Document:

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                                                                     EXHIBIT 4.4

                                                                  EXECUTION COPY
                                                                  --------------

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                              U.S. CONCRETE, INC.

                                  $95,000,000

            12.00% SENIOR SUBORDINATED NOTES DUE NOVEMBER 10, 2010

                                ______________

                                NOTE AGREEMENT

                                ______________

                         Dated as of November 10, 2000

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                               TABLE OF CONTENTS

                            (Not Part of Agreement)

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1.   AUTHORIZATION OF ISSUE OF SUBORDINATED NOTES........................................   1

2.   PURCHASE AND SALE OF SUBORDINATED NOTES.............................................   1

3.   CONDITIONS OF CLOSING...............................................................   2
        3A.    Documents.................................................................   2
        3B.    Opinion of Purchasers' Special Counsel....................................   3
        3C.    Opinion of Company's and Guarantors' Counsel..............................   3
        3D.    Representations and Warranties; No Default; Satisfaction of Conditions....   3
        3E.    Purchase Permitted By Applicable Laws; Credit Agreement Amendment and Other
               Approvals.................................................................   4
        3F.    Material Adverse Change...................................................   4
        3G.    Fees and Expenses.........................................................   4
        3H.    Private Placement Number..................................................   5
        3I.    Proceedings...............................................................   5
        3J.    Sale of Subordinated Notes to Other Purchasers............................   5

4.      PREPAYMENTS......................................................................   5
        4A.    Required Prepayments......................................................   5
        4B.    Optional Prepayment With Yield-Maintenance Amount.........................   5
        4C.    Notice of Optional Prepayment.............................................   5
        4D.    Partial Payments Pro Rata.................................................   6
        4E.    Offer to Prepay Subordinated Notes in the Event of a Change of Control....   6
        4F.    Retirement of Subordinated Notes..........................................   7

5.      AFFIRMATIVE COVENANTS............................................................   8
        5A.    Financial Statements......................................................   8
        5B.    Information Required by Rule 144A.........................................  10
        5C.    Inspection of Property....................................................  10
        5D.    Covenant to Secure Subordinated Note Equally..............................  11
        5E.    Compliance with Law.......................................................  11
        5F.    Insurance.................................................................  11
        5G.    Maintenance of Properties.................................................  11
        5H.    Payment of Taxes..........................................................  12
        5I.    Existence, etc............................................................  12
        5J.    Lines of Business.........................................................  12
        5K.    Subsequent Guarantors.....................................................  12
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6.      NEGATIVE COVENANTS...............................................................  13
        6A.    Financial Covenants.......................................................  13
        6B.    Liens.....................................................................  14
        6C.    Mergers and Consolidations................................................  14
        6D.    Sale of Assets............................................................  15
        6E.    Sale of Stock or other Equity of Subsidiaries.............................  16
        6F.    Restricted Payments.......................................................  16
        6G.    Transactions with Affiliates..............................................  17
        6H.    Subsidiary Restrictions...................................................  17
        6I.    Subsidiary Preferred Stock................................................  18
        6J.    Limitations on Issuance of Other Subordinated Indebtedness................  18
        6K.    Payment Limitations.......................................................  18
        6L.    Hedging Agreement.........................................................  18
        6M.    Sale and Leaseback........................................................  18

7.      EVENTS OF DEFAULT................................................................  19
        7A.    Acceleration..............................................................  19
        7B.    Rescission of Acceleration................................................  22
        7C.    Notice of Acceleration or Rescission......................................  22
        7D.    Other Remedies............................................................  22

8.      REPRESENTATIONS, COVENANTS AND WARRANTIES........................................  23
        8A(1). Organization..............................................................  23
        8A(2). Power and Authority.......................................................  23
        8A(3). Execution and Delivery of Transaction Documents...........................  23
        8B.    Financial Statements......................................................  23
        8C.    Actions Pending...........................................................  24
        8D.    Outstanding Indebtedness..................................................  24
        8E.    Title to Properties.......................................................  24
        8F.    Taxes.....................................................................  24
        8G.    Conflicting Agreements and Other Matters..................................  25
        8H.    Offering of Subordinated Notes............................................  25
        8I.    Use of Proceeds...........................................................  25
        8J.    ERISA.....................................................................  26
        8K.    Governmental Consent......................................................  26
        8L.    Compliance with Environmental and Other Laws..............................  26
        8M.    Regulatory Status.........................................................  27
        8N.    Permits and Other Operating Rights........................................  27
        8O.    Rule 144A.................................................................  27
        8P.    Disclosure................................................................  27

9.      REPRESENTATIONS OF EACH PURCHASER................................................  28
        9A.    Nature of Purchase........................................................  28
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<TABLE>
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        9B.    Source of Funds...........................................................  28

10.     SUBORDINATION OF SUBORDINATED NOTES..............................................  29
        10A.   Payment Default or Acceleration...........................................  29
        10B.   Non-Payment Default.......................................................  30
        10C.   Insolvency; Bankruptcy; etc...............................................  30
        10D.   No Impairment.............................................................  31
        10E.   Defines Rights of Creditors; Subrogation..................................  31
        10F.   Payments on Senior Indebtedness...........................................  31
        10G.   Notice Upon Acceleration..................................................  32
        10H.   Reinstatement.............................................................  32
        10I.   No Waiver.................................................................  32
        10J.   Amendments................................................................  33

11.     DEFINITIONS; ACCOUNTING MATTERS..................................................  33
        11A.   Yield-Maintenance Terms...................................................  33
        11B.   Other Terms...............................................................  35
        11C.   Accounting and Legal Principles, Terms and Determinations.................  47

12.     MISCELLANEOUS....................................................................  48
        12A.    Subordinated Note Payments...............................................  48
        12B.    Expenses.................................................................  48
        12C(1). Consent to Amendments....................................................  49
        12C(2). Solicitation.............................................................  49
        12C(3). Payment..................................................................  50
        12D.    Form, Registration, Transfer and Exchange of Subordinated Notes; Lost
                Subordinated Notes.......................................................  50
        12E.    Persons Deemed Owners; Participations....................................  51
        12F.    Survival of Representations and Warranties; Entire Agreement.............  51
        12G.    Successors and Assigns...................................................  51
        12H.    Independence of Covenants................................................  51
        12I.    Notices..................................................................  51
        12J.    Payments Due on Non-Business Days........................................  52
        12K.    Satisfaction Requirement.................................................  52
        12L.    GOVERNING LAW............................................................  52
        12M.    SUBMISSION TO JURISDICTION...............................................  52
        12N.    Severability.............................................................  53
        12O.    Descriptive Headings; Advice of Counsel; Interpretation..................  53
        12P.    Counterparts.............................................................  53
        12Q.    Severalty of Obligations.................................................  53
        12R.    Maximum Interest Payable.................................................  54
        12S.    Disclosure to Other Persons; Confidentiality.............................  54
</TABLE>

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<TABLE>
<S>                       <C>
PURCHASER SCHEDULE
SCHEDULE 6B           -   EXISTING LIENS
SCHEDULE 8A(1)        -   SUBSIDIARIES
SCHEDULE 8D           -   OUTSTANDING INDEBTEDNESS
SCHEDULE 8G           -   LIST OF AGREEMENTS RESTRICTING INDEBTEDNESS
SCHEDULE 11B(1)       -   EXISTING MANAGEMENT SHAREHOLDERS

EXHIBIT A             -   FORM OF SUBORDINATED NOTE
EXHIBIT B             -   FORM OF DISBURSEMENT DIRECTION LETTER
EXHIBIT C             -   FORM OF GUARANTY AGREEMENT
EXHIBIT D-1           -   FORM OF OPINION OF PURCHASERS' SPECIAL COUNSEL
EXHIBIT D-2           -   FORM OF OPINION OF COMPANY'S AND GUARANTORS' GENERAL
                          COUNSEL
EXHIBIT D-3           -   FORM OF OPINION OF COMPANY'S AND GUARANTORS'
                          SPECIAL COUNSEL
</TABLE>

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                              U.S. CONCRETE, INC.
                              1300 Post Oak Blvd.
                                  Suite 1220
                             Houston, Texas 77056

                                         As of November 10, 2000

To Each of the Purchasers Named in the
Purchaser Schedule Attached Hereto

Ladies and Gentlemen:

     The undersigned, U.S. Concrete, Inc., a Delaware corporation (herein called
the "Company"), hereby agrees with the purchasers named in the Purchaser
Schedule attached hereto (herein called the "Purchasers") as set forth below.
Reference is made to paragraph 11 hereof for definitions of capitalized terms
used herein and not otherwise defined herein.

     1.  AUTHORIZATION OF ISSUE OF SUBORDINATED NOTES. The Company will
authorize the issue of its senior subordinated promissory notes in the aggregate
principal amount of $95,000,000, to be dated the date of issue thereof, to
mature November 10, 2010, to bear interest on the unpaid balance thereof from
the date thereof until the principal thereof shall have become due and payable
at the rate of 12.00% per annum (provided that any payment of principal of,
interest on or Yield-Maintenance Amount or Adjusted Yield-Maintenance Amount, if
any, with respect to any Subordinated Note that is not paid when due shall bear
interest from and after the date due until the date paid at the Default Rate),
and to be substantially in the form of Exhibit A attached hereto. The term
"Subordinated Notes" as used herein shall include each such senior subordinated
promissory note delivered pursuant to any provision of this Agreement and each
such senior subordinated promissory note delivered in substitution or exchange
for any other Subordinated Note pursuant to any such provision.

      2.  PURCHASE AND SALE OF SUBORDINATED NOTES. The Company hereby agrees to
sell to each Purchaser and, subject to the terms and conditions herein set
forth, each Purchaser agrees to purchase from the Company the aggregate
principal amount of Subordinated Notes set forth opposite such Purchaser's name
in the Purchaser Schedule attached hereto at 100% of such aggregate principal
amount. The Company will deliver to each Purchaser, at the offices of Schiff
Hardin & Waite at 6600 Sears Tower, Chicago, Illinois 60606, one or more
Subordinated Notes registered in such Purchaser's name or in the name of its
nominee, if specified in the Purchaser Schedule, evidencing the aggregate
principal amount of Subordinated Notes to be purchased by such Purchaser and in
the denomination or denominations specified with respect to such Purchaser in
the Purchaser Schedule against payment of the purchase price thereof by transfer
of immediately available funds on the date of closing, which shall be November
10, 2000 or any other date on or before November 15, 2000 upon which the Company
and the Purchasers may mutually agree (herein
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called the "closing" or the "date of closing"), for credit to the account or
accounts as shall be specified in a letter on the Company's letterhead, in
substantially the form of Exhibit B attached hereto, from the Company to the
Purchasers delivered prior to the date of closing.

      3.  CONDITIONS OF CLOSING.  Each Purchaser's obligation to purchase and
pay for the Subordinated Notes to be purchased by such Purchaser hereunder is
subject to the satisfaction or waiver in writing by such Purchaser, on or before
the date of closing, of the following conditions:

      3A. Documents.  Such Purchaser shall have received original counterparts
or, if satisfactory to such Purchaser, certified or other copies of all of the
following, each duly executed and delivered by the party or parties thereto, in
form and substance satisfactory to such Purchaser, dated the date of closing
unless otherwise indicated, and, on the date of closing, in full force and
effect with no event having occurred and being then continuing that would
constitute a default thereunder or constitute or provide the basis for the
termination thereof:

          (i)    the Subordinated Note or Subordinated Notes to be purchased by
     such Purchaser in the form of Exhibit A attached hereto;

          (ii)   a Guaranty Agreement made by each Guarantor in favor of the
     holders of the Subordinated Notes in the form of Exhibit C hereto (together
     with any other guaranty pursuant to which the Subordinated Notes are
     guarantied and which is entered into as contemplated hereby, as the same
     may be amended, modified or supplemented from time to time in accordance
     with the provisions thereof, collectively called the "Guaranty Agreements"
     and individually called a "Guaranty Agreement");

          (iii)  a certificate signed by the Secretary or Assistant Secretary
     and one other officer of the Company and each Guarantor certifying, among
     other things (a) as to the names, titles and true signatures of the
     officers or other authorized representatives of the Company and each
     Guarantor, respectively, authorized to sign this Agreement, the
     Subordinated Notes or the Guaranty Agreement, as the case may be, and the
     other documents to be delivered in connection with this Agreement, (b) that
     attached thereto is a true, accurate and complete copy of the Articles or
     Certificate of Incorporation or other organizational documents of the
     Company and each Guarantor, as the case may be, (and in the case of the
     Company, Central Concrete Supply Co. Inc. and Beall Concrete Enterprises
     Ltd., certified by the Secretary of State of the state of organization of
     the Company or such Guarantor, as the case may be, as of a recent date),
     (c) that attached thereto is a true, accurate and complete copy of the By-
     laws or other organizational documents of the Company and each Guarantor,
     as the case may be, which were duly adopted and are in effect as of the
     date of closing and have been in effect immediately prior to and at all
     times since the adoption of the resolutions (or other similar document)
     referred to in clause (d) below, (d) that attached thereto is a true,
     accurate and complete copy of the resolutions (or other similar document)
     of the Board of Directors or other managing body of Person(s) of the
     Company and each Guarantor, as the case may be, duly adopted at a meeting
     or by unanimous written consent of such Board of

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     Directors or other managing body of Person(s), authorizing the execution,
     delivery and performance of this Agreement, the Subordinated Notes or the
     Guaranty Agreement, as the case may be, and the other documents to be
     delivered in connection with this Agreement, and that such resolutions have
     not been amended, modified, revoked or rescinded, are in full force and
     effect and are the only resolutions of the shareholders or other owners of
     equity of the Company or such Guarantor, as the case may be, or of any such
     Board of Directors or any committee thereof relating to the subject matter
     thereof, and (e) that this Agreement, the Subordinated Notes or the
     Guaranty Agreement, as the case may be, and the other documents executed
     and delivered to such Purchaser by the Company or such Guarantor, as the
     case may be, are in the form approved by its Board of Directors in the
     resolutions referred to in clause (d), above;

          (iv) a certificate of good standing for the Company, Central Concrete
     Supply Co. Inc. and Beall Concrete Enterprises Ltd. from the Secretary of
     State of the state of organization of the Company, Central Concrete Supply
     Co. Inc., and Beall Concrete Enterprises Ltd. and of each state in which
     the Company or any such Subsidiary is required to be qualified to transact
     business as a foreign corporation, in each case dated as of a recent date;
     and

          (v)  such other certificates, documents and agreements as such
     Purchaser may reasonably request.

      3B. Opinion of Purchasers' Special Counsel. Such Purchaser shall have
received from Schiff Hardin & Waite, who are acting as special counsel for the
Purchasers in connection with this transaction, a favorable opinion satisfactory
to such Purchaser substantially in the form of Exhibit D-1 attached hereto.

      3C. Opinion of Company's and Guarantors' Counsel. Such Purchaser shall
have received from Donald Wayne, General Counsel of the Company and the
Guarantors, and BakerBotts L.L.P., special counsel for the Company and the
Guarantors, a favorable opinion satisfactory to such Purchaser and substantially
in the form of Exhibits D-2 and D-3 attached hereto, respectively, and the
Company, by its execution hereof, hereby requests and authorizes such general
counsel and such special counsel to render such opinions.

      3D. Representations and Warranties; No Default; Satisfaction of
Conditions. The representations and warranties contained in paragraph 8 and in
the Guaranty Agreement shall be true on and as of the date of closing, both
before and immediately after giving effect to the issuance of the Subordinated
Notes on the date of closing; there shall exist on the date of closing no Event
of Default or Default, both before and immediately after giving effect to the
issuance of the Subordinated Notes on the date of closing; the Company and each
Guarantor shall have performed all agreements and satisfied all conditions
required under this Agreement or the Guaranty Agreement to be performed or
satisfied on or before the date of closing; and the Company and each Guarantor

                                       3
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shall have delivered to such Purchaser an Officer's Certificate, dated the date
of closing, to each such effect.

      3E. Purchase Permitted By Applicable Laws; Credit Agreement Amendment and
Other Approvals. The purchase of and payment for the Subordinated Notes to be
purchased by such Purchaser on the date of closing on the terms and conditions
herein provided (including the use of the proceeds of such Subordinated Notes by
the Company) shall not violate any applicable law or governmental regulation
(including, without limitation, section 5 of the Securities Act or Regulation T,
U or X of the Board of Governors of the Federal Reserve System), without resort
to provisions (such as Section 1405(a)(8) of the New York Insurance Law)
permitting limited investments by insurance companies without restriction as to
the character of the particular investment, and shall not subject such Purchaser
to any tax, penalty, liability or other onerous condition under or pursuant to
any applicable law or governmental regulation, and such Purchaser shall have
received such certificates or other evidence as it may request to establish
compliance with this condition. All necessary authorizations, consents,
approvals, exceptions or other actions by or notices to or filings with any
court or administrative or governmental body or other Person required in
connection with the execution, delivery and performance of this Agreement, the
Subordinated Notes and the Guaranty Agreement or the consummation of the
transactions contemplated hereby or thereby, including an amendment to the
Amended and Restated Credit Agreement, dated February 9, 2000, among the
Company, the Guarantors, the lenders party thereto, Chase Bank of Texas,
National Association, as Administrative Agent, and the syndication agent,
documentation agent, co-managing agents, book manager and lead arranger named
therein, so as to permit the Company to execute, deliver and perform this
Agreement and to issue the Subordinated Notes notwithstanding the provisions of
Sections 6.01(e), 6.04 (e) and 6.07 thereof, to approve the terms of the
Subordinated Notes, including the subordination provisions contained in
paragraph 10 hereof, and to amend the definition of "Restricted Payments"
contained therein so as to include as Restricted Payments, with respect to the
Subordinated Notes, only prepayments of the Subordinated Notes made at the
option of the Company, shall have been issued or made, shall be final and in
full force and effect and shall be in form and substance satisfactory to such
Purchaser.

      3F. Material Adverse Change; Updated Projections. Except as disclosed in
the Company's press release dated October 9, 2000, no material adverse change in
the business, condition (financial or otherwise), operations or prospects of the
Company and its Subsidiaries, taken as a whole, since December 31, 1999 shall
have occurred or be threatened, as determined by such Purchaser in its sole
judgment. The Company shall have delivered to such Purchaser updated projections
of the results of operations of the Company and its Subsidiaries for the fiscal
years ending December 31, 2000 to 2003.

      3G. Fees and Expenses. Without limiting the provisions of paragraph 12B
hereof, the Company shall have paid the reasonable fees, charges and
disbursements of special counsel to the Purchasers referred to in paragraph 3B
hereof.

                                       4
<PAGE>

      3H. Private Placement Number. A private placement number issued by
Standard & Poor's CUSIP Service Bureau (in cooperation with the Securities
Valuations Office of the National Association of Insurance Commissioners) shall
have been obtained for the Subordinated Notes.

      3I. Proceedings.  All corporate and other proceedings taken or to be taken
in connection with the transactions contemplated hereby and all documents
incident thereto shall be satisfactory in substance and form to such Purchaser,
and such Purchaser shall have received all such counterpart originals or
certified or other copies of such documents as it may reasonably request.

      3J. Sale of Subordinated Notes to Other Purchasers. The Company shall have
sold to the other Purchasers the Subordinated Notes to be purchased by them at
the closing and shall have received payment in full therefor.

      4.  PREPAYMENTS. The Subordinated Notes shall be subject to prepayment
with respect only to the required prepayments specified in paragraphs 4A and 4E
and the optional prepayments permitted by paragraph 4B.

      4A. Required Prepayments. Until the Subordinated Notes shall be paid in
full, the Company shall apply to the prepayment of the Subordinated Notes,
without premium, the sum of $13,571,429.00 on November 10 in each of the years
2004 to 2009, inclusive, and such principal amounts of the Subordinated Notes,
together with interest thereon to the prepayment dates, shall become due on such
prepayment dates. The remaining outstanding principal amount of the Subordinated
Notes, together with any accrued and unpaid interest thereon, shall become due
on November 10, 2010, the maturity date of the Subordinated Notes.

      4B. Optional Prepayment With Yield-Maintenance Amount. The Subordinated
Notes shall be subject to prepayment, in whole at any time or from time to time
in part (in aggregate integral multiples of $1,000,000 and a minimum of
$5,000,000 on any one occurrence), at the option of the Company, at 100% of the
principal amount so prepaid plus interest thereon to the prepayment date and the
Yield-Maintenance Amount, if any, with respect to each Subordinated Note. Any
partial prepayment of the Subordinated Notes pursuant to this paragraph 4B shall
be applied in satisfaction of required payments of principal thereof (including
the required payment of principal due upon the maturity thereof) in inverse
order of their scheduled due dates.

      4C. Notice of Optional Prepayment. The Company shall give the holder of
each Subordinated Note irrevocable written notice of any prepayment pursuant to
paragraph 4B not less than 15 Business Days prior to the prepayment date,
specifying such prepayment date and the aggregate principal amount of the
Subordinated Notes, and of the Subordinated Notes held by such holder, to be
prepaid on such date and stating that such prepayment is to be made pursuant to
paragraph 4B. Each such notice of any prepayment shall be accompanied by a
certificate of the chief financial officer of the Company as to the estimated
Yield-Maintenance Amount which will be due in connection with such prepayment
(calculated as if the date of such notice were the date of prepayment), setting
forth the details of the computation thereof, but no such computation shall be

                                       5
<PAGE>

binding upon any holder of a Subordinated Note. On the Business Day prior to any
such prepayment, the Company shall deliver to each holder of a Subordinated Note
a certificate of such chief financial officer specifying the calculation of the
Yield-Maintenance Amount as of the prepayment date, but no such calculation
shall be binding on any holder of a Subordinated Note. Notice of prepayment
having been given as aforesaid, the principal amount of the Subordinated Notes
specified in such notice, together with interest thereon to the prepayment date
and together with the Yield-Maintenance Amount, if any, with respect thereto,
shall become due and payable on such prepayment date. The Company shall, on or
before the day on which it gives written notice of any prepayment pursuant to
paragraph 4B, give telephonic notice of the principal amount of the Subordinated
Notes to be prepaid and the prepayment date to each Significant Holder which
shall have designated a recipient of such notices in the Purchaser Schedule
attached hereto or by notice in writing to the Company.

      4D. Partial Payments Pro Rata. Upon any partial prepayment of the
Subordinated Notes pursuant to paragraph 4A or 4B, the principal amount so
prepaid shall be allocated to all Subordinated Notes at the time outstanding
(including, for the purpose of this paragraph 4D only, all Subordinated Notes
prepaid or otherwise retired or purchased or otherwise acquired by the Company
or any of its Subsidiaries or Affiliates (including pursuant to paragraph 4E or
4F hereof) other than by prepayment pursuant to paragraph 4A or 4B) in
proportion to the respective outstanding principal amounts thereof.

      4E. Offer to Prepay Subordinated Notes in the Event of a Change of
Control.

          4E(1)  Notice of Change of Control. The Company will, subject to any
     prohibition to making such a disclosure under any applicable law, within
     two Business Days after any Responsible Officer has knowledge of any
     Potential Change of Control, give written notice of such Potential Change
     of Control to each holder of the Subordinated Notes. The Company will
     promptly and in any event within two Business Days after any Responsible
     Officer has knowledge of a Change of Control, give written notice to each
     holder of the Subordinated Notes of such Change of Control ("Change of
     Control Notice"). The Company shall, on or before the date upon which it
     gives a Change of Control Notice pursuant to this paragraph 4E(1), give
     telephonic notice of such Change of Control to each Significant Holder
     which shall have designated a recipient of such notices in the Purchaser
     Schedule attached hereto or by notice in writing to the Company. Such
     Change of Control Notice shall contain and constitute an offer to prepay
     the Subordinated Notes as described in paragraph 4E(3) and shall be
     accompanied by the certificate described in paragraph 4E(6).

          4E(2)  Notice of Acceptance or Rejection of Offer under Paragraph
     4E(1). If the Company shall at any time receive a written acceptance to or
     rejection of an offer to prepay Subordinated Notes under paragraph 4E(1)
     from some, but not all of, the holders of the Subordinated Notes, then the
     Company will, within two Business Days after the receipt of such acceptance
     or rejection, give written notice of such acceptance or rejection to each
     other holder of the Subordinated Notes.

                                       6
<PAGE>

          4E(3)  Offer to Prepay Subordinated Notes. The offer to prepay
     Subordinated Notes contemplated by paragraph 4E(1) shall be an offer to
     prepay, in accordance with and subject to this paragraph 4E, all, but not
     less than all, of the Subordinated Notes held by each holder (in this case
     only, "holder" in respect of any Subordinated Note registered in the name
     of a nominee for a disclosed beneficial owner shall mean such beneficial
     owner) on a date specified in the Change of Control Notice (the "Proposed
     Prepayment Date"). Such Change of Control Notice shall make reference to
     this paragraph 4E(3) and that any failure to so reply shall be deemed an
     acceptance of such offer. The Proposed Prepayment Date shall be not less
     than 15 days and not more than 30 days after the date of such Change of
     Control (if the Proposed Prepayment Date shall not be specified in the
     Change of Control Notice, the Proposed Prepayment Date shall be the 30th
     day after the date of Change of Control).

          4E(4)  Rejection; Acceptance. A holder of Subordinated Notes may
     accept or reject the offer to prepay made pursuant to this paragraph 4E by
     causing a written notice of such acceptance or rejection to be delivered to
     the Company prior to the Proposed Prepayment Date.

          4E(5)  Prepayment. Prepayment of the Subordinated Notes to be prepaid
     pursuant to this paragraph 4E shall be at 100% of the principal amount of
     such Subordinated Notes, together with interest on such Subordinated Notes
     accrued to the date of prepayment and the Adjusted Yield-Maintenance
     Amount, if any, with respect thereto. The prepayment shall be made on the
     Proposed Prepayment Date. On the Business Day prior to the Proposed
     Prepayment Date, the Company shall deliver to each holder of a Subordinated
     Note a certificate of the chief financial officer of the Company specifying
     the calculation of the Adjusted Yield-Maintenance Amount as of the Proposed
     Prepayment Date, but no such calculation shall be binding on any holder of
     a Subordinated Note.

          4E(6)  Officer's Certificate. Each Change Of Control Notice pursuant
     to this paragraph 4E shall be accompanied by a certificate, executed by a
     Responsible Officer of the Company and dated the date of such offer,
     specifying (i) the Proposed Prepayment Date, (ii) that such offer is made
     pursuant to this paragraph 4E, (iii) the principal amount of each
     Subordinated Note offered to be prepaid, (iv) the interest that would be
     due on each Subordinated Note offered to be prepaid, accrued to the
     Proposed Prepayment Date, (v) the estimated Adjusted Yield-Maintenance
     Amount which will be due in connection with such prepayment (calculated as
     if the date of such notice were the date of prepayment), setting forth the
     details of the computation thereof, but no such computation shall be
     binding upon any holder of a Subordinated Note, (vi) that the conditions of
     this paragraph 4E have been fulfilled, and (vii) in reasonable detail, the
     nature and date of the Change of Control.

      4F. Retirement of Subordinated Notes. The Company shall not, and shall
not permit any of its Subsidiaries or Affiliates to, prepay or otherwise retire
in whole or in part prior to their stated final maturity (other than by
prepayment pursuant to paragraph 4A, 4B or 4E or upon

                                       7
<PAGE>

acceleration of such final maturity pursuant to paragraph 7A), or purchase or
otherwise acquire, directly or indirectly, Subordinated Notes held by any holder
unless the Company or such Subsidiary or Affiliate shall have offered to prepay
or otherwise retire or purchase or otherwise acquire, as the case may be, the
same proportion of the aggregate principal amount of Subordinated Notes held by
each other holder of Subordinated Notes at the time outstanding upon the same
terms and conditions. Any Subordinated Notes so prepaid or otherwise retired or
purchased or otherwise acquired by the Company or any of its Subsidiaries or
Affiliates shall not be deemed to be outstanding for any purpose under this
Agreement, except as provided in paragraph 4D.

      5.  AFFIRMATIVE COVENANTS.

      5A. Financial Statements. The Company covenants that it will deliver to
each Significant Holder in duplicate:

          (i)  as soon as practicable after the filing of its Quarterly Report
     on Form 10-Q for the quarterly period, and in any event within 45 days
     after the end of each quarterly period (other than the last quarterly
     period) in each fiscal year (or, if such 45th day is not a Business Day,
     the next succeeding Business Day), consolidated statements of income,
     stockholders' equity and cash flows of the Company and its Subsidiaries for
     such quarterly period and for the period from the beginning of the current
     fiscal year to the end of such quarterly period, and a consolidated balance
     sheet of the Company and its Subsidiaries as at the end of such quarterly
     period, setting forth in each case in comparative form figures for the
     corresponding periods in the preceding fiscal year, all in reasonable
     detail and prepared in accordance with generally accepted accounting
     principles applicable to quarterly financial statements and certified by an
     authorized financial officer of the Company as fairly presenting in
     accordance with generally accepted accounting principles, in all material
     respects, the financial position of the Company and its Subsidiaries and
     their results of operations and cash flows, subject to changes resulting
     from year-end adjustments and the exclusion of detailed footnotes;
     provided, however, that delivery pursuant to clause (iii) below of copies
     of the Quarterly Report on Form 10-Q of the Company for such quarterly
     period (including all financial statement exhibits and all financial
     statements incorporated by reference therein) prepared in compliance with
     the requirements therefor and filed with the Securities and Exchange
     Commission shall be deemed to satisfy the requirements of this clause (i);

          (ii) as soon as practicable after the filing of its Annual Report on
     Form 10-K for the fiscal year, and in any event within 90 days after the
     end of each fiscal year (or, if such 90th day is not a Business Day, the
     next succeeding Business Day, consolidated statements of income and cash
     flows and a consolidated statement of stockholders' equity of the Company
     and its Subsidiaries for such year, and a consolidated balance sheet of the
     Company and its Subsidiaries as at the end of such year, setting forth in
     each case in comparative form corresponding consolidated figures from the
     preceding annual audit, all in reasonable detail and prepared in accordance
     with generally accepted accounting principles and accompanied by an opinion
     thereon of independent public accountants of

                                       8
<PAGE>

     recognized national standing selected by the Company which opinion shall
     state that such financial statements present fairly, in all material
     respects, the financial position of the Company and its Subsidiaries and
     the results of their operations and cash flows and have been prepared in
     accordance with generally accepted accounting principles, that the
     examination of such accountants in connection with such financial
     statements has been made in accordance with generally accepted auditing
     standards, and that such audit provides a reasonable basis for such opinion
     in such circumstances, and shall be without limitation as to the scope of
     the audit; provided, however, that delivery pursuant to clause (iii) below
     of copies of the Annual Report on Form 10-K of the Company for such fiscal
     year (including all financial statement exhibits and all financial
     statements incorporated by reference therein) prepared in compliance with
     the requirements therefor and filed with the Securities and Exchange
     Commission shall be deemed to satisfy the requirements of this clause (ii);

          (iii)  promptly upon transmission thereof, copies of all such
     financial statements, proxy statements, notices and reports as it shall
     send to its public stockholders and copies of all registration statements
     (without exhibits, but excluding reports relating to registration
     statements for employee benefit plans (S-8), shelf registration statements
     (Rule 415) and annual reports for employee benefit plans (Form 11-K)) and
     all other reports which it files with the Securities and Exchange
     Commission (or any governmental body or agency succeeding to the functions
     of the Securities and Exchange Commission);

          (iv)   promptly upon receipt thereof, a copy of any management report
     or letter submitted to the Company or any Subsidiary by independent
     accountants in connection with any annual, interim or special audit made by
     them of the books of the Company or any Subsidiary;

          (v)    as soon as available and in any event within sixty (60) days
     after the end of each fiscal year of the Company, the annual financial
     projections and budgets of the Company and its Subsidiaries;

          (vi)   promptly after a Responsible Officer becomes aware thereof,
     notice of any development that results in, or would reasonably be expected
     to result in, a Material Adverse Effect;

          (vii)  concurrently with the sending thereof to any holder of Senior
     Indebtedness, a copy of any material notice or report sent to any holder of
     any Senior Indebtedness (or any agent or representative of such holder)
     given under any agreement under which such Senior Indebtedness was issued
     or is outstanding or any other agreement relating to such Senior
     Indebtedness (unless such notice or report was given to the holders of the
     Subordinated Notes pursuant to another provision of this Agreement and
     excluding routine periodic reports and notices sent pursuant to the
     requirements of any such agreement);

                                       9
<PAGE>

          (viii)  promptly upon, and in any event not later than the next
     Business Day after, receipt thereof, a copy of any notice received from any
     holder of Senior Indebtedness (or any agent or representative of such
     holder) that any default or event of default under any agreement under
     which such Senior Indebtedness is outstanding has occurred or any notice of
     any acceleration of any Senior Indebtedness; and

          (ix)    with reasonable promptness, such other information as such
     Significant Holder may reasonably request.

Together with each delivery of financial statements required by clauses (i) and
(ii) above, the Company will deliver to each Significant Holder an Officer's
Certificate demonstrating (with computations in reasonable detail) compliance by
the Company and its Subsidiaries with the provisions of paragraphs 6A(1), 6A(2),
6A(3), 6D, 6E and 6F and stating that there exists no Event of Default or
Default, or, if any Event of Default or Default exists, specifying the nature
and period of existence thereof and what action the Company proposes to take
with respect thereto. Together with each delivery of financial statements
required by clause (ii) above, the Company will deliver to each Significant
Holder a certificate of such accountants stating that, in making the audit
necessary for their report on such financial statements, they have obtained no
knowledge of any Event of Default or Default, or, if they have obtained
knowledge of any Event of Default or Default, specifying the nature and period
of existence thereof. Such accountants, however, shall not be liable to anyone
by reason of their failure to obtain knowledge of any Event of Default or
Default which would not be disclosed in the course of an audit conducted in
accordance with generally accepted auditing standards. The Company also
covenants that immediately after any Responsible Officer obtains knowledge of an
Event of Default or Default, it will deliver to each Significant Holder an
Officer's Certificate specifying the nature and period of existence thereof and
what action the Company proposes to take with respect thereto.

      5B. Information Required by Rule 144A. The Company covenants that it will,
upon the request of the holder of any Subordinated Note, provide such holder,
and any qualified institutional buyer designated by such holder, such financial
and other information as such holder may reasonably determine to be necessary in
order to permit compliance with the information requirements of Rule 144A under
the Securities Act in connection with the resale of Subordinated Notes, except
at such times as the Company is subject to the reporting requirements of section
13 or 15(d) of the Exchange Act. For the purpose of this paragraph 5B, the term
"qualified institutional buyer" shall have the meaning specified in Rule 144A
under the Securities Act.

      5C. Inspection of Property. The Company covenants that it will permit any
Person designated by any Significant Holder in writing, at such Significant
Holder's expense if no Default or Event of Default exists and at the Company's
expense if a Default or an Event of Default exists, to visit and inspect any of
the properties of the Company and its Subsidiaries, to examine the corporate
books and financial records of the Company and its Subsidiaries and make copies
thereof or extracts therefrom and to discuss the affairs, finances and accounts
of any of such corporations with the principal officers of the Company and its
independent public accountants, all at such

                                       10
<PAGE>

reasonable times and without materially disrupting the operations of the Company
and its Subsidiaries and as often as such Significant Holder may reasonably
request. Anything in this paragraph 5C to the contrary notwithstanding, the
Company shall not be required to disclose, discuss or permit the inspection or
examination of any information with respect to which the Company has, within
five (5) Business Days after any Significant Holder's request hereunder,
delivered an Officer's Certificate of a Responsible Officer to such Significant
Holder to the effect that, after consulting with legal counsel, disclosure of
such information to such Holder is prohibited by legal requirements applicable
to the Company.

      5D. Covenant to Secure Subordinated Note Equally.  The Company covenants
that if it or any Subsidiary shall create or assume any Lien upon any of its
property or assets, whether now owned or hereafter acquired, other than Liens
permitted by the provisions of paragraph 6B (unless prior written consent to the
creation or assumption thereof shall have been obtained pursuant to paragraph
12C(1)), it will make or cause to be made effective provision whereby the
Subordinated Notes will be secured by such Lien equally and ratably with any and
all other Indebtedness thereby secured so long as any such other Indebtedness
shall be so secured; provided that the creation and maintenance of such equal
and ratable Lien shall not in any way limit or modify the right of the holders
of the Subordinated Notes to enforce the provisions of paragraph 6B.

      5E. Compliance with Law.  The Company covenants that it will, and will
cause each of its Subsidiaries to, comply with all laws, ordinances or
governmental rules or regulations to which each of them is subject, including,
without limitation, environmental laws, and will obtain and maintain in effect
all licenses, certificates, permits, franchises and other governmental
authorizations necessary to the ownership of their respective properties or to
the conduct of their respective businesses, in each case to the extent necessary
to ensure that non-compliance with such laws, ordinances or governmental rules
or regulations or failures to obtain or maintain in effect such licenses,
certificates, permits, franchises and other governmental authorizations would
not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect, except to the extent that the Company or such Subsidiary is
actively contesting the applicability or validity thereon on a timely basis in
good faith by appropriate proceedings, and the Company or such Subsidiary has
established adequate reserves therefor in accordance with generally accepted
accounting principles on the books of the Company or such Subsidiary.

      5F. Insurance.  The Company covenants that it will, and will cause each of
its Subsidiaries to, maintain, with financially sound and reputable insurers,
insurance with respect to their respective properties and businesses against
such casualties and contingencies, of such types, on such terms and in such
amounts as is customary in the case of entities of established reputations
engaged in the same or a similar business and similarly situated.

      5G. Maintenance of Properties.  The Company covenants that it will, and
will cause each of its Subsidiaries to, maintain and keep, or cause to be
maintained and kept, their respective properties in good repair, working order
and condition (other than ordinary wear and tear), so that the business carried
on in connection therewith may be properly conducted at all times, provided that

                                       11
<PAGE>

(i) this paragraph shall not prevent the Company or any Subsidiary from
discontinuing the operation and the maintenance of any of its properties if such
discontinuance is desirable in the conduct of its business and such
discontinuance would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect and (ii) the Company shall not be
considered to be in violation of this paragraph 5G if it is delayed in repairing
or replacing any property due to causes beyond the reasonable control of the
Company and its Subsidiaries.

      5H. Payment of Taxes.  The Company covenants that it will, and will cause
each of its Subsidiaries to, file all income tax or similar tax returns required
to be filed in any jurisdiction and to pay and discharge all taxes shown to be
due and payable on such returns and all other taxes, assessments, governmental
charges or levies payable by any of them, and to pay and discharge all amounts
payable for work, labor and materials, in each case to the extent such taxes,
assessments, charges, levies and amounts payable have become due and payable and
before they have become delinquent, provided that neither the Company nor any
Subsidiary need pay any such tax, assessment, charge, levy or amount payable if
(i) the amount, applicability or validity thereof is being actively contested by
the Company or such Subsidiary on a timely basis in good faith and in
appropriate proceedings, and the Company or such Subsidiary has established
adequate reserves therefor in accordance with generally accepted accounting
principles on the books of the Company or such Subsidiary or (ii) the nonpayment
of all such taxes, assessments, charges, levies and amounts payable in the
aggregate would not reasonably be expected to have a Material Adverse Effect.

      5I. Existence, etc.  Subject to paragraph 6C, the Company will at all
times preserve and keep in full force and effect its corporate existence and the
legal existence of each of its Subsidiaries. The Company and its Subsidiaries
will at all times preserve and keep in full force and effect all certificates of
convenience and necessity, rights and franchises, licenses, permits, operating
rights and other authorizations from federal, state, foreign, regional,
municipal and other local regulatory bodies or administrative agencies or
governmental bodies having jurisdiction over the Company and its Subsidiaries or
any of their respective properties as are necessary for the ownership, operation
and maintenance of their respective businesses and properties, unless the
termination of or failure to preserve and keep in full force and effect such
right, certificate or franchise, license, permit, operating right or other
authorization would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect.

      5J. Lines of Business.  The Company covenants that it will not, and it
will not permit any Subsidiary of the Company to, engage in any business if, as
a result thereof, the general nature of the businesses of the Company and its
Subsidiaries, taken as a whole, would be substantially changed from the
Permitted Businesses.

      5K. Subsequent Guarantors.

      (i) The Company covenants that if at any time any Person, which is not a
Material Subsidiary as of the date hereof, shall become a Material Subsidiary,
the Company will cause such Person (1) if such Material Subsidiary owns assets
constituting more than 10% of Consolidated Total

                                       12
<PAGE>

Assets at such time or has or would have, on a pro forma basis, contributed more
than 10% of consolidated revenues of the Company and the Subsidiaries over the
past twelve months, within 10 days after it becomes a Material Subsidiary (but
in no event later than the date upon which such Material Subsidiary has
Guaranteed other Indebtedness), or (2) for any other Material Subsidiary, within
30 days after the end of the fiscal quarter in which it becomes a Material
Subsidiary (but in no event later than the date upon which such Material
Subsidiary has Guaranteed any other Indebtedness), to execute and deliver to the
holders of the Subordinated Notes a Guaranty Agreement substantially in the form
of Exhibit C hereto, a certificate in the form specified in paragraph 3A(iii)
with respect to such Person and such Guaranty Agreement, and an opinion of
counsel for such Person with respect to such Person and such Guaranty Agreement
in the form as specified in paragraph 3C; provided, however, in the case such
Material Subsidiary is organized under the law of any jurisdiction other than
any of the United States or its territories, such Material Subsidiary shall not
be required to Guarantee the Subordinated Notes in excess of the extent to which
such Guarantee would cause the Company to be deemed to have received a taxable
dividend for United States income tax purposes.

     (ii)   Each holder of a Subordinated Note, by its acceptance of a
Subordinated Note, agrees that in the case of (A) a sale, transfer or other
disposition (whether in a single transaction or a series of related transactions
and whether by merger, consolidation or otherwise) permitted by this Agreement
of all of the issued and outstanding capital stock of any Subsidiary to any
Person that is not, at the time of such sale, transfer or other disposition, the
Company or a Subsidiary; or (B) the dissolution of any Subsidiary permitted by
this Agreement; then automatically and without further action: (1) the Guaranty
Agreement of such Subsidiary (each such Subsidiary a "Released Subsidiary")
shall be deemed terminated and of no further force and effect; and (2) no holder
of any Subordinated Notes shall have any claim against such Released Subsidiary
under such Guaranty Agreement.

     (iii)  Each holder of a Subordinated Note, by its acceptance of a
Subordinated Note, agrees that the Company may, on behalf of any Released
Subsidiary, request such holder of a Subordinated Note, at the expense of the
Company, to execute and deliver to the Company, for the benefit of any Person, a
written release, disclaimer, termination or quitclaim, and such other release
documents as the Company may reasonably request, in form reasonably satisfactory
to such holder, to evidence such termination under clause (iii) of this
paragraph 5K.

      6.  NEGATIVE COVENANTS.

      6A. Financial Covenants.

          6A(1).  Total Debt Leverage Ratio. The Company covenants that it will
not at any time permit the ratio of (i) the outstanding amount of all Funded
Debt (including all Subordinated Debt) to (ii) EBITDA for the four consecutive
fiscal quarters then ended to be greater than 3.25 to 1.0.

                                       13
<PAGE>

          6A(2).  Senior Debt Leverage Ratio. The Company covenants that it will
not permit at any time the ratio of (i) the outstanding amount of all Senior
Funded Debt to (ii) EBITDA for the four consecutive fiscal quarters then ended
to be greater than the Maximum Senior Debt Leverage Ratio.

          6A(3).  Fixed Charge Coverage Ratio. The Company covenants that it
will not at any time permit the ratio of (i) (a) EBITDA for any period of four
consecutive fiscal quarters (excluding any amount of EBITDA for such period
included in the calculation of such EBITDA as a result of clause (ii) of the
definition of EBITDA) minus (b) cash federal, state and local income and
franchise taxes actually paid by the Company and its Subsidiaries during such
period, plus (c) to the extent deducted in determining EBITDA for such period,
cash Rentals actually paid by the Company and its Subsidiaries under Operating
Leases during such period, to (ii) (a) cash interest expense actually paid by
the Company and its Subsidiaries during such period (including the interest
expense portion of any payments on Capitalized Lease Obligations), plus (b)
Maintenance Capital Expenditures of the Company and its Subsidiaries for such
period, plus (c) cash Rentals actually paid by the Company and its Subsidiaries
under Operating Leases during such period, to be less than 1.00 to 1.0.

      6B. Liens.  The Company covenants that it will not, and will not permit
any Subsidiary to, create, incur, assume or permit to exist any Lien on any
property now owned or hereafter acquired by it, or assign or sell any income or
revenues (including accounts receivable) or rights in respect of any thereof,
except:

          (i)     Permitted Encumbrances;

          (ii)    Any Lien securing Senior Indebtedness;

          (iii)   Renewals and extensions of the above on similar terms and
     conditions; and

          (iv)    the sale or assignment of any income or revenues (including
     accounts receivable) or rights in respect of any thereof of any Subsidiary
     or division of the Company in connection with the sale of such Subsidiary
     or division as an entirety, provided that such sale is permitted under the
     other provisions of this Agreement

      6C. Mergers and Consolidations.  The Company covenants that it will not,
and will not permit any Subsidiary to, directly or indirectly, merge or
consolidate with or into any other Person, or Transfer all or substantially all
of its property (in a single transaction or a series of related transactions) to
any Person, except that:

          (i)     the Company may merge or consolidate with any other Person or
     Transfer all of its property to any other Person, provided that (a) the
     Person formed by such consolidation or the survivor of such merger or the
     Person acquiring such property (as the case may be, the "Successor Person")
     shall be a solvent Person, organized and existing under the laws of the

                                       14
<PAGE>

     United States of America, any State thereof or the District of Columbia,
     (b) if the Successor Person is not the Company (1) the Successor Person
     assumes unconditionally in writing (which writing shall be satisfactory in
     form and substance to the Required Holder(s)) the due and punctual payment
     and performance of all obligations of the Company under this Agreement and
     the Subordinated Notes and any other agreement or instrument executed in
     connection therewith, (2) the holders of the Subordinated Notes shall have
     received an opinion from nationally recognized independent counsel, or
     other counsel reasonably satisfactory to the Required Holder(s), to the
     effect that such assumption agreement is enforceable and as to such other
     matters incident thereto as the Required Holder(s) may reasonably request,
     and (3) each Guarantor shall have delivered to the holders of the
     Subordinated Notes a written confirmation (which written confirmation shall
     be satisfactory in form and substance to the Required Holder(s)) that its
     obligations under the Guaranty Agreement to which it is a party continue in
     full force and effect notwithstanding such merger, consolidation or
     Transfer and such Guaranty Agreement is applicable to the obligations
     assumed by the Successor Person under such written assumption, and (c) both
     before and immediately after such merger, consolidation or Transfer no
     Default or Event of Default shall exist; and

          (ii)    any Subsidiary may merge with the Company (provided that the
     Company is the surviving entity) or another Subsidiary (provided that the
     surviving entity is a Wholly-Owned Subsidiary).

No such Transfer of all of the property of the Company shall have the effect of
releasing the Company or any Successor Person that shall theretofore have become
such in the manner prescribed in this paragraph 6C from its liability under this
Agreement or the Subordinated Notes.

      6D. Sale of Assets.  The Company covenants that it will not, and will not
permit any Subsidiary to, directly or indirectly, Transfer any property other
than (i) Transfers of inventory, obsolete equipment and rolling stock no longer
needed or worn out, and the granting of easements constituting Permitted
Encumbrances, in each case in the ordinary course of business, (ii) other
Transfers of property, provided that (a) in the good faith opinion of the
Company, such Transfer is for fair market value, (b) immediately after giving
effect to Transfer, no Default or Event of Default would exist, and (c)
immediately after giving effect to such Transfer (1) the aggregate book value of
all property Transferred pursuant to this clause (ii) during any fiscal year
(including property of any Subsidiary Transferred as provided in paragraph 6E)
would not exceed 15% of Consolidated Total Assets as of the date of such
Transfer, and (2) the aggregate book value of all property Transferred pursuant
to this clause (ii) on or after the date of this Agreement (including property
of any Subsidiary Transferred as provided in paragraph 6E) would not exceed 35%
of Consolidated Total Assets as at the date of such Transfer, except that (x)
any Subsidiary may Transfer property to the Company or any other Wholly-Owned
Subsidiary, or (y) the Company or any Subsidiary may Transfer property in excess
of the foregoing limitations so long as the net proceeds resulting from such
Transfer are either: (A) reinvested by the Company or any Subsidiary within one
year after the date of such Transfer in property used in the businesses of the
Company or such Subsidiary (and

                                       15
<PAGE>

pending such reinvestment, are invested in Permitted Investments) or (B) applied
to pay Senior Indebtedness (other than Indebtedness owed to the Company or
another Subsidiary) or to make an optional prepayment of the Subordinated Notes
pursuant to paragraph 4B hereof, or (iii) Restricted Payments permitted under
paragraph 6F.

      6E. Sale of Stock or other Equity of Subsidiaries.  The Company covenants
(i) that it will not permit any Subsidiary to, directly or indirectly, issue,
sell or otherwise dispose of any shares of any class of its capital stock or
other ownership interests (other than preferred stock which is not participating
preferred and is permitted to be issued pursuant to paragraph 6I hereof) except
to the Company or another Wholly-Owned Subsidiary, and (ii) that it will not,
and will not permit any Subsidiary to, directly or indirectly, Transfer, or part
with control of, any shares of capital stock or other ownership interests of any
Subsidiary; provided, however, that the Company or any Subsidiary may sell
shares of the capital stock or other ownership interests of a Subsidiary
provided that, at the time of such sale (a) such Subsidiary shall not own,
directly or indirectly, any shares of stock or other ownership interests or
Indebtedness of any other Subsidiary or any Indebtedness of the Company, and (b)
such sale would be permitted as the sale of the same proportion of all the
property of such Subsidiary under paragraph 6D as the proportion that such
shares of capital stock or other ownership interests being sold is of all of the
outstanding capital stock or other ownership interests of such Subsidiary (and,
for the purposes of paragraph 6D, any sale by the Company or any Subsidiary of
shares of the capital stock or other ownership interests of a Subsidiary shall
be considered to be the sale of such proportion of all of the property of such
Subsidiary).

      6F. Restricted Payments.  The Company covenants that it will not, and will
not permit any of its Subsidiaries to, at any time, declare or make, or incur
any liability to declare or make, any Restricted Payment unless at the time of
such action and immediately after giving effect to such action: (i) the
aggregate amount of all Restricted Payments of the Company and its Subsidiaries
declared or made during the period commencing on July 1, 2000 and ending on the
date such Restricted Payment is declared or made, inclusive, would not exceed
the sum of (a) 25% of Consolidated Net Earnings of the Company for each full
fiscal quarter completed after June 30, 2000 and prior to the date such
Restricted Payment is declared or made (or minus 100% of Consolidated Net
Earnings of the Company for any such fiscal quarter if Consolidated Net Earnings
of the Company for such fiscal quarter is a loss), plus (b) the aggregate amount
of Net Proceeds of Capital Stock received by the Company in each such fiscal
quarter, and (ii) no Default or Event of Default would exist.  The foregoing
provisions will not prevent (w) the payment of any dividend on capital stock or
other ownership interest or of any class within 60 days after the date of its
declaration if at the date of such declaration such payment would have been
permitted by this Agreement, (x) any redemption of capital stock or other
ownership interest or Subordinated Debt of the Company or any Subsidiary made by
exchange for capital stock or other ownership interest  (which is not Redeemable
capital stock) of the Company or any Subsidiary, (y) any repurchase or
redemption of Subordinated Debt of the Company which is pari passu with the
                                                        ---- -----
Subordinated Notes made by exchange for or out of the net cash proceeds from the
substantially concurrent issuance or sale of other Subordinated Debt of the
Company or a Subsidiary which is pari passu with or subordinated to the
                                 ---- -----
Subordinated Notes and which is otherwise permitted under this Agreement or (z)
any repurchase or redemption

                                       16
<PAGE>

of Subordinated Debt of the Company which is subordinated to the Subordinated
Notes made by exchange for or out of the net cash proceeds from the
substantially concurrent issuance or sale of other Subordinated Debt of the
Company or a Subsidiary which is subordinated to the Subordinated Notes and is
otherwise permitted under this Agreement. Restricted Payments permitted to be
made as described in the preceding sentence will be excluded in calculating the
amount of Restricted Payments thereafter.

      6G. Transactions with Affiliates.  The Company will not, and will not
permit any of its Subsidiaries to, sell, lease or otherwise transfer any
property to, or purchase, lease or otherwise acquire any property from, or
otherwise engage in any other transactions with, any of its Affiliates, except
(i) in the ordinary course of business at prices and on terms and conditions not
less favorable to the Company or such Subsidiary than could be obtained on an
arm's-length basis from unrelated third parties, (ii) transactions between or
among the Company and its Wholly-Owned Subsidiaries not involving any other
Affiliate, provided no transfer of property may be made to any Material
Subsidiary that is not a party to a Guaranty Agreement, (iii) any Restricted
Payment permitted by paragraph 6F, (iv) compensation and other benefits paid to
officers, directors and employees, and (v) transactions in connection with the
acquisition of any Qualified Company.

      6H. Subsidiary Restrictions.  The Company covenants that it will not, and
will not permit any Subsidiary to, enter into, or be otherwise subject to, any
contract or agreement (including its certificate of incorporation) which limits
the amount of or otherwise imposes restrictions on (i) the payment of dividends
or distributions by any Subsidiary to the Company or any other Wholly-Owned
Subsidiary, (ii) the payment by any Subsidiary of any indebtedness owed to the
Company or any other Wholly-Owned Subsidiary, (iii) the making of loans or
advances by any Subsidiary to the Company or any other Wholly-Owned Subsidiary,
(iv) the transfer by any Subsidiary of its property to the Company or any other
Wholly-Owned Subsidiary, (v) the merger or consolidation of any Subsidiary with
or into the Company or any other Wholly-Owned Subsidiary, or (vi) the guaranty
by any Subsidiary of the Company's indebtedness hereunder; provided that (a) the
foregoing shall not apply to restrictions and conditions imposed by law or by
this Agreement, (b) the foregoing shall not apply to customary restrictions and
conditions contained in agreements relating to the sale of a Subsidiary pending
such sale, provided such restrictions and conditions apply only to the
Subsidiary that is to be sold and such sale is permitted hereunder, (c) clause
(iv) of the foregoing shall not apply to customary provisions in leases and
other contracts restricting the assignment thereof, (d) the foregoing shall not
apply to existing restrictions and conditions existing on the date of closing in
the Existing Credit Agreement, (e) the foregoing shall not apply to restrictions
relating to any assets of any Subsidiary acquired after the date of closing
existing at the date on which such Subsidiary was acquired, so long as such
restriction relates only to the assets so acquired and was not created in
connection with or in contemplation of such acquisition, (f) the foregoing shall
not apply to restrictions relating to any Indebtedness of any Subsidiary
acquired after the date of closing, existing at the date on which such
Subsidiary was acquired by the Company or any Subsidiary, so long as such
Indebtedness and restrictions were not created in connection with or in
contemplation of such acquisition, (g) the foregoing shall not apply to
restrictions on the sale or other disposition of any property securing
Indebtedness or any other obligation as a result of a

                                       17
<PAGE>

Permitted Encumbrance on such property, and (h) the foregoing shall not apply to
customary restrictions on cash, deposits and other assets imposed by customers
under contracts entered into in the ordinary course of business and not relating
to an incurrence of Indebtedness.

      6I. Subsidiary Preferred Stock.  The Company covenants that it will not
permit any Subsidiary which is not a Guarantor to issue or permit to be
outstanding any class of capital stock which has priority over any other class
of capital stock of such Subsidiary as to dividends or in liquidation, except
for shares of such capital stock held by the Company or any Wholly-Owned
Subsidiary.

      6J. Limitations on Issuance of Other Subordinated Indebtedness.  The
Company shall not, and the Company shall not permit any Subsidiary to, create,
incur, assume, permit to exist, Guarantee, or in any other manner become liable
with respect to any Indebtedness that is contractually subordinate in right of
payment to any Senior Indebtedness unless such Indebtedness (i) is otherwise
permitted by the terms hereof and is Indebtedness that is pari passu with, or
                                                          ---- -----
subordinate pursuant to provisions approved, which approval will not be
unreasonably withheld, by the Required Holder(s) in right of payment to, the
Subordinated Notes, (ii) does not have any date for any scheduled payment of
principal prior to the maturity date of the Subordinated Notes and (iii) does
not have any date for any scheduled payment of interest prior to the maturity
date of the Subordinated Notes which is not the same date as a date for a
scheduled payment of interest on the Subordinated Notes.  In addition, the
Company shall not, and the Company shall not permit any Subsidiary to, create,
incur, permit to exist, Guarantee, or in any manner become liable with respect
to any Subordinated Debt issued (x) in connection with the Acquisition of any
Person and (y) to such Person or any owner, or any Affiliate of any owner, of
such Person or of any securities of or ownership interests in such Person,
unless (a) such Subordinated Debt is subordinated in right of payment to the
Subordinated Notes pursuant to provisions approved by the Required Holder(s), or
(b)(x) such Subordinated Debt is pari passu with the Subordinated Notes as
                                 ---- -----
required above, (y) such Subordinated Debt does not have the benefit of any
negative covenant of the nature of paragraphs 6A through 6F or related event of
default that is more favorable to the holders thereof than such covenants or
events of default, and (z) the aggregate principal amount of all such
Subordinated Debt outstanding under this clause (b) shall not exceed the greater
of (i) $25,000,000 or (ii) 5% of Consolidated Total Assets at the time of any
incurrence thereof.

      6K. Payment Limitations.  The Company covenants that it will not enter
into or become subject to any restriction on the payment of any Subordinated
Obligations other than the provisions of paragraph 10 hereof.

      6L. Hedging Agreement.  The Company covenants that it will not, and will
not permit any Subsidiary to, enter into any Hedging Agreement for speculative
purposes.

      6M. Sale and Leaseback.  The Company covenants that it will not, and will
not permit any Subsidiary to, directly or indirectly enter into any agreement or
arrangement providing for the sale or transfer by it of any property (now owned
or hereafter acquired) to a Person and the

                                       18
<PAGE>

subsequent lease or rental of such property or similar property from such Person
unless such sale or transfer and subsequent lease or rental is not in violation
of any other provision of this Agreement.

      7.  EVENTS OF DEFAULT.

      7A. Acceleration.  If any of the following events shall occur and be
continuing for any reason whatsoever (and whether such occurrence shall be
voluntary or involuntary or come about or be effected by operation of law or
otherwise):

          (i)    the Company defaults in the payment of any principal of or
     Yield-Maintenance Amount payable with respect to any Subordinated Note when
     the same shall become due, either by the terms thereof or otherwise as
     herein provided; or

          (ii)   the Company defaults in the payment of any interest on any
     Subordinated Note for more than 5 Business Days after the date due; or

          (iii)  the Company or any Subsidiary defaults (whether as primary
     obligor or as guarantor or other surety) in any payment of principal of or
     interest on any Indebtedness beyond any period of grace provided with
     respect thereto, or the Company or any Subsidiary fails to perform or
     observe any other agreement, term or condition contained in any agreement
     under which any such Indebtedness is created (or if any other event
     thereunder or under any such agreement shall occur and be continuing), and
     the holder or holders of such Indebtedness (or a trustee on behalf of such
     holder or holders) have caused such Indebtedness to become due (or to be
     repurchased by the Company or any Subsidiary) prior to the stated maturity
     thereof, provided that the aggregate amount of all Indebtedness which has
     become due (or is required to be repurchased by the Company or any
     Subsidiary) exceeds $5,000,000; or

          (iv)   any representation or warranty made by the Company or any
     Guarantor herein or in any Guaranty Agreement or by the Company or any
     Guarantor or any of its officers in any writing furnished in connection
     with or pursuant to this Agreement or any Guaranty Agreement shall be false
     in any material respect on the date as of which made; or

          (v)    the Company fails to perform or observe any agreement contained
     in paragraph 4E or paragraph 6 (other than paragraphs 6B, 6G, 6H, or 6L,
     clause (ii)(y) of paragraph 6D, or paragraphs 6E or 6M, in each case to the
     extent paragraphs 6E or 6M relates to clause (ii)(y) of paragraph 6D, which
     paragraphs and clauses are subject to clause (vi) of this paragraph 7A); or

          (vi)   the Company fails to perform or observe any other agreement,
     term or condition contained herein and such failure shall not be remedied
     within 30 days after any Responsible Officer obtains actual knowledge
     thereof, or any Guarantor fails to perform or observe any agreement
     contained in any Guaranty Agreement and such failure shall not be

                                       19
<PAGE>

     remedied within the grace period, if any, provided therefor in such
     Guaranty Agreement (or, if no grace period is provided therefor in such
     Guaranty Agreement, within 30 days after any Responsible Officer obtains
     actual knowledge thereof); or

          (vii)   the Company or any Significant Subsidiary makes an assignment
     for the benefit of creditors or is generally not paying its debts as such
     debts become due; or

          (viii)  any decree or order for relief in respect of the Company or
     any Significant Subsidiary is entered under any bankruptcy, reorganization,
     compromise, arrangement, insolvency, readjustment of debt, dissolution or
     liquidation or similar law, whether now or hereafter in effect (herein
     called the "Bankruptcy Law"), of any jurisdiction; or

          (ix)    the Company or any Significant Subsidiary petitions or applies
     to any tribunal for, or consents to, the appointment of, or taking
     possession by, a trustee, receiver, custodian, liquidator or similar
     official of the Company or any Significant Subsidiary, or of any
     substantial part of the assets of the Company or any Significant
     Subsidiary, or commences a voluntary case under the Bankruptcy Law of the
     United States or any proceedings (other than proceedings for the voluntary
     liquidation and dissolution of a Significant Subsidiary) relating to the
     Company or any Significant Subsidiary under the Bankruptcy Law of any other
     jurisdiction; or

          (x)    any such petition or application described in clause (ix) of
     this paragraph 7A is filed, or any such case or proceedings described in
     clause (ix) of this paragraph 7A are commenced, against the Company or any
     Significant Subsidiary and the Company or such Significant Subsidiary by
     any act indicates its approval thereof, consent thereto or acquiescence
     therein, or an order, judgment or decree is entered appointing any such
     trustee, receiver, custodian, liquidator or similar official, or approving
     the petition in any such proceedings, and such order, judgment or decree
     remains unstayed and in effect for more than 60 days; or

          (xi)   any order, judgment or decree is entered in any proceedings
     against the Company decreeing the dissolution of the Company and such
     order, judgment or decree remains unstayed and in effect for more than 60
     days; or

          (xii)  any order, judgment or decree is entered in any proceedings
     against the Company or any Significant Subsidiary decreeing a split-up of
     the Company or such Significant Subsidiary which requires the divestiture
     of assets representing a substantial part, or the divestiture of the stock
     of a Significant Subsidiary whose assets represent a substantial part, of
     the consolidated assets of the Company and its Subsidiaries (determined in
     accordance with generally accepted accounting principles) or which requires
     the divestiture of assets, or stock of a Significant Subsidiary, which
     shall have contributed a substantial part of the consolidated net income of
     the Company and its Subsidiaries (determined in accordance with generally
     accepted accounting principles) for any of the three fiscal years

                                       20
<PAGE>

     then most recently ended, and such order, judgment or decree remains
     unstayed and in effect for more than 60 days; or

          (xiii)  one or more final judgments in an aggregate amount (net of any
     insurance if the insurer has acknowledged its obligation to pay such
     insurance and is not in default of such obligation) in excess of $5,000,000
     are rendered against the Company or any Significant Subsidiary and either
     (a) enforcement proceedings have been commenced by any creditor upon any
     such judgment or (b) within 60 days after entry thereof, any such judgment
     is not discharged or execution thereof stayed pending appeal, or within 60
     days after the expiration of any such stay, such judgment is not
     discharged; or

          (xiv)   (a) any Plan shall fail to satisfy the minimum funding
     standards of ERISA or the Code for any plan year or part thereof or a
     waiver of such standards or extension of any amortization period is sought
     or granted under section 412 of the Code and any such failure, waiver or
     failure to obtain such waiver would reasonably be expected to have a
     Material Adverse Effect, (b) a notice of intent to terminate any Plan shall
     have been or is reasonably expected to be filed with the PBGC or the PBGC
     shall have instituted proceedings under ERISA section 4042 to terminate or
     appoint a trustee to administer any Plan or the PBGC shall have notified
     the Company or any ERISA Affiliate that a Plan may become a subject of such
     proceedings and any such event would reasonably be expected to result in a
     liability to the Company or an ERISA Affiliate in excess of $5,000,000, (c)
     the aggregate "amount of unfunded benefit liabilities" (within the meaning
     of section 4001(a)(18) of ERISA) under all Plans, determined in accordance
     with Title IV of ERISA, shall exceed $5,000,000, (d) the Company or any
     ERISA Affiliate shall have incurred or is reasonably expected to incur any
     liability pursuant to Title I or IV of ERISA or the penalty or excise tax
     provisions of the Code relating to employee benefit plans that would
     reasonably be expected to have a Material Adverse Effect, (e) the Company
     or any ERISA Affiliate withdraws from any Multiemployer Plan resulting in
     the incurrence by such withdrawing employer of a withdrawal liability in an
     amount exceeding $5,000,000, or (f) the Company or any Subsidiary
     establishes or amends any employee welfare benefit plan that provides post-
     employment welfare benefits in a manner that would increase the liability
     of the Company or any Subsidiary thereunder to the extent that would
     reasonably be expected to have a Material Adverse Effect; or

          (xv)    other than in accordance with its terms, any Guaranty
     Agreement of a Material Subsidiary shall cease to be in full force and
     effect, or any Guarantor that is a Material Subsidiary shall contest or
     deny the validity or enforceability of, or deny that it has any liability
     or obligations under, any Guaranty Agreement;

then (a) if such event is an Event of Default specified in clause (i) or (ii) of
this paragraph 7A, the holder of any Subordinated Note (other than the Company
or any of its Subsidiaries or Affiliates) may at its option, by notice in
writing to the Company, declare such Subordinated Note to be, and such
Subordinated Note shall thereupon be and become, immediately due and payable at
par together

                                       21
<PAGE>

with interest accrued thereon and together with the Yield-Maintenance Amount, if
any, with respect to such Subordinated Note, without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the
Company, (b) if such event is an Event of Default specified in clause (viii),
(ix) or (x) of this paragraph 7A with respect to the Company, all of the
Subordinated Notes at the time outstanding shall automatically become
immediately due and payable together with interest accrued thereon and together
with the Yield-Maintenance Amount, if any, with respect to each Subordinated
Note, without presentment, demand, protest or notice of any kind, all of which
are hereby waived by the Company, and (c) if such event is not an Event of
Default specified in clause (viii), (ix) or (x) of this paragraph 7A with
respect to the Company, the Required Holder(s) may at its or their option, by
notice in writing to the Company, declare all of the Subordinated Notes to be,
and all of the Subordinated Notes shall thereupon be and become, immediately due
and payable together with interest accrued thereon and together with the Yield-
Maintenance Amount, if any, with respect to each Subordinated Note, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Company. The Company acknowledges, and the parties hereto
agree, that each holder of a Subordinated Note has the right to maintain its
investment in the Subordinated Notes free from repayment by the Company (except
as herein specifically provided for) and that the provision for payment of
Yield-Maintenance Amount by the Company in the event the Subordinated Notes are
prepaid or are accelerated as a result of an Event of Default is intended to
provide compensation for the deprivation of such right under such circumstances.

      7B. Rescission of Acceleration.  At any time within 90 days after any or
all of the Subordinated Notes shall have been declared immediately due and
payable pursuant to paragraph 7A, the Required Holder(s) may, by notice in
writing to the Company, rescind and annul such declaration and its consequences
if (i) the Company shall have paid all overdue interest on the Subordinated
Notes, the principal of and Yield-Maintenance Amount, if any, payable with
respect to any Subordinated Notes which have become due otherwise than by reason
of such declaration, and interest on such overdue interest and overdue principal
and Yield-Maintenance Amount at the rate specified in the Subordinated Notes,
(ii) the Company shall not have paid any amounts which have become due solely by
reason of such declaration, (iii) all Events of Default and Defaults, other than
non-payment of amounts which have become due solely by reason of such
declaration, shall have been cured or waived pursuant to paragraph 12C(1), and
(iv) no judgment or decree shall have been entered for the payment of any
amounts due pursuant to the Subordinated Notes or this Agreement.  No such
rescission or annulment shall extend to or affect any subsequent Event of
Default or Default or impair any right arising therefrom.

      7C. Notice of Acceleration or Rescission.  Whenever any Subordinated Note
shall be declared immediately due and payable pursuant to paragraph 7A or any
such declaration shall be rescinded and annulled pursuant to paragraph 7B, the
Company shall forthwith give written notice thereof to the holder of each
Subordinated Note at the time outstanding.

      7D. Other Remedies.  If any Event of Default or Default shall occur and be
continuing, the holder of any Subordinated Note may proceed to protect and
enforce its rights under this Agreement and such Subordinated Note by exercising
such remedies as are available to such holder

                                       22
<PAGE>

in respect thereof under applicable law, either by suit in equity or by action
at law, or both, whether for specific performance of any covenant or other
agreement contained in this Agreement or in aid of the exercise of any power
granted in this Agreement. No remedy conferred in this Agreement upon the holder
of any Subordinated Note is intended to be exclusive of any other remedy, and
each and every such remedy shall be cumulative and shall be in addition to every
other remedy conferred herein or now or hereafter existing at law or in equity
or by statute or otherwise.

      8.  REPRESENTATIONS, COVENANTS AND WARRANTIES.  The Company represents,
covenants and warrants as follows:

      8A(1).   Organization.  The Company is a corporation duly organized and
existing in good standing under the laws of the State of Delaware and each
Subsidiary is duly organized and existing in good standing under the laws of the
jurisdiction in which it is organized.  The Company and each of its Subsidiaries
have duly qualified or been duly licensed, and are authorized to do business and
are in good standing, in each jurisdiction in which the ownership of their
respective properties or the nature of their respective businesses makes such
qualification or licensing necessary and in which the failure to be so qualified
or licensed would be reasonably likely to have a Material Adverse Effect.
Schedule 8A(1) hereto sets forth, as of the date hereof, a correct list of each
Subsidiary, its jurisdiction of organization, its ownership and whether or not
such Subsidiary is a Material Subsidiary.

      8A(2).   Power and Authority.  The Company and each Subsidiary has all
requisite corporate, limited liability company, or partnership, as applicable,
power to own or hold under lease and operate their respective properties which
it purports to own or hold under lease and to conduct its business as currently
conducted and as currently proposed to be conducted.

      8A(3).   Execution and Delivery of Transaction Documents.  The Company and
each Guarantor has all requisite corporate, limited liability company, or
partnership, as applicable, power to execute, deliver and perform its
obligations under this Agreement, the Subordinated Notes and the Guaranty
Agreement, as the case may be.  The execution, delivery and performance of this
Agreement, the Subordinated Notes and the Guaranty Agreement has been duly
authorized by all requisite corporate, limited liability company, or
partnership, as applicable, action, and this Agreement, the Subordinated Notes
and the Guaranty Agreement have been duly executed and delivered by authorized
officers of the Company and each Guarantor, as the case may be, and are valid
obligations of the Company and each Guarantor, as the case may be, legally
binding upon and enforceable against the Company and each Guarantor, as the case
may be, in accordance with its terms, except as such enforceability may be
limited by (i) bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

      8B.      Financial Statements. The Company has furnished each Purchaser
with the following financial statements, identified by a principal financial
officer of the Company: (i) a consolidated balance sheet of the Company and its
Subsidiaries as at December 31, 1999, and

                                       23
<PAGE>

consolidated statements of income, stockholders' equity and cash flows of the
Company and its Subsidiaries for such year, all reported on by Arthur Andersen
LLP, and (ii) a consolidated balance sheet of the Company and its Subsidiaries
as at June 30 in each of the years 1999 and 2000 and consolidated statements of
income, stockholders' equity and cash flows for the six-month period ended on
each such date, prepared by the Company. Such financial statements (including
any related schedules and/or notes) are true and correct in all material
respects (subject, as to interim statements, to changes resulting from audits
and year-end adjustments), have been prepared in accordance with generally
accepted accounting principles consistently followed throughout the periods
involved and show all liabilities, direct and contingent, of the Company and its
Subsidiaries required to be shown in accordance with such principles. The
balance sheets fairly present the condition of the Company and its Subsidiaries
as at the dates thereof, and the statements of income, stockholders' equity and
cash flows fairly present the results of the operations of the Company and its
Subsidiaries and their cash flows for the periods indicated in accordance with
generally accepted accounting principles. Except as disclosed in the Company's
press release dated October 9, 2000, there has been no material adverse change
in the business, condition (financial or otherwise) or operations of the Company
and its Subsidiaries, taken as a whole, since December 31, 1999.

      8C. Actions Pending.  There is no action, suit, investigation or
proceeding pending or, to the knowledge of the Company, threatened against the
Company or any of its Subsidiaries, or any properties or rights of the Company
or any of its Subsidiaries, by or before any court, arbitrator or administrative
or governmental body which, individually or in the aggregate, would reasonably
be expected to result in any Material Adverse Effect.

      8D. Outstanding Indebtedness.  Neither the Company nor any of its
Subsidiaries has outstanding any Indebtedness except as permitted by paragraphs
6A(1) and 6A(2).  Schedule 8D hereto sets forth a complete and correct list of
all outstanding Indebtedness of the Company and its Subsidiaries as of the date
of closing outstanding in an amount in excess of $50,000.  There exists no
default under the provisions of any instrument evidencing such Indebtedness or
of any agreement relating thereto.

      8E. Title to Properties.  The Company has and each of its Subsidiaries has
good and sufficient title to its respective properties and assets (other than
properties which it leases) that individually or in the aggregate are material
to the Company and its Subsidiaries, including the properties and assets
reflected in the balance sheet as at December 31, 1999 referred to in paragraph
8B (other than properties and assets disposed of in the ordinary course of
business), subject to no Lien of any kind except Liens permitted by paragraph
6B.  All leases necessary in any material respect for the conduct of the
respective businesses of the Company and its Subsidiaries taken as a whole are
valid and subsisting and are in full force and effect.

      8F. Taxes.  The Company has and each of its Subsidiaries has filed all
federal, state and other income tax returns which, to the knowledge of the
officers of the Company, are required to be filed, and each has paid all taxes
as shown on such returns and on all assessments received by it to the extent
that such taxes have become due, except such taxes as are being actively
contested in good

                                       24
<PAGE>

faith by appropriate proceedings for which adequate reserves have been
established in accordance with generally accepted accounting principles, the
amount of which individually or in the aggregate is not material to the Company
and its Subsidiaries, taken as a whole.

      8G. Conflicting Agreements and Other Matters.  Neither the Company nor any
of its Subsidiaries is a party to any contract or agreement or subject to any
charter or other corporate restriction which materially and adversely affects
its business, property or assets, or financial condition.  Neither the execution
nor delivery of this Agreement, the Subordinated Notes or the Guaranty
Agreement, nor the offering, issuance and sale of the Subordinated Notes, nor
fulfillment of nor compliance with the terms and provisions hereof, of the
Subordinated Notes, and of the Guaranty Agreement will conflict with, or result
in a breach of the terms, conditions or provisions of, or constitute a default
under, or result in any violation of, or result in the creation of any Lien upon
any of the properties or assets of the Company or any of its Subsidiaries
pursuant to, the organizational documents of the Company or any of its
Subsidiaries, any award of any arbitrator or any agreement (including any
agreement with stockholders), instrument, order, judgment, decree, statute, law,
rule or regulation to which the Company or any of its Subsidiaries is subject.
Neither the Company nor any of its Subsidiaries is a party to, or otherwise
subject to any provision contained in, any instrument evidencing Indebtedness of
the Company or such Subsidiary, any agreement relating thereto or any other
contract or agreement (including its charter) which limits the amount of, or
otherwise imposes restrictions on the incurring of, Indebtedness of the Company
of the type to be evidenced by the Subordinated Notes or Indebtedness of any
Guarantor of the type to be evidenced by the Guaranty Agreement except as set
forth in the agreements listed in Schedule 8G attached hereto.

      8H. Offering of Subordinated Notes.  Neither the Company nor any agent
acting on its behalf has, directly or indirectly, offered the Subordinated Notes
or any similar security of the Company for sale to, or solicited any offers to
buy the Subordinated Notes or any similar security of the Company from, or
otherwise approached or negotiated with respect thereto with, any Person other
than institutional investors, and neither the Company nor any agent acting on
its behalf has taken or will take any action which would subject the issuance or
sale of the Subordinated Notes to the provisions of section 5 of the Securities
Act or to the provisions of any securities or Blue Sky law of any applicable
jurisdiction.

      8I. Use of Proceeds.  Neither the Company nor any Subsidiary owns or has
any present intention of acquiring any "margin stock" as defined in Regulation U
(12 CFR Part 221) of the Board of Governors of the Federal Reserve System
(herein called "margin stock").  The proceeds of sale of the Subordinated Notes
will be used for general corporate purposes of the Company including the
repayment of Senior Indebtedness and Acquisitions.  None of such proceeds will
be used, directly or indirectly, for the purpose, whether immediate, incidental
or ultimate, of purchasing or carrying any margin stock or for the purpose of
maintaining, reducing or retiring any Indebtedness which was originally incurred
to purchase or carry any stock that is currently a margin stock or for any other
purpose which might constitute this transaction a "purpose credit" within the
meaning of such Regulation U.  The Company is not engaged principally, or as one
of its important activities, in the

                                       25
<PAGE>

business of extending credit for the purpose of purchasing or carrying margin
stock. Neither the Company nor any agent acting on its behalf has taken or will
take any action which might cause this Agreement or the Subordinated Notes to
violate Regulation T, Regulation U or any other regulation of the Board of
Governors of the Federal Reserve System or to violate the Exchange Act, in each
case as in effect now or as the same may hereafter be in effect.

      8J. ERISA.  Other than deficiencies disclosed in the financial statements
referred to in paragraph 8B hereof, which deficiencies would not be reasonably
expected to have a Material Adverse Effect, no accumulated funding deficiency
(as defined in section 302 of ERISA and section 412 of the Code), whether or not
waived, exists with respect to any Plan (other than a Multiemployer Plan).  No
liability to the PBGC (other than for premiums not overdue) has been or is
expected by the Company or any ERISA Affiliate to be incurred with respect to
any Plan (other than a Multiemployer Plan) by the Company , any Subsidiary or
any ERISA Affiliate which is or would be materially adverse to the business,
condition (financial or otherwise) or operations of the Company and its
Subsidiaries taken as a whole.  Neither the Company , any Subsidiary nor any
ERISA Affiliate has incurred or presently expects to incur any withdrawal
liability under Title IV of ERISA with respect to any Multiemployer Plan which
is or would be materially adverse to the business, condition (financial or
otherwise) or operations of the Company and its Subsidiaries taken as a whole.
The execution and delivery of this Agreement and the Guaranty Agreement and
issuance and sale of the Subordinated Notes will be exempt from, or will not
involve any transaction which is subject to, the prohibitions of section 406 of
ERISA and will not involve any transaction in connection with which a penalty
could be imposed under section 502(i) of ERISA or a tax would be imposed
pursuant to section 4975 of the Code.  The representation by the Company in the
next preceding sentence is made in reliance upon and subject to the accuracy of
each Purchaser's representation in paragraph 9B.

      8K. Governmental Consent.  Neither the nature of the Company or of any
Subsidiary, nor any of their respective businesses or properties, nor any
relationship between the Company or any Subsidiary and any other Person, nor any
circumstance in connection with the offering, issuance, sale or delivery of the
Subordinated Notes is such as to require any authorization, consent, approval,
exemption or other action by or notice to or filing with any court or
administrative or governmental body (other than routine filings after the date
of closing with the Securities and Exchange Commission and/or state Blue Sky
authorities) in connection with the execution and delivery of this Agreement and
the Guaranty Agreement, the offering, issuance, sale or delivery of the
Subordinated Notes or fulfillment of or compliance with the terms and provisions
hereof, of the Subordinated Notes or of the Guaranty Agreement.  The
representation by the Company in this paragraph 8K is made in reliance upon and
subject to the accuracy of each Purchaser's representation in paragraph 9.

      8L. Compliance with Environmental and Other Laws.  The Company and its
Subsidiaries and all of their respective properties and facilities have complied
at all times and in all respects with all federal, state, local, foreign and
regional statutes, laws, ordinances and judicial or administrative orders,
judgments, rulings and regulations, including, without limitation, those
relating to protection of the environment except, in any such case, where
failure to comply,

                                       26
<PAGE>

individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Effect.

      8M. Regulatory Status. Neither the Company nor any of its Subsidiaries is
(i) an "investment company" or a company "controlled" by an "investment company"
within the meaning of the Investment Company Act of 1940, as amended, or an
"investment adviser" within the meaning of the Investment Advisers Act of 1940,
as amended, (ii) a "holding company" of a "public utility company" or a
"subsidiary company" or an "affiliate" of a "holding company" or of a
"subsidiary company" of a "holding company", within the meaning of the Public
Utility Holding Company Act of 1935, as amended, or (iii) a "public utility"
within the meaning of the Federal Power Act, as amended.

      8N. Permits and Other Operating Rights.  The Company and each Subsidiary
has all such valid and sufficient certificates of convenience and necessity,
franchises, licenses, permits, operating rights and other authorizations from
federal, state, foreign, regional, municipal and other local regulatory bodies
or administrative agencies or other governmental bodies having jurisdiction over
the Company or any Subsidiary or any of its properties, as are necessary for the
ownership, operation and maintenance of its businesses and properties, as
presently conducted and, as far as the Company can reasonably foresee, as
proposed to be conducted while the Subordinated Notes are outstanding, subject
to exceptions and deficiencies which, individually or in the aggregate, would
not reasonably be expected to have a Material Adverse Effect, and such
certificates of convenience and necessity, franchises, licenses, permits,
operating rights and other authorizations from federal, state, foreign,
regional, municipal and other local regulatory bodies or administrative agencies
or other governmental bodies having jurisdiction over the Company, any
Subsidiary or any of its properties are free from restrictions or conditions
which, individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect, and neither the Company nor any Subsidiary is in
violation of any thereof in any respect that would be reasonably expected to
have a Material Adverse Effect.

      8O. Rule 144A.  The Subordinated Notes are not of the same class as
securities of the Company, if any, listed on a national securities exchange,
registered under Section 6 of the Exchange Act or quoted in a U.S. automated
inter-dealer quotation system.

      8P. Disclosure.  Neither this Agreement, the Guaranty Agreement nor any
other document, certificate or statement furnished to any Purchaser by or on
behalf of the Company or any Guarantor in connection herewith contains any
untrue statement of a material fact or omits to state a material fact necessary
in order to make the statements contained herein and therein not misleading in
light of the circumstances under which they were provided.  There is no fact or
facts peculiar to the Company or any of its Subsidiaries which materially
adversely affects or in the future may (so far as the Company can now reasonably
foresee), individually or in the aggregate, reasonably be expected to
materially adversely affect the business, property or assets, or financial
condition of the Company or any of its Subsidiaries and which has not been set
forth in this Agreement or in the other documents, certificates and statements
furnished to each Purchaser by or on behalf of the Company

                                       27
<PAGE>

prior to the date hereof in connection with the transactions contemplated
hereby. The financial projections contained in the Memorandum, as updated by the
financial projections delivered pursuant to paragraph 3F hereof, are reasonable
based on the assumptions stated therein and the best information available to
the officers of the Company at the time and under the circumstances under which
such projections and assumptions were provided. It is understood and
acknowledged by the holders of the Subordinated Notes that the assumptions and
the projections involve inherent uncertainties about many matters, many of which
are beyond the control of the Company and the Subsidiaries, and that actual
results may not match the projections for any number of reasons.

      9.  REPRESENTATIONS OF EACH PURCHASER.  Each Purchaser represents as
follows:

      9A. Nature of Purchase.  Such Purchaser is not acquiring the Subordinated
Notes to be purchased by it hereunder with a view to or for sale in connection
with any distribution thereof within the meaning of the Securities Act, provided
that the disposition of such Purchaser's property shall at all times be and
remain within its control.

      9B. Source of Funds.  At least one of the following statements is an
accurate representation as to each source of funds (a "Source") to be used by
such Purchaser to pay the purchase price of the Subordinated Notes to be
purchased by it hereunder: (i) the Source is the "insurance company general
account" of such Purchaser (as such term is defined under Section V of the
United States Department of Labor's Prohibited Transaction Class Exemption
("PTCE") 95-60), and as of the date of the purchase of the Subordinated Notes
such Purchaser satisfies all of the applicable requirements for relief under
Sections I and IV of PTCE 95-60; (ii) the Source is a separate account
maintained by such Purchaser in which no employee benefit plan, other than
employee benefit plans identified on a written list which has been furnished by
such Purchaser to the Company, participates to the extent of 10% or more; (iii)
the Source constitutes assets of an "investment fund" (within the meaning of
Part V of the QPAM Exemption) managed by a "qualified professional asset
manager" or "QPAM" (within the meaning of Part V of the QPAM Exemption), no
employee benefit plan's assets that are included in such investment fund, when
combined with the assets of all other employee benefit plans established or
maintained by the same employer or by an affiliate (within the meaning of
Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee
organization and managed by such QPAM, exceed 20% of the total client assets
managed by such QPAM, the conditions of Part 1(c) and (g) of the QPAM Exemption
are satisfied, neither the QPAM nor a person controlling or controlled by the
QPAM (applying the definition of "control" in Section V(e) of the QPAM
Exemption) owns a 5% or more interest in the Company and (a) the identity of
such QPAM and (b) the names of all employee benefit plan whose assets are
included in such investment fund have been disclosed to the Company in writing
pursuant to this clause (iii); (iv) the Source is a governmental plan; (v) the
Source is one or more employee benefit plans, or a separate account or trust
fund comprised of one or more employee benefit plans, each of which has been
identified to the Company in writing pursuant to this clause (v); or (vi) the
Source does not include assets of any employee benefit plan, other than a plan
exempt from the coverage of ERISA.  For the purpose of this paragraph 9B, the
terms "separate account",

                                       28
<PAGE>

"governmental plan", and "employee benefit plan" shall have the respective
meanings specified in section 3 of ERISA.

      10.   SUBORDINATION OF SUBORDINATED NOTES.   Anything in this Agreement or
the Subordinated Notes to the contrary notwithstanding, each Purchaser and each
Transferee of a Subordinated Note by its acceptance of a Subordinated Note
covenants and agrees that the payment of the principal of, interest on, and
Yield-Maintenance Amount or Adjusted Yield-Maintenance Amount, if any, with
respect to, the Subordinated Notes and any guarantee of payment with respect to
any of the foregoing (all of the foregoing, the "Subordinated Obligations")
shall, to the extent set forth in this paragraph 10, be subordinate and junior
and subject in right of payment to the prior payment in full of all Senior
Indebtedness.

      10A.  Payment Default or Acceleration.  Except under circumstances when
the terms of paragraph 10C are applicable, if (i) a Payment Default or Senior
Indebtedness Acceleration shall have occurred and be continuing, and (ii) the
holders of the Subordinated Notes shall have received a Payment Default Notice,
then no holder of the Subordinated Notes shall accept or receive any direct or
indirect payment (in cash, other property, by setoff, or otherwise) on account
of the Subordinated Obligations during the Payment Blockage Period; provided,
                                                                    ---------
however, that in the case of any payment on or in respect of any Subordinated
-------
Obligation that would (in the absence of any such Payment Default Notice) have
been due and payable on any date (a "Scheduled Payment Date") during such
Payment Blockage Period pursuant to the terms of this Agreement as in effect on
the date hereof or as amended consistent with the provisions of paragraph 10J
hereof, the provisions of this paragraph 10A shall not prevent the making and
acceptance of such payment (a "Scheduled Payment"), together with any additional
default interest as is provided in this Agreement or the Subordinated Notes, on
or after the date immediately following the termination of such Payment Blockage
Period, provided, further, that if the holders of the Subordinated Notes shall
        -----------------
have received any payment thereon and, within 5 days after the date such payment
was made, shall receive a Payment Default Notice referencing a Payment Default
or a Senior Indebtedness Acceleration, in either case which had occurred and was
continuing on the date of such payment, then the payment so received shall be
subject to the provisions of the next succeeding paragraph and shall be paid
over immediately to the holders of the Senior Indebtedness.

     In the event that, notwithstanding the foregoing, the Company shall make
any payment to any holder of the Subordinated Notes prohibited by the foregoing
provisions of this paragraph 10A, then and in such event such payment shall be
segregated by such holder and held in trust for the benefit of and immediately
shall be paid over to the holders of the Senior Indebtedness for application
against the Senior Indebtedness remaining unpaid until such Senior Indebtedness
is paid in full.  Any Payment Default Notice shall be deemed received by the
holders of the Subordinated Notes upon the date of actual receipt by the holders
of the Subordinated Notes of such Payment Default Notice in writing.

      10B.  Non-Payment Default. Except under circumstances when the terms of
paragraphs 10A or 10C are applicable, if (i) a Non-Payment Default shall have
occurred and be continuing, (ii)

                                       29
<PAGE>

the holders of the Subordinated Notes shall have received a Non-Payment Default
Notice, and (iii) no Non-Payment Default Notice shall have been given within the
360-day period immediately preceding the giving of such Non-Payment Default
Notice, then no holder of the Subordinated Notes shall accept or receive any
direct or indirect payment (in cash, other property, by setoff, or otherwise) on
account of the Subordinated Obligations during the Non-Payment Blockage Period;
provided, however, that in the case of any Scheduled Payment on or in respect
--------- -------
of any Subordinated Obligation that would (in the absence of any such Non-
Payment Default Notice) have been due and payable on any Scheduled Payment Date
during such Non-Payment Blockage Period pursuant to the terms of this Agreement
as in effect on the date hereof or as amended consistent with the requirements
of paragraph 10J hereof, the provisions of this paragraph 10B shall not prevent
the making and acceptance of such Scheduled Payment, together with any
additional default interest as is provided in this Agreement or the Subordinated
Notes, on or after the date immediately following the termination of such Non-
Payment Blockage Period.

     In the event that, notwithstanding the foregoing, the Company shall make
any payment to any holder of the Subordinated Notes prohibited by the foregoing
provisions of this paragraph 10B, then and in such event such payment shall be
segregated by such holder and held in trust for the benefit of and immediately
shall be paid over to the holders of the Senior Indebtedness for application
against the Senior Indebtedness remaining unpaid until such Senior Indebtedness
is paid in full. Any Non-Payment Default Notice shall be deemed received by the
holders of the Subordinated Notes upon the date of actual receipt by the holders
of the Subordinated Notes of such Non-Payment Default Notice in writing.

      10C.  Insolvency; Bankruptcy; etc.  In the event of the institution of
any Insolvency Proceeding relative to the Company, then any payment or
distribution of any kind or character, whether in cash, property or securities,
by setoff or otherwise, which may be payable or deliverable in such proceedings
in respect of the Subordinated Obligations shall be paid or delivered by the
Person making such payment or distribution, whether a trustee in bankruptcy, a
receiver, a liquidating trustee, or otherwise, directly to the holders of the
Senior Indebtedness to the extent necessary to make payment in full of all
Senior Indebtedness remaining unpaid; provided, however, that no such delivery
                                      --------  -------
of any Reorganization Securities shall be made to holders of the Senior
Indebtedness.  In the event that, notwithstanding the foregoing provisions of
this paragraph 10C, the holders of the Subordinated Notes shall have received
any such payment or distribution of any kind or character, whether in cash,
property or securities, by setoff or otherwise, before all Senior Indebtedness
is paid in full, which is to be paid to the holders of the Senior Indebtedness
under the foregoing provisions of this paragraph 10C, then and in such event
such payment or distribution shall be segregated and held in trust for the
benefit of and immediately shall be paid over to the holders of the Senior
Indebtedness for application to the payment of all Senior Indebtedness remaining
unpaid until all such Senior Indebtedness shall have been paid in full.

      10D.  No Impairment. No right of any present or future holder of Senior
Indebtedness to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Company or by any non-compliance by the Company with

                                       30
<PAGE>

the terms, provisions, and covenants of this Agreement or the Subordinated
Notes, regardless of any knowledge thereof any such holder may have or be
otherwise charged with.

      10E.  Defines Rights of Creditors; Subrogation.  The provisions of this
paragraph 10 are for the purpose of defining the relative rights of the holders
of Senior Indebtedness on the one hand, and the holders of the Subordinated
Notes on the other hand, and nothing herein shall impair, as between the Company
and the holders of the Subordinated Notes, the obligation of the Company, which
is unconditional and absolute, to pay to the holders thereof the principal
thereof and Yield-Maintenance Amount or Adjusted Yield-Maintenance Amount, if
any, and interest thereon in accordance with their terms and the provisions
hereof, nor shall anything herein prevent the holders of the Subordinated Notes
from exercising all remedies otherwise permitted by applicable law or hereunder
upon default hereunder or under the Subordinated Notes (including the right to
demand payment and sue for performance hereof and of the Subordinated Notes and
to accelerate the maturity thereof as provided in paragraph 7 hereof), subject
to the rights of holders of Senior Indebtedness under this paragraph 10,
provided, no holder of a Subordinated Note and no agent or representative
--------
thereof shall exercise any remedies against, or attempt to foreclose upon,
garnish, sequester or execute upon, any property known to it as constituting
collateral for the Senior Indebtedness (other than to file or record any
judgment liens it may have obtained against such collateral) during any period
in which the holders of the Senior Indebtedness have commenced and are pursuing
with reasonable diligence a judicial proceeding to obtain a judgment against the
Company in respect of the Senior Indebtedness or to effect a sale of the
collateral for the Senior Indebtedness or non-judicial remedies to effect a sale
of the collateral for the Senior Indebtedness. Upon payment in full of the
Senior Indebtedness, the holders of the Subordinated Notes shall, to the extent
of any payments or distributions paid or delivered to the holders of the Senior
Indebtedness or otherwise applied to the Senior Indebtedness pursuant to the
provisions of this paragraph 10, be subrogated to the rights of the holders of
the Senior Indebtedness to receive payments or distributions of assets of the
Company made on Senior Indebtedness (and any security therefor) until the
Subordinated Obligations shall be paid in full (and, for this purpose, no such
payments or distributions paid or delivered to the holders of the Senior
Indebtedness or otherwise applied to the Senior Indebtedness shall be deemed to
have discharged the Subordinated Obligations), and, for the purposes of such
subrogation, no payments to the holders of Senior Indebtedness of any cash,
assets, stock, or obligations to which the holders of the Subordinated Notes
would be entitled except for the provisions of this paragraph 10 shall, as
between the Company, its creditors (other than the holders of the Senior
Indebtedness), and the holders of the Subordinated Notes, be deemed to be a
payment by the Company to or on account of Senior Indebtedness.  The fact that
failure to make any payment on account of the Subordinated Obligations is caused
by reason of the operation of any provision of this paragraph 10 shall not be
construed as preventing the occurrence of an Event of Default.

      10F.  Payments on Senior Indebtedness.  In the event that any holder of
a Subordinated Note determines in good faith that evidence is required with
respect to the right of any holder of Senior Indebtedness to participate in any
payment or distribution pursuant to this paragraph 10 or the amount of such
participation, such holder of a Subordinated Note may request such Person to
furnish evidence to the reasonable satisfaction of such holder of a Subordinated
Note as to the

                                       31
<PAGE>

amount of Senior Indebtedness held by such Person, the extent to which such
Person is entitled to participate in such payment or distribution and any other
facts pertinent to the rights of such Person under this paragraph 10, and if
such evidence is not furnished such holder of a Subordinated Note may defer any
payment to such Person pending judicial determination as to the right of such
Person to receive such payment; provided that, upon the written request of such
Person to such holder, such payment shall be made to the court having
jurisdiction over such judicial determination or to another Person mutually
satisfactory to such Person and such holder, as escrowee, to be held and
invested pending such judicial determination in accordance with such
instructions as shall be mutually satisfactory to such Person and such holder
and upon such judicial determination becoming final and nonappealable to be
distributed in accordance therewith to the Person entitled thereto.

      10G.  Notice Upon Acceleration. If payment of the Subordinated Notes is
accelerated because of an Event of Default, the Company will promptly notify the
Senior Indebtedness Representative of such acceleration. The Company may not pay
the Subordinated Notes until ten Business Days after the Senior Indebtedness
Representative receives notice of such acceleration from the Company or any
holder of any Subordinated Notes and, after that ten business day period, may
pay the Subordinated Notes only if the provisions of this paragraph 10 do not
prohibit such payment at that time.

      10H.  Reinstatement. To the extent any payment of or distribution in
respect of the Senior Indebtedness (whether by or on behalf of the Company, as
proceeds of security or enforcement of any right of set off or otherwise) is
declared to be fraudulent or preferential, set aside or required to be paid to
any receiver, trustee in bankruptcy, liquidating trustee, agent or other similar
person under any bankruptcy, insolvency, receivership, fraudulent conveyance or
similar law, then if such payment or distribution is recovered by, or paid over
to, such receiver, trustee in bankruptcy, liquidating trustee, agent or other
similar person, the Senior Indebtedness or part thereof originally intended to
be satisfied shall be deemed to be reinstated and outstanding as if such payment
has not occurred and the provisions of this paragraph 10 shall continue to be
applicable in respect of said reinstated Senior Indebtedness.

      10I.  No Waiver. Any renewal or extension of the time of payment of any
Senior Indebtedness or the exercise by the holders of Senior Indebtedness of any
of their rights under any instrument creating or evidencing Senior Indebtedness,
including, without limitation, the waiver of default thereunder, may be made or
done all without notice to or assent from the holders of the Subordinated Notes
and shall not affect the provisions or efficacy of this paragraph 10. No
compromise, alteration, amendment, modification, extension, renewal or other
change of, or waiver, consent or other action in respect of, any liability or
obligation under or in respect of, or of any of the terms, covenants or
conditions of any agreement, indenture or other instrument under which any
Senior Indebtedness is outstanding or of such Senior Indebtedness, shall in any
way alter or affect any of the provisions of this paragraph 10 or of the
Subordinated Notes relating to the subordination thereof. The foregoing
provisions are not intended to permit a change to the definition of "Senior
Indebtedness" contained in this Agreement.

                                       32
<PAGE>

      10J.  Amendments. No amendment of this paragraph 10, or the definitions
used in this paragraph 10, or any amendment of paragraph 4A of this Agreement
which would have the effect of accelerating the date for, or increasing the
amount of, any scheduled prepayment of principal of the Subordinated Notes, or
of any section that would have the effect of modifying this paragraph 10, or the
definitions used in this paragraph 10, or so amending paragraph 4A, shall be
made without the prior written consent of the Senior Indebtedness
Representative.

      11.   DEFINITIONS; ACCOUNTING MATTERS.  For the purpose of this Agreement,
the terms defined in paragraphs 11A and 11B (or within the text of any other
paragraph) shall have the respective meanings specified therein and all
accounting matters shall be subject to determination as provided in paragraph
11C.

      11A.  Yield-Maintenance Terms.

            "Adjusted Discounted Value" shall mean with respect to the Called
Principal of any Subordinated Note, the amount obtained by discounting all
Remaining Scheduled Payments with respect to such Called Principal from their
respective scheduled due dates to the Settlement Date with respect to such
Called Principal, in accordance with accepted financial practice and at a
discount factor (as converted to reflect the same periodic basis on which
interest on the Subordinated Notes is payable, if interest on the Subordinated
Notes is payable other than on a semi-annual basis) equal to the Reinvestment
Yield with respect to such Called Principal plus 1.00%.

            "Adjusted Yield-Maintenance Amount" shall mean, with respect to any
Subordinated Note, an amount equal to the excess, if any, of the Adjusted
Discounted Value of the Called Principal of such Subordinated Note over the sum
of (i) such Called Principal plus (ii) interest accrued thereon as of (including
interest due on) the Settlement Date with respect to such Called Principal.  The
Adjusted Yield-Maintenance Amount shall in no event be less than zero.

            "Called Principal" shall mean, with respect to any Subordinated
Note, the principal of such Subordinated Note that is to be prepaid pursuant to
paragraph 4B or paragraph 4E or is declared to be or becomes immediately due and
payable pursuant to paragraph 7A, as the context requires.

            "Discounted Value" shall mean, with respect to the Called Principal
of any Subordinated Note, the amount obtained by discounting all Remaining
Scheduled Payments with respect to such Called Principal from their respective
scheduled due dates to the Settlement Date with respect to such Called
Principal, in accordance with accepted financial practice and at a discount
factor (as converted to reflect the same periodic basis on which interest on the
Subordinated Notes is payable, if interest on the Subordinated Notes is payable
other than on a semi-annual basis) equal to the Reinvestment Yield with respect
to such Called Principal.

            "Reinvestment Yield" shall mean, with respect to the Called
Principal of any Subordinated Note, 1.50% over the yield to maturity implied by
(i) the yields reported, as of 10:00

                                       33
<PAGE>

a.m. (New York City time) on the Business Day next preceding the Settlement Date
with respect to such Called Principal, on the display designated as "Page 678"
on the Bridge Telerate Services (Telerate) (or such other display as may replace
Page 678 on the Bridge Telerate Services (Telerate)) for actively traded U.S.
Treasury securities having a maturity equal to the Remaining Average Life of
such Called Principal as of such Settlement Date, or if such yields shall not be
reported as of such time or the yields reported as of such time shall not be
ascertainable, (ii) the Treasury Constant Maturity Series yields reported, for
the latest day for which such yields shall have been so reported as of the
Business Day next preceding the Settlement Date with respect to such Called
Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable
successor publication) for actively traded U.S. Treasury securities having a
constant maturity equal to the Remaining Average Life of such Called Principal
as of such Settlement Date. Such implied yield shall be determined, if
necessary, by (a) converting U.S. Treasury bill quotations to bond-equivalent
yields in accordance with accepted financial practice and (b) interpolating
linearly between yields reported for various maturities. The Reinvestment Yield
will be rounded to that number of decimal places as appears in the coupon for
the Subordinated Notes.

          "Remaining Average Life" shall mean, with respect to the Called
Principal of any Subordinated Note, the number of years (calculated to the
nearest one-twelfth year) obtained by dividing (i) such Called Principal into
(ii) the sum of the products obtained by multiplying (a) each Remaining
Scheduled Payment of such Called Principal (but not of interest thereon) by (b)
the number of years (calculated to the nearest one-twelfth year) which will
elapse between the Settlement Date with respect to such Called Principal and the
scheduled due date of such Remaining Scheduled Payment.

          "Remaining Scheduled Payments" shall mean, with respect to the Called
Principal of any Subordinated Note, all payments of such Called Principal and
interest thereon that would be due on or after the Settlement Date with respect
to such Called Principal if no payment of such Called Principal were made prior
to its scheduled due date.

          "Settlement Date" shall mean, with respect to the Called Principal of
any Subordinated Note, the date on which such Called Principal is to be prepaid
pursuant to paragraph 4B or paragraph 4E or is declared to be or becomes
immediately due and payable pursuant to paragraph 7A, as the context requires.

          "Yield-Maintenance Amount" shall mean, with respect to any
Subordinated Note, an amount equal to the excess, if any, of the Discounted
Value of the Called Principal of such Subordinated Note over the sum of (i) such
Called Principal plus (ii) interest accrued thereon as of (including interest
due on) the Settlement Date with respect to such Called Principal.  The Yield-
Maintenance Amount shall in no event be less than zero.

                                       34
<PAGE>

      11B.  Other Terms.

            "Acquisition" means any transaction, or any series of related
transactions, by which the Company or any of its Subsidiaries (i) acquires all
or substantially all of the assets of any Person, or division thereof, whether
through purchase of assets, merger or otherwise or (ii) directly or indirectly
acquires all of the securities of or outstanding ownership interests or control
of any Person.

            "Add-Back Adjustments" shall mean the pro forma adjustments of the
types referred to in 17 CFR 210.11-02(b)(6).

            "Affiliate" of any Person shall mean (i) any other Person directly
or indirectly controlling, controlled by, or under direct or indirect common
control with, such first Person, and (ii) with respect to any Purchaser, any
investment fund or vehicle for which such Purchaser or any Affiliate of such
Purchaser acts as investment advisor or portfolio manager. A Person shall be
deemed to control a corporation or other entity if (a) such Person possesses,
directly or indirectly, the power to direct or cause the direction of the
management and policies of such corporation or entity, whether through the
ownership of voting securities, by contract or otherwise, or (b) if such Person
owns, directly or indirectly, 10% or more of the total combined voting power of
all voting securities of such corporation or entity.

            "Bankruptcy Code" shall mean the Bankruptcy Reform Act of 1978, as
codified under Title 11 of the United States Code, and the Bankruptcy Rules
promulgated thereunder, as the same may be in effect from time to time.

            "Bankruptcy Law" shall have the meaning specified in clause (viii)
of paragraph 7A.

            "Business Day" shall mean any day other than a Saturday, a Sunday or
a day on which commercial banks in Houston, Texas or New York City are required
or authorized to be closed.

            "Capitalized Lease" shall mean any lease the obligations of the
lessee under which constitute Capitalized Lease Obligations.

            "Capitalized Lease Obligation" shall mean any rental obligation
which, under generally accepted accounting principles, would be required to be
capitalized on the books of the Company or any Subsidiary, taken at the amount
thereof accounted for as indebtedness (net of interest expense) in accordance
with such principles.

            "Change of Control" shall mean (a) occupation of a majority of the
seats (other than vacant seats) on the board of directors of the Company by
Persons who were neither (i) nominated by the board of directors of the Company
nor (ii) appointed by directors so nominated; or (b) the acquisition of direct
or indirect Control of the Company by any Person or any group other than a

                                       35
<PAGE>

group containing only one or more of the shareholders of the Company listed on
Schedule 11B(1) hereto.

          "closing" or "date of closing" shall have the meaning given in
paragraph 2 hereof.

          "Code" shall mean the Internal Revenue Code of 1986, as amended.

          "Consolidated Net Earnings" of any Person for any period shall mean
the net income (or loss) of such Person and its Subsidiaries for such period,
excluding (i) any extraordinary items, and (ii) any equity interest of such
Person in the unremitted earnings of any Person which is not a Subsidiary of
such Person, as determined on a consolidated basis in accordance with generally
accepted accounting principles.

          "Consolidated Total Assets" shall mean as of any date the total assets
of the Company and its Subsidiaries on such date as determined on a consolidated
basis in accordance with generally accepted accounting principles.

          "Control" shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or
otherwise.  "Controlling" and "Controlled" shall have meanings correlative
thereto.

          "Default" shall mean any of the events specified in paragraph 7A,
whether or not any requirement in connection with such event for the giving of
notice, or the lapse of time, or the happening of any further condition, event
or act for such event to become an Event of Default has been satisfied.

          "Default Rate" shall mean a rate per annum from time to time equal to
the lesser of (i) the greater of (a) 14.00%, or (b) 2.00% over the rate of
interest publicly announced by The Bank of New York from time to time in New
York City as its Prime Rate or (ii) the maximum rate permitted by applicable
law.

          "EBITDA" shall mean, for any period, the sum of:

               (i)  the Consolidated Net Earnings of the Company for such
     period, plus (to the extent deducted in determining Consolidated Net
     Earnings of the Company for such period) the aggregate amount of federal,
     state and local income and franchise taxes, interest expense, depreciation
     expense and amortization expense for such period; and

               (ii) to the extent not included in determining the amount in
     clause (i), above, for such period, Pro Forma Operating Income.

                                       36
<PAGE>

          "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended.

          "ERISA Affiliate" shall mean any corporation which is a member of the
same controlled group of corporations as the Company within the meaning of
section 414(b) of the Code, or any trade or business which is under common
control with the Company within the meaning of section 414(c) of the Code.

          "Event of Default" shall mean any of the events specified in paragraph
7A, provided that there has been satisfied any requirement in connection with
such event for the giving of notice, or the lapse of time, or the happening of
any further condition, event or act.

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

          "Existing Credit Agreement" shall mean that certain Amended and
Restated Credit Agreement, dated February 9, 2000, among the Company as
borrower, the Subsidiaries of the Company named therein as guarantors, The Chase
Manhattan Bank f/k/a Chase Bank of Texas, National Association, as
Administrative Agent, Bankers Trust Company as Syndication Agent, First Union
National Bank as Documentation Agent, and the co-agents and lenders named
therein, as said document may be amended, restated, renewed, modified or
extended from time to time.

          "Funded Debt" shall mean, without duplication of amounts, all
Indebtedness of the Company and its Subsidiaries for borrowed money, all
Capitalized Lease Obligations of the Company or its Subsidiaries, the aggregate
LC Exposure and all Indebtedness of the Company or its Subsidiaries evidenced by
any Guarantee of Indebtedness, other than the Guarantee of the Indebtedness of
the Company and its Subsidiaries which Indebtedness is otherwise permitted
hereunder, determined on a consolidated basis.

          "Guarantee" of or by any Person (the "guarantor") shall mean any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.  The
amount of any Guarantee shall be equal to the outstanding principal amount of
the obligation guaranteed or such lesser amount to which the maximum exposure of
the guarantor shall have been specifically limited.

                                       37
<PAGE>

          "Guarantor" shall mean each Material Subsidiary of the Company in
existence as of the date of closing and each other Person which may from time to
time execute a Guaranty Agreement.

          "Guaranty Agreement" and "Guaranty Agreements" shall have the meaning
given in paragraph 3A(ii) hereof.

          "Hedging Agreement" means any foreign currency exchange agreement,
commodity price protection agreement or other currency exchange rate or
commodity price hedging arrangement, or any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement or similar interest
rate hedging agreement.

          "including" shall mean, unless the context clearly requires otherwise,
"including without limitation", whether or not so stated.

          "Indebtedness" of any Person shall mean, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (iii) all
obligations of such Person upon which interest charges are customarily paid,
(iv) all obligations of such Person under conditional sale or other title
retention agreements relating to property acquired by such Person (excluding
accounts payable and accrued liabilities incurred in the ordinary course of
business), (v) all obligations of such Person in respect of the deferred
purchase price of property or services (excluding accounts payable and accrued
liabilities incurred in the ordinary course of business, including retainages
and post-closing adjustments), (vi) all Indebtedness of others secured by any
Lien on property owned or acquired by such Person, whether or not the
Indebtedness secured thereby has been assumed, (vii) all Guarantees by such
Person of Indebtedness of others, (viii) all Capitalized Lease Obligations of
such Person, (ix) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit, letters of guaranty supporting
Indebtedness and the net amount under any Interest Rate Risk Indebtedness, and
(x) all obligations, contingent or otherwise, of such Person in respect of
bankers' acceptances.  The Indebtedness of any Person shall include the
Indebtedness of any other entity (including any partnership in which such Person
is a general partner) to the extent such Person is liable therefor as a result
of such Person's ownership interest in or other relationship with such entity,
except to the extent the terms of such Indebtedness provide that such Person is
not liable therefor.

          "Insolvency Proceeding" shall mean (i) any case, action, or proceeding
before any court or other governmental authority having jurisdiction over the
applicable Person or its assets relating to bankruptcy, reorganization,
insolvency, liquidation, receivership, dissolution, winding-up, or relief of
debtors, or (ii) any general assignment for the benefit of creditors,
composition, marshaling of assets for creditors, or other similar arrangement in
respect of its creditors generally or any substantial portion of its creditors;
in each case whether undertaken under U.S. Federal (including the Bankruptcy
Code), State, or foreign law.

                                       38
<PAGE>

          "Interest Rate Risk Agreement" shall mean the program, and all
documents related thereto, for the hedging of interest rate risk provided for in
any interest rate swap agreement, interest rate cap agreement, interest rate
collar agreement or similar arrangement entered into by the Company or any of
its Subsidiaries for the purpose of reducing its exposure to interest rate
fluctuations in connection with Funded Debt of the Company or any of its
Subsidiaries and not for speculative purposes.

          "Interest Rate Risk Indebtedness" shall mean all obligations and
Indebtedness of the Company or any of its Subsidiaries with respect to any
program for the hedging of interest rate risk provided for in any Interest Rate
Risk Agreement.

          "LC Disbursement" shall mean a payment made by the issuer of a letter
of credit issued for the account of the Company or any Subsidiary pursuant to
such letter of credit.

          "LC Exposure" shall mean, at any time, the sum of (i) the aggregate
undrawn amount of all outstanding letters of credit issued for the account of
the Company or any Subsidiary at such time plus (ii) the aggregate amount of all
LC Disbursements that have not yet been reimbursed by or on behalf of the
Company or its Subsidiaries at such time.

          "Lien" shall mean, with respect to any asset, (i) any mortgage, deed
of trust, lien, pledge, hypothecation, encumbrance, charge or security interest
in, on or of such asset, (ii) the interest of a vendor or lessor under any
conditional sale agreement, Capitalized Lease or title retention agreement
relating to such asset and (iii) in the case of securities, any purchase option,
call or similar right of a third party with respect to such securities.

          "Maintenance Capital Expenditure" of any Person for any period shall
mean the actual depreciation expense required to be classified and accounted for
as depreciation expense on a consolidated income statement of such Person for
such period under generally accepted accounting principles.

          "Material Adverse Effect" shall mean a material adverse effect on (i)
the business, assets, operations, prospects, or condition, financial or
otherwise, of the Company and its Subsidiaries taken as a whole, (ii) the
ability of the Company and its Subsidiaries taken as a whole, to perform any of
its obligations under this Agreement, the Subordinated Notes or any Guaranty
Agreement or (iii) the material rights of or benefits available to the holders
of the Subordinated Notes under this Agreement, the Subordinated Notes or any
Guaranty Agreement to enforce collection of the obligations due under this
Agreement, the Subordinated Notes or any Guaranty Agreement.

          "Material Subsidiary" shall mean (i) any Significant Subsidiary, or
(ii) any Subsidiary which is liable under a Guarantee with respect to any Senior
Funded Debt.

                                       39
<PAGE>

          "Maximum Senior Debt Leverage Ratio" shall mean 2.25 to 1.00;
provided, however, if as of any date upon which compliance with the provisions
of paragraph 6A(2) hereof is to be determined the Company is a party to a
Principal Bank Lending Agreement which requires the Company to maintain a
maximum ratio of the outstanding amount of all Senior Funded Debt to EBITDA for
the four consecutive fiscal quarters ending on such date of greater than 2.25 to
1.00 as of such date, then the "Maximum Senior Debt Leverage Ratio" shall mean
the maximum ratio of the outstanding amount of all Senior Funded Debt to EBITDA
for the four consecutive fiscal quarters ending on such date which the Company
is required to maintain under the Principal Bank Lending Agreement as of such
date, but in no event shall the Maximum Senior Debt Leverage Ratio as of any
date be greater than 2.50 to 1.00.

          "Memorandum" shall mean the Company's "Private Placement Memorandum,"
dated September 2000, relating to the Subordinated Notes, provided by or on
behalf of the Company to the Purchasers.

          "Multiemployer Plan" shall mean any Plan which is a "multiemployer
plan" (as such term is defined in section 4001(a)(3) of ERISA).

          "Net Proceeds of Capital Stock" shall mean, with respect to any
period, cash proceeds (net of all costs and out-of-pocket expenses in connection
therewith, including, without limitation, placement, underwriting and brokerage
fees and expenses), received by the Company from the sale of its capital stock
(other than Redeemable capital stock).

          "Non-Payment Blockage Period" shall mean, with respect to any Non-
Payment Default, the period from and including the date of receipt by the
holders of the Subordinated Notes of a Non-Payment Default Notice relating
thereto until the first to occur of (a) the date upon which the Senior
Indebtedness has been paid in full, (b) the 179th day after receipt of such Non-
Payment Default Notice, (c) the date on which the Non-Payment Default which is
the subject of such Non-Payment Default Notice has been waived in writing by the
applicable holder or holders of the Senior Indebtedness or an agent or
representative on their behalf, cured, or ceased to exist, or (d) the date upon
which the Person(s) giving such Non-Payment Default Notice notify the holders of
the Subordinated Notes of the termination of such Non-Payment Blockage Period.

          "Non-Payment Default' shall mean the occurrence of any event under any
agreement under which any Senior Indebtedness in an aggregate amount of at least
$1,000,000 is outstanding, not constituting a Payment Default, which gives the
holder of such Senior Indebtedness, or an agent or representative acting on
behalf of such holder, the right to cause the maturity of such Senior
Indebtedness to be accelerated immediately without any further notice (except
such notice as may be required to effect such acceleration) or the expiration of
any applicable grace period.

          "Non-Payment Default Notice" shall mean a written notice from or on
behalf of the Senior Indebtedness Representative that a Non-Payment Default with
respect to at least a majority of the outstanding principal amount of all Senior
Indebtedness then outstanding has occurred and

                                       40
<PAGE>

is continuing which identifies such Non-Payment Default and specifically
designates such notice as a "Non-Payment Default Notice".

          "Officer's Certificate" shall mean a certificate signed in the name of
the Company by its President, one of its Vice Presidents or its Treasurer.

          "Operating Lease" shall mean any lease of real or personal property
which is not a Capitalized Lease.

          "Payment Blockage Period" shall mean, with respect to any Payment
Default or Senior Indebtedness Acceleration, the period from and including the
date of receipt by the holders of the Subordinated Notes of a Payment Default
Notice relating thereto until the first to occur of (a) the date upon which the
Senior Indebtedness has been paid in full, (b) if such Payment Default Notice
relates to a Payment Default, the date on which the Payment Default which is the
subject of such Payment Default Notice has been waived in writing by the
applicable holder or holders of the Senior Indebtedness or an agent or
representative on their behalf, cured or ceased to exist, or if such Payment
Default Notice relates to a Senior Indebtedness Acceleration, the date on which
such acceleration is rescinded, annulled or ceased to exist, or (c) the day upon
which the Person(s) giving such Payment Default Notice notify the holders of the
Subordinated Notes of the termination of such Payment Blockage Period.

          "Payment Default" shall mean a default by the Company in any payment
on the portion of Senior Indebtedness consisting of principal, interest or
premium in an aggregate amount of at least $1,000,000 when the same becomes due
and payable, whether at maturity or at a date fixed for prepayment or by
declaration or acceleration or otherwise.

          "Payment Default Notice" shall mean a written notice from or on behalf
of any holder of any Senior Indebtedness that either (i) a Payment Default with
respect to such Senior Indebtedness has occurred and is continuing, or (ii) a
Senior Indebtedness Acceleration with respect to such Senior Indebtedness has
occurred and is continuing.

          "PBGC" shall mean the Pension Benefit Guaranty Corporation, or any
successor or replacement entity thereto under ERISA.

          "Permitted Businesses" shall mean any business that involves the
production, distribution or sale of ready-mixed concrete (including truck-mixed
concrete) and other cement mixtures; precast concrete products; slag products;
retail sales of concrete products, equipment, tools and accessories; aggregate
production, storage and sales and any logical extension of or business activity
reasonably related to or in furtherance of any of the foregoing.

                                       41
<PAGE>

          "Permitted Encumbrances" shall mean:

          (i)    Liens for taxes (including ad valorem and property taxes) and
     assessments or governmental charges or levies not yet due or which are
     being actively contested in good faith by appropriate proceedings in
     compliance with, or otherwise permitted to be incurred pursuant to,
     paragraph 5H;

          (ii)   Liens existing as of the date hereof specified on Schedule 6B;

          (iii)  other Liens incidental to the conduct of the business
     of the Company and its Subsidiaries or the maintenance, operation,
     construction or ownership of its property and assets (including pledges or
     deposits in connection with workers' compensation and social security
     taxes, assessments and charges, and landlord's, mechanic's and
     materialmen's Liens and survey exceptions or encumbrances, easements or
     reservations, rights-of-way, or zoning restrictions) provided that (A) such
     Liens were not incurred in connection with the incurrence of Indebtedness ,
     and (B) the existence of such Liens does not materially detract from the
     value of such property or assets to the Company or any Subsidiary or
     unreasonably interfere with the ordinary conduct of business;

          (iv)   Liens on property or assets of a Subsidiary to secure
     obligations of such Subsidiary to the Company or another Subsidiary;

          (v)    Liens incurred or deposits made in the ordinary course of
     business to secure (or to obtain letters of credit that secure) the
     performance of tenders, statutory obligations, surety and appeal bonds,
     bids, leases, performance bonds, purchase, construction or sales contracts
     and other similar obligations, in each case not incurred or made in
     connection with the incurrence of Indebtedness;

          (vi)   any Lien renewing, extending or refunding any Lien permitted by
     clause (ii) so long as the principal amount of Indebtedness secured by such
     Lien immediately prior thereto is not increased or the maturity thereof
     reduced, such Indebtedness is permitted to be outstanding hereunder and
     such Lien is not extended to other property;

          (vii)  (A) any right of setoff or banker's lien (whether by common
     law, statute, contract or otherwise) or (B) any other setoff right in favor
     of any other Person arising under common law or statute, in either case not
     relating to Indebtedness; and

          (viii) Liens created by, resulting from or arising in connection with
     any litigation or legal proceeding involving the Company or any Subsidiary,
     excluding any judgment Liens or Liens in the form of attachments in aid of
     execution on a judgment to the extent the aggregate amount of all such
     judgments would cause a Default or an Event of Default to occur in respect
     to paragraph 7A(xiii).

                                       42
<PAGE>

          "Permitted Investments" shall mean:

          (i)    direct obligations of, or obligations the principal of and
     interest on which are unconditionally guaranteed by, the United States of
     America (or by any agency thereof to the extent such obligations are backed
     by the full faith and credit of the United States of America), in each case
     maturing within one year from the date of acquisition thereof;

          (ii)   investments in commercial paper maturing within 270 days from
     the date of acquisition thereof and having, at such date of acquisition,
     the highest credit rating obtainable from Standard & Poor's Ratings
     Services, a division of The McGraw Hill Companies, Inc., or from Moody's
     Investors Service, Inc.; and

          (iii)  investments in certificates of deposit, banker's acceptances
     and time deposits maturing within 180 days from the date of acquisition
     thereof issued or guaranteed by or placed with, and money market deposit
     accounts issued or offered by, any domestic office of any commercial bank
     organized under the laws of the United States of America or any State
     thereof which has a combined capital and surplus and undivided profits of
     not less than $500,000,000.

          "Person" shall mean and include an individual, a partnership, a joint
venture, a corporation, a trust, a limited liability company, an unincorporated
organization and a government or any department or agency thereof.

          "Plan" shall mean any "employee pension benefit plan" (as such term is
defined in section 3 of ERISA) which is or has been established or maintained,
or to which contributions are or have been made, by the Company or any ERISA
Affiliate.

          "Potential Change of Control" shall mean (i) the execution by the
Company or any of its Subsidiaries or Affiliates of any agreement or letter of
intent with respect to any proposed transaction, or event or series of
transactions or events which, individually or in the aggregate, would, if
consummated as therein contemplated, result in a Change in Control, (ii) the
execution by the Company or any of its Subsidiaries of any written agreement
which, when fully performed by the parties thereto, would result in a Change in
Control, or (iii) the making of any written offer by any person (as such term is
used in Section 13(d) and Section 14(d)(2) of the Exchange Act as in effect on
the date of the Closing) or related persons constituting a group (as such term
is used in Rule 13d-5 under the Exchange Act as in effect on the date of the
Closing) to the holders of the common stock of the Company, which offer, if
accepted by the requisite number of holders, would result in a Change in
Control.

          "Principal Bank Lending Agreement" shall mean at any time the
agreement then in effect under which the Company may borrow or has outstanding
Senior Funded Debt used to meet the working capital needs of the Company and its
Subsidiaries.  If at any time there is more than one such agreement in effect,
then the "Principal Bank Lending Agreement" shall mean the one of such

                                       43
<PAGE>

agreements under which the commitment to loan Senior Funded Debt to the Company
or its Subsidiaries is the greatest.

          "Pro Forma Operating Income" shall mean for each Qualified Company
whose Acquisition by the Company occurs during the four consecutive fiscal
quarter period preceding the date as of which EBITDA is being calculated and
with respect to the period beginning four fiscal quarters prior to the
calculation of EBITDA through the date of such Acquisition, the sum of
Consolidated Net Earnings of such Qualified Company for such period, plus (to
the extent deducted in determining Consolidated Net Earnings of such Qualified
Company for such period) the aggregate amount of federal, state and local income
and franchise taxes, interest expense, depreciation expense and amortization
expense for such period, plus or minus, as applicable, Add-Back Adjustments with
respect to such Qualified Company, in the case of each such item equal to the
amount of such item as set forth in the pro forma presentation of the results of
such Acquisition contained in the applicable form filed or to be filed by the
Company with the Securities and Exchange Commission reporting such Acquisition.

          "property" or "properties" shall mean any real or personal property of
any kind, tangible or intangible, choate or inchoate.

          "Proposed Prepayment Date" shall have the meaning given in paragraph
4E(3) hereof.

          "Purchasers" shall have the meaning given in the introductory
paragraph hereof.

          "QPAM Exemption" shall mean Prohibited Transaction Class Exemption 84-
14 issued by the United States Department of Labor.

          "Qualified Company" means any provider of ready-mixed concrete,
concrete products or related products and services to the construction industry.

          "Redeemable" shall mean, with respect to the capital stock of any
Person, each share of such Person's capital stock that, at any time before two
years after the maturity date of the Subordinated Notes, is (i) redeemable,
payable or required to be purchased or otherwise returned or extinguished, or
convertible into or exchanged for any Indebtedness of such Person or any of its
Subsidiaries, (a) at a fixed or determinable date, whether by operation of a
sinking fund or otherwise, (b) at the option of any Person other than such
Person, or (c) upon the occurrence of a condition not solely within the control
of such Person, or (ii) convertible into or exchangeable for any other
Redeemable capital stock of such Person or any of its Subsidiaries.

          "Rentals" shall mean all rental and other obligations paid by the
Company or any Subsidiary as lessee under any Operating Lease.

                                       44
<PAGE>

          "Reorganization Securities" shall mean (i) debt securities that are
issued pursuant to an Insolvency Proceeding the payment of which is subordinate
and junior at least to the extent provided in paragraph 10 of this Agreement to
the payment of all Senior Indebtedness outstanding at the time of the issuance
thereof and to the payment of all debt securities issued in exchange for such
Senior Indebtedness in such Insolvency Proceeding (whether such subordination is
effected by the terms of such securities, an order or decree issued in such
Insolvency Proceeding, by agreement of the holders of the Subordinated Notes or
otherwise), or (ii) equity securities that are issued pursuant to an Insolvency
Proceeding; provided, in either case, that such securities are authorized by an
order or decree made by a court of competent jurisdiction in such Insolvency
Proceeding.

          "Required Holder(s)" shall mean the holder or holders of more than 50%
of the aggregate principal amount of the Subordinated Notes from time to time
outstanding (exclusive of any Subordinated Note then owned by the Company or any
of its Subsidiaries or Affiliates).

          "Responsible Officer" shall mean the chief executive officer, chief
operating officer, chief financial officer or chief accounting officer of the
Company or any other officer of the Company involved principally in its
financial administration or its controllership function.

          "Restricted Payment" shall mean (i) any dividend or other distribution
(whether in cash, securities or other property, except distributions payable in
capital stock which is not Redeemable capital stock) with respect to any shares
of any class of capital stock of or other ownership interests in the Company or
any Subsidiary (other than distributions paid to the Company or any Wholly-Owned
Subsidiary), or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any such
shares of capital stock of the Company or any Subsidiary, any option, warrant or
other right to acquire any such shares of capital stock of or other ownership
interests in the Company or any Subsidiary or any debt of the Company or any
Subsidiary which is subordinated to the Subordinated Obligations, in each case
other than paid to the Company or any Wholly-Owned Subsidiary, and (ii) any
voluntary prepayments of principal of, or any voluntary purchase, redemption,
retirement, acquisition, cancellation or termination prior to the date when due
of, any principal of any Subordinated Debt which is pari passu with the
                                                    ---- -----
Subordinated Obligations; provided Restricted Payment shall not include any
scheduled interest payment made on Subordinated Debt which is otherwise
permitted pursuant to the terms hereof.

          "Scheduled Payment" shall have the meaning given in paragraph 10A.

          "Scheduled Payment Date" shall have the meaning given in paragraph
10A.

          "Securities Act" shall mean the Securities Act of 1933, as amended.

          "Senior Indebtedness" shall mean the principal amount of all Funded
Debt which is not Subordinated Debt, provided that such Funded Debt is permitted
to be outstanding under the provisions of paragraph 6A(2) hereof, together with
any accrued and unpaid interest thereon or

                                       45
<PAGE>

premium with respect thereto. For the purpose of determining whether any Funded
Debt was permitted to be outstanding under the provisions of paragraph 6A(2)
hereof in order to determine whether such Funded Debt constitutes "Senior
Indebtedness" hereunder, but for no other purpose, any Funded Debt with respect
to which the lender thereof relied, at the time such Funded Debt was incurred,
upon a certificate of a Responsible Officer which may be contained in, or be a
part of a Borrowing Request (as said term is defined in the Existing Credit
Agreement) showing that the ratio of (i) the outstanding amount of all Senior
Funded Debt on such date of incurrence, after giving effect to the incurrence of
such Funded Debt, to (ii) EBITDA for the four consecutive fiscal quarters most
recently ended prior to such date of incurrence for which financial statements
were available, was less than or equal to the Maximum Senior Debt Leverage
Ratio, shall be conclusively deemed to be "Senior Indebtedness".

          "Senior Indebtedness Acceleration" shall mean with respect to any
Senior Indebtedness that the holder or holders of such Senior Indebtedness, or
an agent or representative on behalf of such holder or holders, have caused the
maturity of such Senior Indebtedness in an aggregate amount of at least
$1,000,000 to be accelerated.

          "Senior Indebtedness Representative" shall mean (i) initially, The
Chase Manhattan Bank, or (ii) such other Person selected by the holders of a
majority of the Senior Indebtedness to replace the then Senior Indebtedness
Representative, notice of the name of, and address for notices hereunder for
which, has been given to the holders of the Subordinated Notes by the then
Senior Indebtedness Representative being replaced.  The address for notices
hereunder to The Chase Manhattan Bank shall be 712 Main Street, Houston, Texas
77002, Attn: James R. Dolphin, Fax (713) 216-6004 or such other address as the
Senior Indebtedness Representative may specify by notice to holders of the
Subordinated Notes.

          "Senior Funded Debt" shall mean all Funded Debt which is not
Subordinated Debt.

          "Significant Subsidiary" shall mean any Subsidiary the net book value
of whose assets are equal to or greater than 5% of the Consolidated Total Assets
or  whose gross revenues are equal to or greater than 5% of the consolidated
revenues of the Company and its Subsidiaries, in each case measured by the most
recent financial statements delivered under paragraph 5A(i) or 5A(ii) at the
time of determination (or, if no financial statements have yet been delivered
under paragraph 5A(i) or 5A(ii) at the time of determination, the most recent
financial statements referred to in paragraph 8B hereof).

          "Significant Holder" shall mean (i) each Purchaser, so long as such
Purchaser shall hold (or be committed under this Agreement to purchase) any
Subordinated Note, or (ii) any other holder of at least 5% of the aggregate
principal amount of the Subordinated Notes from time to time outstanding.

          "Subordinated Debt" shall mean the Subordinated Notes and any other
Funded Debt of the Company or its Subsidiaries which, by its terms, is
subordinated to the Senior Indebtedness

                                       46
<PAGE>

at least to the extent that the Subordinated Obligations are subordinated to the
Senior Indebtedness under the provisions of paragraph 10 hereof.

            "Subordinated Notes" shall have the meaning given in paragraph 1
hereof.

            "Subordinated Obligations" shall have the meaning given in paragraph
10 hereof.

            "Subsidiary" of any Person shall mean, with respect to any Person
(the "parent") at any date, any corporation, limited liability company,
partnership, association or other entity the accounts of which would be
consolidated with those of the parent in the parent's consolidated financial
statements if such financial statements were prepared in accordance with
generally accepted accounting principles as of such date, as well as any other
corporation, limited liability company, partnership, association or other entity
of which securities or other ownership interests representing more than 50% of
the equity or more than 50% of the ordinary voting power or, in the case of a
partnership, more than 50% of the general partnership interests are, as of such
date, owned, controlled or held by the parent. Unless the context otherwise
clearly requires, any reference to a "Subsidiary" is a reference to a Subsidiary
of the Company.

            "Transfer" shall mean any sale, lease, transfer or other disposition
of any property or asset or interest in any property.

            "Transferee" shall mean any direct or indirect transferee of all or
any part of any Subordinated Note purchased by any Purchaser under this
Agreement.

            "Voting Stock" shall mean, with respect to any corporation, any
shares of stock of such corporation whose holders are entitled under ordinary
circumstances to vote for the election of directors of such corporation
(irrespective of whether at the time stock of any other class or classes shall
have or might have voting power by reason of the happening of any contingency).

            "Wholly-Owned Subsidiary" shall mean any Subsidiary of the Company
all of the outstanding capital stock of every class of which is owned by the
Company or another Wholly-Owned Subsidiary of the Company.

      11C.  Accounting and Legal Principles, Terms and Determinations.  All
references in this Agreement to "generally accepted accounting principles" shall
be deemed to refer to generally accepted accounting principles in effect in the
United States at the time of application thereof. Unless otherwise specified
herein, all accounting terms used herein shall be interpreted, all
determinations with respect to accounting matters hereunder shall be made, and
all unaudited financial statements and certificates and reports as to financial
matters required to be furnished hereunder shall be prepared, in accordance with
generally accepted accounting principles, applied on a basis consistent with the
most recent audited consolidated financial statements of the Company and its
Subsidiaries delivered pursuant to clause (ii) of paragraph 5A or, if no such
statements have been so delivered, the most recent audited financial statements
referred to in clause (i) of paragraph 8B.  Any reference

                                       47
<PAGE>

herein to any specific citation, section or form of law, statute, rule or
regulation shall refer to such new, replacement or analogous citation, section
or form should such citation, section or form be modified, amended or replaced.

      12.   MISCELLANEOUS.

      12A.  Subordinated Note Payments.  The Company agrees that, so long as
any Purchaser shall hold any Subordinated Note, it will make payments of
principal of, interest on and any Yield-Maintenance Amount or Adjusted Yield-
Maintenance Amount payable with respect to such Subordinated Note, which comply
with the terms of this Agreement, by wire transfer of immediately available
funds for credit (not later than 12:00 noon, New York City time, on the date
due) to such Purchaser's account or accounts as specified in the Purchaser
Schedule attached hereto, or such other account or accounts in the United States
as such Purchaser may designate in writing, notwithstanding any contrary
provision herein or in any Subordinated Note with respect to the place of
payment. Each Purchaser agrees that, before disposing of any Subordinated Note,
such Purchaser will make a notation thereon (or on a schedule attached thereto)
of all principal payments previously made thereon and of the date to which
interest thereon has been paid.  The Company agrees to afford the benefits of
this paragraph 12A to any Transferee which shall have made the same agreement as
each Purchaser has made in this paragraph 12A.

      12B.  Expenses.  Whether or not the transactions contemplated hereby
shall be consummated, the Company shall pay, and save each Purchaser and any
Transferee harmless against liability for the payment of, all out-of-pocket
expenses arising in connection with such transactions, including:

            (i)   (a) all stamp and documentary taxes and similar charges, (b)
     costs of obtaining a private placement number from Standard and Poor's
     Ratings Group for the Subordinated Notes and (c) fees and expenses of
     brokers, agents, dealers, investment banks or other intermediaries or
     placement agents, in each case as a result of the execution and delivery of
     this Agreement or the Guaranty Agreement or the issuance of the
     Subordinated Notes;

            (ii)  document production and duplication charges and the reasonable
     fees and expenses of any special counsel engaged by such Purchaser or such
     Transferee in connection with (a) this Agreement, the Guaranty Agreement
     and the transactions contemplated hereby or thereby and (b) any subsequent
     proposed waiver, amendment or modification of, or proposed consent
     requested by the Company under, this Agreement or the Guaranty Agreement,
     whether or not such proposed action shall be effected or granted;

            (iii) the costs and expenses, including attorneys' and financial
     advisory fees, incurred by such Purchaser or such Transferee in enforcing
     (or determining whether or how to enforce) any rights under this Agreement,
     the Subordinated Notes or the Guaranty Agreement or in responding to any
     subpoena or other legal process or informal investigative

                                       48
<PAGE>

     demand issued in connection with this Agreement or the Guaranty Agreement
     or the transactions contemplated hereby or by reason of your or such
     Transferee's having acquired any Subordinated Note, including without
     limitation costs and expenses incurred in any workout, restructuring or
     renegotiation proceeding or bankruptcy case; and

            (iv)  any judgment, liability, claim, order, decree, cost, fee,
     expense, action or obligation resulting from the consummation of the
     transactions contemplated hereby, including the use of the proceeds of the
     Subordinated Notes by the Company.

     The obligations of the Company under this paragraph 12B shall survive the
transfer of any Subordinated Note or portion thereof or interest therein by any
Purchaser or Transferee and the payment of any Subordinated Note.

      12C(1).     Consent to Amendments.  This Agreement may be amended, and the
Company may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, if the Company shall obtain the written consent
to such amendment, action or omission to act, of the Required Holder(s) except
that, without the written consent of the holder or holders of all Subordinated
Notes at the time outstanding, no amendment to this Agreement shall change the
maturity of any Subordinated Note, or change the principal of, or the rate or
time of payment of interest on or any Yield-Maintenance Amount or Adjusted
Yield-Maintenance Amount payable with respect to any Subordinated Note, or
affect the time, amount or allocation of any prepayments, or change the
proportion of the principal amount of the Subordinated Notes required with
respect to any consent, amendment, waiver or declaration.  Each holder of any
Subordinated Note at the time or thereafter outstanding shall be bound by any
consent authorized by this paragraph 12C(1), whether or not such Subordinated
Note shall have been marked to indicate such consent, but any Subordinated Notes
issued thereafter may bear a notation referring to any such consent.  No course
of dealing between the Company and the holder of any Subordinated Note nor any
delay in exercising any rights hereunder or under any Subordinated Note shall
operate as a waiver of any rights of any holder of such Subordinated Note.  As
used herein and in the Subordinated Notes, the term "this Agreement" and
references thereto shall mean this Agreement as it may from time to time be
amended or supplemented.

      12C(2).     Solicitation.  The Company will provide each holder of the
Subordinated Notes (irrespective of the amount of Subordinated Notes then owned
by it) with sufficient information, sufficiently far in advance of the date a
decision is required, to enable such holder to make an informed and considered
decision with respect to any proposed amendment, waiver or consent in respect of
any of the provisions hereof or of the Subordinated Notes.  The Company will
deliver executed or true and correct copies of each amendment, waiver or consent
effected pursuant to the provisions of paragraph 12C(1) to each holder of
outstanding Subordinated Notes promptly following the date on which it is
executed and delivered by, or receives the consent or approval of, the requisite
holders of the Subordinated Notes.

                                       49
<PAGE>

      12C(3).  Payment.  The Company will not directly or indirectly pay or
cause to be paid any remuneration, whether by way of supplemental or additional
interest, fee or otherwise, or grant any security, to any holder of Subordinated
Notes as consideration for or as an inducement to the entering into by any
holder of Subordinated Notes of any waiver or amendment of any of the terms and
provisions hereof unless such remuneration is concurrently paid, or security is
concurrently granted, on the same terms, ratably to each holder of the
Subordinated Notes then outstanding even if such holder did not consent to such
waiver or amendment.

      12D.     Form, Registration, Transfer and Exchange of Subordinated Notes;
Lost Subordinated Notes.  The Subordinated Notes are issuable as registered
notes without coupons in denominations of at least $100,000, except as may be
necessary to (i) reflect any principal amount not evenly divisible by $100,000
or (ii) enable the registration of transfer by a holder of its entire holding of
Subordinated Notes; provided, however, that no such minimum denomination shall
apply to Subordinated Notes issued upon transfer by any holder of the
Subordinated Notes to any Purchaser or any of such Purchaser's Affiliates or to
any other entity or group of Affiliates with respect to which the Subordinated
Notes so issued or transferred shall be managed by a single entity.  The Company
shall keep at its principal office a register in which the Company shall provide
for the registration of Subordinated Notes and of transfers of Subordinated
Notes.  Upon surrender for registration of transfer of any Subordinated Note at
the principal office of the Company, the Company shall, at its expense, execute
and deliver one or more new Subordinated Notes of like tenor and of a like
aggregate principal amount, registered in the name of such transferee or
transferees.  Each Transferee of any Subordinated Note shall be deemed at the
time of the transfer of such Subordinated Note to such Transferee to have made
the representations set forth in paragraph 9.  At the option of the holder of
any Subordinated Note, such Subordinated Note may be exchanged for other
Subordinated Notes of like tenor and of any authorized denominations, of a like
aggregate principal amount, upon surrender of the Subordinated Note to be
exchanged at the principal office of the Company.  Whenever any Subordinated
Notes are so surrendered for exchange, the Company shall, at its expense,
execute and deliver the Subordinated Notes which the holder making the exchange
is entitled to receive.  Every Subordinated Note surrendered for registration of
transfer or exchange shall be duly endorsed, or be accompanied by a written
instrument of transfer duly executed, by the holder of such Subordinated Note or
such holder's attorney duly authorized in writing.  Any Subordinated Note or
Subordinated Notes issued in exchange for any Subordinated Note or upon transfer
thereof shall carry the rights to unpaid interest and interest to accrue which
were carried by the Subordinated Note so exchanged or transferred, so that
neither gain nor loss of interest shall result from any such transfer or
exchange.  Upon receipt of written notice from the holder of any Subordinated
Note of the loss, theft, destruction or mutilation of such Subordinated Note
and, in the case of any such loss, theft or destruction, upon receipt of such
holder's reasonable indemnity agreement (provided that if such holder of such
Subordinated Note is, or is a nominee for or an Affiliate of, an original
Purchaser, or is another holder of a Subordinated Note which is a qualified
institutional buyer (as defined in Securities and Exchange Commission Rule144A),
then such holder's unsecured indemnity agreement shall be satisfactory), or in
the case of any such mutilation upon surrender and cancellation of such
Subordinated Note, the Company will make and

                                       50
<PAGE>

deliver a new Subordinated Note, of like tenor, in lieu of the lost, stolen,
destroyed or mutilated Subordinated Note.

      12E.  Persons Deemed Owners; Participations.  Prior to due presentment
for registration of transfer, the Company may treat the Person in whose name any
Subordinated Note is registered as the owner and holder of such Subordinated
Note for the purpose of receiving payment of principal of, interest on and any
Yield-Maintenance Amount or Adjusted Yield-Maintenance Amount payable with
respect to such Subordinated Note and for all other purposes whatsoever, whether
or not such Subordinated Note shall be overdue, and the Company shall not be
affected by notice to the contrary. Subject to the preceding sentence, the
holder of any Subordinated Note may from time to time grant participations in
such Subordinated Note to any Person on such terms and conditions as may be
determined by such holder in its sole and absolute discretion, provided that any
such participation shall be in a principal amount of at least $100,000.

      12F.  Survival of Representations and Warranties; Entire Agreement.
All representations and warranties contained herein or made in writing by or on
behalf of the Company or any Guarantor in connection herewith shall survive the
execution and delivery of this Agreement,  the Subordinated Notes and the
Guaranty Agreement, the transfer by any Purchaser of any Subordinated Note or
portion thereof or interest therein and the payment of any Subordinated Note,
and may be relied upon by any Transferee, regardless of any investigation made
at any time by or on behalf of any Purchaser or any Transferee.  Subject to the
preceding sentence, this Agreement and, the Subordinated Notes and the Guaranty
Agreement embody the entire agreement and understanding between the Purchasers
and the Company and supersede all prior agreements and understandings relating
to the subject matter hereof.

      12G.  Successors and Assigns.  All covenants and other agreements in
this Agreement contained by or on behalf of any of the parties hereto shall bind
and inure to the benefit of the respective successors and assigns of the parties
hereto (including, without limitation, any Transferee) whether so expressed or
not.

      12H.  Independence of Covenants.  All covenants hereunder shall be
given independent effect so that if a particular action or condition is
prohibited by any one of such covenants, the fact that it would be permitted by
an exception to, or otherwise be in compliance within the limitations of,
another covenant shall not (i) avoid the occurrence of a Default or Event of
Default if such action is taken or such condition exists or (ii) in any way
prejudice an attempt by the holder of any Subordinated Note to prohibit through
equitable action or otherwise the taking of any action by the Company or any
Subsidiary which would result in a Default or Event of Default.

      12I.  Notices.  All written communications provided for hereunder shall
be sent by first class mail or nationwide overnight delivery service (with
charges prepaid) and (i) if to any Purchaser, addressed to such Purchaser at the
address specified for such communications in the Purchaser Schedule attached
hereto, or at such other address as such Purchaser shall have specified to the
Company in writing, (ii) if to any other holder of any Subordinated Note,
addressed to such other

                                       51
<PAGE>

holder at such address as such other holder shall have specified to the Company
in writing or, if any such other holder shall not have so specified an address
to the Company, then addressed to such other holder in care of the last holder
of such Subordinated Note which shall have so specified an address to the
Company, and (iii) if to the Company, addressed to it at 1300 Post Oak Blvd.,
Suite 1220, Houston, Texas 77056, Attention: Chief Financial Officer, or at such
other address as the Company shall have specified to the holder of each
Subordinated Note in writing; provided, however, that any such communication to
the Company may also, at the option of the holder of any Subordinated Note, be
delivered by any other means either to the Company at its address specified
above or to any officer of the Company. Notices under this paragraph 12I will be
deemed given only when actually received.

      12J.  Payments Due on Non-Business Days.  Anything in this Agreement or
the Subordinated Notes to the contrary notwithstanding, any payment of principal
of, Yield-Maintenance Amount or Adjusted Yield-Maintenance Amount with respect
to, or interest on any Subordinated Note that is due on a date other than a
Business Day shall be made on the next succeeding Business Day without including
the additional days elapsed in the computation of the interest payable on such
next succeeding Business Day.

      12K.  Satisfaction Requirement.  If any agreement, certificate or other
writing, or any action taken or to be taken, is by the terms of this Agreement
required to be satisfactory to any Purchaser or to the Required Holder(s), the
determination of such satisfaction shall, except as otherwise expressly provided
herein, be made by such Purchaser or the Required Holder(s), as the case may be,
in the sole and exclusive judgment (exercised in good faith) of the Person or
Persons making such determination.

      12L.  GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF
THE STATE OF NEW YORK (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD
OTHERWISE CAUSE THIS AGREEMENT TO BE CONSTRUED OR ENFORCED IN ACCORDANCE WITH,
OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER
JURISDICTION).

      12M.  SUBMISSION TO JURISDICTION.  ANY LEGAL ACTION OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT OR THE SUBORDINATED NOTES MAY BE BROUGHT IN ANY NEW
YORK STATE COURT SITTING IN NEW YORK CITY OR THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK AND, BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, THE COMPANY HEREBY IRREVOCABLY ACCEPTS, UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS WITH RESPECT TO ANY SUCH ACTION OR
PROCEEDING.  THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS
OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE

                                       52
<PAGE>

MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO
IT AT ITS ADDRESS PROVIDED IN PARAGRAPH 12I, SUCH SERVICE TO BECOME EFFECTIVE
UPON RECEIPT.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER OF A
SUBORDINATED NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY IN ANY OTHER
JURISDICTION.  THE COMPANY HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY
NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR
PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT BROUGHT IN ANY
OF THE AFORESAID COURTS AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO
PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN
ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

      12N.  Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

      12O.  Descriptive Headings; Advice of Counsel; Interpretation. The
descriptive headings of the several paragraphs of this Agreement are inserted
for convenience only and do not constitute a part of this Agreement. Each party
to this Agreement represents to the other parties to this Agreement that such
party has been represented by counsel in connection with this Agreement, the
Subordinated Notes and the Guaranty Agreement, that such party has discussed
this Agreement, the Subordinated Notes and the Guaranty Agreement with its
counsel and that any and all issues with respect to this Agreement, the
Subordinated Notes and the Guaranty Agreement have been resolved as set forth
herein. No provision of this Agreement, the Subordinated Notes or the Guaranty
Agreement shall 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, drafted or dictated
such provision.

      12P.  Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original but all of which together shall
constitute one instrument.

      12Q.  Severalty of Obligations. The sales of Subordinated Notes to the
Purchasers are to be several sales, and the obligations of the Purchasers under
this Agreement are several obligations. Except as provided in paragraph 3J, no
failure by any Purchaser to perform its obligations under this Agreement shall
relieve any other Purchaser or the Company of any of its obligations hereunder,
and no Purchaser shall be responsible for the obligations of, or any action
taken or omitted by, any other Purchaser hereunder.

                                       53
<PAGE>

      12R.  Maximum Interest Payable. The Company, you and any other holders of
the Subordinated Notes specifically intend and agree to limit contractually the
amount of interest payable under this Agreement, the Subordinated Notes, any
Guaranty Agreement and all other instruments and agreements related hereto and
thereto to the maximum amount of interest lawfully permitted to be charged under
applicable law. Therefore, none of the terms of this Agreement, the Subordinated
Notes, any Guaranty Agreement or any instrument pertaining to or relating to
this Agreement or the Subordinated Notes shall ever be construed to create a
contract to pay interest at a rate in excess of the maximum rate permitted to be
charged under applicable law, and neither the Company, any Guarantor nor any
other party liable or to become liable hereunder, under the Subordinated Notes,
any Guaranty Agreement or under any other instruments and agreements related
hereto and thereto shall ever be liable for interest in excess of the amount
determined at such maximum rate, and the provisions of this paragraph 12R shall
control over all other provisions of this Agreement, any Subordinated Notes, any
Guaranty Agreement or any other instrument pertaining to or relating to the
transactions herein contemplated. If any amount of interest taken or received by
any holder of a Subordinated Note shall constitute unearned interest or shall be
in excess of said maximum amount of interest which, under applicable law, could
lawfully have been collected by such holder incident to such transactions, then
such excess shall be deemed to have been the result of a mathematical error by
all parties hereto and shall be refunded promptly by the Person receiving such
amount to the party paying such amount, or, at the option of the recipient,
credited ratably against the unpaid principal amount of the Subordinated Note
held by such holder. All amounts paid or agreed to be paid in connection with
such transactions which would under applicable law be deemed "interest" shall,
to the extent permitted by such applicable law, be amortized, prorated,
allocated and spread throughout the stated term of this Agreement and the
Subordinated Notes. "Applicable law" as used in this paragraph means that law in
effect from time to time which permits the charging and collection of the
highest permissible lawful, nonusurious rate of interest on the transactions
herein contemplated including laws of the State of New York and of the United
Sates of America, and "maximum rate" as used in this paragraph means, with
respect to each of the Subordinated Notes, the maximum lawful, nonusurious rates
of interest (if any) which under applicable law may be charged to the Company
from time to time with respect to such Subordinated Notes.

      12S.  Disclosure to Other Persons; Confidentiality.  For purposes of
this paragraph 12S, "Confidential Information" means information delivered to
the holders of the Subordinated Notes by or on behalf of the Company or any
Subsidiary in connection with the transactions contemplated by or otherwise
pursuant to this Agreement that is proprietary in nature and that was clearly
marked or labeled or otherwise adequately identified when received by such
holders of the Subordinated Notes as being confidential information of the
Company or such Subsidiary, provided that such term does not include information
                            --------
that (a) was publicly known or otherwise known to such holders of the
Subordinated Notes prior to the time of such disclosure, (b) subsequently
becomes publicly known through no act or omission by such holders of the
Subordinated Notes or any person acting on behalf of such holders of the
Subordinated Notes, (c) otherwise becomes known to such holders of the
Subordinated Notes other than through disclosure by or on behalf of the Company
or any Subsidiary or (d) constitutes financial statements delivered to such
holders of the Subordinated Notes under paragraph 5A that are otherwise publicly
made available.  Such holders of the Subordinated Notes

                                       54
<PAGE>

will maintain the confidentiality of such Confidential Information in accordance
with procedures adopted by such holders of the Subordinated Notes in good faith
to protect confidential information of third parties delivered to such holders
of the Subordinated Notes, provided that such holders of the Subordinated Notes,
                           --------
may deliver or disclose Confidential Information to

          (i)     such holder's directors, officers, employees, agents,
     attorneys and affiliates (to the extent such disclosure reasonably relates
     to the administration of the investment represented by the holder's
     Subordinated Notes);

          (ii)    such holder's financial advisors and other professional
     advisors who agree to hold confidential the Confidential Information
     substantially in accordance with the terms of this paragraph 12S;

          (iii)   any other holder of any Subordinated Note;

          (iv)    any institutional investor to which such holders of the
     Subordinated Notes sell or offer to sell such Subordinated Note or any part
     thereof or any participation therein (if such Person has agreed in writing
     prior to receipt of such Confidential Information to be bound by the
     provisions of this paragraph 12S);

          (v)     any Person from which such holder offers to purchase any
     security of the Company (if such Person has agreed in writing prior to its
     receipt of such Confidential Information to be bound by the provisions of
     this paragraph 12S);

          (vi)    any federal or state regulatory authority having jurisdiction
     over such holders of the Subordinated Notes;

          (vii)   the National Association of Insurance Commissioners or any
     similar organization, or any nationally recognized rating agency that
     requires access to information about such holder's investment portfolio; or

          (viii)  any other Person to which such delivery or disclosure may be
     necessary or appropriate (w) to effect compliance with any law, rule,
     regulation or order applicable to such holder, (x) in response to any
     subpoena or other legal process, (y) in connection with any litigation to
     which such holder is a party, or (z) if an Event of Default has occurred
     and is continuing, to the extent any holder may reasonably determine such
     delivery and disclosure to be necessary or appropriate in the enforcement
     or for the protection of the rights and remedies under such holder's
     Subordinated Notes and this Agreement.

On reasonable request by the Company in connection with the delivery to any
holder of a Subordinated Note of information required to be delivered to such
holder under this Agreement or requested by such holder (other than a holder
that is a party to this Agreement or its nominee), such

                                       55
<PAGE>

holder will enter into an agreement with the Company embodying the provisions of
this paragraph 12S.

            [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.
            SIGNATURES ON THE FOLLOWING PAGE.]

                                       56
<PAGE>

     If you are in agreement with the foregoing, please sign the form of
acceptance on the enclosed counterparts of this letter and return the same to
the Company, whereupon this letter shall become a binding agreement among the
Company and the Purchasers.

                              Very truly yours,

                              U.S. CONCRETE, INC.

                              By:  /s/ Michael W. Harlan
                                   -------------------------------
                                   Title: Senior Vice President
                                          ------------------------

The foregoing Agreement is
hereby accepted as of the
date first above written.

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

By:   /s/ Chris Bruce
   -----------------------------------
     Vice President

METROPOLITAN LIFE INSURANCE COMPANY

By:   /s/ Claudia Cromie
   -----------------------------------
   Title:  Director
         -----------------------------

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA

By:   /s/ Diane Hom
   -----------------------------------
   Title:  Director-Private Placements
         -----------------------------

                                       57
<PAGE>

CONNECTICUT GENERAL LIFE INSURANCE COMPANY

By:  CIGNA Investments, Inc. (authorized agent)

     By:        /s/  Debra J. Height
             ------------------------------
          Title:  Managing Director
                ---------------------------

ALLSTATE LIFE INSURANCE COMPANY

By:    /s/ Jerry D. Zinkula
     --------------------------------------
     Name: Jerry D. Zinkula
          ---------------------------------

By:    /s/ Patricia W. Wilson
     --------------------------------------
     Name: Patricia W. Wilson
          ---------------------------------

Authorized Signatories

ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK

By:    /s/ Jerry D. Zinkula
     --------------------------------------
     Name: Jerry D. Zinkula
          ---------------------------------

By:    /s/ Patricia W. Wilson
     --------------------------------------
     Name: Patricia W. Wilson
          ---------------------------------

Authorized Signatories

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

By:     /s/ Carol Robertson, CFA
     ----------------------------------------
     Title: Portfolia Manager - Fixed Income
           ----------------------------------

                                       58
<PAGE>

                               PURCHASER SCHEDULE

                                              Aggregate
                                              Principal
                                              Amount of
                                              Subordinated   Subordinated
                                              Notes to be    Note Denom-
                                              Purchased      ination(s)
                                              ------------   ------------

THE PRUDENTIAL INSURANCE COMPANY
OF AMERICA                                    $25,000,000    $25,000,000

(1)  All payments on account of Subordinated Notes held by such Purchaser shall
     be made by wire transfer of immediately available funds for credit to:

     Account No. 890-0304-391

     The Bank of New York
     New York, New York
     (ABA No.: 021-000-018)

     Each such wire transfer shall set forth the name of the Company, a
     reference to "12.00% Senior Subordinated Notes due November 10, 2010,
     Security No. !INV7261!" PPN 90333L A*3, and the due date and application
     (as among principal, interest and Yield-Maintenance Amount or Adjusted
     Yield-Maintenance Amount) of the payment being made.
<PAGE>

(2)  Address for all notices relating to payments:

     The Prudential Insurance Company
       of America
     c/o Investment Operations Group
     Gateway Center Four, 10th Floor
     100 Mulberry Street
     Newark, New Jersey 07102-4077

     Attention:  Manager

(3)  Address for all other communications and notices:

     The Prudential Insurance Company
       of America
     c/o Prudential Capital Group
     2200 Ross Avenue, Suite 4200E
     Dallas, Texas 75201

     Attention: Managing Director
     Telephone: (214) 720-6200
     Telecopier: (214) 720-6299

(4)  Recipient of telephonic prepayment notices and telephonic notices of a
     Change of Control:

     Manager, Trade Management Group
     Telephone: (973) 367-3141
     Telecopier: (973) 802-4925

(5)  Tax Identification No.:  22-1211670
<PAGE>

                                              Aggregate
                                              Principal
                                              Amount of
                                              Subordinated     Subordinated
                                              Notes to be      Note Denom-
                                              Purchased        ination(s)
                                              ------------     ------------

METROPOLITAN LIFE INSURANCE COMPANY           $20,000,000      $20,000,000

(1)  All payments on account of Subordinated Notes held by such Purchaser shall
     be made by wire transfer of immediately available funds for credit to:

     The Chase Manhattan Bank
     ABA No. 021000021
     Account Name: Metropolitan Life Insurance Company
     Acct. No. 002-2-410591

     With sufficient information to identify the source and application of such
     funds, including a reference to "U.S. Concrete, Inc., 12% Senior
     Subordinated Notes due November 10, 2010, PPN 90333L A*3"

(2)  Address for all communications and notices:

     Metropolitan Life Insurance Company
     334 Madison Avenue
     P.O. Box 633
     Convent Station, NJ 07961

     Attention: Private Placement Unit
     Telecopy No.: (973) 254-3032

(3)  Recipient of telephonic prepayment notices and telephonic notices of a
     Change of Control:

     (973) 254-3373, Director, Private Placement Unit

(4)  Tax Identification No.: 13-5581829
<PAGE>

                                              Aggregate
                                              Principal
                                              Amount of
                                              Subordinated   Subordinated
                                              Notes to be    Note Denom-
                                              Purchased      ination(s)
                                              ------------   ------------

TEACHERS INSURANCE AND ANNUITY
ASSOCIATION OF AMERICA                        $20,000,000    $20,000,000

(1)  All payments on account of Subordinated Notes held by such Purchaser shall
     be made by wire transfer of immediately available funds for credit to:

Account No.    Chase Manhattan Bank
               ABA No. 021-000-021
               Account of: Teachers Insurance and Annuity Association of America
               Account No. 900-9-000200
               For further Credit to the TIAA Account Number: G07040

     Each such wire transfer shall set forth the name of the Company, a
     reference to "12.00% Senior Subordinated Notes due November 10, 2010," PPN
     90333L A*3, and the due date and application (as among principal, interest
     and Yield-Maintenance Amount or Adjusted Yield-Maintenance Amount) of the
     payment being made.
<PAGE>

(2)  Contemporaneous with the above electronic funds transfer, advice setting
     forth (1) the full name, private placement number and interest rate of the
     Subordinated Note, (2) allocation of payment between principal, interest,
     Yield-Maintenance Amount, Adjusted Yield-Maintenance Amount and any special
     payment; and (3) name and address of Bank (or Trustee) from which wire
     transfer was sent, shall be delivered, mailed or faxed to:

     Teachers Insurance and Annuity Association of America
     730 Third Avenue
     New York, New York 10017-3206
     Attention: Securities Accounting Division
     Telephone: (212) 916-6004
     Fax:       (212) 916-6955

(3)  Address for all other communications and notices:

     Teachers Insurance and Annuity Association of America
     730 Third Avenue
     New York, New York 10017-3206
     Attention: Securities Division
     Telephone: (212) 916-6748 (Diane Hom)
                (212) 490-90000 (General Number)
     Fax:       (212) 916-6582 (Team Fax Number)

(4)  Recipient of telephonic prepayment notices and telephonic notices of a
     Change of Control:

     Teachers Insurance and Annuity Association of America
     730 Third Avenue
     New York, New York 10017-3206
     Attention: Securities Division
     Telephone: (212) 916-6748 (Diane Hom)
                (212) 490-90000 (General Number)
     Fax:       (212) 916-6582 (Team Fax Number)

(5)  Tax Identification No.: 13-1624203
<PAGE>

                                              Aggregate
                                              Principal
                                              Amount of
                                              Subordinated    Subordinated
                                              Notes to be     Note Denom-
                                              Purchased       ination(s)
                                              ------------    ------------

CONNECTICUT GENERAL LIFE
  INSURANCE COMPANY                           $15,000,000     $15,000,000

(1)  Subordinated Notes to be registered in the nominee name:

     CIG & Co.

(2)  All payments on account of Subordinated Notes held by such Purchaser shall
     be made by federal funds wire transfer of immediately available funds for
     credit to:

     Chase NYC/CTR/
     BNF=CIGNA Private Placements/AC=9009001802
     ABA# 021000021

     Each such wire transfer shall be accompanied by the following information:

     OBI=U.S. Concrete, Inc.; 12.00% Senior Subordinated Notes due November 10,
     2010; PPN 90333L A*3; due date and application (as among principal, Yield-
     Maintenance Amount, Adjusted Yield-Maintenance Amount and interest of the
     payment being made); contact name and phone.
<PAGE>

(3)  Address for all notices relating to payments:

     CIG & Co.
     c/o CIGNA Investments, Inc.
     Attention: Securities Processing S-309
     900 Cottage Grove Road
     Hartford, CT 06152-2309

     CIG & Co.
     c/o CIGNA Investments, Inc.
     Attention: Private Securities - S307
     Operations Group
     900 Cottage Grove Road
     Hartford, CT 06152-2307
     Fax: 860-726-7203

     with a copy to:

     Chase Manhattan Bank
     Private Placement Servicing
     P.O. Box 1508
     Bowling Green Station
     New York, New York 10081
     Attention: CIGNA Private Placements
     Fax: 212-552-3107/1005

(4)  Address for all other communications and notices:

     CIG & Co.
     c/o CIGNA Investments, Inc.
     Attention: Private Securities Division - S-307
     900 Cottage Grove Road
     Hartford, CT 06152-2307
     Fax: 860-726-7203

(5)  Tax Identification No.: 13-3574027
<PAGE>

                                                  Aggregate
                                                  Principal
                                                  Amount of
                                                  Subordinated   Subordinated
                                                  Notes to be    Note Denom-
                                                  Purchased      inations
                                                  -------------  ------------

ALLSTATE LIFE INSURANCE COMPANY
                                                  $7,000,000     $2,000,000
                                                                 $3,000,000
                                                                 $2,000,000

(1)  All payments by Fedwire transfer of
     immediately available funds, identifying
     the name of the Issuer, the Private
     Placement Number preceded by "DPP" and
     the payment as principal, interest, Yield-
     Maintenance Amount or Adjusted Yield-
     Maintenance Amount in the format as
     follows:

     BBK = Harris Trust and Savings Bank
           ABA #071000288
     BNF = Allstate Life Insurance Company
           Collection Account #168-117-0
     ORG = U.S. Concrete, Inc.
     OBI = DPP - 90333L A*3
           Payment Due Date (MM/DD/YY)
           P_____ (Enter "P" and amount of
           principal being remitted, for
           example, P5000000.00)
           I______(Enter "I" and amount of
           interest being remitted, for
           example, I225000.00)

(2)  All notices of scheduled payments and
     written confirmations of such wire
     transfer to be sent to:

     Allstate Insurance Company
     Investment Operations - Private Placements
     3075 Sanders Road, STE G4A
     Northbrook, Illinois 60062-7127
     Telephone: (847) 402-2769
     Telecopier: (847) 326-5040
<PAGE>

(3)  All financial reports, compliance
     certificates and all other written
     communications, including notice of
     prepayments, to be sent to:

     Allstate Life Insurance Company
     Private Placements Department
     3075 Sanders Road, STE G3A
     Northbrook, Illinois 60062-7127
     Telephone: (847) 402-8922
     Telecopier: (847) 402-3092

(4)  Tax Identification No.:  36-2554642
<PAGE>

                                                  Aggregate
                                                  Principal
                                                  Amount of
                                                  Subordinated   Subordinated
                                                  Notes to be    Note Denom-
                                                  Purchased      ination(s)
                                                  -----------    ---------------

ALLSTATE LIFE INSURANCE COMPANY
OF NEW YORK                                       $3,000,000     $3,000,000

(1)  All payments by Fedwire transfer of
     immediately available funds, identifying
     the name of the Issuer, the Private
     Placement Number preceded by "DPP" and
     the payment as principal, interest, Yield-
     Maintenance Amount or Adjusted Yield-
     Maintenance Amount in the format as
     follows:

     BBK = Harris Trust and Savings Bank
           ABA #071000288
     BNF = Allstate Life Insurance Company
           Collection Account #168-120-4
     ORG = U.S. Concrete, Inc.
     OBI = DPP - 90333L A*3
           Payment Due Date (MM/DD/YY)
           P_____ (Enter "P" and amount of
           principal being remitted, for
           example, P5000000.00)
           I______(Enter "I" and amount of
           interest being remitted, for
           example, I225000.00)

(2)  All notices of scheduled payments and
     written confirmations of such wire
     transfer to be sent to:

     Allstate Insurance Company
     Investment Operations - Private Placements
     3075 Sanders Road, STE G4A
     Northbrook, Illinois 60062-7127
     Telephone: (847) 402-2769
     Telecopier: (847) 326-5040
<PAGE>

(3)  All financial reports, compliance
     certificates and all other written
     communications, including notice of
     prepayments, to be sent to:

     Allstate Insurance Company
     Private Placements Department
     3075 Sanders Road, STE G3A
     Northbrook, Illinois 60062-7127
     Telephone: (847) 402-8922
     Telecopier: (847) 402-3092

(4)  Tax Identification No.:  36-2608394
<PAGE>

                                                  Aggregate
                                                  Principal
                                                  Amount of
                                                  Subordinated   Subordinated
                                                  Notes to be    Note Denom-
                                                  Purchased      ination(s)
                                                  -----------    ---------------

SOUTHERN FARM BUREAU LIFE
INSURANCE COMPANY                                 $5,000,000     $5,000,000

(1)  All payments on account of Subordinated
     Notes held by such Purchaser shall be
     made by wire transfer of immediately
     available funds for credit to:

     State Street Bank and Trust Company
     Boston, MA 02101
     ABA #0110000028

     For further credit to:

     Southern Farm Bureau Life Insurance Company
     DDA #59848127
     Account #EQ83

     Each such wire transfer shall set forth
     the name of the Company, a reference to
     "12.00% Senior Subordinated Notes due
     November 10, 2010, PPN 90333L A*3, and
     the due date and application (as among
     principal, interest and Yield-Maintenance
     Amount or Adjusted Yield-Maintenance
     Amount) of the payment being made.

(2)  Address for all communications and notices:

     Southern Farm Bureau Life Insurance Company
     P.O. Box 78
     Jackson, MS 39205
     Attn: Investment Department

     or by overnight delivery to:

     1401 Livingston Lane
     Jackson, MS 39213
<PAGE>

     Contact Person:

     Carol Robertson, CFA
     Telephone: (601) 981-7422 ext. 1506
     Telecopier: (601) 981-3605

(3)  Tax Identification No.: 64-0283583
<PAGE>

                                                                       EXHIBIT A
                                                                       ---------

                          [FORM OF SUBORDINATED NOTE]

                              U.S. CONCRETE, INC.

             12.00% SENIOR SUBORDINATED NOTE DUE NOVEMBER 10, 2010

No. _____                                                                 [Date]
$________                                                         PPN 90333L A*3

     FOR VALUE RECEIVED, the undersigned, U.S. Concrete, Inc., a corporation
organized and existing under the laws of the State of Delaware (herein called
the "Company"), hereby promises to pay to ____________________________
___________________________, or registered assigns, on November 10, 2010,
_________________________ DOLLARS ($_____________), with interest (computed on
the basis of a 360-day year--30-day month) payable (a) quarterly on the 10th day
of February, May, August and November in each year, commencing with the February
10, May 10, August 10  or November 10 next succeeding the date hereof, until the
principal hereof shall have become due and payable on the unpaid balance hereof
at the rate per annum of 12.00% and (b) on any overdue payment or prepayment of
principal, interest, Yield-Maintenance Amount or Adjusted Yield-Maintenance
Amount payable quarterly as aforesaid (or, at the option of the registered
holder hereof, on demand) at the Default Rate.

     Payments of principal of, interest on and any Yield-Maintenance Amount or
Adjusted Yield-Maintenance Amount payable with respect to this Subordinated Note
are to be made at the main office of The Bank of New York in New York City or at
such other place as the holder hereof shall designate to the Company in writing,
in lawful money of the United States of America.

     This Subordinated Note is one of a series of Senior Subordinated Notes
(herein called the "Subordinated Notes") issued pursuant to a Note Agreement,
dated as of November 10, 2000 (herein called the "Agreement"), among the Company
and the original purchasers of the Subordinated Notes named in the Purchaser
Schedule attached thereto and is entitled to the benefits thereof.

     This Subordinated Note is a registered Subordinated Note and, as provided
in the Agreement, upon surrender of this Subordinated Note for registration of
transfer, duly endorsed, or accompanied by a written instrument of transfer duly
executed, by the registered holder hereof or such holder's attorney duly
authorized in writing, a new Subordinated Note for a like principal amount will
be issued to, and registered in the name of, the transferee. Prior to due
presentment for registration of transfer, the Company may treat the person in
whose name this Subordinated Note is registered as

                                      A-1
<PAGE>

the owner hereof for the purpose of receiving payment and for all other
purposes, and the Company shall not be affected by any notice to the contrary.

     The Company agrees to make required prepayments of principal on the dates
and in the amounts specified in the Agreement.  This Subordinated Note is also
subject to optional prepayment, in whole or from time to time in part, on the
terms specified in the Agreement.

     This Subordinated Note is guaranteed pursuant to one or more Guaranty
Agreements executed by certain guarantors.  Reference is made to such Guaranty
Agreements for a statement concerning the terms and conditions governing such
guarantee of the obligations of the Company hereunder.

     The Company and any and all endorsers, guarantors and sureties severally
waive grace, demand, presentment for payment, notice of dishonor or default,
notice of intent to accelerate, notice of acceleration (to the extent set forth
in the Agreement), protest and diligence in collecting.

     Should any indebtedness represented by this Subordinated Note be collected
at law or in equity, or in bankruptcy or other proceedings, or should this
Subordinated Note be placed in the hands of attorneys for collection , the
Company agrees to pay, in addition to the principal, interest and Yield-
Maintenance Amount, if any, and Adjusted Yield-Maintenance Amount, if any, due
and payable hereon, all costs of collecting or attempting to collect this
Subordinated Note, including attorney's fees and expenses (including those
incurred in connection with any appeal).

     The Company, the purchaser and the registered holder of this Subordinated
Note specifically intend and agree to limit contractually the amount of interest
payable under this Subordinated Note to the maximum amount of interest lawfully
permitted to be charged under applicable law. Therefore, none of the terms of
this Subordinated Note shall ever be construed to create a contract to pay
interest at a rate in excess of the maximum rate permitted to be charged under
applicable law, and neither the Company nor any other party liable or to become
liable hereunder shall ever be liable for interest in excess of the amount
determined at such maximum rate, and the provisions of paragraph 12R of the
Agreement shall control over any contrary provision of this Subordinated Note.

     In case an Event of Default shall occur and be continuing, the principal of
this Subordinated Note may be declared or otherwise become due and payable in
the manner and with the effect provided in the Agreement.

     Capitalized terms used and not otherwise defined in this Subordinated Note
which are defined in the Agreement shall have the meanings as provided in the
Agreement.

     THIS SUBORDINATED NOTE IS INTENDED TO BE PERFORMED IN THE STATE OF NEW YORK
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAW OF SUCH STATE
(EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE THIS
SUBORDINATED NOTE TO

                                      A-2
<PAGE>

BE CONSTRUED OR ENFORCED IN ACCORDANCE WITH THE LAWS OF ANY OTHER JURISDICTION).

                                             U.S. CONCRETE, INC.

                                             By:  ______________________________
                                                  Title:________________________

                                      A-3
<PAGE>

                                                                       EXHIBIT B
                                                                       ---------

                    [FORM OF DISBURSEMENT DIRECTION LETTER]

                  [On Company Letterhead - place on one page]

                                                  [Date]

To:  The Purchasers Listed on Exhibit A
     Attached Hereto

          Re:  12.00% Senior Subordinated Notes due November 10, 2010
               (the "Subordinated Notes")
               --------------------------

Ladies and Gentlemen:

          Reference is made to that certain Note Agreement (the "Note
Agreement"), dated November 10, 2000, between U.S. Concrete, Inc., a Delaware
corporation (the "Company"), and you.  Capitalized terms used herein shall have
the meanings assigned to such terms in the Note Agreement.

          You are hereby irrevocably authorized and directed to disburse the
$95,000,000 purchase price of the Subordinated Notes by wire transfer of
immediately available funds to [bank name and address], ABA #______________, for
credit to the account of the Company, account no. _____________.

          Disbursement when so made shall constitute payment in full of the
purchase price of the Subordinated Notes and shall be without liability of any
kind whatsoever to you.

                                         Very truly yours,

                                         U.S. Concrete, Inc.

                                         By:  __________________________________
                                              Title:____________________________

                                      B-1
<PAGE>

                                   Exhibit A
                                   ---------

The Prudential Insurance Company of America
Metropolitan Life Insurance Company
Teachers Insurance and Annuity Association of America
Connecticut General Life Insurance Company
Allstate Life Insurance Company
Allstate Life Insurance Company of New York
Southern Farm Bureau Life Insurance Company

                                      B-2
<PAGE>

                                                                       EXHIBIT C
                                                                       ---------

                         [FORM OF GUARANTY AGREEMENT]

                              GUARANTY AGREEMENT
                              ------------------

          This Guaranty Agreement (this "Guaranty"), dated as of November 10,
2000, is made by [Name of Guarantor #1], a[n] _________ corporation ("[Name of
Guarantor #1]"), and [Name of Guarantor #2], a[n] _________ corporation ("[Name
of Guarantor #2]"; [Name of Guarantor #1] and [Name of Guarantor #2] are
referred to herein, individually, as a "Guarantor" and, collectively, as the
"Guarantors"), and in favor of each Holder.

                                   RECITALS:

          WHEREAS, U.S. Concrete, Inc., a Delaware corporation (the "Company"),
is the direct or indirect owner of all or a majority of the outstanding capital
stock of each Guarantor; and

          WHEREAS, the Company and the Purchasers named in the Purchaser
Schedule attached thereto (the "Purchasers") have or are about to enter into a
Note Agreement (as such agreement is amended, modified, supplemented or restated
from time to time, the "Note Agreement"), dated as of November 10, 2000, under
which, subject to the terms and conditions thereof, the Purchasers will purchase
$95,000,000 in aggregate principal amount of the Company's 12.00% Senior
Subordinated Notes due November 10, 2010 (as such notes may be amended,
modified, supplemented or restated from time to time, the "Subordinated Notes");
and

          WHEREAS, under the terms of the Note Agreement the Company has agreed
to cause each of its Material Subsidiaries to guaranty the Company's obligations
under the Note Agreement and the Subordinated Notes; and

          WHEREAS, all parties acknowledge that the indebtedness and obligations
contemplated by the Note Agreement are being incurred for and will inure, in
part, to the benefit of the Guarantors; and

          WHEREAS, it is desirable and in the interests of each Guarantor to
execute and deliver this Guaranty.

          NOW THEREFORE, for value received, to satisfy one of the conditions
precedent to the purchase of the Subordinated Notes, to induce the Purchasers to
purchase the Subordinated Notes, to induce any other Holder to accept the
transfer of all or any part of any Subordinated Note and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Guarantors agree as follows:
<PAGE>

     1.   DEFINITIONS.

     1A.  Terms Defined in this Guaranty.  As used in this Guaranty, the
following terms shall have the following meanings:

          "Guarantied Obligations" shall mean all of the indebtedness,
obligations and liabilities existing on the date hereof or arising from time to
time hereafter, whether direct or indirect, joint or several, actual, absolute
or contingent, matured or unmatured, liquidated or unliquidated, secured or
unsecured, arising by contract, operation of law or otherwise, of the Company to
the Holders under or in respect of the Note Agreement or the Subordinated Notes,
including, without limitation, the principal of and interest (including, without
limitation, interest accruing before, during or after any bankruptcy,
insolvency, reorganization, arrangement, readjustment of debt, liquidation or
dissolution proceeding, and, if interest ceases to accrue by operation of law by
reason of any such proceeding, interest which otherwise would have accrued in
the absence of such proceeding) and Yield Maintenance Amount, if any, and
Adjusted Yield Maintenance Amount, if any, on the Subordinated Notes.

          "Holders" and "Holder" shall mean the Purchasers and any other holder
of a Subordinated Note, including, without limitation, any Transferee.

     1B.  Other Definitions.  Terms that are used in this Guaranty and defined
in the Note Agreement and are not otherwise defined in this Guaranty shall have
the meaning ascribed to them in the Note Agreement.

     2.   THE GUARANTY.

     2A.  Guaranty of Payment and Performance of Obligations.  Each Guarantor,
jointly and severally, absolutely, unconditionally and irrevocably guaranties
the full and punctual payment in United States currency when due (whether at
maturity, at a stated prepayment date or earlier by reason of acceleration or
otherwise) and at all times thereafter, and the due and punctual performance, of
all Guarantied Obligations; provided, however, that the liability of any
Guarantor with respect to its guaranty of the Guarantied Obligations shall not
exceed the maximum amount which such Guarantor can guaranty without violating,
or causing this Guaranty or such Guarantor's obligations under this Guaranty to
be void, voidable or otherwise rendered unenforceable under, any fraudulent
conveyance or fraudulent transfer law, including Section 548(a)(2) of the
Bankruptcy Code. Each Guarantor hereby agrees to pay and to indemnify and save
each Holder harmless from and against any damage, loss, cost or expense
(including attorneys' fees) which such Holder may incur or be subject to as a
consequence, direct or indirect, of endeavoring to enforce this Guaranty or to
collect all or any part of the Guarantied Obligations from, or in pursuing any
action against, the Company or any Guarantor or enforcing any rights of any
Holder in any security for the Guarantied Obligations or the liabilities of any
Guarantor hereunder, and any taxes, fees or penalties which may be paid or
payable in connection therewith. This is a continuing guaranty of payment and

                                      C-2
<PAGE>

performance and not of collection. Notwithstanding any provision of this
Guaranty, all covenants, obligations, waivers and agreements of the Guarantors
under this Guaranty shall be joint and several.

          Upon the occurrence and during the continuation of an Event of
Default, any Holder may, at its sole election and without notice, proceed
directly and at once against any Guarantor to seek and enforce performance of,
and to collect and recover, the Guarantied Obligations, or any portion thereof,
without first proceeding against the Company, any other Guarantor, any other
guarantor of the Guarantied Obligations or any other Person, or any security for
the Guarantied Obligations or for the liability of any such other Person or any
Guarantor hereunder. The Holders shall have the exclusive right to determine the
application of payments and credits, if any, from any Guarantor, the Company or
from any other Person on account of the Guarantied Obligations or otherwise.
This Guaranty and all covenants and agreements of each Guarantor contained
herein shall continue in full force and effect and shall not be discharged until
such a time as all of the Guarantied Obligations shall be indefeasibly paid in
full in cash and no Holder shall have any commitment under the Note Agreement.

     2B.  Obligations Unconditional.  The obligations of each Guarantor under
this Guaranty shall be continuing, absolute and unconditional, irrespective of
(i) the invalidity or unenforceability of the Note Agreement, any Subordinated
Note or any provision thereof; (ii) the absence of any attempt by any Holder to
collect the Guarantied Obligations or any portion thereof from the Company, any
other Guarantor, any other guarantor of all or any portion of the Guarantied
Obligations or any other Person or other action to enforce the same; (iii) any
action taken by any Holder that is authorized by this Guaranty; (iv) any failure
by any Holder to acquire, perfect or maintain any security interest or lien in,
or take any steps to preserve its rights to, any security for the Guarantied
Obligations or any portion thereof or for the liability of any Guarantor
hereunder or the liability of any other guarantor of any or all of the
Guarantied Obligations; (v) any defense arising by reason of any disability or
other defense (other than a defense of payment, unless the payment on which such
defense is based was or is subsequently invalidated, declared to be fraudulent
or preferential, otherwise avoided and/or required to be repaid to the Company
or any Guarantor, as the case may be, or the estate of any such party, a
trustee, receiver or any other Person under any bankruptcy law, state or federal
law, common law or equitable cause, in which case there shall be no defense of
payment with respect to such payment) of the Company or any other Person liable
on the Guarantied Obligations or any portion thereof; (vi) a Holder's election,
in any proceeding instituted under Chapter 11 of Title 11 of the Federal
Bankruptcy Code (11 U.S.C. (S)101 et seq.) (the "Bankruptcy Code"), of the
                                  -- ---
application of Section 1111(b)(2) of the Bankruptcy Code; (vii) any borrowing or
grant of a security interest to any Holder by the Company as debtor-in-
possession, or extension of credit, under Section 364 of the Bankruptcy Code;
(viii) the disallowance or avoidance of all or any portion of any Holder's
claim(s) for repayment of the Guarantied Obligations under the Bankruptcy Code
or any similar state law or the avoidance, invalidity or unenforceability of any
Lien securing the Guarantied Obligations or the liability of any Guarantor
hereunder or of any other guarantor of all or any part of the Guarantied
Obligations; (ix) any amendment to, waiver or modification of, or consent,
extension, indulgence or other action or inaction under or in respect of the
Subordinated Notes or the Note Agreement; (x) any change in any provision of any
applicable

                                      C-3
<PAGE>

law or regulation; (xi) any order, judgment, writ, award or decree of any court,
arbitrator or governmental authority, domestic or foreign, binding on or
affecting any Guarantor or the Company or any of their assets; (xii) the charter
or certificate of limited partnership (as the case may be), by-laws or
partnership agreement (as the case may be) of any Guarantor or the Company;
(xiii) any mortgage, indenture, lease, contract, or other agreement (including
without limitation any agreement with stockholders), instrument or undertaking
to which any Guarantor or the Company is a party or which purports to be binding
on or affect any such Person or any of its assets; (xiv) any bankruptcy,
insolvency, readjustment, composition, liquidation or similar proceeding with
respect to the Company, any Guarantor or any other guarantor of all or any
portion of any Guarantied Obligations or any such Persons's property and any
failure by any Holder to file or enforce a claim against the Company or any such
other Person in any such proceeding; (xv) any failure on the part of the Company
for any reason to comply with or perform any of the terms of any other agreement
with any Guarantor; or (xvi) any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a guarantor.

     2C.  Obligations Unimpaired.  Each Holder is authorized, without demand or
notice, which demand and notice are hereby waived, and without discharging or
otherwise affecting the obligations of any Guarantor hereunder (which shall
remain absolute and unconditional notwithstanding any such action or omission to
act), from time to time to (i) renew, extend, accelerate or otherwise change the
time for payment of, or other terms relating to, the Guarantied Obligations or
any portion thereof, or otherwise modify, amend or change the terms of the Note
Agreement or any of the Subordinated Notes; (ii) accept partial payments on the
Guarantied Obligations; (iii) take and hold security for the Guarantied
Obligations or any portion thereof or any other liabilities of the Company, the
obligations of any Guarantor under this Guaranty and the obligations under any
other guaranties and sureties of all or any of the Guarantied Obligations, and
exchange, enforce, waive, release, sell, transfer, assign, abandon, fail to
perfect, subordinate or otherwise deal with any such security; (iv) apply such
security and direct the order or manner of sale thereof as such Holder may
determine in its sole discretion; (v) settle, release, compromise, collect or
otherwise liquidate the Guarantied Obligations or any portion thereof and any
security therefor or guaranty thereof in any manner; (vi) extend additional
loans, credit and financial accommodations to the Company and otherwise create
additional Guarantied Obligations; (vii) waive strict compliance with the terms
of the Note Agreement or the Subordinated Notes and otherwise forbear from
asserting such Holder's rights and remedies thereunder; (viii) take and hold
additional guaranties or sureties and enforce or forbear from enforcing any
guaranty or surety of any other guarantor or surety of the Guarantied
Obligations or any portion thereof or release or otherwise take any action with
respect to any such guarantor or surety; (ix) assign this Guaranty in part or in
whole in connection with any assignment of the Guarantied Obligations or any
portion thereof; (x) exercise or refrain from exercising any rights against the
Company or any Guarantor; and (xi) apply any sums, by whomsoever paid or however
realized, to the payment of the Guarantied Obligations as such Holder in its
sole discretion may determine.

     2D.  Waivers of Guarantor.  Each Guarantor waives for the benefit of each
Holder:

                                      C-4
<PAGE>

     (i)    any right to require any Holder, as a condition of payment or
performance by such Guarantor or otherwise to (a) proceed against the Company,
any other Guarantor or any other guarantor of the Guarantied Obligations or any
other Person, (b) proceed against or exhaust any security given to or held by
any Holder in connection with the Guarantied Obligations or any other guaranty,
or (c) pursue any other remedy available to any Holder whatsoever;

     (ii)   any defense arising by reason of (a) the incapacity, lack of
authority or any disability or other defense of the Company, including, without
limitation, any defense based on or arising out of the lack of validity or the
unenforceability of the Guarantied Obligations or any agreement or instrument
relating thereto, (b) the cessation of the liability of the Company from any
cause other than indefeasible payment in full of the Guarantied Obligations in
cash or (c) any act or omission of any Holder or any other Person which directly
or indirectly, by operation of law or otherwise, results in or aids the
discharge or release of the Company or any security given to or held by any
Holder in connection with the Guarantied Obligations or any other guaranty;

     (iii)  any defense based upon any statute or rule of law which provides
that the obligation of a surety must be neither larger in amount nor in other
respects more burdensome than that of the principal;

     (iv)   any defense based upon any Holder's errors or omissions in the
administration of the Guarantied Obligations;

     (v)    (a) any principles or provisions of law, statutory or otherwise,
which are or might be in conflict with the terms of this Guaranty and any legal
or equitable discharge of such Guarantor's or any other Guarantor's obligations
hereunder, (b) the benefit of any statute of limitations affecting the
Guarantied Obligations or such Guarantor's or any other Guarantor's liability
hereunder or the enforcement hereof, (c) any rights to set-offs, recoupments and
counterclaims, and (d) promptness, diligence and any requirement that any Holder
protect, maintain, secure, perfect or insure any Lien or any property subject
thereto;

     (vi)   notices (a) of nonperformance or dishonor, (b) of acceptance of this
Guaranty by any Holder or by such Guarantor or any other Guarantor; (c) of
default in respect of the Guarantied Obligations or any other guaranty, (d) of
the existence, creation or incurrence of new or additional indebtedness, arising
either from additional loans extended to the Company or otherwise, (e) that the
principal amount, or any portion thereof, and/or any interest or Yield
Maintenance Amount or Adjusted Yield Maintenance Amount on any document or
instrument evidencing all or any part of the Guarantied Obligations is due, (f)
of any and all proceedings to collect from the Company, any Guarantor or any
guarantor of all or any part of the Guarantied Obligations, or from anyone else,
(g) of exchange, sale, surrender or other handling of any security or collateral
given to any Holder to secure payment of the Guarantied Obligations or any
guaranty therefor, (h) of renewal, extension or modification of any of the
Guarantied Obligations, (i) of assignment, sale or other transfer of any
Subordinated Note to a Transferee, (j) of any of the matters referred to in
paragraph 2B and any right to consent to any thereof;

                                      C-5
<PAGE>

     (vii)  acceptance of this Guaranty by any Holder, presentment, demand for
payment or performance and protest and notice of protest with respect to the
Guarantied Obligations or any guaranty with respect thereto; and

     (viii) any defenses or benefits that may be derived from or afforded by
law which limit the liability of or exonerate guarantors or sureties, or which
may conflict with the terms of this Guaranty.

            Each Guarantor agrees that no Holder shall be under any obligation
to marshall any assets in favor of any Guarantor or against or in payment of any
or all of the Guarantied Obligations.

            No Guarantor will exercise any rights which it may have acquired by
way of subrogation under this Guaranty, by any payment made hereunder or
otherwise, or accept any payment on account of such subrogation rights, or any
rights of reimbursement or indemnity or any rights or recourse to any security
for the Guarantied Obligations or this Guaranty unless at the time of such
Guarantor's exercise of any such right there shall have been performed and
indefeasibly paid in full in cash all of the Guarantied Obligations and no
Holder shall have any commitment under the Note Agreement.

     2E.    Revival. Each Guarantor agrees that, if any payment made by the
Company or any other Person is applied to the Guarantied Obligations and is at
any time annulled, set aside, rescinded, invalidated, declared to be fraudulent
or preferential or otherwise required to be refunded or repaid, or the proceeds
of any security are required to be returned by any Holder to the Company, its
estate, trustee, receiver or any other Person, including, without limitation,
any Guarantor, under any bankruptcy law, state or federal law, common law or
equitable cause, then, to the extent of such payment or repayment, such
Guarantor's liability hereunder (and any lien, security interest or other
collateral securing such liability) shall be and remain in full force and
effect, as fully as if such payment had never been made, or, if prior thereto
this Guaranty shall have been canceled or surrendered (and if any lien, security
interest or other collateral securing such Guarantor's liability hereunder shall
have been released or terminated by virtue of such cancellation or surrender),
this Guaranty (and such lien, security interest or other collateral) shall be
reinstated and returned in full force and effect, and such prior cancellation or
surrender shall not diminish, release, discharge, impair or otherwise affect the
obligations of any Guarantor in respect of the amount of such payment (or any
lien, security interest or other collateral securing such obligation).

     2F.    Obligation to Keep Informed. Each Guarantor shall be responsible for
keeping itself informed of the financial condition of the Company and any other
Persons primarily or secondarily liable on the Guarantied Obligations or any
portion thereof, and of all other circumstances bearing upon the risk of
nonpayment of the Guarantied Obligations or any portion thereof, and each
Guarantor agrees that no Holder shall have a duty to advise such Guarantor of
information known to such Holder regarding such condition or any such
circumstance. If any Holder, in its discretion, undertakes at any time or from
time to time to provide any such information to any Guarantor, such Holder shall
not be under any obligation (i) to undertake any investigation, whether or not a
part of its regular business routine, (ii) to disclose any information which
such

                                      C-6
<PAGE>

Holder wishes to maintain confidential, or (iii) to make any other or future
disclosures of such information or any other information to such or any other
Guarantor.

     2G.    Bankruptcy. If any Event of Default specified in clauses (viii),
(ix) or (x) of paragraph 7A of the Note Agreement shall occur and be continuing,
then, subject to the proviso contained in the first sentence of paragraph 2A of
this Guaranty, each Guarantor agrees to immediately pay to the Holders the full
outstanding amount of the Guarantied Obligations without notice.

     2H.    Subordination.  Notwithstanding any provision in this Guaranty, the
obligations of each Guarantor under this Guaranty shall constitute "Subordinated
Obligations" under the Note Agreement and shall be subject to the provisions of
paragraph 10 of the Note Agreement.

     3.     REPRESENTATIONS AND WARRANTIES. Each Guarantor represents, covenants
and warrants as follows:

     3A.    Organization, Power and Authority.

     3A(1). Organization. Each Guarantor is a corporation duly organized and
existing in good standing under the laws of the state of its organization.

     3A(2). Power and Authority. Each Guarantor has all requisite power to
execute, deliver and perform its obligations under this Guaranty. The execution,
delivery and performance of this Guaranty have been duly authorized by all
requisite action and this Guaranty has been duly executed and delivered by
authorized officers of such Guarantor and is a valid obligation of such
Guarantor, legally binding upon and enforceable against such Guarantor in
accordance with its terms, except as such enforceability may be limited by (i)
bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors' rights generally and (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).

     3B.    Conflicting Agreements and Other Matters.  Neither the execution nor
delivery of this Guaranty, nor the offering, issuance and sale of the
Subordinated Notes, nor fulfillment of nor compliance with the terms and
provisions hereof, will conflict with, or result in a breach of the terms,
conditions or provisions of, or constitute a default under, or result in any
violation of, or result in the creation of any Lien upon any of the properties
or assets of such Guarantor or any of its Subsidiaries pursuant to, the charter
or certificate of limited partnership (as the case may be), by-laws or
partnership agreement (as the case may be) of such Guarantor or any of its
Subsidiaries, any award of any arbitrator or any agreement (including any
agreement with stockholders or holders of partnership interests (as the case may
be) of such Guarantor or Persons with direct or indirect ownership interests in
stockholders or holders of partnership interests (as the case may be) of such
Guarantor), instrument, order, judgment, decree, statute, law, rule or
regulation to which such Guarantor or any of its Subsidiaries is subject.
Neither such Guarantor nor any of its Subsidiaries is a party to, or otherwise
subject to any provision contained in, any instrument evidencing any

                                      C-7
<PAGE>

Indebtedness of such Guarantor or such Subsidiary, any agreement relating
thereto or any other contract or agreement (including its charter) which limits
the amount of, or otherwise imposes restrictions on the incurring of,
obligations of such Guarantor of the type to be evidenced by this Guaranty
except as set forth in the agreements listed on Schedule 3B hereto.

     3C.    ERISA. The execution and delivery of this Guaranty will be exempt
from, or will not involve any transaction which is subject to, the prohibitions
of section 406 of ERISA and will not involve any transaction in connection with
which a penalty could be imposed under section 502(i) of ERISA or a tax could be
imposed pursuant to section 4975 of the Code. The representation of each
Guarantor in this paragraph 3C is made in reliance upon and subject to the
accuracy of each Purchaser's representation in paragraph 9B of the Note
Agreement.

     3D.    Governmental Consent. Neither the nature of such Guarantor or of any
Subsidiary of such Guarantor nor any of their respective businesses or
properties, nor any relationship between such Guarantor or any Subsidiary of
such Guarantor and any other Person, nor any circumstance in connection with the
execution, delivery and performance of this Guaranty or the offering, issuance,
sale or delivery of the Subordinated Notes, is such as to require any
authorization, consent, approval, exemption or other action by or notice to or
filing with any court or administrative or governmental body (including, without
limitation, notifications required by the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, but excluding routine filings after the date of
closing with the Securities and Exchange Commission and/or state Blue Sky
authorities). The representation by each Guarantor in this paragraph 3D is made
in reliance upon and subject to the accuracy of each Purchaser's representation
in paragraph 9 of the Note Agreement.

     3E.    Regulatory Status. No Guarantor nor any Subsidiary of any Guarantor
is (i) an "investment company" or a company "controlled" by an "investment
company" within the meaning of the Investment Company Act of 1940, as amended,
(ii) a "holding company" or a "subsidiary company" or an "affiliate" of a
"holding company" or a "subsidiary company" of a "holding company", within the
meaning of the Public Utility Holding Company Act of 1935, as amended, or (iii)
a "public utility" within the meaning of the Federal Power Act, as amended.

     4.     MISCELLANEOUS

     4A.    Successors, Assigns and Participants. This Guaranty shall be binding
upon each Guarantor and its successors and assigns and shall inure to the
benefit of each Holder and its successors, transferees and assigns; all
references herein to a Guarantor shall be deemed to include its successors and
assigns, and all references herein to a Holder shall be deemed to include its
successors and assigns. This Guaranty shall be enforceable by the Holders and
any of a Holder's successors, assigns and participants, and any such successors
and assigns shall have the same rights and benefits with respect to each
Guarantor under this Guaranty as the Holder hereunder.

     4B.    Consent to Amendments.  This Guaranty may be amended, and any
Guarantor may take any action herein prohibited, or omit to perform any act
herein required to be performed by it,

                                      C-8
<PAGE>

if such Guarantor shall obtain the written consent to such amendment, action or
omission to act, of the Required Holder(s) except that, without the written
consent of the holder or holders of all Subordinated Notes at the time
outstanding, (i) no amendment to or waiver of the provisions of this Guaranty
shall change or affect the provisions of this paragraph 4B insofar as such
provisions relate to proportions of the principal amount of the Subordinated
Notes, or the rights of any individual Holder, required with respect to any
consent, (ii) no Guarantor will be released from this Guaranty, and (iii) no
amendment, consent or waiver with respect to paragraph 2A or the definition of
"Guarantied Obligations" (except to add additional obligations of the Company)
shall be effective. Each Holder of any Subordinated Note at the time or
thereafter outstanding shall be bound by any consent authorized by this
paragraph 4B, whether or not the Subordinated Note held by such Holder shall
have been marked to indicate such consent, but any Subordinated Notes issued
thereafter may bear a notation referring to any such consent. No course of
dealing between any Guarantor and any Holder nor any delay in exercising any
rights hereunder or under any Subordinated Note shall operate as a waiver of any
rights of any Holder. As used herein, the term "this Guaranty" and references
thereto shall mean this Guaranty as it may from time to time be amended or
supplemented.

     4C.    Survival of Representations and Warranties; Entire Agreement.  All
representations and warranties contained herein or made in writing by or on
behalf of each Guarantor in connection herewith shall survive the execution and
delivery of this Guaranty, the transfer by any Holder of any Subordinated Note
or portion thereof or interest therein and the payment of any Subordinated Note,
and may be relied upon by any Transferee, regardless of any investigation made
at any time by or on behalf of any Holder or any Transferee.  Subject to the two
preceding sentences, this Guaranty embodies the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior agreements and understandings relating to the
subject matter hereof.

     4D.    Notices.  All written communications provided for hereunder shall be
sent by first class mail or telegraphic notice or nationwide overnight delivery
service (with charges prepaid) or by hand delivery or telecopy and (i) if to a
Holder, addressed as specified for such communications to such Holder under the
Note Agreement, and (ii) if to any Guarantor, addressed to it at the address set
forth for such Guarantor under its signature hereto, or at such other address as
such Guarantor shall have specified to the holder of each Subordinated Note in
writing.  Notices under this paragraph 4D will be deemed given only when
actually received.

     4E.    Opinion of Guarantors' Counsel.  Each Guarantor, by its execution
hereof, hereby requests and authorizes its counsel identified in paragraph 3C of
the Note Agreement to render the opinion referred to in such paragraph 3C.

     4F.    Descriptive Headings.  The descriptive headings of the several
paragraphs of this Guaranty are inserted for convenience only and do not
constitute a part of this Guaranty.  Each Guarantor represents to the Holders
that such Guarantor has been represented by counsel in connection with this
Guaranty, that such Guarantor has discussed this Guaranty with its counsel and

                                      C-9
<PAGE>

that any and all issues with respect to this Guaranty have been resolved as set
forth herein. No provision of this Guaranty shall be construed against or
interpreted to the disadvantage of any Holder by any court or other governmental
or judicial authority by reason of such Holder having or being deemed to have
structured, drafted or dictated such provision.

     4G.    Satisfaction Requirement.  If any agreement, certificate or other
writing, or any action taken or to be taken, is by the terms of this Guaranty
required to be satisfactory to any Holder or the Required Holder(s), the
determination of such satisfaction shall, except as otherwise expressly provided
herein, be made by such Holder or the Required Holder(s), as the case may be, in
the sole and exclusive judgment (exercised in good faith) of the Person or
Persons making such determination.

     4H.    Governing Law.  THIS GUARANTY SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF
THE STATE OF NEW YORK (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD
OTHERWISE CAUSE THIS AGREEMENT TO BE CONSTRUED OR ENFORCED IN ACCORDANCE WITH,
OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER
JURISDICTION).

     4I.    Counterparts. This Guaranty may be executed simultaneously in two or
more counterparts, each of which shall be an original and constitute one and the
same agreement. It shall not be necessary in making proof of this Guaranty to
produce or account for more than one such counterpart.

     4J.    Independence of Covenants.  All covenants hereunder shall be given
independent effect so that if a particular action or condition is prohibited by
any one of such covenants, the fact that it would be permitted by an exception
to, or otherwise be in compliance within the limitations of, another covenant
shall not avoid the occurrence of a Default or an Event of Default if such
action is taken or such condition exists.

     4K.    Binding Guaranty; Release of Guarantor. When this Guaranty is
executed and delivered by a Guarantor, it shall become a binding agreement by
such Guarantor in favor of the Holders. Notwithstanding anything to the contrary
in this Guaranty, the obligations of each Guarantor under this Guaranty are
subject to release of such Guarantor as provided in paragraph 5K(ii) of the Note
Agreement.

     4L.    Severability. Any provision of this Guaranty which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

                                     C-10
<PAGE>

     4M.    SUBMISSION TO JURISDICTION. ANY LEGAL ACTION OR PROCEEDING WITH
RESPECT TO THIS GUARANTY MAY BE BROUGHT IN ANY NEW YORK STATE COURT SITTING IN
NEW YORK CITY OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK AND, BY EXECUTION AND DELIVERY OF THIS GUARANTY, EACH GUARANTOR HEREBY
IRREVOCABLY ACCEPTS, UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS
WITH RESPECT TO ANY SUCH ACTION OR PROCEEDING. EACH GUARANTOR FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT ITS ADDRESS PROVIDED IN
PARAGRAPH 4D, SUCH SERVICE TO BECOME EFFECTIVE UPON RECEIPT. NOTHING HEREIN
SHALL AFFECT THE RIGHT OF ANY HOLDER TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
ANY GUARANTOR IN ANY OTHER JURISDICTION. EACH GUARANTOR HEREBY IRREVOCABLY
WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE
OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION
WITH THIS GUARANTY OR THE OTHER TRANSACTION DOCUMENTS BROUGHT IN ANY OF THE
AFORESAID COURTS AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD
OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

                          [signature pages to follow]

                                     C-11
<PAGE>

          IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly
executed as of the date first above written.

                                                  [NAME OF GUARANTOR #1]

                                                  By:    _______________________
                                                  Title: _______________________

                                                  Address for notices:

                                                  ________________________
                                                  ________________________
                                                  ________________________

                                                  [NAME OF GUARANTOR #2]

                                                  By:    _______________________
                                                  Title: _______________________

                                                  Address for notices:

                                                  ________________________
                                                  ________________________
                                                  ________________________

<PAGE>

                                                                  EXHIBITS D-1&2
                                                                  --------------

              FORM OF OPINION OF COMPANY'S AND GUARANTORS' COUNSEL

                                 See attached.

<PAGE>

                                                                     EXHIBIT D-3
                                                                     -----------

                 FORM OF OPINION OF PURCHASERS' SPECIAL COUNSEL

                                 See attached.<PAGE>

                                                                   EXHIBIT 10.14
                                PROMISSORY NOTE

Date:                        March 2, 2000

Maker:                       Michael W. Harlan

Maker's Mailing Address:     c/o U.S. Concrete, Inc.
                             1300 Post Oak Blvd., Suite 1220
                             Houston, Texas  77056

Payee:                       USC Management Co., L.P.,
                             a Texas limited partnership

Place for Payment:           1300 Post Oak Blvd., Suite 1220
                             Houston, Texas  77056

Principal Amount:            $125,000.00, or such lesser amount as has been
                             advanced by Payee to Maker and is outstanding
                             from time to time.

Terms of Payment:            This is a non-interest bearing promissory note.
                             Principal shall be payable from time to time prior
                             to March 1, 2005 within 10 business days of receipt
                             by Maker of any Net Cash Proceeds (as defined
                             herein), until the principal amount is paid in
                             full. The outstanding principal amount shall be due
                             and payable in full on or before March 1, 2005.

Security for Payment:        This note is secured by any and all cash proceeds
                             received by Maker (net of any broker's fee or other
                             reasonable and customary transaction expenses and
                             of amounts reasonably estimated to be necessary to
                             pay income or capital gains taxes resulting from
                             receipt of such proceeds) during the period
                             beginning March 2, 2000 and ending upon the earlier
                             of payment in full of this note or March 1, 2005
                             from (a) the sale by Maker of all shares of common
                             stock, $.001 par value ("Common Stock"), of U.S.
                             Concrete, Inc., a Delaware corporation ("USC"),
                             acquired by Maker through the exercise of any
                             option to purchase Common Stock and (b) the payment
                             to Maker by USC or Payee of such portion of any
                             bonuses as may be mutually agreed upon by Maker and
                             Payee (any such net cash proceeds described in
                             subparts (a) and (b) shall be referred to herein as
                             "Net Cash Proceeds").

     FOR VALUE RECEIVED, Maker promises to pay to the order of Payee at the
place for payment and according to the terms of payment (in funds available for
immediate use) the principal amount.  All unpaid amounts shall be due by the
final scheduled payment date.
<PAGE>

     If Maker defaults in the payment of this note or in the performance of any
obligation securing or collateral to it, and the default continues after Payee
gives Maker notice of the default and the time within which it must be cured, as
may be required by Payee, then Payee may declare the unpaid balance on this note
immediately due.  Maker and each surety, endorser and guarantor waive all
demands for payment, presentations for payment, notices of intention to
accelerate maturity, notices of acceleration of maturity, protests and notices
of protest, to the extent permitted by law.

     If this note is given to an attorney for collection, or if suit is brought
for collection, or if it is collected through probate, bankruptcy, or other
judicial proceeding, then Maker shall pay Payee all costs of collection,
including reasonable attorney's fees and court costs, in addition to other
amounts due.

     Neither a delay on the part of Payee in the exercise of any power or right
under this note, nor a single or partial exercise of any such power or right,
shall operate as a waiver thereof.  Enforcement by Payee of any of its rights
hereunder shall not constitute an election by it of remedies so as to preclude
the exercise of any other remedy available to it.

     Unless this note is paid at its maturity, or when otherwise due, as herein
provided, any money, securities or property on deposit with, in possession or
under the control of, or held by USC or Payee, for any purpose whatsoever,
including, without limitation, for payment of salary or bonuses to Maker, or in
transit to or from Payee by mail or carrier to the credit or for the account of
Maker, or any of them, may, at the option of Payee, be applied to the payment of
this note or any other debt, liability or obligation, direct or contingent, due
or to become due, by Maker to Payee or USC.

     This note may be prepaid in whole or in part at any time, without penalty.

     THIS NOTE IS DELIVERED AND IS INTENDED TO BE PAID AND PERFORMED IN THE
STATE OF TEXAS, AND THE LAWS OF SUCH STATE SHALL GOVERN THE CONSTRUCTION,
VALIDITY, ENFORCEMENT, AND INTERPRETATION HEREOF.

     All of the covenants, stipulations, promises, and agreements contained in
this note made by or on behalf of Maker shall bind its successors and assigns,
whether so expressed or not; provided, however, that Maker may not, without
prior written consent of the holder hereof, assign any rights, duties, or
obligations under this note.

     Each Maker is responsible for all obligations represented by this note.

     When the context requires, the terms Maker and Payee, and other singular
nouns and pronouns include the plural.

                                    MAKER

                                    /s/ Michael W. Harlan
                                    ---------------------
                                    Michael W. Harlan

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