Document:

LKQ-EXHIBIT10.4

Exhibit 10.4

LKQ CORPORATION 
 

 
CODE 
OF
ETHICS

Adopted:    March 4, 2013

  A MESSAGE FROM ROB WAGMAN:

         At LKQ, we are committed to conducting our business with the highest level of integrity and to complying with all laws and regulations.  This Code of Ethics (the “Code”) provides a set of basic principles to guide you regarding the minimum level of ethical requirements expected of you.  The Code supplements other employee documents and policies, including our employee handbook, and you should refer to these documents and policies if you need additional information. 
                        
Each member of the senior management team is committed to the highest ethical standards.  Because we place such a high priority on ethical conduct, please read the Code and think about how it applies to your position with LKQ.  In addition to acting ethically yourself, if you see or suspect unethical or illegal business conduct by anyone at LKQ, it is your duty to report it by one of the methods described in the Code.

Thank you for helping us maintain LKQ as a company committed to the highest standards of conduct.

                            
                            
                            
Robert L. Wagman
President and Cheif Executive Officer

                         

[2]

Table of Contents
	
		
	 
	Page

	Key Questions and Answers
	4

	 
	 

	The Relationship Between LKQ and its Employees
	6

	Conflicts of Interest
	6

	Confidentiality
	6

	Corporate Opportunities
	6

	Inventions
	7

	Protection and Use of Company Property
	7

	Employee Commitment
	7

	 
	 

	The Relationship Between LKQ and its Customers, Suppliers and Competitors
	8

	Fair Dealing
	8

	Gifts and Entertainment
	8

	Competitors
	8

	 
	 

	The Relationship Between LKQ and our Communities and Government
	9

	Compliance with Laws, Rules and Regulations
	9

	Political Contributions
	9

	Dealings with Government Officials
	9

	Commitment to the Communities in Which We Operate
	10

	 
	 

	The Relationship Among All LKQ Employees
	11

	Work Environment
	11

	 
	 

	Internal Matters
	12

	Disclosure in Reports and Documents
	12

	Social Media Policy
	12

	Accounting/Auditing Complaints
	12

	 
	 

	Legal Matters and Procedures
	13

	Accountability for Compliance with this Code
	13

	Compliance Standards and Procedures
	13

	Internal Use Only
	14

	 
	 

	What Happens when you Contact the Speak-Up Tip Line
	15

	 
	 

	Exhibit A – Code of Ethics Report Form
	16

[3]

KEY QUESTIONS AND ANSWERS
 

Q.    To whom does the Code apply?

		
	A.
	All directors, officers and employees (full-time, part-time and temporary) of LKQ.  These persons are called “Covered Persons” in the Code.

		
	Q.
	Who should I ask if I have a question about the Code?

		
	A.
	You should start by seeking guidance from your supervisor.  If you do not get a satisfactory answer, contact the Human Resources Department at (615) 781-5185.

		
	Q.
	If I see or suspect a violation of the Code, how do I report it?

		
	A.
	If you have any questions or concerns about compliance with this Code, you are encouraged to speak with your supervisor, representatives of the Human Resources Department or LKQ's General Counsel. Supervisors are required to notify the General Counsel or the Audit Committee, who each has authority to investigate instances of any event or activity that constitutes a violation or possible violation of this Code.  If you do not feel comfortable talking to any of these persons for any reason, or if you prefer to remain anonymous, you should complete the Code of Ethics Report Form attached as EXHIBIT A and submit it to the General Counsel or you may report the conduct through LKQ’s confidential “Speak Up” Tip Line.  Please note that the third party administering LKQ’s Tip Line may change from time to time, so please refer to the “Speak Up” poster at your location for current contact information.  

		
	Q.
	Can I be retaliated against for reporting a violation of the Code?

		
	A.
	LKQ prohibits any form of reprisal against an employee for filing a good faith complaint under this policy or for assisting in the investigation of one.

[4]

Q.    Will my report be confidential?

		
	A.
	LKQ will treat the information submitted in a confidential manner, if you so request, unless confidentiality is incompatible with a full and fair investigation unless there is an overriding reason for identifying you or unless disclosure of your identity is required by law.  

		
	Q.
	What will happen if I submit a report?

		
	A.
	The Audit Committee or the General Counsel will conduct an appropriate evaluation and investigation of any matter reported.   Covered Persons are expected to cooperate in any investigations of reported violations.  This Code is intended to encourage and enable employees and others to raise concerns within LKQ; however, any allegations that are made in bad faith will be viewed as a serious disciplinary offense.  

		
	Q.
	What will happen if I fail to report a violation of the Code?

		
	A.
	Failure to report knowledge of a violation of this Code or other misconduct may result in disciplinary action.  

[5]

THE RELATIONSHIP BETWEEN LKQ AND ITS EMPLOYEES
 

CONFLICTS OF INTEREST

A conflict of interest is any circumstance where an individual's personal interest interferes or even appears to interfere with the interests of LKQ. The best policy is to avoid any direct or indirect business connection with LKQ customers, suppliers or competitors, except on behalf of LKQ. Conflicts of interest are prohibited as a matter of LKQ policy, except under guidelines approved by the Board of Directors.  Conflicts may arise when a Covered Person, or a member of his or her family, receives improper personal benefits as a result of his or her position in LKQ.  Transactions that may involve a conflict of interest require full disclosure in accordance with this Code. The Legal Department will consult with management and outside counsel, as appropriate, to determine whether LKQ will enter into the transaction. Transactions that would be covered by our Related Party Transactions Policy will be addressed in accordance with that Policy.

CONFIDENTIALITY

Covered Persons are expected to maintain the confidentiality of information entrusted to them by LKQ, its suppliers, customers and stockholders, except when disclosure is authorized or legally required.  Covered Persons should be sensitive to the confidential and privileged nature of the information to which they have access concerning LKQ, and should exercise the discretion when discussing any work-related matters with third parties.  Each Covered Person should safeguard LKQ's Confidential Information and not disclose it to a third party without the prior consent of senior management. "Confidential Information" includes information (whether or not in written form) concerning the business, products, services, plans, strategies, suppliers, business relationships, employees, customers, prospects and financial affairs of LKQ and its affiliates, which is not generally known to the public or in the trade, is a competitive asset and the disclosure of which would likely result in a competitive disadvantage to LKQ.

LKQ employees are expected to sign an acknowledgment  regarding  the confidentiality policy set forth above at the time they become employed with LKQ and are expected  to comply with the confidentiality policy not only during their employment with LKQ but also after the end of their employment  with LKQ.

CORPORATE OPPORTUNITIES

Absent appropriate pre-approval, Covered Persons are prohibited from (a) taking for themselves opportunities that are discovered through the use of corporate property, information or position; (b) using corporate property, information or position for personal gain; and (c) competing with LKQ.

[6]

INVENTIONS

LKQ employees shall promptly communicate to LKQ all inventions and improvements that are conceived or discovered during the course of employment or through the use of LKQ facilities.   Such inventions and improvements are the property of LKQ, and as part of their duties, employees may be required to assist in obtaining and maintaining patents.

PROTECTION AND USE OF COMPANY PROPERTY

During their employment with LKQ, all Covered Persons should protect LKQ's assets and ensure they are used for legitimate business purposes. Improper use includes unauthorized personal appropriation or use of LKQ's assets, data or resources, including inventory, computer equipment and software.

EMPLOYEE COMMITMENT 

Each LKQ employee is expected to devote his or her full time and ability to LKQ's interests during regular hours of employment and for whatever additional time that may be properly required.  Employment or personal business commitments outside of regular hours of employment are prohibited if these would tend to impair the employee's ability to meet regular job responsibilities.   Extra employment or other outside business commitments must receive the approval of proper supervisory authority.

[7]

THE RELATIONSHIP BETWEEN
LKQ AND ITS CUSTOMERS, SUPPLIERS
AND COMPETITORS

 
FAIR DEALING

Each Covered Person should endeavor to deal fairly with LKQ's customers, suppliers and competitors and not take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practice.

GIFTS AND ENTERTAINMENT

Covered Persons may not accept from any person any gift of more than nominal value, loans or cash in any amount, excessive entertainment or travel, payments, services or other substantial or unusual favors from any person or concern which does or is seeking to do business with, or is a competitor of, LKQ. Covered Persons may not give such gifts to any such person or entity.  Subject to this requirement, gifts, gratuities or entertainment may be accepted if they are unsolicited and if the personal benefit falls into one of the following categories: (1) normal business courtesies, such as a meal or golf game, involving no more than ordinary amenities; (2) paid trips or guest accommodations that involve formal representation of LKQ (provided prior approval is obtained from the proper supervisory authority); (3) non-cash gifts with a nominal value, such as those received at holiday time; or (4) fees or other compensation received from an organization in which membership or an official position is held, as approved by LKQ. This section does not preclude Covered Persons from obtaining, on their own credit rating, regular loans from established banking or financial institutions.

COMPETITORS

On legal as well as ethical grounds, Covered Persons must refrain from all dealings with competitors for the purpose of setting or controlling prices, rates, trade practices, costs or any other activities prohibited by laws regulating competition.  Care should be taken to insure that, in meetings of trade associations and other industry groups, competitive practices, supply plans and prices are not discussed.   If discussions relating to antitrust-sensitive topics persist even after the Covered Person attempts to change the subject, the Covered Person is expected to leave the area where such discussions are taking place and report this to LKQ's Legal Department.

[8]

THE RELATIONSHIP BETWEEN LKQ
AND OUR COMMUNITIES AND GOVERNMENT

 
COMPLIANCE WITH LAWS, RULES AND REGULATIONS

It is LKQ’s policy to comply with the laws of each country in which we do business.  It is the responsibility of each employee to be familiar with the laws and regulations that relate to their business responsibilities and to comply with them.  In some instances, local laws may be less restrictive than the principles contained in this Code.  In those situations, Covered Persons should comply with this Code, even if their conduct would be legal under applicable laws.  On the other hand, if local laws are more restrictive than this Code, Covered Persons should comply with applicable laws.  In this context, legal compliance includes, without limitation, compliance with LKQ's Insider Trading Policy, which prohibits persons subject to that policy from trading LKQ securities while in possession of material non-public information or communicating material non-public information to others in violation of the law, and LKQ’s Policy on Reporting Theft or Fraud, which requires all instances of theft or fraud to be reported to the Vice President of Internal Audit. 

POLITICAL CONTRIBUTIONS

Federal and state laws restrict corporations like LKQ from contributing to political candidates.  Accordingly, contributions by or on behalf of LKQ are made with the approval of the Vice President of Government Affairs.  Covered Persons are permitted to engage in political activity on their own time using their own resources.  However, some states restrict even personal political contributions by employees who are responsible for doing business with governmental agencies.  Covered Persons at their own direction may make personal political contributions to the LKQ political action committee (PAC) called the Employee Good Government Fund.  

DEALINGS WITH GOVERNMENT OFFICIALS 

LKQ’s relationships with government agencies, officials and personnel in the United States and foreign countries should be conducted in such a manner that complete public disclosure would not embarrass or damage LKQ’s reputation.  In any association with elected members or public servants, Covered Persons should exercise care to avoid expenditures and other acts that might be perceived as improper or in violation of applicable laws.  The U.S. Foreign Corrupt Practices Act makes it illegal for companies, as well as their employees or agents, to pay a foreign government official, political party, party official or candidate for the purpose of obtaining favors or retaining business.  The U.K. Bribery Act of 2010 makes it illegal to bribe a public official or private person and applies to companies that have operations in the U.K. (even if not headquartered there).  Other countries in which LKQ operates may have similar laws.

[9]

COMMITMENT TO THE COMMUNITIES IN WHICH WE OPERATE

LKQ assigns a high priority to protecting the environment and to providing safe, clean facilities and services in all communities in which it operates. LKQ encourages employees to become involved in community non-profit, charitable and political activity.  However, the level of participation should not create a conflict with the individual's corporate responsibilities.

[10]

THE RELATIONSHIP AMONG
ALL LKQ EMPLOYEES

 
WORK ENVIRONMENT

LKQ is committed to fostering a work environment where all individuals are treated with respect and dignity.  Each individual should be permitted to work in a business-like atmosphere that promotes equal employment opportunities. Accordingly, discrimination based on any characteristic protected by applicable law or harassment in any form will not be tolerated.   Harassment includes verbal or physical conduct of a sexual nature which has the purpose or effect of interfering with an individual's work performance or creating an intimidating, hostile or offensive work environment.  In addition, LKQ prohibits unwelcome sexual advances and requests for sexual favors and harassment not overtly sexual in nature but improperly directed at, or commenting on attributes or characteristics of, a person solely because of his or her gender.   

[11]

INTERNAL MATTERS

 
DISCLOSURE IN REPORTS AND DOCUMENTS

As a public company, LKQ's filings with the U.S. Securities and Exchange Commission (the “SEC”) and other federal and state regulatory agencies must be timely, complete and accurate.  Depending on his or her position with LKQ, a Covered Person may be called upon to provide necessary information to assure that LKQ's public reports and regulatory filings are timely, complete and accurate.

LKQ is committed to compliance with all applicable financial reporting and accounting regulations.  LKQ expects all Covered Persons to record information accurately and truthfully. LKQ also expects all Covered Persons to be diligent in providing accurate information in response to any inquiries related to LKQ's public disclosure requirements. Covered Persons must cooperate and comply with LKQ's disclosure controls and procedures so that LKQ's reports and documents filed with the SEC and other federal and state regulatory agencies comply in all material respects with applicable laws, rules and regulations.

SOCIAL MEDIA POLICY 

Covered Persons should conduct themselves appropriately while using social media. LKQ has a Social Media Policy to provide guidance for Covered Persons to help account for the increasingly blurred lines between professional and personal lives in the online world and to maximize the benefits and minimize the risks to LKQ that social media presents. Please refer to LKQ Policy No. L550 for a full copy of the Social Media Policy.

ACCOUNTING/AUDITING COMPLAINTS
Please refer to LKQ's Policy for Handling Complaints Regarding Accounting and Auditing Matters (available at www.lkqcorp.com under the Governance section of the Investor Relations link.)

[12]

LEGAL MATTERS AND PROCEDURES

ACCOUNTABILITY FOR COMPLIANCE WITH THIS CODE

LKQ is committed to uphold ethical standards in all of its corporate and business activities.  A violation of this Code may result in appropriate disciplinary action, including possible termination from employment with LKQ.  Nothing in this Code restricts LKQ from taking any disciplinary action on any matters pertaining to the conduct of a Covered Person, whether or not expressly set forth in this Code.

COMPLIANCE STANDARDS AND PROCEDURES 

Training and Educational Requirements.

		
	•
	Orientation. New Covered Persons will receive a copy of this Code during the orientation process conducted by the Human Resources Department and shall acknowledge that they have received, read and understand this Code and will comply with its requirements.

		
	•
	Continuing Education. Covered Persons shall be required to complete additional training and continuing education requirements as LKQ shall from time to time establish.

Waiver Requests. A Covered Person may submit to the General Counsel a written request for a waiver of this Code only if he/she can demonstrate that such a waiver:

•    is necessary to alleviate undue hardship; 

•   is otherwise appropriate under all the relevant facts and circumstances;

•    will not be inconsistent with the purposes and objectives of this Code;

•    will not adversely affect the interests of LKQ; and

		
	•
	will not result in a transaction or conduct that would violate any applicable laws or regulations.

The General Counsel will forward all waiver requests involving a director or an executive officer to LKQ's Board of Directors or a committee thereof for consideration.  All other waiver requests will be considered by the Chief Executive Officer of LKQ.  Any decision to grant a waiver from this Code shall be at the sole and absolute discretion of the board, the board committee or the Chief Executive Officer, as appropriate.  The General Counsel will promptly advise the Covered Person in writing of the decision regarding the waiver.

[13]

INTERNAL USE ONLY

This Code is intended solely for internal use by LKQ.  No activity, reports or records shall constitute an admission, by or on behalf of LKQ, as to any fact, circumstance or legal conclusion.

[14]

WHAT HAPPENS WHEN YOU CONTACT THE SPEAK-UP TIP LINE?

800-544-7459  You  Independent Reporting Service  www.reportlineweb.com/lkqcorp
You can contact the tip line by phone or internet.
The tip line is staffed by an independent company that specializes in processing tips.
You provide details about the tip.
Your report is sent to LKQ headquarters.
The case is assigned to appropriate LKQ personnel for investigation.
Based on the investigation, an action plan is implemented if necessary.

[15]

EXHIBIT A

LKQ CORPORATION

CODE OF ETHICS REPORT FORM

Your name: ________________________________________________________________________________

Department: _______________________________________________________________________________ 

Supervisor: ________________________________________________________________________________ 

Telephone:  ________________________________________________________________________________

E-mail: ___________________________________________________________________________________

IF YOU MAKE A REPORT UNDER THIS CODE, LKQ WILL ENDEAVOR TO KEEP YOUR IDENTITY CONFIDENTIAL UNTIL A FORMAL INVESTIGATION IS LAUNCHED.  AT THAT POINT, YOUR IDENTITY MAY BE KEPT CONFIDENTIAL, IF REQUESTED, UNLESS CONFIDENTIALITY   IS  INCOMPATIBLE  WITH  A  FULL  AND  FAIR  INVESTIGATION,  UNLESS THERE  IS  AN  OVERRIDING  REASON  FOR  IDENTIFYING  YOU  OR  UNLESS  DISCLOSURE  OF YOUR IDENTITY IS REQUIRED BY LAW.

Describe Reportable Activity:  _________________________________________________________________

__________________________________________________________________________________________ 

Date you became aware of Reportable Activity:  ________________________, 20___

Reportable Activity is:  ___ Ongoing     ___ Completed      ___ Unclear whether ongoing or completed

Department suspected of Reportable Activity: ____________________________________________________

Individuals(s) suspected of Reportable Activity: ___________________________________________________

__________________________________________________________________________________________ 

How did you become aware of the Reportable Activity? ____________________________________________

__________________________________________________________________________________________ 

__________________________________________________________________________________________ 

Describe any steps you took prior to completing this Report Form (e.g., informed supervisor): ______________

__________________________________________________________________________________________ 

__________________________________________________________________________________________ 

[16]

Who, if anyone, may be harmed or affected by the Reportable Activity?________________________________

__________________________________________________________________________________________ 
    
If possible, estimate the amount of loss to LKQ as a result of the Reportable Activity:

Actual:  ________________________________ Potential:  ________________________________ 

Please provide any suggestions for remedying the Reportable Activity: _____________________________

__________________________________________________________________________________________ 

Do you wish to be contacted by the General Counsel or Audit Committee of the Board of Directors regarding the status of the investigation:   _______ Yes     _______ No 

Please return this form to:
        

LKQ's General Counsel:

Phone Number:         312-621-1950
Fax Number:         312-207-1529
Mailing Address: 
LKQ Corporation
500 W. Madison St., Suite 2800
Chicago, IL 60661

If you are not comfortable  speaking with the General  Counsel or if the General Counsel is unavailable and the matter is urgent, you may contact the Audit Committee of the Board of  Directors (contact information for the Audit Committee members can be obtained by calling   LKQ's headquarters at 312-621-1950).

[17]Exhibit1037-ExecutiveSeveranceAgreement-Poulsen

Exhibit 10.37

EXECUTIVE SEVERANCE AGREEMENT
This Executive Severance Agreement (“Agreement”), including the attached Exhibit “A,” which is incorporated herein by reference and made an integral part of this Agreement, is entered into between U.S. Concrete, Inc., a Delaware corporation (the “Company”), and Niel L. Poulsen (“Executive”) effective as of January 23, 2013 (the “Effective Date”). In consideration of the mutual agreements, provisions and covenants contained herein, and intending to be legally bound hereby, the Company and Executive agree as follows:
1.Termination
1.1    Termination By the Company.  The Company may terminate Executive’s employment for any of the following reasons:
a.    Termination for Cause.  For “Cause” upon the determination by a majority of the Company’s Board of Directors that “Cause” exists to terminate Executive’s employment.  “Cause” means (i) Executive’s gross negligence, willful misconduct, or willful neglect in the performance of the material duties and services of Executive to the Company in his current Position (as set forth on Exhibit “A” or any Position to which Executive has been promoted (provided Executive has accepted such promotion)); (ii) Executive’s final conviction of a felony by a trial court, or Executive’s entry of a plea of nolo contendere to a felony charge; (iii) any criminal indictment of Executive relating to an event or occurrence for which Executive was directly responsible which, in the business judgment of a majority of the Company’s Board of Directors, exposes the Company to ridicule, shame or business or financial risk; or (iv) a material breach by Executive of any material provision of this Agreement.  If the Company terminates Executive’s employment for Cause, Executive shall be entitled only to Executive’s (a) pro rata Monthly Base Salary (as defined in Exhibit “A”) through the date of such termination, and (b) unused vacation days earned for the year prior to the year in which Executive’s termination occurs, plus pro rata vacation days earned for the year in which Executive’s termination occurs (collectively, the “Accrued Payments”).  All future compensation and benefits, other than benefits to which Executive is entitled under the terms of the Company’s compensation and/or benefit plans or applicable law, shall cease as of the date of such termination.  In the case of a termination for Cause under subpart (i) above, (a) all stock options previously granted by the Company to Executive that are vested on the date of termination for Cause shall, notwithstanding any contrary provision of any applicable plan or agreement covering any such stock option awards, remain outstanding and continue to be exercisable for a period of 30 days following the date of termination for Cause (or, if earlier, the expiration of their term), (b) all stock options previously granted by the Company to Executive that are not vested on the date of termination for Cause shall terminate immediately and (c) all restricted stock, restricted stock units and other awards that have not vested prior to the date of termination for Cause shall be cancelled immediately.  In the case of a termination for Cause under subparts (ii), (iii) or (iv) above, (y) all stock options 

1

Exhibit 10.37

previously granted by the Company to Executive (whether or not vested) shall terminate immediately and (z) all restricted stock, restricted stock units and other awards that have not vested prior to the date of termination for Cause shall be cancelled immediately.
b.    Involuntary Termination.  Without Cause at the Company’s option at any time, with or without notice and for any reason whatsoever, other than death, Disability or for Cause, in the sole discretion of the Company (“Involuntary Termination”).  Upon an Involuntary Termination, Executive shall receive all of the following severance benefits (provided, however, that, in the event of an Involuntary Termination in circumstances in which the provisions of Section 1.3 would be applicable, the provisions of Section 1.3 will instead apply):
(i)    a lump sum payment in cash (in accordance with Section 4.11) equal to the Monthly Base Salary in effect on the date of Involuntary Termination multiplied by 12;
(ii)    a lump-sum payment in cash (in accordance with Section 4.11) equal to the amount of (a) Executive’s target bonus for the bonus year in which Executive’s Involuntary Termination occurs, prorated based on the number of days in the bonus year that have elapsed prior to the date of Involuntary Termination, and (b) Executive’s Accrued Payments.
(iii)    provided that Executive is eligible for and timely elects to receive group medical continuation coverage under COBRA, the Company will pay 100% of applicable medical continuation premiums for the benefit of Executive (and his covered dependents as of the date of his termination, if any) under Executive’s then-current plan election for 18 months after termination, with such coverage to be provided under the closest comparable plan as offered by the Company from time to time; and
(iv)    fifty percent (50%) of all stock options, restricted stock awards, restricted stock units and similar equity awards granted to Executive by the Company prior to the date of termination (collectively, the “Outstanding Equity Awards”) that would otherwise have vested during the twelve month period following the date of Involuntary Termination if such termination had not occurred shall immediately vest and become exercisable on the date of termination.
(v)    The remaining portion of all Outstanding Equity Awards, if any, which is unvested on the date of Involuntary Termination shall be forfeited and canceled in its entirety upon the date of Involuntary Termination. 
(vi)    Each Outstanding Equity Award which is or becomes vested and exercisable on the date of Involuntary Termination shall remain 

2

Exhibit 10.37

outstanding and exercisable until the earlier of (a) the expiration of the twelve month period which commences on the date of Involuntary Termination and (b) the expiration date of the original term of the Outstanding Equity Award.
c.    Death/Disability.  Upon Executive’s (i) death, or (ii) Disability.  For purposes of this Agreement, “Disability” means if Executive becomes physically or mentally incapacitated and is therefore unable for a period of one hundred twenty (120) consecutive days or one-hundred eighty (180) days during any one (1) year period to perform his duties with substantially the same level of quality as immediately prior to such incapacity.  Upon termination of employment due to such death or Disability, Executive or Executive’s heirs shall be entitled to receive all severance benefits described in Section 1.1.b. as if Executive’s employment ended due to an Involuntary Termination by the Company as of the date of death or Disability.  Additionally, each Outstanding Equity Award which is (i) vested and exercisable on the date of termination due to death or Disability shall remain outstanding and exercisable until the earlier of (a) the expiration of the twelve month period which commences on the date of such termination and (b) the expiration date of the original term of the Outstanding Equity Award, and (ii) unvested on the date of termination due to death or Disability shall be forfeited and canceled in its entirety upon the date of such termination.
1.2    Termination By Executive.    Executive may terminate Executive’s employment for any of the following reasons:
a.    Termination for Good Cause.  For “Good Cause”, which shall mean the occurrence of any of the following events, without Executive’s consent: (i) a material diminution in Executive’s then current Monthly Base Salary, (ii) a material change in the location of Executive’s principal place of employment by the Company from the “Location” set out on Exhibit “A,” (iii) any material diminution in Executive’s Position from that set out on Exhibit “A” or any title or Position to which Executive has been promoted, (iv) any material diminution of Executive’s authority, duties, or responsibilities from those commensurate and consistent with the character, status and dignity appropriate to Executive’s Position or any title or Position to which Executive has been promoted (provided, however, that if at any time Executive ceases to have such duties and responsibilities as are commensurate and consistent with his Position that are associated with a publicly traded company because the Company ceases to have any securities registered under Section 12 of the Securities Exchange Act of 1934, as amended, or ceases to be required to file reports under Section 15(d) of the Securities Exchange Act of 1934, as amended, then Executive’s authority, duties and responsibilities will not be deemed to have been materially diminished solely due to the cessation of such publicly-traded company duties and responsibilities), or (v) any material breach by the Company of any material provision of this Agreement, which in the case of any of (i) through (v) above remains uncorrected by the Company for 30 days following Executive’s written notice to the Company of Good Cause.  Executive must provide such written notice to the 

3

Exhibit 10.37

Company of Good Cause within 60 days of the initial existence of such specified event alleged to constitute Good Cause.  Executive shall not be entitled to terminate his employment for Good Cause with respect to specified events unless Executive tenders resignation for Good Cause within 30 days of the Company’s failure to cure. Upon Executive’s termination of employment for Good Cause, Executive shall receive all severance benefits and equity treatment described in Section 1.1.b. as if Executive’s employment ended due to an Involuntary Termination by the Company (provided, however, that, in the event of a termination for Good Cause in circumstances in which the provisions of Section 1.3 would be applicable, the provisions of Section 1.3 will instead apply).
b.    Voluntary Termination.  For any other reason whatsoever, in Executive’s sole discretion, upon thirty (30) days advance written notice to the Company.  Upon such voluntary termination by Executive for any reason other than Good Cause (a “Voluntary Termination”), all of Executive’s future compensation and benefits, other than benefits to which Executive is entitled under the terms of the Company’s compensation and/or benefit plans or applicable law, shall cease as of the date of Voluntary Termination, and Executive shall be entitled only to the Accrued Payments.  In the case of a Voluntary Termination, (i) all stock options previously granted by the Company to Executive that are vested on the date of Voluntary Termination will remain outstanding and continue to be exercisable by Executive until 90 days after the date of Voluntary Termination (or, if earlier, the expiration of their term), and (ii) all Outstanding Equity Awards that have not vested prior to the date of Voluntary Termination shall be cancelled immediately.
1.3    Termination Following Change In Control.  In the event a Change in Control (as defined herein) occurs and within one year after the date of the Change in Control either (a) Executive terminates his employment for Good Cause or (b) the Company or any successor (whether direct or indirect and whether by purchase, merger, consolidation, share exchange or otherwise) to substantially all of the business, properties and/or assets of the Company makes an Involuntary Termination of Executive’s employment, then in either case the Company or its successor shall be required to provide Executive, and Executive shall receive, all of the following Change in Control benefits:
(i)    a lump sum payment in cash equal to (a) the sum of (I) Executive’s Monthly Base Salary in effect on the termination date multiplied by 12, and (II) the amount of Executive’s full target bonus for the bonus year in which termination occurs, multiplied by (b) the Change in Control Multiplier described on Exhibit “A”, payable on the termination date (subject to Section 4.11);
(ii)    a lump-sum payment in cash (in accordance with Section 4.11) equal to the Accrued Payments;
(iii)    provided that Executive is eligible for and timely elects to receive group medical continuation coverage under COBRA, the Company 

4

Exhibit 10.37

will pay 100% of applicable medical continuation premiums for the benefit of Executive (and his covered dependents as of the date of his termination, if any) under Executive’s then-current plan election for 18 months after termination, with such coverage to be provided under the closest comparable plan as offered by the Company from time to time; and
(iv)    all stock options, restricted stock awards, restricted stock units and similar awards granted to Executive by the Company prior to the termination date shall be treated in accordance with Section 3.2.
1.4    Offset.  In all cases, the compensation and benefits payable to Executive under this Agreement upon termination of Executive’s employment shall be offset by any undisputed amounts that Executive then owes to the Company.  Notwithstanding the foregoing, an offset may apply to compensation or benefits under this Agreement only at the time when the compensation or benefits otherwise would have been paid under this Agreement.
1.5    One Recovery.  In the event of termination of Executive’s employment, Executive shall be entitled, if at all, to only one set of severance benefits or Change in Control benefits, as applicable, provided in this Agreement.
1.6    Certain Obligations Continue.  Upon termination of Executive’s employment, all rights and obligations of Executive and the Company or its successor under this Agreement shall cease as of the effective date of termination except that (i) Executive’s obligations under Article 2 and Sections 4.1 and 4.4 of this Agreement and the Company’s or its successor’s obligations under Article 3 and Sections 1.1, 1.2, 1.3, 2.6, 4.1 and 4.4 and the Company’s or its successor’s obligations to provide any severance benefits or Change in Control benefits to Executive shall survive such termination in accordance with their terms, and (ii) Executive shall be entitled to receive all compensation (including bonus) earned and benefits and reimbursements due through the effective date of termination as provided herein.
1.7    Notice of Termination.  Any termination of Executive’s employment shall be communicated by Notice of Termination to the non-terminating party, given in accordance with this Agreement.  For purposes of this Agreement, “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated, and (iii) specifies the termination date, if such date is other than the date of receipt of such notice.
2.    Confidential Information; Post-Employment Obligations
2.1    Company Property.  All written materials, records, data, and other documents prepared by Executive during Executive’s employment by the Company are Company property.  All information, ideas, concepts, improvements, discoveries, and inventions that are conceived, made, developed, or acquired by Executive individually or in conjunction 

5

Exhibit 10.37

with others during Executive’s employment (whether during business hours and whether on the Company’s premises or otherwise) which relate to the Company’s business, products, or services are the Company’s sole and exclusive property.  All memoranda, notes, records, files, correspondence, drawings, manuals, models, specifications, computer programs, maps, and all other documents, data, or materials of any type embodying such information, ideas, concepts, improvements, discoveries, and inventions are the Company’s property.  At the termination of Executive’s employment with the Company for any reason, Executive shall return all of the Company’s documents, data, or other Company property, including all copies, to the Company.
2.2    Confidential Information; Non-Disclosure.  
b.    Executive acknowledges that the business of the Company and its Affiliates is highly competitive and that the Company will provide Executive with access to Confidential Information relating to the business of the Company and its Affiliates.  “Confidential Information” means and includes the Company’s and its Affiliates’ confidential and/or proprietary information and/or trade secrets that have been developed or used and/or are reasonably planned to be developed and that cannot be obtained readily by third parties from outside sources.  Confidential Information includes, by way of example and without limitation, the following: information regarding customers, employees, contractors, and the industry not generally known to the public; strategies, methods, books, records, and documents; technical information concerning products, equipment, services, and processes, particularly mixing techniques, mix designs or chemical analyses of concrete products; procurement procedures and pricing techniques; the names of and other information concerning customers, investors, and business affiliates (such as contact name, service provided, pricing for that customer, type and amount of services used, credit and financial data, and/or other information relating to the Company’s relationship with that customer); pricing strategies and price curves; positions; plans and strategies for expansion or acquisitions; budgets; customer lists; research; financial and sales data; trading methodologies and terms; evaluations, opinions, and interpretations of information and data; marketing and merchandising techniques; prospective customers’ names and marks; grids and maps; electronic databases; models; specifications; computer programs; internal business records; contracts benefiting or obligating the Company or its Affiliates; bids or proposals submitted to any third party; technologies and methods; training methods and training processes; organizational structure; personnel information, including salaries of personnel; payment amounts or rates paid to consultants or other service providers; and other such confidential or proprietary information.  Executive acknowledges that this Confidential Information constitutes a valuable, special, and unique asset used by the Company and its Affiliates in its businesses to obtain a competitive advantage over its competitors.  Executive further acknowledges that protection of such Confidential Information against unauthorized disclosure and use is of critical importance to the Company in maintaining its competitive position.  Executive also will have access to, or knowledge of, Confidential Information of third parties, such 

6

Exhibit 10.37

as actual and potential customers, suppliers, partners, joint venturers, investors, financing sources and the like, of the Company.  The Company also agrees to provide Executive with access to Confidential Information and specialized training regarding the Company’s and its Affiliates’ methodologies and business strategies, which will enable Executive to perform his job at the Company.
c.    Executive agrees that Executive will not, at any time during or after Executive’s employment with the Company, make any disclosure of any Confidential Information or specialized training of the Company, or make any use thereof without the express advance written consent of the Company, except in carrying out his employment responsibilities hereunder.  Executive also agrees to preserve and protect the confidentiality of third party Confidential Information to the same extent, and on the same basis, as the Company’s Confidential Information.  Nothing in this Section 2.2 is intended to prohibit Executive from complying with any court order, lawful subpoena or governmental request for information, provided that Executive notifies the Company promptly upon the receipt of any such order, subpoena or request and before the date of required compliance.
2.3    Non-Competition Obligations.  The Company agrees to and shall provide Executive with immediate access to Confidential Information.  Ancillary to the rights and severance benefits provided to Executive, the Company’s provision of Confidential Information and specialized training to Executive, and Executive’s agreement not to disclose Confidential Information, and in order to protect the Confidential Information described above, the Company and Executive agree to the following non-competition provisions.  Executive agrees that during Executive’s employment with the Company and for the “Period of Post-Employment Non-Competition Obligations” set forth in Exhibit “A,” Executive will not, directly or indirectly, for Executive or for any other person or entity, in the “Geographic Region of Responsibility” described on Exhibit “A” (or, if Executive’s Geographic Region of Responsibility has changed, in any and all geographic regions in which Executive has devoted substantial attention at such location to the material business interest of the Company and its Affiliates during the 12-month period immediately preceding Executive’s termination of employment), engage in, assist, or have any active interest or involvement, whether as an employee, agent, consultant, creditor, advisor, officer, director, stockholder (excluding holdings of 2% or less of the stock of a public company), partner, proprietor, or any type of principal whatsoever in any person, firm, business or other entity that generates more than 10% of its annual revenue from the sale of any concrete-related products and services that the Company or its Affiliates offers, then has plans to offer, or has offered in the preceding 12-month period, including, but not limited to, ready-mixed concrete, pre-cast concrete or related building materials or services such as proportioned mix design services, concrete mold engineering or design services, rebar, mesh, color additives, curing compounds, grouts, wooden forms, or similar products or services, whether at wholesale or retail (a “Competing Business”).  Executive understands that the foregoing restrictions may limit Executive’s ability to engage in certain businesses in the geographic region and during the period provided for above, but acknowledges that these restrictions are necessary to protect the Confidential Information the Company has provided to Executive.

7

Exhibit 10.37

2.4    Non-Solicitation of Customers.  During Executive’s employment with the Company and for the Period of Post-Employment Non-Competition Obligations, Executive will not call on, service, or solicit Competing Business from clients or customers of the Company or its affiliated entities whom that Executive, within the previous 24 months, (i) provided services to, worked with, solicited or had or made contact with, or (ii) had access to information and files concerning.
2.5    Non-Solicitation of Employees.  During Executive’s employment with the Company, and for the Period of Post-Employment Non-Competition Obligations, Executive will not, either directly or indirectly, call on, solicit, or induce any other employee or officer of the Company or its affiliated entities whom Executive had contact with, knowledge of, or association with in the course of employment with the Company to terminate his employment, and will not assist any other person or entity in such a solicitation.
2.6    Early Resolution Conference/Arbitration.  The parties are entering into this Agreement with the express understanding that this Agreement is clear and fully enforceable as written.  If Executive ever decides to contend that any restriction on activities imposed by Article 2 of this Agreement is no longer enforceable as written or does not apply to an activity in which Executive intends to engage, Executive first will notify the Company’s President and its Secretary in writing and meet with a Company representative at least 14 days before engaging in any activity that foreseeably could fall within the questioned restriction to discuss resolution of such claims (an “Early Resolution Conference”).  Should the parties not be able to resolve disputes at the Early Resolution Conference, the parties agree to use confidential, binding arbitration to resolve the disputes.  The arbitration shall be conducted in Dallas, Texas, in accordance with the then-current employment arbitration rules of the American Arbitration Association, before an arbitrator licensed to practice law in Texas.  Each party shall bear its own costs and expenses (including reasonable attorneys’ fees and expenses) incurred in connection with any dispute and/or arbitration arising out of or relating to this Agreement; provided, however, that the parties agree that the arbitrator, in the arbitrator’s discretion, may award a prevailing party, a reasonable attorney’s fee, including arbitration expenses and costs.  Either party may seek a temporary restraining order, injunction, specific performance, or other equitable relief regarding the provisions of this Section if the other party fails to comply with obligations stated herein.  The parties’ agreement to arbitrate applies only to the matters subject to an Early Resolution Conference.
2.7    Warranty and Indemnification.  Executive warrants that Executive is not a party to any restrictive agreement limiting Executive’s activities in his employment by the Company.  Executive further warrants that at the time of the signing of this Agreement, Executive knows of no written or oral contract or of any other impediment that would inhibit or prohibit employment with the Company, and that Executive will not knowingly use any trade secret, confidential information, or other intellectual property right of any other party in the performance of Executive’s duties hereunder.  Executive shall hold the Company harmless from any and all suits and claims arising out of any breach of such restrictive agreement or contracts.

8

Exhibit 10.37

2.8    Modification.  Executive and the Company agree that if the scope or enforceability of a restrictive covenant described in this Article 2 is disputed, the arbitrator or court with competent jurisdiction may modify and enforce the covenant to the extent that it determines the covenant to be reasonable.
3.    Change in Control
3.1    Definitions.
d.    For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred on the earliest of any of the following dates:
(i)    the date the Company merges or consolidates with any other person or entity, and the voting securities of the Company outstanding immediately prior to such merger or consolidation do not continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the total voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation;
(ii)    the date the Company sells all or substantially all of its assets to any other person or entity;
(iii)    the date the Company is dissolved;
(iv)    the date any person or entity together with its Affiliates (as defined herein) becomes, directly or indirectly, the Beneficial Owner (as defined herein) of voting securities representing more than 50% of the total voting power of all then outstanding voting securities of the Company; or
(v)    the date the individuals who constituted the non-employee members of the Company’s Board of Directors (“Incumbent Board”) as of the Effective Date cease for any reason to constitute at least a majority of the non-employee members of the Board, provided that for purposes of this clause (v) any person becoming a director of the Company whose election or nomination for election by the Company’s stockholders was approved by a vote of at least 80% of the directors comprising the Incumbent Board then still in office (or whose election or nomination was previously so approved) shall be, for purposes of this clause (v), considered as though such person were a member of the Incumbent Board;
provided, however, that notwithstanding anything to the contrary contained in clauses (i) - (v), a Change in Control shall not be deemed to have occurred in connection with any bankruptcy or insolvency of the Company, or any transaction in connection therewith.
e.    As used in this Agreement, the following terms are defined as follows:

9

Exhibit 10.37

(i)    “Affiliate” shall mean, with respect to any person or entity, any person or entity that, directly or indirectly, Controls, is Controlled by, or is under common Control with such person or entity in question.  For the purposes of the definition of Affiliate, “Control” (including, with correlative meaning, the terms “Controlled by” and “under common Control with”) as used with respect to any person or entity, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person or entity whether through the ownership of voting securities or by contract or otherwise;
(ii)    “Beneficial Owner” has the meaning ascribed to it pursuant to Rule 13d-3 under the Securities Exchange Act of 1934; and
(iii)    “Parent” means a corporation, partnership, trust, limited liability company or other entity that is the ultimate Beneficial Owner of more than 50% of the Company’s or its successor’s outstanding voting securities.
3.2    Vesting of Awards.  
a.    All stock options, restricted stock awards, restricted stock units and similar equity awards granted to Executive by the Company prior to the date of a Change in Control shall, notwithstanding any contrary provision of any applicable plan or agreement covering any such stock options, restricted stock awards, restricted stock units or similar awards, fully vest and become exercisable in full upon the consummation of such Change in Control and shall remain outstanding and in effect in accordance with their terms, and any restrictions, forfeiture conditions or other conditions or criteria applicable to any such awards shall lapse immediately upon the consummation of such Change in Control.  Notwithstanding the foregoing, any such award that is subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the Treasury Regulations promulgated thereunder (and such other Treasury or Internal Revenue Service guidance) as in effect from time to time (“Section 409A”) shall only fully vest and become exercisable in full immediately upon a “change in ownership or effective control” as defined in Section 409A that also constitutes a Change in Control as defined in Section 3.1 above.  Subject to Section 3.2(b) below, Executive may exercise any such stock options or other exercisable awards at any time before the expiration of their term.
b.    Notwithstanding anything in Section 3.2(a) to the contrary, in the event of a Change in Control, the Company may, in its sole discretion, provide for the cancellation upon the consummation of such Change in Control of all outstanding stock options, restricted stock awards, restricted stock units and similar equity awards granted to Executive by the Company prior to the date of such Change in Control, whether or not vested and exercisable, and a payment in cash, property, or a combination thereof, will be made to Executive within ten (10) days after the consummation of the Change in Control in an amount equal to (a) in the case of 

10

Exhibit 10.37

stock options and similar appreciation awards, the excess, if any, of (i) the per share consideration received by a shareholder of the Company’s capital stock in connection with the Change in Control (the “Change in Control Price”) over (ii) the exercise price or purchase price per share, if any, of the underlying award, multiplied by the number of unexercised shares subject to such equity award, and (b) in the case of restricted stock awards, restricted stock units and similar full-value equity awards, the Change in Control Price multiplied by the number of shares subject to such equity award.  If the Change in Control Price is less than the exercise price or purchase price of a stock option or similar equity award, such stock option or similar equity award will be automatically cancelled with no payment therefor.
3.3    Section 280G Cutback.  Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by the Company or its successor to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be subject to the excise tax imposed by Section 4999 of the Code (such excise tax, together with any interest thereon, any penalties, additions to tax, or additional amounts with respect to such excise tax, and any interest in respect of such penalties, additions to tax or additional amounts, being collectively referred herein to as the “Excise Tax”), then if the aggregate of all Payments that would be subject to the Excise Tax, reduced by all Federal, state and local taxes applicable thereto, including the Excise Tax is less than the amount Executive would receive, after all such applicable taxes, if Executive received Payments equal to an amount which is $1.00 less than three times the Executive's “base amount”, as defined in and determined under Section 280G of the Code, then, such Payments shall be reduced or eliminated to the extent necessary so that the aggregate Payments received by Executive will not be subject to the Excise Tax.  If a reduction in the Payments is necessary, reduction shall occur in the following order: first, a reduction of cash payments not attributable to equity awards which vest in an accelerated basis; second, a reduction in any other cash amount payable to Executive; third, the reduction of any employee benefit valued as a “parachute payment” (as defined in Section 280G of the Code); and fourth, the cancellation of accelerated vesting of stock awards.  If acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of Executive's stock awards.  All determinations made under this Section 3.3 and the assumptions to be utilized in arriving at such determinations shall be made by a registered public accounting firm designated by Executive and reasonably acceptable to the Company (the “Accounting Firm”).  All fees and expenses of the Accounting Firm shall be borne solely by the Company or its successor.  
4.    Miscellaneous
4.1    Statements About the Company or Executive.  Except as may be required to comply with a court order, lawful subpoena or governmental request for information, Executive and the Company shall refrain, both during and after Executive’s employment, from publishing any oral or written statements about the other that are disparaging, 

11

Exhibit 10.37

slanderous, libelous, or defamatory, or that disclose private or confidential information about their business affairs.
4.2    Notices.  Notices and all other communications hereunder shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by United States registered or certified mail.  Notices to the Company shall be sent to its President and its Secretary at: U.S. Concrete, Inc., 331 N. Main Street, Euless, Texas 76039.  Notices and communications to Executive shall be sent to the address Executive most recently provided in writing to the Company.
4.3    No Waiver.  No failure by either party at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of any provisions or conditions of this Agreement.
4.4    Mediation.  If a dispute arises out of or relates to Executive’s termination, other than a dispute regarding Executive’s obligations under Article 2, and if the dispute cannot be settled through direct discussions, then the Company and Executive agree to try to settle the dispute in an amicable manner by confidential mediation before having recourse to any other proceeding or forum.
4.5    Governing Law.  This Agreement shall be deemed to be made in the State of Delaware, and the validity, interpretation, construction, and performance of this Agreement in all respects shall be governed by the laws of the State of Delaware without regard to its principles of conflicts of law.  No provision of this Agreement or any related document will be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or judicial authority by reason of such party having or being deemed to have structured or drafted such provision.
4.6    Consent to Jurisdiction; Waiver of Jury Trial.  
a.    Except as otherwise specifically provided herein, Executive and the Company each hereby irrevocably submits to the exclusive jurisdiction of the United States District Court for the District of Delaware (or, if subject matter jurisdiction in that court is not available, in any state court located within Wilmington, Delaware) over any dispute arising out of or relating to this Agreement.  Except as otherwise specifically provided in this Agreement, the parties undertake not to commence any suit, action or proceeding arising out of or relating to this Agreement in a forum other than a forum described in this Section 4.6; provided, however, that nothing herein shall preclude the Company or Executive from bringing any suit, action or proceeding in any other court for the purposes of enforcing the provisions of this Section 4.6 or enforcing any judgment obtained by the Company.
b.    The agreement of the parties to the forum described in Section 4.6(a) is independent of the law that may be applied in any suit, action, or proceeding and the parties agree to such forum even if such forum may under applicable law choose to apply non-forum law.  The parties hereby waive, to the fullest extent 

12

Exhibit 10.37

permitted by applicable law, any objection which they now or hereafter have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding brought in an applicable court described in Section 4.6(a), and the parties agree that they shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court.  The parties agree that, to the fullest extent permitted by applicable law, a final and non-appealable judgment in any suit, action or proceeding brought in any applicable court described in Section 4.6(a) shall be conclusive and binding upon the parties and may be enforced in any other jurisdiction.
c.    The parties hereto irrevocably consent to the service of any and all process in any suit, action or proceeding arising out of or relating to this Agreement by the mailing of copies of such process to such party at such party’s address specified in Section 4.2.
d.    Each party hereto hereby waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action or proceeding arising out of or relating to this Agreement.  Each party hereto (i) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such party would not, in the event of any action, suit or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other party hereto has been induced to enter into this Agreement by, among other things, the mutual waiver and certifications in this Section 4.6(d).
e.    Each party shall bear its own costs and expenses (including reasonable attorneys’ fees and expenses) incurred in connection with any dispute arising out of or relating to this Agreement.
4.7    Assignment.  This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective heirs, legal representatives, successors and permitted assigns.  The Company may assign this Agreement to any affiliated entity.  Executive’s rights and obligations under this Agreement are personal, and they shall not be assigned or transferred without the Company’s prior written consent otherwise than by will or the laws of descent and distribution.  The Company will require any successor (direct or indirect and whether by purchase, merger, consolidation, share exchange or otherwise) to substantially all of the business, properties and assets of the Company expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would have been required to perform it had no succession taken place.
4.8    Other Agreements/Entire Agreement.  This Agreement shall supersede any and all existing oral or written agreements, representations or warranties between Executive and the Company or any of its Affiliates relating to the terms of Executive’s termination by the Company or any of its Affiliates.  This Agreement (including Exhibit “A” attached hereto, which is incorporated herein by reference and made an integral part of this Agreement) constitutes the entire agreement of the parties with respect to the subject matters of this Agreement.  Any modification of this Agreement (including without limitation to Exhibit “A”) will be effective only if it is in writing and signed by each party.  Executive is also a 

13

Exhibit 10.37

party to that certain Indemnification Agreement, dated January 23, 2012, between Executive and the Company (the “Indemnification Agreement”).  Nothing in this Agreement is intended to alter or amend the terms or effect of the Indemnification Agreement, which shall remain in effect in accordance with its terms, notwithstanding the execution or termination of this Agreement.
4.9    Invalidity.  Should any provision(s) in this Agreement be held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall be unaffected and shall continue in full force and effect, and the invalid, void or unenforceable provision(s) shall be deemed not to be part of this Agreement.
4.10    Withholding.  All payments required to be made to Executive pursuant to this Agreement shall be subject to the withholding of amounts relating to income and employment taxes and other customary employee deductions in conformity with the Company’s payroll policies in effect from time to time.
4.11    Time of Payments and Section 409A.  
a.    All amounts payable under Sections 1.1.b, 1.2.a and 1.3 of this Agreement shall be paid only after Executive’s timely execution, without revocation, of a waiver and general release of claims in favor of the Company, its subsidiaries and Affiliates, and their respective predecessors and successors, and all of the respective current or former directors, officers, employees, shareholders, partners, members, agents or representatives of any of the foregoing, in a form satisfactory to the Company.  The Company shall provide the aforementioned release to Executive within 10 days following the date of Executive’s termination of employment.  Executive’s execution of the release shall be considered timely only if the release is executed and returned to the Company by the deadline specified by the Company, which deadline shall not be earlier than the 21st day following the date the release is provided to Executive nor later than the 55th day following the date of termination of Executive’s employment.  If Executive has timely returned the executed release and the revocation period has expired, the amounts payable under Sections 1.1.b, 1.2.a and 1.3 of this Agreement, to the extent payable in a lump sum, shall be paid on the 65th day following the date of Executive’s termination of employment.
b.    The parties intend that any amounts payable hereunder that could constitute “deferred compensation” within the meaning of Section 409A will be compliant with Section 409A, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  With respect to the time of payments of any amounts under this Agreement that are “deferred compensation” subject to Section 409A, references in this Agreement to “termination of employment” (and substantially similar phrases) shall mean “separation from service” within the meaning of Section 409A.  For purposes of Section 409A, each of the payments that may be made under this Agreement are designated as separate payments for purposes of Treasury Regulations Section 1.409A-1(b)(4)(i)(F), 1.409A-1(b)(9)(iii) and 1.409A-1(b)(9)(v)(B).  

14

Exhibit 10.37

c.    Notwithstanding anything in this Agreement to the contrary, if Executive is deemed to be a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) and Executive is not “disabled” within the meaning of Section 409A(a)(2)(C), no payments hereunder to be made in connection with a 
 
“separation from service” that are “deferred compensation” subject to Section 409A shall be made to Executive prior to the date that is six (6) months after the date of  Executive’s “separation from service” (as defined in Section 409A) or, if earlier, Executive’s date of death.  This Section 4.11 shall be applied by accumulating all payments that otherwise would have been paid within six months of Executive’s termination and paying such accumulated amounts in a single lump sum on the earliest date permitted under Section 409A that is also a business day.  Executive shall be a “specified employee” for the twelve-month period beginning on April 1 of a year if Executive is a “key employee” as defined in Section 416(i) of the Code (without regard to Section 416(i)(5)) as of December 31 of the preceding year or using such dates as designated by the Company in accordance with Section 409A and in a manner that is consistent with respect to all of the Company’s nonqualified deferred compensation plans, if any.  For purposes of determining the identity of specified employees, the Company may establish procedures as it deems appropriate in accordance with Section 409A.
d.    For the avoidance of doubt, it is intended that any indemnification payment or expense reimbursement made hereunder shall be exempt from Section 409A.    Notwithstanding the foregoing, if any indemnification payment or expense reimbursement made hereunder shall be determined to be “deferred compensation” within the meaning of Section 409A, then (i) the amount of the indemnification payment or expense reimbursement during one taxable year shall not affect the amount of the indemnification payments or expense reimbursement during any other taxable year, (ii) the indemnification payments or expense reimbursement shall be made on or before the last day of Executive’s taxable year following the year in which the expense was incurred, and (iii) the right to indemnification payments or expense reimbursement hereunder shall not be subject to liquidation or exchange for another benefit.
4.12    Headings.  The Article and Section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
4.13    Counterparts.  This Agreement may be executed in any number of counterparts and by the 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 one and the same agreement.

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Exhibit 10.37

IN WITNESS WHEREOF, the Company and Executive have executed this Agreement in multiple originals to be effective on the Effective Date.

	
		
	Niel L. Poulsen (“Executive”) 

	U.S. Concrete, Inc. (the “Company”)

	By:     /s/  Niel L. Poulsen      
Date:       01/23/2013          

	By:     /s/  William J. Sandbrook    
Printed Name:  William J. Sandbrook     
Title:    President and Chief Operating Officer    
Date:          01/23/2013      

	 
	 

EXHIBIT “A” TO EXECUTIVE SEVERANCE AGREEMENT BETWEEN 
THE COMPANY AND NIEL L. POULSEN
	
		
	Position:
	Vice President and General Manager – Redi-Mix, LLC

	Location:
	Euless, Texas

	Geographic Region of Responsibility:
	During Executive’s employment with the Company, within 75 miles of any plant or other operating facility in which the Company is then engaged in business.  Upon termination of Executive’s employment with the Company, within 75 miles of any plant or other operating facility in which the Company was engaged in business on the date immediately prior to Executive’s termination.

	Change in Control Multiplier:
	2

	Period of Post-Employment 
Non-Competition Obligations:
	If Executive’s employment is terminated under Section 1.1 or 1.2, the Period of Post-Employment Non-Competition Obligations shall be one year from the date of termination.  If Executive’s employment is terminated under Section 1.3, the Period of Post-Employment Non-Competition Obligations shall commence on the date of termination and continue for period of time equal to (a) 12 months multiplied by (b) the Change in Control Multiplier.

	Monthly Base Salary:
	$20,000 or such higher rate as may be determined by the Company from time to time

	Annual Paid Vacation:
	Four weeks

16

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