Document:

FORM OF TAX SHARING AND INDEMNIFICATION AGREEMENT

 EXHIBIT 10.2 
  
 FORM OF 
  
 TAX SHARING AND INDEMNIFICATION AGREEMENT 
  
 This Tax Sharing and Indemnification Agreement (this “Agreement”) is entered into as of the Distribution Date by and between Texas
Industries, Inc., a Delaware corporation (“Distributing”), on behalf of itself and each Distributing Affiliate, and Chaparral Steel Company, a Delaware corporation (“Controlled”), and their respective successors.

  
 RECITALS 
  
 WHEREAS, Distributing is the common parent of an affiliated group of
corporations within the meaning of section 1504(a) of the Code, and currently files consolidated income Tax Returns with the Controlled Affiliates and the Distributing Affiliates; 
  
 WHEREAS, Distributing, along with Distributing Affiliates, conducts the cement, aggregate and concrete products business,
which consists of cement production facilities, sand and gravel and other aggregate operations, and ready-mix concrete operations (the “Cement Business”); 
  
 WHEREAS, Controlled, a first-tier subsidiary of Distributing, along with Controlled Affiliates, conducts the steel products
business, which manufactures structural steel products and steel bar products, as more fully described in the Form 10 filed with the Securities and Exchange Commission on March 5, 2005 (the “Steel Business”); 
  
 WHEREAS, Distributing has agreed to transfer and assign, or cause to be
transferred and assigned, to Controlled all of the assets and liabilities of, and Subsidiaries that conduct, the Steel Business (the “Contribution”) pursuant to that certain Separation and Distribution Agreement dated
                                , 2005 (the “Separation
Agreement”); 
  
 WHEREAS, the Board of Directors of
Distributing has determined that it would be advisable and in the best interests of Distributing and its shareholders for Distributing to distribute on a pro rata basis to the holders of record of Distributing common stock, par value $1.00 per
share, without any consideration being paid by such holders, all of the outstanding shares of Controlled common stock, par value $0.01 per share, owned directly by Distributing (the “Distribution”); 
  
 WHEREAS, as part of the Contribution and Distribution, Controlled will
declare and pay an approximate $341 million cash dividend to TXI, which TXI will use to pay its unrelated creditors (the “Dividend”); 
  
 WHEREAS, Distributing and Controlled intend that the Contribution and the Distribution qualify as tax-free to Distributing and its shareholders under
sections 355, 361 and 368(a)(1)(D) of the Code; 
  
 WHEREAS,
Distributing, the Controlled Affiliates, and the Distributing Affiliates are parties to a tax sharing policy (the “Existing Tax Sharing Agreement”), which currently governs the parties’ respective responsibilities for Taxes;

  
 WHEREAS, pursuant to the Distribution, the Controlled
Affiliates will cease to be members of the Distributing Consolidated Group; 
  
 WHEREAS, the parties hereto are entering into this Agreement: to ensure the tax-free status of the Contribution and the Distribution; to provide certain indemnities; and to provide for various administrative matters
relating to Taxes, including: (1) the preparation and filing of Tax Returns along with the payment of Taxes due and payable thereon; (2) the retention and maintenance of relevant records necessary to prepare and file appropriate Tax Returns, as well
as the provision for appropriate access to those records by the parties to this Agreement; (3) the conduct of audits, examinations, and proceedings by appropriate governmental entities that could result in a redetermination of Taxes; and (4) the
cooperation of all parties with one another in order to fulfill their duties and responsibilities under this Agreement and under the Code and other applicable law; 

 WHEREAS, the parties desire to set forth their respective responsibilities for Taxes, including any Taxes
that could be incurred in connection with the Distribution; and 
  
 WHEREAS, the parties hereto intend to incorporate the principles from the Existing Tax Sharing Agreement into this Agreement. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the foregoing and the mutual promises, covenants and agreements set forth below, the parties do hereby agree as
follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 Unless otherwise defined in this Agreement, capitalized terms shall have the meanings ascribed thereto in the Separation Agreement. As used in this
Agreement, the following terms shall have the following meanings: 
  
 1.1. “Adjustment” means any proposed or final change in the taxable income or Tax Liability of a taxpayer by a Taxing Authority. 
  
 1.2. “Affiliate” means, when used with respect to a specified Person, another Person that directly, or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with such Person. 
  
 1.3. “Agreement” has the meaning set forth in the Preamble to this Agreement. 
  
 1.4. “Cement Business” has the meaning set forth in the Recitals to this Agreement. 
  
 1.5. “Code” means the Internal Revenue Code of 1986, as
amended. 
  
 1.6. “Combined State Tax” means,
with respect to each United States state or local taxing jurisdiction, any income, franchise or similar tax payable to such state or local taxing jurisdiction in which any Controlled Affiliate files Returns with a Distributing Affiliate, on a
consolidated, combined or unitary basis for purposes of such Tax. 
  
 1.7. “Combined State Tax Return” means any Return with respect to any Combined State Tax that includes any Pre-Distribution Tax Period. 
  
 1.8. “Contribution” has the meaning set forth in the Recitals to this Agreement and includes
Distributing’s receipt of the Dividend. 
  
 1.9.
“Controlled” has the meaning set forth in the Preamble to this Agreement. 
  
 1.10. “Controlled Affiliate” means Controlled and any Affiliate of Controlled after the Distribution Date. 
  
 1.11. “Controlled Change in Control Tax” means any Tax imposed by reason of Code section 355(e) or any comparable provision of state or
local law as a result of one or more persons acquiring, directly or indirectly, stock representing a 50% or greater interest in Controlled or a successor to Controlled. 
  
 1.12. “Controlled Indemnified Party” is defined at Section 7.2. 
  

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 1.13. “Controlled Indemnifying Parties” is defined at Section 7.1. 
  
 1.14. “Controlled Separate Return” means any state or local
Tax Return of any Controlled Affiliate, other than any Combined State Tax Return, that includes any Pre-Distribution Tax Period. 
  
 1.15. “Controlled Separate Tax Liability” means an amount equal to the Tax Liability that Controlled and each Controlled Affiliate would
have incurred if they had filed a consolidated return, combined return or a separate return, as the case may be, separate from the members of the Distributing Consolidated Group, for the relevant Tax period, and such amount shall be computed by
Distributing in a manner consistent with the Existing Tax Sharing Agreement. 
  
 1.16. “Designated Officers” is defined at Section 9.1(b). 
  
 1.17. “Disputes” is defined at Section 9.1(a). 
  

1.18. “Distributing” has the meaning set forth in the Preamble to this Agreement. 
  
 1.19. “Distributing Affiliate” means Distributing and any
Affiliate of Distributing (other than a Controlled Affiliate) before, on or after the Distribution Date, as applicable. 
  
 1.20. “Distributing Consolidated Group” means the group of companies filing a consolidated Federal Tax Return or Combined State Tax
Return, as the case may be, that includes Distributing. 
  
 1.21.
“Distributing Consolidated Return” means any consolidated Federal Tax Return or Combined State Tax Return of the Distributing Consolidated Group that includes any Pre-Distribution Tax Period. 
  
 1.22. “Distributing Indemnified Party” is defined at Section
7.1. 
  
 1.23. “Distributing Indemnifying
Parties” is defined at Section 7.2. 
  
 1.24.
“Distribution” has the meaning set forth in the Recitals to this Agreement. 
  
 1.25. “Distribution Date” has the meaning set forth in the Separation Agreement. 
  
 1.26. “Dividend” has the meaning set forth in the Recitals to this Agreement. 
  
 1.27. “Existing Tax Sharing Agreement” has the meaning set
forth in the Recitals to this Agreement. 
  
 1.28.
“Federal Tax” means any Tax imposed under the Code, including any interest, penalty or other additions to Tax imposed under Subtitle F of the Code. 
  
 1.29. “Federal Tax Return” means any Return with respect to any Federal Taxes that includes any
Pre-Distribution Tax Period. 
  
 1.30. “Final
Determination” means the final resolution of any Tax matter. A Final Determination shall result from the first to occur of: 
  
 (a) the expiration of 30 days after the IRS’s acceptance of a Waiver of Restrictions on Assessment and Collection of Deficiency in
Tax and Acceptance of Overassessment on Form 870 or 870-AD (or any successor comparable form) (the “Waiver”), except as to reserved matters specified therein, or the expiration of 30 days after acceptance by any other Taxing
Authority of a comparable agreement or form under the laws of any other jurisdiction, including state, local, and foreign jurisdictions; unless, within such period, the taxpayer gives notice to the other party to this Agreement of the
taxpayer’s intention to attempt to recover all or part of any amount paid pursuant to the Waiver by the filing of a timely claim for refund; 
  

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 (b) a decision, judgment, decree, or other order by a court of competent jurisdiction
that is not subject to further judicial review (by appeal or otherwise) and that has become final; 
  
 (c) the execution of a closing agreement under Code section 7121, or the acceptance by the IRS of an offer in compromise under Code
section 7122, or comparable agreements under the laws of any other jurisdiction, including state, local, and foreign jurisdictions; except as to reserved matters specified therein; 
  
 (d) the expiration of the time for filing a claim for refund or for instituting suit in respect of a claim
for refund that was disallowed in whole or part by the IRS or any other Taxing Authority; 
  
 (e) the expiration of the applicable statute of limitations; or 
  
 (f) an agreement by the parties hereto that a Final Determination has been made. 
  
 1.31. “Indemnified Liability” is defined at Section 7.3.

  
 1.32. “Indemnified Parties” is defined at
Section 7.2. 
  
 1.33. “Indemnifying Parties” is
defined at Section 7.2. 
  
 1.34. “Initial Mediation
Period” is defined at Section 9.1(b). 
  
 1.35.
“IRS” means the Internal Revenue Service. 
  
 1.36. “IRS Interest Rate” means the rate of interest imposed from time to time on underpayments of income tax pursuant to Code section 6621(a)(2). 
  
 1.37. “Opinion Documents” means (i) the Spin-Off Opinion, (ii) the officer’s certificates issued by
Distributing and Controlled to Thompson & Knight LLP in connection with the Spin-Off Opinion and (iii) all other documents provided by Distributing and Controlled to Thompson & Knight LLP and on which Thompson & Knight LLP relied in
issuing the Spin-Off Opinion. 
  
 1.38. “Person”
means any natural person, corporation, business trust, joint venture, association, company, partnership, or government or any agency or political subdivision thereof. 
  
 1.39. “Post-Distribution Tax Period” means (i) any tax period ending after the Distribution Date, and (ii)
with respect to a tax period that begins on or before the Distribution Date and ends after the Distribution Date, such portion of the tax period that begins on the day after the Distribution Date. 
  
 1.40. “Pre-Distribution Tax Period” means (i) any tax period
beginning and ending before or on the Distribution Date, and (ii) with respect to a tax period that begins on or before and ends after the Distribution Date, such portion of the tax period that begins before the Distribution Date and ends at the
close of the Distribution Date. 
  
 1.40A. “Private Letter
Ruling” means a private letter ruling from the IRS to the effect that a transaction does not prevent the Contribution or the Distribution from qualifying for tax-free treatment for Distributing or its shareholders under Code
Sections 355, 361 or 368(a)(1)(D) and any other applicable sections of the Code, assuming that the Distribution would have qualified for tax-free treatment if such transaction did not occur, which ruling is in form and substance reasonably
satisfactory to Distributing, Such a ruling may rely upon, and may assume the accuracy of, any representations given in any Opinion Document, and any customary representations or assumptions. 
  
 1.41. “Proceeding” is defined at Section 8.2(a). 

 
 1.42. “Return” means any return, declaration, report,
claim for refund, or information or return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
  

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 1.43. “Separation Agreement” has the meaning set forth in the Recitals to this
Agreement. 
  
 1.44. “Separation Tax” means any
Tax (other than any Controlled Change in Control Tax) imposed on any Distributing Affiliate or Controlled Affiliate in connection with the Contribution and Distribution that would not have occurred had the Contribution and Distribution not occurred.

  
 1.45. “Spin-Off Opinion” means the opinion
received from Thompson & Knight LLP to the effect that the Distribution and the Contribution will qualify as tax-free to Distributing and its shareholders under sections 355, 361 and 368(a)(1)(D) of the Code. 
  
 1.46. “Steel Business” has the meaning set forth in the
Recitals to this Agreement. 
  
 1.47.
“Subsidiary” means with respect to Distributing or Controlled, any Person of which Distributing or Controlled, respectively, controls or owns, directly or indirectly, more than 50% of the stock or other equity interest entitled to
vote on the election of members to the board of directors or similar governing body. 
  
 1.48. “Substantial Negotiations” means discussions of significant economic terms (for example, the exchange ratio in a merger) by one or more officers, directors, or controlling shareholders of any
Distributing Affiliate or Controlled Affiliate or another person or persons with the implicit or explicit permission of one or more officers, directors, or controlling shareholders of any Distributing Affiliate or Controlled Affiliate. 

 
 1.49. “Tax Asset” means any Tax Item that may have the
effect of producing a Tax Benefit. 
  
 1.50. “Tax
Benefit” means a reduction in the Tax Liability of a taxpayer (whether a Distributing Affiliate or a Controlled Affiliate) for any taxable period. Except as otherwise provided in this Agreement, a Tax Benefit shall be deemed to have been
realized or received from a Tax Item in a taxable period only if and to the extent that the Tax Liability of the taxpayer for such period, after taking into account the effect of the Tax Item on the Tax Liability of such taxpayer in all prior
periods, is less than it would have been if such Tax Liability were determined without regard to such Tax Item. 
  
 1.51. “Taxes” means all federal, state, local and foreign gross or net income, gross receipts, withholding, payroll, franchise, transfer,
sales, use, value added, estimated or other taxes of any kind whatsoever or similar charges and assessments, including all interest, penalties and additions imposed with respect to such amounts which any Distributing Affiliate or any Controlled
Affiliate is required to pay, collect or withhold, together with any interest and any penalties, additions or additional amounts imposed with respect thereto, and “Tax” means any of the Taxes. 
  
 1.52. “Taxing Authority” means the IRS or any other
governmental authority or any subdivision, agency, commission or authority thereof or any quasi-governmental or private body having jurisdiction pursuant to applicable law over the assessment, determination, collection or imposition of any Tax.

  
 1.53. “Tax Item” means any item of income,
gain, loss, deduction, credit, recapture of credit, or any other item (including basis) which may have the effect of increasing or decreasing Taxes paid or payable. 
  
 1.54. “Tax Liability” means the net amount of Taxes due and paid or payable for any taxable period,
determined after applying all tax credits and all applicable carrybacks or carryovers for net operating losses, net capital losses, unused general business tax credits, or any other Tax Items arising from a prior or subsequent taxable period, and
all other relevant adjustments. 
  
 1.55. “Tax
Returns” means all reports, estimates, declarations of estimated tax, information statements and returns relating to, or required to be filed in connection with any Taxes, including information returns or reports with respect to backup
withholding and other payments to third parties. 
  
 1.56.
“Unqualified Tax Opinion” means an unqualified “will” opinion of tax counsel to the effect that a transaction does not prevent the Contribution or the Distribution from qualifying for tax-free treatment for 

  

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Distributing or its shareholders under Code sections 355, 361 or 368(a)(1)(D) and any other applicable sections of the Code, assuming that the Distribution
would have qualified for tax-free treatment if such transaction did not occur, which opinion is in form and substance reasonably satisfactory to Distributing. An Unqualified Tax Opinion may rely upon, and may assume the accuracy of, any
representations given in any Opinion Document, and any customary representations contained in an officer’s certificate delivered by an officer of Distributing or Controlled to such counsel. 
  
 ARTICLE II 
 PREPARATION AND FILING OF TAX RETURNS. 
  
 2.1. Designation of Agent. With regard to each Distributing Consolidated Return, each Controlled Affiliate hereby irrevocably authorizes and designates Distributing as its agent, coordinator, and administrator,
for the purpose of taking any and all actions (including the execution of waivers of applicable statutes of limitation) necessary or incidental to the filing of any such Tax Return or other Tax proceedings, and for the purpose of making payments to,
or collecting refunds from, any Taxing Authority, provided that Controlled may continue to participate in any such Tax proceedings as provided herein. 
  
 2.2. Distributing Consolidated Returns. Distributing will prepare all Distributing Consolidated Returns. Distributing shall have the exclusive
right to (a) file, prosecute, compromise, or settle any claim for refund, and (b) determine whether any refunds to which the Distributing Consolidated Group may be entitled shall be received by way of refund or credit against the Tax Liability of
the Distributing Consolidated Group. 
  
 2.3. Taxable Period
Ends on Distribution Date. Unless prohibited by applicable law, any taxable period of any Controlled Affiliate that is included in a Distributing Consolidated Return that includes the Distribution Date shall end on the Distribution Date.

  
 2.4. Allocation. Unless Distributing and
Controlled agree otherwise, the taxable year of each Controlled Affiliate shall be treated for all Tax purposes as ending on the Distribution Date, and no alternative method of allocating Tax Items of a Controlled Affiliate for the tax period
including the Distribution shall be used.  
  
 2.5.
Controlled Separate Returns. Controlled shall be solely responsible for the preparation and filing of all Controlled Separate Returns. Controlled shall be responsible for paying to the applicable Taxing Authorities all Taxes shown as due from
any Controlled Affiliate on the Controlled Separate Returns. 
  
 2.6. Post-Distribution Conduct of Controlled. On or after the Distribution Date, Controlled will not, nor will it permit any Controlled Affiliate to, make or change any accounting method, change its taxable year, amend any Return or
take any Tax position on any Return, take any other action, omit to take any action, or enter into any transaction, that may reasonably be expected to result in, or does result in, any increased Tax Liability or reduction of any Tax Asset of the
Distributing Consolidated Group or any Distributing Affiliate. 
  
 ARTICLE III 
 TAX SHARING 
  
 3.1. Controlled’s Liability for Taxes. Controlled and each Controlled Affiliate shall be jointly and severally liable for the following Taxes,
and shall be entitled to receive and retain all refunds of Taxes previously incurred by Controlled or the Steel Business with respect to such Taxes: 
  
 (a) all Taxes incurred with respect to all Distributing Consolidated Returns to the extent that such Taxes are related to (i) a Controlled
Separate Tax Liability or (ii) the Steel Business for any taxable period; 
  
 (b) all Taxes related to Controlled Separate Returns as provided for in Section 2.5 of this Agreement; and 
  

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 (c) all Taxes incurred with respect to Controlled and any Controlled Affiliate for any
Post-Distribution Tax Period. 
  
 3.2. Distributing’s
Liability for Taxes. Distributing and each Distributing Affiliate shall be jointly and severally liable for the following Taxes, and shall be entitled to receive and retain all refunds of Taxes previously incurred by Distributing with respect to
such Taxes: 
  
 (a) except as provided for in
Section 3.1(a), all Taxes incurred with respect to all Distributing Consolidated Returns; and 
  
 (b) all Taxes incurred with respect to Distributing and any Distributing Affiliate for any Post-Distribution Tax Period. 
  
 3.3. Adjustments. If any Tax Return is examined by a Taxing
Authority and an Adjustment results from such examination, liability for Taxes arising from such Adjustment shall be borne by the responsible party as determined under Sections 3.1 and 3.2 of this Agreement, provided, however, that if the Adjustment
that results in additional Tax Liability to one party also results in a Tax Benefit to the other party, the party receiving such Tax Benefit, to the extent it is equal to or less than the other party’s additional Tax Liability, shall pay such
Tax Benefit to the other party within 30 days after such Tax Benefit is realized. 
  
 Promptly after the giving of notice by the party having the Adjustment that results in additional Tax Liability, the other party shall make a claim for any Tax Benefit resulting from such Adjustment, on an amended Tax
Return or in a formal or informal claim filed with the IRS, unless otherwise agreed by the parties. If an Adjustment could be governed by both this Section 3.3 and Articles VII or VIII, those Articles will take precedence over this Section 3.3.

  
 3.4. Separation Taxes. Notwithstanding anything in this
Agreement to the contrary, Controlled shall indemnify and hold harmless each Distributing Affiliate against liability for (i) any Controlled Change in Control Tax and (ii) any Separation Tax for which Controlled or its Affiliates has an obligation
to indemnify Distributing under any other provision of this Agreement. Distributing shall indemnify and hold harmless each Controlled Affiliate against liability for all other Separation Taxes. 
  
 ARTICLE IV 
 COOPERATION AND EXCHANGE OF INFORMATION; AUDITS AND ADJUSTMENTS 
  
 4.1. Tax Return Information. 
  
 (a) Controlled shall, and shall cause each appropriate Controlled Affiliate to, provide Distributing with all information and other
assistance reasonably requested by Distributing to enable the Distributing Affiliates to prepare and file Distributing Consolidated Returns required to be filed by them pursuant to this Agreement. 
  
 (b) Distributing shall, and shall cause each appropriate
Distributing Affiliate to, provide Controlled with all information and other assistance reasonably requested by Controlled to enable the Controlled Affiliates to prepare and file Controlled Separate Returns required to be filed by them pursuant to
this Agreement. 
  
 4.2. Audits and Adjustments.

  
 (a) Whenever a Distributing Affiliate or
Controlled Affiliate receives in writing from the IRS or any other Taxing Authority notice of an Adjustment that may give rise to a payment from the other party under this Agreement or otherwise affect the other party’s Taxes, Distributing or
Controlled, as the case may be, shall give written notice of the Adjustment to the other party in accordance with the terms of Article VIII. The audit shall be controlled and settled pursuant to the terms of that article. 
  

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 (b) Controlled agrees to cooperate reasonably, and shall cause each Controlled Affiliate
to cooperate reasonably, with Distributing in the negotiation, settlement, or litigation of any liability for Taxes of any Distributing Affiliate. 
  
 (c) Distributing agrees to cooperate reasonably, and to cause each Distributing Affiliate to cooperate reasonably, with Controlled in the
negotiation, settlement, or litigation of any liability for Taxes of any Controlled Affiliate. 
  
 (d) Distributing will reasonably promptly notify Controlled in writing of any Adjustment involving a change in the tax basis of any asset
of any Controlled Affiliate, specifying the nature of the change so that such Controlled Affiliate will be able to reflect the revised basis on its tax books and records for periods beginning on or after the Distribution Date. 
  
 4.3. Controlled Carrybacks. Whenever permitted to do so by applicable
law, and unless agreed otherwise by Distributing, Controlled shall elect to relinquish any carryback period which would include any Pre-Distribution Tax Period. 
  

For purposes of this Article IV, the term “party’ shall refer to any Distributing Affiliate and any Controlled Affiliate, as the case may be.

  
 ARTICLE V 
 RETENTION OF RECORDS 
  
 5.1. Retention of Records. Distributing and Controlled agree to retain the appropriate records that may affect the determination of the liability
for Taxes of any Controlled Affiliate or Distributing Affiliate, respectively, until such time as there has been a Final Determination with respect to such liability for Taxes. A party may satisfy its obligations under the preceding sentence by
allowing the other party to duplicate records at such second party’s request and expense. 
  
 5.2. Statute of Limitations. Distributing and Controlled will notify each other in writing of any waivers or extensions of the applicable statute of limitations that may affect the period for which any
materials, records, or documents must be retained. 
  
 ARTICLE VI

 COVENANTS 
  
 6.1. Distributing Covenants. Distributing covenants to Controlled that no Distributing Affiliate will take any action or fail to take any action
that would cause the Contribution or the Distribution to fail to qualify as tax-free under Code sections 355, 361 and 368(a)(1)(D) or any corresponding provision of state or local law. Without limiting the foregoing, Distributing covenants to
Controlled that: 
  
 (a) During the six-month
period following the Distribution Date, no Distributing Affiliate will liquidate, merge, or consolidate with any Person or enter into any Substantial Negotiations, agreements, understandings, or arrangements with respect to any such transaction.

  
 (b) During the six-month period following the
Distribution Date, no Distributing Affiliate will sell, exchange, distribute, or otherwise dispose of assets to any Person or enter into any Substantial Negotiations, agreements, understandings, or arrangements with respect to any such transaction,
except in the ordinary course of business. 
  
 (c) Following the Distribution, Distributing and its Subsidiaries will, for at least two years, continue the active conduct of the Cement Business. 
  

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 (d) No Distributing Affiliate will take any action inconsistent with the information and
representations in the Opinion Documents. 
  
 (e)
No Distributing Affiliate will repurchase stock of Distributing in a manner contrary to the requirements of Revenue Procedure 96-30 or in a manner contrary to the representations made in the Opinion Documents. 
  
 (f) No Distributing Affiliate will permit its agents to take
any of the actions described in items (a) through (e) above on its behalf. 
  
 6.2. Controlled Covenants. Controlled covenants to Distributing that no Controlled Affiliate will take any action or fail to take any action, which action or failure to act would cause the Contribution or the
Distribution to fail to qualify as tax-free under sections 355, 361 and 368(a)(1)(D) of the Code or any corresponding provision of state or local law. Without limiting the foregoing, Controlled covenants to Distributing that: 
  
 (a) During the six-month period following the Distribution
Date, no Controlled Affiliate will liquidate, merge, or consolidate with any Person, or enter into any Substantial Negotiations, agreements, understandings, or arrangements with respect to any such transaction. 
  
 (b) During the six-month period following the Distribution
Date, no Controlled Affiliate will sell, exchange, distribute, or otherwise dispose of assets to any Person, or enter into any Substantial Negotiations, agreements, understandings, or arrangements with respect to any such transaction, except in the
ordinary course of business. 
  
 (c) Following
the Distribution, Controlled and its Subsidiaries will, for a minimum of two years, continue the active conduct of the Steel Business. 
  
 (d) No Controlled Affiliate will take any action inconsistent with the information and representations in the Opinion Documents.

  
 (e) No Controlled Affiliate will repurchase
stock of Controlled in a manner contrary to the requirements of Revenue Procedure 96-30 or in a manner contrary to the representations made in the Opinion Documents. 
  
 (f) No Controlled Affiliate will permit its agents to take any of the actions described in items (a) through
(e) above on its behalf. 
  
 6.3. Exceptions. Any
Distributing Affiliate or Controlled Affiliate may take actions inconsistent with the covenants contained in Article VI if Distributing or Controlled, as the case may be, obtains an Unqualified Tax Opinion or a Private Letter Ruling, it being
understood that each party hereto agrees to cooperate with the party seeking such opinion or ruling and to use its reasonable best efforts to assist the party seeking such opinion or ruling in its attempting to obtain, as expeditiously as possible,
any opinion described in this Section 6.3. 
  
 ARTICLE VII

 INDEMNITY OBLIGATIONS 
  
 7.1. Controlled Indemnity. Each Controlled Affiliate (collectively, jointly and severally, the “Controlled Indemnifying Parties”)
will jointly and severally indemnify each Distributing Affiliate (each a “Distributing Indemnified Party”) against and hold them harmless from: 
  
 (a) any Tax incurred with respect to all Distributing Consolidated Returns to the extent that such Taxes are
related to (i) a Controlled Separate Tax Liability or (ii) the Steel Business for any taxable period, but excluding (for purposes of this Section 7.1(a)) any Separation Taxes; 
  

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 (b) any separate state and local Tax of any Controlled Affiliate; 
  
 (c) any Separation Taxes resulting from a breach by a
Controlled Indemnifying Party of (i) any representation or covenant in an Opinion Document (as such representation is modified, qualified or elaborated in any subsequent Opinion Document), (ii) any representation, covenant or other agreement set
forth in this Agreement, or (iii) any agreements or covenants between a Distributing Affiliate and a Controlled Affiliate pertaining to Tax matters; 
  
 (d) any Controlled Change in Control Tax; 
  
 (e) any Tax Liability arising from an Adjustment for which Controlled is responsible under Section 3.3; 
  
 (f) any Tax imposed on a Distributing Affiliate as a result
of Controlled’s failure to cooperate with Distributing under Article VIII; and 
  
 (g) any Tax imposed on a Distributing Affiliate resulting from Controlled’s adoption of a position inconsistent with the allocation
set out in Section 2.4. 
  
 7.2. Distributing Indemnity.
Each Distributing Affiliate (collectively, jointly and severally, the “Distributing Indemnifying Parties” and, together with Controlled Indemnifying Parties, the “Indemnifying Parties”) will jointly and severally
indemnify each Controlled Affiliate (each a “Controlled Indemnified Party” and, together with the Distributing Indemnified Parties, the “Indemnified Parties”) against and hold them harmless from: 
  
 (a) any Distributing Consolidated Group Taxes, excluding any
such Taxes for which Controlled is required to indemnify Distributing under Section 7.1 of this Agreement, and (for purposes of this Section 7.2) any Separation Taxes; 
  
 (b) any separate state or local Tax and any foreign Tax of any Distributing Affiliate; 
  
 (c) any liability or damage arising from the breach by any
Distributing Affiliate of (i) any representation or covenant in an Opinion Document (as such representation is modified, qualified or elaborated in any subsequent Opinion Document), (ii) any representation, covenant or other agreement set forth in
this Agreement, or (iii) any agreements or covenants between a Distributing Affiliate and a Controlled Affiliate pertaining to Tax matters; 
  
 (d) any Separation Taxes (other than such Taxes for which Controlled is required to indemnify Distributing under Section 7.1); 

 
 (e) any Tax liability arising from an Adjustment for
which Distributing is responsible under Section 3.3; and 
  
 (f) any Tax imposed on a Controlled Affiliate (other than a Separation Tax) as a result of Distributing’s failure to cooperate with Controlled under Article VIII. 
  
 7.3. Amount of Indemnity. The amount of Tax included in any item
described in Section 7.1 or 7.2 (each an “Indemnified Liability”) that is incurred by any Indemnified Party shall, in the case of a Tax based or determined with reference to income for any year, be the difference between (x) the
actual Tax incurred by the Indemnified Party for such year and (y) the amount of Tax that the Indemnified Party would have paid in such year absent the Tax Items (or adjustments thereto) in that year or any prior year giving rise to the Indemnified
Liability. For the avoidance of doubt, if an adjustment to any Tax Item would have resulted in additional Tax paid but for the availability of net operating losses or tax credits, the Indemnifying Party shall indemnify the Indemnified Party when,
as, and to the extent that such loss or credit carryforward would otherwise have been available to reduce any Tax. 
  

 Page 10 

 7.4. Tax Consequences of Payments. All amounts payable under this Agreement shall be treated as
adjustments to the amount of the Contribution, provided that if any Taxing Authority determines that the amounts received by an Indemnified Party nevertheless are taxable, then the Indemnifying Party shall make additional payments to the Indemnified
Party so that the Indemnified Party is made whole on an after-tax basis. For this purpose, the amount of Taxes imposed on the payments shall be determined based on the taxing jurisdiction’s highest marginal Tax rate applicable to taxable income
of corporations such as the Indemnified Party on income of the character subject to tax and indemnified against under this Article VII for the taxable period in which the Distribution occurs (net of any federal Tax Benefit from state and local
Taxes). 
  
 ARTICLE VIII 
 PROCEDURAL ASPECTS OF INDEMNITY 
  
 8.1. General. 
  
 (a) If either any Indemnified Party or any Indemnifying Party receives any written notice of deficiency, claim or adjustment or any other
written communication from any Taxing Authority that may result in an Indemnified Liability, the party receiving such notice or communication shall promptly give written notice thereof to the other party, provided that any delay by an Indemnified
Party in so notifying an Indemnifying Party shall not relieve the Indemnifying Party of any liability hereunder, except to the extent (i) such delay restricts the ability of the Indemnifying Party to contest the resulting Indemnified Liability
administratively or in the courts in accordance with section 8.2 and (ii) the Indemnifying Party is materially and adversely prejudiced by the delay. 
  
 (b) The parties hereto undertake and agree that from and after such time as they obtain knowledge that any representative of a Taxing
Authority has begun to investigate or inquire into the Distribution (whether or not such investigation or inquiry is a formal or informal investigation or inquiry), the party obtaining such knowledge shall (i) notify the other party thereof,
provided that any delay by an Indemnified Party in so notifying an Indemnifying Party shall not relieve the Indemnifying Party of any liability hereunder (except to the extent (A) such delay restricts the ability of the Indemnifying Party to contest
the resulting Indemnified Liability administratively or in the courts in accordance with section 8.2 and (B) the Indemnifying Party is materially and adversely prejudiced by such delay), (ii) consult with the other party from time to time as to the
conduct of such investigation or inquiry, (iii) provide the other party with copies of all correspondence with such Taxing Authority or any representative thereof pertaining to such investigation or inquiry, and (iv) arrange for a representative of
the other party to be present at all meetings with such Taxing Authority or any representative thereof pertaining to such investigation or inquiry. 
  
 8.2. Contests. 
  
 (a) Provided that (i) an Indemnifying Party shall furnish the Indemnified Party with evidence reasonably satisfactory to the Indemnified
Party of the Indemnifying Party’s ability to pay the full amount of the Indemnified Liability and (ii) such Indemnifying Party acknowledges in writing that the asserted liability is an Indemnified Liability, such Indemnifying Party may assume
and direct the defense or settlement of any tax examination, administrative appeal, hearing, arbitration, suit or other proceeding (each a “Proceeding”) commenced, filed or otherwise initiated or convened to investigate or resolve
the existence and extent of such liability. 
  
 (b) If the Indemnified Liability is grouped with other unrelated asserted liabilities or issues in the Proceeding, the parties shall use their respective best efforts to cause the Indemnified Liability to be the subject of a separate
proceeding. If such severance is not possible, the Indemnifying Party shall assume and direct and be responsible only for the matters relating to the Indemnified Liability. The Indemnified Party may settle, partially settle, or otherwise resolve any
controversy involving the Indemnified Party’s Tax Return to 

  

 Page 11 

 
which the particular Adjustment relates, so long as the Indemnified Party does not settle, partially settle, or otherwise resolve the controversy in a manner
inconsistent with the Indemnifying Party’s position, without prior written consent, which may not be unreasonably withheld, from the Indemnifying Party. 
  

(c) Notwithstanding the foregoing, if at any time during a Proceeding controlled by an Indemnifying Party pursuant to Section 8.2(a)
such Indemnifying Party fails to provide evidence reasonably satisfactory to the Indemnified Party of its ability to pay the full amount of the Indemnified Liability or the Indemnified Party reasonably determines, after due investigation, that such
Indemnifying Party could not pay the full amount of the Indemnified Liability, then the Indemnified Party may assume control of the Proceedings after the expiration of seven (7) days after the giving of written notice to the Indemnifying Party
notifying such party of the Indemnified Party’s intent to assume control of the Proceedings. 
  
 (d) In addition to amounts referred to in Section 7.1 or Section 7.2, an Indemnifying Party shall pay all reasonable out-of-pocket
expenses and other costs related to the Indemnified Liability, including but not limited to fees for attorneys, accountants, expert witnesses or other consultants retained by such Indemnifying Party and/or the Indemnified Party. To the extent that
any such expenses and other costs have been or are paid by an Indemnified Party, the Indemnifying Party shall promptly reimburse the Indemnified Party therefor. 
  
 (e) An Indemnifying Party shall not pay (unless otherwise required by a proper notice of levy and after
prompt notification to the Indemnified Party of receipt of notice and demand for payment), settle, compromise or concede any portion of the Indemnified Liability without the written consent of the Indemnified Party, which consent shall not be
unreasonably withheld. An Indemnifying Party shall, on a timely basis, keep the Indemnified Party informed of all developments in the Proceeding and provide the Indemnified Party with copies of all pleadings, briefs, orders, and other written
papers. 
  
 (f) Any Proceeding that is not
controlled or which is no longer controlled by an Indemnifying Party pursuant to this Section 8.2 shall be controlled and directed exclusively by the Indemnified Party, and any related reasonable out-of-pocket expenses and other costs incurred by
the Indemnified Party, including but not limited to fees for attorneys, accountants, expert witness or other consultants, shall be reimbursed by the Indemnifying Party. An Indemnified Party will not be required to pursue the claim in federal
district court, the Court of Federal Claims or any state or foreign court if, as a prerequisite to such court’s jurisdiction, the Indemnified Party is required to pay the asserted liability, unless the funds necessary to invoke such
jurisdiction are provided by the Indemnifying Party. 
  
 8.3.
Time and Manner of Payment. An Indemnifying Party shall pay to the Indemnified Party the amount of the Indemnified Liability and any expenses or other costs indemnified against (less any amount paid directly by an Indemnifying Party to the
Taxing Authority) no less than seven (7) days prior to the date payment of the Indemnified Liability is to be made to the Taxing Authority. Such payment shall be paid by wire transfer of immediately available funds to an account designated by the
Indemnified Party by written notice given to the Indemnifying Party at least three (3) days prior to the due date of such payment. If an Indemnifying Party delays making payment beyond the due date hereunder, such party shall pay interest on the
amount unpaid at the IRS Interest Rate for each day and the actual number of days for which any amount due hereunder is unpaid. 
  
 8.4. Refunds. In connection with this Agreement, if an Indemnified Party receives a refund in respect of amounts paid by an Indemnifying Party to
any Taxing Authority on its behalf, or should any such amounts that would otherwise be refundable to the Indemnifying Party be applied by the Taxing Authority to obligations of the Indemnified Party unrelated to an Indemnified Liability, then such
Indemnified Party shall, promptly following receipt (or notification of credit), remit such refund and any related interest to such Indemnifying Party. 
  

 Page 12 

 8.5. Cooperation. The parties shall cooperate with one another in a timely manner in any
administrative or judicial proceeding involving any matter that may result in an Indemnified Liability. 
  
 8.6. Affiliates. Distributing agrees and acknowledges that Distributing shall be responsible for the performance of the obligations of each
Distributing Affiliate under this Agreement. Controlled agrees and acknowledges that Controlled shall be responsible for the performance of the obligations of each Controlled Affiliate under this Agreement. 
  
 8.7. Application to Present and Future Subsidiaries. This Agreement is
being entered into by Distributing and Controlled on behalf of themselves and each Distributing Affiliate and each Controlled Affiliate, respectively. This Agreement shall constitute a direct obligation of each such affiliate and shall be deemed to
have been readopted and affirmed on behalf of any corporation or other entity that becomes a Distributing Affiliate or a Controlled Affiliate in the future. 
  
 ARTICLE IX 
 DISPUTE RESOLUTION 
  
 9.1. Disputes. 
  
 (a) Resolution of any and all disputes arising from or in
connection with this Agreement, whether based on contract, tort, statute, or otherwise, including, but not limited to, disputes in connection with claims by third parties (collectively, “Disputes”) shall be subject to the provisions
of this Section 9.1; provided, however, that nothing contained herein shall preclude either party from seeking or obtaining (i) injunctive relief or (ii) equitable or other judicial relief to enforce the provisions hereof or to preserve the status
quo pending resolution of Disputes hereunder. 
  
 (b) Either party may give the other party written notice of any Dispute not resolved in the normal course of business. The parties shall attempt in good faith to resolve any Dispute promptly by negotiation between executives of the parties
who have authority to settle the controversy and who are at a higher level of management than the persons with direct responsibility for administration of this Agreement. Within 30 days after the giving of the notice, the foregoing executives of
both parties shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary for a period not to exceed 15 days, to attempt to resolve the Dispute. All reasonable requests for information made by one
party to the other will be honored. If the parties do not resolve the Dispute within such 15-day period (the “Initial Mediation Period”), the parties shall attempt in good faith to resolve the Dispute by negotiation between (a) in
the case of Distributing, the Chief Financial Officer, and (b) in the case of Controlled, the Chief Financial Officer (collectively, the “Designated Officers”). Such officers shall meet at a mutually acceptable time and place (but
in any event no later than 15 days following the expiration of the Initial Mediation Period) and thereafter as often as they reasonably deem necessary for a period not to exceed 15 days, to attempt to resolve the Dispute. 
  
 (c) If the Dispute has not been resolved by negotiation
within 75 days of the giving of the first party’s notice, or if the parties failed to meet within 30 days of the first party’s giving of notice, or if the Designated Officers failed to meet within 60 days of the first party’s giving
of notice, either party may commence any litigation or other procedure allowed by law. 
  
 ARTICLE X 
 GENERAL 
  

10.1. Term of the Agreement. This Agreement shall become effective as of the Distribution Date, and except as expressly provided herein, shall
continue in full force and effect indefinitely. 
  

 Page 13 

 10.2. Injunctions. The parties acknowledge that irreparable damage would occur in the event that
any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached. The parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement
and to enforce specifically the terms and provisions hereof in any court having jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at law or in equity. 
  
 10.3. Assignment. Neither of the parties may assign or delegate any of
its rights or duties under this Agreement without the prior written consent of the other party, which consent will not be unreasonably withheld. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their
respective successors and permitted assigns. 
  
 10.4. Further
Assurances. Subject to the provisions hereof, the parties hereto shall make, execute, acknowledge and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the
purposes of this Agreement and to consummate the transactions contemplated hereby. Subject to the provisions hereof, each party shall, in connection with entering into this Agreement, performing its obligations hereunder and taking any and all
actions relating hereto, comply with all applicable laws, regulations, orders, and decrees, and promptly provide the other party with all such information as it may reasonably request in order to be able to comply with the provisions of this
sentence. 
  
 10.5. Waivers. No failure or delay on the
part of the parties in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power,
preclude any other or further exercise thereof or the exercise of any other right or power. No modification or waiver of any provision of this Agreement or consent to any departure by the parties therefrom shall in any event be effective unless the
same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. 
  
 10.6. Change of Law. If, due to any change in applicable law, regulation, or interpretation thereof by any court of law or other governing body
having jurisdiction subsequent to the date of this Agreement, performance of any provision of this Agreement or any transaction contemplated hereby shall become impracticable or impossible, the parties hereto shall use their best efforts to find and
employ an alternative means to achieve the same or substantially the same result as that contemplated by such provision. 
  
 10.7. Confidentiality. Subject to any contrary requirement of law and the rights of each party to enforce its rights hereunder in any legal action,
each party agrees that it shall keep strictly confidential, and shall cause its employees and agents to keep strictly confidential, any information that it or any of its employees or agents may require pursuant to, or in the course of performing its
obligations under, any provision of this Agreement. 
  
 10.8.
Headings. Descriptive headings are for convenience only and shall not control or affect the meaning or construction of any provision of this Agreement. 
  

10.9. Counterparts. For the convenience of the parties, any number of counterparts of this Agreement may be executed by the parties hereto, and
each such executed counterpart shall be, and shall be deemed to be, an original instrument. 
  
 10.10. Notices. All notices, requests, claims and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery by
hand, by reputable overnight courier service, by facsimile transmission, or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the addresses (or at such other address for a party as shall be
specified in a notice given in accordance with this Section 10.10) listed below: 
  

			
	 Distributing at:
	    	 Texas Industries, Inc.

	 	    	 1341 W. Mockingbird Lane

	 	    	 Dallas, Texas 75247

	 	    	 Attn: Fred Anderson

	 	    	 Phone: (972) 647-6700

	 	    	 Fax:

  

 Page 14 

			
	 Controlled at:
	    	 Chaparral Steel Company

	 	    	 300 Ward Road

	 	    	 Midlothian, Texas 76065

	 	    	 [Attn:
                    ]

	 	    	 Phone: (972) 775-8241

	 	    	 Fax:

  
 or to such other address as any party
may, from time to time, designate in a written notice delivered in a like manner. Notice delivered by hand shall be deemed given when received by the recipient. Notice delivered by mail as set out above shall be deemed given three (3) business days
after the date the same have been deposited in a United States post office. Notice delivered by reputable overnight courier shall be deemed given on the next following business day after the same have been deposited with a reputable overnight
courier (e.g., Federal Express). Notice given by facsimile transmission shall be deemed given on the day of transmission if such transmission is sent prior to 5:00 P.M. central standard time and if telephone confirmation of receipt is
obtained promptly thereafter. 
  
 10.11. Pre-Distribution
Earnings and Profits. Distributing and Controlled agree to allocate earnings and profits of Distributing between Distributing and Controlled in accordance with Treasury Regulation section 1.312-10. 
  
 10.12. Costs and Expenses. Unless specifically provided herein, each
party agrees to pay its own costs and expenses resulting from the fulfillment of its respective obligations hereunder. 
  
 10.13. Entire Agreement. This Agreement shall constitute the entire agreement between the parties hereto with respect to the subject matter hereof
and shall supersede all prior agreements and undertakings, both written and oral, between the parties with respect to the subject matter hereof and thereof. On or prior to the Distribution Date, all agreements (other than this Agreement) providing
for the allocation or sharing of Taxes to which any Controlled Affiliate would otherwise be bound following the Distribution shall have no further force and effect. 
  
 10.14. Interest on Late Payments. If a party delays making any payment beyond the due date hereunder, such party
shall pay interest on the amount unpaid at the IRS Interest Rate for each day and the actual number of days for which any amount due hereunder is unpaid. 
  
 10.15. Amendments. This Agreement may not be amended or modified except (a) by an instrument in writing signed by, or on behalf of, the parties or
(b) by a waiver in accordance with Section 10.5. 
  
 10.16. No
Third-Party Beneficiaries. This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their respective present and future Subsidiaries, and nothing herein, express or implied, is intended to or shall confer
upon any third parties any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 
  
 10.17. Governing Law and Severability. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas,
including the provisions of such laws relating to conflict of laws. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that
the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. 
  
 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed by their respective officers, each of whom is duly authorized, all as
of the Distribution Date. 
  

 Page 15 

			
	 TEXAS INDUSTRIES, INC.

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 CHAPARRAL STEEL COMPANY

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
  

 Page 16CHAPARRAL STEEL COMPANY 2005 OMNIBUS EQUITY COMPENSATION PLAN

 EXHIBIT 10.3 
  
 FORM OF 
  
 CHAPARRAL STEEL COMPANY 
  
 2005 OMNIBUS EQUITY COMPENSATION PLAN 

 Chaparral Steel Company 
 2005 Omnibus Equity Compensation Plan 
 Table of Contents 
  

					
	 	  	 	  	Page

	 Article 1.
	  	Establishment, Purpose, and Duration	  	1
			
	 Article 2.
	  	Definitions	  	1
			
	 Article 3.
	  	Administration	  	3
			
	 Article 4.
	  	Shares Subject to the Plan and Maximum Awards	  	3
			
	 Article 5.
	  	Eligibility and Participation	  	4
			
	 Article 6.
	  	Stock Options	  	4
			
	 Article 7.
	  	Stock Appreciation Rights	  	6
			
	 Article 8.
	  	Restricted Stock and Restricted Stock Units	  	7
			
	 Article 9.
	  	Performance Units/ Performance Shares	  	8
			
	 Article 10.
	  	Other Stock-Based Awards	  	8
			
	 Article 11.
	  	Non-Employee Director Awards	  	9
			
	 Article 12.
	  	Dividend Equivalents	  	9
			
	 Article 13.
	  	Beneficiary Designation	  	9
			
	 Article 14.
	  	Deferrals	  	9
			
	 Article 15.
	  	Rights of Participants	  	10
			
	 Article 16.
	  	Corporate Events	  	10
			
	 Article 17.
	  	Amendment, Modification, Suspension, and Termination	  	10
			
	 Article 18.
	  	Withholding	  	11
			
	 Article 19.
	  	Successors	  	11
			
	 Article 20.
	  	General Provisions	  	11

  
  

 Chaparral Steel Company 
 2005 Omnibus Equity Compensation Plan 
  
 Article 1. Establishment, Purpose, and Duration 
  
 1.1 Establishment. Chaparral Steel Company, a Delaware corporation (hereinafter referred to as the “Company”), establishes an incentive compensation plan to be known as the 2005 Omnibus
Equity Compensation Plan (hereinafter referred to as the “Plan”), as set forth in this document. 
  
 The Plan permits the grant of Non-Qualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Performance Shares, Performance Units, and Other Stock-Based Awards. 
  
 The Plan shall become effective upon Shareholder approval (the “Effective Date”) and shall remain in effect as provided in Section 1.3 hereof. 
  
 1.2 Purpose of the Plan. The purpose of the Plan is to promote the interests of the Company and
its Shareholders by strengthening the Company’s ability to attract, motivate and retain Employees and Directors of the Company upon whose judgment, initiative and efforts the financial success and growth of the business of the Company largely
depend, and to provide an additional incentive for such individuals through stock ownership and other rights that promote and recognize the financial success and growth of the Company and create value for Shareholders. 
  
 1.3 Duration of the Plan. Unless sooner terminated as
provided herein, the Plan shall terminate ten years from the Effective Date. After the Plan is terminated, no Awards may be granted but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions and
the Plan’s terms and conditions. No Incentive Stock Options may be granted more than ten years after the Effective Date. 
  
 Article 2. Definitions 
  
 Whenever used in the Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word
shall be capitalized. 
  

	 	2.1	“Affiliate” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations of the Exchange Act. 

  

	 	2.2	“Award” means, individually or collectively, a grant under this Plan of Non-Qualified Stock Options, Incentive Stock Options, SARs, Restricted Stock, Restricted
Stock Units, Performance Shares, Performance Units, or Other Stock-Based Awards, in each case subject to the terms of this Plan. 

  

	 	2.3	“Award Agreement” means either (i) a written agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award
granted under this Plan, or (ii) a written statement issued by the Company to a Participant describing the terms and provisions of such Award. 

  

	 	2.4	“Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under
the Exchange Act. 

  

	 	2.5	“Board” or “Board of Directors” means the Board of Directors of the Company. 

  

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

  

	 	2.7	“Committee” means the Compensation Committee of the Board or any other committee designated by the Board to administer this Plan. 

  

	 	2.8.	“Company” means Chaparral Steel Company, a Delaware corporation, and any successor thereto as provided in Article 21 herein. 

  

	 	2.9	“Director” means any individual who is a member of the Board of Directors of the Company. 

  

	 	2.10	“Disability” means total and permanent disability as determined by the Committee. 

  

	 	2.11	“Effective Date” has the meaning set forth in Section 1.1. 

  

	 	2.12	“Employee” means any employee of the Company, its Affiliates and/or Subsidiaries. 

  

	 	2.13	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto. 

  

 1 

	 	2.14	“Fair Market Value” or “FMV” means a price that is based on the opening, closing, actual, high, low, or average selling price of a Share on the New
York Stock Exchange (“NYSE”) or other established stock exchange (or exchanges) on the applicable date, the preceding trading days, the next succeeding trading day, or an average of trading days, as determined by the Committee in its
discretion. Such definition(s) of FMV shall be determined by the Committee at its discretion. If Shares are not traded on an established stock exchange, FMV shall be determined by the Committee based on objective criteria. 

 

	 	2.15	“Freestanding SAR” means a SAR that is granted independently of any Options, as described in Article 7. 

  

	 	2.16	“Grant Price” means the price established at the time of grant of a SAR pursuant to Article 7, used to determine whether there is any payment due upon exercise of
the SAR. 

  

	 	2.17	“Incentive Stock Option” or “ISO” means an Option to purchase Shares granted under Article 6 to an Employee and that is designated as an Incentive
Stock Option and that is intended to meet the requirements of Code Section 422, or any successor provision. 

  

	 	2.18	“Insider” shall mean an individual who is, on the relevant date, an officer, Director, or more than ten percent (10%) Beneficial Owner of any class of the
Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Board in accordance with Section 16 of the Exchange Act. 

  

	 	2.19	“Non-Employee Director” means a Director who is not an Employee. 

  

	 	2.20	“Non-Employee Director Award” means any NQSO, SAR, grant of Restricted Stock or Restricted Stock Unit, or Other Stock-Based Award, whether singly, in combination,
or in tandem, issued to a Participant who is a Non-Employee Director pursuant to such applicable terms, conditions and limitations as the Board may establish in accordance with this Plan. 

  

	 	2.21	“Non-Qualified Stock Option” or “NQSO” means an Option that is not intended to meet the requirements of Code Section 422, or that otherwise does
not meet such requirements. 

  

	 	2.22	“Option” means an Incentive Stock Option or a Non-Qualified Stock Option, as described in Article 6. 

  

	 	2.23	“Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option. 

  

	 	2.24	“Other Stock-Based Award” means an equity-based or equity-related Award not otherwise described by the terms of this Plan, granted pursuant to Article 10.

  

	 	2.25	“Participant” means any eligible person as set forth in Article 5 to whom an Award is granted. 

  

	 	2.26	“Performance Share” means an Award granted to a Participant, as described in Article 9. 

  

	 	2.27	“Performance Unit” means an Award granted to a Participant, as described in Article 9. 

  

	 	2.28	“Period of Restriction” means the period when Restricted Stock or Restricted Stock Units are subject to a substantial risk of forfeiture (based on the passage of
time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, in its discretion), as provided in Article 8. 

  

	 	2.29	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a
“group” as defined in Section 13(d) thereof. 

  

	 	2.30	“Plan” means the Chaparral Steel Company 2005 Omnibus Equity Compensation Plan. 

  

	 	2.31	“Plan Year” means the calendar year. 

  

	 	2.32	“Restricted Stock” means an Award granted to a Participant pursuant to Article 8. 

  

	 	2.33	“Restricted Stock Unit” means an Award granted to a Participant pursuant to Article 8, except no Shares are actually awarded to the Participant on the date of
grant. 

  

	 	2.34	“Share” means a share of common stock of the Company, $1.00 par value per share. 

  

	 	2.35	“Stock Appreciation Right” or “SAR” means an Award, designated as a SAR, pursuant to the terms of Article 7 herein. 

  

	 	2.36	“Subsidiary” means any corporation or other entity, whether domestic or foreign, in which the Company has or obtains, directly or indirectly, a proprietary interest
of more than fifty percent (50%) by reason of stock ownership or otherwise. 

  

 2 

	 	2.37	“Tandem SAR” means a SAR that is granted in connection with a related Option pursuant to Article 7 herein, the exercise of which shall require forfeiture of the
right to purchase a Share under the related Option (and when a Share is purchased under the Option, the Tandem SAR shall similarly be canceled). 

  

Article 3. Administration 
  
 3.1 General. The Committee shall be responsible for administering the Plan, subject to this Article 3 and the other provisions
of the Plan. The Committee may employ attorneys, consultants, accountants, agents, and other persons, any of whom may be an Employee, and the Committee, the Company, and its officers and Directors shall be entitled to rely upon the advice, opinions
or valuations of any such persons. All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Participants, the Company, and all other interested persons. The Committee shall have the
authority to bring an action in the name of the Company in any court of competent jurisdiction to enforce, define or defend any action or determination under the Plan. 
  
 3.2 Authority of the Committee. Subject to the terms of the Plan, the Committee shall have full
and exclusive discretionary power to interpret the terms and the intent of the Plan and any Award Agreement or other agreement or document ancillary to or in connection with the Plan, to determine eligibility for Awards and to adopt such rules,
regulations, forms, instruments and guidelines for administering the Plan as the Committee may deem necessary or proper. Such authority shall include, but not be limited to, selecting Award recipients, establishing all Award terms and conditions,
including the terms and conditions set forth in Award Agreements, and, subject to Article 19, adopting modifications and amendments to the Plan or any Award Agreement, including without limitation, any that are necessary to comply with the laws of
the countries and other jurisdictions in which the Company, its Affiliates and/or its Subsidiaries operate. 
  
 3.3 Delegation. The Committee may delegate to one or more of its members, or to one or more officers of the Company and/or its
Subsidiaries and Affiliates, or to one or more agents or advisors such administrative duties or powers as it may deem advisable; and the Committee or any person to whom it has delegated duties or powers as aforesaid may employ one or more persons to
render advice with respect to any responsibility the Committee or such person may have under the Plan. The Committee may, by resolution, authorize one or more officers of the Company to do any of the following on the same basis as can the Committee:
(a) designate Employees to be recipients of Awards; and (b) determine the size of any such Awards. The Committee shall not delegate such responsibilities with respect to Awards granted to an officer who is considered an Insider. The resolution
providing for such delegation shall set forth the total number of Awards such officer(s) may grant; and, the officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority
delegated. 
  
 Article 4. Shares Subject to the Plan and Maximum Awards

  

	 	4.1	Number of Shares Available for Awards. 

  

	 	(a)	Subject to adjustment as provided in Section 4.3 herein, the maximum number of Shares available for issuance to Participants under the Plan (the “Share Authorization”)
shall be two million five hundred thousand (2,500,000) shares. 

  

	 	(b)	Subject to adjustment as provided in Section 4.3, and subject to the limit set forth in Section 4.1(a) on the number of Shares that may be issued in the aggregate under the Plan,
and in order to comply with the requirements of Section 422 of the Code and the regulations thereunder, the maximum number of Shares available for issuance pursuant to ISOs and NQSOs shall be: 

  

	 	(i)	Two million five hundred thousand (2,500,000) Shares that may be issued pursuant to Awards in the form of ISOs. 

  

	 	(ii)	Two million five hundred thousand (2,500,000) Shares that may be issued pursuant to Awards in the form of NQSO’s. 

  

	 	(c)	Subject to adjustment as provided in Section 4.3, the maximum number of Shares that may be subject to all Awards granted under the Plan to any one Participant during a calendar year
is 500,000. 

  
 4.2 Share
Usage. Shares covered by an Award shall only be counted as used to the extent they are actually issued and delivered to a Participant, or, if permitted by the Committee, a Participant’s designated transferee. Any Shares related to
Awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged with the Committee’s permission, prior to the issuance of Shares, for
Awards not involving Shares, shall be available again for grant under the Plan. Moreover, if the Option Price of any Option granted under the Plan or the tax withholding requirements with respect to any Award granted under the Plan are satisfied by
tendering Shares to the Company (by either actual delivery or by attestation), or if a SAR is 

  

 3 

 
exercised, only the number of Shares issued, net of the Shares tendered, if any, will be deemed delivered for purposes of determining the maximum number of
Shares available for delivery under the Plan. The maximum number of Shares available for issuance under the Plan shall not be reduced to reflect any dividends or dividend equivalents that are reinvested into additional Shares or credited as
additional Restricted Stock, Restricted Stock Units, Performance Shares, or Other Stock-Based Awards. The Shares available for issuance under the Plan may be authorized and unissued Shares or treasury Shares. 
  
 4.3 Adjustments in Authorized Shares. In the
event of any corporate event or transaction (including, but not limited to, a change in the Shares of the Company or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, stock dividend,
stock split, reverse stock split, split up, spin-off, or other distribution of stock or property of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change in capital structure or distribution (other than
normal cash dividends) to Shareholders of the Company, or any similar corporate event or transaction, the Committee, in its sole discretion, in order to prevent dilution or enlargement of Participants’ rights under the Plan, shall substitute or
adjust, as applicable, the number and kind of Shares that may be issued under the Plan or under particular forms of Awards, the maximum number of shares that may be granted to individual Participants, the number and kind of Shares subject to
outstanding Awards, the Option Price or Grant Price applicable to outstanding Awards and other value determinations applicable to outstanding Awards. 
  
 The Committee, in its sole discretion, may also make appropriate adjustments in the terms of any Awards under the Plan to reflect or related to such
changes or distributions and to modify any other terms of outstanding Awards. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under the Plan. 
  
 Subject to the provisions of Article 17, without affecting the number of
Shares reserved or available hereunder or the number or types of options that may be granted hereunder, the Committee may authorize the issuance or assumption of Awards under this Plan in connection with any merger, consolidation, acquisition of
property or stock or reorganization upon such terms and conditions as it may deem appropriate; provided, however, that, subject to adjustment as provided above, the maximum amount of Shares with respect to which ISOs, NQSOs and/or other Awards may
be granted under this paragraph is as set forth in sections 4.1 (b) and (c) hereof. 
  
 Article 5. Eligibility and Participation 
  
 5.1 Eligibility. Individuals eligible to participate in this Plan include all Employees and Non-Employee Directors. 
  
 5.2 Actual Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select from all
eligible individuals, those to whom Awards shall be granted and shall determine, in its sole discretion, the nature of any and all terms permissible by law, and the amount of each Award, except that in the case of Non-Employee Directors, such
determinations shall be made by the Board pursuant to Section 11. 
  
 Article
6. Stock Options 
  
 6.1 Grant of
Options. Subject to the terms and provisions of the Plan, Options may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee, in its sole discretion;
provided that ISOs may be granted only to eligible Employees of the Company or of any parent or subsidiary corporation (as permitted by Section 422 of the Code and the regulations thereunder). 
  
 6.2 Award Agreement. Each Option grant shall be
evidenced by an Award Agreement that shall specify the Option Price, the maximum duration of the Option, the number of Shares to which the Option pertains, the conditions upon which an Option shall become vested and exercisable, and such other
provisions as the Committee shall determine which are not inconsistent with the terms of the Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or a NQSO. 
  
 6.3 Option Price. The Option Price for each grant
of an Option under this Plan shall be as determined by the Committee and shall be specified in the Award Agreement; provided, however, the Option Price shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the date
the Option is granted. 
  
 6.4 Duration of
Options. Each Option granted to a Participant shall expire at such time as the Committee shall determine at the time of grant; provided, however, no Option shall be exercisable later than the tenth (10th) anniversary date of its grant.

  
 6.5 Exercise of Options. Options
granted under this Article 6 shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each
Participant. 
  

 6 

 6.6 Payment. Options granted under this Article 6 shall be exercised by the
delivery of a notice of exercise to the Company or an agent designated by the Company in a form specified or accepted by the Committee, or by complying with any alternative procedures which may be authorized by the Committee, setting forth the
number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares. 
  
 A condition of the issuance of the Shares as to which an Option shall be exercised shall be the payment of the Option Price. The Option Price of any
Option shall be payable to the Company in full either: (a) in cash or its equivalent; (b) by tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the
Option Price (provided that the Shares that are tendered must have been held by the Participant for at least six (6) months prior to their tender to satisfy the Option Price or have been purchased on the open market); (c) by a combination of (a) and
(b); or (d) any other method approved or accepted by the Committee in its sole discretion. 
  
 Subject to any governing rules or regulations, as soon as practicable after receipt of written notification of exercise and full payment (including satisfaction of any applicable tax withholding), the Company shall
deliver to the Participant evidence of book entry Shares, or upon the Participant’s request, Share certificates in an appropriate amount based upon the number of Shares purchased under the Option(s). 
  
 Unless otherwise determined by the Committee, all payments under all of the
methods indicated above shall be paid in United States dollars. 
  
 6.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem advisable, including,
without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, or under any blue sky or
state securities laws applicable to such Shares. 
  
 6.8 Termination of Employment. Each Participant’s Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option following termination of the
Participant’s employment or provision of services to the Company, its Affiliates, or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement
entered into with each Participant, need not be uniform among all Options issued pursuant to this Article 6, and may reflect distinctions based on the reasons for termination. 
  
 6.9 Transferability of Options. 
  

	 	(a)	Incentive Stock Options. No ISO granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by
the laws of descent and distribution. Further, all ISOs granted to a Participant under this Article 6 shall be exercisable during his or her lifetime only by such Participant. 

  

	 	(b)	Non-Qualified Stock Options. Except as otherwise provided in a Participant’s Award Agreement or otherwise determined at any time by the Committee, no NQSO granted
under this Article 6 may be sold, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution; provided that the Board or Committee may permit further transferability, on a general or a specific
basis, and may impose conditions and limitations on any permitted transferability. Further, except as otherwise provided in a Participant’s Award Agreement or otherwise determined at any time by the Committee, or unless the Board or Committee
decides to permit further transferability, all NQSOs granted to a Participant under this Article 6 shall be exercisable during his or her lifetime only by such Participant. With respect to those NQSOs, if any, that are permitted to be transferred to
another person, references in the Plan to exercise or payment of the Option Price by the Participant shall be deemed to include, as determined by the Committee, the Participant’s permitted transferee. 

  
 6.10 Notification of Disqualifying Disposition.
If any Participant shall make any disposition of Shares issued pursuant to the exercise of an ISO under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions), such Participant shall notify the
Company of such disposition within ten (10) days thereof. 
  
 6.11 Substituting SARs. In the event the Company no longer uses APB Opinion 25 to account for equity compensation and is required to or elects to expense the cost of Options pursuant to FAS 123 (or a successor
standard), the Committee shall have the ability to substitute, without receiving Participant permission, SARs paid only in Stock (or SARs paid in Stock or cash at the Committee’s discretion) for outstanding Options; provided the terms of the
substituted Stock SARs are substantially equivalent to the terms for the Options, and the excess of the Fair Market Value of the underlying Shares over the aggregate Grant Price of the SARs is equivalent to the excess of the Fair Market Value of the
underlying Shares over the aggregate Option Price of the Options. If this provision creates adverse accounting consequences for the Company, it shall be considered void by the Committee. 
  

 5 

 Article 7. Stock Appreciation Rights 
  
 7.1 Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to
Participants at any time and from time to time as shall be determined by the Committee. The Committee may grant Freestanding SARs, Tandem SARs, or any combination of these forms of SARs. 
  
 Subject to the terms and conditions of the Plan, the Committee shall have complete discretion in determining the number of
SARs granted to each Participant and, consistent with the provisions of the Plan, in determining the terms and conditions pertaining to such SARs. 
  
 The Grant Price for each grant of a Freestanding SAR shall be determined by the Committee and shall be specified in the Award Agreement. The Grant Price
may be based on one hundred percent (100%) of the FMV of the Shares on the date of grant, set at a premium to the FMV of the Shares on the date of grant, or indexed to the FMV of the Shares on the date of grant, with the index determined by the
Committee, in its discretion. The Grant Price of Tandem SARs shall be equal to the Option Price of the related Option. 
  
 7.2 SAR Agreement. Each SAR Award shall be evidenced by an Award Agreement that shall specify the Grant Price, the term of the
SAR, and such other provisions as the Committee shall determine. 
  
 7.3 Term of SAR. The term of a SAR granted under the Plan shall be determined by the Committee in its sole discretion, and except as determined otherwise by the Committee and specified in the SAR Award Agreement,
no SAR shall be exercisable later than the tenth (10th) anniversary date of its grant. 
  
 7.4 Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion, imposes. 
  
 7.5. Exercise of Tandem SARs. Tandem SARs may be
exercised for all or part of the Shares subject to the related Option upon the surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR may be exercised only with respect to the Shares for which its related
Option is then exercisable. 
  
 Notwithstanding any other
provision of this Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (a) the Tandem SAR will expire no later than the expiration of the underlying ISO; (b) the value of the payout with respect to the Tandem SAR may
be for no more than one hundred percent (100%) of the excess of the Fair Market Value of the Shares subject to the underlying ISO over the aggregate Option Price of the Shares subject to the underlying ISO at the time the Tandem SAR is exercised;
and (c) the Tandem SAR may be exercised only when the Fair Market Value of the Shares subject to the ISO exceeds the aggregate Option Price of the ISO. 
  
 7.6 Payment of SAR Amount. Upon the exercise of a SAR, a Participant shall be entitled to receive payment from the Company in
an amount determined by multiplying: 
  
 (a) The excess of the
Fair Market Value of a Share on the date of exercise over the Grant Price; by 
  
 (b) The number of Shares with respect to which the SAR is exercised. 
  
 At the discretion of the Committee, the payment upon SAR exercise may be in cash, Shares, or any combination thereof, or in any other manner approved by the Committee in its sole discretion. The Committee’s
determination regarding the form of SAR payout shall be set forth in the Award Agreement pertaining to the grant of the SAR. 
  
 7.7 Termination of Employment. Each Award Agreement shall set forth the extent to which the Participant shall have the right
to exercise the SAR following termination of the Participant’s employment with or provision of services to the Company, its Affiliates and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of
the Committee, shall be included in the Award Agreement entered into with Participants, need not be uniform among all SARs issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination. 
  
 7.8 Non-Transferability of SARs. Except as
otherwise provided in a Participant’s Award Agreement or otherwise at any time by the Committee, no SAR granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, except as otherwise provided in a Participant’s Award Agreement or otherwise at any time by the Committee, all SARs granted to a Participant under the Plan shall be exercisable during his or her
lifetime only by such Participant. With respect to those SARs, if any, that are permitted to be transferred to another person, references in the Plan to exercise of the SAR by the Participant or payment of any amount to the Participant shall be
deemed to include, as determined by the Committee, the Participant’s permitted transferee. 
  

 6 

 7.9 Other Restrictions. The Committee shall impose such other conditions
and/or restrictions on any Shares received upon exercise of a SAR granted pursuant to the Plan as it may deem advisable or desirable. These restrictions may include, but shall not be limited to, a requirement that the Participant hold the Shares
received upon exercise of a SAR for a specified period of time. 
  
 Article 8.
Restricted Stock and Restricted Stock Units 
  
 8.1. Grant of Restricted Stock or Restricted Stock Units. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock and/or Restricted
Stock Units to Participants in such amounts as the Committee shall determine. Restricted Stock Units shall be similar to Restricted Stock except that no Shares are actually awarded to the Participant on the date of grant. 
  
 8.2 Restricted Stock or Restricted Stock Unit
Agreement. Each Restricted Stock and/or Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units
granted, and such other provisions as the Committee shall determine. 
  
 8.3 Transferability. Except as provided in this Plan or an Award Agreement, the Shares of Restricted Stock and/or Restricted Stock Units granted herein may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated until the end of the applicable Period of Restriction established by the Committee and specified in the Award Agreement (and in the case of Restricted Stock Units until the date of delivery or other payment), or
upon earlier satisfaction of any other conditions, as specified by the Committee, in its sole discretion, and set forth in the Award Agreement or otherwise at any time by the Committee. All rights with respect to the Restricted Stock and/or
Restricted Stock Units granted to a Participant under the Plan shall be available during his or her lifetime only to such Participant, except as otherwise provided in an Award Agreement or at any time by the Committee. 
  
 8.4 Other Restrictions. The Committee shall
impose such other conditions and/or restrictions on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to the Plan as it may deem advisable including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Share of Restricted Stock or each Restricted Stock Unit, restrictions based upon the achievement of specific performance goals, time-based restrictions on vesting following the attainment of the performance goals, time-based
restrictions and/or restrictions under applicable laws or under the requirements of any stock exchange or market upon which such Shares are listed or traded, or holding requirements or sale restrictions placed on the Shares by the Company upon
vesting of such Restricted Stock or Restricted Stock Units. 
  
 To
the extent deemed appropriate by the Committee, the Company may retain the certificates representing Shares of Restricted Stock in the Company’s possession until such time as all conditions and/or restrictions applicable to such Shares have
been satisfied or lapse. 
  
 Except as otherwise provided in this
Article 8 or under applicable law, Shares of Restricted Stock covered by each Restricted Stock Award shall become freely transferable by the Participant after all conditions and restrictions applicable to such Shares have been satisfied or lapse
(including satisfaction of any applicable tax withholding obligations), and Restricted Stock Units shall be paid in cash, Shares, or a combination of cash and Shares as the Committee in its sole discretion shall determine. 
  
 8.5 Certificate Legend. In addition to any
legends placed on certificates pursuant to Section 20.2, each certificate representing Shares of Restricted Stock granted pursuant to the Plan may bear a legend such as the following or as otherwise determined by the Committee in its sole
discretion: 
  
 The sale or transfer of Shares of stock
represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the Chaparral Steel Company 2005 Omnibus Equity Compensation Plan, and in the associated Award
Agreement. A copy of the Plan and such Award Agreement may be obtained from Chaparral Steel Company 
  
 8.6 Voting Rights. Unless otherwise determined by the Committee and set forth in a Participant’s Award Agreement, to the
extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock granted hereunder may be granted the right to exercise full voting rights with respect to those Shares during the Period of
Restriction. There shall be no voting rights with respect to any Restricted Stock Units granted hereunder. 
  
 8.7 Termination of Employment. Each Award Agreement shall set forth the extent to which the Participant shall have the right
to retain Restricted Stock and/or Restricted Stock Units following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such 

  

 7 

 
provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not
be uniform among all Awards of Restricted Stock or Restricted Stock Units granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination. 
  
 8.8 Section 83(b) Election. The Committee may provide in an Award Agreement that the Award of
Restricted Stock is conditioned upon the Participant making or refraining from making an election with respect to the Award under Section 83(b) of the Code. If a Participant makes an election pursuant to Section 83(b) of the Code concerning a
Restricted Stock Award, the Participant shall be required to file promptly a copy of such election with the Company. 
  
 Article 9. Performance Units/ Performance Shares 
  
 9.1 Grant of Performance Units/Performance Shares. Subject to the terms and provisions of the Plan, the Committee, at any time
and from time to time, may grant Performance Units and/or Performance Shares to Participants in such amounts and upon such terms as the Committee shall determine. 
  
 9.2 Value of Performance Units/Performance Shares. Each Performance Unit shall have an initial
value that is established by the Committee at the time of grant. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant. The Committee shall set performance goals in its discretion which,
depending on the extent to which they are met, will determine the value and/or number of Performance Units/ Performance Shares that will be paid out to the Participant. 
  
 9.3 Earning of Performance Units/Performance Shares. Subject to the terms of this Plan, after
the applicable Performance Period has ended, the holder of Performance Units/ Performance Shares shall be entitled to receive payout on the value and number of Performance Units/Performance Shares earned by the Participant over the Performance
Period, to be determined as a function of the extent to which the corresponding performance goals have been achieved. 
  
 9.4 Form and Timing of Payment of Performance Units/Performance Shares. Payment of earned Performance Units/ Performance
Shares shall be as determined by the Committee and as evidenced in the Award Agreement. Subject to the terms of the Plan, the Committee, in its sole discretion, may pay earned Performance Units/Performance Shares in the form of cash or in Shares (or
in a combination thereof) equal to the value of the earned Performance Units/Performance Shares at the close of the applicable Performance Period, or as soon as practicable after the end of the Performance Period. Any Shares may be granted subject
to any restrictions deemed appropriate by the Committee and as evidenced in the Award Agreement. The determination of the Committee with respect to the form of payout of such Awards and restrictions shall be set forth in the Award Agreement
pertaining to the grant of the Award. 
  
 9.5
Dividends and Other Distributions. At the discretion of the Committee, Participants holding Performance Shares may be entitled to receive dividend equivalents with respect to dividends declared with respect to the Shares. Such dividend
equivalents may be in the form of cash, Shares, Restricted Stock, or Restricted Stock Units and may be subject to such accrual, forfeiture, or payout restrictions as determined by the Committee in its sole discretion and as evidenced in the Award
Agreement. 
  
 9.6 Termination of
Employment. Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Performance Units and/or Performance Shares following termination of the Participant’s employment with or provision
of services to the Company, its Affiliates and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need
not be uniform among all Awards of Performance Units or Performance Shares issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination. 
  
 9.7 Non-Transferability. Except as otherwise provided in a Participant’s Award Agreement or
otherwise determined at any time by the Committee, Performance Units/ Performance Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Further,
except as otherwise provided in a Participant’s Award Agreement or otherwise determined at any time by the Committee, a Participant’s rights under the Plan shall be exercisable during his or her lifetime only by such Participant.

  
 Article 10. Other Stock-Based Awards 
  
 10.1 Grant of Other Stock-Based Awards. The
Committee may grant other types of equity-based or equity-related Awards not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted Shares) in such amounts and subject to such terms and conditions as the
Committee shall determine. Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares and may include, without limitation, Awards designed to comply with or take
advantage of the applicable local laws of jurisdictions other than the United States. 
  

 8 

 10.2 Value of Other Stock-Based Awards. Each Other Stock-Based Award shall be
expressed in terms of Shares or units based on Shares as determined by the Committee. The Committee may establish performance goals in its discretion. If the Committee exercises its discretion to establish performance goals, the number and/or value
of Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to which the performance goals are met. 
  
 10.3 Payment of Other Stock-Based Awards. Payment, if any, with respect to an Other Stock-Based Award shall be made in
accordance with the terms of the Award, in cash or Shares as the Committee determines. 
  
 10.4 Termination of Employment. The Committee shall determine the extent to which the Participant shall have the right to receive Other Stock-Based Awards following termination of the
Participant’s employment with or provision of services to the Company, its Affiliates and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee. Such provisions may be included in
an agreement entered into with each Participant, but need not be uniform among all Awards of Other Stock-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination. 
  
 10.5 Non-Transferability. Except as otherwise
determined by the Committee, Other Stock-Based Awards may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Further, except as otherwise provided by
the Committee, a Participant’s rights under the Plan, if exercisable, shall be exercisable during his or her lifetime only by such Participant. With respect to those Other Stock-Based Awards, if any, that are permitted to be transferred to
another person, references in the Plan to exercise or payment of such Awards by or to the Participant shall be deemed to include, as determined by the Committee, the Participant’s permitted transferee. 
  
 Article 11. Non-Employee Director Awards 
  
 Non-Employee Directors may only be granted Awards under the Plan in
accordance with this Article 11 and which shall not be subject to management’s discretion. From time to time, the Committee, subject to the approval of the Board of Directors, shall set the amount(s) and type(s) of equity awards that shall be
granted to all Non-Employee Directors on a periodic, nondiscriminatory basis pursuant to the Plan, as well as any additional amount(s), if any, to be awarded, also on a periodic, nondiscriminatory basis, based on each of the following: the number of
committees of the Board on which a Non-Employee Director serves, service of a Non-Employee Director as the chair of a Committee of the Board, service of a Non-Employee Director as Chairman of the Board, service of a Non-Employee Director as a Lead
Director or the first selection or appointment of an individual to the Board as a Non-Employee Director and any subsequent reelection of such Non-Employee Director to the Board. Subject to the foregoing, the Board shall grant such Awards to
Non-Employee Directors and the Non-Employee Chairman of the Board and/or the Non-Employee Lead Director and grant New Non-Employee Director Awards, as it shall from time to time determine. 
  
 Article 12. Dividend Equivalents 
  
 Any Participant selected by the Committee may be granted dividend
equivalents based on the dividends declared on Shares that are subject to any Award, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests or expires, as
determined by the Committee. Such dividend equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such limitations as may be determined by the Committee. 
  
 Dividend equivalents granted with respect to Options or SARs that are
intended to be Performance-Based Compensation shall be payable, with respect to pre-exercise periods, regardless of whether such Option or SAR is subsequently exercised. 
  
 Article 13. Beneficiary Designation 
  
 Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any
benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee,
and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the
Participant’s estate. 
  
 Article 14. Deferrals 
  
 The Committee may permit or, in an Award Agreement, require officers or
Non-Employee Directors to defer receipt of the payment of cash or the delivery of Shares that would otherwise be due to such officers or Non-Employee Directors by virtue of the exercise of an Option or SAR, the lapse or waiver of restrictions with
respect to Restricted Stock or 

  

 9 

 
Restricted Stock Units, or the satisfaction of any requirements or performance goals with respect to Performance Shares, Performance Units, or Other
Stock-Based Awards. If any such deferral election is required or permitted, the Committee shall, in its sole discretion, establish rules and procedures for such payment deferrals. 
  
 Article 15. Rights of Participants 
  
 15.1 Employment. Nothing in the Plan or an Award Agreement shall interfere with or limit in any way the right of the Company,
its Affiliates and/or its Subsidiaries, to terminate any Participant’s employment or service on the Board or to the Company at any time or for any reason not prohibited by law, nor confer upon any Participant any right to continue his or her
employment, or service as a Director, for any specified period of time. 
  
 Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company, its Affiliates and/or its Subsidiaries and, accordingly, subject to Articles 3 and 17, this Plan and the benefits hereunder
may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company, its Affiliates and/or its Subsidiaries. 
  
 15.2 Participation. No individual shall have the
right to be selected to receive an Award under this Plan or, having been so selected, to be selected to receive a future Award. 
  
 15.3 Rights as a Shareholder. Except as otherwise provided herein, a Participant shall have none of the rights of a
Shareholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares. 
  
 15.4 No Third Party Beneficiaries. This Plan does not confer any right or remedy other than to Participants, the Company, and
their respective permitted successors and assigns, and no action may be brought against the Company, the Board, the Committee, or any of the Committee’s delegates by any third party claiming as a third party beneficiary to the Plan or any Award
Agreement. 
  
 Article 16. Corporate Events 
  
 Unless otherwise set forth in the Award Agreement, upon a dissolution or
liquidation of the Company, or a sale of substantially all of the assets of the Company, its Subsidiaries and its Affiliates and the acquiring entity does not substitute new and equivalent Awards for the outstanding Awards hereunder, or a merger or
consolidation in which the surviving corporation does not substitute new and equivalent Awards for the outstanding Awards hereunder (each a “Corporate Event”), each Participant shall be given at least ten days prior written notice of the
occurrence of such Corporate Event, every Award outstanding hereunder shall become fully vested and exercisable, all restrictions on such Awards shall lapse and each Participant may exercise any Award that is in the form of an Option or SAR, in
whole or in part, prior to or simultaneously with such Corporate Event. Unless otherwise set forth in the Award Agreement, upon the occurrence of any such Corporate Event, any Option or SAR not exercised pursuant hereto shall terminate. Unless
otherwise set forth in the Award Agreement, furthermore, upon the occurrence of a Corporate Event, the Company shall have the option to cancel every outstanding Award hereunder (other than Options and SARs outstanding the cancellation of which would
be handled by the preceding sentence) and to pay the holder of such Awards the value of those Awards as determined by the Board or Committee in their sole discretion. 
  
 Article 17. Amendment, Modification, Suspension and Termination 
  
 17.1 Amendment, Modification, Suspension and Termination. Subject to Section 17.3, the Committee may,
at any time and from time to time, alter, amend, modify, suspend or terminate the Plan and any Award Agreement in whole or in part; provided, however, that, without the prior approval of the Company’s Shareholders and except as provided in
Sections 4.3 and 6.11 hereof, Options issued under the Plan will not be repriced, replaced, or regranted through cancellation, or by lowering the Option Price of a previously granted Option, and no amendment of the Plan shall be made without
Shareholder approval if Shareholder approval is required by law, regulation, or stock exchange rule, including, but not limited to, the Securities Exchange Act of 1934, as amended, the Internal Revenue Code of 1986, as amended, and, if applicable,
the New York Stock Exchange Listed Company Manual. 
  
 17.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or Non-recurring Events. The Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual
or nonrecurring events (including, without limitation, the events described in Section 4.3 hereof) affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations or accounting principles, whenever the
Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. The determination of the Committee as to the
foregoing adjustments, if any, shall be conclusive and binding on Participants under the Plan. 
  

 10 

 17.3 Awards Previously Granted. Notwithstanding any other provision of the Plan to
the contrary, no termination, amendment, suspension or modification of the Plan or an Award Agreement shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the Participant holding such
Award. 
  
 Article 18. Withholding 
  
 18.1 Tax Withholding. The Company shall have the power
and the right to deduct or withhold, or require a Participant to remit to the Company, the minimum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any
taxable event arising as a result of this Plan. 
  
 18.2
Share Withholding. With respect to withholding required upon the exercise of Options or SARs, upon the lapse of restrictions on Restricted Stock and Restricted Stock Units, or any other taxable event arising as a result of an Award
granted hereunder, the Committee may decide to permit Participants to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the
minimum statutory total tax that could be imposed on the transaction. If permitted by the Committee, all Participant elections related to share withholding shall be irrevocable, made in writing, and signed by the Participant, and shall be subject to
any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 
  
 Article 19. Successors 
  
 All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger,
consolidation or otherwise, of all or substantially all of the business and/or assets of the Company. 
  
 Article 20. General Provisions 
  
 20.1 Forfeiture Events. 
  

	 	(a)	The Committee may specify in an Award Agreement that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation,
forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of employment for
cause, violation of material Company, Affiliate and/or Subsidiary policies, breach of noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the
business or reputation of the Company, its Affiliates and/or its Subsidiaries. 

  

	 	(b)	If Section 304 of the Sarbanes-Oxley Act of 2002 applies to any Award or payment in settlement of any Award, the Participant shall and hereby agrees to reimburse the Company for any
such amounts or Awards as provided by Section 304 of the Sarbanes-Oxley Act of 2002. 

  
 20.2 Legend. The certificates for Shares may include any legend which the Committee deems appropriate to reflect any restrictions on
transfer of such Shares. 
  
 20.3 Gender and
Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural. 
  
 20.4 Severability. In the event any provision of the
Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

  
 20.5 Requirements of Law. The granting of
Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
  
 20.6 Delivery of Title. The Company shall have no
obligation to issue or deliver evidence of title for Shares issued under the Plan prior to: 
  

	 	(a)	Obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and 

  

	 	(b)	Completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental body that the Company determines to be
necessary or advisable. 

  

 11 

 20.7 Inability to Obtain Authority. The inability of the Company to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to
issue or sell such Shares as to which such requisite authority shall not have been obtained. 
  
 20.8 Investment Representations. The Committee may require any person receiving Shares pursuant to an Award under this Plan to represent and warrant in writing that the person is acquiring the
Shares for investment and without any present intention to sell or distribute such Shares. 
  
 20.9 Employees, Directors and Participants Based Outside of the United States. 
  
 20.10 Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in other countries in which the Company,
its Affiliates and/or its Subsidiaries operate or have Employees, Directors or Participants, the Committee, in its sole discretion, shall have the power and authority to: 
  

	 	(a)	Determine which Affiliates and Subsidiaries shall be covered by the Plan; 

  

	 	(b)	Determine which Employees, Directors or Participants outside the United States are eligible to participate in the Plan; 

  

	 	(c)	Modify the terms and conditions of any Award granted to Employees, Directors or Participants outside the United States to comply with applicable foreign laws;

  

	 	(d)	Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and modifications to Plan
terms and procedures established under this Section 20.9 by the Committee shall be attached to this Plan document as appendices; and 

  

	 	(e)	Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals.

  
 Notwithstanding the above, the Committee may not
take any actions hereunder, and no Awards shall be granted, that would violate applicable law. 
  
 20.10 Uncertificated Shares. To the extent that the Plan provides for issuance of certificates to reflect the transfer of Shares, the transfer of such Shares may be effected on a uncertificated
basis, to the extent not prohibited by applicable law or the rules of any stock exchange. 
  
 20.11 Unfunded Plan. Participants shall have no right, title or interest whatsoever in or to any investments that the Company, and/or its Subsidiaries and/or Affiliates may make to aid it in
meeting its obligations under the Plan. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant,
beneficiary, legal representative, or any other person. To the extent that any person acquires a right to receive payments from the Company, and/or its Subsidiaries and/or Affiliates under the Plan, such right shall be no greater than the right of
an unsecured general creditor of the Company, a Subsidiary or an Affiliate, as the case may be. All payments to be made hereunder shall be paid from the general funds of the Company, a Subsidiary or an Affiliate, as the case may be, and no special
or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in the Plan. The Plan is not subject to ERISA. 
  
 20.12 No Fractional Shares. No fractional Shares shall
be issued or delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, Awards, or other property shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be
forfeited or otherwise eliminated. 
  
 20.13 Retirement
and Welfare Plans. Neither Awards made under the Plan nor Shares or cash paid pursuant to such Awards will be included as “compensation” for purposes of computing the benefits payable to any Participant under the Company’s
or any Subsidiary’s or Affiliate’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant’s
benefit. 
  
 20.14 Nonexclusivity of the
Plan. The adoption of this Plan shall not be construed as creating any limitations on the power of the Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant. 
  
 20.15 No Constraint on Corporate Action. Nothing in this
Plan shall be construed to: (i) limit, impair or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power to make adjustments, reclassifications, reorganizations or changes of its capital or business
structure, or to merge or consolidate, or dissolve, liquidate, sell or transfer all or any part of its business or assets; or, (ii) limit the right or power of the Company or a Subsidiary or an Affiliate to take any action which such entity deems to
be necessary or appropriate. 
  

 12 

 20.16 Ratification of Actions. By accepting any Award or other benefit under the
Plan, each Participant and each person claiming under or through each Participant shall be conclusively deemed to have indicated his or her acceptance and ratification of, and consent to, any action taken under the Plan by the Company, the Board or
the Committee. 
  
 20.17 Governing Law. The
Plan and each Award Agreement shall be governed by the laws of the State of Texas excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another
jurisdiction. Unless otherwise provided in the Award Agreement, recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Texas, to resolve any and all issues that may arise
out of or relate to the Plan or any related Award Agreement. 
  
 20.18 Jury Waiver. Every Participant, every person claiming under or through a Participant, and the Company hereby waive to the fullest extent permitted by applicable law any right to a trial by jury with respect to any
litigation directly or indirectly arising out of, under, or in connection with the Plan or any Award Agreement issued pursuant to the Plan. 
  
 20.19 No Guarantee of Tax Consequences. No person connected with the Plan in any capacity, including without limitation the Company and its
Affiliates and their respective directors, officers, agents and employees, makes any representation, commitment or guarantee that any tax treatment, including without limitation federal, state and local income, estate and gift tax treatment, will be
applicable with respect to any Awards or payments thereunder made to or for the benefit of a Participant under the Plan or that such tax treatment will apply to or be available to a Participant on account of participation in the Plan. 
  

 13

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