Texas Industries,
Inc.
7¼% SENIOR NOTES DUE
2013
First Supplemental
Indenture
Dated as of August 18,
2008
to
Indenture
Dated as of July 6, 2005
Wells Fargo Bank, National
Association
Trustee
FIRST
SUPPLEMENTAL INDENTURE (the “Supplemental Indenture”),
dated as of August 18, 2008, between TEXAS INDUSTRIES, INC., a
Delaware corporation (the “Company”), certain of its
subsidiaries and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee
(the “Trustee”), under an Indenture dated as of July 6,
2005 (the “Indenture”).
WITNESSETH:
WHEREAS,
Section 9.01 of the Indenture provides, among other things, that
the Company, the Guarantors and the Trustee may, without the
consent of any Holder of a Note, amend or supplement the Indenture
(i) to provide for the issuance of Additional Notes in accordance
with the limitations set forth in the Indenture and (ii) to make
any change that would provide any additional or benefits to the
Holders of Notes or that does not materially adversely affect the
legal rights under the Indenture of any such Holder; and
WHEREAS, the
Company has offered for sale $300,000,000 of Notes pursuant to a
preliminary offering memorandum dated as of August 7, 2008 (the
“Offering Memorandum”) which would constitute
Additional Notes under the Indenture; and
WHEREAS, the
Company desires to amend the Indenture to provide for the automatic
exchange of beneficial interests in a Restricted Global Note for
the Additional Notes under certain circumstances for beneficial
interests in an Unrestricted Global Note.
WHEREAS,
concurrently with such offer the Company has delivered a Consent
Solicitation Statement dated as of August 7, 2008 (the
“Consent Solicitation Statement”) to the holders of
Notes, including the prospective purchasers of such Additional
Notes, and has provided in the Offering Memorandum and Consent
Solicitation Statement that purchasers of such Additional Notes are
deemed to consent to the amendment described in the Consent
Solicitation Statement and that the offer of such Additional Notes
is conditioned upon the purchasers thereof giving the consent
provided for therein (the “Consent”); and
WHEREAS,
prospective purchasers of such Additional Notes who accept the
Company’s offer, as part of such acceptance, have agreed to
purchase Additional Notes substantially in the form of Exhibit A
hereto and to give the Consent as described in the legend to such
Additional Notes; and
WHEREAS, all
things necessary to make this Supplemental Indenture a valid
supplement to the Indenture in accordance with its terms have been
done;
NOW, THEREFORE,
the parties hereto hereby agree as follows:
Section
1. Effectiveness of Supplemental
Indenture . This
Supplemental Indenture shall become effective as of the date
hereof.
Section
2. Additional Notes . On or after the date hereof, the Company will
issue $300,000,000 in aggregate principal amount of Additional
Notes which shall be considered Notes for all purposes under the
Indenture. The Additional Notes and the Trustee’s certificate
of authentication shall be substantially in the form of Exhibit A
hereto. Acceptance of such Additional Notes shall, as described in
the legend to such Additional Notes, constitute and confirm the
giving of the Consent.
Section
3. Amendment to Indenture . The following subsection (v) shall be added to
Section 2.07(b) of the Indenture:
(v)
Automatic Exchange of Beneficial
Interests in a Restricted Global Note for Beneficial Interests in
an Unrestricted Global Note. Upon the Company’s satisfaction
that the Private Placement Legend shall no longer be required in
order to maintain compliance with the Securities Act, beneficial
interests in a Restricted Global Note may be automatically
exchanged into beneficial interests in an Unrestricted Global Note
without any action required by or on behalf of the Holder (the
“Automatic Exchange”) at any time on or after the date
that is the 366th calendar day after the issue date of such Notes,
or, if such day is not a Business Day, on the next succeeding
Business Day (the “Automatic Exchange Date”). Upon the
Company’s satisfaction that the Private Placement Legend
shall no longer be required in order to maintain compliance with
the Securities Act, the Company may (i) provide written notice to
the Trustee at least 10 calendar days prior to the Automatic
Exchange, instructing the Trustee to direct the Depositary to
exchange all of the outstanding beneficial interests in a
particular Restricted Global Note to the Unrestricted Global Note,
which the Company shall have previously otherwise made eligible for
exchange with the DTC, (ii) provide prior written notice (the
“Automatic Exchange Notice”) to each Holder at such
Holder’s address appearing in the register of Holders at
least 10 calendar days prior to the Automatic Exchange Date (the
“Automatic Exchange Notice Date”), which notice must
include (w) the Automatic Exchange Date, (x) the section of the
Indenture pursuant to which the Automatic Exchange shall occur, (y)
the “CUSIP” number of the Restricted Global Note from
which such Holder’s beneficial interests will be transferred
and the (z) “CUSIP” number of the Unrestricted Global
Note into which such Holder’s beneficial interests will be
transferred, and (iii) on or prior to the date of the Automatic
Exchange, deliver to the Trustee for authentication one or more
Unrestricted Global Notes, duly executed by the Company, in an
aggregate principal amount equal to the aggregate principal amount
of Restricted Global Notes to be exchanged. At the Company’s
request on no less than 5 calendar days’ notice, the Trustee
shall deliver, in the Company’s name and at its expense, the
Automatic Exchange Notice to each Holder at such Holder’s
address appearing in the register of Holders. Notwithstanding
anything to the contrary in this Section 2.07, during the 10 day
period between the Automatic Exchange Notice Date and the Automatic
Exchange Date, no transfers or exchanges other than pursuant to
this Section 2.07(b)(v) shall be permitted without the prior
written consent of the Company. As a condition to any Automatic
Exchange, the Company shall provide, and the Trustee shall be
entitled to rely upon, an Officers’ Certificate in form
reasonably acceptable to the Trustee to the effect that the
Automatic Exchange shall be effected in compliance with the
Securities Act and that the restrictions on transfer contained
herein and in the Private Placement Legend shall no longer be
required in order to maintain compliance with the Securities Act
and that the aggregate principal amount of the particular
Restricted Global Note is to be transferred to the particular
Unrestricted Global Note by adjustment made on the records of the
Trustee, as custodian for the Depositary to reflect the Automatic
Exchange. Upon such exchange of beneficial interests pursuant to
this Section 2.07(b)(v), the aggregate principal amount of the
Global Notes shall be increased or decreased by adjustments made on
the records of the Trustee, as custodian for the Depositary, to
reflect the relevant increase or decrease in the principal amount
of such Global Note resulting from the applicable exchange. The
Restricted Global Note from which beneficial interests are
transferred pursuant to an Automatic Exchange shall be canceled
following the Automatic Exchange.
Section 4. Amendment to Indenture . Section 2.07(g)(i) of the Indenture shall be
deleted in its entirety and replaced by the following:
(i)
Private Placement Legend. Except as
permitted below, each Global Note and each Definitive Note (and all
Notes issued in exchange therefor or substitution thereof) shall
bear the legend in substantially the following form:
“THIS
NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE, THE
GUARANTEES ENDORSED HEREON NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS
SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS
NOTE AND THE GUARANTEES ENDORSED HEREON BY ITS ACCEPTANCE HEREOF
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO
THE DATE WHICH IS ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE
DATE HEREOF AND THE LAST DATE ON WHICH TEXAS INDUSTRIES, INC.
(“TEXAS INDUSTRIES”) OR ANY AFFILIATE OF TEXAS
INDUSTRIES WAS THE OWNER OF THIS NOTE AND THE GUARANTEES ENDORSED
HEREON (OR ANY PREDECESSOR OF THIS NOTE AND THE GUARANTEES ENDORSED
HEREON) (THE “RESALE RESTRICTION TERMINATION DATE”)
ONLY (A) TO TEXAS INDUSTRIES OR ANY SUBSIDIARY THEREOF, (B)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE NOTES AND THE GUARANTEES
ENDORSED THEREON ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO
WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS
THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT (E) PURSUANT TO AN EXEMPTION
FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE) OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO TEXAS
INDUSTRIES’ AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH
OFFER, SALE OR TRANSFER (1) PURSUANT TO CLAUSE (D) PRIOR TO THE END
OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSES (E) OR
(F) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM, AND (2) IN EACH OF THE
FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE
FORM APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE
REQUEST OF A HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.”
Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant
to subparagraph (b)(iv), (b)(v), (c)(iii), (c)(iv), (d)(ii),
(d)(iii), (e)(ii), (e)(iii) or (f) to this Section 2.07 (and all
Notes issued in exchange therefor or substitution thereof) shall
not bear the Private Placement Legend.
Section
5. Governing Law . THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN
AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE AND THE
INDENTURE AS AMENDED HEREBY.
Section
6. Terms Defined . Capitalized terms used in this Supplemental
Indenture and not otherwise defined herein shall have the
respective meanings set forth in the Indenture, as amended
hereby.
Section
7. Counterparts . This Supplemental Indenture may be signed in
any number of counterparts, each of which shall be an original,
with the same effect as if the signature thereto and hereto were
upon the same instrument.
Section
8. Severability Clause . In case any
provision in this Supplemental Indenture shall be invalid, illegal
or unenforceable, to the extent permitted by law, the validity,
legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.
Section
9. Ratification . Except as expressly amended by this
Supplemental Indenture, each provision of the Indenture shall
remain in full force and effect, and, as amended hereby, the
Indenture is in all respects agreed to, ratified and confirmed by
each of the Company, the Guarantors and the Trustee.
* * *
IN WITNESS
WHEREOF, the undersigned have caused this Supplemental Indenture to
be duly executed by their respective officers thereunto duly
authorized, all as of the day and year first above
written.
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“
Company”
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TEXAS
INDUSTRIES, INC.
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By:
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/s/Kenneth R.
Allen
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Name:
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Kenneth R.
Allen
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Title:
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Vice President,
Finance and
Chief Financial
Officer
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“Trustee”
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WELLS
FARGO BANK, N.A.
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By:
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/s/John C.
Stohlmann
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Name:
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John C.
Stohlmann
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Title:
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Vice
President
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“Guarantors”
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BROOKHOLLOW
CORPORATION
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BROOK HOLLOW
PROPERTIES, INC.
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BROOKHOLLOW OF
ALEXANDRIA, INC.
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BROOKHOLLOW OF
VIRGINIA, INC.
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SOUTHWESTERN
FINANCIAL CORPORATION
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CREOLE
CORPORATION
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PACIFIC CUSTOM
MATERIALS, INC.
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RIVERSIDE
CEMENT COMPANY
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PARTIN
LIMESTONE PRODUCTS, INC.
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RIVERSIDE
CEMENT HOLDINGS COMPANY
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TXI AVIATION,
INC.
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TXI CALIFORNIA
INC.
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TXI CEMENT
COMPANY
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TXI POWER
COMPANY
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TXI RIVERSIDE
INC.
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TXI
TRANSPORTATION COMPANY
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/s/Kenneth R.
Allen
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Kenneth R.
Allen, Authorized Signatory
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“
Guarantors”
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TEXAS
INDUSTRIES HOLDINGS, LLC
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TEXAS
INDUSTRIES TRUST
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TXI
LLC
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TXI OPERATING
TRUST
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/s/Kenneth R.
Allen
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Kenneth R.
Allen, Authorized Signatory
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TXI OPERATIONS,
LP
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By: TXI
Operating Trust, its general partner
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/s/Kenneth R.
Allen
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Kenneth R.
Allen, Authorized Signatory
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EXHIBIT A
[Face of Note]
[INSERT APPROPRIATE
LEGENDS]
BY VIRTUE OF
ITS ACCEPTANCE OF THIS NOTE, EACH HOLDER HEREOF CONSENTS TO, AND
SHALL BE DEEMED TO CONSENT TO AN AMENDMENT TO THE INDENTURE
REFERRED TO BELOW, WHICH CONSENT AND AMENDMENT ARE DESCRIBED IN THE
COMPANY’S OFFERING MEMORANDUM DATED AS OF AUGUST 7, 2008 AND
CONSENT SOLICITATION STATEMENT DATED AS OF AUGUST 7, 2008. SUCH
CONSENT SHALL BE EFFECTIVE UPON ISSUANCE OF THIS NOTE AND SHALL
BIND THE INITIAL HOLDER, AND ALL FUTURE HOLDERS, HEREOF.
THIS NOTE IS
ISSUED WITH OR
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