Document:

exv10w1

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

TERMINATION AGREEMENT

This Termination Agreement (the “Agreement”) is made as of the 28th day of June 2005, by
and between AMDOCS SOFTWARE SYSTEMS LIMITED, a corporation incorporated under the Laws of Ireland
(“Amdocs”), and RURAL CELLULAR CORPORATION, a Minnesota corporation (“RCC”), and
amends the Master Agreement (defined below).

     WHEREAS, Amdocs and RCC are party to that certain CRM And Billing Managed Services Agreement
dated February 5, 2004, by and between Amdocs and RCC as such agreement was amended July 6, 2004,
July 30, 2004, and October 26, 2004 (as so amended, the “Master Agreement”—capitalized
terms not defined herein shall have the meanings set forth in the Master Agreement); and

     WHEREAS, Amdocs has been and is providing Services to RCC’s currently existing GSM customers
pursuant to the Master Agreement; and

     WHEREAS, Amdocs and RCC desire to terminate the Master Agreement and to end their present
disputes without further expenditure of time or expense or proceeding, and without an admission of
fault or liability by either party; and

     WHEREAS, the parties agree that Amdocs will continue to render Outsourcing Services to RCC’s
GSM customers during the Transition-Out Period (defined below);

     NOW THEREFORE, in consideration of the foregoing premises and mutual promises, covenants and
obligations, agreements and other undertakings set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which is acknowledged, the undersigned agree as
follows:

     1. Cessation of Implementation and Migration Services. Effective as of June 28, 2005
(the “Effective Date”), Amdocs and RCC shall immediately cease all further Implementation
and Migration Services described in Revised Schedule 10 of the Master Agreement. The parties
acknowledge and agree that Amdocs shall cease providing services with respect to Change Requests,
and that RCC shall have no payment obligations with respect to any Change Requests other than
payment of invoices for those three Change Requests identified in Exhibit A, which Change Requests
have been delivered to RCC, are hereby finally approved and accepted by RCC, and are payable by RCC
within forty-five (45) days from its receipt of Amdocs’ invoice therefor. All provisions of the
Master Agreement (including all schedules thereto), except as modified hereby, shall remain in
effect until the Transition-Out Period Expiration Date (defined below).

     2. Continuing Outsourcing Services. Amdocs will continue to provide Outsourcing
Services, as further set forth in Schedule 11 of the Master Agreement, to RCC for RCC’s current GSM
customers (which are presently billed by Amdocs) through the end of the Transition-Out Period.
Amdocs will also provide Outsourcing Services for future GSM customers of RCC which RCC places on
the Amdocs billing system through the end of the Transition-Out Period.

 

	
	**Information omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for Confidential Treatment.

1

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

Amdocs shall provide all Outsourcing Services from the Effective Date until the Transition-Out
Period Expiration Date **.

     3. Transition-Out Matters. The parties shall immediately move to implement the
provisions of Schedule 18 of the Master Agreement. The parties shall immediately proceed with
negotiation of the Transition-Out Work Plan and shall execute a final Transition-Out Work Plan
within fourteen (14) days from the date hereof (July 12, 2005). Notwithstanding anything to the
contrary in the Master Agreement, the Transition-Out Period shall commence on the Effective Date
and shall expire on the earlier to occur of (a) that date when no RCC customers remain on the
Amdocs Solution in accordance with the Transition-Out Work Plan or (b) 120 days after the Effective
Date; provided that, in either case, RCC shall have the right, at its sole discretion, to extend
this Transition-Out Period by a single additional thirty (30) day period ** upon ten (10) days’
prior written notice to Amdocs, in which case the Transition-Out Period shall expire at the end of
such thirty (30) day period (the “Transition-Out Period Expiration Date” meaning either the
earlier of the dates described in clauses (a) or (b) above, or, if applicable, the last day of the
(optional) additional thirty (30) day period). Amdocs shall provide all Termination Assistance
Services in accordance with the Transition-Out Work Plan **.

     4. Dispute Resolution Procedures. Notwithstanding the provisions of the Master
Agreement to the contrary, the parties agree that any dispute arising out of or relating to
continuing Outsourcing Services and Termination Assistance Services shall be referred to RCC’s
Senior Director, MIS and Amdocs’ Division Vice President for resolution, and if no resolution is
obtained within one (1) business day, the dispute shall be escalated to RCC’s Executive VP and COO
and Amdocs’ Division President. If the dispute is not resolved within an additional two (2)
business days, either party may submit the dispute to arbitration in accordance with the provisions
of the Master Agreement, subject to the terms hereof. The foregoing dispute resolution provision
shall not prevent the parties from seeking injunctive relief as permitted in the Master Agreement.

     5. Effect on Master Agreement. This Agreement modifies and amends the provisions of
the Master Agreement. Effective on the Transition-Out Period Expiration Date, all of the
provisions of the (i) Master Agreement; and (ii) performance guaranty signed by Amdocs Limited,
referenced in Section 16.7.5 of the Master Agreement, shall terminate and be without further force
or effect, except for those provisions which would, by their nature, survive expiration or
termination, including without limitation those provisions set forth on Exhibit B, which
shall remain in full force and effect indefinitely, solely with respect to the rights and
obligations of the parties for acts or omissions occurring after the Effective Date, in accordance
with their respective terms.

     6. Payments. ** RCC shall have no obligation to pay Amdocs any amounts for any
matters arising out of or related to the Master Agreement or this Agreement or for any Services
performed or provided by Amdocs to or for the benefit of RCC (including any Services provided
pursuant to the provisions hereof) except as set forth in this Agreement. **.

     7. Release by Amdocs. Subject to each party performing its obligations under the
Master Agreement and this Agreement, Amdocs on its own behalf and on behalf of its respective

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

2

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

current and former directors, officers, shareholders, employees, agents, attorneys, insurers,
Affiliates, subsidiaries, parent companies, related companies (including without limitation Amdocs,
Inc., a Delaware corporation and Amdocs Champaign, Inc., a Delaware corporation and Amdocs Limited,
an Island of Guernsey corporation), successors and assigns, absolutely and unconditionally
releases, acquits and forever discharges RCC and RCC’s current and former directors, officers,
shareholders, employees, agents, attorneys, insurers, Affiliates, subsidiaries, related companies,
successors and assigns (collectively, the “RCC Released Parties”), of and from any and all
claims, demands, actions, damages and liabilities (including attorney fees), whether direct or
indirect, fixed or contingent, known or unknown, which Amdocs or any of its respective current and
former directors, officers, shareholders, employees, agents, attorneys, insurers, Affiliates,
subsidiaries, related companies, successors and assigns has ever had, has or claims to have
against the RCC Released Parties, prior to and through the Effective Date, arising from or related
to the Master Agreement and/or the relationship contemplated by the Master Agreement. Nothing
herein shall be deemed to release RCC or its Affiliates from any obligations arising under the
Master Agreement or this Agreement for matters occurring after the Effective Date.

     8. Release by RCC. Subject to each party performing its obligations under the Master
Agreement and this Agreement, RCC, on its own behalf and on behalf of its current and former
directors, officers, shareholders, employees, agents, attorneys, insurers, Affiliates,
subsidiaries, related companies (including without limitation Amdocs, Inc., a Delaware corporation,
Amdocs Champaign, Inc., a Delaware corporation and Amdocs Limited, an Island of Guernsey
corporation (under the performance guaranty referenced in Section 16.7.5 of the Master Agreement),
predecessors, successors and assigns, absolutely and unconditionally releases, acquits and forever
discharges Amdocs and Amdocs’ current and former directors, officers, shareholders, employees,
agents, attorneys, insurers, Affiliates, subsidiaries, parent companies, related companies,
successors and assigns (collectively, the “Amdocs Released Parties”), of and from any and
all claims, demands, actions, damages and liabilities (including attorney fees), whether direct or
indirect, fixed or contingent, known or unknown, which RCC or any of its respective current and
former directors, officers, shareholders, employees, agents, attorneys, insurers, Affiliates,
subsidiaries, related companies, successors and assigns has ever had, has or claims to have
against the Amdocs Released Parties, prior to and through the Effective Date, arising from or
related to the Master Agreement and/or the relationship contemplated by the Master Agreement.
Nothing herein shall be deemed to release Amdocs or its Affiliates from any obligations arising
under the Master Agreement, the above-referenced guaranty, or this Agreement for matters occurring
after the Effective Date.

     9. No Admission. This Agreement is made and entered into for the purpose of resolving
outstanding disputes between the parties and is not, and shall not be construed as, an admission of
any sort on the part of Amdocs or RCC.

     10. Attorneys Fees. In the event that arbitration, injunction or other proceedings
are commenced or brought to enforce the terms of the Master Agreement and this Agreement, the
prevailing party shall be entitled to recover its costs and reasonable attorneys’ fees incurred in
any such proceeding, in addition to actual damages.

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

3

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

     11. Publicity; Confidentiality. The terms and circumstances surrounding this
Agreement are confidential and shall not be disclosed to any third party or a party’s personnel,
except as provided below. Each party consents to the statement regarding the termination of the
relationship contemplated by the Master Agreement in substantially the form of Exhibit C.
Except for disclosures in substantially the form of Exhibit C and disclosure by each party
to its Board of Directors, executives and auditors, and the other disclosures described in this
Section 11, each of Amdocs and RCC agrees that it must obtain the other’s prior written consent
before publicly using or publicly disclosing any advertising, written sales promotion materials,
press releases, information or other publicity matters relating to the Master Agreement and this
Agreement (including, without limitation, the negotiation, execution and delivery hereof but not
the enforcement hereof). Notwithstanding the foregoing restrictions, RCC and Amdocs Limited shall
each have the right to make public disclosures to its shareholders, investors and investment
analysts and representatives and as required by law, which disclosures both parties agree shall be
not inconsistent with the statements set forth in Exhibit C; in addition, RCC and Amdocs shall each
have the right to make internal disclosures not inconsistent with the statements set forth in
Exhibit C to its employees, vendors, consultants and retained professionals (such as lawyers and
accountants). RCC shall file a copy of this Agreement with its required securities filings,
redacted to be in the form attached hereto as Exhibit D.

     12. Entire Agreement. Each of the undersigned parties to this Agreement declares and
represents that no promise, inducement or agreement not expressed herein has been made to it, and
that the Master Agreement (and any agreement referred to in the Master Agreement), this Agreement
and the Transition-Out Work Plan contains the entire agreement between the parties hereto and,
further, each party declares and represents that in entering into this Agreement, it understands
and agrees that it is relying wholly upon its own judgment, belief and knowledge as to the nature,
extent and duration of any damages that they may have or will incur. This Agreement may not be
changed, supplemented or amended, except in a writing executed by the parties hereto.

     13. Interpretation. This Agreement shall be construed as drafted jointly by the
parties and shall not be construed or interpreted for or against any party hereto because that
party drafted or caused the party’s legal representative to draft any of its provisions.

     14. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall constitute an original, and all of which, when taken together, shall constitute one
and the same instrument and any of the parties hereto may execute this Agreement by signing any
such counterpart.

     15. Authority. Each party represents that the person signing this Agreement has
authority to bind that party.

     16. Governing Law. This Agreement shall be governed by, construed and enforced in
accordance with applicable provisions of the Master Agreement and this Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the
Effective Date.

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

4

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

	 	 	 	 	 	 	 	 	 
	AMDOCS SOFTWARE
SYSTEMS 
LIMITED,	 	 	 	RURAL
CELLULAR CORPORATION,
a Minnesota corporation
	a corporation incorporated under
the Laws of Ireland	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Burt Podhere
	 	 	 	By
	 	/s/ Ann K. Newhall
	 

	 	 
	 	 	 	 	 	 
	Name: Burt Podhere	 	 	 	Name: Ann K. Newhall
	Title: General Manager	 	 	 	Title: EVP/COO and Secretary

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

5

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

EXHIBIT A

PERMITTED CHANGE REQUESTS

CR 0141

CR 0144

CR 0152

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

1

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

EXHIBIT B

SURVIVING MASTER AGREEMENT PROVISIONS

IP rights (§16.2)

Confidentiality and data privacy (§§16.3-16.4) and Schedule 19 to MSA

Liability (§16.7)

Governing Law (§16.13.1)

Indemnification (§§ 16.17.3 through 16.17.6)

Employee non-solicitation (§16.5)

Parent Guaranties (only as to the portions of the Master Agreement remaining in effect)

Such other provisions of the MSA, if any, as the parties may agree as a part of the Transition-Out
Work Plan

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

1

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

EXHIBIT C

8K PRESS RELEASE

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

1

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted
	 
	 	 

 

 

EXHIBIT C TO TERMINATION AGREEMENT

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant

to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date
of Report (Date of earliest event reported): June 28, 2005

RURAL CELLULAR CORPORATION

(Exact name of Registrant as Specified in its Charter)

	 	 	 
	Minnesota
	 

	(State or other Jurisdiction of Incorporation)

	 	 	 
	0-27416
	 	41-1693295
	 
	 	 
	(Commission File Number)
	 	(IRS Employer Identification No.)

	 	 	 
	3905 Dakota Street S.W.,

Alexandria, Minnesota
	 	56308
	 
	 	 
	(Address of Principal Executive Offices)
	 	(Zip Code)

	 	 	 
	Registrant’s Telephone
Number, Including Area Code (320) 762-2000

			
	 

	Former Name or Former Address, if Changed Since Last Report

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

 

 

2

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

Item 1.02. Termination of a Material Definitive Agreement.

Effective on June 28, 2005, the Customer Relationship Management and Billing Managed Services
Agreement dated February 5, 2004 (the “Agreement”), between Rural Cellular Corporation (“RCC” or
the “Company”) and Amdocs Software Systems Limited (the “Vendor”) was mutually terminated.

The termination was based upon the Company’s decision that the proposed systems would not meet its
requirements given that the Vendor’s focus has become more orientated to national wireless
providers. Under these circumstances, it was determined that the systems would not have been
cost-effective to adapt and maintain over the long term.

Under the Agreement, the Vendor was to have adapted its proprietary systems for use by the Company,
provide support services for the migration of the Company’s existing subscriber base to the
Vendor’s systems, and provide ongoing services for the operation, support, and maintenance of the
Vendor’s systems over an operating period of 7 years.

The Company’s GSM customers (approximately 75,000) have been served through a transitional Vendor
system since earlier this year. The Company expects that current and new GSM customers will be
serviced through this transitional system until another replacement billing system becomes
available. There will be no further development or implementation of the Vendor billing system to
serve the Company’s legacy or CDMA customers. The Company is currently evaluating alternative
billing systems.

Reflecting the termination of the Agreement, RCC anticipates recording a charge to operations
during the second quarter of 2005 of approximately
$     million, reflecting the write down of
certain development costs previously capitalized. RCC did not incur early termination penalties.

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

3

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	 	 	 	 	 
	 	 	RURAL CELLULAR CORPORATION
	 
	 	 	 	 
	 

	 	 	 	/s/ Richard P. Ekstrand
	 

	 	 	 	 
	 

	 	 	 	Richard P. Ekstrand
	 

	 	 	 	President and Chief Executive Officer
	Date: June 30, 2005
	 	 	 	 

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

4

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

EXHIBIT D

REDACTED AMENDMENT FOR REQUIRED FILING

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

1

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

EXHIBIT D TO TERMINATION AGREEMENT

REDACTED AMENDMENT FOR REQUIRED FILING

TERMINATION AGREEMENT

This Termination Agreement (the “Agreement”) is made as of the 28th day of June
2005, by and between AMDOCS SOFTWARE SYSTEMS LIMITED, a corporation incorporated under the Laws of
Ireland (“Amdocs”), and RURAL CELLULAR CORPORATION, a Minnesota corporation (“RCC”), and amends the
Master Agreement (defined below).

     WHEREAS, Amdocs and RCC are party to that certain CRM And Billing Managed Services Agreement
dated February 5, 2004, by and between Amdocs and RCC as such agreement was amended July 6, 2004,
July 30, 2004, and October 26, 2004 (as so amended, the “Master Agreement” – capitalized
terms not defined herein shall have the meanings set forth in the Master Agreement); and

     WHEREAS, Amdocs has been and is providing Services to RCC’s currently existing GSM customers
pursuant to the Master Agreement; and

     WHEREAS, Amdocs and RCC desire to terminate the Master Agreement and to end their present
disputes without further expenditure of time or expense or proceeding, and without an admission of
fault or liability by either party; and

     WHEREAS, the parties agree that Amdocs will continue to render Outsourcing Services to RCC’s
GSM customers during the Transition-Out Period (defined below);

     NOW THEREFORE, in consideration of the foregoing premises and mutual promises, covenants and
obligations, agreements and other undertakings set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which is acknowledged, the undersigned agree as
follows:

     1. Cessation of Implementation and Migration Services. Effective as of June 28, 2005
(the “Effective Date”), Amdocs and RCC shall immediately cease all further Implementation
and Migration Services described in Revised Schedule 10 of the Master Agreement. The parties
acknowledge and agree that Amdocs shall cease providing services with respect to Change Requests,
and that RCC shall have no payment obligations with respect to any Change Requests other than
payment of invoices for those three Change Requests identified in Exhibit A, which Change Requests
have been delivered to RCC, are hereby finally approved and accepted by RCC, and are payable by RCC
within forty-five (45) days from its receipt of Amdocs’ invoice therefor. All provisions of the
Master Agreement (including all schedules thereto), except as modified hereby, shall remain in
effect until the Transition-Out Period Expiration Date (defined below).

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

1

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

     2. Continuing Outsourcing Services. Amdocs will continue to provide Outsourcing
Services, as further set forth in Schedule 11 of the Master
Agreement, to RCC for RCC’s current GSM customers (which are presently billed by Amdocs) through the end of the Transition-Out Period.
Amdocs will also provide Outsourcing Services for future GSM customers of RCC which RCC places on
the Amdocs billing system through the end of the Transition-Out Period. Amdocs shall provide all
Outsourcing Services from the Effective Date until the Transition-Out Period Expiration Date* * * *
* * * * * * * * * *.

     3. Transition-Out Matters. The parties shall immediately move to implement the
provisions of Schedule 18 of the Master Agreement. The parties shall immediately proceed with
negotiation of the Transition-Out Work Plan and shall execute a final Transition-Out Work Plan
within fourteen (14) days from the date hereof (July 12, 2005). Notwithstanding anything to the
contrary in the Master Agreement, the Transition-Out Period shall commence on the Effective Date
and shall expire on the earlier to occur of (a) that date when no RCC customers remain on the
Amdocs Solution in accordance with the Transition-Out Work Plan or (b) 120 days after the Effective
Date; provided that, in either case, RCC shall have the right, at its sole discretion, to extend
this Transition-Out Period by a single additional thirty (30) day period * * * * * * * * * * upon
ten (10) days’ prior written notice to Amdocs, in which case the Transition-Out Period shall expire
at the end of such thirty (30) day period (the “Transition-Out Period Expiration Date”
meaning either the earlier of the dates described in clauses (a) or (b) above, or, if applicable,
the last day of the (optional) additional thirty (30) day period). Amdocs shall provide all
Termination Assistance Services in accordance with the Transition-Out Work Plan * * * * * * * * * *
* * * * * *.

     4. Dispute Resolution Procedures. Notwithstanding the provisions of the Master
Agreement to the contrary, the parties agree that any dispute arising out of or relating to
continuing Outsourcing Services and Termination Assistance Services shall be referred to RCC’s
Senior Director, MIS and Amdocs’ Division Vice President for resolution, and if no resolution is
obtained within one (1) business day, the dispute shall be escalated to RCC’s Executive VP and COO
and Amdocs’ Division President. If the dispute is not resolved within an additional two (2)
business days, either party may submit the dispute to arbitration in accordance with the provisions
of the Master Agreement, subject to the terms hereof. The foregoing dispute resolution provision
shall not prevent the parties from seeking injunctive relief as permitted in the Master Agreement.

     5. Effect on Master Agreement. This Agreement modifies and amends the provisions of
the Master Agreement. Effective on the Transition-Out Period Expiration Date, all of the
provisions of the (i) Master Agreement; and (ii) performance guaranty signed by Amdocs Limited,
referenced in Section 16.7.5 of the Master Agreement, shall terminate and be without further force
or effect, except for those provisions which would, by their nature, survive expiration or
termination, including without limitation those provisions set forth on Exhibit B, which
shall remain in full force and effect indefinitely, solely with respect to the rights and
obligations of the parties for acts or omissions occurring after the Effective Date, in accordance
with their respective terms.

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

2

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

     6. Payments. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *.
RCC shall have no obligation to pay Amdocs any amounts for any matters arising out of or related to
the Master Agreement or this Agreement or for any Services performed or provided by Amdocs to or
for the benefit of RCC (including any Services provided pursuant to the provisions hereof) except
as set forth in this Agreement. * * * * * * * * * * * * * * * * * * * * * * * *.

     7. Release by Amdocs. Subject to each party performing its obligations under the
Master Agreement and this Agreement, Amdocs on its own behalf and on behalf of its respective
current and former directors, officers, shareholders, employees, agents, attorneys, insurers,
Affiliates, subsidiaries, parent companies, related companies (including without limitation Amdocs,
Inc., a Delaware corporation and Amdocs Champaign, Inc., a Delaware corporation and Amdocs Limited,
an Island of Guernsey corporation), successors and assigns, absolutely and unconditionally
releases, acquits and forever discharges RCC and RCC’s current and former directors, officers,
shareholders, employees, agents, attorneys, insurers, Affiliates, subsidiaries, related companies,
successors and assigns (collectively, the “RCC Released Parties”), of and from any and all
claims, demands, actions, damages and liabilities (including attorney fees), whether direct or
indirect, fixed or contingent, known or unknown, which Amdocs or any of its respective current and
former directors, officers, shareholders, employees, agents, attorneys, insurers, Affiliates,
subsidiaries, related companies, successors and assigns has ever had, has or claims to have against
the RCC Released Parties, prior to and through the Effective Date, arising from or related to the
Master Agreement and/or the relationship contemplated by the Master Agreement. Nothing herein
shall be deemed to release RCC or its Affiliates from any obligations arising under the Master
Agreement or this Agreement for matters occurring after the Effective Date.

     8. Release by RCC. Subject to each party performing its obligations under the Master
Agreement and this Agreement, RCC, on its own behalf and on behalf of its current and former
directors, officers, shareholders, employees, agents, attorneys, insurers, Affiliates,
subsidiaries, related companies (including without limitation Amdocs, Inc., a Delaware corporation,
Amdocs Champaign, Inc., a Delaware corporation and Amdocs Limited, an Island of Guernsey
corporation (under the performance guaranty referenced in Section 16.7.5 of the Master Agreement),
predecessors, successors and assigns, absolutely and unconditionally releases, acquits and forever
discharges Amdocs and Amdocs’ current and former directors, officers, shareholders, employees,
agents, attorneys, insurers, Affiliates, subsidiaries, parent companies, related companies,
successors and assigns (collectively, the “Amdocs Released Parties”), of and from any and
all claims, demands, actions, damages and liabilities (including attorney fees), whether direct or
indirect, fixed or contingent, known or unknown, which RCC or any of its respective current and
former directors, officers, shareholders, employees, agents, attorneys, insurers, Affiliates,
subsidiaries, related companies, successors and assigns has ever had, has or claims to have
against the Amdocs Released Parties, prior to and through the Effective Date, arising from or
related to the Master Agreement and/or the relationship contemplated by the Master Agreement.
Nothing herein shall be deemed to release Amdocs or its Affiliates from any obligations arising
under the Master Agreement, the above-referenced guaranty, or this Agreement for matters occurring
after the Effective Date.

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

3

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

     9. No Admission. This Agreement is made and entered into for the purpose of resolving
outstanding disputes between the parties and is not, and shall not be construed as, an admission of
any sort on the part of Amdocs or RCC.

     10. Attorneys Fees. In the event that arbitration, injunction or other proceedings
are commenced or brought to enforce the terms of the Master Agreement and this Agreement, the
prevailing party shall be entitled to recover its costs and reasonable attorneys’ fees incurred in
any such proceeding, in addition to actual damages.

     11. Publicity; Confidentiality. The terms and circumstances surrounding this
Agreement are confidential and shall not be disclosed to any third party or a party’s personnel,
except as provided below. Each party consents to the statement regarding the termination of the
relationship contemplated by the Master Agreement in substantially the form of Exhibit C.
Except for disclosures in substantially the form of Exhibit C and disclosure by each party
to its Board of Directors, executives and auditors, and the other disclosures described in this
Section 11, each of Amdocs and RCC agrees that it must obtain the other’s prior written consent
before publicly using or publicly disclosing any advertising, written sales promotion materials,
press releases, information or other publicity matters relating to the Master Agreement and this
Agreement (including, without limitation, the negotiation, execution and delivery hereof but not
the enforcement hereof). Notwithstanding the foregoing restrictions, RCC and Amdocs Limited shall
each have the right to make public disclosures to its shareholders, investors and investment
analysts and representatives and as required by law, which disclosures both parties agree shall be
not inconsistent with the statements set forth in Exhibit C; in addition, RCC and Amdocs shall each
have the right to make internal disclosures not inconsistent with the statements set forth in
Exhibit C to its employees, vendors, consultants and retained professionals (such as lawyers and
accountants). RCC shall file a copy of this Agreement with its required securities filings,
redacted to be in the form attached hereto as Exhibit D.

     12. Entire Agreement. Each of the undersigned parties to this Agreement declares and
represents that no promise, inducement or agreement not expressed herein has been made to it, and
that the Master Agreement (and any agreement referred to in the Master Agreement), this Agreement
and the Transition-Out Work Plan contains the entire agreement between the parties hereto and,
further, each party declares and represents that in entering into this Agreement, it understands
and agrees that it is relying wholly upon its own judgment, belief and knowledge as to the nature,
extent and duration of any damages that they may have or will incur. This Agreement may not be
changed, supplemented or amended, except in a writing executed by the parties hereto.

     13. Interpretation. This Agreement shall be construed as drafted jointly by the
parties and shall not be construed or interpreted for or against any party hereto because that
party drafted or caused the party’s legal representative to draft any of its provisions.

     14. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall constitute an original, and all of which, when taken together, shall constitute one
and the same instrument and any of the parties hereto may execute this Agreement by signing any
such counterpart.

 

	
	**Information omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for Confidential Treatment.

4

 

	 	 	 
	CONFIDENTIAL TREATMENT REQUESTED

	 	Exhibit 10.1 Redacted

     15. Authority. Each party represents that the person signing this Agreement has
authority to bind that party.

     16. Governing Law. This Agreement shall be governed by, construed and enforced in
accordance with applicable provisions of the Master Agreement and this Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the
Effective Date.

	 	 	 	 	 	 	 	 	 
	AMDOCS SOFTWARE
SYSTEMS LIMITED, a corporation incorporated under the
Laws of Ireland	 	 	 	RURAL CELLULAR
CORPORATION, a Minnesota corporation
	 
	 	 	 	 	 	 	 	 
	By

	 	 	 	 	 	By	 	 
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 	 	 

 

	
	**Information omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for Confidential Treatment.

5exv10w5

 

Exhibit 10.5

PLEASE SIGN & RETURN

EAGLE MATERIALS INC.

INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

            This restricted stock unit agreement (the “Restricted Stock Unit Agreement” or “Agreement”)
entered into between Eagle Materials Inc., a Delaware corporation (the “Company”), and
                                         (the “Grantee”), an employee of the Company or its Affiliates, with respect to a
right (the “Award”) of                      units (“Restricted Stock Units”) representing shares of Class B
Common Stock (as defined in the Eagle Materials Inc. Incentive Plan, as amended and restated July
27, 2004 (the “Plan”)) granted to the Grantee under the Plan on                      (the “Award Date”),
such number of units subject to adjustment as provided in the Plan, and further subject to the
following terms and conditions:

            1. Relationship to Plan.

            This Award is subject to all of the terms, conditions and provisions of the Plan and
administrative interpretations thereunder, if any, which have been adopted by the Company’s
Compensation Committee (“Committee”) and are in effect on the date hereof. Except as defined
herein, capitalized terms shall have the same meanings ascribed to them under the Plan. For the
purposes of this Restricted Stock Unit Agreement:

            (a) “Capitalization”
means stockholders' equity (as such term is reported by
the Company in its annual report to stockholders for the fiscal year
ended March 31, 2006) plus Net Debt.

            (b) “Debt to Capitalization Ratio” means the ratio of: (i) Net Debt; over (ii)
Capitalization, as adjusted by the Committee in its reasonable
discretion to take into account events and circumstances not
contemplated at the time of the award.

            (c) “EBIT” for any fiscal year means the Company’s earnings before interest and taxes as
reported by the Company in its annual report to stockholders for such fiscal year, as adjusted by
the Committee in its reasonable discretion to take into account events and circumstances not
contemplated at the time of this Award.

            (d) “Net
Debt” means notes payable, plus long term debt, minus cash and
cash equivalents (as such terms are
reported by the Company in its annual report to stockholders for the fiscal year ended March 31,
2006).

            (e) “Vesting Date” means for EBIT RSUs March 31 of any given fiscal year in which EBIT RSUs
vest, if any, in accordance with Section 2(a) and for Operational Excellence RSUs and Balance Sheet
Improvement RSUs March 31, 2006.

            (f) “Vesting Period” means the period commencing on the Award Date and ending on March 31,
2008 for the portion of the Award subject to Section 2(a) and March 31, 2006 for the portions of
the Award subject to Sections 2(b) and 2(c).

1

 

            2. Vesting and Payment.

            (a) EBIT Vesting Schedule.                      Restricted Stock Units of the Award (the “EBIT RSUs”) shall
vest based on the trailing three year average EBIT for the three consecutive fiscal years ending
with the applicable fiscal year in accordance with the following schedule:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	3 Year Average EBIT Targets
	 	 	at FYE (in Millions)
	Vesting Percentage	 	March 31, 2006	 	March 31, 2007	 	March 31, 2008
	     0%	 	less
than $125.0	 	less
than $145.0	 	less
than $170.0
	50%
	 	$	125.0	 	 	$	145.0	 	 	$	170.0	 
	60%
	 	$	129.0	 	 	$	150.0	 	 	$	175.0	 
	70%
	 	$	133.0	 	 	$	155.0	 	 	$	180.0	 
	75%
	 	$	135.0	 	 	$	157.5	 	 	$	182.5	 
	80%
	 	$	137.0	 	 	$	160.0	 	 	$	185.0	 
	85%
	 	$	139.0	 	 	$	162.5	 	 	$	187.5	 
	90%
	 	$	141.0	 	 	$	165.0	 	 	$	190.0	 
	95%
	 	$	143.0	 	 	$	167.5	 	 	$	192.5	 
	100%
	 	$	145.0	 	 	$	170.0	 	 	$	195.0	 

            The exact vesting percentage attained from the vesting schedule above shall be calculated
based on straight-line interpolation between the percentages shown in the vesting schedule above
with fractional percentages rounded to the nearest tenth of one percent; provided, however, in no
event shall the EBIT RSUs vest below fifty percent.

            If the three year average EBIT for any fiscal year subsequent to the initial fiscal year
within the Vesting Period results in a vesting percentage, the
applicable percentage of EBIT RSUs
which shall vest on the applicable Vesting Date shall equal (i) the vesting percentage derived from
the vesting schedule above for the given fiscal year end less (ii) the vesting percentage
previously attained in prior fiscal year(s), if any. At the end of the Vesting Period, if any EBIT
RSUs remain unvested, such EBIT RSUs shall be forfeited.

            The Grantee must be in continuous employment with the Company or any of its Affiliates or
serve as a Director from the Award Date through the Vesting Date in order for the EBIT RSUs to vest
as provided in this Section 2(a).

            (b) Operational
Excellence Vesting Schedule. ___ Restricted Stock Units of the Award (the
“Operational Excellence RSUs”) shall vest on the Vesting Date based on the number of points
achieved at the end of the 2006 fiscal year based on the Fiscal Year 2006 Operational Excellence
Goals (as described in Exhibit B to this Agreement) in accordance with the following
schedule:

2

 

	 	 	 	 	 
	       Points	 	Percentage of Additional
	     Achieved	 	Restricted Stock Units Vested
	100
	 	 	100	%
	94
	 	 	90	%
	88
	 	 	80	%
	82
	 	 	70	%
	76
	 	 	60	%
	70
	 	 	50	%
	64
	 	 	40	%
	58
	 	 	30	%
	52
	 	 	20	%
	46
	 	 	10	%
	40
	 	 	0	%

            The determination of the number of points achieved shall be made and approved by the
Committee. The Committee shall have the sole authority to determine the number of points achieved
for purposes of this schedule, and its determination shall be final, conclusive and binding on all
parties. The exact vesting percentage attained from the schedule shall be calculated based on
straight-line interpolation between the percentages shown in the schedule with fractional
percentages rounded to the nearest tenth of one percent. At the end of the Vesting Period, if any
Operational Excellence RSUs remain unvested, such Operational
Excellence RSUs shall be forfeited.

            The Grantee must be in continuous employment with the Company or any of its Affiliates or
serve as a Director from the Award Date through the Vesting Date in order for the Operational
Excellence RSUs to vest as provided in this Section 2(b).

            (c) Balance
Sheet Improvement Vesting. ___ Restricted Stock Units (the “Balance
Sheet Improvement RSUs”)shall fully vest on March 31, 2006 if the Company achieves a
Debt-to-Capitalization Ratio between 0.2 and 0.45 as of March 31, 2006. At the end of the Vesting
Period, if any Balance Sheet Improvement RSUs remain unvested, such
Balance Sheet Improvement RSUs shall be
forfeited.

            The Grantee must be in continuous employment with the Company or any of its Affiliates or
serve as a Director from the Award Date through the Vesting Date in order for the Balance Sheet
Improvement RSUs to vest as provided this Section 2(c).

            (d) Payment. One-third of the Restricted Stock Units that vest in accordance with the
provisions of Section 2(a), 2(b) or 2(c) shall become payable as soon as administratively
practicable following the applicable Vesting Date. The remaining two-thirds shall become payable
one-third on the first anniversary of such Vesting Date and one-third on the second anniversary of
such Vesting Date.

            The Grantee must be in continuous employment with the Company or any of its Affiliates or
serve as a Director from the Award Date through the date the portion of the Award would otherwise
become payable in order for the portion of the Award to become payable with

3

 

respect to additional Restricted Stock Units, otherwise such portion of the Award shall be
forfeited.

            (e) Calculations. Calculations of EBIT, the points achieved under the Operational Excellence
Goals and the Balance Sheet Improvement criteria shall be made and approved by the Committee. The
Committee shall have the sole authority to approve the calculations for purposes of the vesting
schedules, and its approval of such calculations shall be final, conclusive, and binding on all
parties.

            (f) Change in Control. This Award shall become fully vested and payable without regard to the
limitations set forth in subparagraph (a), (b), (c) or (d) above, provided that the Grantee has
been in continuous employment with the Company or any of its Affiliates or served as a Director
since the Award Date, upon the occurrence of a Change in Control (as defined in Exhibit A
to this Agreement), and fully payable (without regard to the limitations set forth in subparagraph
(d) above) upon a Change in Control with respect to any Restricted Stock Units which have not been
theretofore forfeited, unless either (i) the Committee determines that the terms of the transaction
giving rise to the Change in Control provide that the Award is to be replaced within a reasonable
time after the Change in Control with an award of equivalent value of shares of the surviving
parent corporation or (ii) the Award is to be settled in cash in accordance with the last sentence
of this subparagraph (f). Upon a Change in Control, pursuant to Section 16 of the Plan, the
Company may, in its discretion, settle the Award by a cash payment that the Committee shall
determine in its sole discretion is equal to the fair market value of the Award on the date of such
event.

            3. Forfeiture of Award.

            Except as provided in any other agreement between the Grantee and the Company, if the
Grantee’s employment terminates, all unvested and vested (but not yet payable) Restricted Stock
Units, and all Dividend Equivalent Amounts (as defined in Section 4) attributable thereto, as of
the termination date shall be forfeited.

            4. Dividend Equivalent Payments.

            During the period of time between the Award Date and the earlier of the date the Restricted
Stock Units paid or are settled, the Restricted Stock Units will be evidenced by book entry
registration. As of each date that dividends are paid with respect to Class B Common Stock after
the end of the applicable Vesting Period, the Grantee shall have a number of additional Restricted
Stock Units credited to his or her account with respect to such dividends. The additional
Restricted Stock Units credited with respect to such dividends shall
be equal to: (i) the amount of the dividend paid per share of Class B Common Stock as of such
dividend payment date multiplied by the number of Restricted Stock Units credited to the Grantee’s
account immediately prior to such dividend payment date; divided by (ii) the Fair Market Value of the
Class B Common Stock on such dividend payment date.

            5. Timing and Form of Payment.

            The Grantee may elect on or before                     , 2005 to receive the Award at a time permitted
in and pursuant to an election form, subject to such terms and conditions set

4

 

forth in such form, as prescribed by the Committee (“Election Form”). The Grantee may timely
elect to further defer receipt of the Award in such time and manner, if any, as prescribed by the
Committee in its sole and absolute discretion.

            Notwithstanding anything herein to the contrary including the Grantee’s election pursuant to
the Election Form, the Company reserves the right to pay the value of the vested Restricted Stock
Units, to the extent not yet paid, to the Grantee in the form of shares of Class B Common Stock or
an equivalent cash payment at any time following vesting of the Award.

            6. Delivery of Shares.

            The Company shall not be obligated to deliver any shares of Class B Common Stock if counsel to
the Company determines that such sale or delivery would violate any applicable law or any rule or
regulations of any governmental authority or any rule or regulation of, or agreement of the Company
with, any securities exchange or association upon which the Class B Common Stock is listed or
quoted. The Company shall in no event be obligated to take any affirmative action in order to
cause the delivery of shares of Class B Common Stock to comply with any such law, rule, regulations
or agreement.

            7. Notices.

            Notice or other communication to the Company with respect to this Award must be made in the
following manner, using such forms as the Company may from time to time provide:

            (a) by electronic means as designated by the Committee;

            (b) by registered or certified United States mail, postage prepaid, to Eagle Materials Inc.,
Attention: Secretary, 3811 Turtle Creek Blvd, Suite 1100, Dallas, Texas 75219; or

            (c) by hand delivery or otherwise to Eagle Materials Inc., Attention: Secretary, 3811 Turtle
Creek Blvd, Suite 1100, Dallas, Texas 75219.

            Notwithstanding the foregoing, in the event that the address of the Company is changed, any
such notice shall instead be made pursuant to the foregoing provisions at the Company’s current
address.

            Any notices provided for in this Restricted Stock Unit Agreement or in the Plan shall be given
in writing or by such electronic means, as permitted by the Committee, and shall be deemed
effectively delivered or given upon receipt or, in the case of notices delivered by the Company to
the Grantee, five days after deposit in the United States mail, postage prepaid, addressed to the
Grantee at the address specified at the end of this Agreement or at such other address as the
Grantee hereafter designates by written notice to the Company.

5

 

            8. Assignment of Award.

            Except as otherwise permitted by the Committee, the Grantee’s rights under the Plan and this
Restricted Stock Unit Agreement are personal; no assignment or transfer of the Grantee’s rights
under and interest in this Award may be made by the Grantee other than by will, by beneficiary
designation, by the laws of descent and distribution or by a qualified domestic relations order;
and this Award is payable only to the Grantee during his lifetime.

            After the death of the Grantee, payment of the Award shall be permitted only to the Grantee’s
executor or the personal representative of the Grantee’s estate (or by his assignee, in the event
of a permitted assignment) and only to the extent that the Award was payable on the date of the
Grantee’s death.

            9. Stock Certificates.

            Certificates representing the Class B Common Stock issued pursuant to the Award will bear all
legends required by law and necessary or advisable to effectuate the provisions of the Plan and
this Award. The Company may place a “stop transfer” order against shares of the Class B Common
Stock issued pursuant to this Award until all restrictions and conditions set forth in the Plan or
this Agreement and in the legends referred to in this Section 9 have been complied with.

            10. Withholding.

            No certificates representing shares of Class B Common Stock awarded hereunder shall be
delivered to or in respect of an Grantee unless the amount of all federal, state and other
governmental withholding tax requirements imposed upon the Company with respect to the issuance of
such shares of Class B Common Stock has been remitted to the Company or unless provisions to pay
such withholding requirements have been made to the satisfaction of the Committee. The Committee
may make such provisions as it may deem appropriate for the withholding of any taxes which it
determines is required in connection with this Award. The Grantee may pay all or any portion of
the taxes required to be withheld by the Company or paid by the Grantee in connection with this
Award by delivering cash, or, with the Committee’s approval, by electing to have the Company
withhold shares of Class B Common Stock, or by delivering previously owned shares of Common
Stock, having a Fair Market Value equal to the amount required to be withheld or paid. The Grantee
must make the foregoing election on or before the date that the amount of tax to be withheld is
determined.

            11. Shareholder Rights.

            The Grantee shall have no rights of a shareholder with respect to shares of Class B Common
Stock subject to the Award unless and until such time as the Award has been paid pursuant to
Section 5 and shares of Class B Common Stock have been transferred to the Grantee.

            12. Successors and Assigns.

            This Agreement shall bind and inure to the benefit of and be enforceable by the Grantee, the
Company and their respective permitted successors and assigns (including personal

6

 

representatives, heirs and legatees), except that the Grantee may not assign any rights or
obligations under this Agreement except to the extent and in the manner expressly permitted herein.

            13. No Employment Guaranteed.

            No provision of this Restricted Stock Unit Agreement shall confer any right upon the Grantee
to continued employment with the Company or any Affiliate.

            14. Governing Law.

            This Restricted Stock Unit Agreement shall be governed by, construed, and enforced in
accordance with the laws of the State of Texas.

            15. Amendment.

            This Agreement cannot be modified, altered or amended except by an agreement, in writing,
signed by both the Company and the Grantee.

7

 

	 	 	 	 	 	 	 
	 	 	 	 	EAGLE MATERIALS INC.
	 
	 	 	 	 	 	 
	Date:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Name:
	 

	 	 	 	 	 	Title: President and CEO

            The Grantee hereby accepts the foregoing Restricted Stock Unit Agreement, subject to the terms
and provisions of the Plan and administrative interpretations thereof referred to above.

	 	 	 	 	 
	 

	 	 	 	GRANTEE:
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 
 
	 	 
 
	 
	 	 	 	 
	 

	 	 	 	     Grantee’s Address:
	 

	 	 	 	     Eagle Materials Inc.
	 

	 	 	 	     3811 Turtle Creek Blvd #1100
	 

	 	 	 	     Dallas, TX 75219

8

 

Exhibit A

Change in Control

            For the purpose of this Agreement, a “Change of Control” shall mean the occurrence of any of
the following events:

            (a) The acquisition by any Person of beneficial ownership of securities of the Company
(including any such acquisition of beneficial ownership deemed to have occurred pursuant to Rule
13d-5 under the Exchange Act) if, immediately thereafter, such Person is the beneficial owner of
(i) 50% or more of the total number of outstanding shares of any single class of Company Common
Stock or (ii) 40% or more of the total number of outstanding shares of all classes of Company
Common Stock, unless such acquisition is made (a) directly from the Company in a transaction
approved by a majority of the members of the Incumbent Board or (b) by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any corporation controlled by the
Company;

            (b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board (or who is otherwise designated as a member of the
Incumbent Board by such a vote) shall be considered as though such individual were a member of the
Incumbent Board, except that any such individual shall not be considered a member of the Incumbent
Board if his or her initial assumption of office occurs as a result of either an actual or
threatened election contest (as such term is used in Rule 14a-11 of Regulation 14A promulgated
under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Board;

            (c) The consummation of a Business Combination, unless, immediately following such Business
Combination, (i) more than 50% of both the total number of then outstanding shares of common stock
of the parent corporation resulting from such Business Combination and the combined voting power of
the then outstanding voting securities of such parent corporation entitled to vote generally in the
election of directors will be (or is) then beneficially owned, directly or indirectly, by all or
substantially all of the Persons who were the beneficial owners, respectively, of the outstanding
shares of Company Common Stock immediately prior to such Business Combination in substantially the
same proportions as their ownership immediately prior to such Business Combination of the
outstanding shares of Company Common Stock, (ii) no Person (other than any employee benefit plan
(or related trust) of the Company or any corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 40% or more of the total number of then outstanding
shares of common stock of the corporation resulting from such Business Combination or the combined
voting power of the then outstanding voting securities of such corporation entitled to vote
generally in the election of directors and (iii) at least a majority of the members of the board of
directors of the parent corporation resulting from such Business Combination were members of the
Incumbent Board immediately prior to the consummation of such Business Combination; or

1

 

            (d) Approval by the Board and the shareholders of the Company of (i) a complete liquidation or
dissolution of the Company or (ii) a Major Asset Disposition (or, if there is no such approval by
shareholders, consummation of such Major Asset Disposition) unless, immediately following such
Major Asset Disposition, (A) Persons that were beneficial owners of the outstanding shares of
Company Common Stock immediately prior to such Major Asset Disposition beneficially own, directly
or indirectly, more than 50% of the total number of then outstanding shares of common stock and the
combined voting power of the then outstanding shares of voting stock of the Company (if it
continues to exist) and of the Acquiring Entity in substantially the same proportions as their
ownership immediately prior to such Major Asset Disposition of the outstanding shares of Company
Common Stock; (B) no Person (other than any employee benefit plan (or related trust) of the Company
or such entity) beneficially owns, directly or indirectly, 40% or more of the then outstanding
shares of common stock or the combined voting power of the then outstanding voting securities of
the Company (if it continues to exist) and of the Acquiring Entity entitled to vote generally in
the election of directors and (C) at least a majority of the members of the Board of the Company
(if it continues to exist) and of the Acquiring Entity were members of the Incumbent Board at the
time of the execution of the initial agreement or action of the Board providing for such Major
Asset Disposition.

            For purposes of the foregoing,

          (i) the term “Person” means an individual, entity or group;

          (ii) the term “group” is used as it is defined for purposes of Section
13(d)(3) of the Exchange Act;

          (iii) the terms “beneficial owner”, “beneficially ownership” and
“beneficially own” are used as defined for purposes of Rule 13d-3 under the
Exchange Act;

          (iv) the term “Business Combination” means (x) a merger, consolidation
or share exchange involving the Company or its stock or (y) an acquisition
by the Company, directly or through one or more subsidiaries, of another
entity or its stock or assets;

          (v) the term “Company Common Stock” shall mean the Common Stock, par
value $.01 per share, of the Company and the Class B Common Stock, par value
$.01 per share, of the Company (or, if the context requires, shall mean
either such class);

          (vi) the term “Exchange Act” means the Securities Exchange Act of 1934,
as amended.

          (vii) the phrase “parent corporation resulting from a Business
Combination” means the Company if its stock is not acquired or converted in
the Business Combination and otherwise means the entity which as a result of
such Business Combination owns the Company or all or substantially all of
the Company’s assets either directly or through one or more subsidiaries;

2

 

     (viii) the term “Major Asset Disposition” means the sale or other
disposition in one transaction or a series of related transactions of 50% or
more of the assets of the Company and its subsidiaries on a consolidated
basis; and any specified percentage or portion of the assets of the Company
shall be based on fair market value, as determined by a majority of the
members of the Incumbent Board;

     (ix) the term “Acquiring Entity” means the entity that acquires the
largest portion of the assets sold or otherwise disposed of in a Major Asset
Disposition (or the entity, if any, that owns a majority of the outstanding
voting stock of such acquiring entity entitled to vote generally in the
election of directors or members of a comparable governing body); and

     (x) the phrase “substantially the same proportions,” when used with
reference to ownership interests in the parent corporation resulting from a
Business Combination or in an Acquiring Entity, means substantially in
proportion to the number of shares of Company Common Stock beneficially
owned by the applicable Persons immediately prior to the Business
Combination or Major Asset Disposition, but is not to be construed in such a
manner as to require that the same ratio or number of shares of such parent
corporation or Acquiring Entity be issued, paid or delivered in exchange for
or in respect of the shares of each class of Company Common Stock.

3

 

Exhibit B

Summary of
Eagle Materials Inc.

FY 2006 Operational Excellence Goals

Gypsum Companies

	1.  	Goal related to combined annual average 1/2” Eagleroc (#1 MSF/Net hour)

	2.  	Goal related to combined annual average 5/8” Firebloc (#1 MSF/Net hour)

	3.  	Goal related to combined annual plant efficiencies

	4.  	Goal related to the commencement of the Georgetown facility by fiscal year end.

	5.  	Goal related to current and potential synthetic sources for gypsum in North America.

	6.  	Develop a plan to maximize the payload on all outbound trucks and rail cars of gypsum
wallboard.

	7.  	Goal related to additional gypsum reserves for the Duke facility.

 

 

Cement Companies

	8.  	Goal related to combined annual average type I/II clinker production rate.

	9.  	Goal related to combined annual average kiln utilization (based on 8760 available hours).

	10.  	Goal related to timely completion of construction of the 80,000 ton dome for the Illinois Cement
expansion project within budget.

	11.  	Goal realted to the Illinois Cement expansion project being on budget and on timeline.

	12.  	Continue to develop project echo:

	13.  	Goal related to additional limestone reserves for Illinois Cement.

Paperboard Company

14. Goal related to net winder tons/calendar day

 

 

	15.  	Goal related to annual 54” gypsum facing paper sales.

	16.  	Goal related to quality returns and allowances $  per ton.

	17.  	Goal related to new boiler completion.

Concrete and Aggregates Companies

	18.  	Goal related to new mining equipment for Western
Aggregates.

	19.  	Goal related to CER proposal to increase production
capacity at Centex Materials Buda quarry.

Safety — All Companies

	20.  	Goal related to safety.

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