Document:

EXHIBIT
      10.2

     

    EXHIBIT
      A

     

    THIS
      NOTE
      AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF OR IN CONNECTION HEREWITH
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “SECURITIES ACT”), OR REGISTERED UNDER ANY STATE SECURITIES LAWS. THEY MAY NOT
      BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED
      EXCEPT PURSUANT TO (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, (B) AN OPINION OF COUNSEL SATISFACTORY TO THE BORROWER
      THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT, OR (C) AN EXEMPTION
      FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER
      (IF
      AVAILABLE), IN EACH OF CASES (A) THROUGH (C) IN ACCORDANCE WITH ANY APPLICABLE
      STATE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

     

    CGSI
      AEQUITAS BRIDGE PROMISSORY NOTE

     

    
      	
              $
                

            	
                
                500,000

            	 	
              September
                29, 2008

            

    

    

    FOR
      VALUE
      RECEIVED, Capital Growth Systems, Inc., a Florida corporation (the “Company” or
“Borrower hereby promise to pay to the order of Aequitas Catalyst Fund, LLC
      -Series B (“Lender”), the principal sum of Five Hundred Thousand Dollars
      ($500,000), together with interest thereon from the date of this Promissory
      Note
      (the “Note”). Simple interest shall accrue on the principal balance of this Note
      at five percent (5%) per annum. The principal and accrued interest shall be
      due
      only upon an Event of Default (as defined in that certain CGSI Aequitas Bridge
      Note Purchase Agreement of even date herewith, by and between the Company and
      Lender (the “Purchase Agreement”)). Any capitalized term used but not defined
      herein shall have the meaning ascribed to such term in the Purchase
      Agreement.

     

    1. Payment.
      All
      payments shall be made in lawful money of the United States of America at the
      principal office of the Company, or at such other place as the holder hereof
      may
      from time to time designate in writing to the Company. Payment shall be credited
      first to Costs (as defined below), if any, then to accrued interest due and
      payable and any remainder applied to principal. Prepayment may be made in whole
      or part without penalty, and the Company shall fund prepayments as provided
      for
      in the Purchase Agreement. In connection with the delivery, acceptance,
      performance or enforcement of this Note, the Company hereby waives demand,
      notice, presentment, protest, notice of dishonor and other notice of any kind,
      and assents to extensions of the time of payment, release, surrender or
      substitution of security, or forbearance or other indulgence, without notice.
      The Company agrees to pay all amounts under this Note without offset, deduction,
      claim, counterclaim, defense or recoupment, all of which are hereby
      waived.

     

    2. No
      Security Interest.
      This
      Note is unsecured. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3. Amendments
      and Waivers; Resolutions of Dispute; Notice.
      The
      amendment or waiver of any term of this Note, the resolution of any controversy
      or claim arising out of or relating to this Note and the provision of notice
      shall be conducted pursuant to the terms of the Purchase Agreement.

     

    4. Successors
      and Assigns.
      This
      Note applies to, inures to the benefit of, and binds the successors and assigns
      of the parties hereto; provided, however, that the Company may not assign its
      obligations under this Note without the written consent of Lender and Lender
      may
      not, without the written consent of the Company (which shall not be unreasonably
      withheld), assign all or any portion of this Note to any person or entity.
      Any
      transfer of this Note may be effected only pursuant to the Purchase Agreement
      and by surrender of this Note to the Company and reissuance of a new note to
      the
      transferee, who agrees in writing in form satisfactory to Lender to be bound
      by
      the terms of the Purchase Agreement. Lender and any subsequent holder of this
      Note receives this Note subject to the foregoing terms and conditions, and
      agrees to comply with the foregoing terms and conditions for the benefit of
      the
      Company and any other lenders.

     

    5. Officers
      and Directors not Liable.
      In no
      event shall any officer or director of the Company be liable for any amounts
      due
      and payable pursuant to this Note.

     

    6. Expenses.
      The
      Company hereby agrees, subject only to any limitation imposed by applicable
      law,
      to pay all expenses, including reasonable attorneys’ fees and legal expenses,
      incurred by the holder of this Note (“Costs”) in endeavoring to collect any
      amounts payable hereunder which are not paid when due, whether by declaration
      or
      otherwise. The Company agrees that any delay on the part of the holder in
      exercising any rights hereunder will not operate as a waiver of such rights.
      The
      holder of this Note shall not by any act, delay, omission or otherwise be deemed
      to have waived any of its rights or remedies, and no waiver of any kind shall
      be
      valid unless in writing and signed by the party or parties waiving such rights
      or remedies.

     

    7. Governing
      Law.
      This
      Note shall be governed by and construed under the laws of the State of Illinois
      as applied to other instruments made by Illinois residents to be performed
      entirely within the State of Illinois. Any dispute with respect to this Note
      shall be litigated in the state or federal courts situated in Cook County,
      Illinois.

     

    8. Approval.
      The
      Company hereby represents that it has approved the execution of this Note based
      upon a reasonable belief that the principal provided hereunder is appropriate
      for the Company after reasonable inquiry concerning the Company’s financing
      objectives and financial situation. In addition, the Company hereby represents
      that it intends to use the principal of this Note primarily for the operations
      of its business, and not for any personal, family or household
      purpose.

     

    9. Conversion.

     

    9.1 Subsequent
      Financing.
      If a
      Subsequent Financing has occurred on or before the Outside Date, then
      immediately upon completion of the Subsequent Financing, this Note and the
      entire principal amount hereof shall automatically, without any further action
      on the part of Lender or the Company, convert into a Subsequent Debenture having
      a principal amount of $500,000; provided, that any interest accrued on this
      Note
      prior to the Subsequent Financing shall be added to the principal amount of
      the
      Subsequent Debenture or paid at the Company’s option, and the Company shall be
      authorized to replace the Note with the form of Subsequent Debenture called
      for
      in the Purchase Agreement. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    9.2 No
      Subsequent Financing.
      If a
      Subsequent Financing has not occurred by the Outside Date, then on the day
      immediately following the Outside Date, this Note and the entire principal
      amount hereof shall automatically, without any further action on the part of
      Lender or the Company, convert into a New Unsecured Debenture having a principal
      amount of $500,000; provided, that any interest accrued on this Note prior
      to
      the Outside Date shall be added to the principal amount of the New Unsecured
      Debenture or paid at the Company’s option, and the Company shall be authorized
      to replace this Note with the form of New Unsecured Debenture called for in
      the
      Purchase Agreement.

     

    9.3 Effect
      of Conversion.
      Upon a
      conversion of this Note, the Company shall be forever released from all of
      its
      obligations and liabilities under this Note related to the converted principal
      amount. Effective as of the conversion, upon delivery of the New Unsecured
      Debenture or Subsequent Debenture evidencing the conversion, this Note shall
      thereafter only evidence the obligation to pay all interest accrued through
      the
      date of conversion.

     

    IN
      WITNESS WHEREOF, THE COMPANY
      has executed this Note on the day and year first above
      written.

     

    

      
        	
                 

              	
                 

              
	
                 

              	
                 

              
	
                 

              	
                Capital
                  Growth Systems, Inc..

              
	
                 

              	
                 

              
	
                 

              	
                By:

              	
                 

              
	
                 

              	
                Its:

              	
                 

              

      

    

     

     

    
      
        
        

      

      
        3Unassociated Document

    EXHIBIT 10.10.2

     

    
      
        

      

       

    

    SECOND
      AMENDMENT

    TO
      SECOND AMENDED AND RESTATED CREDIT AGREEMENT AND WAIVER

     

    Dated
      as of September 30, 2008

     

    among

    

    BUILDING
      MATERIALS HOLDING CORPORATION,

     

    BMC
      WEST CORPORATION

    AND
      OTHER SUBSIDIARY GUARANTORS,

    

    

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

    as
      Administrative Agent, Joint Lead Arranger, Joint Book Manager, Swingline Lender
      and 

    L/C
      Issuer,

    

    JPMORGAN
      CHASE BANK, N.A.,

    as
      Documentation Agent

     

    and
      

     

    THE
      OTHER FINANCIAL INSTITUTIONS PARTY HERETO

    

    J.P.
      MORGAN SECURITIES INC.,

    Joint
      Lead Arranger and Joint Book Manager

     

    
      
 

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    

    SECOND
      AMENDMENT 

    TO
      SECOND AMENDED AND RESTATED CREDIT AGREEMENT AND WAIVER 

    

    This
      SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT AND WAIVER
      (this “Amendment”) dated as of September 30, 2008, by and among (i)
      BUILDING MATERIALS HOLDING CORPORATION, a Delaware corporation
      (“Holdings”), as borrower, (ii) BMC WEST CORPORATION, a Delaware
      corporation (the “Company”), and certain other affiliates of Holdings, as
      guarantors, (iii) the Lenders party to the Credit Agreement referenced below,
      (iv) JPMORGAN CHASE BANK, N.A., as Documentation Agent, and (v) WELLS FARGO
      BANK, NATIONAL ASSOCIATION (“Wells Fargo”), as L/C Issuer, Swingline
      Lender, Joint Lead Arranger, Joint Book Manager and Administrative Agent.

    

    A.
      WHEREAS, Holdings, the Company and the other Guarantors, the Lenders and the
      Administrative Agent are parties to a Second Amended and Restated Credit
      Agreement, dated as of November 10, 2006, as amended by a First Amendment to
      Second Amended and Restated Credit Agreement and Waiver, dated as of February
      29, 2008 (as so amended, the “Credit Agreement”). 

    

    B.
      WHEREAS, by written notice dated July 29, 2008 (the “Notice Letter”),
      Holdings notified the Administrative Agent of certain Defaults under the Credit
      Agreement as more specifically described in such Notice Letter (such Defaults
      specified in the Notice Letter, the “Specified Defaults”). 

    

    C.
      WHEREAS, in light of the Specified Defaults, Holdings has requested that the
      Majority Lenders agree to certain amendments to the Credit Agreement.

    

    D.
      WHEREAS, the Majority Lenders have agreed to such request, subject to the terms
      and conditions hereof. 

    

    Accordingly,
      the parties hereto agree as follows: 

    

    SECTION
      1. Definitions;
      Interpretation.
      

    

    (a)
      Terms
      Defined in Credit Agreement.
      All
      capitalized terms used in this Amendment (including in the preamble and recitals
      hereof) and not otherwise defined herein shall have the meanings assigned to
      them in the Credit Agreement. 

     

    (b)
      Interpretation.
      The
      rules of interpretation set forth in Section 1.02 of the Credit Agreement
      shall be applicable to this Amendment and are incorporated herein by this
      reference. 

     

    SECTION
      2. Amendments
      to the Credit Agreement; Waiver of Specified Defaults.
      

     

    (a)
      Amendments. The Credit Agreement shall be amended as follows, effective
      as of the date of satisfaction of the conditions set forth in Section 3
      of this Amendment: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	(i)	
              Section
                1.01 of the Credit Agreement (captioned “Certain Defined Terms”)
                shall be amended as follows: 

            

    

    

    
      	
            	(A)	
              The
                defined term “Account” shall be amended and restated in its
                entirety as follows: 

               

              ““Account”
                means an account (as that term is defined in the UCC).”
                

            

    

     

    
      	
            	(B)	
              A
                new defined term “Account Debtor” shall be inserted in alphabetical
                order as follows: 

               

              ““Account
                Debtor” means any Person who is obligated on an Account.”
                

            

    

     

    
      	
            	(C)	
              The
                defined term “Applicable Fee Amount” shall be amended and restated
                in its entirety as follows: 

               

              ““Applicable
                Fee Amount” means, with respect to the Commitment Fees, 0.50%, and,
                with respect to the Standby Letter of Credit fees payable hereunder,
                5.25%.” 

            

    

     

    
      	
            	(D)	
              The
                defined term “Applicable Margin” shall be amended and restated in
                its entirety as follows: 

               

              ““Applicable Margin” means, with
                respect to Base Rate Loans, 3.25%, and, with respect to Offshore
                Rate
                Loans, 5.25%.” 

            

    

     

    (A)
      A new
      defined term “Appraised Value of Real Estate Collateral” shall be inserted in
      alphabetical order as follows: 

    

    
      	
            	(E)	
              ““Appraised
                Value of Real Estate Collateral” means the appraised Dollar value of
                the Mortgaged Property that is subject to a valid and perfected first
                priority Lien in favor of the Administrative Agent (subject only
                to
                Permitted Liens), such Dollar value to be as determined from time
                to time
                by an appraisal company selected by the Administrative Agent. As
                of the
                Second Amendment Effective Date, the most recent Appraised Value
                of Real
                Estate Collateral is $218,908,002, as reflected on the schedule attached
                to the Borrowing Base Certificate delivered on the Second Amendment
                Effective Date.” 

            

    

     

    
      	
            	(F)	
              A
                new defined term “BMCI” shall be inserted in alphabetical order as
                follows: 

               

              ““BMCI”
                means BMC Insurance, Inc., a Hawaii corporation.”
                

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
            	(G)	
              A
                new defined term “BMCI Liquidation” shall be inserted in
                alphabetical order as follows: 

               

              
                ““BMCI
                  Liquidation” means (i) the liquidation of BMCI, (ii)
                  the distribution or other transfer of all cash, cash equivalents
                  and other
                  securities held by BMCI to Holdings, (iii)
                  the conversion of all such cash equivalents and other securities
                  to cash
                  through the orderly disposition thereof and (iv) the wind down
                  and
                  cessation of operations of BMCI.”

              

            

    

     

    
      	
            	
              (H)

            	
              The
                defined term “Borrowing Base” shall be amended and restated in its
                entirety as follows: 

            

    

    

    ““Borrowing
      Base” means, as of any date of determination, the result of: 

    

    a.
      70% of
      the (A) amount of Eligible Accounts less the (B) Warranty Reserve
less (C) the Gift Certificate Reserve, plus

     

    b.
      50% of
      (A) the value of Eligible Inventory (other than Truss and Millwork Inventory)
      less (B) the Inventory Vendor Discount Reserve less (C) the
      Inventory Volume Rebate Reserve, plus

     

    c.
      25% of
      (A) the value of Eligible Truss and Millwork Inventory less (B) the Truss
      and Millwork Vendor Discount Reserve less (C) the Truss and Millwork
      Volume Rebate Reserve, plus

     

    d.
      75% of
      the Fixed Assets Orderly Liquidation Value (or 60% of net book value of Eligible
      Fixed Assets (which as of the Second Amendment Effective Date is $_________)),
      prior to receipt by Administrative Agent of the first appraisal determining
      the
      Fixed Assets Orderly Liquidation Value), plus

     

    e.
      50% of
      the Appraised Value of Real Estate Collateral, minus

     

    f.
      the
      Rent Reserve plus the aggregate amount of other reserves, if any,
      established by the Administrative Agent in the exercise of its Permitted
      Discretion.” 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
            	(I)	
              A
                new defined term “Cash Balance” shall be inserted in alphabetical
                order as follows: 

            

    

     

    ““Cash
      Balance” means, at any time, the aggregate Dollar amount of all cash and
      cash equivalents of Holdings and its Subsidiaries held in deposit accounts,
      securities accounts or otherwise, as determined in accordance with GAAP, but
      including, without limitation, any cash or cash equivalents held in a Cash
      Collateral Account without regard to how the account balance is accounted for
      on
      Holdings’ financial statements.” 

     

    
      	
            	(J)	
              A
                new defined term “Cash Collateral Account” shall be inserted in
                alphabetical order as follows: 

            

    

     

    ““Cash
      Collateral Account” means that certain securities account with account
      number _____ held at _____ (or such other interest-bearing deposit accounts
      held
      at Wells Fargo Bank, N.A. or its Affiliates satisfactory to the Administrative
      Agent) in the name of the Administrative Agent, for itself and on behalf of
      and
      for the benefit of the Lenders, in which cash shall from time to time be
      deposited pursuant to the Loan Documents as additional collateral for the
      Obligations.” 

     

    
      	
            	(K)	
              The
                defined term “Cash Collateralize” shall be amended and restated in
                its entirety as follows: 

            

    

     

    ““Cash
      Collateralize” means to pledge and deposit with or deliver to the
      Administrative Agent, for the benefit of the Administrative Agent, the L/C
      Issuer and the applicable Lenders, as additional collateral for the L/C
      Obligations or the Obligations, as the case may be, pursuant to the Loan
      Documents, cash or deposit account balances. Derivatives of such term shall
      have
      corresponding meaning. 

     

    
      	
            	(L)	
              A
                new defined term “Collateral Access Agreement” shall be inserted in
                alphabetical order as follows: 

            

    

    

    ““Collateral
      Access Agreement” means a landlord waiver, bailee letter, or acknowledgement
      agreement of any lessor, warehouseman, processor, consignee, or other Person
      in
      possession of, having a Lien upon, or having rights or interests in Holdings’ or
      its Subsidiaries’ books and records, Inventory or equipment, in each case, in
      form and substance reasonably satisfactory to Administrative Agent.”

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

      
        	
              	(M)	
                A
                  new defined term “Collected and Available Cash” shall be inserted
                  in alphabetical order as follows: 

              

      

      

      ““Collected
        and Available Cash” means, at any time, the aggregate Dollar amount of all
        cash and cash equivalents constituting good and available funds of Holdings
        and
        its Subsidiaries, deposited into deposit accounts and concentrated into
        concentration accounts of Holdings and its Subsidiaries.” 

      

      
        	
              	(N)	
                The
                  defined term “Commercial Letter of Credit” shall be amended by
                  deleting the text “ordinary course of business” and replacing it with the
                  text “Ordinary Course of Business”.

              

      

      

      
        	
              	(O)	
                The
                  defined terms “Consolidated Net Income”, “Consolidated Net
                  Worth”, and “Consolidated Total Assets” shall be deleted.
                  

              

      

      

      
        	
              	(P)	
                A
                  new defined term “Costs of Goods Sold From Continuing Operations”
                  shall be inserted in alphabetical order as follows:
                  

              

      

      

      ““Costs
        of Goods Sold From Continuing Operations” means, for any period, costs of
        goods sold of Holdings and its Subsidiaries for such period determined on
        a
        consolidated basis in accordance with GAAP, but exclusive of costs of goods
        sold
        of the Wind-Down Business Units.” 

       

      
        
          	
                	(Q)	
                  A
                    new defined term “Costs of Goods Sold From Wind-Down Business
                    Units” shall be inserted in alphabetical order as follows:
                    

                

        

        

        ““Costs
          of Goods Sold From Wind-Down Business Units” means, for any period, costs of
          goods sold of the Wind-Down Business Units for such period determined in
          accordance with GAAP.” 

        

        
          	
                	(R)	
                  The
                    defined term “Disposition” shall be amended by adding an additional
                    sentence at the end of the definition thereof as follows:
                    

                

        

        

        ““For
          purposes of Section 2.08(a)(iii), a Disposition shall not include the
          sale, lease, conveyance or other disposition of property (other than real
          estate
          and other fixed assets) of the Wind-Down Business Units.” 

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	
                	
                  (S)

                	
                  The
                    defined term “EBITDA” shall be amended and restated in its entirety
                    as follows: 

                

        

         

      

    

    ““EBITDA
      From Continuing Operations” means, for any period, the sum of Gross Profit
      From Continuing Operations for such period minus Selling, General and
      Administrative Expenses From Continuing Operations for such period plus (to
      the
      extent deducted in determining Gross Profit From Continuing Operations pursuant
      to clause (b) of the definition thereof or to the extent included in Selling,
      General and Administrative Expenses From Continuing Operations, and without
      duplication) (i)
      depreciation expense and amortization expense for such period, (ii)
      restructuring, charges relating to the shutdown or relocation of facilities
      and
      other like charges and professional fees and costs attributable to the
      restructuring of Holdings’ consolidated operations; provided,
however, that such charges shall not exceed $700,000 per month,
(iii)
      other nonrecurring items attributable to the restructuring of Holdings’
consolidated operations as may from time to time be agreed to by the
      Administrative Agent and the Documentation Agent in their reasonable discretion,
      (iv) non-cash impairment charges of goodwill and other intangibles, (v) non-cash
      share based compensation costs; provided, however, that such costs
      shall not exceed $750,000 per month, (vi) severance and early retirement costs
      attributable to the restructuring of Holdings’ consolidated operations;
provided, however, that such costs shall not exceed $500,000 per
      month; (vii) the write-off or write-down of fixed assets attributable to the
      restructuring of Holdings’ consolidated operations; (viii)
      the write-off or write-down of operating leases attributable to the
      restructuring of Holdings’ consolidated operations; and (ix) fees and costs of
      attorneys and other professional advisors relating to the negotiation and
      documentation of the Second Amendment; all calculated for Holdings and its
      Subsidiaries on a consolidated basis for such period in accordance with GAAP.”

    

    
      	
            	
              (T)

            	
              A
                new defined term “EBITDA From Wind-Down Business Units” shall be
                inserted in alphabetical order as follows:

            

    

    

    ““EBITDA
      From Wind-Down Business Units” means, for any period, the sum of Gross
      Profit From Wind-Down Business Units for such period minus Selling,
      General and Administrative Expenses From Wind-Down Business Units for such
      period plus (to the extent deducted in determining Gross Profit From
      Wind-Down Business Units pursuant to clause (b) of the definition thereof or
      to
      the extent included in Selling, General and Administrative Expenses From
      Wind-Down Business Units, and without duplication) (i)
      depreciation expense and amortization expense for such period, (ii) non-cash
      impairment charges of goodwill and other intangibles, (iii) the write-off or
      write down of fixed assets at “wind down” locations; (iv) the write-off, write
      down or reserves for bad debt of operating leases at “wind down” locations; (v)
      the write-off or write down of receivables at “wind down” locations; and the
      (vi) the write-off or write down of inventory at “wind down” locations; all
      calculated for the Wind-Down Business Units for such period in accordance with
      GAAP.” 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
            	(U)	
              A
                new defined term “Eligible Accounts” shall be inserted in
                alphabetical order as follows: 

            

    

    

    ““Eligible
      Accounts” means those Accounts created by Holdings or any Guarantor in the
      ordinary course of its business, that arise out of such Person’s sale of goods
      or rendition of services, that comply with each of the representations and
      warranties respecting Eligible Accounts made in the Loan Documents, and that
      are
      not excluded as ineligible by virtue of one or more of the excluding criteria
      set forth below; provided, however, that such criteria may be
      revised from time to time by Administrative Agent in Administrative Agent’s
      Permitted Discretion to address the results of any audit performed by
      Administrative Agent from time to time after the Second Amendment Effective
      Date. Eligible Accounts shall not include the following (unless the
      Administrative Agent has imposed a reserve in the respect of the relevant
      Accounts), without duplication: 

    

    a.
      Accounts that the Account Debtor has failed to pay within 60 days of original
      due date or Accounts with selling terms of more than 30 days, 

     

    b.
      Accounts owed by an Account Debtor (or its Affiliates) where 20% or more of
      all
      Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible
      under clause (a) above, 

     

    c.
      Accounts with respect to which the Account Debtor is owed a credit by Holdings
      or any Guarantor, to the extent of such credit, 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    d.
      Accounts consisting of late fees or similar finance charges with respect to
      Accounts deemed ineligible under clause (a) above, 

     

    e.
      Accounts subject to a contra account or with respect to which the Account Debtor
      is otherwise a creditor of Holdings or any Guarantor, has or has asserted a
      right of setoff, or has disputed its obligation to pay all or any portion of
      the
      Account, to the extent of such contra account, claim, right of setoff, or
      dispute, 

     

    f.
      Accounts with respect to which the Account Debtor is subject to an Insolvency
      Proceeding, is not Solvent, has gone out of business, or as to which Holdings
      or
      any Guarantor has received notice of an imminent Insolvency Proceeding or a
      material impairment of the financial condition of such Account Debtor,

     

    g.
      Accounts with respect to which the Account Debtor has made a deposit or other
      advance payment, to the extent of such deposit or advance payment, 

     

    h.
      Accounts with respect to which the Account Debtor is owed premiums by Holdings
      or any Guarantor for WRAP insurance, to the extent of such premiums,

     

    i.
      Accounts arising from services subject to a performance bond or other Surety
      Instrument, 

     

    j.
      Accounts with respect to which the Account Debtor is an Affiliate of Holdings
      or
      an employee or agent of Holdings or any Affiliate of Holdings, 

     

    k.
      Accounts with cash-on-delivery, cash-in-advance or similar selling terms,

     

    l.
      Accounts with respect to which the Account Debtor is a school, school district
      or other similar payor, 

     

    m.
      Accounts with respect to which the Account Debtor is either (i) the United
      States or any department, agency, or instrumentality of the United States
      (exclusive, however, of Accounts with respect to which Holdings has complied,
      to
      the reasonable satisfaction of Administrative Agent, with the Assignment of
      Claims Act, 31 USC §3727), or (ii) any state of the United States, 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    n.
      Accounts with respect to which the Account Debtor has earned an allowance or
      rebate, to the extent of such allowance or rebate, 

     

    o.
      Accounts evidenced by a promissory note or other instrument, 

     

    p.
      Accounts evidencing billings in excess of costs, to the extent of such excess,
      

     

    q.
      Accounts arising in a transaction wherein goods are placed on consignment or
      are
      sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a
      bill
      and hold, or any other terms by reason of which the payment by the Account
      Debtor may be conditional, 

     

    r.
      Accounts that are not payable in Dollars, 

     

    s.
      Accounts with respect to which the Account Debtor either (i) does not maintain
      its chief executive office in the United States, or (ii) is not organized under
      the laws of the United States or any state thereof, or (iii) is the government
      of any foreign country or sovereign state, or of any state, province,
      municipality, or other political subdivision thereof, or of any department,
      agency, public corporation, or other instrumentality thereof, unless (y) the
      Account is supported by an irrevocable letter of credit reasonably satisfactory
      to Administrative Agent (as to form, substance, and issuer or domestic
      confirming bank) that has been delivered to Administrative Agent and is directly
      drawable by Administrative Agent, or (z) the Account is covered by credit
      insurance in form, substance, and amount, and by an insurer, reasonably
      satisfactory to Administrative Agent, 

     

    t.
      Accounts with respect to an Account Debtor whose total obligations owing to
      Holdings and the Guarantors exceed 20% (such percentage, as applied to a
      particular Account Debtor, being subject to reduction by Administrative Agent
      in
      its Permitted Discretion if the creditworthiness of such Account Debtor
      deteriorates) of all Eligible Accounts, to the extent of the obligations owing
      by such Account Debtor in excess of such percentage; provided,
however, that, in each case, the amount of Eligible Accounts that
      are
      excluded because they exceed the foregoing percentage shall be determined by
      Administrative Agent based on all of the otherwise Eligible Accounts
      prior to giving effect to any eliminations based upon the foregoing
      concentration limit, 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    u.
      Accounts, the collection of which Administrative Agent, in its Permitted
      Discretion, believes to be doubtful by reason of the Account Debtor’s financial
      condition, 

     

    v.
      Accounts that are not subject to a valid and perfected first priority Lien
      in
      favor of the Administrative Agent, 

     

    w.
      Accounts with respect to which (i) the goods giving rise to such Account have
      not been shipped and billed to the Account Debtor, or (ii) the services giving
      rise to such Account have not been performed and billed to the Account Debtor,
      

     

    x.
      Accounts with respect to which the Account Debtor is a Sanctioned Person or
      Sanctioned Entity” 

    

    
      	
            	
              (V)

            	
              A
                new defined term “Eligible Fixed Assets” shall be inserted in
                alphabetical order as follows: 

            

    

    

    ““Eligible
      Fixed Assets” means the fixed assets (other than real estate) of Holdings
      and the Guarantors that comply with each of the representations and warranties
      respecting Eligible Fixed Assets made in the Loan Documents and that are not
      excluded as ineligible by virtue of one or more of the excluding criteria set
      forth below; provided, however, that such criteria may be revised
      from time to time by Administrative Agent in Administrative Agent’s Permitted
      Discretion to address the results of any audit or appraisal performed by
      Administrative Agent from time to time after the Second Amendment Effective
      Date. An item of fixed assets shall not be included in Eligible Fixed Assets
      (unless the Administrative Agent has imposed a reserve in the respect of the
      relevant fixed assets), without duplication, if: 

    

    a.
      Holdings or any Guarantor does not have good, valid, and marketable title
      thereto,

     

    b.
      it is
      not located at one of the locations in the continental United States set forth
      on Schedule 1.01A, as such Schedule may be amended from time to time (or
      in-transit from one such location to another such location), 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    c.
      it is
      located on real property leased by Holdings or any Guarantor or in a contract
      warehouse, in each case, unless either (1) it is subject to a Collateral Access
      Agreement executed by the lessor or warehouseman, as the case may be, and unless
      it is segregated or otherwise separately identifiable from goods of others,
      if
      any, stored on the premises, or (2) a Rent Reserve has been imposed in respect
      of the Fixed Assets located at such location, 

     

    d.
      it is
      not subject to a valid and perfected first priority Lien in favor of the
      Administrative Agent. 

    

    
      	
            	
              (W)

            	
              A
                new defined term “Eligible Inventory” shall be inserted in
                alphabetical order as follows: 

            

    

    

    ““Eligible
      Inventory” means Inventory consisting of first quality finished goods held
      for sale in the ordinary course of Holdings’ or any Guarantor’s business, that
      complies with each of the representations and warranties respecting Eligible
      Inventory made in the Loan Documents, and that is not excluded as ineligible
      by
      virtue of one or more of the excluding criteria set forth below;
provided, however, that such criteria may be revised from time to
      time by Administrative Agent in Administrative Agent’s Permitted Discretion to
      address the results of any audit or appraisal performed by Administrative Agent
      from time to time after the Second Amendment Effective Date. In determining
      the
      amount to be so included, Inventory shall be valued at the lower of cost or
      market on a basis consistent with Holdings’ historical accounting practices. An
      item of Inventory shall not be included in Eligible Inventory if (unless the
      Administrative Agent has imposed a reserve in the respect of the relevant
      Inventory), without duplication: 

    

    a.
      Holdings or any Guarantor does not have good, valid, and marketable title
      thereto, 

     

    b.
      it is
      not located at one of the locations in the continental United States set forth
      on Schedule 1.01A, as such Schedule may be amended from time to time (or
      in-transit from one such location to another such location), 

     

    c.
      it is
      located on real property leased by Holdings or any Guarantor or in a contract
      warehouse, in each case, unless (1) it is subject to a Collateral Access
      Agreement executed by the lessor or warehouseman, as the case
      may
      be, and unless it is segregated or otherwise separately identifiable from goods
      of others, if any, stored on the premises, or (2) a Rent Reserve has been
      imposed in respect of the Inventory located at such location, 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    d.
      it is
      not subject to a valid and perfected first priority Lien in favor of the
      Administrative Agent, 

     

    e.
      it
      consists of goods returned or rejected by Holdings’ or any Guarantor’s
      customers, 

     

    f.
      it
      consists of goods that are obsolete or slow moving, restrictive or custom items,
      work-in-process (other than Truss and Millwork Inventory), raw materials, or
      goods that constitute spare parts, packaging and shipping materials, supplies
      used or consumed in Holdings’ or any Guarantor’s business, bill and hold goods,
      defective goods, “seconds,” or Inventory acquired on consignment, 

     

    g. it
      consists of non-perpetual Inventory, 

     

    h. it
      consists of special order Inventory, or 

     

    i. it
      consists of racks and pallets Inventory. 

    

    
      	
            	(X)	
              A
                new defined term “Eligible Truss and Millwork Inventory” shall be
                inserted in alphabetical order as follows:

            

    

     

    ““Eligible
      Truss and Millwork Inventory” means Eligible Inventory consisting of Truss
      and Millwork Inventory.” 

     

    
      	
            	(Y)	
              A
                new defined term “Excess Cash Flow” shall be inserted in
                alphabetical order as follows: 

            

    

     

    ““Excess
      Cash Flow” means, for any period, (i) EBITDA From Continuing Operations for
      such period minus (ii) the sum of (A) Capital Expenditures for such
      period to the extent permitted under Section 8.21, (B) taxes paid in cash
      during such period and (C) payments of principal and interest paid in cash
      during such period in respect of Indebtedness permitted under Section
      8.05, in each case, for Holdings and its Subsidiaries on a consolidated
      basis in accordance with GAAP.” 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	
            	(Z)	
              A
                new defined term “Fixed Assets Orderly Liquidation Value” shall be
                inserted in alphabetical order as follows:

            

    

    

    ““Fixed
      Assets Orderly Liquidation Value” means the Dollar amount that is estimated
      to be recoverable in an orderly liquidation of the Eligible Fixed Assets net
      of
      all associated costs and expenses of such liquidation, such Dollar amount to
      be
      as determined from time to time by an appraisal company selected by the
      Administrative Agent.” 

    

    
      	
            	(AA)	
              A
                new defined term “Gift Certificate Reserve” shall be inserted in
                alphabetical order as follows: 

               

              ““Gift
                Certificate Reserve” means, as of any date of determination, a Dollar
                amount equal to Holdings’ and its Subsidiaries’ accrued liabilities for
                outstanding gift certificates as of such date.”

            

    

    

    
      	
            	(BB)	
              A
                new defined term “Gross Profit From Continuing Operations” shall be
                inserted in alphabetical order as follows: 

               

              ““Gross
                Profit From Continuing Operations” means, for any period, (a) Total
                Sales From Continuing Operations for such period minus (b) Costs of
                Goods Sold From Continuing Operations for such period.”
                

            

    

    

    
      	
            	(CC)	
              A
                new defined term “Gross Profit From Wind-Down Business Units” shall
                be inserted in alphabetical order as follows: 

               

              ““Gross
                Profit From Wind-Down Business Units” means, for any period, (a) Total
                Sales From Wind-Down Business Units for such period minus (b) Costs
                of Goods Sold From Wind-Down Business Units for such period.”
                

            

    

    

    
      	
            	(DD)	
              The
                defined term “Indebtedness” shall be amended by deleting the text
                “ordinary course of business” and replacing it with the text “Ordinary
                Course of Business”. 

            

    

    

    
      	
            	(EE)	
              A
                new defined term “Interest Coverage Ratio” shall be inserted in
                alphabetical order as follows: 

               

              ““Interest
                Coverage Ratio” means, as of the last day of any fiscal quarter, the
                ratio of (i) EBITDA From Continuing Operations to (ii) Interest Expense
                paid in cash, in each case, for the period of four fiscal quarters
                ended
                on such date.” 

            

    

     

    
      	
            	(FF)	
              A
                new defined term “Inventory” shall be inserted in alphabetical
                order as follows: 

            

    

    

    ““Inventory”
      means inventory (as that term is defined in the
      UCC).” 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      
        	 	
                (GG)
                  

              	
                A
                  new defined term “Inventory Vendor Discount Reserve” shall be
                  inserted in alphabetical order as follows: 

                 

                ““Inventory
                  Vendor Discount Reserve” means, as of any date of determination, (i)
                  100% minus the Truss and Millwork Inventory Percentage
                  multiplied by (ii) the amount of reserves that Holdings has
                  recorded in its books as of such date, in accordance with GAAP,
                  in respect
                  of vendor discounts earned on Holdings’ and its Subsidiaries’ Inventory.”
                  

              

      

      

      
        	 	
                (HH)
                  

              	
                A
                  new defined term “Inventory Volume Rebate Reserve” shall be
                  inserted in alphabetical order as follows: 

                 

                ““Inventory
                  Volume Rebate Reserve” means, as of any date of determination, (i)
                  100% minus the Truss and Millwork Inventory Percentage
                  multiplied by (ii) the amount of reserves that Holdings has
                  recorded in its books as of such date, in accordance with GAAP,
                  in respect
                  of rebates earned by vendors relating to volume purchases of Holdings’ and
                  its Subsidiaries’ Inventory.” 

              

      

      

      
        	 	
                (II)
                  

              	
                A
                  new defined term “L/C Cash Collateral Account” shall be inserted in
                  alphabetical order as follows: 

                 

                ““L/C
                  Cash Collateral Account” means one or more non-interest bearing
                  deposit accounts held at Wells Fargo Bank, N.A. in the name of
                  the
                  Administrative Agent, for itself and on behalf of and for the benefit
                  of
                  the L/C Issuer and the Revolving Lenders, in which cash shall from
                  time to
                  time be deposited pursuant to the Loan Documents as additional
                  collateral
                  for the L/C Obligations. 

              

      

      

      
        	 	
                (JJ)
                  

              	
                A
                  new defined term “Leverage Ratio” shall be inserted in alphabetical
                  order as follows: 

              

      

      

      ““Leverage
        Ratio” means, as of the last day of any fiscal quarter, the ratio of (i)
        Total Funded Debt on such date to (ii) EBITDA From Continuing Operations
        for the
        period of four fiscal quarters ended on such date.” 

      

      
        	
              	(KK)	
                A
                  new defined term “Liquidity” shall be inserted in  alphabetical
                  order as follows: 

              

      

      

      ““Liquidity”
        means, at any time, a Dollar amount equal to (i)(A) the Borrowing Base then
        in
        effect plus (B) (to the extent a positive number) (1) the Cash Balance at
        such time minus (2) $15,000,000, minus (ii) the Effective Amount
        of all Revolving Loans, Swingline Loans and L/C Obligations at such time.”

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

      
        	 	
                (LL)

              	
                A
                  new defined term “OFAC” shall be inserted in alphabetical order as
                  follows: 

              

      

      

      ““OFAC”
        means The Office of Foreign Assets Control of the U.S. Department of the
        Treasury.” 

      

      
        	 	
                (MM)

              	
                A
                  new defined term “Ordinary Course of Business” shall be inserted in
                  alphabetical order as follows: 

              

      

      

      ““Ordinary
        Course of Business” means, in respect of any transaction involving a Loan
        Party, the ordinary course of such Loan Party’s business, and undertaken by such
        Loan Party in good faith and not for purposes of evading any covenant or
        restriction in any Loan Document.” 

      

      
        	 	
                (NN)

              	
                A
                  new defined term “Permitted Discretion” shall be inserted in
                  alphabetical order as follows: 

              

      

      

      ““Permitted
        Discretion” means a determination made in the exercise of reasonable (from
        the perspective of a secured lender) business judgment.” 

      

      
        	 	
                (OO)

              	
                The
                  defined term “Permitted Swap Obligations” shall be amended by (A)
                  inserting the word “Specified” before the phrase
                  “Swap Contracts”, and (B) deleting the text “ordinary
                  course of business” and replacing it with the text “Ordinary
                  Course of Business.” 

              

      

      

      
        	 	
                (PP)

              	
                A
                  new defined term “PIK Interest” shall be inserted in alphabetical
                  order as follows: 

              

      

      

      ““PIK
        Interest” has the meaning specified in Section
        2.10(a).”

      

      
        	 	
                (QQ)

              	
                A
                  new defined term “PIK Margin” shall be inserted in alphabetical
                  order as follows: 

              

      

      

      ““PIK
        Margin” means 2.75%.” 

      

      
        	 	
                (RR)

              	
                A
                  new defined term “Rent Reserve” shall be inserted in alphabetical
                  order as follows: 

                 

                ““Rent
                  Reserve” means, as of any date of determination and without
                  duplication for multiple classes of eligible assets held at any
                  particular
                  location, a Dollar amount equal to (i) three multiplied by (ii) the
                  aggregate monthly rent payable by Holdings and its Subsidiaries
                  in respect
                  of all real property leased by Holdings and its Subsidiaries and
                  all
                  contract warehouses, in each case, where Eligible Inventory or
                  Eligible
                  Fixed Assets are located.” 

              

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (SS)

              	
                A
                  new defined term “Sanctioned Entity” shall be inserted in
                  alphabetical order as follows: 

              

      

      

      ““Sanctioned
        Entity” means (a) a country or a government of a country, (b) an agency of
        the government of a country, (c)
        an
        organization directly or indirectly controlled by a country or its government,
        (d) a Person resident in or determined to be resident in a country, in each
        case, that is subject to a country sanctions program administered and enforced
        by OFAC.” 

      

      
        	 	
                (TT)

              	
                A
                  new defined term “Sanctioned Person” shall be inserted in
                  alphabetical order as follows: 

              

      

      

      ““Sanctioned
        Person” means a person named on the list of Specially Designated Nationals
        maintained by OFAC.” 

      

      
        	 	
                (UU)

              	
                A
                  new defined term “Solvent” shall be inserted in alphabetical order
                  as follows: 

              

      

      

      ““Solvent”
        means, with respect to any Person on a particular date, that, at fair
        valuations, the sum of such Person’s assets is greater than all of such Person’s
        debts.” 

      

      
        	 	
                (VV)

              	
                A
                  new defined term “Second Amendment” shall be inserted in
                  alphabetical order as follows: 

              

      

      

      ““Second
        Amendment” shall mean the Second Amendment to Second Amended and Restated
        Credit Agreement and Waiver dated as of September __, 2008, among Holdings,
        the
        Guarantors, the Lenders and the Administrative Agent.” 

      

      
        	 	
                (WW)
                  

              	
                A
                  new defined term “Second Amendment Effective Date” shall be
                  inserted in alphabetical order as follows:

              

      

      

      ““Second
        Amendment Effective Date” means the “Effective
        Date” under and as defined in the Second Amendment.” 

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      

        
          	 	
                  (XX)

                	
                  A
                    new defined term “Selling, General and Administrative Expenses From
                    Continuing Operations” shall be inserted in alphabetical order as
                    follows: 

                

        

        

        ““Selling,
          General and Administrative Expenses From Continuing
          Operations” means, for any period, selling, general and administrative expenses
          of Holdings and its Subsidiaries for such period determined on a consolidated
          basis in accordance with GAAP, but exclusive of selling, general and
          administrative expenses of the Wind-Down Business Units.” 

        

        
          	 	
                  (YY)

                	
                  A
                    new defined term “Selling, General and Administrative Expenses From
                    Wind-Down Business Units” shall be inserted
                    in alphabetical order as follows:

                

        

         

        ““Selling,
          General and Administrative Expenses From Wind-Down
          Business Units” means, for any period, selling, general and administrative
          expenses of the Wind-Down Business Units for such period determined in
          accordance with GAAP.” 

        

        
          	 	
                  (ZZ)

                	
                  The
                    defined term “Subsidiary” shall be amended by inserting the text
                    “7.19, ” immediately before the text “8.03”.
                    

                

        

        

          
            	 	
                    (AAA)
                      

                  	
                    The
                      defined term “Surety Bond Reserve” shall be deleted.
                      

                  

          

          

          
            	 	
                    (BBB)
                      

                  	
                    A
                      new defined term “Swap Provider” shall be inserted in alphabetical
                      order as follows: 

                  

          

          

          ““Swap
            Provider” means any Person that at the time such Person entered into a
            Specified Swap Contract with Holdings was a Lender or any Affiliate of
            any
            Lender. 

          

          
            	 	
                    (CCC)
                      

                  	
                    A
                      new defined term “Total Funded Debt” shall be inserted in
                      alphabetical order as follows: 

                  

          

          

          ““Total
            Funded Debt” means, as of any date of determination, all (i) indebtedness
            for borrowed money as of such date (excluding any capitalized interest),
            plus(ii)
            obligations in respect of Capital Leases as of such date, in each case,
            of
            Holdings and its Subsidiaries on a consolidated basis in accordance with
            GAAP,
            including all Term B Loans, Revolving Loans, Swingline Loans and L/C
            Obligations.” 

           

          
            
              
              

            

            
              17

              
                

              

            

            
              
              

            

          

           

          
            	
                  	(DDD)	
                    A
                      new defined term “Total Sales From Continuing Operations” shall be
                      inserted in alphabetical order as follows:
                      

                  

          

           

          ““Total
            Sales From Continuing Operations” means, for any period, total sales of
            Holdings and its Subsidiaries for such period determined on a consolidated
            basis
            in accordance with GAAP, but exclusive of total sales of the Wind-Down
            Business
            Units.” 

          

          
            	 	
                    (EEE)
                      

                  	
                    A
                      new defined term “Total Sales From Wind-Down Business Units” shall
                      be inserted in alphabetical order as follows:
                      

                  

          

           

          ““Total
            Sales From Wind-Down Business Units” means, for any period, total sales of
            the Wind-Down Business Units for such period determined in accordance
            with
            GAAP.” 

          

          
            	 	
                    (FFF)

                  	
                    A
                      new defined term “Truss and Millwork Inventory” shall be inserted
                      in alphabetical order as follows: 

                  

          

          

          ““Truss
            and Millwork Inventory” means Inventory consisting of trusses and millwork.”

          

          
            	 	
                    (GGG)
                      

                  	
                    A
                      new defined term “Truss and Millwork Inventory Percentage” shall be
                      inserted in alphabetical order as follows:
                      

                  

          

           

          ““Truss
            and Millwork Inventory Percentage” means, as of any date of determination,
            the percentage of Holdings’ and its Subsidiaries’ total Inventory consisting of
            Truss and Millwork Inventory as of such date.” 

          

          
            	 	
                    (HHH)
                      

                  	
                    A
                      new defined term “Truss and Millwork Vendor Discount Reserve” shall
                      be inserted in alphabetical order as follows:

                  

          

          

          ““Truss
            and Millwork Vendor Discount Reserve” means, as of any date of
            determination, (i) the Truss and Millwork Inventory Percentage multiplied
            by (ii) the amount of reserves that Holdings has recorded in its books
            as of
            such date, in accordance with GAAP, in respect of vendor discounts earned
            on
            Holdings’ and its Subsidiaries’ Inventory.” 

          

          
            	 	
                    (III)

                  	
                    A
                      new defined term “Truss and Millwork Volume Rebate Reserve” shall
                      be inserted in alphabetical order as follows: 

                     

                    ““Truss
                      and Millwork Volume Rebate Reserve” means, as of any date of
                      determination, (i) the Truss and Millwork Inventory Percentage
                      multiplied by (ii) the amount of reserves that Holdings has
                      recorded in its books as of such date, in accordance with GAAP,
                      in respect
                      of rebates earned by vendors relating to volume purchases of
                      Holdings’ and
                      its Subsidiaries’ Inventory.” 

                  

          

           

          
            
              
              

            

            
              18

              
                

              

            

            
              
              

            

          

           

          
            	 	
                    (JJJ)

                  	
                    A
                      new defined term “Warranty Reserve” shall be inserted in
                      alphabetical order as follows: 

                  

          

          

          ““Warranty
            Reserve” means, as of any date of determination, the amount of reserves that
            Holdings has recorded in its books as of such date, in accordance with
            GAAP, in
            respect of actual or estimated warranty claims relating to products or
            services
            provided by Holdings and its Subsidiaries.” 

          

          
            	 	
                    (KKK)
                      

                  	
                    A
                      new defined term “Wind-Down Business Units” shall be inserted in
                      alphabetical order as follows: 

                  

          

          

          ““Wind-Down
            Business Units” means the business units identified on Schedule 1.01B.”

          

          
            	 	
                    (LLL)
                      

                  	
                    A
                      new defined term “Wind-Down of Non-Core Operations” shall be
                      inserted in alphabetical order as follows:
                      

                  

          

           

          ““Wind-Down
            of Non-Core Operations” means the termination or transfer of all employees
            and the cessation of business operations (within the meaning of Section
            165 of
            the Code) of the Wind-Down Business Units.” 

        

      

    

    

      
        	 	
                (ii)

              	
                Section
                  2.01 of the Credit Agreement (captioned “Amounts and Terms of
                  Commitment and Loans”) shall be amended by amending and restating the
                  first two sentences of Section 2.01(b) as follows:
                  

              

      

      

      “On
        the
        terms and subject to the conditions of this Agreement, each Revolving Lender
        severally agrees to advance to Holdings from time to time during the period
        beginning on the Effective Date and ending on the Revolving Loan Maturity
        Date
        such loans (each such loan, a “Revolving Loan”) in Dollars as Holdings
        may request under this Section 2.01(b); provided, however,
        that (i) after giving effect to any Borrowing of Revolving Loans, (A) the
        Effective Amount of all Revolving Loans and Swingline Loans and the Effective
        Amount of all L/C Obligations shall not exceed the combined Revolving
        Commitments of the Revolving Lenders, (B) the Effective Amount of the Revolving
        Loans of any Revolving Lender plus the participation of such Revolving Lender
        in
        the Effective Amount of all L/C Obligations and in the Effective Amount of
        all
        Swingline Loans shall not at any time exceed such Revolving Lender’s Revolving
        Commitment and (C) the Effective Amount of all Revolving Loans, Swingline
        Loans
        and L/C Obligations shall not exceed the Borrowing Base then in effect. Within
        the limits of each Revolving Lender’s Revolving Commitment, and subject to the
        other terms and conditions hereof, Holdings may borrow under this Section
        2.01(b), prepay under Section 2.07 and reborrow under this Section
        2.01(b).” 

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (iii)

              	
                Section
                  2.05 of the Credit Agreement (captioned “Termination or Reduction of
                  Commitments”) shall be amended by deleting the parenthetical “(except
                  pursuant to Section 2.01(f))”. 

              

      

      

      
        	 	
                (iv)

              	
                Section
                  2.06 of the Credit Agreement (captioned “Swingline Loans”) shall be
                  amended by amending and restating the proviso in the first sentence
                  thereof as follows: 

              

      

      

      “provided
        that at no time shall (i) the sum of the Effective Amount of all Swingline
        Loans
plus the Effective Amount of all Revolving Loans plus the
        Effective Amount of all L/C Obligations exceed the combined Revolving
        Commitments of the Revolving Lenders, (ii) the Effective Amount of all Swingline
        Loans exceed the Swingline Commitment and (iii) the Effective Amount of all
        Revolving Loans, Swingline Loans and L/C Obligations exceed the Borrowing
        Base
        then in effect.” 

      

      
        	
              	(v)	
                Section
                  2.08 of the Credit Agreement (captioned “Mandatory Prepayments
                  of Loans; Mandatory Commitment Reductions”)
                  shall be amended as follows:

              

      

    

     

    

      
        	 	
                (A)

              	
                Section
                  2.08(a)(ii) shall be amended and restated in its entirety as follows:
                  

              

      

      

      “(ii)
        If
        at any time the Effective Amount of all Revolving Loans and Swingline Loans
        plus the Effective Amount of all L/C Obligations exceeds the combined
        Revolving Commitments of the Revolving Lenders, Holdings shall immediately,
        and
        without notice or demand, prepay the outstanding principal amount of the
        Revolving Loans, Swingline Loans and L/C Borrowings by an amount equal to
        the
        applicable excess in the following order of priority: first, Holdings shall
        prepay any L/C Borrowings then outstanding up to an amount equal to the
        applicable excess; second, Holdings shall prepay the Swingline Loans then
        outstanding up to an amount equal to any remaining excess; and third, Holdings
        shall prepay the Revolving Loans then outstanding up to an amount equal to
        any
        remaining excess.” 

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (B)

              	
                Section
                  2.08(a)(iii) shall be amended and restated in its entirety as follows:
                  

              

      

    

     

    
      “(iii)
        If
        Holdings, the Company or any other Subsidiary shall at any time make or agree
        to
        make a Disposition, then (A) Holdings shall promptly notify the Administrative
        Agent of such Disposition (including notice of the amount of the estimated
        Net
        Proceeds to be received by Holdings, the Company or such other Subsidiary
        in
        respect thereof), and (B) promptly upon, and in no event later than one (1)
        Business Day after, receipt by Holdings, the Company or such other Subsidiary
        of
        the Net Proceeds of such Disposition, Holdings shall prepay the Term B Loans
        in
        an aggregate amount equal to 100% of the amount of the Net Proceeds of such
        Disposition; provided, however, that with respect to any
        Non-Wholly-Owned Subsidiary, Holdings shall only be required to prepay the
        Term
        B Loans as provided above in an amount equal to the ratable portion of the
        Net
        Proceeds received by such Non-Wholly-Owned Subsidiary based on Holdings’ direct
        or indirect interest in such Non-Wholly-Owned Subsidiary; and provided
further, however, that if the Net Proceeds of any Disposition
        are less than $100,000, then Holdings may delay the prepayment of the Term
        B
        Loans required under this Section 2.08(a)(iii) until such time as aggregate
        Net
        Proceeds from Dispositions in respect of which a prepayment under this Section
        2.08(a)(iii) has not been made exceed $100,000.” 

      

      
        	 	
                (C)

              	
                Section
                  2.08(a)(v) shall be amended and restated in its entirety as follows:
                  

              

      

      

      “(v)
        If
        at any time the Effective Amount of all Revolving Loans and Swingline Loans
        plus the Effective Amount of all L/C Obligations exceeds the Borrowing
        Base then in effect, Holdings shall immediately, and without notice or demand,
        prepay the outstanding principal amount of the Revolving Loans, Swingline
        Loans
        and L/C Borrowings and Cash Collateralize the L/C Obligations by an amount
        equal
        to the applicable excess in the following order of priority: first, Holdings
        shall prepay any L/C Borrowings then outstanding up to an amount equal to
        the
        applicable excess; second, Holdings shall prepay the Swingline Loans then
        outstanding up to an amount equal to any remaining excess; third, Holdings
        shall
        prepay the Revolving Loans then outstanding up to an amount equal to any
        remaining excess; and fourth, Holdings shall Cash Collateralize the L/C
        Obligations then outstanding up to an amount equal to any remaining excess
        in
        accordance with Section 3.07.” 

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (D)

              	
                Section
                  2.08(a)(vii) shall be amended by (1) re-designating such Section
                  as
                  Section 2.08(a)(xi) and (2) amending and restating such Section
                  in its
                  entirety as follows: 

              

      

      

      “(xi)
        Any
        prepayments pursuant to this Section 2.08 shall be subject to Section
        4.04 and applied, first, to any Base Rate Loans then outstanding and then
        to
        Offshore Rate Loans with the shortest Interest Periods remaining. Holdings
        shall
        pay, together with each prepayment under this Section 2.08, accrued
        interest (other than PIK Interest, except as otherwise provided in Section
        2.10(b)) on the amount of any Loans prepaid and any amounts required
        pursuant to Section 4.04. Prepayments of Term B Loans shall be applied to
        reduce the Term B Loans with respect to each remaining installment of principal
        pro rata in accordance with the then remaining installments payable under
        Section 2.09(a).” 

      

      
        	 	
                (E)

              	
                New
                  Sections 2.08(a)(vii), 2.08(a)(viii), 2.08(a)(ix) and 2.08(a)(x)
                  shall be
                  inserted as follows: 

              

      

      

      “(vii)
        If
        Holdings, the Company or any other Subsidiary shall at any time or from time
        to
        time receive cash, checks or other cash equivalent financial instruments
        in
        respect of the BMCI Liquidation (other than any such items received on or
        prior
        to the Second Amendment Effective Date and applied to prepay the Term B Loans)
        (“BMCI Liquidation Proceeds”), then promptly upon, and in no event later
        than one (1) Business Day after, receipt by Holdings, the Company or such
        other
        Subsidiary of BMCI Liquidation Proceeds, Holdings shall prepay the outstanding
        principal amount of the Revolving Loans, Swingline Loans and L/C Borrowings
        and
        Cash Collateralize the Obligations by an aggregate amount equal to 100% of
        the
        Dollar amount of such BMCI Liquidation Proceeds in the following order of
        priority: first, Holdings shall prepay any L/C Borrowings to the extent L/C
        Borrowings in a sufficient amount are then outstanding; second, Holdings
        shall
        prepay the Swingline Loans to the extent Swingline Loans in a sufficient
        amount
        are then outstanding; third, Holdings shall prepay the Revolving Loans to
        the
        extent Revolving Loans in a sufficient amount are then outstanding; and fourth,
        Holdings shall Cash Collateralize the Obligations in accordance with Section
        2.17. 

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      (viii)
        If
        Holdings, the Company or any other Subsidiary shall at any time or from time
        to
        time receive cash, checks or other cash equivalent financial instruments
        from
        any Governmental Authority in respect of the anticipated federal tax refunds
        for
        tax years 2006 and 2007 and the state tax refunds for a tax year 2008 net
        operating loss carryback (all such amounts net of settlement payments for
        open
        audit years, “Tax Refund Proceeds”), then promptly upon, and in no event
        later than one (1) Business Day after, receipt by Holdings, the Company or
        such
        other Subsidiary of Tax Refund Proceeds, Holdings shall (A) prepay the Term
        B
        Loans in an aggregate amount equal to 70% of the Dollar amount of such Tax
        Refund Proceeds and (B) prepay the outstanding principal amount of the Revolving
        Loans, Swingline Loans and L/C Borrowings and Cash Collateralize the Obligations
        by an aggregate amount equal to 30% of the Dollar amount of such Tax Refund
        Proceeds in the following order of priority: first, Holdings shall prepay
        any
        L/C Borrowings to the extent L/C Borrowings in a sufficient amount are then
        outstanding; second, Holdings shall prepay the Swingline Loans to the extent
        Swingline Loans in a sufficient amount are then outstanding; third, Holdings
        shall prepay the Revolving Loans to the extent Revolving Loans in a sufficient
        amount are then outstanding; and fourth, Holdings shall Cash Collateralize
        the
        Obligations in accordance with Section 2.17. 

      

      (ix)
        If
        as of the close of business on any Business Day the balance in the Cash
        Collateral Account on such day exceeds $25,000,000, then Holdings shall within
        one (1) Business Day, and without notice or demand, prepay the outstanding
        principal amount of the Revolving Loans, Swingline Loans and L/C Borrowings
        and
        Cash Collateralize the Obligations by an amount equal to the applicable excess
        in the following order of priority: first, Holdings shall prepay any L/C
        Borrowings then outstanding up to an amount equal to the applicable excess;
        second, Holdings shall prepay the Swingline Loans then outstanding up to
        an
        amount equal to any remaining excess; third, Holdings shall prepay the Revolving
        Loans then outstanding
        up to an amount equal to any remaining excess; and fourth, Holdings shall
        Cash
        Collateralize the Obligations in accordance with Section 2.17.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      (x)
        Following the end of each fiscal year of Holdings, commencing with the fiscal
        year ending December 31, 2010, Holdings shall prepay the Term B Loans in
        an
        aggregate amount equal to 75% of Excess Cash Flow for such fiscal year. Each
        prepayment pursuant to this Section 2.08(a)(x) shall be made on or prior
        to the date that is five Business Days after the date on which financial
        statements are delivered pursuant to Section 7.01 with respect to the
        fiscal year for which Excess Cash Flow is being calculated.” 

      

      
        	 	
                (F)

              	
                Section
                  2.08(c) shall be amended by deleting the text “Section
                  2.01(a)(iii), 2.01(a)(iv), 2.01(a)(v) or 2.01(a)(vi)”
                  and replacing with the text “Section 2.08(a).”
                  

              

      

    

     

    
      	
            	(vi)	
              Section
                2.10 of the Credit Agreement (captioned “Interest”) shall be
                amended as follows: 

            

    

    

      
        	 	
                (A)

              	
                Section
                  2.10(a) shall be amended and restated in its entirety as follows:
                  

              

      

      

      “(a)
        (i)
        Subject to Section 2.10(c) below, each Revolving Loan and Term B Loan
        shall bear interest on the outstanding principal amount thereof from the
        applicable Borrowing Date at a rate per annum equal to (A) the greater of
        the
        Offshore Rate and 3.00% or (B) the Base Rate, as the case may be (and subject
        to
        Holdings’ right to convert to other Types of Loans under Section 2.04),
        plus the Applicable Margin; and (ii) each Swingline Loan shall bear interest
        on
        the outstanding principal amount thereof from the applicable Borrowing Date
        at a
        rate per annum equal to the Base Rate plus the Applicable Margin (for
        Base Rate Loans), or at such other rate as may be agreed to by the Swingline
        Lender. Each Term B Loan shall bear additional interest on the outstanding
        principal amount thereof from the Second Amendment Effective Date at a rate
        per
        annum equal to the PIK Margin (such additional interest, the “PIK
Interest”).”
        

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (B)

              	
                Section
                  2.10(b) shall be amended and restated in its entirety as follows:
                  

              

      

      

      “(b)
        Interest (other than PIK Interest) on each Revolving Loan, Term B Loan and
        Swingline Loan shall be paid in arrears on each Interest Payment Date. PIK
        Interest on each Term B Loan shall be paid in arrears on the date of maturity
        of
        the Term B Loans (whether at maturity, upon acceleration, or otherwise).
        Interest shall also be paid on the date of any prepayment of the Loans under
        Section 2.07 or Section 2.08 for the portion of such Loans so
        prepaid and upon payment (including prepayment) in full thereof, and on the
        Revolving Loan Maturity Date or Term B Loan Maturity Date, as applicable;
        provided, however, that PIK Interest need not be paid on the date
        of any prepayment of the Loans under Section 2.07 or Section 2.08
        except upon payment (including prepayment) in full of the Term B Loans. During
        the existence of any Event of Default, interest (other than PIK Interest)
        shall
        be paid on demand of the Administrative Agent at the request or with the
        consent
        of the Majority Lenders.” 

    

    

      
        	
              	(vii)	
                Section
                  2.11 of the Credit Agreement (captioned “Fees”) shall be
                  amended
                  by (A) amending Section 2.11(a) to (1) delete the word “and”
                  immediately prior to clause (v) and replacing it with a comma,
                  and (2) inserting a new clause (vi) immediately prior to the
                  parenthetical at the end of such Section as follows: “and (vi) that
                  certain letter agreement among Holdings, Wells Fargo and JPMorgan
                  Chase
                  Bank, N.A. dated [September 26], 2008”, and (B) adding a new Section
                  2.11(c) as follows:

              

      

      

      “(c)
        In
        lieu of and in substitution for PIK Interest, each Term B Lender may, by
        irrevocable written election made to the Administrative Agent on or prior
        to the
        date that is 30 days after the Second Amendment Effective Date, elect to
        have
        its Term B Loans accrue a daily fee from the Second Amendment Effective Date
        at
        a rate per annum equal to the PIK Margin (the “PIK Fee”). The PIK Fee on
        each Term B Loan shall be paid in arrears on the date of maturity of the
        Term B
        Loans (whether at maturity, upon acceleration, or otherwise) and upon payment
        (including prepayment) in full of the Term B Loans.” 

       

    

    
      	
            	(viii)	
              A
                new Section 2.16 shall be added to the Credit Agreement as follows:
                

            

    

    

    “2.16
      Warrants. On the Second Amendment Effective Date, Holdings shall issue to
      each Lender warrants in substantially the form of Exhibit L hereto to
      purchase such Lender’s Proportionate Share of 2,824,732 shares of Holdings’
common stock, par value $0.001 per share.” 

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	
            	(ix)	
              A
                new Section 2.17 shall be added to the Credit Agreement as follows:
                

            

    

    

    “2.17
      Cash Collateral. Upon the occurrence of the circumstances described in
Sections 2.08(a)(vii), (viii) or (ix) requiring Holdings to
      Cash Collateralize the Obligations, then Holdings shall immediately Cash
      Collateralize the Obligations in the applicable amount required under
Sections 2.08(a)(vii), (viii) and (ix). Cash collateral
      held under this Section 2.17 shall be maintained in the Cash Collateral
      Account pursuant to the Security Agreement. Unless an Event of Default has
      occurred and is continuing, Holdings shall have access to the funds in the
      Cash
      Collateral Account and Holdings may from time to time give instructions to
      the
      depository bank directing the disposition of the funds in the Cash Collateral
      Account. If an Event of Default has occurred and is continuing, Holdings shall
      not have access to the funds in the Cash Collateral Account and may not direct
      the disposition of the funds in the Cash Collateral Account, except with the
      consent of the Administrative Agent.” 

    

    
      	
            	(x)	
              Section
                3.01 of the Credit Agreement (captioned “The Letter of Credit
                Subfacility”) shall be amended by amending and restating the
                proviso in the first sentence of Section 3.01(a) as
                follows:

            

    

     

    “provided
      that the L/C Issuer shall not be obligated to Issue, and no Revolving Lender
      shall be obligated to participate in, any Letter of Credit if such Letter of
      Credit is not denominated in Dollars or if as of the date of Issuance of such
      Letter of Credit (the “Issuance Date”) and after giving effect thereto
      (w) the Effective Amount of all L/C Obligations plus the Effective Amount
      of all Revolving Loans and Swingline Loans shall exceed the combined Revolving
      Commitments, (x) the participation of any Revolving Lender in the Effective
      Amount of all L/C Obligations and in the Effective Amount of all Swingline
      Loans
plus the Effective Amount of the Revolving Loans of such Revolving Lender
      shall exceed such Revolving Lender’s Revolving Commitment, (y) the Effective
      Amount of L/C Obligations shall exceed the L/C Commitment or (z)
      the
      Effective Amount of all Revolving Loans, Swingline Loans and L/C Obligations
      shall exceed the Borrowing Base then in effect.” 

    

    
      	
            	(xi)	
              Section
                3.02 of the Credit Agreement (captioned “Issuance, Amendment and
                Renewal of Letters of Credit”) shall be amended by deleting the text
                “clauses (x) through (z)” in Section 3.02(b) and replacing it with the
                text “clauses (w) through (z)”. 

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	
            	(xii)	
              Section
                3.07 of the Credit Agreement (captioned “Cash Collateral
                Pledge”)
                shall be amended and restated in its entirety as
                follows:

            

    

     

    “3.07
      Cash
      Collateral Pledge.
      (a)
      Upon the request of the Administrative Agent, if the L/C Issuer has honored
      any
      full or partial drawing request on any Letter of Credit and such drawing has
      resulted in an L/C Borrowing hereunder, or (b) if, as of the Revolving Loan
      Maturity Date, any Letters of Credit may for any reason remain outstanding
      and
      partially or wholly undrawn, or (c) the occurrence of the circumstances
      described in Sections 2.08(a)(i) or (v) requiring Holdings to Cash
      Collateralize Letters of Credit, then Holdings shall immediately Cash
      Collateralize the L/C Obligations in an amount equal to such L/C Obligations,
      or
      in such other applicable amount required under Sections 2.08(a)(i) and
(v). Holdings shall, to the extent necessary, make such additional
      pledges from time to time as shall be necessary to ensure that all such L/C
      Obligations remain at all times fully Cash Collateralized. Cash collateral
      held
      under this Section 3.07 or Section 9.02 shall be maintained in the
      L/C Cash Collateral Account pursuant to the Security Agreement. If L/C
      Obligations are Cash Collateralized pursuant to Section 2.08(a)(v) and at
      any time thereafter the Borrowing Base then in effect exceeds the Effective
      Amount of all Revolving Loans, Swingline Loans and L/C Obligations, then
      Holdings may request in writing that the Administrative Agent release funds
      from
      the L/C Cash Collateral Account in an amount up to the Dollar amount of the
      applicable excess, and promptly following its receipt of such written request
      the Administrative Agent shall, subject to the other provisions of this
      Agreement and the other Loan Documents, so release such funds in such Dollar
      amount, provided that no Default then exists and the Administrative Agent
      has received a certification to such effect from a Responsible Officer of
      Holdings.” 

    

    
      	
            	(xiii)	
              Section
                5.03 of the Credit Agreement (captioned “Conditions to All Credit
                Extensions”) shall be amended by (A) deleting the word “and” at the
                end of Section 5.03(d), (B) replacing the period at the end of Section
                5.03(e) with the text “; and” and (C) adding a new Section 5.03(f) as
                follows: 

            

    

    

    “(f)
      No Cash Collateral Account Balance. Unless waived by the Administrative
      Agent, the balance in the Cash Collateral Account shall be zero.” 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
      	
            	(xiv)	
              Section
                6.12 of the Credit Agreement (captioned “Environmental Matters”)
                shall be amended by deleting the text “ordinary course of business” and
                replacing it with the text “Ordinary Course of Business”.
                

            

    

    

    
      	
            	(xv)	
              A
                new Section 6.23 shall be added to the Credit Agreement as follows:

            

    

     

    “6.23
      Eligible
      Accounts.
      As to
      each Account that is identified by Holdings as an Eligible Account in a
      Borrowing Base Certificate submitted to the Administrative Agent, such Account
      is (a) a bona fide existing payment obligation of the applicable Account Debtor
      created by the sale and delivery of Inventory or the rendition of services
      to
      such Account Debtor in the Ordinary Course of Business of Holdings or any
      Guarantor, (b) owed to Holdings or a Guarantor, and (c) not excluded as
      ineligible by virtue of one or more of the excluding criteria set forth in
      the
      definition of Eligible Accounts.” 

    

    
      	
            	(xvi)	
              A
                new Section 6.24 shall be added to the Credit Agreement as follows:

            

    

     

    6.24
      Eligible
      Fixed Assets.
      As to
      each item of fixed assets that is identified by Holdings as Eligible Fixed
      Assets in a Borrowing Base Certificate submitted to Administrative Agent, such
      fixed assets are (a) of good and saleable quality, and (b) not excluded as
      ineligible by virtue of one or more of the excluding criteria set forth in
      the
      definition of Eligible Fixed Assets.” 

    

    
      	
            	(xvii)	
              A
                new Section 6.25 shall be added to the Credit Agreement as follows:

            

    

     

    6.25
      Eligible
      Inventory.
      As to
      each item of Inventory that is identified by Holdings as Eligible Inventory
      or
      Eligible Truss and Millwork Inventory in a Borrowing Base Certificate submitted
      to Administrative Agent, such Inventory is (a) of good and merchantable quality,
      free from known defects, and (b) not excluded as ineligible by virtue of one
      or
      more of the excluding criteria set forth in the definition of Eligible
      Inventory.” 

     

    
      	
            	(xviii)	
              A
                new Section 6.26 shall be added to the Credit Agreement as follows:
                

            

    

    

    “6.26
      BMCI
      Liquidation.
      No
      approval, consent, exemption, authorization, or other action, or notice to,
      or
      filing with, any Governmental Authority or other Person is necessary or required
      to effectuate the BMCI Liquidation, except for the written approval of the
      Insurance Division of the State of Hawaii, which has been obtained and is in
      full force and effect. As of July 31, 2008, the net book value of all cash,
      cash
      equivalents and other securities held by BMCI was $49,900,000. As of the Second
      Amendment Effective Date, Holdings has received a cash distribution from BMCI
      in
      the amount of $10,000,000.” 

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    
      	
            	(xix)	
              Section
                7.01 of the Credit Agreement (captioned “Financial Statements”)
                shall be amended as follows: 

            

    

    

    
      	
            	(A)	
              Section
                7.01(c) shall be amended and restated in its entirety as follows:
                

            

    

     

    “(c)
      as
      soon as available, but not later than thirty (30) days after the end of each
      fiscal month, (i) a copy of the unaudited consolidated balance sheet of Holdings
      and its Subsidiaries as of the end of such month and the related consolidated
      statements of income and cash flows for the period commencing on the first
      day
      and ending on the last day of such month, and certified by a Responsible Officer
      of Holdings as fairly presenting in accordance with GAAP (subject to year-end
      audit adjustments, quarterly accounting adjustments and the absence of
      footnotes), the consolidated financial position and the results of operations
      and cash flows of Holdings and the Subsidiaries, (ii) a management commentary
      in
      respect of the financial condition and results of operations of Holdings and
      its
      Subsidiaries for such fiscal month for which financial statements have then
      been
      delivered in accordance with the preceding clause (i), and (iii) a rolling
      13-week consolidated cash flow forecast, updated monthly, for Holdings and
      its
      Subsidiaries, which forecast shall (A) state the assumptions used in the
      preparation thereof, (B) be otherwise in form satisfactory to the Administrative
      Agent, and (C) be accompanied by a certificate of a Responsible Officer of
      Holdings certifying that such cash flow forecast represents Holdings’ reasonable
      good faith estimates and assumptions as to future performance, which Holdings
      believes to be fair and reasonable as of the time made in light of then current
      and reasonably foreseeable business conditions (it being understood that
      forecasts and projections by their nature involve approximations and
      uncertainties);” 

     

    
      	
            	(B)	
              re-designating
                Section 7.01(d) as Section 7.01(e),

            

    

     

    
      	
            	(C)	
              replacing
                all references to Section 7.01(d) with Section 7.01(e), and
                

            

    

     

    
      	
            	(D)	
              inserting
                new Section 7.01(d) as follows: 

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    “(d)
      as
      soon as available, but not later than April 30 of each fiscal year or as more
      frequently requested by Administrative Agent from time to time, an updated
      consolidated financial forecast for Holdings and its Subsidiaries for the then
      current fiscal month and each fiscal month thereafter through November 10, 2011,
      including forecasted consolidated balance sheets and consolidated statements
      of
      income and cash flows of Holdings and its Subsidiaries, which forecast shall
      (A)
      state the assumptions used in the preparation thereof, (B) compare Holdings
      actual financial results versus the consolidated financial forecast delivered
      by
      Holdings to the Administrative Agent and the Lenders on or about the Second
      Amendment Effective Date, (C) be otherwise in form satisfactory to the
      Administrative Agent, and (D) be accompanied by a certificate of a Responsible
      Officer of Holdings certifying that such financial projections represent
      Holdings’ reasonable good faith estimates and assumptions as to future
      performance, which Holdings believes to be fair and reasonable as of the time
      made in light of then current and reasonably foreseeable business conditions
      (it
      being understood that forecasts and projections by their nature involve
      approximations and uncertainties).” 

    

    
      	
            	(xx)	
              Section
                7.02 of the Credit Agreement (captioned “Certificates; Other
                Information”) shall be amended by (A) deleting the word “and” at the
                end of Section 7.02(j), (B) re-designating Section 7.02(k) as Section
                7.02(q) and (C) inserting new Sections 7.02(k) through 7.02(p) as
                follows:
                

            

    

    

    “(k)
      as
      soon as available, but not later than 7 days after the end of each week, a
      weekly cash flow variance report, which report shall (i) compare Holdings’
actual consolidated cash flows for the week then ended versus the forecasted
      cash flows for such week set forth in the 13-week consolidated cash flow
      forecast then most recently delivered by Holdings to the Administrative Agent
      under Section 7.01(c) and (ii) be in a form satisfactory to the
      Administrative Agent; 

    

    (l)
      as
      soon as available, but not later than 30 days after the end of each fiscal
      month, a monthly status report on the Wind Down of Non-Core Operations, which
      report shall address such matters as may be reasonably requested from time
      to
      time by the Administrative Agent and shall otherwise be in a form satisfactory
      to the Administrative Agent; 

     

    (m)
      not
      later than 50 days after the end of each fiscal month, a monthly management
      call
      with the Administrative Agent and the Lenders (other than Public Lenders
      (i.e.,
      Lenders
      that do not wish to
      receive material non-public information with respect to Holdings or its
      securities)) to discuss such matters as the Administrative Agent or any
      participating Lender may reasonably request; 

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    
      (n)
        as
        soon
        as available, but not later than five Business Day after receipt by Holdings,
        the report of PriceWaterhouseCoopers on the anticipated tax-related impact
        on
        Holdings’ of the BMCI Liquidation; 

    

     

    (o)
      promptly upon the request from time to time of the Administrative Agent, a
      status report on (i) any federal or state tax audits of Holdings or any of
      its
      Subsidiaries, (ii) the filing of any federal or state tax returns, (iii) any
      anticipated tax refunds, tax abatements or other credits and (iv) such other
      tax-related matters as the Administrative Agent may reasonably request;

     

    (p)
      promptly, and in any event not later than 30 days after each fiscal quarter,
      a
      report of all outstanding Surety Instruments; and” 

    

    
      	
            	(xxi)	
              Section
                7.04 of the Credit Agreement (captioned “Preservation of Corporate
                Existence, Etc.”) shall be amended by deleting the text “ordinary
                course of business” in Section 7.04(c) and replacing it with the text
                “Ordinary Course of Business”. 

            

    

    

    
      	
            	(xxii)	
              Section
                7.10 of the Credit Agreement (captioned “Inspections of Property and
                Books and Records”) shall be amended by amending and restating Section
                7.10(b) in its entirety as follows:

            

    

    

    “(b)
      Without limiting the generality of Section 7.10(a), as frequently as the
      Administrative Agent or the Majority Lenders may deem appropriate, each of
      Holdings and the Company will provide Administrative Agent or its designees
      access to Holdings’, the Company’s and the Subsidiaries’ records and premises
      and allow auditors or appraisers to conduct audits and appraisals of Holdings’
and its Subsidiaries’ property, plant, equipment, inventory and accounts.
      Holdings shall pay all reasonable fees and expenses of each such audit and
      appraisal.” 

    

    
      	
            	(xxiii)	
              A
                new Section 7.18 shall be added to the Credit Agreement as follows:
                

            

    

    

    “7.18
      Financial Advisor. Holdings shall retain Alvarez & Marsal, or another
      firm acceptable to the Administrative Agent and Documentation Agent, as
      financial advisor to Holdings who will report jointly to Holdings’ Chief
      Executive Officer and Board of Directors. Such financial advisor will have
      primary responsibility for overseeing the Wind-Down of Non-Core Operations
      and
      ensuring that it is completed on time and within budget. In addition, such
      financial advisor will be charged with developing and implementing incremental
      productivity and efficiency projects. Holdings may terminate the engagement
      of
      such financial advisor after obtaining the consent of the Administrative Agent
      and the Documentation Agent.” 

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    
      	
            	(xxiv)	
              A
                new Section 7.19 shall be added to the Credit Agreement as follows:

            

    

     

    “7.19
      BMCI
      Liquidation.
      Holdings shall, and shall cause its Subsidiaries to, take all steps necessary
      to
      cause the BMCI Liquidation to be completed by no later than January 5, 2009.”

    

    
      	
            	(xxv)	
              A
                new Section 7.20 shall be added to the Credit Agreement as follows:

            

    

     

    “7.20
      Cash
      Balance; Cash Sweep.
      Holdings shall, and shall cause its Subsidiaries to, take all steps necessary
      to
      ensure that the Cash Balance is at all times subject to a first priority Lien
      in
      favor of the Administrative Agent for the ratable benefit of the Lenders to
      secure the Obligations and that the Cash Balance is held in deposit accounts
      or
      securities accounts, or any combination thereof, that are maintained by a branch
      office of a bank or securities intermediary located within the United States
      and
      that are subject to the control of the Administrative Agent within the meaning
      of Section 9314 of the UCC. Holdings shall, and shall cause its Subsidiaries
      to,
      take all steps necessary to ensure that the Collected and Available Cash in
      excess of $1,000,000 is swept to the Cash Collateral Account on a daily basis.”

    

    
      	
            	(xxvi)	
              A
                new Section 7.21 shall be added to the Credit Agreement as follows:

            

    

     

    “7.21
      Wind-Down
      of Non-Core Operations.
      Holdings shall, and shall cause its Subsidiaries to, take all steps necessary
      to
      cause (a)
      the
      Wind-Down of Non-Core Operations in respect of all Wind-Down Business Units
      located in Florida to be completed by no later than December 31, 2008, and
      (b)
      the Wind-Down of Non-Core Operations in respect of all other Wind-Down Business
      Units to be completed by no later than March 31, 2009.” 

    

    
      	
            	(xxvii)	
              A
                new Section 7.22 shall be added to the Credit Agreement as follows:
                

            

    

    

    “7.22
      Tax Returns. Holdings shall, and shall cause its Subsidiaries to, timely
      file all Federal and other material tax returns and reports required to be
      filed
      and to take all other steps necessary to ensure that Holdings and its
      Subsidiaries are paid all tax refunds to which Holdings and its Subsidiaries
      may
      be entitled as a result of net operating losses or otherwise in any applicable
      tax period.” 

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    
      	
            	(xxviii)	
              Section
                8.01 of the Credit Agreement (captioned “Limitation on Liens”)
                shall be amended as follows. 

            

    

    

    
      	
            	(A)	
              Section
                8.01 shall be amended by deleting the text “ordinary course of business”
                in each place where it appears in such Section and replacing it in
                each
                instance with the text “Ordinary Course of Business”.
                

            

    

     

    
      	
            	(B)	
              Section
                8.01(a)(xiii) shall be amended and restated in its entirety as follows:
                

            

    

    

    “(xiii)
      [Intentionally omitted.]” 

    

    
      	
            	(xxix)	
              Section
                8.02 of the Credit Agreement (captioned “Disposition of Assets”)
                shall be amended as follows: 

            

    

    

    
      	
            	(A)	
              Section
                8.02 shall be amended by deleting the text “ordinary course of business”
                in each place where it appears in such Section and replacing it in
                each
                instance with the text “Ordinary Course of Business”.
                

            

    

     

    
      	
            	(B)	
              Section
                8.02(a) shall be amended by deleting the text “ or equipment”.
                

            

    

    

    
      	
            	(xxx)	
              Section
                8.04 of the Credit Agreement (captioned “Loans and Investments”)
                shall be amended as follows:

            

    

    

    
      	
            	(A)	
              Section
                8.04 shall be amended by deleting the text “ordinary course of business”
                in each place where it appears in such Section and replacing it in
                each
                instance with the text “Ordinary Course of Business”.
                

            

    

     

    
      	
            	(B)	
              Section
                8.04(h) shall be amended and restated in its entirety as follows:
                

            

    

    

    “(h)
      Investments by Holdings in BMCI as of the Second Amendment Effective Date.”

    

    
      	
            	(xxxi)	
              Section
                8.08 of the Credit Agreement (captioned “Contingent Obligations”)
                shall be amended by deleting the text “ordinary course of business” in
                each place where it appears in such Section and replacing it in each
                instance with the text “Ordinary Course of Business”.
                

            

    

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    
      	
            	(xxxii)	
              Section
                8.19 of the Credit Agreement (captioned “Financial Covenants”)
                shall be amended and restated in its entirety as follows:
                

            

    

    

    “8.19
      Financial Covenants. 

    

    (a)
      Holdings shall not permit its Liquidity as of the last day of any fiscal month
      to be less than $20,000,000; provided, however, that as of the
      last day of the fiscal months ending in July 2009, August 2009, September 2009,
      and October 2009, Holdings shall not permit its Liquidity to be less than
      $10,000,000. If on September 30, 2010, the Leverage Ratio is less than or equal
      to 4.20 to 1.00, then from and after such date Holdings shall no longer be
      required to comply with this Section 8.19(a). 

     

    (b)
      Holdings shall not permit its EBITDA From Continuing Operations as at the end
      of
      any fiscal month to be less than the following amounts for the respective
      periods set forth below: 

    

    
      	
              Measurement
                Period

            	
              Minimum
                EBITDA

            
	
               

            	
               

            
	
              Three
                months ending

            	
              ($10,000,000)

            
	
              September
                30, 2008

            	
               

            
	 	 
	
              Four
                months ending

            	
              ($10,000,000)

            
	
              October
                31, 2008

            	
               

            
	 	 
	
              Five
                months ending

            	
              ($15,000,000)

            
	
              November
                30, 2008

            	
               

            
	 	 
	
              Six
                months ending

            	
              ($20,000,000)

            
	
              December
                31, 2008

            	
               

            
	 	 
	
              Seven
                months ending

            	
              ($20,000,000)

            
	
              January
                31, 2009

            	
               

            
	 	 
	
              Eight
                months ending

            	
              ($20,000,000)

            
	
              February
                28, 2009

            	
               

            
	 	 
	
              Nine
                months ending

            	
              ($20,000,000)

            
	
              March
                31, 2009

            	
               

            
	 	 
	
              Ten
                months ending

            	
              ($20,000,000)

            
	
              April
                30, 2009

            	
               

            
	 	 
	
              Eleven
                months ending

            	
              ($18,000,000)

            
	
              May
                31, 2009

            	 

    

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    

      
        	
                Measurement
                  Period
                  

              	
                Minimum
                  EBITDA

              
	 	 
	
                Twelve
                  months ending June 30, 2009 

              	
                ($15,000,000)
                  

              
	 	 
	
                Twelve
                  months ending July 31, 2009 

              	
                ($10,000,000)
                  

              
	 	 
	
                Twelve
                  months ending August 31, 2009 

              	
                ($4,500,000)
                  

              
	 	 
	
                Twelve
                  months ending September 30, 2009 

              	
                $2,000,000
                  

              
	 	 
	
                Twelve
                  months ending October 31, 2009 

              	
                $6,500,000
                  

              
	 	 
	
                Twelve
                  months ending November 30, 2009 

              	
                $14,000,000
                  

              
	 	 
	
                Twelve
                  months ending December 31, 2009 

              	
                $27,000,000
                  

              
	 	 
	
                Twelve
                  months ending January 31, 2010 

              	
                $33,000,000
                  

              
	 	 
	
                Twelve
                  months ending February 28, 2010 

              	
                $37,000,000
                  

              
	 	 
	
                Twelve
                  months ending March 31, 2010 

              	
                $39,000,000
                  

              
	 	 
	
                Twelve
                  months ending April 30, 2010 

              	
                $45,000,000

              
	 	 
	
                Twelve
                  months ending May 31, 2010 

              	
                $51,000,000
                  

              
	 	 
	
                Twelve
                  months ending June 30, 2010 

              	
                $58,000,000
                  

              
	 	 
	
                Twelve
                  months ending July 31, 2010 

              	
                $66,000,000

              
	 	 
	
                Twelve
                  months ending August 31, 2010 

              	
                $69,000,000
                  

              
	 	 
	
                Twelve
                  months ending September 30, 2010 

              	
                $80,000,000

              
	 	 
	
                Twelve
                  months ending October 31, 2010 

              	
                $87,000,000

              
	 	 
	
                Twelve
                  months ending November 30, 2010 

              	
                $93,000,000
                  

              

      

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    
      	
              Measurement
                Period

            	
              Minimum
                EBITDA 

            
	
               

            	 
	
              Twelve
                months ending 

            	
              $96,000,000
                

            
	
              December
                31, 2010 and 

            	 
	
              monthly
                thereafter 

            	 

    

    

    If
      on
      September 30, 2010, the Leverage Ratio is less than or equal to 4.20 to 1.00,
      then from and after such date Holdings shall no longer be required to comply
      with this Section 8.19(b). 

    

    (c)
      Holdings shall not permit EBITDA From Wind-Down Business Units for the six
      months ending March 31, 2009, to be less than ($15,000,000). 

     

    (d)
      If on
      September 30, 2010, the Leverage Ratio is less than or equal to 4.20 to 1.00,
      then from and after such date Holdings shall not permit the Leverage Ratio
      as at
      the end of any fiscal quarter to be greater than the following amounts for
      the
      respective periods set forth below: 

    

      
        	
                Period

              	
                Leverage
                  Ratio 

              
	 	 
	
                Twelve
                  months ending 

              	
                4.20
                  to 1.00

              
	
                September
                  30, 2010 

              	 
	 	 
	
                Twelve
                  months ending 

              	
                4.00
                  to 1.00 

              
	
                December
                  31, 2010 

              	 
	 	 
	
                Twelve
                  months ending

              	
                3.60
                  to 1.00 

              
	
                March
                  31, 2011 

              	 
	 	 
	
                Twelve
                  months ending 

              	
                3.30
                  to 1.00 

              
	
                June
                  30, 2011 

              	 
	 	 
	
                Twelve
                  months ending 

              	
                3.10
                  to 1.00 

              
	
                September
                  30, 2011 

              	 

      

       

    

    (e)
      If on
      September 30, 2010, the Leverage Ratio is less than or equal to 4.20 to 1.00,
      then from and after such date Holdings shall not permit the Interest Coverage
      Ratio as at the end of any fiscal quarter to be less than the following amounts
      for the respective periods set forth below: 

    

    
      	
              Period

            	
              Interest
                Coverage Ratio 

            
	 	 
	
              Twelve
                months ending 

              
                September
                  30, 2010

              

            	
              2.90
                to 1.00 

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    
      	
              Period

            	
              Interest
                Coverage Ratio 

            
	 	 
	
              Twelve
                months ending 

            	
              3.10
                to 1.00 

            
	
              December
                31, 2010 

            	 
	 	 
	
              Twelve
                months ending 

            	
              3.50
                to 1.00 

            
	
              March
                31, 2011 

            	 
	 	 
	
              Twelve
                months ending 

            	
              3.80
                to 1.00 

            
	
              June
                30, 2011 

            	 
	 	 
	
              Twelve
                months ending 

            	
              4.30
                to 1.00” 

            
	
              September
                30, 2011 

            	 

    

    

    
      	
            	(xxxiii)	
              Section
                8.21of the Credit Agreement (captioned “Capital Expenditures”)
                shall be amended and restated in its entirety as follows:
                

            

    

    

    “8.21
      Capital
      Expenditures.
      Holdings shall not, and shall not permit any of its Subsidiaries to, make any
      Capital Expenditures in excess of, on a consolidated basis, in any fiscal year
      the following amounts for the respective periods set forth below: 

    

      
        	
                Period

              	
                CapEx
                  Limit 

              
	 	 
	
                Fiscal
                  2008

              	
                $20,000,000
                  

              
	 	 
	
                Fiscal
                  2009

              	
                $20,000,000
                  

              
	 	 
	
                Fiscal
                  2010

              	
                $30,000,000
                  

              
	 	 
	
                Fiscal
                  2011

              	
                $30,000,000”
                  

              

      

       

      
        	
              	
                (xxxiv)

              	
                A
                  new Section 8.22 shall be added to the Credit Agreement as
                  follows:

              

      

    

    

    “8.22
      No
      Opt-In to Article 8 of the UCC.
      Holdings shall not suffer or permit any Subsidiary which is either a limited
      partnership or limited liability company to amend its limited partnership
      agreement or limited liability company operating agreement, as the case may
      be,
      to certificate any of its limited partnership interests or membership interests,
      as the case may be, or opt into Article 8 of the UCC, without the prior written
      consent of the Administrative Agent.” 

    

    
      	
            	(xxxv)	
              Section
                9.01(c) of the Credit Agreement (captioned “Specific Defaults”)
                shall be amended and restated in its entirety as follows:
                

            

    

    

      “(c)
        Specific
        Defaults.
        Holdings or the Company or any other Loan Party fails to perform or observe
        any
        term, covenant or agreement
        contained in any of Section 7.03(a), Section 7.04(a)(i),
Section 7.12, Section 7.19 or Section 7.21 or in Article
        VIII; or” 

    

    

      
        	 	
                (xxxvi)
                  

              	
                A
                  new Schedule 1.01A shall be added to the Credit Agreement in the
                  form of
                  Schedule 1.01A attached hereto. 

              

      

      

      
        	 	
                (xxxvii)
                  

              	
                A
                  new Schedule 1.01B shall be added to the Credit Agreement in the
                  form of
                  Schedule 1.01B attached hereto. 

              

      

      

      
        	 	
                (xxxviii)
                  

              	
                Schedule
                  2.09(a) shall be amended and restated in the form of Schedule 2.09(a)
                  attached hereto. 

              

      

      

      
        	 	
                (xxxix)
                  

              	
                Exhibit
                  K shall be amended and restated in the form of Exhibit K attached
                  hereto.
                  

              

      

      

      
        	 	
                (xl)
                  

              	
                A
                  new Exhibit L shall be added to the Credit Agreement in the form
                  of
                  Exhibit L attached hereto. 

              

      

    

     

    (b)
      Waiver
      of Specified Defaults.
      Subject
      to the terms and conditions of this Amendment, the Majority Lenders hereby
      waive
      (i) the Specified Defaults, and (ii) the defaults arising from the Specified
      Swap Contracts not conforming with clause (ii)(b) of the definition of
“Permitted Swap Obligations” in the Credit Agreement. 

     

    (c)
      References
      Within Credit Agreement.
      Each
      reference in the Credit Agreement to “this Agreement” and the words “hereof,”
“herein,” “hereunder,” or words of like import, shall mean and be a reference to
      the Credit Agreement as amended by this Amendment. 

     

    SECTION
      3. Conditions of Effectiveness. The effectiveness of Section 2 of
      this Amendment shall be subject to the satisfaction of each of the following
      conditions precedent (the date on which such conditions are satisfied, the
      “Effective Date”): 

     

    (a)
      Execution. The Administrative Agent shall have received (i) from
      Holdings, the Company and each other Guarantor a duly executed original of
      this
      Amendment (or, if elected by the Administrative Agent, a facsimile or PDF copy
      of such executed Amendment) and (ii) from the Majority Lenders duly executed
      original written consents to this Amendment (or, if elected by the
      Administrative Agent, facsimile or PDF copies of such executed consents)
      authorizing the Administrative Agent to execute and deliver this Amendment
      on
      the Majority Lenders’ behalf. 

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    
      (b)
        UCC Searches. The Administrative Agent shall have received in form and
        substance reasonably satisfactory to the Administrative Agent and the Majority
        Lenders results, dated as of a recent date prior to the Effective Date, of
        searches conducted in the UCC filing records in each of the governmental
        offices
        in each jurisdiction in which any Loan Party is organized confirming that
        the
        Liens on the Collateral granted to the Administrative Agent on behalf of
        the
        Lenders and the other Secured Parties (as defined in the Security Agreement)
        are
        subject to no Liens other than Permitted Liens.

    

     

    (c)
      BMCI Proceeds. Holdings shall prepay the Term B Loans in an aggregate
      amount equal to the greater of (i) $10,000,000 and (ii) the aggregate Dollar
      amount of all cash, checks and other cash equivalent financial instruments
      received by Holdings on or prior to the Effective Date in respect of the BMCI
      Liquidation. 

     

    (d)
      Legal
      Opinion.
      The
      Administrative Agent shall have received an opinion of Gibson, Dunn &
Crutcher LLP, counsel to Holdings, dated the Effective Date, addressed to the
      Administrative Agent and the Lenders, covering such legal matters concerning
      Holdings, the Guarantors, this Amendment and the Loan Documents as the
      Administrative Agent or any Lender may reasonably request. 

     

    (e)
      Borrowing
      Base Certificate.
      The
      Administrative Agent shall have received a completed Borrowing Base Certificate
      calculating the Borrowing Base as of the close of business on August 31, 2008,
      certified by a Responsible Officer of Holdings. 

     

    (f)
      Supplement
      to Security Agreement.
      The
      Administrative Agent shall have received a supplement to the Security Agreement
      duly executed by the parties thereto attaching updated Schedules to the Security
      Agreement as of the Effective Date. 

     

    (g)
      Officer’s Certificate. The Administrative Agent shall have received a
      certificate of the chief executive officer or chief financial officer of
      Holdings, addressed to the Administrative Agent and the Lenders and dated the
      Effective Date, certifying that: 

    

      
        	 	
                (i)
                  

              	
                The
                  representations and warranties set forth in Article VI of the Credit
                  Agreement and in the other Loan Documents are true and correct
                  in all
                  material respects as of such date (except for such representations
                  and
                  warranties made as of a specified date, which shall be true and
                  correct in
                  all material respects as of such date and, if in respect of Section
                  6.11
                  of the Credit Agreement shall be deemed instead to refer to the
                  last day
                  of the most recent fiscal quarter and fiscal year for which financial
                  statements have then been delivered); provided, however,
                  that the foregoing qualifying provision “in all material respects” shall
                  not be applicable to any representations and warranties which are
                  already
                  subject to the same or similar qualifications;

              

      

      

      
        	 	
                (ii)
                  

              	
                After
                  giving effect to this Amendment, no Default or Event of Default
                  has
                  occurred and is continuing as of such date; and

              

      

      

      
        	 	
                (iii)
                  

              	
                After
                  giving effect to this Amendment, no event or circumstance has occurred
                  since December 31, 2007, that has resulted or could reasonably
                  be expected
                  to result in a Material Adverse Effect;

              

      

    

     

    (h)
      Good
      Standing Certificates.
      The
      Administrative Agent shall have received a good standing certificate, as of
      a
      date reasonably prior to the Effective Date as is determined by the
      Administrative Agent in good faith, for each Loan Party from the Secretary
      of
      State (or similar, applicable Governmental Authority) of its state of
      incorporation or formation. 

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    (i)
      Secretary’s
      Certificate.
      The
      Administrative Agent shall have received a certificate of the Secretary or
      Assistant Secretary of each Loan Party, dated as of the Effective Date,
      certifying: 

     

    
      	
            	(i)	
              that
                attached thereto are the Organization Documents of each Loan Party
                as in
                effect on the Effective Date, certified by the Secretary or Assistant
                Secretary of such Person as of the Effective Date, or a certification
                by
                such Secretary or Assistant Secretary that the Organization Documents
                of
                such Loan Party delivered to the Administrative Agent on the “Effective
                Date” of the Credit Agreement on November 10, 2006 or, if later, on the
                Additional Guarantor Accession Date on which any Subsidiary became
                a
                Guarantor are in full force and effect and have not been amended,
                supplemented or modified; 

            

    

     

    
      	
            	(ii)	
              that
                attached thereto are true and correct copies of the resolutions of
                the
                board of directors of such Loan Party (or other similar enabling
                action of
                each Loan Party that is not a corporation) authorizing the transactions
                contemplated hereby, and that such resolutions are in full force
                and
                effect and have not been amended, supplemented or modified; and
                

            

    

     

    
      
        	
              	(iii)	
                the
                  names, titles and true signatures of the officers of such Loan
                  Party
                  authorized to execute, deliver and perform, as applicable, this
                  Amendment
                  and all other Loan Documents to be delivered by it hereunder.
                  

              

      

    

     

    (j)
      Warrants. The Administrative Agent shall have received warrants in
      substantially the form of Exhibit L attached hereto, for the benefit of each
      of
      the Lenders, duly executed by Holdings. 

     

    (k)
      Fees
      and Expenses.
      Holdings shall have paid (i) all fees due and payable on the Effective Date
      under that certain letter agreement dated September 26, 2008, by and among
      Holdings, Wells Fargo and JPMorgan Chase Bank, N.A., (ii) the Amendment Fee,
      and
(iii)
      all
      invoiced costs and expenses then due in accordance with Section 8(e) below.
      

    

    (l)
      Material Adverse Effect. On and as of the Effective Date, after giving
      effect to this Amendment, no event or circumstance shall have occurred since
      December 31, 2007, that has resulted or could reasonably be expected to result
      in a Material Adverse Effect. 

     

    (m)
      Representations
      and Warranties; No Default.
      On the
      Effective Date, after giving effect to this Amendment: 

    

    
      	
            	(i)	
              the
                representations and warranties contained in Section 4 hereof shall
                be true
                and correct in all material respects as of such date (except for
                such
                representations and warranties made as of a specified date, which
                shall be
                true and correct in all material respects as of such date and, if
                in
                respect of Section 6.11 of the Credit Agreement shall be deemed instead
                to
                refer to the last day of the most recent fiscal quarter and fiscal
                year
                for which financial statements have then been delivered); provided,
                however, that the foregoing qualifying provision “in all material
                respects” shall not be applicable to any representations and warranties
                which are already subject to the same or similar qualifications;
                and
                

            

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	
            	(ii)	
              no
                Default or Event of Default shall have occurred and be continuing.
                

            

    

    

    (n)
      Amendments
      to Operating Agreements.
      Holdings shall have amended the operating agreements of (i) SelectBuild Florida,
      LLC, (ii) A-1 Building Components, LLC, (iii)
      SelectBuild Mid-Atlantic, LLC, (iv) SelectBuild Trim, LLC, and (v) SelectBuild
      Mechanical, LLC, in form and substance reasonably satisfactory to the
      Administrative Agent, to address the provisions relating to (x) the restrictions
      upon transfer of membership interests and (y)
      the
      incapacity, death, bankruptcy or dissolution of a member. 

     

    (o)
      Subsidiary
      Joinders.
      (i)
      SelectBuild Mechanical, LLC and (ii) SelectBuild Illinois, LLC shall have duly
      executed and delivered to the Administrative Agent an Additional Guarantor
      Assumption Agreement. 

     

    (p)
      Additional Documents. The Administrative Agent shall have received, in
      form and substance reasonably satisfactory to it, such additional approvals,
      documents, evidence of insurance, collateral access agreements and other
      information as the Administrative Agent or any Lender (through the
      Administrative Agent) may reasonably request. 

     

    SECTION
      4. Representations
      and Warranties.
      To
      induce the Lenders to enter into this Amendment, Holdings, the Company and
      each
      other Loan Party hereby represents and warrants to the Administrative Agent
      and
      the Lenders that all representations and warranties made by each such Person
      in
Article VI of the Credit Agreement and in the other Loan Documents are
      true and correct in all material respects on and as of the date hereof, after
      giving effect to this Amendment. For the purposes of this Section 4, (i) each
      reference in Article VI of the Credit Agreement to “this Agreement,” and
      the words “hereof,” “herein,” “hereunder,” or words of like import in such
      Article, shall mean and be a reference to the Credit Agreement as amended by
      this Amendment, and each reference in such Article to “the Loan Documents” shall
      mean and be a reference to the Loan Documents as amended as contemplated hereby,
      (ii)
      Section 6.11 of the Credit Agreement shall be deemed instead to refer to
      the last day of the most recent fiscal quarter and fiscal year for which
      financial statements have then been delivered, and (iii) any representations
      and
      warranties which relate solely to an earlier date shall not be deemed confirmed
      and restated as of the date hereof (provided that such representations
      and warranties shall be true and correct as of such earlier date). 

     

    SECTION
      5. Reaffirmation of Liens and Guarantees. 

     

    (a)
      Each Loan Party hereby reaffirms that the Liens
      granted to the Administrative Agent, for itself and on behalf of and for the
      ratable benefit of the other Secured Parties, under the Security Agreement
      and
      the other Collateral Documents remain in full force and
      effect and constitute, and shall constitute on and after the Effective Date,
      valid and perfected Liens on the Collateral (subject only to Permitted Liens)
      to
      secure the Secured Obligations. As used herein, “Secured Parties” and “Secured
      Obligations” shall have the meanings given to such terms in the Security
      Agreement, and, for the avoidance of doubt, the term “Secured Obligations” as
      used in this Amendment, the Credit Agreement as amended hereby and the other
      Loan Documents includes, without limitation, all Secured Obligations arising
      under or in connection with this Amendment and the Credit Agreement as amended
      by this Amendment. 

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    (b)
      Each
      of the undersigned Guarantors, in its capacity as a Guarantor, does hereby
      consent to this Amendment and to the documents and agreements referred to
      herein, and nothing herein shall in any way limit any of the terms or provisions
      of the Guaranty of such Guarantor or the Collateral Documents executed by such
      Guarantor or any other Loan Document executed by such Guarantor (as the same
      may
      be amended from time to time), all of which are hereby ratified and affirmed
      in
      all respects. 

     

    SECTION
      6. Amendment Fee. Holdings shall pay to Administrative Agent, for the
      benefit of the Lenders approving this Amendment, an amendment fee in the amount
      of (x)
      0.50%
times (y) the (1) Revolving Commitment plus (2) the outstanding
      principal amount of Term B Loans of each Lender that approves this Amendment
      (the “Amendment Fee”). Such Amendment Fee shall be fully earned on the
      Effective Date and paid only to those Lenders that approve this Amendment on
      or
      prior to 5:00 p.m. California time on September 29, 2008. 

     

    SECTION
      7. Release. 

     

    (a)
      Holdings and each other Loan Party hereby absolutely and unconditionally waives,
      releases, remises and forever discharges the Administrative Agent and the
      Lenders, and any and all of their respective participants, members, related
      funds, parent corporations, subsidiary corporations, affiliated corporations,
      insurers, indemnitors, successors and assigns thereof, together with all of
      the
      present and former directors, officers, agents and employees of any of the
      foregoing (each a “Released Party”), from any and all claims, suits,
      investigations, proceedings, demands, obligations, liabilities, damages, losses,
      costs, expenses, or causes of action of any kind, nature or description, whether
      based in law, equity, contract, tort, implied or express warranty, strict
      liability, criminal or civil statute, common law, or under any state or federal
      law or otherwise, of any kind or character, known or unknown, past or present,
      liquidated or unliquidated, suspected or unsuspected, matured or unmatured,
      known or unknown, in each case, which Holdings or such other Loan Party has
      had,
      now has, or has made claim to have against any such Released Party for or by
      reason of any act, omission, matter, cause or thing whatsoever which relates,
      directly or indirectly to the Credit Agreement or any other Loan Document,
      provided, however, that the foregoing shall not effect or
      otherwise constitute a release of any duties or obligations set forth in this
      Amendment, the Credit Agreement or the other Loan Documents. It is the intention
      of Holdings and each other Loan Party in providing this release that the same
      shall be effective as a bar to each and every claim, demand and cause of action
      specified, and in furtherance of this intention it waives and relinquishes
      all
      rights and benefits under Section 1542 of the Civil Code of the State of
      California (or any comparable provision of any other applicable law), which
      provides: 

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    “A
      GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR
      SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
      KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

    

    Holdings
      and each other Loan Party acknowledges that it may hereafter discover facts
      different from or in addition to those now known or believed to be true with
      respect to such claims, demands, or causes of action and agrees that this
      instrument shall be and remain effective in all respects notwithstanding any
      such differences or additional facts. Holdings and each other Loan Party
      understands, acknowledges and agrees that the release set forth above may be
      pleaded as a full and complete defense and may be used as a basis for an
      injunction against any action, suit or other proceeding which may be instituted,
      prosecuted or attempted in breach of the provisions of such release.

    

    (b)
      Holdings and each other Loan Party, on behalf of itself and its successors,
      assigns, and other legal representatives, hereby absolutely, unconditionally
      and
      irrevocably, covenants and agrees with and in favor of each Released Party
      above
      that it will not sue (at law, in equity, in any regulatory proceeding or
      otherwise) any Released Party on the basis of any claim released, remised and
      discharged by such Person pursuant to the above release. Holdings and each
      other
      Loan Party further agrees that it shall not dispute the validity or
      enforceability of the Credit Agreement or any of the other Loan Documents or
      any
      of its obligations thereunder, or the validity, priority, enforceability or
      the
      extent of Administrative Agent’s Lien on any item of Collateral under the Credit
      Agreement or the other Loan Documents. If Holdings or any other Loan Party
      or
      any of its successors, assigns or other legal representations violates the
      foregoing covenant, such Person, for itself and its successors, assigns and
      legal representatives, agrees to pay, in addition to such other damages as
      any
      Released Party may sustain as a result of such violation, all reasonable
      attorneys’ fees and costs incurred by such Released Party as a result of such
      violation. 

     

    SECTION
      8. Miscellaneous. 

     

    (a)
      Notice. The Administrative Agent shall notify Holdings, the Company and
      the Lenders of the occurrence of the Effective Date and promptly thereafter
      distribute to Holdings, the Company and the Lenders copies of all documents
      delivered under Section 3 of this Amendment. 

     

    (b)
      Certain Consents. For purposes of determining compliance with the
      conditions specified in Section 3 above, each Lender that has executed
      this Amendment shall be deemed to have consented to, approved or accepted,
      or to
      be satisfied with, each document or other matter either sent, or made available
      for inspection, by the Administrative Agent to such Lender for consent,
      approval, acceptance or satisfaction, or required thereunder to be consented
      to
      or approved by or acceptable or reasonably satisfactory to such Lender.

     

    (c)
      Credit
      Agreement Otherwise Not Affected.
      Except
      as expressly amended or waived as set forth in Section 2 above, the Credit
      Agreement and the other Loan Documents shall remain unchanged and in full force
      and effect and are hereby ratified and confirmed in all respects. The Lenders’
and the Administrative Agent’s execution and delivery of, or acceptance
of,
      this
      Amendment and any other documents and instruments in connection herewith
      (collectively, the “Amendment Documents”) shall not be deemed to create a
      course of dealing or otherwise create any express or implied duty by any of
      them
      to provide any other or further amendments, consents or waivers in the future.
      

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    (d)
No
      Reliance. Each of Holdings, the Company and each other Guarantor hereby
      acknowledges and confirms to the Administrative Agent and the Lenders that
      it is
      executing this Amendment and the other Amendment Documents on the basis of
      its
      own investigation and for its own reasons without reliance upon any agreement,
      representation, understanding or communication by or on behalf of any other
      Person. 

     

    (e)
      Costs
      and Expenses.
      Holdings agrees to pay to the Administrative Agent on demand the reasonable
      out-of-pocket costs and expenses of the Administrative Agent, and the reasonable
      fees and disbursements of counsel to the Administrative Agent, in connection
      with the negotiation, preparation, execution and delivery of this Amendment
      and
      any other documents to be delivered in connection herewith. 

     

    (f)
      Binding
      Effect.
      This
      Amendment shall be binding upon, inure to the benefit of and be enforceable
      by
      Holdings, the Company and each other Guarantor, the Administrative Agent and
      each Lender and their respective successors and assigns. 

     

    (g)
      Governing
      Law.
      THIS
      AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
      THE
      STATE OF CALIFORNIA. 

     

    (h)
      Complete
      Agreement; Amendments.
      This
      Amendment, together with the other Amendment Documents and the other Loan
      Documents, contains the entire and exclusive agreement of the parties hereto
      and
      thereto with reference to the matters discussed herein and therein. This
      Amendment supersedes all prior commitments, drafts, communications, discussion
      and understandings, oral or written, with respect thereto. This Amendment may
      not be modified, amended or otherwise altered except in accordance with the
      terms of Section 11.01 of the Credit Agreement. 

     

    (i)
      Severability. Whenever possible, each provision of this Amendment shall
      be interpreted in such manner as to be effective and valid under all applicable
      laws and regulations. If, however, any provision of this Amendment shall be
      prohibited by or invalid under any such law or regulation in any jurisdiction,
      it shall, as to such jurisdiction, be deemed modified to conform to the minimum
      requirements of such law or regulation, or, if for any reason it is not deemed
      so modified, it shall be ineffective and invalid only to the extent of such
      prohibition or invalidity without affecting the remaining provisions of this
      Amendment, or the validity or effectiveness of such provision in any other
      jurisdiction. 

     

    (j)
      Counterparts.
      This
      Amendment may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which when so executed shall be deemed
      to be an original and all of which taken together shall constitute but one
      and
      the same instrument. 

     

    (k)
      Loan Documents. This Amendment and the other Amendment Documents shall
      constitute Loan Documents. 

    

    [Signature
      Pages Follow.]

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of
      the
      date first above written. 

    

      
        	 	
                THE
                  BORROWER 

              
	 	 	 
	 	
                BUILDING
                  MATERIALS HOLDING CORPORATION 

              
	 	 	 
	 	
                By

              	  

	 	
                 

              	
                Name:

              
	 	
                 

              	
                Title:
                  

              
	 	 	 
	 	 	 
	 	
                THE
                  GUARANTORS 

              
	 	 	 
	 	
                BMC
                  WEST CORPORATION

              
	 	
                SELECTBUILD
                  CONSTRUCTION, INC. 

              
	 	
                SELECTBUILD
                  NORTHERN CALIFORNIA, INC. 

              
	 	
                SELECTBUILD
                  DISTRIBUTION, INC.

              
	 	
                C
                  CONSTRUCTION, INC. TWF CONSTRUCTION, INC. 

              
	 	
                H.N.R.
                  FRAMING SYSTEMS INC.SELECTBUILD, L.P. 

              
	 	
                SELECTBUILD
                  SOUTHERN
                  CALIFORNIA, INC. 

              
	 	
                SELECTBUILD
                  NEVADA, INC. 

              
	 	
                SELECTBUILD
                  ARIZONA, LLC 

              
	 	SELECTBUILD
                MID-ATLANTIC, LLC 
	 	
                SELECTBUILD
                  FLORIDA, LLC 

              
	 	
                SELECTBUILD
                  TRIM, LLC 

              
	 	
                KBI
                  STUCCO, INC. 

              
	 	
                KBI
                  WINDOWS, INC. 

              
	 	
                A-1
                  BUILDING COMPONENTS, LLC SELECTBUILD 

              
	 	
                MECHANICAL,
                  LLC 

              
	 	
                SELECTBUILD
                  ILLINOIS, LLC 

              
	 	 	 
	 	 	 
	 	
                By

              	  

	 	
                 

              	
                Name:
                  

              
	 	
                 

              	
                Title:
                  

              

      

    

     

     

    

    [SIGNATURE
      PAGE 1 TO SECOND AMENDMENT TO

    SECOND
      AMENDED AND RESTATED CREDIT AGREEMENT AND WAIVER]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 	
                THE
                  ADMINISTRATIVE AGENT

              
	 	 	 
	 	 	 
	 	
                WELLS
                  FARGO BANK, NATIONAL 

                ASSOCIATION,
                  as Administrative Agent 

              
	 	 	 
	 	 	 
	 	
                By

              	  

	 	 	
                Name:
                  

              
	 	 	
                Title:
                  

              

      

    

     

     

    

    [SIGNATURE
      PAGE 2 TO SECOND AMENDMENT TO

    SECOND
      AMENDED AND RESTATED CREDIT AGREEMENT AND WAIVER]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      

      SCHEDULE
        1.01A

       

      Locations
        of Fixed Assets and Inventory 

      

      

      [To
        be
        provided.] 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        1.01B

       

      Wind-Down
        Business Units 

      

      

      [To
        be
        provided.] 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    SCHEDULE
      2.09(a)

     

    Term
      B Loan Amortization Schedule

    

     

    TERM
      B LOAN AMORTIZATION SCHEDULE EXHIBIT K

     

    
      	
               

              Date
                

            	 	
              %
                of Total Due 

            	 	
              Payment
                Due Based on 

              Aggregate
                Term B Commitment

               as
                of Effective Date 

            
	 	 	 	 	 
	
              12/31/06
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              
                $875,000

              

            
	 	 	 	 	 	 	 
	
              3/31/07
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              6/30/07
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              9/30/07
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              12/31/07
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	 	 	 	 	
            	 	 
	
              3/31/08
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              6/30/08
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              9/30/08
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              12/31/08
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	 	 	 	 	
            	
            	 
	
              3/31/09
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              6/30/09
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              9/30/09
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              12/31/09
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	 	 	 	 	
            	
            	 
	
              3/31/10
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              6/30/10
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              9/30/10
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              12/31/10
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	 	 	 	 	
            	
            	 
	
              3/31/11
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              6/30/11
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              9/30/11
                

            	 	 	
              0.25%

            	
               

            	
               

            	
              $875,000

            
	
              11/10/11
                

            	 	 	
              95%

            	
               

            	
               

            	
              $332,500,000

            
	 	 	 	 	
            	
            	 
	 	 	 	
              100.00%

            	
               

            	
               

            	
              $350,000,000

            

    

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

        EXHIBIT
          A

        BORROWING
          BASE CALCULATION
(BUILDING MATERIALS HOLDING CORPORATION) 

         

         

        [To
          be
          provided.] 

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

      

      EXHIBIT
        K

       

      FORM
        OF BORROWING BASE CERTIFICATE 

      

      

      [DATE]
        

      

      WELLS
        FARGO BANK, NATIONAL ASSOCIATION, 

      as
        Administrative Agent 

      201
        3rd
        Street, 8th Floor 

      San
        Francisco, CA 94103 

      Attention:
        Records Management MAC #A0187-084 

      

      Ladies
        and Gentlemen: 

      

      The
        undersigned Responsible Officer of Holdings, pursuant to Section 7.02(j)
        of that
        certain Second Amended and Restated Credit Agreement, dated as of November
        10,
        2006, as amended by (x) a First Amendment to Second Amended and Restated
        Credit
        Agreement and Waiver, dated as of February 29, 2008 and (y) a Second Amendment
        to Second Amended and Restated Credit Agreement and Waiver, dated as of
        September __, 2008 (as so amended and as further amended, restated, supplemented
        or otherwise modified from time to time, the “Credit
        Agreement”),
        by
        and among (i) BUILDING MATERIALS HOLDING CORPORATION, a Delaware corporation
        (“Holdings”),
        as
        borrower, (ii) BMC WEST CORPORATION, a Delaware corporation (the “Company”),
        and
        certain other affiliates of Holdings, as guarantors, (iii)
        the
        Lenders party thereto, (iv) JPMORGAN CHASE BANK, N.A., as Documentation Agent,
        and (v) WELLS FARGO BANK, NATIONAL ASSOCIATION, as L/C Issuer, Swingline
        Lender,
        Joint Lead Arranger, Joint Book Manager and Administrative Agent (in such
        capacity, the “Administrative
        Agent”),
        hereby certifies, solely in such capacity, to the Administrative Agent that
        (1)
        the information attached hereto as Exhibit A is true and correct as of the
        effective date of the calculation set forth thereon and (2) no Event of Default
        has occurred and is continuing on such date. 

      

      All
        initially capitalized terms used in this Borrowing Base Certificate have
        the
        meanings set forth in the Credit Agreement unless specifically defined herein.
        

      

      

        
          	 	
                  BUILDING
                    MATERIALS HOLDING CORPORATION 

                
	 	
                   

                	 
	 	
                   

                	 
	 	
                  By:
                    

                	  

	 	
                  Name:
                    

                	   

	 	
                  Title:
                    

                	  

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

           

        

      

      EXHIBIT
        L

      
         

        Form
          of Warrant

         

        [FORM
          OF COMMON STOCK WARRANT]

        

        THE
          SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
          ACT
          OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES
          NOR
          ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
          DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER SUCH ACT
          OR AN
          EXEMPTION FROM REGISTRATION, WHICH, IN THE OPINION OF COUNSEL REASONABLY
          SATISFACTORY TO COUNSEL FOR THIS CORPORATION, IS
          AVAILABLE.

        

         

        THIS
          WARRANT AND THE SHARES OF COMMON STOCK ISSUED UPON ITS

        EXERCISE
          ARE SUBJECT TO THE RESTRICTIONS ON

                     TRANSFER
          SET FORTH IN SECTION 5 OF THIS WARRANT        

         

        
          	
                  Warrant
                    No. [__]

                	
                  Number
                    of Shares: [___________]1 

                  (subject
                    to adjustment)

                
	
                  Date
                    of Issuance: [____________],
                    2008

                   

                  Original
                    Issue Date (as defined in

                  subsection
                    2(a)): [____________],
                    2008

                   

                	 

        

        Building
          Materials Holding Corporation

         

        Common
          Stock Purchase Warrant

         

        (Void
          after September 2015)

         

        Building
          Materials Holding Corporation, a Delaware corporation (the “Company”),
          for
          value received, hereby certifies that [________________]
          or its
          registered assigns (the “Registered
          Holder”),
          is
          entitled, subject to the terms and conditions set forth below, to purchase
          from
          the Company, at any time or from time to time on or before 5:00 p.m. (New
          York
          City time) on [____________],
          2015
          (the “Exercise
          Period”),
          [___________]
          shares
          of Common Stock, $0.001 par value per share, of the Company (“Common
          Stock”),
          at a
          purchase price of $[____]2 per
          share. The shares purchasable upon exercise of this Warrant, and the purchase
          price per share, each as adjusted from time to time pursuant to the provisions
          of this Warrant, are hereinafter referred to as the “Warrant
          Shares”
and
          the
“Purchase
          Price,”
          respectively. This Warrant is one of a series of Warrants issued by the
          Company
          on the date hereof (collectively, the “Company
          Warrants”).
          

         

        1. 
Total
          number of shares underlying all warrants,
          collectively, to equal 8.75% of BMHC’s issued and outstanding common stock, on a
          fully-diluted basis, as of the closing date.

         

        2. 
Exercise
          price to equal the closing price on the
          NYSE on the closing date. 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        1.    Exercise.

         

        (a)  Exercise
          for Cash.
          The
          Registered Holder may, at its option, elect to exercise this Warrant, in
          whole
          or in part and at any time or from time to time during the Exercise Period,
          by
          surrendering the purchase form appended hereto as Exhibit I
          duly
          executed by or on behalf of the Registered Holder, at the principal office
          of
          the Company, or at such other office or agency as the Company may designate,
          accompanied by payment in full, in lawful money of the United States, of
          the
          Purchase Price payable in respect of the number of Warrant Shares purchased
          upon
          such exercise. A facsimile or electronic PDF signature of the Registered
          Holder
          on the purchase form shall be sufficient for purposes of exercising this
          Warrant, provided that the Company receives the Registered Holder’s original
          signature with three (3) business days thereafter.

         

        (b)  Cashless
          Exercise.
          

         

        (i)  At
          any
          time during the Exercise Period when the resale of the Warrant Shares by
          the
          Registered Holder is not registered pursuant to an effective registration
          statement filed with the Securities and Exchange Commission under the Securities
          Act of 1933, as amended (the “Securities
          Act”),
          the
          Registered Holder may, at its option, elect to exercise this Warrant, in
          whole
          or in part, on a cashless basis, by surrendering this Warrant, with the
          purchase
          form appended hereto as Exhibit
          I
          duly
          executed by or on behalf of the Registered Holder, at the principal office
          of
          the Company, or at such other office or agency as the Company may designate
          and
          canceling a portion of this Warrant in payment of the Purchase Price payable
          in
          respect of the number of Warrant Shares purchased upon such exercise. In
          the
          event of an exercise pursuant to this subsection 1(b), the number of Warrant
          Shares issued to the Registered Holder shall be determined according to
          the
          following formula: 

         

        X
          =
Y(A-B)

        A

         

        
          	Where: 	X =  	 	the number of Warrant Shares that
                  shall be
                  issued to the Registered Holder; 
	 	 	 	 
	 	Y = 	 	the number of Warrant Shares for
                  which this
                  Warrant is being exercised (which shall include both the number
                  of Warrant
                  Shares issued to the Registered Holder and the number of Warrant
                  Shares
                  subject to the portion of the Warrant being cancelled in payment
                  of the
                  Purchase Price); 
	 	 	 	 
	 	A =	 	the Fair Market Value (as defined
                  below) of
                  one share of Common Stock, as of the date prior to the Exercise
                  Date;
                  and
	 	 	 	 
	 	B =	 	the Purchase Price then in
                  effect.

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        (ii)  “Fair
          Market Value”
means,
          for any security as of any date, the closing sale price for such security
          on the
          New York Stock Exchange (“NYSE”),
          as
          reported by Bloomberg, or, if the NYSE begins to operate on an extended
          hours
          basis and does not designate the closing sale price then the last sale
          price of
          such security prior to 4:00:00 p.m., New York City time, as reported by
          Bloomberg, or, if the NYSE is not the principal stock exchange for such
          security, the last sale price of such security on the principal securities
          exchange or trading market where such security is listed or traded as reported
          by Bloomberg, or if the foregoing do not apply, the last sale price of
          such
          security in an over-the-counter market on the electronic bulletin board
          for such
          security as reported by Bloomberg, or, if no last sale price is reported
          for
          such security by Bloomberg, the average of the ask prices of any market
          makers
          for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly
          the National Quotation Bureau, Inc.). If the Fair Market Value cannot be
          calculated for a security on a particular date on any of the foregoing
          bases,
          the Fair Market Value of such security on such date shall be the fair market
          value as mutually determined by the Company and the Registered Holder.
          If the
          Company and the Registered Holder are unable to agree upon the Fair Market
          Value
          of such security, then such dispute shall be resolved pursuant to Section
          13
          hereof. All such determinations shall be appropriately adjusted for any
          stock
          dividend, stock split, stock combination or other similar transaction during
          the
          applicable calculation period.

         

        (c)  Exercise
          Date.
          Each
          exercise of this Warrant shall be deemed to have been effected immediately
          prior
          to the close of business on the day on which the applicable purchase form
          shall
          have been surrendered to the Company as provided in subsection 1(a) or
          1(b)
          above (the “Exercise
          Date”).
          At
          such time, the person or persons in whose name or names any certificates
          for
          Warrant Shares shall be issuable upon such exercise as provided in subsection
          1(d) below shall be deemed to have become the holder or holders of record
          of the
          Warrant Shares represented by such certificates.

         

        (d)  Issuance
          of Certificates.
          As soon
          as practicable after the exercise of this Warrant in whole or in part,
          and in
          any event within five (5) business days thereafter, the Company, at its
          expense,
          will cause to be issued in the name of, and delivered to, the Registered
          Holder,
          or as the Registered Holder (upon payment by the Registered Holder of any
          applicable transfer taxes) may direct:

         

        (i)  a
          certificate or certificates for the number of full Warrant Shares to which
          the
          Registered Holder shall be entitled upon such exercise plus, in lieu of
          any
          fractional share to which the Registered Holder would otherwise be entitled,
          cash in an amount determined pursuant to Section 3 hereof; provided
          that in
          the event the Company's transfer agent is participating in The Depository
          Trust
          Company (“DTC”)
          Fast
          Automated Securities Transfer Program, upon the request of the Registered
          Holder
          in connection with the Registered Holder's sale of such Warrant Shares
          pursuant
          to an effective registration statement under the Securities Act or an exemption
          from the registration requirements of the Securities Act, the Company shall
          credit such aggregate number of shares of Common Stock to which the Registered
          Holder is entitled pursuant to such exercise to the Registered Holder's
          or its
          designee's balance account with DTC through its Deposit Withdrawal Agent
          Commission system; and

         

        (ii)  in
          case
          such exercise is in part only, a new warrant or warrants (dated the date
          hereof)
          of like tenor, calling in the aggregate on the face or faces thereof for
          the
          number of Warrant Shares equal (without giving effect to any adjustment
          therein)
          to the number of such shares called for on the face of this Warrant minus
          the
          number of Warrant Shares for which this Warrant was so exercised (which,
          in the
          case of an exercise pursuant to subsection 1(b), shall include both the
          number
          of Warrant Shares issued to the Registered Holder pursuant to such partial
          exercise and the number of Warrant Shares subject to the portion of the
          Warrant
          being cancelled in payment of the Purchase Price).

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        (e)
          Beneficial
          Ownership.
          The
          Company shall not effect the exercise of this Warrant, and the Registered
          Holder
          shall not have the right to exercise this Warrant, to the extent that after
          giving effect to such exercise, the Registered Holder (together with the
          Registered Holder's affiliates) would beneficially own in excess of 4.99%
          (the
“Maximum
          Percentage”)
          of the
          shares of Common Stock outstanding immediately after giving effect to such
          exercise.  For purposes of the foregoing sentence, the aggregate number of
          shares of Common Stock beneficially owned by the Registered Holder and
          its
          affiliates shall include the number of shares of Common Stock issuable
          upon
          exercise of this Warrant with respect to which the determination of such
          sentence is being made, but shall exclude shares of Common Stock which
          would be
          issuable upon (i) exercise of the remaining, unexercised portion of this
          Warrant
          beneficially owned by the Registered Holder and its affiliates and (ii)
          exercise
          or conversion of the unexercised or unconverted portion of any other securities
          of the Company beneficially owned by the Registered Holder and its affiliates
          (including, without limitation, any convertible notes or convertible preferred
          stock or warrants) subject to a limitation on conversion or exercise analogous
          to the limitation contained herein.  Except as set forth in the preceding
          sentence, for purposes of this paragraph, beneficial ownership shall be
          calculated in accordance with Section 13(d) of the Securities Exchange
          Act of
          1934, as amended.  For purposes of this Warrant, in determining the number
          of outstanding shares of Common Stock, the Registered Holder may rely on
          the
          number of outstanding shares of Common Stock as reflected in (1) the Company's
          most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public
          filing with the Securities and Exchange Commission, as the case may be,
          (2) a
          more recent public announcement by the Company or (3) any other notice
          by the
          Company or the Company's transfer agent setting forth the number of shares
          of
          Common Stock outstanding.  For any reason at any time, upon the written or
          oral request of the Registered Holder, the Company shall within two business
          days confirm orally and in writing to the Registered Holder the number
          of shares
          of Common Stock then outstanding.  In any case, the number of outstanding
          shares of Common Stock shall be determined after giving effect to the conversion
          or exercise of securities of the Company, including the Company Warrants,
          by the
          Registered Holder and its affiliates since the date as of which such number
          of
          outstanding shares of Common Stock was reported.  By written notice to the
          Company, the Registered Holder may from time to time increase or decrease
          the
          Maximum Percentage to any other percentage not in excess of 9.99% specified
          in
          such notice; provided that (i) any such increase will not be effective
          until the
          sixty-first (61st)
          day
          after such notice is delivered to the Company, and (ii) any such increase
          or
          decrease will apply only to the Registered Holder and not to any other
          holder of
          Company Warrants. 

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        2.    Adjustments.

         

        (a)  Adjustment
          for Stock Splits and Combinations.
          If the
          Company shall at any time or from time to time after the date on which
          this
          Warrant was first issued (or, if this Warrant was issued upon partial exercise
          of, or in replacement of, another warrant of like tenor, then the date
          on which
          such original warrant was first issued) (the “Original
          Issue Date”)
          effect
          a subdivision of the outstanding Common Stock, the Purchase Price then
          in effect
          immediately before that subdivision shall be proportionately decreased.
          If the
          Company shall at any time or from time to time after the Original Issue
          Date
          combine the outstanding shares of Common Stock, the Purchase Price then
          in
          effect immediately before the combination shall be proportionately increased.
          Any adjustment under this paragraph shall become effective at the close
          of
          business on the date the subdivision or combination becomes
          effective.

         

        (b)  Adjustment
          for Certain Dividends and Distributions.
          In the
          event the Company at any time, or from time to time after the Original
          Issue
          Date shall make or issue, or fix a record date for the determination of
          holders
          of Common Stock entitled to receive, a dividend or other distribution payable
          in
          additional shares of Common Stock, then and in each such event the Purchase
          Price then in effect immediately before such event shall be decreased as
          of the
          time of such issuance or, in the event such a record date shall have been
          fixed,
          as of the close of business on such record date, by multiplying the Purchase
          Price then in effect by a fraction:

         

        (1)  the
          numerator of which shall be the total number of shares of Common Stock
          issued
          and outstanding immediately prior to the time of such issuance or the close
          of
          business on such record date, and

         

        (2)  the
          denominator of which shall be the total number of shares of Common Stock
          issued
          and outstanding immediately prior to the time of such issuance or the close
          of
          business on such record date plus the total number of shares of Common
          Stock
          issuable in payment of such dividend or distribution; provided,
          however,
          that if
          such record date shall have been fixed and such dividend is not fully paid
          or if
          such distribution is not fully made on the date fixed therefore, the Purchase
          Price shall be recomputed accordingly as of the close of business on such
          record
          date and thereafter the Purchase Price shall be adjusted pursuant to this
          paragraph as of the time of actual payment of such dividends or distributions;
          and provided
          further
          that in
          no event shall the Purchase Price be reduced pursuant to this Section 2(b)(2)
          below the Fair Market Value of the Common Stock on the Original Issue
          Date.

         

        (c)  Adjustments
          for Other Dividends and Distributions.
          In the
          event the Company at any time or from time to time after the Original Issue
          Date
          shall make or issue, or fix a record date for the determination of holders
          of
          Common Stock entitled to receive, a dividend or other distribution payable
          in
          securities of the Company (other than shares of Common Stock) or in cash
          or
          other property (other than regular cash dividends paid out of earnings
          or earned
          surplus, determined in accordance with generally accepted accounting
          principles), then and in each such event provision shall be made so that
          the
          Registered Holder shall receive upon exercise hereof, in addition to the
          number
          of shares of Common Stock issuable hereunder, the kind and amount of securities
          of the Company, cash or other property which the Registered Holder would
          have
          been entitled to receive had this Warrant been exercised on the date of
          such
          event and had the Registered Holder thereafter, during the period from
          the date
          of such event to and including the Exercise Date, retained any such securities
          receivable during such period, giving application to all adjustments called
          for
          during such period under this Section 2 with respect to the rights of the
          Registered Holder.

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        (d)  Adjustment
          for Reorganization.
          

         

        (i)  If
          there
          shall occur any reorganization, recapitalization, reclassification,
          consolidation or merger involving the Company in which the Common Stock
          is
          converted into or exchanged for securities, cash or other property
          (collectively, a “Reorganization”),
          then,
          following such Reorganization, the Registered Holder shall receive upon
          exercise
          hereof the kind and amount of securities, cash or other property which
          the
          Registered Holder would have been entitled to receive pursuant to such
          Reorganization if such exercise had taken place immediately prior to such
          Reorganization. 

         

        (ii)  
          The
          provisions of this paragraph (d) shall similarly apply to subsequent
          transactions analogous to a Reorganization. In any such case, appropriate
          adjustment (as determined in good faith by the Board) shall be made in
          the
          application of the provisions set forth herein with respect to the rights
          and
          interests thereafter of the Registered Holder, to the end that the provisions
          set forth in this Section 2 (including provisions with respect to changes
          in and
          other adjustments of the Purchase Price) shall thereafter be applicable,
          as
          nearly as reasonably may be, in relation to any securities, cash or other
          property thereafter deliverable upon the exercise of this Warrant. 

         

        (e)  Adjustment
          for Certain Subsequent Offerings.
          

         

        (i)  In
          the
          event the Company, at any time after the Original Issue Date, shall issue
          shares
          of Additional Stock (as defined below) for consideration per share less
          than the
          Purchase Price in effect immediately prior to such issuance, then the Purchase
          Price in effect immediately prior to such issuance shall be adjusted in
          accordance with the following formula:

         

        
          	 	 	 	
                  C

                
	
                  AP
                    =

                	
                  P
                    x

                	
                  O
                    +

                	
                  P

                
	 	 	
                  A

                

        

         

        where:

         

        AP
          = the
          adjusted Purchase Price. 

         

        P
          = the
          then current Purchase Price. 

         

        O
          = the
          number of shares outstanding (on a fully-diluted basis, assuming the full
          conversion, exercise or exchange of all convertible securities then outstanding)
          immediately prior to the issuance of such additional shares. 

         

        C
          = the
          aggregate consideration received for the issuance of such additional shares.
          

         

        A
          = the
          number of shares outstanding (on a fully-diluted basis, assuming the full
          conversion, exercise or exchange of all Convertible Securities then outstanding)
          immediately after the issuance of such additional shares. 

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        (ii)  As
          used
          in this Section 2(e), “Additional
          Stock”
shall
          mean any shares of Common Stock issued by the Company or deemed to be issued
          pursuant to Section 2(e)(iii) after the Original Issue Date, except shares
          of
          Common Stock issued (A) by reason of a stock split, combination, dividend,
          or
          other distribution or issuance of shares of Common Stock that is covered
          by
          Sections 2(a), 2(b), 2(c) or 2(d); (B) to employees or directors of, or
          consultants or advisors to, the Company or any of its subsidiaries pursuant
          to a
          plan, agreement or arrangement approved by the Board of Directors of the
          Company; (C) upon exercise of the Company Warrants or any other warrants
          or
          convertible securities issued by the Company and outstanding as of the
          Original
          Issue Date or issued pursuant to clauses (A), (B) or (D) through (G) herein;
          (D)
          to banks, equipment lessors or other financial institutions in connection
          with
          loans or other extensions of credit made to the Company; (E) to suppliers
          or
          third party service providers in connection with the provision of goods
          or
          services (the primary purpose of which is not to raise equity capital);
          (F) in
          connection with sponsored research, collaborations, technology license,
          development, marketing or other similar agreements or mergers, acquisitions
          or
          strategic partnerships (the primary purpose of which is not to raise equity
          capital); or (G) upon exercise of any options, warrants or other rights
          assumed
          by the Company in connection with a merger or other acquisition. 

         

        (iii)  For
          the
          purpose of the adjustment required under this Section 2(e), if the Company
          issues or sells (A) stock or other securities (including, without limitation,
          warrants and options) convertible into, or exercisable in exchange for,
          shares
          of Additional Stock (such convertible stock or securities being herein
          referred
          to as “Convertible
          Securities”)
          or (B)
          rights or options for the purchase of shares of Additional Stock or Convertible
          Securities and if the Effective Price (as defined below) of such shares
          of
          Additional Stock is less than the Purchase Price in each case the Company
          shall
          be deemed to have issued at the time of the issuance of such rights or
          options
          or Convertible Securities the maximum number of shares of Additional Stock
          issuable upon exercise or conversion thereof and to have received as
          consideration for the issuance of such shares an amount equal to the total
          amount of the consideration, if any, received by the Company for the issuance
          of
          such rights or options or Convertible Securities, plus, in the case of
          such
          rights or options, the minimum amounts of consideration, if any, payable
          to the
          Company upon the exercise of such rights or options, plus, in the case
          of
          Convertible Securities, the minimum amounts of consideration, if any, payable
          to
          the Company (other than by cancellation of liabilities or obligations evidenced
          by such Convertible Securities) upon the conversion thereof; provided that
          if in
          the case of Convertible Securities the minimum amounts of such consideration
          cannot be ascertained, but are a function of antidilution or similar protective
          clauses, the Company shall be deemed to have received the minimum amounts
          of
          consideration without reference to such clauses; provided further that
          if the
          minimum amount of consideration payable to the Company upon the exercise
          or
          conversion of rights, options or Convertible Securities is reduced over
          time or
          on the occurrence or non-occurrence of specified events other than by reason
          of
          antidilution adjustments, the Effective Price shall be recalculated using
          the
          figure to which such minimum amount of consideration is reduced; provided
          further that if the minimum amount of consideration payable to the Company
          upon
          the exercise or conversion of such rights, options or Convertible Securities
          is
          subsequently increased, the Effective Price shall be again recalculated
          using
          the increased minimum amount of consideration payable to the Company upon
          the
          exercise or conversion of such rights, options or Convertible Securities.
          No
          further adjustment of the Purchase Price, as adjusted upon the issuance
          of such
          rights, options or Convertible Securities, shall be made as a result of
          the
          actual issuance of shares of Additional Stock on the exercise of any such
          rights
          or options or the conversion of any such Convertible Securities. If any
          such
          rights or options or the conversion privilege represented by any such
          Convertible Securities shall expire without having been exercised, the
          Purchase
          Price as adjusted upon the issuance of such rights, options or Convertible
          Securities shall be readjusted to the Purchase Price which would have been
          in
          effect had an adjustment been made on the basis that the only shares of
          Additional Stock so issued were the shares of Additional Stock, if any,
          actually
          issued or sold on the exercise of such rights or options or rights of conversion
          of such Convertible Securities, and such shares of Additional Stock, if
          any,
          were issued or sold for the consideration actually received by the Company
          upon
          such exercise, plus the consideration, if any, actually received by the
          Company
          for the granting of all such rights or options, whether or not exercised,
          plus
          the consideration received for issuing or selling the Convertible Securities,
          whether or not converted, plus the consideration, if any, actually received
          by
          the Company (other than by cancellation of liabilities or obligations evidenced
          by such Convertible Securities) on the conversion of such Convertible
          Securities. As used herein, the “Effective
          Price”
of
          the
          shares of Additional Stock shall mean the quotient determined by dividing
          the
          total number of shares of Additional Stock issued or sold, or deemed to
          have
          been issued or sold by the Company under this Section 2(e), into the aggregate
          consideration received, or deemed to have been received by the Company
          for such
          issue under this Section 2(e), for such shares of Additional Stock.

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        (f)  Certificate
          as to Adjustments.
          Upon
          the occurrence of each adjustment or readjustment of the Purchase Price
          pursuant
          to this Section 2, the Company at its expense shall, as promptly as reasonably
          practicable but in any event not later than ten business days thereafter,
          compute such adjustment or readjustment in accordance with the terms hereof
          and
          furnish to the Registered Holder a certificate setting forth such adjustment
          or
          readjustment (including the kind and amount of securities, cash or other
          property for which this Warrant shall be exercisable and the Purchase Price)
          and
          showing in detail the facts upon which such adjustment or readjustment
          is based.
          The Company shall, as promptly as reasonably practicable after the written
          request at any time of the Registered Holder (but in any event not later
          than
          five business days thereafter), furnish or cause to be furnished to the
          Registered Holder a certificate setting forth (i) the Purchase Price then
          in effect and (ii) the number of shares of Common Stock and the amount, if
          any, of other securities, cash or property which then would be received
          upon the
          exercise of this Warrant.

         

        (g)  Deminimis
          Adjustments.
          No
          adjustment in the Purchase Price need be made unless the adjustment would
          require an increase or decrease of at least 1% in the Purchase Price. Any
          adjustments that are not made shall be carried forward and taken into account
          in
          any subsequent adjustment.

         

        3.    Fractional
          Shares.
          The
          Company shall not be required upon the exercise of this Warrant to issue
          any
          fractional shares, but shall pay the value thereof to the Registered Holder
          in
          cash on the basis of the Fair Market Value per share of Common Stock, as
          determined pursuant to subsection 1(b) above. 

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        4.   Transfers,
          etc.

         

        (a)  Notwithstanding
          anything to the contrary contained herein, this Warrant and the Warrant
          Shares
          shall not be sold or transferred unless either (i) they first shall have
          been registered under the Securities Act, or (ii) such sale or transfer
          shall be exempt from the registration requirements of the Act and the Company
          shall have been furnished with an opinion of legal counsel, reasonably
          satisfactory to the Company, to the effect that such sale or transfer is
          exempt
          from the registration requirements of the Securities Act. Notwithstanding
          the
          foregoing, no registration or opinion of counsel shall be required for
          (i) a transfer by a Registered Holder which is an entity to a wholly owned
          subsidiary or affiliate of such entity, a transfer by a Registered Holder
          which
          is a partnership to a partner of such partnership or a retired partner
          of such
          partnership or to the estate of any such partner or retired partner, or
          a
          transfer by a Registered Holder which is a limited liability company to
          a member
          of such limited liability company or a retired member or to the estate
          of any
          such member or retired member to the extent any such transfers are exempt
          from
          the registration requirements of the Securities Act, provided that the
          transferee in each case agrees in writing to be subject to the terms of
          this
          Section 4, or (ii) a transfer made in accordance with Rule 144
          under the Securities Act.

         

        (b)  Each
          certificate representing Warrant Shares shall bear a legend substantially
          in the
          following form:

         

        “The
          securities represented hereby have not been registered under the Securities
          Act
          of 1933, as amended, or any state securities laws and neither the securities
          nor
          any interest therein may be offered, sold, transferred, pledged or otherwise
          disposed of except pursuant to an effective registration under such act
          or an
          exemption from registration, which, in the opinion of counsel reasonably
          satisfactory to counsel for this corporation, is available.”

         

        The
          foregoing legend shall be removed from the certificates representing any
          Warrant
          Shares, at the request of the Registered Holder thereof, at such time as
          they
          become eligible for resale pursuant to Rule 144(k) under the Securities Act
          or at such time as the Warrant Shares are sold or transferred in accordance
          with
          the requirements of a registration statement of the Company on Form S-1,
          or such
          other form as may then be in effect.

         

        (c)  The
          Company will maintain a register containing the name and address of the
          Registered Holder of this Warrant. The Registered Holder may change its
          address
          as shown on the warrant register by written notice to the Company requesting
          such change.

         

        (d)  Subject
          to the provisions of this Section 4, this Warrant and all rights hereunder
          are
          transferable, in whole or in part, upon surrender of this Warrant with
          a
          properly executed assignment (in the form of Exhibit II
          hereto)
          at the principal office of the Company (or, if another office or agency
          has been
          designated by the Company for such purpose, then at such other office or
          agency).

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

        5.    No
          Impairment.
          The
          Company will not, by amendment of its charter or through any reorganization,
          transfer of assets, consolidation, merger, dissolution, issue or sale of
          securities or any other voluntary action, avoid or seek to avoid the observance
          or performance of any of the terms of this Warrant, but will at all times
          in
          good faith assist in the carrying out of all such terms and in the taking
          of all
          such action as may be necessary or appropriate in order to protect the
          rights of
          the Registered Holder against impairment.

         

        6.    Notices
          of Record Date, etc. In the event:

         

        (a)  the
          Company shall take a record of the holders of its Common Stock (or other
          stock
          or securities at the time deliverable upon the exercise of this Warrant)
          for the
          purpose of entitling or enabling them to receive any dividend or other
          distribution, or to receive any right to subscribe for or purchase any
          shares of
          stock of any class or any other securities, or to receive any other right;
          or

         

        (b)  of
          any
          capital reorganization of the Company, any reclassification of the Common
          Stock
          of the Company, any consolidation or merger of the Company with or into
          another
          corporation, or any transfer of all or substantially all of the assets
          of the
          Company; or

         

        (c)  of
          the
          voluntary or involuntary dissolution, liquidation or winding-up of the
          Company,

         

        then,
          and
          in each such case, the Company will send or cause to be sent to the Registered
          Holder a notice specifying, as the case may be, (i) the record date for
          such
          dividend, distribution or right, and the amount and character of such dividend,
          distribution or right, or (ii) the effective date on which such reorganization,
          reclassification, consolidation, merger, transfer, dissolution, liquidation
          or
          winding-up is to take place, and the time, if any is to be fixed, as of
          which
          the holders of record of Common Stock (or such other stock or securities
          at the
          time deliverable upon the exercise of this Warrant) shall be entitled to
          exchange their shares of Common Stock (or such other stock or securities)
          for
          securities or other property deliverable upon such reorganization,
          reclassification, consolidation, merger, transfer, dissolution, liquidation
          or
          winding-up. Such notice shall be sent at least five business days prior
          to the
          record date or effective date for the event specified in such
          notice.

         

        7.    Reservation
          of Stock.
          The
          Company will at all times reserve and keep available, solely for issuance
          and
          delivery upon the exercise of this Warrant, such number of Warrant Shares
          and
          other securities, cash and/or property, as from time to time shall be issuable
          upon the exercise of this Warrant.

         

        8.    Exchange
          or Replacement of Warrants.

         

        (a)  Upon
          the
          surrender by the Registered Holder, properly endorsed, to the Company at
          the
          principal office of the Company, the Company will, subject to the provisions
          of
          Section 5 hereof, issue and deliver to or upon the order of the Registered
          Holder, at the Company’s expense, a new Warrant or Warrants of like tenor, in
          the name of the Registered Holder or as the Registered Holder (upon payment
          by
          the Registered Holder of any applicable transfer taxes) may direct, calling
          in
          the aggregate on the face or faces thereof for the number of shares of
          Common
          Stock (or other securities, cash and/or property) then issuable upon exercise
          of
          this Warrant.

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        (b)  Upon
          receipt of evidence reasonably satisfactory to the Company of the loss,
          theft,
          destruction or mutilation of this Warrant and (in the case of loss, theft
          or
          destruction) upon delivery of an indemnity agreement (with surety if reasonably
          requested) in an amount reasonably satisfactory to the Company, or (in
          the case
          of mutilation) upon surrender and cancellation of this Warrant, the Company
          will
          issue, in lieu thereof, a new Warrant of like tenor.

         

        9.    Notices.
          All
          notices and other communications from the Company to the Registered Holder
          in
          connection herewith shall be mailed by certified or registered mail, postage
          prepaid, or sent via a reputable nationwide overnight courier service
          guaranteeing next business day delivery, to the address last furnished
          to the
          Company in writing by the Registered Holder. All notices and other
          communications from the Registered Holder to the Company in connection
          herewith
          shall be mailed by certified or registered mail, postage prepaid, or sent
          via a
          reputable nationwide overnight courier service guaranteeing next business
          day
          delivery, to the Company at its principal office set forth below. If the
          Company
          should at any time change the location of its principal office to a place
          other
          than as set forth below, it shall give prompt written notice to the Registered
          Holder and thereafter all references in this Warrant to the location of
          its
          principal office at the particular time shall be as so specified in such
          notice.
          All such notices and communications shall be deemed delivered one business
          day
          after being sent via a reputable international overnight courier service
          guaranteeing next business day delivery. 

         

        10.  No
          Rights as Stockholder. Until the exercise of this Warrant, the Registered
          Holder shall not have or exercise any rights by virtue hereof as a stockholder
          of the Company. Notwithstanding the foregoing, in the event (i) the Company
          effects a split of the Common Stock by means of a stock dividend and the
          Purchase Price of and the number of Warrant Shares are adjusted as of the
          date
          of the distribution of the dividend (rather than as of the record date
          for such
          dividend), and (ii) the Registered Holder exercises this Warrant between
          the record date and the distribution date for such stock dividend, the
          Registered Holder shall be entitled to receive, on the distribution date,
          the
          stock dividend with respect to the shares of Common Stock acquired upon
          such
          exercise, notwithstanding the fact that such shares were not outstanding
          as of
          the close of business on the record date for such stock dividend.

         

        11.  Amendment
          or Waiver. Any term of this Warrant may be amended or waived (either
          generally or in a particular instance and either retroactively or prospectively)
          with the written consent of the Company and the holders of Company Warrants
          representing at least two-thirds of the number of shares of Common Stock
          then
          subject to outstanding Company Warrants. Notwithstanding the foregoing,
          (a) this
          Warrant may be amended and the observance of any term hereunder may be
          waived
          without the written consent of the Registered Holder only in a manner which
          applies to all Company Warrants proportionately and otherwise in the same
          fashion and (b) the number of Warrant Shares subject to this Warrant and
          the
          Purchase Price of this Warrant may not be amended, and the right to exercise
          this Warrant may not be waived, without the written consent of the Registered
          Holder (it being agreed that an amendment to or waiver under any of the
          provisions of Section 2 of this Warrant shall not be considered an amendment
          of
          the number of Warrant Shares or the Purchase Price). The Company shall
          give
          prompt written notice to the Registered Holder of any amendment hereof
          or waiver
          hereunder that was effected without the Registered Holder’s written consent. No
          waivers of any term, condition or provision of this Warrant, in any one
          or more
          instances, shall be deemed to be, or construed as, a further or continuing
          waiver of any such term, condition or provision.

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

        12.  Dispute
          Resolution. In the case of a dispute as to the determination of the Purchase
          Price or the arithmetic calculation of the Warrant Shares, the Company
          shall
          submit the disputed determinations or arithmetic calculations via facsimile
          within two business days of receipt of the Purchase Form giving rise to
          such
          dispute, as the case may be, to the Registered Holder. If the Holder and
          the
          Company are unable to agree upon such determination or calculation of the
          Purchase Price or the Warrant Shares within three business days of such
          disputed
          determination or arithmetic calculation being submitted to the Registered
          Holder, then the Company shall, within two business days submit via facsimile
          (a) the disputed determination of the Purchase Price to an independent,
          reputable investment bank selected by the Company and approved by the Registered
          Holder or (b) the disputed arithmetic calculation of the Warrant Shares
          to the
          Company's independent, outside accountant. The Company, at the Company's
          expense, shall use reasonable best efforts to cause at its expense the
          investment bank or the accountant, as the case may be, to perform the
          determinations or calculations and notify the Company and the Registered
          Holder
          of the results no later than ten business days from the time it receives
          the
          disputed determinations or calculations. Such investment bank's or accountant's
          determination or calculation, as the case may be, shall be binding upon
          all
          parties absent demonstrable error.

         

        13.  Section
          Headings. The section headings in this Warrant are for the convenience of
          the parties and in no way alter, modify, amend, limit or restrict the
          contractual obligations of the parties.

         

        14.  Governing
          Law. This Warrant will be governed by and construed in accordance with
          the
          internal laws of the State of New York (without reference to the conflicts
          of
          law provisions thereof).

         

        15.  Facsimile
          Signatures. This Warrant may be executed by facsimile signature or
          electronic document in PDF format.

         

         

        *
          * * * * * *

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

        EXECUTED
          as of the Date of Issuance indicated above.

         

         

        
          	 	
                  BUILDING
                    MATERIALS HOLDING CORPORATION

                   

                  By:________________________________

                    Name:

                    Title:

                

        

         

         

        ATTEST:

         

        _________________________

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

        EXHIBIT
          I

         

        PURCHASE
          FORM

         

        To:
          Building Materials Holding Corporation                                        Dated:____________

         

        

         

        The
          undersigned, pursuant to the provisions set forth in the attached Warrant
          (No. [__]),
          hereby
          elects to purchase (check
          applicable box):

         

        
          	      Ø  	
                  ____shares
                    of the Common Stock of Building Materials Holding
                    Corporation covered by such Warrant; or 

                

        

         

        
          	      Ø  	
                  ____
                    the maximum number of shares of Common Stock covered by such
                    Warrant
                    pursuant to the cashless exercise procedure set forth in
                    subsection 1(b).

                

        

         

        The
          undersigned herewith makes payment of the full purchase price for such
          shares at
          the price per share provided for in such Warrant. Such payment takes the
          form of
(check
          applicable box or boxes):

         

        
          	      Ø  	
                  $______
                    in lawful money of the United States;
                    and/or

                

        

         

        
          	      Ø  	
                  the
                    cancellation of such number of Warrant Shares as is necessary,
                    in
                    accordance with the formula set forth in subsection 1(b), to exercise
                    this Warrant with respect to the maximum number of Warrant Shares
                    purchasable pursuant to the cashless exercise procedure set forth
                    in
                    subsection 1(b). 

                

        

         

        Notwithstanding
          anything to the contrary contained herein, this Purchase Form shall constitute
          a
          representation by the holder of the Warrant submitting this Purchase Form
          that,
          after giving effect to the exercise provided for in this Purchase Form,
          such
          holder (together with its affiliates) will not have beneficial ownership
          (together with the beneficial ownership of such Person's affiliates) of
          a number
          of shares of Common Stock which exceeds the Maximum Percentage of the total
          outstanding shares of Common Stock as determined pursuant to the provisions
          of
          Section 1(e) of this Warrant.

         

         

        
          	 	
                  Signature: ______________________

                   

                  Address: _______________________

                   

                        _______________________

                

        

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

        EXHIBIT
          II

         

        ASSIGNMENT
          FORM

         

        FOR
          VALUE
          RECEIVED, _____________________ hereby sells, assigns and transfers all
          of the
          rights of the undersigned under the attached Warrant (No. [__])
          with
          respect to the number of shares of Common Stock of Building Materials Holding
          Corporation covered thereby set forth below, unto:

         

        
          	
                  Name
                    of Assignee

                	
                  Address

                	
                  No.
                    of Shares

                
	 	 	 
	 	 	 
	 	 	 
	 	 	 

        

        Dated:_____________________

         

        Signature:________________________________

         

        Signature
          Guaranteed:

         

        By:
          _______________________

         

        The
          signature should be guaranteed by an eligible guarantor institution (banks,
          stockbrokers, savings and loan associations and credit unions with membership
          in
          an approved signature guarantee medallion program) pursuant to Rule 17Ad-15
          under the Securities Exchange Act of 1934, as amended.

         

        

        
          
            
            

          

          
            15

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