Related Party Transactions and Outside Related Director Information

Chaparral Steel Company (CHAP)

7/21/2005 10-12G/A Information

Following the distribution of our common stock, we will have a continuing relationship with TXI as a result of the agreements we have entered into in connection with the distribution, including the separation and distribution agreement and the tax sharing and indemnification agreement. For a detailed discussion of each of these agreements, please see “Arrangements between TXI and Chaparral Steel Company”.

After the distribution, many of our officers and directors will own shares of TXI common stock. Additionally, many of our officers and directors are former employees or directors of TXI. Ownership of TXI common stock could create or appear to create conflicts of interest for such directors and officers when faced with decisions that could have disparate implications for TXI and us.