Document:

exv10w3

 

EXHIBIT 10.3

AMENDMENT NO. 1 TO CREDIT AGREEMENT

AND

JOINDER AGREEMENT

     This Amendment No. 1 to Credit Agreement and Joinder Agreement (this “Agreement”) dated as of
April 27, 2007 is made by and among GROUP 1 REALTY, INC., a Delaware corporation (the “Borrower”),
GROUP 1 AUTOMOTIVE, INC., a Delaware corporation (the “Company”), BANK OF AMERICA, N.A., a national
banking association organized and existing under the laws of the United States (“Bank of America”),
in its capacity as administrative agent for the Lenders (as defined in the Credit Agreement (as
defined below)) (in such capacity, the “Administrative Agent”), Bank of America, as the existing
Lender under the Credit Agreement, each of the Persons becoming Lenders by the execution of this
Amendment (the “Joining Lenders”), and each of the other Guarantors (as defined in the Credit
Agreement) signatory hereto.

W I T N E S S E T H:

     WHEREAS, the Borrower, the Company, the Administrative Agent and the Lenders have entered into
that certain Credit Agreement dated as of March 29, 2007 (as hereby amended and as from time to
time hereafter further amended, modified, supplemented, restated, or amended and restated, the
“Credit Agreement”; capitalized terms used in this Agreement not otherwise defined herein shall
have the respective meanings given thereto in the Credit Agreement), pursuant to which the Lenders
have made available to the Borrower a credit facility; and

     WHEREAS, the Company has entered into the Company Guaranty Agreement pursuant to which it has
guaranteed the payment and performance of the obligations of the Borrower under the Credit
Agreement, the other Loan Documents and the Related Swap Contracts; and

     WHEREAS, each of the other Guarantors has entered into the Subsidiary Guaranty Agreement
pursuant to which it has guaranteed the payment and performance of the obligations of the Borrower
under the Credit Agreement, the other Loan Documents and the Related Swap Contracts; and

     WHEREAS, the Borrower and certain of the Guarantors have entered into, or may in the future
enter into, Security Instruments granting Liens on property as security for all or any portion of
the Obligations, any other obligation under any Loan Document and any obligation or liability
arising under any Related Swap Contract; and

     WHEREAS, the Borrower has advised the Administrative Agent and the Lenders that it desires to
amend the Credit Agreement as set forth below, including an amendment to Section 2.13 of
the Credit Agreement to enlarge the maximum amount of Aggregate Commitments that are available
pursuant to increases in Commitments under Section 2.13, and the Administrative

 

 

Agent and the Lenders signatory hereto are willing to effect such amendment on the terms and
conditions contained in this Agreement; and

     WHEREAS, Bank of America desires to assign to the Joining Lenders, and the Joining Lenders are
willing to assume, a portion of Bank of America’s existing Commitment, as set forth below; and

     WHEREAS, the Borrower has advised the Administrative Agent and the Lenders that, after giving
effect to the foregoing amendment, the Borrower desires to exercise its option, pursuant to
Section 2.13, to increase the Aggregate Commitments by $160,000,000, and the Joining
Lenders are willing to provide such additional Commitments as set forth below;

     NOW, THEREFORE, in consideration of the premises and further valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1. Amendments to Credit Agreement. Subject to the terms and conditions set forth
herein, the Credit Agreement is hereby amended as follows:

     (a) The subheading of Section 2.13 of the Credit Agreement is deleted and the
phrase “Increase in Commitments; Automatic Reduction in Commitments” is inserted in its
place.

     (b) In Section 2.13, the amount “$100,000,000” is deleted and the amount
“$160,000,000” is inserted in its place.

     (c) The following clause (g) is added at the end of Section 2.13:

     “(g) Automatic Reduction in Commitments. If the Total Outstandings are
less than $135,000,000 on March 29, 2009, then, unless the Aggregate Commitments are
less than $135,000,000 on such date, the Aggregate Commitments shall be
automatically and permanently reduced to $135,000,000 as of such date. Any
reduction in Aggregate Commitments pursuant to this paragraph shall be applied to
the Commitment of each Lender according to its Applicable Percentage.”

     (d) The definition of “FIRREA Appraisal Value” in Section 1.01 of the Credit Agreement
is hereby deleted.

     (e) The following definition of “Adjusted FIRREA Appraisal Value” is added to
Section 1.01 of the Credit Agreement, in the appropriate alphabetical order:

     “Adjusted FIRREA Appraisal Value” means, with respect to a Financed
Property, the value set forth for such Financed Property in the FIRREA Appraisal,
as accepted by the Administrative Agent following its internal review and, if
applicable, adjustment thereof by the Administrative Agent, pursuant to the
Administrative Agent’s usual and customary appraisal policies and any applicable
rules or regulations adopted by any Governmental Authority.

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     (d) The definition of “Maximum Loan to Value Amount” in Section 1.01
of the Credit Agreement is amended as follows: The phrase “FIRREA Appraisal Value”
is deleted from each place where it appears in such definition, and in each case
the phrase “Adjusted FIRREA Appraisal Value” is inserted in its place.

2. Joinder Agreement.

     (a) The Borrower hereby confirms its agreement to increase the Aggregate Commitments by
$160,000,000 (the “Increased Commitment Amount”) pursuant to Section 2.13 of the
Credit Agreement, such increase to be effective as of the date this Agreement becomes
effective (the “Amendment Effective Date”).

     (b) By its execution of this Agreement, each Joining Lender hereby confirms and agrees
that, on and after the Amendment Effective Date, it shall be and become a party to the
Credit Agreement as a Lender, and shall have all of the rights and be obligated to perform
all of the obligations of a Lender thereunder with the Commitment applicable to such Lender
as described in clause (d) below. Each Joining Lender further (i) acknowledges that it has
received a copy of the Credit Agreement and the schedules and exhibits thereto and such
other documents and information as it has deemed appropriate to make its own credit and
legal analysis and decision to enter into this Amendment; and (ii) agrees that it will,
independently and without reliance upon the Administrative Agent or any other Lender and
based on such documents and information as it shall deem appropriate at the time, continue
to make its own credit and legal decisions in taking or not taking action under the Credit
Agreement and the other Loan Documents. On and after the date this Amendment becomes
effective, all references to the “Lenders” in the Credit Agreement shall be deemed to
include the Joining Lenders.

     (c) The parties acknowledge and agree that, as of the Amendment Effective Date, Bank of
America is assigning to the Joining Lenders, and the Joining Lenders are assuming,
$24,000,000 (the “Aggregate Assigned Commitment Amount”) of Bank of America’s existing
Commitment, which assignment and assumption shall be allocated to each Joining Lender on a
pro rata basis, so that after giving effect to such assignment as well as the assumptions of
additional Commitments pursuant to clause (d) below, each Lender’s Commitment as of the
Amendment Effective Date is as set forth on Schedule 2.01 attached hereto. In
furtherance of such assignment, Bank of America hereby irrevocably sells and assigns to each
Joining Lender, and each Joining Lender hereby irrevocably purchases and assumes from Bank
of America, as of the Amendment Effective Date, such Joining Lender’s pro rata share of (i)
all of Bank of America’s rights and obligations in its capacity as a Lender under the Credit
Agreement and any other documents or instruments delivered pursuant thereto to the extent
related to the Aggregate Assigned Commitment Amount and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of
Bank of America (in its capacity as a Lender) against any Person, whether known or unknown,
arising under or in connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any way based on
or related to any of the foregoing, including, but not limited to,

3

 

contract claims, tort claims, malpractice claims, statutory claims and all other claims
at law or in equity related to the rights and obligations sold and assigned by Bank of
America to any Joining Lender pursuant to clause (i) above. Each such sale and assignment
is without recourse to Bank of America.

     (d) The parties further acknowledge and agree that, as of the Amendment Effective Date,
each Joining Lender is assuming its pro rata share of the Increased Commitment Amount, so
that after giving effect to such assumption as well as the assignments and assumptions
described in clause (c) above, each Joining Lender’s respective Commitment as of the
Amendment Effective Date is as set forth on Schedule 2.01 hereto.

     (e) On the Amendment Effective Date, (i) each Joining Lender shall make available to
Bank of America such amounts in immediately available funds as the Administrative Agent
shall determine as being required in order to cause, after giving effect to the foregoing
assignments and assumptions of Commitments, the outstanding Loans to be held ratably by all
Lenders in accordance with their respective Applicable Percentages (as revised by this
Amendment), and (ii) the Borrower shall be deemed to have prepaid and reborrowed any Loans
outstanding as of the Amendment Effective Date to the extent necessary to keep the
outstanding Loans ratable with any revised Applicable Percentages arising from any
nonratable increase in the Commitments under this Agreement.

     (f) The parties hereby consent to the assignments of Commitments and Loans effected
pursuant to clauses (c) and (e) above and waive any requirement for any Assignment and
Assumption under the Credit Agreement, necessary to give effect to any assignment, which
shall be deemed effective as if such assignments were evidenced by Assignments and
Assumptions thereunder.

     (g) The respective administrative details for each Joining Lender are set forth on
Annex A attached hereto.

     3. Agreement to Be Bound by Side Letter Agreement. By its execution of this
Agreement, each Joining Lender acknowledges and agrees that it will, upon the request of the
Administrative Agent, fund such additional advances for the Financed Properties as set forth in the
letter agreement attached hereto as Annex B as the Administrative Agent determines in its sole
discretion to meet the conditions set forth in such letter agreement.

     4. Effectiveness; Conditions Precedent. The effectiveness of this Agreement and the
amendments to the Credit Agreement herein provided are subject to the satisfaction of the following
conditions precedent:

     (a) The Administrative Agent shall have received each of the following documents or
instruments in form and substance reasonably acceptable to the Administrative Agent:

4

 

     (i) an original counterpart of this Agreement, duly executed by the Borrower,
the Company, the Administrative Agent, each other Guarantor and each of the Lenders,
together with all schedules and exhibits thereto duly completed;

     (ii) a Note executed by the Borrower in favor of each Lender requesting a Note;

     (iii) with respect to each Financed Property which secures any Loan made under
the Credit Agreement: (i) an amendment to the Mortgage (the “Mortgage Amendment”)
for such Financed Property amending the description of the Obligations and/or
Secured Indebtedness (as defined therein) to conform such Mortgage to the increased
Commitments provided for herein, (ii) a favorable opinion of local counsel to the
Borrower in the state where such Financed Property is located, addressed to the
Administrative Agent and each Lender, as to such matters concerning the Mortgage (as
modified by the Mortgage Amendment) as the Administrative Agent may reasonably
request, and (iii) an endorsement to the Loan Title Insurance Policy issued (or to
be issued) to Administrative Agent by Stewart National Title Company with respect to
each Mortgage that the Mortgage as amended by the Mortgage Amendment continues to
secure the Credit Agreement, as amended by this Agreement, and the Policy continues
in full force and effect following the amendment of the Mortgage, without impairment
in any way;

     (iv) (i) a certificate of each Loan Party dated as of the Amendment Effective
Date signed by a Responsible Officer, secretary or assistant secretary of such Loan
Party certifying and attaching the resolutions adopted by such Loan Party approving
or consenting to the terms of this Agreement, including the increase in Aggregate
Commitments contemplated by Section 2(a) hereof, and (ii) a certificate of
the Borrower, signed by a Responsible Officer, certifying that, before and after
giving effect to such increase, (A) the representations and warranties contained in
Article V of the Credit Agreement and the other Loan Documents are true and
correct on and as of the Amendment Effective Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case
they are true and correct as of such earlier date, and (B) no Default exists; and

     (v) such other documents, instruments, opinions, certifications, undertakings,
further assurances and other matters as the Administrative Agent shall reasonably
request.

     (b) All fees and expenses payable to the Administrative Agent and the Lenders
(including the fees and expenses of counsel to the Administrative Agent) estimated to date
shall have been paid in full (without prejudice to final settling of accounts for such fees
and expenses).

5

 

     5. Consent of the Guarantors. Each Guarantor hereby consents, acknowledges and agrees
to the amendments and other agreements set forth herein and hereby confirms and ratifies in all
respects the Company Guaranty Agreement or Subsidiary Guaranty Agreement to which such Guarantor is
a party (including without limitation the continuation of such Guarantor’s payment and performance
obligations thereunder upon and after the effectiveness of this Agreement and the amendments
contemplated hereby) and the enforceability of such Company Guaranty Agreement or Subsidiary
Guaranty Agreement against such Guarantor in accordance with its terms.

     6. Representations and Warranties. In order to induce the Administrative Agent and
the Lenders to enter into this Agreement, the Borrower represents and warrants to the
Administrative Agent and the Lenders as follows:

     (a) The representations and warranties made by each Loan Party in Article V
 of the Credit Agreement and in each of the other Loan Documents to which such Loan
Party is a party are true and correct on and as of the date hereof, except to the extent
that such representations and warranties expressly relate to an earlier date;

     (b) Since the date of the most recent financial reports of the Borrower delivered
pursuant to Section 6.05 of the Credit Agreement, no act, event, condition or
circumstance has occurred or arisen which, singly or in the aggregate with one or more other
acts, events, occurrences or conditions (whenever occurring or arising), has had or could
reasonably be expected to have a Material Adverse Effect;

     (c) The Company and all other Persons appearing as Guarantors on the signature pages to
this Agreement constitute all Persons who are required to be Guarantors pursuant to the
terms of the Credit Agreement and the other Loan Documents, including without limitation all
Persons who became Subsidiaries or were otherwise required to become Guarantors after the
Closing Date, and each of such Persons has become and remains a party to the Company
Guaranty Agreement or a Subsidiary Guaranty Agreement as a Guarantor;

     (d) This Agreement has been duly authorized, executed and delivered by the Borrower,
the Company and the other Guarantors party hereto and constitutes a legal, valid and binding
obligation of such parties, except as may be limited by general principles of equity or by
the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar
law affecting creditors’ rights generally; and

     (e) No Default or Event of Default has occurred and is continuing.

6

 

     7. Entire Agreement. This Agreement, together with all the Loan Documents
(collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the
parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and
agreements among the parties relating to such subject matter. No promise, condition,
representation or warranty, express or implied, not set forth in the Relevant Documents shall bind
any party hereto, and no such party has relied on any such promise, condition, representation or
warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated in
the Relevant Documents, no representations, warranties or commitments, express or implied, have
been made by any party to the other in relation to the subject matter hereof or thereof. None of
the terms or conditions of this Agreement may be changed, modified, waived or canceled orally or
otherwise, except in writing and in accordance with Section 10.01 of the Credit Agreement.

     8. Full Force and Effect of Agreement. Except as hereby specifically amended,
modified or supplemented, the Credit Agreement and all other Loan Documents are hereby confirmed
and ratified in all respects and shall be and remain in full force and effect according to their
respective terms.

     9. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original as against any party whose signature appears thereon, and all
of which shall together constitute one and the same instrument.

     10. Governing Law. This Agreement shall in all respects be governed by, and construed
in accordance with, the laws of the State of Texas applicable to contracts executed and to be
performed entirely within such State, and shall be further subject to the provisions of Section
10.14 of the Credit Agreement.

     11. Enforceability. Should any one or more of the provisions of this Agreement be
determined to be illegal or unenforceable as to one or more of the parties hereto, all other
provisions nevertheless shall remain effective and binding on the parties hereto.

     12. References. All references in any of the Loan Documents to the “Credit Agreement”
shall mean the Credit Agreement, as amended hereby and as from time to time hereafter further
amended, modified, supplemented, restated or amended and restated.

     13. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Borrower, the Company, the Administrative Agent, each of the other Guarantors and
each of the Lenders, and their respective successors, legal representatives, and assignees to the
extent such assignees are permitted assignees as provided in Section 10.06 of the Credit
Agreement.

[Signature pages follow.]

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

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	GROUP 1 REALTY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John C. Rickel
 

John C. Rickel
	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	GROUP 1 AUTOMOTIVE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John C. Rickel
 

John C. Rickel
	 	 
	 

	 	Title:
	 	Senior Vice President & CFO	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BARON DEVELOPMENT COMPANY, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 REALTY, INC.,
its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ John C. Rickel
 

John C. Rickel
	 	 
	 

	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BOHN HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BOHN HOLDINGS, INC., its Sole

Member	 	 
	 
	 

	 	 	 	By:
	 	/s/ John C. Rickel	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	John C. Rickel	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BOHN-FII, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BOHN HOLDINGS-F, INC., its Sole 

Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ John C. Rickel	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	John C. Rickel	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DANVERS-SU, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 HOLDINGS-S, LLC, its Sole

Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 AUTOMOTIVE, INC., its Sole

Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ John C. Rickel	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	 John C. Rickel	 	 
	 

	 	 	 	Title:
	 	Senior Vice President & CFO	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	DELAWARE ACQUISITION-DC, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 LP
INTERESTS-DC, INC., its 

Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Pete Ruiz
 

Pete Ruiz
	 	 
	 

	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DELAWARE ACQUISITION-F, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 LP
INTERESTS-F, INC., its 

Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Pete Ruiz
 

Pete Ruiz
	 	 
	 

	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DELAWARE ACQUISITION-GM, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 LP
INTERESTS-GM, INC., its 

Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Pete Ruiz
 

Pete Ruiz
	 	 
	 

	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DELAWARE ACQUISITION-T, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 LP
INTERESTS-T, INC., its 

Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Pete Ruiz
 

Pete Ruiz
	 	 
	 

	 	 	 	Title:
	 	President	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	DELAWARE ACQUISITION-N, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 LP
INTERESTS-N, INC., its 

Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Pete Ruiz
 

Pete Ruiz
	 	 
	 

	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GPI KS-SV, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GPI KS-SV, INC., its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ John C. Rickel
 

John C. Rickel
	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GROUP 1 ASSOCIATES HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 ASSOCIATES,
INC., its 

Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ John C. Rickel
 

John C. Rickel
	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HOWARD-DCIII, LLC	 	 
	 	 	GROUP 1 HOLDINGS-DC, L.L.C.	 	 
	 	 	GROUP 1 HOLDINGS-F, L.L.C.	 	 
	 	 	GROUP 1 HOLDINGS-GM, L.L.C.	 	 
	 	 	GROUP 1 HOLDINGS-H, L.L.C.	 	 
	 	 	GROUP 1 HOLDINGS-N, L.L.C.	 	 
	 	 	GROUP 1 HOLDINGS-S, LLC	 	 
	 	 	GROUP 1 HOLDINGS-T, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 AUTOMOTIVE,
INC., its Sole 

Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ John C. Rickel
 

John C. Rickel
	 	 
	 

	 	 	 	Title:
	 	Senior Vice President & CFO	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	HARVEY GM, LLC

HARVEY OPERATIONS-T, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BOHN HOLDINGS, LLC, its Sole

Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BOHN HOLDINGS, INC., its Sole 

Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ John C. Rickel
 

John C. Rickel
	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HARVEY SM, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BOHN HOLDINGS-S, INC., its Sole

Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ John C. Rickel
 

John C. Rickel
	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	IRA AUTOMATIVE GROUP, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	DANVERS-T, INC., its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ John C. Rickel
 

John C. Rickel
	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	AMARILLO MOTORS-C, LTD.

AMARILLO MOTORS-J, LTD.

AMARILLO MOTORS-SM, LTD.

CHAPERRAL DODGE, LTD.

GPI, LTD.

KUTZ-N, LTD.

LUBBOCK MOTORS-GM, LTD.

LUBBOCK MOTORS-S, LTD.

LUBBOCK MOTORS-SH, LTD.

LUBBOCK MOTORS-T, LTD.

LUBBOCK MOTORS, LTD.

MAXWELL-N, LTD.

MAXWELL-NII, LTD.

MAXWELL CHRYSLER DODGE JEEP, LTD.

MAXWELL-G, LTD.

MAXWELL-GII, LTD.

MCCALL-HA, LTD.

MCCALL-T, LTD.

MCCALL-TII, LTD.

MCCALL-TL, LTD.

MCCALL-H, LTD.

MCCALL-N, LTD.

MCCALL-SB, LTD.

MCCALL-SL, LTD.

PRESTIGE CHRYSLER NORTHWEST, LTD.

PRESTIGE CHRYSLER SOUTH, LTD.

ROCKWALL AUTOMOTIVE-DCD, LTD.

WEST CENTRAL MANAGEMENT

COMPANY, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GROUP 1 ASSOCIATES,
INC., its General 

Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ John C. Rickel
 

John C. Rickel
	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GROUP 1 FUNDING, INC.

NY-H, INC.

NY-HA, INC.

SMC INVESTMENT, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ John C. Rickel	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	John C. Rickel	 	 
	 	 	Title:	 	President	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BOB HOWARD AUTOMOTIVE-EAST, INC.

BOB HOWARD CHEVROLET, INC.

BOB HOWARD DODGE, INC.

BOB HOWARD MOTORS, INC.

BOB HOWARD NISSAN, INC.

BOHN HOLDINGS, INC.

BOHN HOLDINGS-F, INC.

BOHN HOLDINGS-S, INC.

CASA CHEVROLET INC.

CASA CHRYSLER PLYMOUTH JEEP INC.

DANVERS — DCIII, INC.

DANVERS — DCII, INC.

DANVERS-N, INC.

DANVERS — NII, INC.

DANVERS — S, INC.

DANVERS-SB, INC.

DANVERS-T, INC.

DANVERS-TII, INC.

DANVERS-TIII, INC.

DANVERS — TL, INC.

FMM, INC.

GPI AL-N, INC.

GPI ATLANTA-T, INC.

GPI CA-NIII, INC.

GPI CA-TII, INC.

GPI KS-SB, INC.

GPI MS-H, INC.

GPI MS-N, INC.

GPI MS-SK, INC.

GPI NH-T, INC.

GPI NH-TL, INC.

GPI SAC-SK, INC.

GPI SAC-T, INC.

GPI SD-DC, INC.

GPI SD-IMPORTS, INC.

GROUP 1 ASSOCIATES, INC.

GROUP 1 FL HOLDINGS, INC.

HOWARD-DCII, INC.

HOWARD-GM, INC.

HOWARD-GM II, INC.

HOWARD-GMIII, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ John C. Rickel	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	John C. Rickel	 	 
	 	 	Title:	 	Vice President	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	HOWARD-H, INC.

HOWARD-HA, INC.

HOWARD-SB, INC.

HOWARD-SI, INC.

HOWARD-FLMII, INC.

HOWARD PONTIAC-GMC, INC.

LUBY CHEVROLET CO.

MIKE SMITH AUTOMOTIVE — H, INC.

MIKE SMITH AUTOMOTIVE-N, INC.

MIKE SMITH AUTOPLAZA, INC.

MIKE SMITH AUTOPLEX BUICK, INC.

MIKE SMITH AUTOPLEX DODGE, INC.

MIKE SMITH AUTOPLEX, INC.

MIKE SMITH AUTOPLEX-GERMAN IMPORTS, INC.

MIKE SMITH GM, INC.

MIKE SMITH IMPORTS, INC.

MIKE SMITH MOTORS, INC.

MILLER-DM, INC.

MILLER-NII, INC.

MILLER-SH, INC.

MILLER AUTOMOTIVE GROUP, INC.

MILLBRO, INC.

MILLER FAMILY COMPANY, INC.

MILLER IMPORTS, INC.

MILLER INFINITI INC.

MILLER NISSAN, INC.

NJ-DM, INC.

NJ-H, INC.

NJ-HA, INC.

NJ-HAII, INC.

NJ-HII, INC.

NJ-SB, INC.

NJ-SV, INC.

NY-FV, INC.

NY-FVII, INC.

NY-SB, INC.

NY-SBII, INC.

SUNSHINE BUICK PONTIAC GMC TRUCK, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ John C. Rickel	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	John C. Rickel	 	 
	 	 	Title:	 	Vice President	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	GROUP 1 LP INTERESTS-DC, INC.

GROUP 1 LP INTERESTS-F, INC.

GROUP 1 LP INTERESTS-GM, INC.

GROUP 1 LP INTERESTS-H, INC.

GROUP 1 LP INTERESTS-N, INC.

GROUP 1 LP INTERESTS-S, INC.

GROUP 1 LP INTERESTS-T, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Pete Ruiz	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Pete Ruiz	 	 
	 	 	Title:	 	President & Secretary	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Administrative

Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Anne M. Zeschke	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Anne M. Zeschke	 	 
	 	 	Title:	 	Assistant Vice President	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	EXISTING LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ M. Patricia Kay	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	M. Patricia Kay	 	 
	 	 	Title:	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	JOINING LENDERS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COMERICA BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jonathan Heine	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Jonathan Heine	 	 
	 	 	Title:	 	Corporate Banking Officer	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ H. David Jones	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	H. David Jones	 	 
	 	 	Title:	 	Senior Vice President	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jim Webber	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Jim Webber	 	 
	 	 	Title:	 	Commercial R.M., V.P.	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	NISSAN MOTOR ACCEPTANCE

CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Kevin Cullum	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Kevin Cullum	 	 
	 	 	Title:	 	Director Commercial Credit & LCV Lending	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL

ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Michael R. Burkitt	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Michael R. Burkitt	 	 
	 	 	Title:	 	Senior Vice President	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	SOVEREIGN BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Kyle S. Bourque	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Kyle S. Bourque	 	 
	 	 	Title:	 	Vice President	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	TOYOTA MOTOR CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mark Doi	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Mark Doi	 	 
	 	 	Title:	 	Dealer Credit National Manager	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BMW FINANCIAL SERVICES NA, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ John Note	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	John Note	 	 
	 	 	Title:	 	General Manager, Retailer Finance	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jeffrey Burnside	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Jeffrey Burnside	 	 
	 	 	Title:	 	Manager, Retailer Finance	 	 

Signature Page

 

 

SCHEDULE 2.01

COMMITMENTS AND

APPLICABLE PERCENTAGES

(as of Amendment Effective Date)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable
	Lender	 	Commitment	 	Percentage
	Bank of America, N.A.
	 	$	51,000,000.00	 	 	 	21.70212766	%
	BMW Financial Services NA, LLC
	 	$	45,000,000.00	 	 	 	19.14893617	%
	Toyota Motor Credit Corporation
	 	$	35,000,000.00	 	 	 	14.89361702	%
	Wachovia Bank, National Association
	 	$	25,000,000.00	 	 	 	10.63829787	%
	Comerica Bank
	 	$	25,000,000.00	 	 	 	10.63829787	%
	Sovereign Bank
	 	$	15,000,000.00	 	 	 	6.38297872	%
	Nissan Motor Acceptance Corporation
	 	$	15,000,000.00	 	 	 	6.38297872	%
	Keybank National Association
	 	$	14,000,000.00	 	 	 	5.95744681	%
	JPMorgan Chase Bank, N.A.
	 	$	10,000,000.00	 	 	 	4.25531915	%
	Total
	 	$	235,000,000.00	 	 	 	100.00000000	%

 

 

ANNEX A

ADMINISTRATIVE DETAILS

FOR JOINING LENDERS

See Attached.

 

 

ANNEX B

SIDE LETTER AGREEMENT

See Attached.

Signature Pageexv10w1

 

Exhibit 10.1

TRONOX INCORPORATED

DEFINED CONTRIBUTION RESTORATION PLAN

(Effective March 30, 2006)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I.

	 	Purpose
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II.

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE III.

	 	Eligibility and Participation
	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE IV.

	 	Provisions for Benefits
	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE V.

	 	Amount of Benefits
	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE VI.

	 	Payment of Benefits
	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE VII.

	 	Administration
	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE VIII.

	 	General Provisions
	 	 	9	 

 

 

Tronox Incorporated

Defined Contribution Restoration Plan

ARTICLE I.

PURPOSE

     The purpose of this Plan (as defined below) is to provide benefits which are not payable to an
Eligible Employee under the Defined Contribution Plan because of benefit limitations under the
Code. The Plan is intended (1) to comply with Code section 409A and official guidance issued
thereunder, (2) to be an unfunded “excess benefit plan,” (within the meaning of Section 3(36) of
ERISA (as defined below) to the extent the Plan provides benefits in excess of the limits imposed
by Code Section 415, and (3) to be an unfunded plan providing “deferred compensation for a select
group of management or highly compensated employees” (within the meaning of Sections 201(2),
301(a)(3), and 401(a)(l) of ERISA) to the extent the Plan provides benefits in excess of other Code
restrictions and/or limitations. Notwithstanding any other provision of this Plan, this Plan shall
be interpreted, operated and administered in a manner consistent with these intentions.

ARTICLE II.

DEFINITIONS

     The masculine gender, where appearing in the Plan shall be deemed to include the feminine
gender, the single may include the plural, and visa versa, unless the context clearly indicates to
the contrary. Where capitalized words and phrases appear in this Plan, they shall have the
respective meanings set forth below.

     2.1. Affiliate. Affiliate means:

          (a) Any corporation other than the Company (i.e., either a subsidiary corporation or an
affiliated or associated corporation of the Company), which together with the Company is a member
of a “controlled group” of corporations;

          (b) Any organization with which the Company is under “common control;”

          (c) Any organization which together with the Company is an “affiliated service group;”

          (d) A limited liability company wholly owned by the Company; or

          (e) Any foreign affiliate of the Company which is covered by an agreement under Section
3121(1) of the Code;

as those terms are used in Code Sections 406(a), 414(b), 414(c), and 414(m).

     2.2. Basic Defined Contribution Plan Contributions. The amount of Company or
Affiliate contributions allocated to the Participant’s accounts during any year under the Defined
Contribution Plan after reduction to comply with the Limits of the Code.

 

 

     2.3. Beneficiary. The beneficiary of a deceased Participant’s Restored Defined
Contribution Plan Benefits shall be the trust, person or persons on whose behalf benefits may be
payable under the Defined Contribution Plan after the Participant’s death. Provided, if there is
no Beneficiary, then any Restored Defined Contribution Plan Benefits shall be payable to the
deceased Participant’s estate.

     2.4. Board of Directors. The duly elected and serving Board of Directors of Tronox
Incorporated or any duly authorized committee of the Board of Directors.

     2.5. Change of Control. Change of Control shall mean any one of the following:

          (a) any person (“Person”) as defined in Section 3(a)(9) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and as used in Section 13(d) and 14(d) thereof, including a
“group” as defined in Section 13 (d) of the Exchange Act but excluding the Company and any
subsidiary and any employee benefit plan sponsored or maintained by the Company or any subsidiary
(including any trustee of such plan acting as trustee), directly or indirectly, becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), of securities of the Company
representing 25% or more of the combined voting power of the Company’s then outstanding securities
(other than indirectly as a result of the Company’s redemption of its securities); or

          (b) the consummation of any merger or other business combination of the Company, sale of 50%
or more of the Company’s assets, liquidation or dissolution of the Company or combination of the
foregoing transactions (the “Transactions”) other than a Transaction immediately following which
the shareholders of the Company and any trustee or fiduciary of any Company employee benefit plan
immediately prior to the Transaction own at least 60% of the voting power, directly or indirectly,
of (A) the surviving corporation in any such merger or other business combination; (B) the
purchaser of or successor to the Company’s assets; (C) both the surviving corporation and the
purchaser in the event of any combination of Transactions; or (D) the parent company owning 100% of
such surviving corporation, purchaser or both the surviving corporation and the purchaser, as the
case may be; or

          (c) within any twenty-four month period, the persons who were directors immediately before the
beginning of such period (the “Incumbent Directors”) shall cease (for any reason other than death)
to constitute at least a majority of the Board of Directors or the board of directors of a
successor to the Company. For this purpose, any director who was not a director at the beginning of
such period shall be deemed to be an Incumbent Director if such director was elected to the Board
of Directors by, or on the recommendation of or with the approval of, at least two-thirds of the
directors who then qualified as Incumbent Directors (so long as such director was not nominated by
a person who commenced or threatened to commence an election contest or proxy solicitation by or on
behalf of a Person (other than the Board of Directors) or who has entered into an agreement to
effect a Change of Control or expressed an intention to cause such a Change of Control); or

          (d) a majority of the members of the Board of Directors in office immediately prior to a
proposed transaction determine by a written resolution that such proposed transaction, if taken,
will be deemed a Change of Control and such proposed transaction is consummated.

     2.6. Code. The Internal Revenue Code of 1986, as amended from time to time and

2

 

related IRS notices, rules and regulations.

     2.7. Committee. The persons appointed to administer this Plan in accordance with
Article VII.

     2.8. Company. Tronox Incorporated, or any successor thereto.

     2.9. Defined Contribution Plan. Tronox Incorporated Savings Investment Plan.

     2.10. ERISA. The Employee Retirement Income Security Act of 1974, as amended.

     2.11. Eligible Employee. Any employee of the Company or an Affiliate whose benefit
under the Defined Contribution Plan is subject to the Limits of the Code.

     2.12. Key Employee. Key Employee means an employee treated as a “specified
employee” under Code section 409A(a)(2)(B)(i) (i.e., a key employee (as defined in Code section
416(i) without regard to paragraph (5) thereof)) of the Company. Key Employees shall be determined
by the Committee in accordance with Code section 409A using a December 31 identification date.

     2.13. Limits of the Code. The limitations imposed under the Code, which shall include
by example but not by limitation Sections 401(a)(17) and/or 415, on the amount of benefits which
may be earned under the Defined Contribution Plan.

     2.14. Participant. An Eligible Employee who meets the requirements to participate in
the Plan in accordance with the provisions of Article III hereof.

     2.15. Plan. Tronox Incorporated Defined Contribution Restoration Plan, as amended
from time to time.

     2.16. Restored Defined Contribution Plan Benefits. A Participant’s benefit balance, if
any, provided under Section 5.1 hereof attributable to reduction(s) in Defined Contribution Plan
contributions by the Company or its Affiliates based on Limits of the Code.

     2.17. Separation from Service. Separation from Service or Separates from Service
means a “separation from service” within the meaning of Code section 409A.

ARTICLE III.

ELIGIBILITY AND PARTICIPATION

     Any Eligible Employee whose benefit under the Defined Contribution Plan is subject to the
Limits of the Code shall participate in this Plan.

ARTICLE IV.

PROVISIONS FOR BENEFITS

     Benefits provided by this Plan shall constitute general obligations of the Company and shall
at all times be subject to the claims of the general creditors of the Company, in accordance

3

 

with the terms hereof. No amounts in respect of such benefits shall be set aside or held in trust
and no recipient of any benefit shall have any right to have the benefit paid out of any
particular assets of the Company; provided, however, that nothing herein shall be construed to
prevent a transfer of funds to a grantor trust for the purpose of paying benefits or any part
thereof as directed by the Committee under this Plan.

ARTICLE V.

AMOUNT OF BENEFITS

     5.1. Restored Defined Contribution Plan Benefits. If the amount of contributions by
the Company or its Affiliates allocated to a Participant’s accounts during any year under the
Defined Contribution Plan is, directly or indirectly, subject to the Limits of the Code, then an
amount equal to the amount by which such contributions are so limited shall be credited to such
Participant under this Plan. In determining the amounts payable under this Plan, such calculation
shall be made under the terms of the Defined Contribution Plan without the Limits of the Code.
Restored Defined Contribution Plan Benefits shall earn interest until the date payable under
Section 6.1 based upon the 1-Year Treasury Bill rates. The determination of the applicable rate
shall be updated on an annual basis as of January 1 of each year.

     5.2. Vesting. Participants shall at all times be fully vested in their benefits under
the Plan.

ARTICLE VI.

PAYMENT OF BENEFITS

     6.1. Payment of Restored Defined Contribution Plan Benefits. Payment of any
Participant’s Restored Defined Contribution Plan Benefits under Section 5.1 hereof shall be made to
the Participant, or in the event of his death, his Beneficiary, all at one time (in the form of a
lump-sum payment) 60 days following the Participant’s Separation from Service.

     6.2. Six-Month Delay. Notwithstanding anything herein to the contrary, distributions
may not be made to a Key Employee upon a Separation from Service before the date which is six
months after the date of the Key Employee’s Separation from Service (or, if earlier, the date of
death of the Key Employee). If applicable, any amounts payable to the Participant during such six
(6) month period shall be accumulated and paid on the first day of the seventh month following the
Participant’s Separation from Service. Interest shall accrue on such amounts during such six
month period at the rate determined under Section 5.1.

ARTICLE VII.

ADMINISTRATION

     7.1 Administration by Committee. The Tronox Incorporated Benefits Committee shall,
unless otherwise determined by the Board of Directors, administer this Plan. The Committee shall
be the “plan administrator” with respect to the Plan.

     7.2 Rules of Conduct. The Committee shall adopt such rules for the conduct of its
business and the administration of this Plan as it considers desirable, provided they do not
conflict with the provisions of this Plan.

4

 

     7.3
Legal, Accounting, Clerical and Other Services. The Committee may authorize one
or more if its members or any agent to act on its behalf and may contract for legal, accounting,
clerical and other services to carry out this Plan. The Company shall pay all expenses of the
Committee.

     7.4 Records of Administration. The Committee shall keep records reflecting the
administration of this Plan which shall be subject to audit by the Company.

     7.5 Expenses. The expenses of administering the Plan shall be borne by the Company.

     7.6 Indemnification. The officers and directors of the Company, members of the
Committee, and any employees of the Company who administer the Plan (including in-house counsel who
interprets the Plan) shall be indemnified and held harmless by the Company against and from any and
all loss, cost, liability, or expense that may be imposed upon or reasonably incurred by them in
connection with or resulting from any claim, action, suit, or proceeding to which they may be a
party or in which they may be involved by reason of any action taken or failure to act under this
Plan and against and from any and all amounts paid by them in settlement with the Company’s written
approval or paid by them in satisfaction of a judgment in any such action, suit, or proceeding.
The foregoing provision shall not be applicable to any person if the loss, cost, liability, or
expense is due to such person’s fraud or willful misconduct.

     7.7 Liability. No member of the Board of Directors or of the Committee shall be
liable for any act or action, whether of commission or omission, taken by any other member, or by
any officer, agent, or employee of the Company or of any such body, nor, except in circumstances
involving his bad faith, for anything done or omitted to be done by himself.

     7.8 Claims Review Procedures.

          (a) Filing a Claim. A Participant (or an authorized representative) may file a claim for
benefits under the Plan by filing a written claim, identified as a claim for benefits, with the
Committee. In addition, the Committee may treat any writing or other communication received by it
as a claim for benefits, even if the writing or communication is not identified as a claim for
benefits.

          (b) Acknowledgement of Receipt of Claim. The Committee will send the claimant a letter
acknowledging the receipt of any communication that it treats as a claim for benefits. If the
claimant fails to receive such an acknowledgement within 60 days after making a claim, the claimant
should contact the Committee to determine whether the claim has been received and identified as a
claim for benefits.

          (c) Approval of Claim. A claim is considered approved only if its approval is communicated in
writing to a claimant. If a claimant does not receive a response to a claim for benefits within the
applicable time period, the claimant may proceed with an appeal under the procedures described in
Section 7.8(e).

          (d) Denial of Claim. If a claim is denied in whole or in part, the Committee will notify the
claimant of its decision by written notice, in a manner calculated to be understood by the
claimant.

5

 

	 	(1)	 	Timing of Notice. The notice of denial must be given within 90
days after the claim is received by the Committee. If special
circumstances (such as a hearing) require a longer period, the
claimant will be notified in writing, before the expiration of the
90- day period, of the expected decision date and the reasons for an
extension of time; provided, however, that no extensions will be
permitted beyond 90 days after expiration of the initial 90-day
period.
	 
	 	(2)	 	Content of Notice. The notice will set forth:

	 	i.	 	the specific reasons for the denial of the claim;
	 
	 	ii.	 	a reference to specific
provisions of the Plan on which the denial is based;
	 
	 	iii.	 	a description of any additional
material or information necessary to perfect the claim and an
explanation of why such material or information is necessary;
and
	 
	 	iv.	 	an explanation of the procedure
for review of the denied or partially denied claim, including
the claimant’s right to bring a civil action under ERISA
section 502(a) following an adverse benefit determination on
review.

          (e) Request for Review of Denial. Upon denial of a claim in whole or in part, a claimant (or
his authorized representative) has the right to submit a written request to the Committee for a
full and fair review of the denied claim, and upon request and free of charge, to reasonable
access and copies of all documents, records, and other information relevant to the claimant’s
claim for benefits and may submit issues and comments in writing.

	 	(1)	 	Scope of Review. The review takes into
account all comments, documents, records, and other information
submitted by the claimant relating to the claim, without regard to
whether such information was submitted or considered in the initial
benefit determination.
	 
	 	(2)	 	Timing of Request for Review. A request for
review of a claim must be submitted within 60 days of receipt by the
claimant of written notice of the denial of the claim (or, if the
claimant has not received a response to the initial claim, within 150
days of the filing of the initial claim). If the claimant fails to file
a request for review within 60 days of the denial notification, the
claim is deemed abandoned and the claimant precluded from reasserting
it.
	 
	 	(3)	 	Contents of Request for Review. If the claimant
files a request for review, his request must include a description of
the issues and evidence he deems relevant. Failure to raise issues or
present

6

 

	 	 	 	evidence on review will preclude those issues or evidence from being
presented in any subsequent proceeding or judicial review of the
claim.

          (f) Denial
Upon Review.

	 	(1)	 	Timing of Denial Notice. The Committee must
render its decision on the review of the claim no more than 60 days
after the Committee’s receipt of the request for review, except that
this period may be extended for an additional 60 days if the Committee
determines that special circumstances (such as a hearing) require such
extension. If an extension of time is required, written notice of the
expected decision date and the reasons for the extension will be
furnished to the claimant before the end of the initial 60-day period.
	 
	 	(2)	 	Contents of Denial. If the Committee issues a
negative decision, it provides a prompt written decision setting forth:

	 	i.	 	the specific reason or reasons for the adverse determination;
	 
	 	ii.	 	a reference to specific Plan
provisions on which the adverse determination was made;
	 
	 	iii.	 	a statement that the claimant is
entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records,
and other information relevant to the claimant’s claim for
benefits; and
	 
	 	iv.	 	a statement describing any
voluntary appeal procedures offered by the plan and the
claimant’s right to obtain the information about such
procedures and a statement of the claimant’s right to bring an
action under ERISA section 502(a).

	 	(3)	 	Authority of Committee. To the extent of its
responsibility to review the denial of benefit claims, the Committee
has full authority to interpret and apply in its discretion the
provisions of the Plan. The decision of the Committee is final and
binding upon any and all claimants and any person making a claim
through or under them.

          (g) Limits on Right to Judicial Review. A claimant must follow the claims procedures
described by this Section before taking action in any other forum regarding a claim for benefits
under the Plan. Any suit or legal action initiated by a claimant under the Plan must be brought by
the claimant no later than one year following a final decision on the claim for benefits under
these claims procedures. The one-year statute of limitations on suits for benefits applies in any
forum where a claimant initiates such suit or legal action. If a civil action is not

7

 

filed within this period, the claimant’s benefit claim is deemed permanently waived and abandoned.

          (h) Other Claims. Any other claims that arise under or in connection with the Plan, even
though not claims for benefits, must be filed with the Committee and are considered in accordance
with these claims and appeals procedures.

     7.9
Finality of Determinations; Exhaustion of Remedies. To the extent permitted by
law, decisions reached under the claims procedures set forth in Section 7.8 shall be final and
binding on all parties. No legal action for benefits under the Plan shall be brought unless and
until the claimant has exhausted his remedies under Section 7.8. In any such legal action, the
claimant may only present evidence and theories which the claimant presented during the claims
procedure. Any claims which the claimant does not in good faith pursue though the review stage of
the procedure shall be treated as having been irrevocably waived. Judicial review of a claimant’s
denied claim shall be limited to a determination of whether the denial was an abuse of discretion
based on the evidence and theories the claimant presented during the claims procedure. This Section
shall have no application following a Change of Control as to a claim which is first asserted or
first denied after the Change of Control and, as to such a claim, the de novo standard of judicial
review shall apply.

     7.10 Effect of Committee Action. The Plan shall be interpreted by the Committee in
accordance with the terms of the Plan and their intended meanings. However, the Committee shall
have the discretion to make any findings of fact needed in the administration of the Plan, and
shall have the discretion to interpret or construe ambiguous, unclear or implied (but omitted)
terms in any fashion it deems to be appropriate in its sole judgment. The validity of any such
finding of fact, interpretation, construction or decision shall not be given de novo review if
challenged in court, by arbitration or in any other forum, and shall be upheld unless clearly
arbitrary or capricious. To the extent the Committee has been granted discretionary authority
under the Plan, the Committee’s prior exercise of such authority shall not obligate it to exercise
its authority in a like fashion thereafter. If, due to errors in drafting, any Plan provision does
not accurately reflect its intended meaning, as demonstrated by consistent interpretations or other
evidence of intent, or as determined by the Committee in it sole and exclusive judgment, the
provision shall be considered ambiguous and shall be interpreted by the Committee in a fashion
consistent with its intent, as determined by the Committee in its sole discretion. The Committee,
without the need for Board of Directors’ approval, may amend the Plan retroactively to cure any
such ambiguity. This Section may not be invoked by any person to require the Plan to be
interpreted in a manner which is inconsistent with its interpretation
by the Committee. All
actions taken and all determinations made in good faith by the Committee shall be final and binding
upon all persons claiming any interest in or under the Plan. This Section shall not apply to
Committee actions or interpretations which take place or are made following a Change of Control.

     7.11 Effect of Mistake. If, in the sole opinion of the Committee, a material mistake
or misstatement as to the eligibility of a Participant or the amount of benefit payments made or to
be made to or with respect to a Participant occurs, the Committee shall, if possible, cause an
adjustment to be made so as to correct such mistake and provide the correct amount of payments with
respect to such Participant.

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ARTICLE VIII.

GENERAL PROVISIONS

     8.1.
Plan Amendment, Suspension and/or Termination. The Board of Directors may, by
resolution, in its absolute discretion, from time to time, amend, suspend or terminate in whole or
in part, and if terminated, reinstate any of all of the provisions of this Plan, except that no
amendment suspension or termination may apply so as to decrease the payment to any Participant (or
Beneficiary) of any benefit under this Plan accrued prior to the effective date of such amendment,
suspension or termination. Any such amendment, suspension or terminations shall become effective on
such date as shall be specified in such resolution and, except as expressly limited in this Section
8.1, shall include provisions and shall have such effect as the Board of Directors in its absolute
discretion, deems desirable. Notwithstanding the foregoing, on or after a Change of Control, any
amendment, suspension or termination of the Plan shall not apply to any Participant or Beneficiary
in any way in which the Participant or Beneficiary reasonably considers to be personally
detrimental if the Participant objects to such application in writing within thirty days after
notice of the amendment unless the Participant or Beneficiary theretofore had consented, or
thereafter consents, to the amendment in writing.

     Notwithstanding anything herein to the contrary, the Board of Directors may provide that upon
the termination of the Plan, all benefits shall be paid on an accelerated basis in accordance with
the rules under Section 409A of the Code.

     8.2. Plan Not an Employment Contract. The Plan is strictly a voluntary undertaking on
the part of the Company and shall not constitute a contract between the Company or its Affiliates
and any Eligible Employee, or consideration for, or an inducement or condition of, the employment
of an Eligible Employee. Nothing contained in the Plan shall give any Eligible Employee the right
to be retained in the service of the Company or its Affiliates or to interfere with or restrict the
right of the Company or its Affiliates, which is hereby expressly reserved, to discharge or retire
any Eligible Employee at any time for any reason not prohibited by statute, without the Company or
its Affiliates being required to show cause for the termination. Inclusion under the Plan will not
give any Eligible Employee any right or claim to any benefit hereunder except to the extent such
right has specifically become fixed under the terms of the Plan. The doctrine of substantial
performance shall have no application to Eligible Employees, Participants or Beneficiaries. Each
condition and provision, including numerical items, has been carefully considered and constitutes
the minimum limit on performance which will give rise to the applicable right.

     8.3. Non-alienation of Benefits. Except as provided in this Section and to the extent
permitted by law, benefits payable under this Plan shall not, without Committee consent, be subject
in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge,
garnishment, execution, or levy of any kind, either voluntary or involuntary. An unauthorized
attempt to charge or otherwise dispose of any right to benefits payable shall be subject to seizure
by legal process resulting from any attempt by creditors of or claimants against any Participant
(or Beneficiary), or any person claiming under or through the foregoing, to attach his interest
under this Plan. The anti-alienation restrictions of this Section shall not apply to “qualified
domestic relations order” described in Section 206(d) of ERISA. The Committee shall establish
procedures to determine whether domestic relations orders are “qualified domestic

9

 

relation orders” and to administer distributions under such qualified domestic relation orders.
Nothing in this Section shall preclude the Company or its Affiliates from withholding from amounts
payable to a Participant or his Beneficiary under this Plan amount the Participant owes the
Company or its Affiliates. Following a Change of Control, the Company or its Affiliates shall not
be entitled to withhold amounts in the manner described in the preceding sentence.

     8.4. Special Payment Situations. The following provisions shall apply to the
extent permitted under Code Section 409A.

          (a) Missing Participant or Beneficiary. Payment of benefits to the person entitled thereto
may be sent by first class mail, address correction requested, to the last known address on file
with the Committee. If, within two months from the date of issuance of the payment, the payment
letter cannot be delivered to the person entitled thereto or the payment has not been negotiated,
the payment shall be treated as forfeited. However, if the person to whom the benefit became
payable subsequently appears and identifies himself to the satisfaction of the Committee, the
amount forfeited (without earnings thereon) shall be distributed to the person entitled thereto.
The right of any person to restoration of a benefit which was forfeited pursuant to this Section
shall cease upon termination of the Plan.

          (b) Private Investigators. If the Committee retains a private investigator or other person
or service to assist in locating a missing person, all costs incurred for such services shall be
charged against the benefit to which the missing person was believed to be entitled and the benefit
shall be reduced by the amount of the costs incurred, except as the Committee may otherwise direct.

          (c) Delayed Payment. Payments to Participants or Beneficiaries may be postponed by the
Committee until any anticipated taxes, expenses or amounts to be paid under a qualified domestic
relations order have been paid in full or until it is determined that such charges will not be
imposed. A payment to a Participant or Beneficiary may also be delayed in the event payment might
defeat an adverse potential or asserted claim by some other person to the payment. The cost
incurred by the Company in dealing with any such adverse claim shall be charged against the benefit
to which the claim relates, except as the Committee otherwise directs.

     8.5. Spinoffs. If a Participant ceases to be employed by the Company or its Affiliates
because of the disposition by the Company or its Affiliates of its interest in a subsidiary, plant,
facility or other business unit or if an entity which employs a Participant ceases to be an
Affiliate, such Participant’s employment shall be considered terminated for all Plan purposes. To
the extent permitted under Code section 409A, this Section 8.5 shall not apply to the extent it is
overridden by any contrary or inconsistent provision in applicable sales documents or any related
documents, whether adopted before or after the sale and any such contrary or inconsistent provision
shall instead apply and is hereby incorporated in the Plan by this reference.

     8.6. Duty to Provide Data.

          (a) Data Requests. Every person with an interest in the Plan or claiming benefits under the
Plan shall furnish the Committee on a timely and accurate basis with such documents, evidence or
information as it considers necessary or desirable for the purpose of

10

 

administering the Plan. The Committee may postpone payment of benefits (without accrual of
interest) until such information and such documents have been furnished.

          (b) Addresses. Every person claiming a benefit under this Plan shall give written notice to
the Committee of his post office address and each change of post
office address. Any communication,
statement or notice addressed to such a person at his latest post office address as filed with the
Committee will, on deposit in the United States mail with postage prepaid, be as binding upon such
person for all purposes of the Plan as if it had been received, whether actually received or not.
If a person fails to give notice of his correct address, the Committee, the Company and its
Affiliates shall not be obliged to search for, or to ascertain, his whereabouts.

          (c) Failure to Comply. If benefits which are otherwise currently payable cannot be paid to
the person entitled to the benefits because the individual has failed to comply with this Section
or other Plan provisions relating to claims for benefits, any unpaid past due amount shall be
forfeited on the individual’s death or presumed death.

     8.7. Tax Consequences Not Guaranteed. The Company does not warrant that this Plan will
have any particular tax consequences for Participants or Beneficiaries and shall not be liable to
them if tax consequences they anticipate do not actually occur. The Company shall have no
obligation to indemnify a Participant or Beneficiary for lost tax benefits (or other damage or
loss) in the event benefits are cancelled as permitted under Section 8.1, accelerated, or because
of change in Plan design or funding; e.g., establishment of a “secular trust.”

     8.8. Tax Withholding. The Company or other payor may withhold from a benefit accrual
or payment under this Plan any Federal, state or local taxes required by law to be withheld with
respect to such accrual or payment and may withhold such sum as the payor may reasonably estimate
as necessary to cover any taxes for which the Company may be liable and which may be assessed with
regard to such accrual or payment.

     8.9. Incompetency. Any person receiving or claiming benefits under the Plan shall be
conclusively presumed to be mentally competent until the date on which the Committee receives a
written notice, in an acceptable form and manner, that such person is incompetent and a guardian or
other person legally vested with the care of his estate has been appointed. If the Committee
finds that any person to whom a benefit is payable under the Plan is unable to care for his affairs
because of any disability or infirmity and no legal guardian of such person’s estate has been
appointed, any payment due may be paid to the spouse, a child, a parent, a sibling, or to any
person deemed by the Committee to have incurred expense for such person otherwise to the spouse, a
child, a parent, a sibling, or to any person deemed by the Committee to have incurred expense for
such person otherwise entitled to payment. Any such payment so made shall be a complete discharge
of any liability therefore under the Plan. If a guardian of the estate of any person receiving or
claiming benefits under the Plan shall be appointed by a court of competent jurisdiction, benefit
payments shall be made to such guardian, provided proper proof of appointment and continuing
qualification is furnished in the form and manner acceptable to the Committee. Any such payment so
made shall be a complete discharge of any liability therefore under the Plan.

11

 

     8.10. Severability. If any provision of the Plan is held invalid or illegal for any
reason, any illegality or invalidity shall not affect the remaining provisions of the Plan, and the
Plan shall be construed and enforced as if the illegal or invalid provision had never been
contained therein. The Company shall have the privilege and opportunity to correct and remedy such
questions of illegality or invalidity by amendment.

     8.11. Governing Law. The Plan shall be governed and construed in accordance with the
laws of the State of Delaware, except to the extent such laws are preempted by ERISA.

     IN WITNESS WHEREOF, Tronox Incorporated has caused this Plan to be duly adopted and executed
effective as of March 30, 2006.

	 	 	 	 	 
	 	TRONOX INCORPORATED

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	MARY MIKKELSON      	 
	 	 	Senior Vice President and CFO,
 Chairman of the Benefits Committee 	 
	 

Attest:

	 	 	 
	/s/ Roger G. Addison
 

ROGER G. ADDISON

	 	 
	Vice President, General Counsel
	 	 
	and Secretary
	 	 

12

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