Document:

exv10w1

 

Exhibit 10.1

This Promissory Note has not been registered under the Securities Act of 1933 and may be sold or
otherwise transferred only if the holder hereof complies with that law and other applicable
securities laws.

PROMISSORY NOTE

	 	 	 
	$33,000,000.00

	 	July 3, 2006
	 

	 	Dallas, Texas

     FOR VALUE RECEIVED, Atlas Investments, Inc., a Nevada corporation (herein referred to as the
“Maker”), hereby promises and agrees to pay to the order of U.S. Concrete, Inc., a Delaware
corporation (the “Holder”), the principal amount of THIRTY-THREE MILLION DOLLARS ($33,000,000),
together with interest on the unpaid principal sum from (and including) the date hereof until (but
excluding) the date on which that unpaid principal sum shall become due and payable (whether on the
Maturity Date (as hereinafter defined) or upon acceleration thereof pursuant to the provisions of
Section 3(b)), at the rate of five percent (5.0%) per annum as hereinafter provided; provided,
however that, notwithstanding the foregoing, if the Closing (as hereinafter defined) under the
Stock Purchase Agreement (as hereinafter defined) does not occur as a result of the failure of a
condition set forth in Section 4.03 of the Stock Purchase Agreement or the failure of the Holder to
obtain the Financing (as defined in the Stock Purchase Agreement), no such interest shall accrue.
Any past due principal and interest owing under this Promissory Note (this “Note”) shall bear
interest from and after the date such obligations first become payable until paid at a per annum
rate equal to the lesser of (i) eighteen percent (18.0%) or (ii) the maximum nonusurious rate
allowed under applicable law (the “Highest Lawful Rate”), which interest shall be payable upon
demand. All interest hereunder shall be calculated on the basis of a 365-day year for the actual
number of days elapsed. References in this Note to the “Stock Purchase Agreement” mean that
certain Stock Purchase Agreement made as of June 27, 2006 by and among the Holder, Atlas Concrete
Inc., an Alberta, Canada corporation (“Atlas”), Wild Rose Holdings Ltd., a Jersey corporation
(“Wild Rose”), Alberta Investments Inc., a Texas corporation of which the Maker is a direct, wholly
owned subsidiary (“Alberta”), Alliance Haulers, Inc., a Texas corporation (“Alliance”), and the
Maker.

	 	1.	 	Payment Obligations.

	 	(a)	 	Principal and Interest. Subject to Section 3(b), the principal
amount of this Note shall be due and payable in full immediately upon the first
to occur of (i) the time of the Closing (as defined in the Stock Purchase
Agreement) or (ii) 9:00 A.M., Central Time, on July 5, 2006 (the date of the
first such time to occur is referred to herein as the “Maturity Date”).
Interest on the unpaid principal amount of this Note shall accrue and shall be
payable as provided above. Payments of principal and interest shall be made in
lawful money of the United States of America, by wire transfer of immediately
available funds to such bank account of the Holder as the Holder may designate
from time to time by written notice to the Maker.
Any check, draft or other instrument given in payment of all or any portion
of this Note may be accepted by the Holder and handled in collection in a
customary manner, but the same shall not constitute 

 

	 	 	 	payment hereunder or
diminish any rights of the Holder except to the extent that actual cash
proceeds of such instruments are unconditionally received by the Holder.
Any payment (excluding any prepayment) on or in respect of this Note shall
be applied first to accrued but unpaid interest and then to the principal
balance hereof. The unpaid principal may, at the option of the Maker, be
prepaid, in whole or in part, at any time without premium or penalty,
through the payment of an amount equal to 100% of the principal amount being
prepaid, together with all accrued and unpaid interest on this Note to (but
excluding) the date of the prepayment. At such time as this Note is paid or
prepaid in full, it shall be surrendered to the Maker and cancelled and
shall not be reissued.

	 	(b)	 	As further provided in Section 5, each of Atlas, Wild Rose,
Alberta and Alliance (each, a “Guarantor”) is guaranteeing the payment
obligations of the Maker under this Note. Pursuant to the provisions of the
Pledge and Security Agreement dated as of the date of this Note to which Atlas,
Wild Rose, Alberta and the Holder are parties (the “Pledge Agreement”), the
guarantee obligations of the Guarantors are being secured by a security
interest in all of the outstanding capital stock of each of Alberta, Alliance
and the subsidiaries of Alberta specified in the Pledge Agreement (the
“Collateral”). Each of the Maker and the Guarantors sometimes is referred to
herein as an “Obligor.”
	 
	 	(c)	 	Regardless of any provision contained herein, or in any other
document executed in connection with this Note, the Holder shall never be
entitled to contract for, charge, take, reserve, receive, collect, or apply, as
interest on any obligation payable under this Note, any unearned interest or
any amount in excess of the Highest Lawful Rate, and in the event the holder
hereof ever contracts, for charges, takes, reserves, receives, collects or
applies, as interest, any unearned interest or any such excess, such amount
shall be deemed a partial prepayment of principal, and, if the principal hereof
is paid in full, any remaining excess shall forthwith be refunded to the Maker.

	 	2.	 	Certain Covenants. The Obligors hereby covenant and agree as follows, after
the date of the Note and until such time as this Note has been paid in full in cash:

	 	(a)	 	Maintenance of existence. Each Obligor shall maintain its
corporate or other legal entity existence and remain in good standing in its
jurisdiction of formation.
	 
	 	(b)	 	Continuation of business. Each Obligor shall continue its
principal lines of business carried on as of the date of this Note.
	 
	 	(c)	 	Maintenance of insurance. Each Obligor shall maintain or cause
to be maintained insurance with respect to its property and business against
such liabilities and risks, in such types and amounts and with such deductibles

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	 	 	 	or self-insurance risk retentions, in each case as is customary in its
respective industries.

	 	(d)	 	Maintenance of books and records. Each Obligor shall maintain
its accounting books and records in accordance with accounting principles
generally accepted in the United States (“GAAP”) in all material respects.
	 
	 	(e)	 	Compliance with laws. Each Obligor shall comply with all laws
and governmental regulations applicable to it, except to the extent that the
failure to so comply would not have a material adverse effect on the business,
financial condition, or results of operations of such Obligor and its
subsidiaries, taken as a whole.
	 
	 	(f)	 	Notification of default. Each Obligor shall notify the Holder,
immediately after receipt by such Obligor, of any notice of default received by
it under any Interest-Bearing Debt (as defined in the Stock Purchase Agreement)
or any agreement or instrument governing or creating any Interest-Bearing Debt
or any material Indebtedness (as hereinafter defined) of such Obligor or any of
its consolidated subsidiaries. As used in this Note, “Indebtedness” means,
with respect to any Obligor, without duplication:

	 	(i)	 	indebtedness of such Obligor for borrowed
money;
	 
	 	(ii)	 	obligations of such Obligor evidenced by bonds,
debentures, promissory notes, or other similar instruments;
	 
	 	(iii)	 	obligations of such Obligor in respect of
letters of credit, bankers’ acceptances, or other similar instruments,
excluding obligations in respect of trade letters of credit, bankers’
acceptances, or other similar instruments issued in respect of trade
payables or similar obligations to the extent not drawn upon or
presented, or, if drawn upon or presented, the resulting obligation of
such Obligor is paid within three days;
	 
	 	(iv)	 	obligations of such Obligor to pay the deferred
and unpaid purchase price of property or services which are recorded as
liabilities in accordance with GAAP, excluding trade payables, advances
on contracts, deferred compensation and similar liabilities arising in
the ordinary course of business of such Obligor; and
	 
	 	(v)	 	rent obligations of such Obligor as lessee
under any lease arrangement classified as a capital lease on the
balance sheet of such Obligor in accordance with GAAP.

	 	(g)	 	Restrictions on issuances of capital stock and divestitures,
mergers and consolidations. Except pursuant to the terms of the Stock Purchase
Agreement or the Pledge Agreement: (i) none of the Obligors shall issue 

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	 	 	 	or sell
any shares of their capital stock or other equity interests, except to the
Holder pursuant to the terms of the Stock Purchase Agreement; and (ii) Alberta
shall not sell, transfer or pledge any capital stock of the Maker to any person
or entity. None of the Obligors shall enter into any merger or consolidation
transaction pursuant to which any of them may be acquired by an entity other
than the Holder. Neither the Maker nor any other Obligor shall sell all of its
assets or its assets substantially as an entirety (whether in a single
transaction or a series of related transactions).

	 	(h)	 	Subordination of additional Indebtedness. Any Indebtedness
incurred by the Maker after the date of this Note will be expressly
subordinated (pursuant to customary subordination provisions) to the
indebtedness under this Note.
	 
	 	(i)	 	Prohibitions on incurrence of new liens. No Obligor shall
grant any liens on its assets to secure any Indebtedness.
	 
	 	(j)	 	Restrictions on certain guaranties. No Obligor shall provide a
guaranty of the obligations of any person or entity.
	 
	 	(k)	 	Restrictions on transactions with affiliates. No Obligor shall
engage in any transactions with affiliated persons or entities, except as
permitted by Section 2(l).
	 
	 	(l)	 	Restricted payments. No Obligor shall pay any dividends or
make any similar distributions to Alberta; provided, however, that this
covenant shall not restrict (i) the Maker from making, declaring and paying to
Alberta a one-time cash dividend in the amount of $15,000,000 and a
loan to Alberta in the amount of $18,000,000, or (ii) Alberta
from making, declaring and paying a one-time cash distribution in the amount of
$33,000,000 in respect of its outstanding series A preferred stock.
	 
	 	(m)	 	Prohibition on loans. Except as permitted by Section
2(l)(i), no Obligor shall make loans to any
person or entity.

	 	3.	 	Events of Default and Remedies.

	 	(a)	 	Events of Default. So long as this Note has not been paid in
full in cash, each of the following events will constitute an “Event of
Default”:

	 	(i)	 	any default in the payment of the principal or
accrued interest payable under this Note, as and when the same shall
become due and payable;
	 
	 	(ii)	 	any breach of any of the covenants contained in
Section 2;
	 
	 	(iii)	 	commencement of an involuntary case or other
proceeding against any Obligor seeking (A) liquidation, reorganization,
or other relief 

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	 	 	 	with respect to it or its debts under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect
or (B) the appointment of a receiver, liquidator, custodian, or trustee
of any Obligor or for all or substantially all the property and other
assets of any Obligor; or

	 	(iv)	 	(A) commencement of a voluntary case by any
Obligor under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect, (B) consent by any Obligor to the
entry of an order for relief in an involuntary case against such
Obligor under any such law, (C) consent by any Obligor to the
appointment or taking possession by a receiver, liquidator, custodian,
or trustee of such Obligor or for all or substantially all its assets
or (D) a general assignment by any Obligor for the benefit of its
creditors.

	 	(b)	 	Remedies. If an Event of Default shall occur, then, without
any notice to the Maker or any other act by the Holder, the entire principal
amount of this Note (together with all accrued interest thereon) shall become
immediately due and payable without presentment, demand, protest, or other
notice of any kind, all of which are hereby expressly waived by the Maker.
	 
	 	(c)	 	Expenses. If an Event of Default shall occur, the Maker shall
pay, and save the Holder harmless against liability for the payment of, all
reasonable expenses, including reasonable attorneys’ fees, incurred by the
Holder in enforcing its rights hereunder.

	 	4.	 	Waivers; Amendments. To the extent permitted by applicable law, each Obligor,
for itself and its legal representatives, successors and assigns, hereby expressly
waives demand for payment, presentment, notice of dishonor, notice of intent to demand,
notice of acceleration, notice of intent to accelerate, protest, notice of protest and
diligence in collecting and the bringing of suit against the Maker or any other Obligor
with respect to this Note. The Obligors agree that the Holder may extend the time for
repayment or accept partial payment an unlimited number of times without discharging or
releasing any of the Obligors from their respective obligations under this Note
(including the Guaranties). No delay or omission on the part of the Holder in
exercising any power or right in connection herewith shall operate as a waiver of such
right or any other right under this Note (including the Guaranties), nor shall any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further
exercise thereof or the exercise of any other right or power. No amendment,
modification, or waiver of any provision of this Note (including the Guaranties), nor
any consent to any departure therefrom, shall in any event be effective unless the same
shall be in writing and signed by the person against whom enforcement thereof is to be
sought, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given. Each Obligor also hereby

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	 	 	 	expressly waives, as a defense, any counterclaim, setoff or claim which such Obligor
may now or hereafter have against the Holder.

	 	5.	 	Guaranties. (a) Subject to the terms and conditions of this Note, the
Guarantors hereby, jointly and severally, unconditionally guarantee to the Holder the
prompt and complete payment in cash when due of all the Maker’s payment obligations to
the Holder under this Note (the “Obligations”). An Event of Default under this Note
shall constitute an event of default under the guaranties of the Guarantors provided in
this Section 5 (the “Guaranties”), and shall entitle the Holder to accelerate the
obligations of the Guarantors hereunder in the same manner and to the same extent as
the Obligations. The Guaranties constitute guarantees of payment when due and not of
collection.

	 	(b)	 	Anything herein to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder shall in no event exceed the amount which
can be guaranteed by such Guarantor under applicable federal and state laws
relating to fraudulent transfers or conveyances or to the insolvency of debtors
(after giving effect to any right of contribution from the other Guarantor).
	 
	 	(c)	 	The Guarantors shall not exercise any rights which they may
acquire by way of subrogation to the rights of the Holder hereunder until all
the Obligations shall have been paid in full in cash. Subject to the foregoing,
upon payment of all the Obligations, the Guarantors shall be subrogated to the
rights of the Holder against the Maker, and the Holder agrees to take such
steps as the Guarantors may reasonably request to implement such subrogation.
	 
	 	(d)	 	To the maximum extent permitted by applicable law, the
Guarantors understand and agree that the Guaranties shall be construed as
continuing, complete, absolute, and unconditional guarantees of payment without
regard to, and each Guarantor hereby waives any defense of a surety or
guarantor or any other obligor on any obligations arising in connection with or
in respect of, and hereby agrees that its obligations hereunder shall not be
discharged or otherwise affected as a result of, any of the following: (i) any
defense, setoff, or counterclaim (other than the defense of payment or
performance in full) which may at any time be available to or be asserted by
the Maker against the Holder; (ii) the insolvency, bankruptcy arrangement,
reorganization, adjustment, composition, liquidation, disability, dissolution,
or lack of power of the Maker or any of the other Guarantors, or any sale,
lease, or transfer of any or all of the assets of the Maker or any of the other
Guarantors, or any change in the shareholders or other equity owners of the
Maker or any of the other Guarantors; (iii) any change in the corporate or
other existence, structure, or ownership of any other Obligor; (iv) the absence
of any attempt to collect the Obligations or
any part of them from any other Obligor; or (v) any other circumstance or
act which constitutes, or might be construed to constitute, an equitable or

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	 	 	 	legal discharge of the Maker for the Obligations, or of such Guarantor under
its Guaranty, in bankruptcy or in any other instance (other than the defense
of payment or performance in full). When making any demand hereunder or
otherwise pursuing its rights and remedies hereunder against either
Guarantor, the Holder may, but shall be under no obligation to, join or make
a similar demand on or otherwise pursue or exhaust such rights and remedies
as it may have against the Maker or any of the other Guarantors, and any
failure by the Holder to make any such demand, to pursue such other rights
or remedies, or to collect any payments from the Maker or any of the other
Guarantors, or any release of the Maker or any of the other Guarantors,
shall not relieve such Guarantor of any obligation or liability hereunder,
and shall not impair or affect the rights and remedies, whether express,
implied, or available as a matter of law, of the Maker against such
Guarantor.

	 	6.	 	Certain Representations. The Maker hereby represents that: (a) it is duly
incorporated, validly existing, and in good standing under the laws of the State of
Nevada and has full corporate power and authority to execute and deliver this Note; (b)
its execution and delivery of this Note has been duly authorized by all necessary
corporate action on its part; (c) as of the time of the execution and delivery of this
Note, and after giving effect to the incurrence of the indebtedness and the other
transactions contemplated hereby, all representations of the Obligors contained in the
Stock Purchase Agreement and the Pledge Agreement are and shall be true and correct and
no breach of the obligations of any of the Obligors has occurred under the Stock
Purchase Agreement or the Pledge Agreement; and (d) this Note constitutes a legal,
valid, and binding obligation of the Maker, enforceable against the Maker in accordance
with the terms hereof, except as such enforceability may be limited by: (i) bankruptcy,
insolvency, reorganization, fraudulent transfer or conveyance, and other laws of
general applicability relating to or affecting creditors’ rights; and (ii) general
principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law).
	 
	 	7.	 	Entire Agreement; Assignment. This Note, the Stock Purchase Agreement and the
Pledge Agreement constitute the entire agreement and understanding among the Holder and
the Obligors with respect to the subject matter of this Note and supersede all prior
agreements and understandings, oral or written, among such parties with respect to the
subject matter of this Note. The Holder may transfer or assign this Note or any of its
rights to payment hereunder to any third party without the consent of the Maker
(including, without limitation, to the administrative or collateral agent for any
secured credit facility enter into by Holder prior to, on or after the date hereof, in
connection with the security arrangements relating thereto), and any such transfer or
assignment shall be binding on the Maker, and any assignee of the Holder shall be
entitled to enforce all the rights of the original Holder so transferred or assigned to
such assignee.
The Maker may not assign any of its rights or obligations under this Note without
the prior written consent of the Holder.

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	 	8.	 	Notices. All notices and communications provided for hereunder shall be in
writing and sent (a) by facsimile if the sender on the same day sends a confirming copy
of such notice by a recognized overnight-delivery service (charges prepaid), or (b) by
registered or certified mail with return receipt requested (postage prepaid), or (c) by
a recognized overnight-delivery service (with charges prepaid). Any such notice shall
be sent:

	 	(i)	 	if to the Holder, addressed to it at 2925 Briar
Park, Suite 1050, Houston, Texas 77042, to the attention of Donald C.
Wayne, or at such other address as the Holder may hereafter specify to
the Obligors in writing; or
	 
	 	(ii)	 	if to any Obligor, addressed to it at 850, 335
Eighth Avenue S.W., Calgary, Alberta, Canada T2P 1C9, to the attention
of Gerald A. Berkhold, or at such other address as the Obligors may
hereafter specify to the Holder in writing.

	 	9.	 	Captions; Interpretation. The captions and section headings appearing herein
are included solely for convenience of reference and are not intended to affect the
interpretation of any provision of this Note. Except where the context otherwise
requires, the defined terms used in this Note shall apply equally to the singular and
plural forms of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine, and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” The word “will” shall be construed to have the same meaning and effect as
the word “shall” and both “will” and “shall” are used in the mandatory and imperative
sense. Unless otherwise stated or the context otherwise requires: (i) the words
“herein,” “hereof,” and “hereunder,” and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision hereof; and
(ii) all references herein to sections shall be construed to refer to sections of this
Note.
	 
	 	10.	 	Severability. If any provision contained in this Note shall for any reason be
held to be invalid, illegal, or unenforceable in any respect, that provision will, to
the extent possible, be modified in such manner as to be valid, legal, and enforceable
but so as to most nearly retain the intent of the parties hereto as expressed herein,
and if such a modification is not possible, that provision will be severed from this
Note, and in either case the validity, legality, and enforceability of the remaining
provisions of this Note will not in any way be affected or impaired thereby.
	 
	 	11.	 	Governing Law. The construction, validity, and enforceability of this Note
shall be governed by the substantive laws of the State of Texas, without giving effect
to any principles of conflicts of laws thereof that would result in the application of
the laws of any other jurisdiction.

* * *

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	 	MAKER:

ATLAS INVESTMENTS, INC.

 	 
	 	By:  	/s/ Gerald A. Berkhold
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	Director 	 
	 
	 	GUARANTORS:

ATLAS CONCRETE INC.

 	 
	 	By:  	/s/ Gerald A. Berkhold
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	President 	 
	 
	 	WILD ROSE HOLDINGS LTD.

 	 
	 	By:  	/s/ Gerald A. Berkhold
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	Director 	 
	 
	 	ALBERTA INVESTMENTS INC.

 	 
	 	By:  	/s/  Gerald A. Berkhold
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	President 	 
	 
	 	ALLIANCE HAULERS, INC.

 	 
	 	By:  	/s/ Gerald A. Berkhold
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	Director 	 
	 

9exv10w2

 

Exhibit 10.2

     Pledge and Security Agreement, dated as of July 3, 2006, by and among Atlas
Concrete Inc., an Alberta, Canada corporation (“Atlas”), Wild Rose Holdings Ltd., a Jersey
corporation (“Wild Rose”), and Alberta Investments Inc., a Texas corporation ( “Alberta” and,
together with Atlas and Wild Rose, the “Pledgors”), in favor of U.S. Concrete, Inc., a Delaware
corporation (the “Lender”).

Witnesseth:

     Whereas, pursuant to Section 7.14 of the Stock Purchase Agreement (the “Stock
Purchase Agreement”) dated as of June 27, 2006 among the Lender, Alliance Haulers, Inc., a Texas
corporation, Alberta, Atlas and Wild Rose, the Lender has agreed to make a loan (the “Loan”) to
Atlas Investments, Inc., a Nevada corporation and a wholly owned subsidiary of Alberta (the
“Borrower”), evidenced by the Borrower’s promissory note dated of even date herewith in the
original principal amount of $33,000,000 payable to the order of the Lender (as the same may be
amended, amended and restated, supplemented or otherwise modified from time to time, the “Note”),
upon the terms and subject to the conditions set forth therein; and

     Whereas, as contemplated by the Stock Purchase Agreement, it is a condition precedent
to the obligation of the Lender to make the Loan to the Borrower under the Note that the Pledgors
shall have executed and delivered this Agreement to the Lender;

     Now, therefore, in consideration of the premises and to induce the Lender to enter
into the Stock Purchase Agreement and to make the Loan to Borrower as contemplated thereby, the
Pledgors hereby agree with the Lender as follows:

ARTICLE I DEFINED TERMS

     Section 1.1 Definitions

     (a) Unless otherwise defined herein, terms defined in the Stock Purchase Agreement and used
herein have the respective meanings given to them in the Stock Purchase Agreement.

     (b) Terms used herein without definition that are defined in the UCC have the respective
meanings given to them in the UCC, including the following terms (which are capitalized herein):

     “Certificated Security”

     “General Intangible”

     “Instruments”

     “Proceeds”

     “Security”

     “Security Entitlement”

The following terms shall have the following respective meanings:

     “Agreement” means this Pledge and Security Agreement.

 

 

     “Collateral” has the meaning specified in Section 2.1 (Collateral).

     “Constituent Documents” means, with respect to any Person, (a) the articles of incorporation,
certificate of incorporation, constitution or certificate of formation (or the equivalent
organizational documents) of such Person, (b) the by-laws or operating agreement (or the equivalent
governing documents) of such Person and (c) any document setting forth the manner of election and
duties of the directors, managers or managing members (or any equivalent managers) of such Person
(if any) and the designation, amount or relative rights, limitations and preferences of any class
or series of such Person’s Stock.

     “Event of Default” has the meaning assigned to such term in the Note.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “LLC” means each limited liability company in which a Pledgor has an interest.

     “LLC Agreement” means each operating agreement with respect to an LLC, as such agreement has
heretofore been, and may hereafter be, amended, restated, supplemented or otherwise modified from
time to time.

     “Loan Documents” means the Stock Purchase Agreement, the Note, this Agreement and any other
documents securing the Secured Obligations or executed in connection therewith.

     “Partnership” means each partnership in which a Pledgor has an interest.

     “Partnership Agreement” means each partnership agreement governing a Partnership, as each such
agreement has heretofore been, and may hereafter be, amended, restated, supplemented or otherwise
modified.

     “Pledged Certificated Stock” means all Certificated Securities and any other Stock or Stock
Equivalent of a Person evidenced by a certificate, Instrument or other equivalent document, in each
case owned by a Pledgor, including all Stock listed on Schedule 3 (Pledged Collateral).

     “Pledged Collateral” means, collectively, the Pledged Stock and any certificates or other
Instruments representing any of the Pledged Stock and all Security Entitlements of any of the
Pledgors in respect of any of the foregoing.

     “Pledged Stock” means all Pledged Certificated Stock and all Pledged Uncertificated Stock.

     “Pledged Uncertificated Stock” means any Stock or Stock Equivalent of any Person that is not a
Pledged Certificated Stock, including all right, title and interest of any Pledgor as a limited or general partner in any Partnership or as a member of any LLC and all
right, title and interest of any Pledgor in, to and under any Partnership Agreement or LLC
Agreement to which it is a party.

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     “Secured Obligations” means the Loan and all other amounts, obligations, covenants and duties
owing by Borrower, any Pledgor or any of their affiliates (collectively, the “Loan Parties”) to the
Lender, of every type and description (whether by reason of a loan or other extension of credit,
guaranty, indemnification or otherwise), present or future, arising under this Agreement, or any
other Loan Document, whether direct or indirect (including those acquired by assignment), absolute
or contingent, due or to become due, now existing or hereafter arising and however acquired and
whether or not evidenced by any note, guaranty or other instrument or for the payment of money,
including all letter of credit, cash management and other fees, interest, charges, expenses,
attorneys’ fees and disbursements, and other sums chargeable to Borrower under this Agreement, or
any other Loan Document and any and all obligations of any and all of the Borrower and the Pledgors
under any Loan Document.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Stock” means shares of capital stock (whether denominated as common stock or preferred
stock), beneficial, partnership or membership interests, participations or other equivalents
(regardless of how designated) of or in a corporation, partnership, limited liability company or
equivalent entity, whether voting or non-voting.

     “Stock Equivalents” means all securities convertible into or exchangeable for Stock and all
warrants, options or other rights to purchase or subscribe for any Stock, whether or not presently
convertible, exchangeable or exercisable.

     “UCC” means the Uniform Commercial Code as from time to time in effect in the State of Texas;
provided, however, that, in the event that, by reason of mandatory provisions of law, any of the
attachment, perfection or priority of the Lender’s security interest in any Collateral is governed
by the Uniform Commercial Code as in effect in a jurisdiction other than the State of Texas, the
term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such attachment, perfection or priority and for
purposes of definitions related to such provisions.

     Section 1.2 Certain Other Terms

     (a) In this Agreement, in the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including” and the words “to” and “until” each mean
“to but excluding” and the word “through” means “to and including.”

     (b) The terms “herein,” “hereof,” “hereto” and “hereunder” and similar terms refer to this
Agreement as a whole and not to any particular Article, Section, subsection or clause in this
Agreement.

     (c) References herein to an Annex, Schedule, Article, Section, subsection or clause refer to
the appropriate Annex or Schedule to, or Article, Section, subsection or clause in this Agreement.

     (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

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     (e) Where the context requires, provisions relating to any Collateral, when used in relation
to a Pledgor, shall refer to that Pledgor’s Collateral or any relevant part thereof.

     (f) Any reference in this Agreement to a Loan Document shall include all appendices, exhibits
and schedules thereto, and, unless specifically stated otherwise all amendments, restatements,
supplements or other modifications thereto, and as the same may be in effect at any time such
reference becomes operative.

     (g) The term “including” means “including without limitation” except when used in the
computation of time periods.

     (h) The terms “Lender,” “Pledgors,” and “Borrower” include their respective successors and
permitted assigns.

     (i) References in this Agreement to any statute shall be to such statute as amended or
modified and in effect from time to time.

ARTICLE II GRANT OF SECURITY INTEREST

     Section 2.1 Collateral

     For the purposes of this Agreement, all of the following property now owned or at any time
hereafter acquired by any Pledgor or in which a Pledgor now has or at any time in the future may
acquire any right, title or interests is collectively referred to as the “Collateral”:

     (a) all the Pledged Collateral;

     (b) all General Intangibles respecting the Pledged Collateral;

     (c) all Instruments respecting the Pledged Collateral;

     (d) all books and records pertaining to the other property described in this Section 2.1;

     (e) all property of any Pledgor held by the Lender, including all property of every
description, in the possession or custody of or in transit to the Lender for any purpose, including
safekeeping, collection or pledge, for the account of any of the Pledgors or as to which any
Pledgor may have any right or power; and

     (f) to the extent not otherwise included, all Proceeds.

     Section 2.2 Grant of Security Interest in Collateral

     The Pledgors, as collateral security for the full, prompt and complete payment and performance
when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations,
hereby mortgage, pledge and hypothecate to the Lender, and grant to the Lender a lien on and security interest in, all of their respective rights, titles and interests in, to
and under the Collateral.

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ARTICLE III REPRESENTATIONS AND WARRANTIES

     To induce the Lender to make the Loan, each Pledgor hereby represents and warrants each of the
following to the Lender:

     Section 3.1 Title; No Other Liens

     Except for the liens granted to the Lender pursuant to this Agreement, each Pledgor (a) is the
record and beneficial owner of the Collateral pledged by it hereunder constituting Instruments or
Certificated Securities, and (b) has rights in or the power to transfer each other item of
Collateral in which a Lien is granted by it hereunder, free and clear of any other Lien.

     Section 3.2 Perfection and Priority

     The security interest granted pursuant to this Agreement shall constitute a valid and
continuing perfected first priority security interest in favor of the Lender in the Collateral upon
(i) in the case of all Collateral in which a security interest may be perfected by filing a
financing statement under the UCC, the completion of the filings and other actions specified on
Schedule 1 (Filings) (which, in the case of all filings and other documents referred to on such
schedule, have been delivered to the Lender in completed and duly executed form), and (ii) the
delivery to the Lender of all Collateral consisting of Instruments and Certificated Securities, in
each case properly endorsed for transfer to the Lender or in blank.

     Section 3.3 Jurisdiction of Organization; Chief Executive Office

     Each Pledgor’s jurisdiction of organization, legal name, organizational identification number,
if any, and the location of each Pledgor’s chief executive office or sole place of business, in
each case as of the date hereof, is correctly specified on Schedule 2 (Pledgor Information) and
such Schedule 2 (Pledgor Information) also correctly lists all jurisdictions of incorporation,
legal names and locations of each Pledgor’s chief executive office or sole place of business for
the five years preceding the date hereof. Each Pledgor is duly organized, validly existing, and in
good standing under the laws of its jurisdiction of organization, as set forth on Schedule 2
(Pledgor Information), and has full corporate, limited liability or partnership power and authority
to execute and deliver this Agreement. No Pledgor has, within the period of 180 days prior to the
date hereof, changed its name or the jurisdiction or form of its organization.

     Section 3.4 Pledges of Collateral

     (a) Each Pledgor has duly authorized the execution, delivery and performance of this Agreement
and each other Loan Document to which it is a party and this Agreement and each other Loan Document
to which it is a party has been duly executed and delivered by each Pledgor and constitutes the
legal, valid and binding obligation of each Pledgor with respect thereto, enforceable against each
Pledgor in accordance with its terms, subject to the effects of applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other
similar laws relating to or affecting creditors’ rights generally, and general equitable principles
(whether considered in a proceeding in equity or at law). The Pledged Stock pledged hereunder

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by each Pledgor is listed on Schedule 3 (Pledged Collateral) and constitutes that percentage of the
issued and outstanding equity of all classes of each issuer thereof as set forth on Schedule 3
(Pledged Collateral).

     (b) All of the Pledged Stock has been duly authorized, validly issued and is fully paid and
nonassessable.

     (c) All of the Pledged Stock constitutes the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms, subject to the effects of
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other
similar laws relating to or affecting creditors’ rights generally, and general equitable principles
(whether considered in a proceeding in equity or at law).

     (d) All Pledged Collateral pledged by the Pledgors, consisting of Certificated Securities or
Instruments has been delivered to the Lender in accordance with Section 4.4(a) (Pledged
Collateral).

     (e) Other than Pledged Stock pledged by the Pledgors constituting General Intangibles, there
is no Pledged Collateral that the Obligors have not delivered into the possession of the Lender.
The execution, delivery and performance by each Pledgor of this Agreement and each other Loan
Document to which it is a party do not violate any statute, rule, regulation, order or other law
binding upon that Pledgor or its property or conflict with the Constituent Documents of that
Pledgor or any issuer of the Collateral or any agreement or other document to which that Pledgor is
a party or by which it or its property is bound.

ARTICLE IV COVENANTS

     Each Pledgor agrees with the Lender to the following, as long as any Secured Obligation
remains outstanding and, in each case, unless the Lender otherwise consents in writing (for itself
and its property only):

     Section 4.1 Generally

     Each Pledgor shall (a) not use or permit its Collateral to be used unlawfully or in violation
of any provision of this Agreement, any other Loan Document, any related document, any requirement
of applicable law or any policy of insurance covering the Collateral, (b) not enter into any
agreement or undertaking restricting the right or ability of any Pledgor or the Lender to sell,
assign or transfer any Collateral and (c) promptly notify the Lender of its entry into any
agreement or assumption of undertaking that restricts the ability to sell, assign or transfer any
Collateral.

     Section 4.2 Maintenance of Perfected Security Interest; Further Documentation

     (a) Each Pledgor shall maintain each security interest created by this Agreement as a
perfected security interest having at least the priority described in Section 3.2 (Perfection and
Priority) and Section 2.2 (Grant of Security Interest in Collateral) and shall defend such security
interest and such priority against the claims and demands of all Persons.

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     (b) Each Pledgor shall furnish to the Lender from time to time statements and schedules
further identifying and describing the Collateral and such other reports in connection with the
Collateral as the Lender may reasonably request, all in reasonable detail and in form and substance
satisfactory to the Lender.

     (c) At any time and from time to time, upon the written request of the Lender, and at the sole
expense of the Pledgors, each Pledgor shall promptly and duly execute and deliver, and have
recorded, such further instruments and documents and take such further action as the Lender may
reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement
and of the rights and powers herein granted, including the filing of any financing or continuation
statement under the UCC (or other similar laws) in effect in any jurisdiction with respect to the
security interest created hereby and the execution and delivery of deposit account control
agreements and securities account control agreements.

     Section 4.3 Changes in Locations, Name, Etc.

     (a) No Pledgor shall do any of the following:

     (i) change its jurisdiction of organization or its location, in each case from that
referred to in Section 3.3 (Jurisdiction of Organization; Chief Executive Office); or

     (ii) change its legal name or organizational identification number, if any, or
corporation, limited liability company or other organizational structure to such an extent
that any financing statement filed in connection with this Agreement would become
misleading.

     (b) Each Pledgor shall keep and maintain at its own cost and expense satisfactory and complete
records of its Collateral, including a record of all payments received and all credits granted with
respect to the Collateral and all other dealings with the Collateral.

     Section 4.4 Pledged Collateral

     (a) Each Pledgor shall deliver to the Lender, all certificates and Instruments representing or
evidencing any of its Pledged Collateral, whether now existing or hereafter acquired, in suitable
form for transfer by delivery or, as applicable, accompanied by the Pledgor’s endorsement, where
necessary, or duly executed instruments of transfer or assignment in blank, all in form and
substance reasonably satisfactory to the Lender, or such other documentation acceptable to the
Lender. Upon the occurrence and during the continuance of an Event of Default, the Lender shall
have the right, at any time in its discretion and without notice to any of the Pledgors, to irrevocably transfer to or to register in its name or in the name
of its nominees any Pledged Collateral. The Lender shall have the right at any time to exchange
any certificate or instrument representing or evidencing any Pledged Collateral for certificates or
instruments of smaller or larger denominations.

     (b) Except as provided in Article V (Remedial Provisions) or the Stock Purchase Agreement,
the Pledgors shall be entitled to receive any cash dividend paid in respect of their respective
Pledged Collateral (other than liquidating or dissolution dividends), provided

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such dividend is declared and paid in compliance with all applicable provisions of the Stock Purchase Agreement and
not in contravention of any of the provisions or the Stock Purchase Agreement. Any sums paid upon
or in respect of any Pledged Collateral upon the liquidation or dissolution of any issuer of any
Pledged Collateral, any distribution of capital made on or in respect of any Pledged Collateral or
any property distributed upon or with respect to any Pledged Collateral pursuant to the
recapitalization or reclassification of the capital of any issuer of Pledged Collateral or pursuant
to the reorganization thereof shall, unless otherwise subject to a perfected security interest in
favor of the Lender, be delivered to the Lender to be held by it hereunder as additional collateral
security for the Secured Obligations. If any sum of money or property so paid or distributed in
respect of any Pledged Collateral shall be received by any Pledgor, that Pledgor shall, until such
money or property is paid or delivered to the Lender, hold such money or property in trust for the
Lender, segregated from other funds of that Pledgor, as additional security for the Secured
Obligations.

     (c) Except as provided in Article V (Remedial Provisions) or the Stock Purchase Agreement,
each Pledgor shall be entitled to exercise all voting, consent and corporate, partnership, limited
liability company and similar rights with respect to its Pledged Collateral; provided, however,
that no vote shall be cast, consent given or right exercised or other action taken by any Pledgor
that would impair the Collateral, result in any violation of any provision of the Stock Purchase
Agreement, this Agreement or any other Loan Document. No Pledgor shall enable or permit any issuer
of Pledged Collateral to issue any Stock or other equity Securities of any nature or to issue any
other securities convertible into or granting the right to purchase or exchange for any Stock or
other equity Securities of any nature of any issuer of Pledged Collateral.

     (d) No Pledgor shall grant “control” (within the meaning of such term under Article 9-106 of
the UCC) over any Collateral to any Person other than the Lender.

     (e) If any Pledgor is a holder of any Stock or Stock Equivalent in any Person that is an
issuer of Stock or Stock Equivalents to be pledged to the Lender under the Stock Purchase
Agreement, that Pledgor consents to (i) the exercise of the rights granted to the Lender hereunder
(including those described in Section 5.2 (Pledged Collateral)) or under such pledges, and (ii) the
pledge by each other Pledgor, pursuant to the terms hereof or the Stock Purchase Agreement, of the
Pledged Stock in such Person and to the transfer of such Pledged Stock to the Lender or its nominee
and to the substitution of the Lender or its nominee as a holder of such Pledged Stock with all the
rights, powers and duties of other holders of Pledged Stock of the same class and, if the Pledgor
having pledged such Pledged Stock hereunder had any right, power or duty at the time of such pledge
or at the time of such substitution beyond that of such other holders, with all such additional
rights, powers and duties. Each Pledgor agrees to execute and deliver to the Lender such certificates, agreements and other documents as may be
necessary to evidence, formalize or otherwise give effect to the consents given in this clause (e).

     (f) No Pledgor shall, without the consent of the Lender, agree to any amendment of any
Constituent Document that in any way adversely affects the perfection of the security interest of
the Lender in the Pledged Collateral pledged by that Pledgor hereunder, including any amendment
electing to treat any membership interest or partnership interest that is part of the Pledged
Collateral as a “security” under Section 8-103 of the UCC, or any election to

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turn any previously uncertificated Stock that is part of the Pledged Collateral into certificated Stock.

Section 4.5 Payment of Obligations

     Each Pledgor shall pay and discharge or otherwise satisfy at or before maturity or before they
become delinquent, as the case may be, all taxes, assessments and governmental charges or levies
imposed upon the Collateral or in respect of income or profits therefrom, as well as all claims of
any kind against or with respect to the Collateral.

ARTICLE V REMEDIAL PROVISIONS

     Section 5.1 Code and Other Remedies

     During the continuance of an Event of Default, the Lender may exercise, in addition to all
other rights and remedies granted to it in this Agreement and in any other instrument or agreement
securing, evidencing or relating to the Secured Obligations, all rights and remedies of a secured
party under the UCC or any other applicable law. Without limiting the generality of the foregoing,
the Lender, without demand of performance or other demand, presentment, protest, advertisement or
notice of any kind (except any notice required by law referred to below) to or upon any Pledgor or
any other Person (all and each of which demands, defenses, advertisements and notices are hereby
waived), may in such circumstances forthwith collect, receive, appropriate and realize upon any
Collateral, and may forthwith sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver any Collateral (or contract to do any of the foregoing), in one or more
parcels at public or private sale or sales, at any exchange, broker’s board or office of the Lender
or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may
deem best, for cash or on credit or for future delivery without assumption of any credit risk. The
Lender shall have the right upon any such public sale or sales, and, to the extent permitted by the
UCC and other applicable law, upon any such private sale or sales, to purchase the whole or any
part of the Collateral so sold, free of any right or equity of redemption of any Pledgor, which
right or equity is hereby waived and released. The Lender shall apply the net proceeds of any
action taken by it pursuant to this Section 5.1, after deducting all reasonable costs and expenses
of every kind incurred in connection therewith or incidental to the care or safekeeping of any
Collateral or in any way relating to the Collateral or the rights of the Lender, including
reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the Secured
Obligations, in such order as the Lender shall prescribe, and only after such application and after
the payment by the Lender of any other amount required by any provision of law, need the Lender
account for the surplus, if any, to the Pledgors. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PLEDGOR WAIVES ALL CLAIMS, DAMAGES AND DEMANDS IT MAY ACQUIRE AGAINST THE LENDER ARISING OUT
OF THE EXERCISE BY THE LENDER OF ANY RIGHTS HEREUNDER EXCEPT TO THE EXTENT SUCH LIABILITY IS
DETERMINED IN A FINAL, NON-APPEALABLE JUDGMENT IN A COURT OF COMPETENT JURISDICTION TO HAVE
RESULTED PRIMARILY FROM SUCH PERSON’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. If any notice of a
proposed sale or other disposition of Collateral shall be required by law, such notice shall be
deemed reasonable and proper if given at least 10 days before such sale or other disposition.

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     Section 5.2 Pledged Collateral

     (a) During the continuance of an Event of Default, upon notice by the Lender to the Pledgors,
(i) the Lender shall have the right to receive any Proceeds of the Pledged Collateral and make
application thereof to the Secured Obligations in the order determined by the Lender and (ii) the
Lender or its nominee may exercise (A) any voting, consent, corporate and other right pertaining to
the Pledged Collateral at any meeting of shareholders, partners or members, as the case may be, of
the relevant issuer or issuers of Pledged Collateral or otherwise and (B) any right of conversion,
exchange and subscription and any other right, privilege or option pertaining to the Pledged
Collateral as if it were the absolute owner thereof (including the right to exchange at its
discretion any of the Pledged Collateral upon the merger, amalgamation, consolidation,
reorganization, recapitalization or other material change in the corporate, limited liability or
partnership structure of any issuer of Pledged Stock, the right to deposit and deliver any Pledged
Collateral with any committee, depositary, transfer agent, registrar or other designated agency
upon such terms and conditions as the Lender may determine), all without liability except to
account for property actually received by it; provided, however, that the Lender shall have no duty
to any of the Pledgors to exercise any such right, privilege or option and shall not be responsible
for any failure to do so or delay in so doing.

     (b) In order to permit the Lender to exercise the voting and other consensual rights that it
may be entitled to exercise pursuant hereto and to receive all dividends and other distributions
that it may be entitled to receive hereunder, (i) each Pledgor shall promptly execute and deliver
(or cause to be executed and delivered) to the Lender all such proxies, dividend payment orders and
other instruments as the Lender may from time to time reasonably request and (ii) without limiting
the effect of clause (i) above, each Pledgor hereby grants to the Lender an irrevocable proxy to
vote all or any part of the Pledged Collateral and to exercise all other rights, powers, privileges
and remedies to which a holder of the Pledged Collateral would be entitled (including giving or
withholding written consents of shareholders, partners or members, as the case may be, calling
special meetings of shareholders, partners or members, as the case may be, and voting at such
meetings), which proxy shall be effective, automatically and without the necessity of any action
(including any transfer of any Pledged Collateral on the record books of the issuer thereof) by any
other person (including the issuer of such Pledged Collateral or any officer or agent thereof),
during the continuance of an Event of Default and which proxy shall only terminate upon the payment
in full of the Secured Obligations.

     (c) Each Pledgor hereby expressly authorizes and instructs each issuer of any Pledged
Collateral pledged hereunder by that Pledgor to (i) comply with any instruction received by it from
the Lender in writing that (A) states that an Event of Default has occurred and is continuing and (B) is otherwise in accordance with the terms of this Agreement, without any
other or further instructions from that Pledgor, and each Pledgor agrees that such issuer shall be
fully protected in so complying and (ii) unless otherwise expressly permitted hereby, pay any
dividend or other payment with respect to such Pledged Collateral directly to the Lender.

     Section 5.3 Registration Rights

     (a) Each Pledgor recognizes that the Lender may be unable to effect a public sale of any
Pledged Collateral by reason of certain prohibitions contained in the Securities Act

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and applicable state securities laws or otherwise or may determine that a public sale is impracticable or not
commercially reasonable and, accordingly, may resort to one or more private sales thereof to a
restricted group of purchasers that shall be obliged to agree, among other things, to acquire such
securities for their own account for investment and not with a view to the distribution or resale
thereof. Each Pledgor acknowledges and agrees that any such private sale may result in prices and
other terms less favorable than if such sale were a public sale and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been made in a
commercially reasonable manner. The Lender shall be under no obligation to delay a sale of any
Pledged Collateral for the period of time necessary to permit the issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state securities laws,
even if such issuer would agree to do so.

     (b) Each Pledgor agrees to use its best efforts to do or cause to be done all such other acts
as may be necessary to make such sale or sales of all or any portion of the Pledged Collateral
pursuant to this Section 5.3 valid and binding and in compliance with all other applicable
requirements of law; provided that no Pledgor shall be required by the terms of this Agreement to
make any kind of filing under the Securities Act, the Exchange Act or any state securities law if
the Lender, in its sole discretion, determines that a private sale is practicable and commercially
reasonable. Each Pledgor further agrees that a breach of any covenant contained in this Section
5.3 will cause irreparable injury to the Lender, that the Lender has no adequate remedy at law in
respect of such breach and, as a consequence, that each and every covenant contained in this
Section 5.3 shall be specifically enforceable against that Pledgor, and each Pledgor hereby waives
and agrees, to the extent permitted by law, not to assert any defense against an action for
specific performance of such covenants except for a defense that no Event of Default has occurred.

     Section 5.4 Deficiency

     The Pledgors shall remain jointly and severally liable for any deficiency if the proceeds of
any sale or other disposition of the Collateral are insufficient to pay the Secured Obligations and
the reasonable fees and disbursements of any attorney employed by the Lender to collect such
deficiency.

     Section 5.5 Waivers

     Each Pledgor hereby waives any and all rights that it may otherwise have (whether any such
right is contractual or exists pursuant to the articles of incorporation or bylaws of any relevant
entity or under applicable law) that would breach this Agreement or interfere with the exercise by the Lender of any rights or remedies granted to it pursuant to this
Agreement.

ARTICLE VI THE LENDER

     Section 6.1 Lender’s Appointment as Attorney-in-Fact

     (a) Each Pledgor hereby irrevocably constitutes and appoints the Lender and any officer or
agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of that Pledgor and in the name

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of that Pledgor or in its own name, for the purpose of carrying out the terms of this Agreement, to take
any appropriate action and to execute any document or instrument that may be necessary or desirable
to accomplish the purposes of this Agreement, and, without limiting the generality of the
foregoing, each Pledgor hereby gives the Lender the power and right, on behalf of that Pledgor,
without notice to or assent by that Pledgor, to do any of the following:

     (i) in the name of that Pledgor or its own name, or otherwise, take possession of and
indorse and collect any check, draft, note, acceptance or other instrument for the payment
of moneys due under any account or General Intangible or with respect to any other
Collateral and file any claim or take any other action or proceeding in any court of law or
equity or otherwise deemed appropriate by the Lender for the purpose of collecting any such
moneys due under any account or General Intangible or with respect to any other Collateral
whenever payable;

     (ii) pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repair or pay any insurance called for by the terms of this Agreement
(including all or any part of the premiums therefor and the costs thereof);

     (iii) execute, in connection with any sale provided for in Section 5.1 (Code and Other
Remedies) or 5.3 (Registration Rights), any endorsement, assignment or other instrument of
conveyance or transfer with respect to the Collateral; or

     (iv) (A) direct any party liable for any payment under any Collateral to make payment
of any moneys due or to become due thereunder directly to the Lender or as the Lender shall
direct, (B) ask or demand for, collect, and receive payment of and receipt for, any moneys,
claims and other amounts due or to become due at any time in respect of or arising out of
any Collateral, (C) sign and indorse any invoice, draft against debtors, assignment,
verification, notice and other document in connection with any Collateral, (D) commence and
prosecute any suit, action or proceeding at law or in equity in any court of competent
jurisdiction to collect any Collateral and to enforce any other right in respect of any
Collateral, (E) defend any suit, action or proceeding brought against that Pledgor with
respect to any Collateral, (F) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as the Lender may
deem appropriate, and (G) generally, sell, transfer, pledge and make any agreement with
respect to or otherwise deal with any Collateral as fully and completely as though the
Lender were the absolute owner thereof for all purposes, and do, at the Lender’s option and
the Pledgors’ expense, at any time, or from time to time, all acts and things that the Lender deems necessary to protect, preserve or realize
upon the Collateral and the Lender’s security interests therein and to effect the intent of
this Agreement, all as fully and effectively as that Pledgor might do.

Anything in this clause (a) to the contrary notwithstanding, the Lender agrees that it shall not
exercise any right under the power of attorney provided for in this clause (a) unless an Event of
Default shall be continuing.

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     (b) If any Pledgor fails to perform or comply with any of its agreements contained herein, the
Lender, at its option, but without any obligation so to do, may perform or comply, or otherwise
cause performance or compliance, with such agreement.

     (c) The reasonable expenses of the Lender incurred in connection with actions undertaken as
provided in this Section 6.1, together with interest thereon at a rate per annum equal to the rate
per annum at which interest would then be payable on past due principal under the Note, from the
date of payment by the Lender to the date reimbursed by the Pledgors, shall be jointly and
severally payable by the Pledgors to the Lender on demand.

     (d) The Pledgors hereby ratify all that said attorneys shall lawfully do or cause to be done
by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the security interests
created hereby are released.

     Section 6.2 Duty of Lender

     The Lender’s sole duty with respect to the custody, safekeeping and physical preservation of
the Collateral in its possession shall be to deal with it in the same manner as the Lender deals
with similar property for its own account. Neither the Lender, nor any of its respective officers,
directors, employees or agents shall be liable for failure to demand, collect or realize upon any
Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise
dispose of any Collateral upon the request of any Pledgor or any other Person or to take any other
action whatsoever with regard to any Collateral. The powers conferred on the Lender hereunder are
solely to protect the Lender’s interest in the Collateral and shall not impose any duty upon the
Lender to exercise any such powers. The Lender shall be accountable only for amounts that it
actually receives as a result of the exercise of such powers, and neither the Lender nor any of its
respective officers, directors, employees or agents shall be responsible to any Pledgor for any act
or failure to act hereunder, except for its own gross negligence or willful misconduct.

     Section 6.3 Authorization of Financing Statements

     Each Pledgor authorizes the Lender and its affiliates, counsel and other representatives, at
any time and from time to time, to file or record financing statements, amendments to financing
statements, and other filing or recording documents or instruments with respect to the Collateral
in such form and in such offices as the Lender reasonably determines appropriate to perfect the
security interests of the Lender under this Agreement. Each Pledgor hereby also authorizes the
Lender and its affiliates, counsel and other representatives, at any time and from time to time, to
file continuation statements with respect to previously filed financing statements. A photographic or other reproduction of this Agreement
shall be sufficient as a financing statement or other filing or recording document or instrument
for filing or recording in any jurisdiction.

     Section 6.4 Authority of Lender

     Each Pledgor acknowledges that the rights and responsibilities of the Lender under this
Agreement with respect to any action taken by the Lender or the exercise or non-

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exercise by the Lender of any option, voting right, request, judgment or other right or remedy provided for herein
or resulting or arising out of this Agreement shall be conclusively presumed to be acting with full
and valid authority so to act or refrain from acting, and no Pledgor shall be under any obligation,
or entitlement, to make any inquiry respecting such authority.

ARTICLE VII MISCELLANEOUS

     Section 7.1 Amendments in Writing

     None of the terms or provisions of this Agreement may be waived, amended, supplemented or
otherwise modified except in a writing signed by the Pledgors and Lender.

     Section 7.2 Notices

     All notices, requests and demands to or upon the Lender or any Pledgor hereunder shall be
effected in the manner provided for in Section 12.05 (Notices) of the Stock Purchase Agreement.

     Section 7.3 No Waiver by Course of Conduct; Cumulative Remedies

     The Lender shall not by any act (except by a written instrument pursuant to Section 7.1
(Amendments in Writing)), delay, indulgence, omission or otherwise, be deemed to have waived any
right or remedy hereunder or to have acquiesced in any default or Event of Default. No failure to
exercise, nor any delay in exercising, on the part of the Lender, any right, power or privilege
hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. A waiver by the Lender of any right or remedy hereunder on any
one occasion shall not be construed as a bar to any right or remedy that the Lender would otherwise
have on any future occasion. The rights and remedies herein provided are cumulative, may be
exercised singly or concurrently and are not exclusive of any other rights or remedies provided by
law.

     Section 7.4 Successors and Assigns

     This Agreement shall be binding upon the successors and assigns of each Pledgor and shall
inure to the benefit of the Lender and its successors and assigns; provided, however, that no
Pledgor may assign, transfer or delegate any of its rights or obligations under this Agreement
without the prior written consent of the Lender. The Lender may transfer or assign this Agreement
or any of its rights hereunder to any third party without the consent of any Obligor (including,
without limitation, to the administrative or collateral agent for any secured credit facility entered into by the Lender prior to, on or after the date hereof, in
connection with the security arrangements relating thereto), and any such transfer or assignment
shall be binding on all of the Obligors, and any such assignee of the Lender shall be entitled to
enforce all the rights of the Lender hereunder so transferred or assigned to such assignee.

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     Section 7.5 Counterparts

     This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by telecopy), each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.
Signature pages may be detached from multiple counterparts and attached to a single counterpart so
that all signature pages are attached to the same document. Delivery of an executed counterpart by
telecopy shall be effective as delivery of a manually executed counterpart.

     Section 7.6 Severability

     Any provision of this Agreement that 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.

     Section 7.7 Section Headings

     The Article and Section titles contained in this Agreement are, and shall be, without
substantive meaning or content of any kind whatsoever and are not part of the agreement of the
parties hereto.

     Section 7.8 Entire Agreement

     This Agreement together with the other Loan Documents represents the entire agreement of the
parties and supersedes all prior agreements and understandings relating to the subject matter
hereof.

     Section 7.9 Governing Law

     THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT
TO ANY PRINCIPLES OF CONFLICTS OF LAWS THEREOF THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF
ANY OTHER JURISDICTION.

     Section 7.10 Reinstatement

     Each Pledgor further agrees that, if any payment made by any Loan Party or other Person and
applied to the Secured Obligations is at any time annulled, avoided, set aside, rescinded,
invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or
repaid, or the proceeds of Collateral are required to be returned by the Secured Party to such Loan
Party, its estate, trustee, receiver or any other party, including that Pledgor, under any
bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such
payment or repayment, any Lien 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

15

 

thereto the Lien granted hereby or other Collateral securing such liability hereunder shall
have been released or terminated by virtue of such cancellation or surrender), such Lien or other
Collateral shall be reinstated in full force and effect, and such prior cancellation or surrender
shall not diminish, release, discharge, impair or otherwise affect any Lien or other Collateral
securing the obligations of that Pledgor in respect of the amount of such payment.

     In witness whereof, each of the undersigned has caused this Pledge and Security
Agreement to be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	 	Pledgors:

ATLAS CONCRETE INC

 	 
	 	By:  	/s/ Gerald A. Berkhold 
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	President 	 
	 

	 	 	 	 	 
	 	WILD ROSE HOLDINGS LTD.

 	 
	 	By:  	/s/ Gerald A. Berkhold 
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	Director 	 
	 

	 	 	 	 	 
	 	ALBERTA INVESTMENTS INC.

 	 
	 	By:  	/s/ Gerald A. Berkhold 
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	President 	 
	 

Lender

U.S. Concrete, Inc.

	 	 	 	 	 
	 	 	 
	By:  	/s/ Robert D. Hardy 	 	 
	 	Robert D. Hardy 	 	 
	 	Senior Vice President and
Chief Financial Officer 	 	 

16

 

	 	 	 	 	 

Each of the undersigned is an issuer of Pledged Collateral and agrees to be bound by the terms of
this Agreement relating to the Pledged Collateral issued by it and shall comply with such terms
insofar as such terms are applicable to it.

	 	 	 	 	 
	 	ALBERTA INVESTMENTS INC

 	 
	 	By:  	/s/ Gerald A. Berkhold 
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	President 	 
	 

	 	 	 	 	 
	 	ALLIANCE HAULERS INC.

 	 
	 	By:  	/s/ Gerald A. Berkhold 
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	Director 	 
	 

	 	 	 	 	 
	 	ATLAS INVESTMENTS INC.

 	 
	 	By:  	/s/ Gerald A. Berkhold 
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	Director 	 
	 

	 	 	 	 	 
	 	REDI-MIX MANAGEMENT, INC.

 	 
	 	By:  	/s/ Gerald A. Berkhold 
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	President 	 
	 

	 	 	 	 	 
	 	INGRAM ENTERPRISES MANAGEMENT, INC.

 	 
	 	By:  	/s/ Gerald A. Berkhold 
 	 
	 	 	Gerald A. Berkhold 	 
	 	 	President 	 

17

 

	 	 	 	 	 

Schedule 1

Filings

 

 

Schedule 2

Pledgor Information

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Jurisdiction of	 	 	 	 	 	Chief Executive	 	Principal Place
	Legal Name	 	Organization	 	                    No.	 	Former Name	 	Officer	 	of Business
	Atlas Concrete Inc.

	 	Alberta, Canada
	 	 	 	___
	 	Gerald A. Berkhold
	 	Alberta
	Wild Rose Holdings Ltd.

	 	Jersey
	 	 	 	___
	 	Gerald A. Berkhold
	 	New Jersey
	Alberta Investments Inc.

	 	Texas
	 	 	 	___
	 	Gerald A. Berkhold
	 	Texas

 

 

Schedule 3

Pledged Collateral

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Owner	 	Issuer	 	Class of Stock	 	No. of Shares	 	Certificate Nos.	 	Percent Owned	 	Percent Pledged
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Atlas Concrete Inc.

	 	Alberta Investments
Inc. (a Texas
corporation)
	 	Series A Preferred
Stock
	 	 	15	 	 	3-CB
	 	 	100	%	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Wild Rose Holdings Ltd.

	 	Alberta Investments
Inc. (a Texas
corporation)
	 	Series B Common
Stock
	 	 	330	 	 	2-PA
	 	 	100	%	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Wild Rose Holdings Ltd.

	 	Alliance Haulers,
Inc. (a Texas
corporation)
	 	Common Stock
	 	 	1,000	 	 	 	002	 	 	 	100	%	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Alberta Investments Inc.

	 	Atlas Investments,
Inc. (a Nevada
corporation)
	 	Common Stock
	 	 	10	 	 	 	02	 	 	 	100	%	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Alberta Investments Inc.

	 	Redi-Mix
Management, Inc. (a
Texas corporation)
	 	Common Stock
	 	 	1,000	 	 	 	01	 	 	 	100	%	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Alberta Investments Inc.

	 	Ingram Enterprises
Management, Inc. (a
Texas corporation)
	 	Common Stock
	 	 	1,000	 	 	 	01	 	 	 	100	%	 	 	100	%

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