under valid and enforceable leases, with such exceptions as are not material and do not materially
interfere with the use made or proposed to be made of such real property, improvements, equipment or personal property by the Company or such subsidiary.

                    (y)     Tax Law Compliance.  The Company and its consolidated subsidiaries have filed all necessary material federal, state and foreign income and franchise tax returns and have paid all material taxes required to be paid by any of them and, if due and payable, any related or similar assessment, fine or penalty levied against any of them, except for such taxes that are contested in good faith by proper proceedings.  The Company has made adequate charges, accruals and reserves in the applicable financial statements referred to in Section 1(p) above in respect of all federal, state and foreign income and franchise taxes for all periods as to which the tax liability of the Company or any of its consolidated subsidiaries has not been finally determined.

                    (z)     Company Not an “Investment Company”.  The Company is not, and after giving effect to the Transactions, will not be, an “investment company” within the meaning of Investment Company Act of 1940, as amended (the “Investment Company Act”) and will conduct its business in a manner so that it will not become subject to the Investment Company Act.

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                    (aa)     Insurance.  Except as otherwise disclosed in the Offering Memorandum, each of the Company and its subsidiaries are insured by recognized, financially sound institutions with coverage in such amounts and with such deductibles and covering such risks as are generally deemed prudent and customary for their businesses including, but not limited to, policies covering real and personal property owned or leased by the Company and its subsidiaries against theft, damage, destruction, acts of vandalism and earthquakes.  The Company has no reason to believe that it or any subsidiary will not be able (i) to renew its existing insurance coverage as and when such policies expire or (ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now
conducted and at a cost that would not result in a Material Adverse Change.  Neither the Company nor any subsidiary has been denied any insurance coverage that it has sought or for which it has applied.

                    (bb)     No Price Stabilization or Manipulation.  Neither the Company nor any Guarantor has taken or will take, directly or indirectly, any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the consummation of the Transactions.

                    (cc)     Solvency.  Each of the Company and the Guarantors is, and immediately after the Closing Date will be, Solvent.  As used herein, the term “Solvent” means, with respect to the Company and each Guarantor on a particular date, that on such date (i) the fair market value of its assets is greater than the total amount of its liabilities (including contingent liabilities), (ii) the present fair salable value of its assets is greater than the amount that will be required to pay its probable liabilities on its debts as they become absolute and matured, (iii) it is then able to realize upon its assets and pay its debts and other liabilities, including contingent obligations, as they mature, (iv) it does not have unreasonably small capital to carry on its business as
conducted and as proposed to be conducted and (v) it does not intend to, and does not believe that it will, incur debts and liabilities beyond its ability to pay as such debts and liabilities mature.

                    (dd)     Company’s Accounting System.  The Company maintains a system of accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles, as applied in the United States, and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 

                    (ee)     Sarbanes-Oxley.  There is and has been no failure on the part of the Company and any of the Company’s directors or officers, in their capacities as such, to comply in any material respect with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”), including Section 402 related to loans and Sections 302 and 906 related to certifications.

                    (ff)     Compliance
with Environmental Laws.  Except as otherwise disclosed in the Offering
Memorandum or would not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Change (i) neither the Company nor any
of its subsidiaries is in violation of any federal, state, local or foreign law
or regulation relating to pollution or protection of human health or the
environment (including, without limitation, ambient air, surface water,
groundwater, land surface or subsurface strata) or wildlife, including without
limitation, laws and regulations relating to emissions, discharges, releases or
threatened releases of chemicals, pollutants, contaminants, wastes, toxic
substances, hazardous substances, petroleum and petroleum products
(collectively, “Materials of Environmental Concern”), or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Materials of Environmental Concern
(collectively, “Environmental Laws”), which violation includes, but is
not limited to, noncompliance with any permits or other governmental
authorizations required for the operation of the business of the Company or its
subsidiaries under applicable Environmental Laws, or noncompliance with the
terms and conditions thereof, nor has the Company or any of its subsidiaries
received any written communication, whether from a governmental authority,
citizens group, employee or otherwise, that alleges that the Company or any of
its subsidiaries is in violation of any Environmental Law;

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(ii) there is no claim, action or cause of action filed with a court or governmental authority of which the Company has been served, notified or otherwise made aware, no investigation with respect to which the Company or any of its subsidiaries has received written notice, and no written notice by any person or entity alleging potential liability for investigatory costs, cleanup costs, governmental responses costs, natural resources damages, property damages, personal injuries, attorneys’ fees or penalties arising out of, based on or resulting from the presence, or release into the environment, of any Material of Environmental Concern at any location owned, leased or operated by the Company or any of its subsidiaries, now or in the past (collectively, “Environmental Claims”), pending or, to the best of the Company’s or any Guarantor’s knowledge, threatened against the Company or any of its subsidiaries or any person or entity whose
liability for any Environmental Claim the Company or any of its subsidiaries has retained or assumed either contractually or by operation of law; and (iii) to the best of the Company’s and each Guarantor’s knowledge, there are no past or present actions, activities, circumstances, conditions, events or incidents, including, without limitation, the release, emission, discharge, presence or disposal of any Material of Environmental Concern, that reasonably could result in a violation of any Environmental Law or form the basis of an Environmental Claim against the Company or any of its subsidiaries or against any person or entity whose liability for any Environmental Claim the Company or any of its subsidiaries has retained or assumed either contractually or by operation of law.  

                    (gg)     Periodic Review of Costs of Environmental Compliance.  In the ordinary course of its business, the Company conducts a periodic review of the effect of Environmental Laws on the business, operations and properties of the Company and its subsidiaries, in the course of which it identifies and evaluates associated costs and liabilities (including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related constraints on operating activities and any potential liabilities to third parties).  On the basis of such review and the amount of its established reserves, the Company has reasonably concluded that such associated costs and liabilities would not, individually or in
the aggregate, reasonably be expected to result in a Material Adverse Change.

                    (hh)     ERISA Compliance.  The Company and its subsidiaries and any “employee benefit plan” (as defined under the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”)) established or maintained by the Company, its subsidiaries or their “ERISA Affiliates” (as defined below) are in compliance in all material respects with the applicable provisions of ERISA, or if not in material compliance would not result in a Material Adverse Change.  “ERISA Affiliate” means, with respect to the Company or a subsidiary, any member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the Code of which the Company or such subsidiary is a member.  No
“reportable event” (as defined under ERISA) for which notice requirements have not been waived has occurred or is reasonably expected to occur with respect to any “employee benefit plan” established or maintained by the Company, its subsidiaries or any of their ERISA Affiliates and which is covered by Title IV of ERISA, except for such reportable events which would not, individually or in the aggregate, result in a Material Adverse Change.  No “employee benefit plan” established or maintained by the Company, its subsidiaries or any of their ERISA Affiliates, if such “employee benefit plan” were terminated as of the most recent annual valuation date for such plan, would have an “amount of unfunded benefit liabilities” (as defined under ERISA) that would result in a Material Adverse Change.  None of the Company, its subsidiaries or any of their ERISA Affiliates has incurred or reasonably expects to incur any material liability under (i) Title
IV of ERISA with respect to termination of, or withdrawal from, any “employee benefit plan” or (ii) Sections 4971, 4975 or 4980B(a) of the Code.  Each “employee benefit plan” established or maintained by the Company, its subsidiaries or any of their ERISA Affiliates that is intended to be qualified under Section 401(a) of the Code is so qualified and nothing has occurred, whether by action or failure to act, which would cause the loss of such qualification. 

                    (ii)     New Credit Facility.  The New Credit Facility has been duly and validly authorized by each of the Company and the Guarantors and, when duly executed and delivered by each of the Company and the Guarantors, will be the valid and legally binding obligation of each, enforceable in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles.

                    (jj)     Compliance with Regulation S.  The Company, the Guarantors and their respective affiliates and all persons acting on their behalf (other than the Initial Purchasers, as to whom the Company and the Guarantors make no representation) have complied with and will comply with the offering restrictions requirements of Regulation S in connection with the offering of the Securities outside the United States and, in connection therewith, the Offering Memorandum will contain the disclosure required by Rule 902(g)(2) of the Securities Act.

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                    (kk)     Compliance with Securities Laws.  The Tender Offer Documents comply and (as amended or supplemented, if amended or supplemented) will comply in all material respects with all applicable requirements of the United States federal securities laws; and the documents incorporated or deemed incorporated by reference into the Tender Offer Documents complied, as of their respective dates in all material respects with all applicable requirements of United States securities laws; and the Tender Offer Documents (including the documents incorporated or deemed to be incorporated by reference into the Tender Offer Documents) do not and (as amended or supplemented, if amended or supplemented) will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading.

                    (ll)     Reporting Issuer.  The Company is a “reporting issuer,” as defined in Rule 902 under the Securities Act.

                    Any certificate signed by an officer of the Company or any Guarantor and delivered to the Initial Purchasers or to counsel for the Initial Purchasers on the Closing Date shall be deemed to be a representation and warranty by the Company or such Guarantor to each Initial Purchaser as to the matters set forth therein.

                    Section 2.     Purchase, Sale and Delivery of the Securities.

                    (a)     The Securities.  The Company and the Guarantors agree to issue and sell to the several Initial Purchasers, severally and not jointly, all of the Securities upon the terms herein set forth.  On the basis of the representations, warranties and agreements herein contained, and upon the terms but subject to the conditions herein set forth, the Initial Purchasers agree, severally and not jointly, to purchase from the Company the aggregate principal amount of Securities set forth opposite their names on Schedule B, at a purchase price of 98% of the principal amount thereof, payable on the Closing Date. 

                    (b)     The Closing Date.  Delivery of certificates for the Securities in definitive form to be purchased by the Initial Purchasers and payment therefor shall be made at the offices of Shearman & Sterling LLP, 599 Lexington Avenue, New York, New York 10022 (or such other place as may be agreed to by the Company and the Initial Purchasers) at 9:00 a.m., New York City time, on July 6, 2005, or such other time and date as UBS Securities LLC shall designate by notice to the Company (the time and date of such closing are called the “Closing Date”).  The Company hereby acknowledges that circumstances under which UBS Securities LLC may provide notice to postpone the Closing Date as originally scheduled include, but are in no way limited to, any determination by the Company or UBS Securities LLC to
recirculate to investors copies of an amended or supplemented Offering Memorandum or a delay as contemplated by the provisions of Section 16 hereof.

                    (c)     Delivery of the Securities.  The Company shall deliver, or cause to be delivered, to UBS Securities LLC for the accounts of the several Initial Purchasers certificates for the Securities at the Closing Date against the irrevocable release of a wire transfer of immediately available funds for the amount of the purchase price therefor.  The certificates for the Securities shall be in such denominations and registered in the name of Cede & Co., as nominee of the Depositary, pursuant to the DTC Agreement, and shall be made available for inspection on the business day preceding the Closing Date at a location in New York City, as the Initial Purchasers may designate.  Time shall be of the essence, and delivery at the time and place specified in this Agreement is a further condition to
the obligations of the Initial Purchasers.

                    (d)     Delivery of Offering Memorandum to the Initial Purchasers.  Not later than 12:00 p.m., New York City time, on the second business day following the date of this Agreement, the Company shall deliver or cause to be delivered copies of the Offering Memorandum in such quantities and at such places as the Initial Purchasers shall reasonably request.

                    (e)     Initial Purchasers as Qualified Institutional Buyers.  Each Initial Purchaser severally and not jointly represents and warrants to, and agrees with, the Company that it is a “qualified institutional buyer” within the meaning of Rule 144A (a “Qualified Institutional Buyer”) and an “accredited investor” within the meaning of Rule 501(a) under the Securities Act (an “Accredited Investor”).

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                    Section 3.     Additional Covenants..  Each of the Company and the Guarantors, jointly and severally, further covenants and agrees with each Initial Purchaser as follows:

                    (a)     Initial Purchasers’ Review of Proposed Amendments and Supplements.  Prior to amending or supplementing the Offering Memorandum, the Company shall furnish to the Initial Purchasers for review a copy of each such proposed amendment or supplement, and the Company shall not use any such proposed amendment or supplement to which the Initial Purchasers reasonably object.

                    (b)     Amendments and Supplements to the Offering Memorandum and Other Securities Act Matters.  If, prior to the completion of the placement of the Securities by the Initial Purchasers with the Subsequent Purchasers, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Offering Memorandum in order to make the statements therein, in the light of the circumstances when the Offering Memorandum is delivered to a purchaser not misleading, or if in the opinion of the Initial Purchasers or counsel for the Initial Purchasers it is otherwise necessary to amend or supplement the Offering Memorandum to comply with law, the Company agrees to promptly prepare (subject to Section 3(a) hereof), and furnish at its own expense to the Initial Purchasers, amendments or
supplements to the Offering Memorandum so that the statements in the Offering Memorandum as so amended or supplemented will not, in the light of the circumstances when the Offering Memorandum is delivered to a purchaser be misleading or so that the Offering Memorandum, as amended or supplemented, will comply with applicable law.

                    Following the consummation of the Exchange Offer or the effectiveness of an applicable shelf registration statement and for so long as the Securities are outstanding if, in the reasonable judgment of the Initial Purchasers, the Initial Purchasers or any of their affiliates (as such term is defined in the rules and regulations under the Securities Act) are required to deliver a prospectus in connection with sales of, or market-making activities with respect to, such securities, each of the Company and the Guarantors agree (A) to periodically amend the applicable registration statement so that the information contained therein complies with the requirements of Section 10(a) of the Securities Act, (B) to amend the applicable registration statement or supplement the related prospectus or the documents incorporated therein when necessary to
reflect any material changes in the information provided therein so that the registration statement and the prospectus will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances existing as of the date the prospectus is so delivered, not misleading and  to provide the Initial Purchasers with copies of each amendment or supplement filed and (C) to provide the Initial Purchasers with such other documents as the Initial Purchasers may reasonably request.

                    The Company and the Guarantors hereby expressly acknowledge that the indemnification and contribution provisions of Sections 8 and 9 hereof are specifically applicable and relate to each offering memorandum, registration statement, prospectus, amendment or supplement referred to in this Section 3(b).

                    (c)     Copies of the Offering Memorandum.  The Company agrees to furnish the Initial Purchasers, without charge, as many copies of the Offering Memorandum and any amendments and supplements thereto as they shall have reasonably requested; provided that such requests are made prior to the original printing of the Offering Memorandum, or any amendment or supplement thereto.

                    (d)     Blue Sky Compliance.  The Company and the Guarantors shall cooperate with the Initial Purchasers and counsel for the Initial Purchasers to qualify or register the Securities for sale under (or obtain exemptions from the application of) the Blue Sky or state securities laws of those jurisdictions designated by the Initial Purchasers, shall comply with such laws and shall continue such qualifications, registrations and exemptions in effect so long as required for the distribution of the Securities.  The Company and the Guarantors shall not be required to qualify as a foreign corporation or to take any action that would subject it to general service of process in any such jurisdiction where it is not presently qualified or where it would be subject to taxation as a foreign corporation.  The
Company and the Guarantors will advise the Initial Purchasers promptly of the suspension of the qualification or registration of (or any such exemption relating to) the Securities for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification, registration or exemption, the Company and the Guarantors shall use their reasonable best efforts to obtain the withdrawal thereof as soon as possible.

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                    (e)     Use of Proceeds.  The Company shall apply the net proceeds from the sale of the Securities sold by it and borrowings (including letters of credit) under the New Credit Facility in the manner described under the caption “Use of Proceeds” in the Offering Memorandum.  

                    (f)     The Depositary.  The Company will cooperate with the Initial Purchasers and use its best efforts to permit the Securities to be eligible for clearance and settlement through the facilities of the Depositary.

                    (g)     Additional Issuer Information.  Prior to the completion of the placement of the Securities by the Initial Purchasers with the Subsequent Purchasers, the Company shall file, on a timely basis, with the Commission and the NYSE all reports and documents required to be filed under Section 13 or 15(d) of the Exchange Act.  Additionally, at any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act, for the benefit of holders and beneficial owners from time to time of Securities, the Company shall furnish, at its expense, upon request, to holders and beneficial owners of Securities and prospective purchasers of Securities information (“Additional Issuer Information”) satisfying the requirements of subsection (d)(4) of Rule 144A.

                    (h)     Agreement Not To Offer or Sell Additional Securities.  During the period of 180 days following the date of the Offering Memorandum, the Company will not, without the prior written consent of UBS Securities LLC (which consent may be withheld at the sole discretion of UBS Securities LLC), directly or indirectly, issue, sell, offer to sell, contract or grant any option to sell, pledge, transfer or establish an open “put equivalent position” within the meaning of Rule 16a-1 under the Exchange Act, or otherwise dispose of or transfer, or announce the offering of, or file any registration statement under the Securities Act in respect of, any debt securities of the Company or securities exchangeable for or convertible into debt securities of the Company (other than as contemplated by this
Agreement and to register the Exchange Securities).

                    (i)     Future Reports to the Initial Purchasers.  For so long as any Securities or Exchange Securities remain outstanding, the Company, upon request, will furnish to UBS Securities LLC (i) as soon as reasonably practicable after the end of each fiscal year, copies of the Annual Report of the Company containing the balance sheet of the Company as of the close of such fiscal year and statements of income, stockholders’ equity and cash flows for the year then ended and the opinion thereon of the Company’s independent registered public accounting firm; (ii) as soon as reasonably practicable after the filing thereof, copies of each proxy statement, Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other report filed by the Company with the Commission, the NYSE or
any securities exchange; and (iii) as soon as available, copies of any report or communication of the Company mailed generally to holders of its capital stock or debt securities (including the holders of the Securities).

                    (j)     No Integration.  The Company agrees that it will not and will cause its Affiliates not to make any offer or sale of securities of the Company of any class if, as a result of the doctrine of “integration” referred to in Rule 502 under the Securities Act, such offer or sale would render invalid (for the purpose of (i) the sale of the Securities by the Company to the Initial Purchasers, (ii) the resale of the Securities by the Initial Purchasers to Subsequent Purchasers or (iii) the resale of the Securities by such Subsequent Purchasers to others) the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof or by Rule 144A or by Regulation S thereunder or otherwise.

                    (k)     Legended Securities.  Each certificate for a Security will bear the legend contained in “Notice to Investors” in the Offering Memorandum for the time period and upon the other terms stated in the Offering Memorandum.

                    (l)     PORTAL.  The Company will use its reasonable best efforts to cause the Securities to be eligible for the National Association of Securities Dealers, Inc. PORTAL market (the “PORTAL market”).

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                    (m)     Rating of Securities.  The Company shall take all reasonable action necessary to enable Standard & Poor’s Ratings Services, a division of McGraw Hill, Inc. (“S&P”), and Moody’s Investor Services, Inc. (“Moody’s”) to provide their respective credit ratings to the Securities at or prior to the time of their initial issuance.   

                    UBS Securities LLC, on behalf of the several Initial Purchasers, may, in its sole discretion, waive in writing the performance by the Company or any Guarantor of any one or more of the foregoing covenants or extend the time for their performance.

                    Section 4.     Payment of Expenses..  Each of the Company and the Guarantors jointly and severally agrees to pay all costs, fees and expenses incurred in connection with the performance of its obligations hereunder and in connection with the Transactions (except as otherwise agreed in writing between the Company and any Initial Purchaser), including without limitation (i) all expenses incident to the issuance and delivery of the Securities (including all printing and engraving costs), (ii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the Securities to the Initial Purchasers, (iii) all fees and expenses of the Company’s and the Guarantors’ counsel, independent registered public accounting firm and other advisors, (iv) all costs and expenses incurred
in connection with the preparation, printing, filing, shipping and distribution of each Preliminary Offering Memorandum and the Offering Memorandum (including financial statements and exhibits), and all amendments and supplements thereto, this Agreement, the Registration Rights Agreement, the Indenture, the DTC Agreement and the Securities, (v) all filing fees, attorneys’ fees and expenses incurred by the Company, the Guarantors or the Initial Purchasers in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Securities for offer and sale under the Blue Sky laws and, if requested by the Initial Purchasers, preparing and printing a “Blue Sky Survey” or memorandum, and any supplements thereto, advising the Initial Purchasers of such qualifications, registrations and exemptions, (vi) the fees and expenses of the Trustee, including the reasonable fees and disbursements of counsel for the Trustee in connection
with the Indenture, the Securities and the Exchange Securities, (vii) any fees payable in connection with the rating of the Securities or the Exchange Securities with the ratings agencies and the listing of the Securities with the PORTAL market, (viii) any filing fees incident to, and any reasonable fees and disbursements of counsel to the Initial Purchasers in connection with the review by the National Association of Securities Dealers, Inc., if any, of the terms of the sale of the Securities or the Exchange Securities, (ix) all fees and expenses (including reasonable fees and expenses of counsel) of the Company and the Guarantors in connection with approval of the Securities by DTC for “book-entry” transfer, and (x) the performance by the Company and the Guarantors of their respective other obligations under this Agreement.  Except as provided in this Section 4, Section 6, Section 8, Section 9, and Section 10 hereof (or as otherwise agreed in writing between the Company and any
Initial Purchaser), the Initial Purchasers shall pay their own expenses, including the fees and disbursements of their counsel.

                    Section 5.          Conditions of the Obligations of the Initial Purchasers..  The obligations of the several Initial Purchasers to purchase and pay for the Securities as provided herein on the Closing Date shall be subject to the accuracy of the representations and warranties on the part of the Company and the Guarantors set forth in Section 1 hereof as of the date hereof and as of the Closing Date as though then made and to the timely performance by the Company and each Guarantor of its covenants and other obligations hereunder, and to each of the following additional conditions:

                    (a)     Accountants’ Comfort Letter.  On the date hereof, the Initial Purchasers shall have received from Ernst & Young LLP, an independent registered public accounting firm for the Company, a letter dated the date hereof addressed to the Initial Purchasers, in form and substance satisfactory to the Initial Purchasers, containing statements and information of the type ordinarily included in accountant’s “comfort letters” to Initial Purchasers, delivered according to Statement of Auditing Standards Nos. 72 and 76 (or any successor bulletins), with respect to the audited and unaudited financial statements and certain financial information contained in the  Offering Memorandum.

                    (b)     No Material Adverse Change or Ratings Agency Change.  For the period from and after the date of this Agreement and prior to the Closing Date:

	
  
 
  	
  
                              (i)          in   the judgment of the Initial Purchasers there shall not have occurred any   Material Adverse Change; and
  
	
   
  	
  
 
  
	
  
 
  	
  
                              (ii)          there   shall not have occurred any downgrading, nor shall any notice have been given   of any intended or potential downgrading or of any review for a possible   change that does not indicate the direction of the possible change, in the   rating accorded any securities of the Company or any of its subsidiaries by   any “nationally recognized statistical rating organization” as such term is   defined for purposes of Rule 436(g)(2) under the Securities Act.
  

13

                    (c)     Opinion of Outside Counsel for the Company and the Guarantors.  On the Closing Date the Initial Purchasers shall have received (i) the favorable opinion of Thompson & Knight LLP, counsel for the Company and the Guarantors, dated as of such Closing Date, the form of which is attached as Exhibit A, and (ii) the favorable opinion of Richards, Layton & Finger, P.A., special Delaware counsel for the Company, dated as of such Closing Date, in Form and substance satisfactory to the Initial Purchasers, to the effect that the approval of the stockholders of the Company is not required under Section 271 of the General Corporate Law of Delaware in order for the Company to effect the Spin-Off Transaction.

                    (d)     Opinion of General Counsel for the Company.  On the Closing Date the Initial Purchasers shall have received the favorable opinion of Frederick G. Anderson, General Counsel for the Company, dated as of such Closing Date, the form of which is attached as Exhibit B.

                    (e)     Opinion of Counsel for the Initial Purchasers.  On the Closing Date the Initial Purchasers shall have received the favorable opinion of Shearman & Sterling LLP, counsel for the Initial Purchasers, dated as of such Closing Date, with respect to such matters as may be reasonably requested by the Initial Purchasers.

                    (f)     Spin-Off Transaction Opinion of Counsel for the Company.  Prior to or at the Closing Date, the Company shall have received the favorable opinion of Thompson & Knight LLP, counsel for the Company, in form and substance satisfactory to the Initial Purchasers, to the effect that the Spin-Off Transaction will qualify as a distribution under Section 355 of the Code, the Contribution will qualify as a reorganization under Section 368(a)(1)(D) of the Code and the Dividend Payment will qualify under Section 361(b)(3) of the Code, and the Spin-Off Transaction, the Contribution and the Dividend Payment will not result in the imposition of any material amount of tax on the Company, the stockholders of the Company or Chaparral Steel Company.

                    (g)     Officers’ Certificate.  On the Closing Date the Initial Purchasers shall have received a written certificate executed by the Chairman of the Board, Chief Executive Officer, President or Vice President and Treasurer of the Company and the Chairman of the Board, Chief Executive Officer, President or Vice President of each of the Guarantors and the Chief Financial Officer or Chief Accounting Officer of the Company and the Chief Financial Officer or chief accounting officer of each of the Guarantors, dated as of the Closing Date, to the effect set forth in subsection (b)(ii) of this Section 5, and further to the effect that:

	
   
  	
  
                              (i)          for
the period from and after the date of this Agreement and prior to the Closing
Date there has not occurred, to the best of their knowledge, any Material
Adverse Change;
 
	
  
 
  	
  
 
  
	
  
 
  	
  
                              (ii)         the   representations, warranties and covenants of the Company or such Guarantor   set forth in Section 1 of this Agreement are true and correct with the   same force and effect as though expressly made on and as of the Closing Date;   and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
                              (iii)        the   Company or such Guarantor has complied with all the agreements and satisfied   all the conditions on their respective parts to be performed or satisfied at   or prior to the Closing Date.
  

14

                    (h)     Bring-down Comfort Letter.  On the Closing Date the Initial Purchasers shall have received from Ernst & Young LLP, an independent registered public accounting firm for the Company, a letter dated such date, in form and substance satisfactory to the Initial Purchasers, to the effect that they reaffirm the statements made in the letter furnished by them pursuant to subsection (a) of this Section 5, except that the specified date referred to therein for the carrying out of procedures shall be no more than three business days prior to the Closing Date.

                    (i)     PORTAL Listing.  At the Closing Date the Securities shall have been designated for trading on the PORTAL market.

                    (j)     Registration Rights Agreement.  The Company and the Guarantors shall have entered into the Registration Rights Agreement and the Initial Purchasers shall have received executed counterparts thereof.

                    (k)     New Credit Facility.  The Company and the Guarantors shall have entered into the New Credit Facility and the lenders thereunder shall have received executed counterparts thereof and all conditions precedent to an initial borrowing by the Company thereunder and to the issuance of letters of credit thereunder shall have been met or be met concurrently with the closing of the offering of the Notes and the payment of the purchase price therefor.

                    (l)     Tender Offer and Consent Solicitation.  (a) The Tender Offer and Consent Solicitation shall not have been terminated by the Company, (b) the requisite consents of the holders of the Parent Notes necessary to approve the terms of the amendments proposed in the Consent Solicitation, to be effected pursuant to the Supplemental Indenture, shall have been obtained, (c) concurrently with the closing of the offering of the Notes, the Company will make the Initial Payment (as defined in the Tender Offer Documents) pursuant to the Tender Offer and Consent Solicitation, (d) upon payment of the Initial Payment by the Company, the Supplemental Indenture shall be in full force and effect, and (e) Chaparral has been designated as an unrestricted subsidiary under the indenture governing the Parent Notes.

                    (m)     New Chaparral Credit Facility and Chaparral Note Offering.  Chaparral shall (a) have entered into the New Credit Facility and the lenders thereunder shall have received executed counterparts thereof and all conditions precedent to an initial borrowing by Chaparral thereunder and to the issuance of letters of credit thereunder shall have been met or be met concurrently with the closing of the offering of the Notes and the payment of the purchase price therefor; and (b) shall have completed the Chaparral Note Offering concurrently with the closing of the offering of the Notes and the payment of the purchase price therefor.

                    (n)     The Transactions.  The Company shall have directed the Initial Purchasers in writing to pay the net proceeds from the sale of the Securities, together with borrowings under the New Credit Facility, to make the payments required pursuant to the Transactions. 

                    (o)     Additional Documents.  On or before the Closing Date, the Initial Purchasers and counsel for the Initial Purchasers shall have received such other information, documents and opinions as they may reasonably require for the purposes of enabling them to pass upon the issuance and sale of the Securities as contemplated herein, or in order to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained.

                    If any condition specified in this Section 5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Initial Purchasers by notice to the Company at any time on or prior to the Closing Date, which termination shall be without liability on the part of any party to any other party, except that Section 4, Section 6, Section 8 and Section 9 shall at all times be effective and shall survive such termination.

                    Section
6.     Reimbursement of Initial Purchasers’
Expenses..  If this Agreement is terminated by the Initial Purchasers
pursuant to Section 5, or if the sale to the Initial Purchasers of the
Securities on the Closing Date is not consummated because of any refusal,
inability or failure on the part of the Company or any Guarantor to perform any
agreement herein or to comply with any provision hereof (other than as a result
of a breach of this Agreement by the Initial Purchasers), each of the Company
and the Guarantors jointly and severally agrees to reimburse the Initial
Purchasers (or such Initial Purchasers as have terminated this Agreement with
respect to themselves for any of the foregoing reasons), severally, upon demand
for all out-of-pocket expenses that shall have been reasonably incurred  by
the Initial Purchasers in connection with the proposed purchase and the offering
and sale of the Securities, including but not limited to reasonable fees and
disbursements of counsel, printing expenses, travel expenses, postage, facsimile
and telephone charges.  The obligations of the Company and the Guarantors
under this Section 6 and the provisions of Section 8 and Section 9 shall at all
times be effective and shall survive any termination of this
Agreement.

15

                    Section 7.     Offer, Sale and Resale Procedures..  Each of the Initial Purchasers, on the one hand, and the Company and the Guarantors, on the other hand, hereby establish and agree to observe the following procedures in connection with the offer and sale of the Securities:

                    (a)     Offers and Sales to Qualified Institutional Buyers.  Offers and sales of the Securities will be made only by the Initial Purchasers or Affiliates thereof qualified to do so in the jurisdictions in which such offers or sales are made.  Each such offer or sale shall only be made (i) to persons whom the offeror or seller reasonably believes to be qualified institutional buyers (as defined in Rule 144A under the Securities Act), or (ii) to non-U.S. persons outside the United States to whom the offeror or seller reasonably believes offers and sales of the Securities may be made in reliance upon Regulation S under the Securities Act, upon the terms and conditions set forth in Annex I hereto, which Annex I is hereby expressly made a part hereof. 

                    (b)     No General Solicitation.  The Securities will be offered by approaching prospective Subsequent Purchasers on an individual basis.  No general solicitation or general advertising (within the meaning of Rule 502 under the Securities Act) will be used in the United States in connection with the offering of the Securities.

                    (c)     Restrictions on Transfer.  Upon original issuance by the Company and the Guarantors, and until such time as the same is no longer required under the applicable requirements of the Securities Act, the Securities (and all securities issued in exchange therefor or in substitution thereof, other than the Exchange Securities) shall bear the following legend:

	
  
 
  	
  
“THE SECURITY (OR ITS PREDECESSOR)
EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF THE SECURITY EVIDENCED
HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A THEREUNDER.  THE HOLDER OF THE SECURITY EVIDENCED HEREBY
AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY BE OFFERED,
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (i)(a) TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A (b) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144 UNDER THE SECURITIES ACT, (c) OUTSIDE THE UNITED STATES TO A
FOREIGN PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR 904
OF REGULATION S UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL
“ACCREDITED INVESTOR” (AS DEFINED IN RULE 501 (a) (1), (2), (3) OR (7)
OF THE SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”)) THAT,
PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE
TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF
NOTES LESS THAN $100,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER THAT
SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF
COUNSEL IF THE ISSUER SO REQUESTS), (ii) TO THE ISSUER, OR (iii) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
APPLICABLE JURISDICTION; AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF
THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.”

	
  
 
  

16

                    Following the sale of the Securities by the Initial Purchasers to Subsequent Purchasers pursuant to the terms hereof, the Initial Purchasers shall not be liable or responsible to the Company and the Guarantors for any losses, damages or liabilities suffered or incurred by the Company or the Guarantors, including any losses, damages or liabilities under the Securities Act, arising from or relating to any resale or transfer of any Security by a Subsequent Purchaser or a subsequent transferee.

                    Section 8.     Indemnification.

                    (a)     Indemnification
of the Initial Purchasers.  Each of the Company and the Guarantors,
jointly and severally, agrees to indemnify and hold harmless each Initial
Purchaser, its directors, officers, employees and agents, and each person, if
any, who controls any Initial Purchaser within the meaning of the Securities Act
and the Exchange Act and the directors, officers, employees and agents of any
such controlling person from and against any loss, claim, damage, liability or
expense, as incurred, to which such Initial Purchaser or such controlling person
may become subject, under the Securities Act, the Exchange Act or other federal
or state statutory law or regulation, or at common law or otherwise (including
in settlement of any litigation, if such settlement is effected with the written
consent of the Company and/or any Guarantor sought to be bound), insofar as such
loss, claim, damage, liability or expense (or actions in respect thereof as
contemplated below) arises out of or is based (i) upon any untrue statement or
alleged untrue statement of a material fact contained in the Preliminary
Offering Memorandum or the Offering Memorandum (or any amendment or supplement
thereto), or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; or (ii) upon any
act or failure to act or any alleged act or failure to act by any Initial
Purchaser in connection with, or relating in any manner to, the offering
contemplated hereby, and which is included as part of or referred to in any
loss, claim, damage, liability or action arising out of or based upon any matter
covered by clause (i) above, provided that the Company and the
Guarantors shall not be liable under this clause (ii) to the extent that a
court of competent jurisdiction shall have determined by a final judgment that
such loss, claim, damage, liability or action resulted directly from any such
acts or failures to act undertaken or omitted to be taken by such Initial
Purchaser through its gross negligence or willful misconduct; and to reimburse
each Initial Purchaser and each such controlling person for any and all expenses
(including the reasonable fees and disbursements of counsel chosen by UBS
Securities LLC) as such expenses are reasonably incurred by such Initial
Purchaser or such controlling person in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage,
liability, expense or action; provided, however, that the foregoing
indemnity agreement shall not apply to any loss, claim, damage, liability or
expense to the extent, but only to the extent, arising out of or based upon any
untrue statement or alleged untrue statement or omission or alleged omission
relating to such Initial Purchaser made in reliance upon and in conformity with
written information furnished to the Company by such Initial Purchaser expressly
for use in any Preliminary Offering Memorandum or the Offering Memorandum (or
any amendment or supplement thereto).  The indemnity agreement set forth in
this Section 8(a) shall be in addition to any liabilities that the Company
or the Guarantors may otherwise have.  

17

                    (b)     Indemnification
of the Company, its Directors and Officers.  Each Initial Purchaser
agrees, severally and not jointly, to indemnify and hold harmless the Company,
the Guarantors, and each of their directors and each person, if any, who
controls the Company or the Guarantors within the meaning of the Securities Act
or the Exchange Act, against any loss, claim, damage, liability or expense, as
incurred, to which the Company, the Guarantors or any such director, or
controlling person may become subject, under the Securities Act, the Exchange
Act, or other federal or state statutory law or regulation, or at common law or
otherwise (including in settlement of any litigation, if such settlement is
effected with the written consent of such Initial Purchaser), insofar as such
loss, claim, damage, liability or expense (or actions in respect thereof as
contemplated below) arises out of or is based upon any untrue or alleged untrue
statement of a material fact contained in any Preliminary Offering Memorandum or
the Offering Memorandum (or any amendment or supplement thereto), or arises out
of or is based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission
relating to such Initial Purchaser was made in any Preliminary Offering
Memorandum or the Offering Memorandum (or any amendment or supplement thereto),
in reliance upon and in conformity with written information furnished to the
Company by such Initial Purchaser expressly for use therein; and to reimburse
the Company, the Guarantors or any such director or controlling person for any
legal and other expenses reasonably incurred by the Company, the Guarantors or
any such director or controlling person in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage,
liability, expense or action.  The Company and the Guarantors hereby
acknowledge that the only information that the Initial Purchasers have furnished
to the Company expressly for use in any Preliminary Offering Memorandum or the
Offering Memorandum (or any amendment or supplement thereto) are the statements
set forth (A) as the twelfth paragraph on the inside front cover page of the
Offering Memorandum concerning stabilization by the Initial Purchasers and (B)
in the ninth paragraph under the caption “Plan of Distribution” in the
Offering Memorandum; and the Initial Purchasers severally confirm that such
statements are correct.  

                    (c)     Notifications and Other Indemnification Procedures.  Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof, but the omission so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party under this Section 8, under Section 9 hereof or otherwise, to the extent it is not materially prejudiced as a proximate result of such failure.  In case any such action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party,
the indemnifying party will be entitled to participate in and, to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that a conflict may arise between the positions of the indemnifying party and the indemnified party in conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party or parties.  Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying party’s election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 8 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel (together with local counsel), approved by the indemnifying party (UBS Securities LLC in the case of Section 8(b) and Section 9), representing the indemnified parties who are parties to such action), (ii) the indemnifying party
shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying party or (iii) the employment of such counsel by the indemnified parties shall have been authorized in writing by the indemnifying parties in connection with the defense of such action.

                    (d)     Settlements.  The indemnifying party under this Section 8 shall not be liable for any settlement of any proceeding effected without its written consent (which consent may not be unreasonably withheld), but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 8(c) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the
aforesaid request and (ii) such indemnifying party shall not have
reimbursed the indemnified party in accordance with such request prior to the
date of such settlement. 

18

No indemnifying party shall, without the prior
written consent of the indemnified party, effect any settlement, compromise or
consent to the entry of judgment in any pending or threatened action, suit or
proceeding in respect of which any indemnified party is or could have been a
party and indemnity was or could have been sought hereunder by such indemnified
party, unless such settlement, compromise or consent (i) includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such action, suit or proceeding and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party.

                    Section 9.     Contribution.

                    If the indemnification provided for in Section 8 is for any reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, from the offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, in connection with the statements or omissions or inaccuracies in the representations and warranties herein which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.  The relative benefits received by the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, in connection with the offering of the Securities pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Securities pursuant to this Agreement (before deducting expenses) received by the Company and the Guarantors, and the total discount received by the Initial Purchasers bear to the aggregate initial offering price of the Securities.  The relative
fault of the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact or any such inaccurate or alleged inaccurate representation or warranty relates to information supplied by the Company and the Guarantors, on the one hand, or the Initial Purchasers, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

                    The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 8, any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim.  The provisions set forth in Section 8 with respect to notice of commencement of any action shall apply if a claim for contribution is to be made under this Section 9; provided, however, that no additional notice shall be required with respect to any action for which notice has been given under Section 8 for purposes of indemnification.

                    The Company, the Guarantors and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 9.

                    Notwithstanding the provisions of this Section 9, no Initial Purchaser shall be required to contribute any amount in excess of the discount received by such Initial Purchaser in connection with the Securities distributed by it.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  The Initial Purchasers’ obligations to contribute pursuant to this Section 9 are several, and not joint, in proportion to their respective commitments as set forth opposite their names in Schedule B.  For purposes of this Section 9, each director, officer, employee and agent of an Initial Purchaser and each person, if any, who controls an Initial Purchaser
within the meaning of the Securities Act and the Exchange Act and the directors, officers, employees and agents of any such controlling person shall have the same rights to contribution as such Initial Purchaser, and each director of the Company or any Guarantor, and each person, if any, who controls the Company or any Guarantor within the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as the Company or any Guarantor.

19

                    Section 10.     Termination of this Agreement..  Prior to the Closing Date, this Agreement may be terminated by the Initial Purchasers by notice given to the Company if at any time after the date of this Agreement (i) trading or quotation in any of the Company’s securities shall have been suspended or limited by the Commission or by the NYSE, or trading in securities generally on either the Nasdaq Stock Market or the NYSE shall have been suspended or limited, or minimum or maximum prices shall have been generally established on any of such stock exchanges by the Commission or the NASD; (ii) a general banking moratorium shall have been declared by any of federal, New York, Delaware, Texas or California authorities; (iii) there shall have occurred any outbreak or escalation of national or international
hostilities or any crisis or calamity, or any change in the United States or international financial markets, or any substantial change or development involving a prospective substantial change in United States’ or international political, financial or economic conditions, as in the judgment of the Initial Purchasers is material and adverse and makes it impracticable to market the Securities in the manner and on the terms described in the Offering Memorandum or to enforce contracts for the sale of securities; (iv) in the judgment of the Initial Purchasers there shall have occurred any Material Adverse Change; or (v) the Company or any of its subsidiaries shall have sustained a loss by strike, fire, flood, earthquake, accident or other calamity of such character as in the judgment of the Initial Purchasers may interfere materially with the conduct of the business and operations of the Company and its subsidiaries regardless of whether or not such loss shall have been insured.  Any termination
pursuant to this Section 10 shall be without liability on the part of (a) the Company or any Guarantor to any Initial Purchaser, except that the Company and the Guarantors shall be obligated to reimburse the expenses of the Initial Purchasers pursuant to Sections 4 and 6 hereof, (b) any Initial Purchaser to the Company or any Guarantor, or (c) any party hereto to any other party except that the provisions of Section 8 and Section 9 shall at all times be effective and shall survive such termination.

                    Section 11.     Representations and Indemnities to Survive Delivery.  The respective indemnities, agreements, representations, warranties and other statements of the Company, the Guarantors, of their respective officers and of the several Initial Purchasers set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of any Initial Purchaser or the Company or any Guarantor or any of its or their partners, officers or directors or any controlling person, as the case may be, and will survive delivery of and payment for the Securities sold hereunder and any termination of this Agreement.

                    Section 12.     Notices.  All communications hereunder shall be in writing and shall be mailed, hand delivered or facsimiled and confirmed to the parties hereto as follows:

	
  
If to the   Initial Purchasers:
  
	
  
 
  
	
  
          UBS   Securities LLC
  
	
  
          677   Washington Blvd.
  
	
  
          Stamford,   CT 06901
  
	
  
          Facsimile:  (203) 719-1075
  
	
            Attention:  High Yield Syndicate Department
  
	
  
 
  
	
  
with a copy   for information purposes only to:
  
	
  
 
  
	
  
          UBS   Securities LLC
  
	
  
          677   Washington Blvd.
  
	
  
          Stamford,   CT 06901
  
	
  
          Facsimile:   (203) 719-0680
  
	
  
          Attention:  Legal and Compliance Department
  
	
  
 
  
	
  
with a copy   to:
  
	
  
 
  
	
  
          Shearman   & Sterling LLP
  
	
  
          599   Lexington Avenue
  
	
  
          New   York, New York 10022
  
	
            Facsimile:  (646) 848-7293 
  
	
  
          Attention:  Andrew R. Schleider
  

20

	
  
If to the   Company and the Guarantors:
  
	
  
 
  
	
  
          Texas   Industries, Inc.
  
	
  
          1341   West Mockingbird Lane
  
	
  
          Dallas,   Texas 75247
  
	
  
          Attention:   General Counsel
  
	
  
 
  
	
  
with a copy   to:
  
	
  
 
  
	
  
          Thompson   & Knight LLP
  
	
  
          1700   Pacific Avenue
  
	
            Suite   3300
  
	
  
          Dallas,   Texas 75201
  
	
  
          Facsimile:   (214) 969-1751
  
	
  
          Attention:  Joe Dannenmaier
  

Any party hereto may change the address for receipt of communications by giving written notice to the others.

                    Section 13.     Successors.  This Agreement will inure to the benefit of and be binding upon the parties hereto, including any substitute Initial Purchasers pursuant to Section 16 hereof, and to the benefit of the employees, officers, directors and agents and controlling persons and their respective employees, officers, directors, and agents referred to in Section 8 and Section 9, and in each case their respective successors, and no other person will have any right or obligation hereunder.  The term “successors” shall not include any purchaser of the Securities as such from any of the Initial Purchasers merely by reason of such purchase.

                    Section 14.     Partial Unenforceability.  The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof.  If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

                    Section 15.     Governing Law; Consent to Jurisdiction.

                    (a)     Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                    (b)     Consent to Jurisdiction.  Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) may be instituted in the United States District Court for the Southern District of New York or the courts of the State of New York in each case located in the City and County of New York (collectively, the “Specified Courts”), and each party irrevocably submits to the non-exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court (a “Related Judgment”), as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding.  Service of any process, summons, notice or document by mail to such party’s
address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court.  The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum.  

21

                    Section
16.     Default of One or More of the Several
Initial Purchasers..  If any one or more of the several Initial
Purchasers shall fail or refuse to purchase Securities that it or they have
agreed to purchase hereunder on the Closing Date, and the aggregate number of
Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to
purchase does not exceed 10% of the aggregate number of the Securities to be
purchased on such date, the other Initial Purchasers shall be obligated,
severally, in the proportions that the number of Securities set forth opposite
their respective names on Schedule B bears to the aggregate number
of Securities set forth opposite the names of all such non-defaulting Initial
Purchasers, or in such other proportions as may be specified by the Initial
Purchasers with the consent of the non-defaulting Initial Purchasers, to
purchase the Securities which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase on such date. If any one or
more of the Initial Purchasers shall fail or refuse to purchase Securities and
the aggregate number of Securities with respect to which such default occurs
exceeds 10% of the aggregate number of Securities to be purchased on the Closing
Date, and arrangements satisfactory to the Initial Purchasers and the Company
for the purchase of such Securities are not made within 48 hours after such
default, this Agreement shall terminate without liability of any party to any
other party except that the provisions of Section 4, Section 6,
Section 8 and Section 9 shall at all times be effective and shall
survive such termination.  In any such case either the Initial Purchasers
or the Company shall have the right to postpone the Closing Date, as the case
may be, but in no event for longer than seven days in order that the required
changes, if any, to the Offering Memorandum or any other documents or
arrangements may be effected.

                    As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person substituted for a defaulting Initial Purchaser under this Section 16.  Any action taken under this Section 16 shall not relieve any defaulting Initial Purchaser from liability in respect of any default of such Initial Purchaser under this Agreement.

                    Section 17.     General Provisions.  This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof.  This Agreement may be executed in two or more counterparts, each one of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Agreement may not be amended or modified unless in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit.  The Table of Contents and the section headings herein are for the convenience of the parties only and
shall not affect the construction or interpretation of this Agreement.  Each of the Company and the Guarantors acknowledges and agrees that in connection with the purchase and sale of the Notes contemplated by this Agreement, the Company and the Guarantors and each Initial Purchaser and any affiliate through which it may be acting (each, a “Transaction Affiliate”) have an arm’s length business relationship that creates no fiduciary duty on the part of each Initial Purchaser or any Transaction Affiliate and each expressly disclaims any fiduciary relationship.

22

                    If the foregoing is in accordance with your understanding of our agreement, kindly sign and return to the Company the enclosed copies hereof, whereupon this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms.

	
  
 
  	
  
Very truly   yours,
  
	
  
 
  	
  
 
  	
  
 
  
	
   

  	
  
TEXAS INDUSTRIES, INC.

  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ RICHARD M. FOWLER
  
	
   
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
Richard M.   Fowler
  
	
  
 
  	
  
Title:
  	
  
Executive   Vice President – Finance and Chief Financial Officer
  

	
  
 
  	
  
BROOKHOLLOW CORPORATION
  
	
  
 
  	
  
BROOK HOLLOW PROPERTIES,   INC.
  
	
  
 
  	
  
BROOKHOLLOW OF   ALEXANDRIA, INC.
  
	
   
  	
  
BROOKHOLLOW OF   VIRGINIA, INC.
  
	
  
 
  	
  
SOUTHWESTERN FINANCIAL   CORPORATION
  
	
  
 
  	
  
CREOLE CORPORATION
  
	
  
 
  	
  
PACIFIC CUSTOM MATERIALS,   INC.
  
	
  
 
  	
  
RIVERSIDE CEMENT   COMPANY
  
	
  
 
  	
  
PARTIN LIMESTONE PRODUCTS,   INC.
  
	
  
 
  	
  
RIVERSIDE CEMENT   HOLDINGS COMPANY
  
	
   
  	
  
TXI AVIATION, INC.
  
	
  
 
  	
  
TXI CALIFORNIA INC.
  
	
  
 
  	
  
TXI CEMENT COMPANY
  
	
  
 
  	
  
TXI POWER COMPANY
  
	
  
 
  	
  
TXI RIVERSIDE INC.
  
	
  
 
  	
  
TXI TRANSPORTATION COMPANY
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ RICHARD M. FOWLER
  
	
   
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Authorized   Officer
  

	
  
 
  	
  
TEXAS INDUSTRIES HOLDINGS,   LLC
  
	
  
 
  	
  
TEXAS INDUSTRIES TRUST
  
	
  
 
  	
  
TXI LLC
  
	
  
 
  	
  
TXI OPERATING TRUST
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ RICHARD M. FOWLER
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Authorized   Officer
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
TXI OPERATIONS, LP
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
TXI   OPERATING TRUST, its general partner
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ RICHARD M. FOWLER
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Authorized   Officer
  

                    The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial Purchasers as of the date first above written.

UBS SECURITIES LLC
 BANC OF AMERICA SECURITIES LLC
 BB&T CAPITAL MARKETS, A DIVISION OF SCOTT & STRINGFELLOW, INC.
 WELLS FARGO SECURITIES, LLC

	
  
By:
  	
  
UBS SECURITIES LLC
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
By: 
  	
  
/s/ IAN WOODS
  	
  
 
  
	
  
 
  	
  

  	
  
 
  
	
  
Name:
  	
  
Ian Woods
  	
  
 
  
	
  
Title:
  	
  
Director
  	
  
 
  
	
   
  	
  
 
  	
  
 
  
	
  
By: 
  	
  
/s/ JERROD FREUNDE
  	
  
 
  
	
  
 
  	
  

  	
  
 
  
	
  
Name:
  	
  
Jerrod   Freunde
  	
  
 
  
	
  
Title:
  	
  
Associate   Director
  	
  
 
  

SCHEDULE A

GUARANTORS

Brookhollow Corporation
 Brook Hollow Properties, Inc.
 Brookhollow of Alexandria, Inc.
 Brookhollow of Virginia, Inc.
 Southwestern Financial Corporation
 Creole Corporation
 Pacific Custom Materials, Inc.
 Riverside Cement Company
 Partin Limestone Products, Inc.
 Riverside Cement Holdings Company
 Texas Industries Holdings, LLC
 Texas Industries Trust
 TXI Aviation, Inc.
 TXI California Inc.
 TXI Cement Company
 TXI LLC
 TXI Operating Trust
 TXI Operations, LP
 TXI Power Company
 TXI Riverside Inc.
 TXI Transportation Company

A-1

SCHEDULE B

	
  
Initial   Purchasers
  	
   
 	
  
Aggregate   Principal
   Amount of
   Securities to be
   Purchased
  	
   
 
	
  

  	
   
 	
  

  	
   
 
	
  
UBS SECURITIES LLC
  	
  
 
  	
  
$
  	
  
146,250,000
  	
  
 
  
	
  
BANC OF AMERICA SECURITIES   LLC
  	
  
 
  	
  
 
  	
  
78,750,000
  	
  
 
  
	
  WELLS FARGO SECURITIES, LLC
  	
  
 
  	
  
 
  	
  
12,500,000
  	
  
 
  
	
  
BB&T CAPITAL MARKETS, 
   A DIVISION OF SCOTT & STRINGFELLOW, INC.
  	
  
 
  	
  
 
  	
  
12,500,000
  	
  
 
  
	
   
 	
  
 
  	
  

  	
  

  	
  
 
  
	
  
Total
  	
  
 
  	
  
$
  	
  
250,000,000
  	
  
 
  
	
   
  	
  
 
  	
  

  	
  

  	
  
 
  

B-1

SCHEDULE C

TEXAS INDUSTRIES, INC.

SUBSIDIARIES

	
   
 	
   
 	
  
Authorized   to
   Do business in:
  	
   
 	
   
 	
  
State of
   Incorporation
   or Organization:
  
	
  
 
  	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  Texas   Industries, Inc. (“TXI”)
  	
  
 
  	
  
AR, CO, DE, LA, OK, TX, VA
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  
Brookhollow Corporation
  	
  
 
  	
  
DE, TX
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  
Brook Hollow Properties, Inc.
  	
  
 
  	
  
TX, PA
  	
  
 
  	
  
 
  	
  
Texas
  
	
  
Brookhollow of Alexandria, Inc.
  	
  
 
  	
  
LA
  	
  
 
  	
  
 
  	
  
Louisiana
  
	
  Brookhollow of Virginia, Inc.
  	
  
 
  	
  
VA
  	
  
 
  	
  
 
  	
  
Virginia
  
	
  
Southwestern Financial Corporation
  	
  
 
  	
  
TX
  	
  
 
  	
  
 
  	
  
Texas
  
	
  
Creole Corporation
  	
  
 
  	
  
DE, CA
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  
Pacific Custom Materials, Inc.
  	
  
 
  	
  
CA
  	
  
 
  	
  
 
  	
  
California
  
	
  Riverside Cement Company
  	
  
 
  	
  
CA
  	
  
 
  	
  
 
  	
  
California
  
	
  
Partin Limestone Products, Inc.
  	
  
 
  	
  
CA
  	
  
 
  	
  
 
  	
  
California
  
	
  
Riverside Cement Holdings Company
  	
  
 
  	
  
CA, DE
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  
Texas Industries Holdings, LLC
  	
  
 
  	
  
DE
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  Texas Industries Trust
  	
  
 
  	
  
DE
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  
TXI Aviation, Inc.
  	
  
 
  	
  
TX
  	
  
 
  	
  
 
  	
  
Texas
  
	
  
TXI California Inc.
  	
  
 
  	
  
DE, CA
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  
TXI Capital Trust I
  	
  
 
  	
  
DE
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  TXI Cement Company
  	
  
 
  	
  
DE, TX
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  
TXI LLC
  	
  
 
  	
  
DE, AR
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  
TXI Operating Trust
  	
  
 
  	
  
DE
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  
TXI Operations, LP
  	
  
 
  	
  
DE, TX, AR, LA, OK, CO, MS
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  TXI Power Company
  	
  
 
  	
  
TX
  	
  
 
  	
  
 
  	
  
Texas
  
	
  
TXI Riverside Inc.
  	
  
 
  	
  
DE, CA
  	
  
 
  	
  
 
  	
  
Delaware
  
	
  
TXI Transportation Company
  	
  
 
  	
  
TX, LA, VA
  	
  
 
  	
  
 
  	
  
Texas
  

C-1

SCHEDULE D

MATERIAL EXISTING AGREEMENTS

	
  1.
  	
  
Tax Sharing   and Indemnification Agreement between Chaparral Steel Company and Texas   Industries, Inc.;
  
	
  
 
  	
  
 
  
	
  
2.
  	
  
Separation   and Distribution Agreement between Chaparral Steel Company and Texas   Industries, Inc.;
  
	
  
 
  	
  
 
  
	
  
3.
  	
  
New Credit   Facility;
  
	
  
 
  	
  
 
  
	
  
4.
  	
  
Indenture;
  
	
  
 
  	
  
 
  
	
  
5.
  	
  
Indenture   dated as of June 6, 2003 among Texas Industries, Inc., the Initial Guarantors   (as defined therein) and Wells Fargo Bank, National Association, as Trustee,   as amended or supplemented;
  
	
   
  	
  
 
  
	
  
6.
  	
  
Credit   Agreement, dated as of June 6, 2003, among Texas Industries, Inc., TXI   Operations, LP, Riverside Cement Company, Chaparral Steel Midlothian, LP,   Chaparral (Virginia) Inc., Bank of America, N.A. (in its capacity as   administrative agent for the Lenders), and Banc of America Securities LLC, Wells   Fargo Foothill LLC and JPMorgan Chase Bank (Banc of America Securities LLC,   Wells Fargo Foothill LLC and JPMorgan Chase Bank, collectively, the   “Lenders”);
  
	
  
 
  	
  
 
  
	
  
7.
  	
  
First   Amendment to Credit Agreement dated as of July 29, 2003, among Texas   Industries, Inc., TXI Operations LP, Riverside Cement Company, Chaparral   Steel Midlothian, LP, Chaparral (Virginia) Inc., Bank of America, N.A. (in   its capacity as administrative agent for the Lenders), and the Lenders;
  
	
  
 
  	
  
 
  
	
  
8.
  	
  
Second   Amendment to Credit Agreement, dated as of November 24, 2003, among Texas   Industries, Inc., TXI Operations, LP, Riverside Cement Company, Chaparral   Steel Midlothian, LP, Chaparral (Virginia) Inc., Bank of America, N.A. (in   its capacity as administrative agent for the Lenders), and the Lenders;
  
	
  
 
  	
  
 
  
	
  9.
  	
  
Third   Amendment to Credit Agreement, dated as of May 27, 2004, among Texas   Industries, Inc., TXI Operations, LP, Riverside Cement Company, Chaparral   Steel Midlothian, LP, Chaparral (Virginia) Inc., Bank of America, N.A. (in   its capacity as administrative agent for the Lenders), and the Lenders;
  
	
  
 
  	
  
 
  
	
  
10.
  	
  
Fourth   Amendment to Credit Agreement, dated as of August 4, 2004, among Texas   Industries, Inc., TXI Operations, LP, Riverside Cement Company, Chaparral   Steel Midlothian, LP, Chaparral (Virginia) Inc., Bank of America, N.A. (in   its capacity as administrative agent for the Lenders), and the Lenders;
  
	
  
 
  	
  
 
  
	
  
11.
  	
  
Amended and   Restated Trust Agreement dated as of June 5, 1998 among Texas Industries,   Inc., The First National Bank of Chicago, as Property Trustee, First Chicago   Delaware, Inc., Kenneth R. Allen, Larry L. Clark and James R. McCraw;
  
	
  
 
  	
  
 
  
	
  
12.
  	
  
Guarantee   Agreement dated as of June 5, 1998 by Texas Industries, Inc. and The First   National Bank of Chicago;
  
	
   
  	
  
 
  
	
  
13.
  	
  
Rights   Agreement dated as of November 1, 1996, between Texas Industries, Inc. and   ChaseMellon Shareholder Services, L.L.C.;
  
	
  
 
  	
  
 
  
	
  
14.
  	
  
Convertible   Subordinated Debenture Indenture, dated as of June 5, 1998, between Texas   Industries, Inc. and First Chicago Delaware Inc.; and
  
	
  
 
  	
  
 
  
	
  
15.
  	
  
Registration   Rights Agreement, dated June 6, 2003, by and among Texas Industries, Inc.,   the guarantors named therein and the initial purchasers named therein.
  

D-1

EXHIBIT A

The opinion of Outside Counsel for the Company and the Guarantors to be delivered pursuant to Section 5(c) of the Purchase Agreement shall be to the effect that:

	
  1.
  	
  
The Company   has been duly incorporated and is validly existing as a corporation in good   standing under the laws of the State of Delaware.
  
	
  
 
  	
  
 
  
	
  
2.
  	
  
The Company   has corporate power and authority to own, lease and operate its properties   and to conduct its business as described in the Offering Memorandum and to   enter into and perform its obligations under the Purchase Agreement, the   Registration Rights Agreement, DTC Agreement, the Notes, the Exchange Notes   and the Indenture.
  
	
  
 
  	
  
 
  
	
  
3.
  	
  
The Company   is duly qualified as a foreign corporation to transact business and is in   good standing in each other jurisdiction in which such qualification is   required, whether by reason of the ownership or leasing of property or the   conduct of business, except for such jurisdictions where the failure to so   qualify or be in good standing would not, individually or in the aggregate,   result in a Material Adverse Change.
  
	
  
 
  	
  
 
  
	
  
4.
  	
  
The Purchase   Agreement has been duly authorized, executed and delivered by the Company and   each Guarantor.
  
	
   
  	
  
 
  
	
  
5.
  	
  
Each of the   Registration Rights Agreement and the DTC Agreement has been duly authorized,   executed and delivered by, and is a valid and binding agreement of, the   Company and, in the case of the Registration Rights Agreement, each   Guarantor, enforceable against the Company and, in the case of the   Registration Rights Agreement, each Guarantor, in accordance with its terms.
  
	
  
 
  	
  
 
  
	
  
6.
  	
  
The   Indenture has been duly authorized, executed and delivered by the Company and   each of the Guarantors and constitutes a valid and binding agreement of the   Company and each of the Guarantors, enforceable against the Company and each   of the Guarantors in accordance with its terms.
  
	
  
 
  	
  
 
  
	
  
7.
  	
  
The Notes   are in the form contemplated by the Indenture, have been duly authorized by   the Company for issuance and sale pursuant to the Purchase Agreement and the   Indenture and, when executed by the Company and authenticated by the Trustee   in the manner provided in the Indenture and delivered against payment of the   purchase price therefor, will constitute valid and binding obligations of the   Company, enforceable against the Company in accordance with their terms.
  
	
   
  	
  
 
  
	
  
8.
  	
  
The Exchange   Notes have been duly and validly authorized for issuance by the Company and   when issued and authenticated in accordance with the terms of the Indenture,   the Registration Rights Agreement and the Exchange Offer, will constitute   valid and binding obligations of the Company, enforceable against the Company   in accordance with their terms.
  
	
  
 
  	
  
 
  
	
  
9.
  	
  
The   Guarantees of the Notes and the Exchange Notes are in the respective forms   contemplated by the Indenture, have been duly authorized for issuance and   sale pursuant to the Purchase Agreement and the Indenture and, with respect   to the Notes, have been duly executed by each of the Guarantors and, when the   Notes have been authenticated in the manner provided for in the Indenture and   delivered against payment of the purchase price therefor, and when the Exchange   Notes have been issued and authenticated in accordance with the terms of the   Indenture, the Registration Rights Agreement and the Exchange Offer, the   Guarantees thereof will constitute valid and binding agreements of the   Guarantors, enforceable against the Guarantors in accordance with their   terms.
  
	
  
 
  	
  
 
  
	
  
10.
  	
  
The Notes,   the Exchange Notes, the Guarantees of the Notes and the Exchange Notes and   the Indenture conform in all material respects to the descriptions thereof   contained in the Offering Memorandum.
  

Ex. A-1

	
  
11.
  	
  
The   statements in the Offering Memorandum under the captions “Description of   Certain Debt and Preferred Securities,” “Certain Relationships and Related   Transactions,” “Description of Notes,” “Certain United States Federal Income   Tax Consequences” and “Notice to Investors” and insofar as such statements   constitute matters of law, summaries of legal matters, documents or legal   proceedings, or legal conclusions, have been reviewed by us and fairly   summarize, in all material respects, the matters referred to therein.
  
	
  
 
  	
  
 
  
	
  
12.
  	
  
No consent,   approval, authorization or other order of, or registration or filing with,   any court or other governmental or regulatory authority or agency, is   required for the Company’s or any Guarantors’ execution, delivery and   performance of the Purchase Agreement, the Registration Rights Agreement, the   DTC Agreement, the Indenture or the issuance and delivery of the Securities   or the Exchange Securities, or consummation of the Transactions, except such   as have been obtained or made by the Company or such Guarantors and are in   full force and effect and except such as may be required by state securities   laws and with respect to the filing and effectiveness of the applicable   registration statement under the Securities Act in connection with the   Registration Rights Agreement and qualification of the Indenture under the   Trust Indenture Act.
  
	
   
  	
  
 
  
	
  
13.
  	
  
The   Company’s and each Guarantors’ execution and delivery of the Purchase   Agreement, the Registration Rights Agreement, the Indenture, the Company’s   execution, delivery and performance of the DTC Agreement, the issuance and   delivery of the Notes and the Exchange Notes and the consummation of the   Transactions (i) with respect to the Company, have been duly authorized by   all necessary corporate action (except that the Spin-Off Transaction will be   declared by the Board of Directors of the Company immediately following the   Closing Date) and will not result in any violation of the provisions of the   charter or by-laws of the Company or the charter or by-laws, trust agreement,   operating agreement, or partnership agreement of any domestic subsidiary;   (ii) assuming the receipt by Texas Industries of requisite consents pursuant   to the Consent Solicitation and effectiveness of the Amendment, will not   constitute a breach of, or Default
or a Debt Repayment Triggering Event   under, or result in the creation or imposition of any lien, charge or   encumbrance upon any property or assets of the Company or any of its domestic   subsidiaries pursuant to, or require the consent of any other party under,   the agreements listed on Exhibit A hereto (each, a “Material Existing   Instrument”), other than such consents as have already been obtained and are   in full force and effect; and (iii) to the best of our knowledge, will not   result in any violation of any law, administrative regulation or   administrative or court decree applicable to the Company or any domestic   subsidiary.
  
	
  
 
  	
  
 
  
	
  
14.
  	
  
The Company   is not, and after giving effect to the Transactions will not be, an “investment   company” within the meaning of the Investment Company Act.
  
	
   
  	
  
 
  
	
  
15.
  	
  
To our   knowledge, no Material Existing Instrument, or the performance thereof,   creates a default under any other Material Existing Instrument, except in   each such case for such defaults as would not, individually or in the   aggregate, result in a Material Adverse Change.
  
	
  
 
  	
  
 
  
	
  
16.
  	
  
Assuming the   accuracy of the representations, warranties and covenants of the Company,   Guarantors and the Initial Purchasers contained in the Purchase Agreement, no   registration of the Notes under the Securities Act, and no qualification of   the Indenture under the Trust Indenture Act with respect thereto, is required   in connection with the purchase of the Notes by the Initial Purchasers or the   initial resale of the Notes by the Initial Purchasers in the manner   contemplated by the Purchase Agreement and the Offering Memorandum other than   any registration or qualification that may be required in connection with the   Exchange Offer contemplated by the Offering Memorandum and the Registration   Rights Agreement.  We, with your   consent, express no opinion, however, as to when or under what circumstances   any Notes initially sold by the Initial Purchasers may be reoffered or resold.
  

                    In
addition, we have participated in conferences with officers and other
representatives of the Company, representatives of the independent registered
public accounting firm for the Company and with representatives of the Initial
Purchasers at which the contents of the Offering Memorandum, and any supplements
or amendments thereto, and related matters were discussed and, although we have
not independently verified and are not passing upon and do not assume any
responsibility for the accuracy, completeness or fairness of the statements
contained in the Offering Memorandum (other than as specified in paragraph 11
hereof), and any supplements or amendments thereto, on the basis of the
foregoing, nothing has come to our attention which would lead us to believe that
the Offering Memorandum, either as of its date or at the Closing Date, contained
or contains an untrue statement of a material fact or omitted or omits to state
a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading (it being
understood that we express no belief as to the financial statements and related
notes thereto or other financial, statistical or accounting data derived
therefrom, included in the Offering Memorandum or any amendments or supplements
thereto).

Ex. A-2

EXHIBIT B

The form of opinion of General Counsel for the Company to be delivered pursuant to Section 5(d) of the Purchase Agreement shall be to the effect that:

          1.     Each Guarantor has been duly incorporated or organized and is validly existing as a corporation, trust, limited liability company or partnership in good standing under the laws of the jurisdiction of its incorporation or organization, and has corporate, trust, limited liability company or partnership power and authority to own, lease and operate its properties and to conduct its business as described in the Offering Memorandum and, to the best of my knowledge, is duly qualified as a foreign corporation, trust, limited liability company or partnership to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except for such jurisdictions where the failure to so qualify or to be in good standing would not, individually or in the aggregate,
result in a Material Adverse Change.

          2.     All of the issued and outstanding capital stock or partnership or other ownership interest of each Guarantor has been duly authorized and validly issued, and is fully paid and non-assessable and is owned by the Company, directly or through subsidiaries, free and clear of any security interest, mortgage, pledge lien or encumbrance, or to the best of my knowledge, any pending or threatened claim, other than the pledge of such capital stock or partnership or other ownership interest pursuant to the Credit Agreement.

          3.     To the best of my knowledge, all of the outstanding shares of capital stock of the Company have been duly authorized and validly issued, are fully paid and nonassessable and have been issued in compliance with federal and state securities laws.  

          4.     The statements in the Offering Memorandum under the captions “Risk Factors—Risks Related to the Notes—Federal and state statutes allow courts, under specific circumstances, to void the notes or the guarantees and require note holders to return payments received from the issuer or the subsidiary guarantors,” “Risk Factors—Risks Relating to our Company—We may incur substantial expenditures to comply with environmental laws which may adversely affect our results of operation and financial condition,” “Risk Factors—Risks Related to our Industry—Our business could suffer if antidumping duties on imports are reduced or eliminated or foreign competitors not subject to such duties increase imports,”  “Business—Legal Proceedings,” “Business—Environmental,” “Business—Intellectual
Property” and “Management,” insofar as such statements constitute matters of law, summaries of legal matters, the Company’s charter or by-law provisions, documents or legal proceedings, or legal conclusions, have been reviewed by me and fairly present and summarize, in all material respects, the matters referred to therein.

          5.     No consent, approval, authorization or other order of, or registration or filing with, any court or other governmental or regulatory authority or agency, is required for the Company’s or any Guarantors’ execution, delivery and performance of the Purchase Agreement, the Registration Rights Agreement, the DTC Agreement or the Indenture, the issuance and delivery of the Securities or the Exchange Securities, or consummation of the Transactions, except such as have been obtained or made by the Company or such Guarantors and are in full force and effect under the Securities Act and except such as may be required by state securities laws, with respect to the filing and effectiveness of the applicable registration statement under the Securities Act and except such as may be required by state securities laws, with respect to the Registration Rights Agreement, the filing
and effectiveness of the applicable registration statement under the Securities Act.

          6.     The
Company’s and each Guarantor’s execution and delivery of the Purchase
Agreement, the Registration Rights Agreement and the Indenture, the
Company’s execution, delivery and performance of the DTC Agreement, the
issuance and delivery of the Securities and the Exchange Securities, and the
consummation of the Transactions (i) have been duly authorized by all necessary
corporate, trust, limited liability company or partnership action of the Company
and the Guarantors (except that the Spin-Off Transaction will be declared by the
Board of Directors of the Company immediately following the Closing Date) and
will not result in any violation of the provisions of the charter or by-laws,
trust agreement, operating agreement or partnership agreement of the Company or
any subsidiary; (ii) assuming the receipt by Texas Industries of requisite
consents pursuant to the Consent Solicitation and effectiveness of the
Amendment, will not constitute a breach of, or Default or a Debt Repayment
Triggering Event under, or result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of the Company or any of its
domestic subsidiaries pursuant to, or require the consent of any other party to,
the agreements listed on Exhibit A hereto (each, a “Material
Existing Instrument”); and (iii) to the best of my knowledge, after
reasonable investigation, will not result in any violation of any law,
administrative regulation or administrative or court decree applicable to the
Company or any subsidiary.

Ex. B-1

          7.     To the best of my knowledge, after reasonable investigation, neither the Company nor any subsidiary is in violation of its charter or by-laws or any law, administrative regulation or administrative or court decree applicable to the Company or any subsidiary or is in Default in the performance or observance of any obligation, agreement, covenant or condition contained in any Material Existing Instrument, except in each such case for such violations or Defaults as would not, individually or in the aggregate, result in a Material Adverse Change.

          8.     Except as otherwise disclosed in the Offering Memorandum, there are no legal or governmental actions, suits or proceedings pending or, to the best of my knowledge, threatened (i) against or affecting the Company or any of its subsidiaries, or (ii) which has as the subject thereof any property owned or leased by, the Company or any of its subsidiaries, where in any such case (A) there is a reasonable possibility that such action, suit or proceeding might be determined adversely to the Company or such subsidiary and (B) any such action, suit or proceeding, if so determined adversely, would reasonably be expected to result in a Material Adverse Change or adversely affect the consummation of the Transactions. 

          9.     Neither the Company nor any of its subsidiaries has received any notice of infringement or conflict with asserted Intellectual Property Rights of others, which infringement or conflict, if the subject of an unfavorable decision, would reasonably be expected to result in a Material Adverse Change. 

          10.     The Company and each subsidiary possess such valid and current certificates, authorizations or permits issued by the appropriate local, state, federal or foreign regulatory agencies or bodies necessary to conduct their respective businesses, each such certificate, authorization and permit being in full force and effect, and the Company and each subsidiary is in compliance with the terms of each such certificate, authorization and permit, except where the failure to so possess or comply would not, individually or in the aggregate, result in a Material Adverse Change.  Neither the Company nor any subsidiary has received any notice of proceedings relating to the revocation or modification of, or non-compliance with, any such certificate, authorization or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result
in a Material Adverse Change.

          I have participated in conferences with officers and other representatives of the Company, representatives of the independent registered public accounting firm for the Company and with representatives of the Initial Purchasers at which the contents of the Offering Memorandum, and any supplements or amendments thereto, and related matters were discussed and, although I have not independently verified and am not passing upon and do not assume any responsibility for the accuracy, completeness or fairness of the statements contained in the Offering Memorandum (other than as specified in paragraph 4 above), and any supplements or amendments thereto, on the basis of the foregoing, nothing has come to my attention which would lead me to believe that the Offering Memorandum, either as of its date or at the Closing Date, contained or contains an untrue statement of a material fact or omitted or omits to state a
material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading (it being understood that I express no belief as to the financial statements and the related notes thereto or other financial, statistical or accounting data derived therefrom, included in the Offering Memorandum or any amendments or supplements thereto).

Ex. B-2

                    ANNEX I

TERMS AND CONDITIONS OF OFFERS AND SALES

The Initial Purchaser understands that:

                    a)     The Initial Purchaser agrees that it has not offered or sold and will not offer or sell the Securities in the United States or to, or for the benefit or account of, a U.S. Person (other than a distributor), in each case, as defined in Rule 902 under the Securities Act (i) as part of its distribution at any time and (ii) otherwise until 40 days after the later of the commencement of the offering of the Securities pursuant hereto and the Closing Date, other than in accordance with Regulation S of the Securities Act or another exemption from the registration requirements of the Securities Act. The Initial Purchaser agrees that, during such 40-day restricted period, it will not cause any advertisement with respect to the Securities (including any “tombstone” advertisement) to be published in any newspaper or
periodical or posted in any public place and will not issue any circular relating to the Securities, except such advertisements as permitted by and including the statements required by Regulation S.

                    b)     The Initial Purchaser agrees that, at or prior to confirmation of a sale of Securities by it to any distributor, dealer or person receiving a selling concession, fee or other remuneration during the 40-day restricted period referred to in Rule 903 under the Securities Act, it will send to such distributor, dealer or person receiving a selling concession, fee or other remuneration a confirmation or notice to substantially the following effect:

	
   
  	
  “The   Securities covered hereby have not been registered under the U.S. Securities   Act of 1933, as amended (the “Securities Act”), and may not be offered and   sold within the United States or to, or for the account or benefit of, U.S.   persons (i) as part of your distribution at any time or (ii) otherwise until   40 days after the later of the commencement of the Offering and the Closing   Date, except in either case in accordance with Regulation S under the   Securities Act (or Rule 144A or to Institutional Accredited Investors in   transactions that are exempt from the registration requirements of the Securities   Act), and in connection with any subsequent sale by you of the Securities   covered hereby in reliance on Regulation S during the period referred to   above to any distributor, dealer or person receiving a selling concession,   fee or other remuneration, you must deliver a notice to substantially the   foregoing effect. 
Terms used above   have the meanings assigned to them in Regulation S.”
  

ANNEX I-1

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