Document:

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                                                                    Exhibit 10.2

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS. THIS NOTE MAY NOT BE TRANSFERRED EXCEPT (A)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR (B) IN A TRANSACTION
WHICH IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND APPLICABLE STATE SECURITIES LAWS. THIS NOTE IS SUBJECT TO THAT CERTAIN NOTE
AND WARRANT PURCHASE AGREEMENT, DATED AS OF AUGUST 5, 2003, BY AND AMONG THE
COMPANY AND THE PURCHASERS NAMED THEREIN.

                       14% SUBORDINATED PIK NOTE DUE 2008

$_____________

Note Issue Date: August 5, 2003                                     Note No. ___

         For value received, United States Lime & Minerals, Inc., a Texas
corporation (the "Company"), promises to pay to _________________ (the
"Holder"), the principal amount of $5,500,000 (the "Original Principal Amount"),
plus such additional amounts of principal as may be added, from time to time, to
this Note pursuant to Section 1.3 below (the "Capitalized Principal Amount" and,
together with the Original Principal Amount, the "Total Principal Amount"),
together with interest on the unpaid balance of the Total Principal Amount from
time to time outstanding, and interest on all past due amounts, both principal
and accrued interest, all as provided in this 14% Subordinated PIK Note Due 2008
(this "Note"). All payments shall be made in lawful money of the United States
of America at the principal offices of the Company or, at the option of the
Company, may be made by certified or official bank check made payable to the
order of the Holder and mailed to the Holder at the Holder's address set forth
on the signature page hereof or by wire transfer of immediately available funds
to an account designated by the Holder. This Note is one of a series of Notes
issued pursuant to that certain Note and Warrant Purchase Agreement, dated as of
August 5, 2003, by and among the Company and the Purchasers listed on Schedule A
thereto (the "Note and Warrant Purchase Agreement"). In addition to the terms
and conditions of the Note and Warrant Purchase Agreement, this Note is subject
to the following terms and conditions:

1.       Payment of Interest.

         1.1      Interest will accrue on the unpaid Total Principal Amount and
all past due amounts at a rate per annum equal to 14.0 percent (computed for the
actual number of days elapsed on the basis of a year of 360 days).

         1.2      The Company will pay accrued interest (i) quarterly in
arrears, commencing on September 30, 2003 and continuing on each December 31,
March 31,

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June 30 and September 30 thereafter, (ii) on the Maturity Date (as defined in
Section 2), and (iii) thereafter on demand.

         1.3      So long as no Event of Default (as defined in the Note and
Warrant Purchase Agreement) has occurred and is continuing, prior to the
Maturity Date the Company may elect not to pay in cash a portion of any interest
payment that constitutes interest on this Note at a rate per annum of up to two
percent, in which case such portion of such interest payment shall compound,
effective as of such interest payment date, by adding such accrued and unpaid
interest to the principal amount of this Note as Capitalized Principal Amount
and accruing interest on the Total Principal Amount, including such Capitalized
Principal Amount, resulting thereafter. The Company shall be deemed to have
elected to compound a portion of each interest payment that constitutes interest
on this Note at a rate per annum of two percent unless the Company gives the
Holder written notice at least 10 days' prior to the next succeeding interest
payment date that it intends to pay all or a portion of such interest in cash on
such interest payment date. So long as an Event of Default is continuing, the
Company shall pay all interest in cash.

2.       Maturity Date. The Company agrees to pay in full the Total Principal
Amount, and any interest accrued and unpaid thereon and all other unpaid amounts
owing under this Note, on August 5, 2008 (the "Maturity Date").

3.       Prepayment.

         3.1      The Company shall be entitled voluntarily to prepay the
Original Principal Amount, in whole at any time or in part, consisting of
$10,000 or multiples thereof, from time to time, on or after August 5, 2005 (the
"Permitted Prepayment Date"). Except as set forth in Section 3.2, in the event
of such voluntary prepayment of the Original Principal Amount on or after the
Permitted Prepayment Date, or any prepayment prior to the Permitted Prepayment
Date in the event that the then outstanding Original Principal Amount is
accelerated pursuant to Section 5, the Holder shall be entitled to receive
together with such prepayment of the Original Principal Amount so prepaid, (i)
accrued and unpaid interest on the Original Principal Amount so prepaid through
the date of prepayment and (ii) a prepayment premium equal to four percent
multiplied by the portion of the Original Principal Amount that is being prepaid
(the "Prepayment Premium"). If the Company elects to prepay all or any portion
of the Original Principal Amount, the Company shall furnish written notice to
the Holder with respect to such prepayment not less than 10 days prior to the
date of prepayment. Such notice shall specify the amount of the Original
Principal Amount to be prepaid on such date.

         3.2

                  (a)      In the event that the Company elects to prepay the
Original Principal Amount of the Subordinated Note (as defined in Section
4.1(g)) held by Credit Trust s.a.l. (the "Credit Trust Note"), in whole at any
time or in part, from time to time, before the Permitted Prepayment Date (except
for a prepayment pursuant to the exercise of the Foreclosure Prepayment Right as
provided in Section 9.2), then as a condition of

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any such prepayment of the Credit Trust Note, the Company shall offer to prepay
the Original Principal Amount of all Subordinated Notes then outstanding to the
same extent and proportion, based upon the Original Principal Amount of the
Credit Trust Note and of each of the other Subordinated Notes, and on the same
terms as the prepayment of the Original Principal Amount of the Credit Trust
Note except that the Holder of such other Subordinated Note will be entitled to
receive together with such prepayment of the Original Principal Amount so
prepaid a prepayment premium equal to two percent multiplied by the portion of
the Original Principal Amount that is being prepaid. The closing of the
prepayment of any of the Original Principal Amount of the Credit Trust Note
shall take place concurrently with the closing of the prepayment of that portion
of the Original Principal Amount of the Subordinated Note elected to be prepaid
by the Holder.

                  (b)      In the event that the Company elects to prepay the
Original Principal Amount of any Subordinated Notes, in whole at any time or in
part, from time to time on or after the Permitted Prepayment Date (except for a
prepayment pursuant to the exercise of the Foreclosure Prepayment Right as
provided in Section 9.2), then as a condition of, and concurrently with, any
such prepayment, the Company will prepay the Original Principal Amount of all
Subordinated Notes then outstanding to the same extent and proportion, based
upon the Original Principal Amount of each Subordinated Note; provided; however,
that the Holders of the Subordinated Notes other than the Credit Trust Note will
in every such case be entitled to receive together with such prepayment of the
Original Principal Amount so prepaid the Prepayment Premium and, in no event,
will Credit Trust s.a.l be entitled to payment of any Prepayment Premium.

         3.3      The Company shall be entitled voluntarily to prepay the
Capitalized Principal Amount in whole at any time or in part, from time to time.
No Prepayment Premium or other penalty shall be due with respect to any such
prepayment of Capitalized Principal Amount. Partial prepayments of the
Capitalized Principal Amount shall be applied first to accrued but unpaid
interest on the Capitalized Principal Amount being prepaid, and next to
principal. If the Company elects to prepay all or any portion of the Capitalized
Principal Amount, the Company shall furnish written notice to the Holder with
respect to each prepayment not less than 10 days prior to the date of
prepayment. Such notice shall specify the amount of the Capitalized Principal
Amount to be prepaid on such date.

4.       Subordination.

         4.1      As used in this Note, the following terms shall have the
following meanings:

                  (a)      "Company Group" shall mean and include each of the
Company, Texas Lime Company, a Texas corporation, and Arkansas Lime Company, an
Arkansas corporation.

                  (b)      "Senior Creditors" shall mean and include all of the
holders for the time being of the Senior Debt or any portion of it.

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                  (c)      "Senior Debt" shall mean and include (i) all debt
listed on Exhibit A hereto and (ii) all other duties, obligations, indebtedness
and other liabilities (whether direct or indirect, liquidated or contingent,
presently existing or arising in the future) of the Company to whomsoever owed
which are secured by liens upon or security interests in any assets of the
Company and/or any of its subsidiaries; provided, however, in no event shall it
include any of the Subordinated Debt if any of such Subordinated Debt becomes
secured.

                  (d)      "Senior Debt Documents" shall mean, collectively, any
agreement, document, or instrument which evidences, secures or otherwise
pertains to any of the Senior Debt.

                  (e)      "Senior Notes" shall mean the promissory notes
evidencing the Senior Debt, as amended, restated or otherwise in effect from
time to time and any other promissory notes or similar evidences of indebtedness
now or hereafter evidencing the Senior Debt, as the same may in each case be
amended, restated or otherwise in effect from time to time.

                  (f)      "Standstill Period" shall mean the period of one year
commencing upon the occurrence of any Subordinated Debt Default; provided,
however, that the Standstill Period shall toll during the pendency of any
bankruptcy proceeding under the Federal bankruptcy laws or otherwise (as now or
hereafter in effect) with respect to the Company.

                  (g)      "Subordinated Debt" shall mean the Total Principal
Amount of and prepayment premium, if any, and interest on this Note and any and
all other indebtedness and obligations now or hereafter existing or arising
which are due under or evidenced by this Note and all of the other Notes issued
under the Note and Warrant Purchase Agreement (collectively, the "Subordinated
Notes").

                  (h)      "Subordinated Debt Default" shall mean any default by
the Company on account of any payment due under the Subordinated Debt.

                  (i)      "Subordinated Debt Documents" shall mean,
collectively, any agreement, document, or instrument which evidences, secures or
otherwise pertains to any of the Subordinated Debt.

         4.2      The Holder and the Company each jointly and severally covenant
and agree that the Subordinated Debt is and shall be subordinate, to the extent
and in the manner hereinafter set forth, in right of payment to the irrevocable
prior payment in full and performance of all present and future duties,
obligations, indebtedness and liabilities (whether direct or indirect,
liquidated or contingent, presently existing or arising in the future) under or
in respect of the Senior Debt in any amount now or hereafter existing, whether
in respect of the loans and other extensions of credit comprising the Senior
Debt or in respect of Senior Debt Documents and whether for principal, premium,
interest accruing (including without limitation interest accruing after the
initiation of any Proceeding (as defined in Section 4.7(a) hereof)), fees,
expenses or otherwise.

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         4.3      In furtherance of the foregoing, the Holder agrees that any
and all Senior Debt Documents may be modified, amended, supplemented or restated
in any manner and at any time without obtaining the consent of or providing
notice to the Holder.

         4.4      Nothing in this Section 4 shall limit or affect (i) the
issuance to the Holder hereof of the Warrant (as defined in the Note and Warrant
Purchase Agreement), (ii) the issuance by the Company of Warrant Shares (as
defined in the Note and Warrant Purchase Agreement) upon the exercise of the
Warrant, or (iii) any adjustment contemplated by the anti-dilution provisions of
the Warrant; provided, however, that, if the Company is in default or the
payment by the Company of the Aggregate Repurchase Price (as defined in the
Warrant) would cause a default under or with respect to any Senior Debt, the
Holder shall not exercise any right to "put" to or compel the Company to
repurchase or redeem any Warrant Shares owned by the Holder.

         4.5      The Holder by acceptance of this Note hereby covenants and
agrees to give to each holder of Senior Debt hereinabove identified in clause
(i) of the definition of "Senior Debt," and each other holder of Senior Debt the
identity of whom shall have been furnished to the Holder in writing, prompt
written notice of any Subordinated Debt Default, which notice shall be given at
the same time as notice is given by the Holder to the Company. The Holder agrees
not to ask for or demand, directly or indirectly, in cash or other property or
by set-off, purchase, redemption or in any other manner (including without
limitation from or by way of collateral), payment of all or any of the
Subordinated Debt during any Standstill Period. Without limiting the generality
and in furtherance of the foregoing, during any Standstill Period the Holder
shall not, directly or indirectly, under any circumstances:

                  (a)      declare an Event of Default;

                  (b)      accelerate, for any reason whatsoever, the maturity
of any amount due and owing on the Subordinated Debt;

                  (c)      assert, collect, sue upon, or enforce all, or any
part of, the Subordinated Debt;

                  (d)      take any enforcement action against the Company or
any of the properties or assets of the Company with respect to the Subordinated
Debt; or

                  (e)      accept any collateral as security for the
Subordinated Debt.

         4.6      Notwithstanding the provisions of Sections 4.1 through 4.5
hereof, the Company shall be permitted to pay to the Holder, and the Holder
shall be permitted to receive, regularly scheduled payments of interest at a
rate per annum not in excess of the rate of interest stated in this Note and
prepayments of the Original Principal Amount and the Capitalized Principal
Amount in accordance with Section 3 of this Note, but only if (i) no event of
default has occurred and is continuing under or with respect to any of the
Senior Debt Documents and (ii) any such payment, after giving effect thereto,
would not result in the occurrence of any such event of default referenced in
(i) above.

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         4.7      In furtherance of the foregoing, the Holder covenants and
agrees as follows:

                  (a)      Upon any distribution of all or any of the assets of
the Company to creditors of the Company upon the dissolution, winding-up,
liquidation, arrangement or reorganization of the Company (as the case may be),
whether in any bankruptcy, insolvency, arrangement, reorganization or
receivership proceeding or upon an assignment for the benefit of creditors or
any other marshalling of the assets and liabilities of the Company (all of the
foregoing collectively, "Proceedings"), or in the event that all amounts owing
under any of the Senior Debt have become, or have been declared to be, due and
payable (and have not been paid in accordance with their respective terms), then
any payment or distribution of any kind (whether in cash, property or
securities) which otherwise would be payable or deliverable upon or with respect
to the Subordinated Debt shall be paid or delivered directly to a custodian
designated in writing by the holders of a majority in principal amount of the
Senior Debt, for application pro rata (in the case of cash) to or as collateral
(in the case of non-cash property or securities) for the payment or prepayment
of the Senior Debt to the extent necessary to pay the Senior Debt in full in
accordance with Section 4.2.

                  (b)      If any Proceeding is commenced by or against the
Company, each Senior Creditor is hereby irrevocably authorized and empowered (in
its own name or in the name of the Holder or otherwise), but shall have no
obligation, to demand, sue for, collect and receive every payment or
distribution referred to in Section 4.7(a) hereof and give receipts therefor and
to file claims and proofs of claim and take such other action (including without
limitation voting the Subordinated Debt) as such Senior Creditor may deem
necessary or advisable for the exercise or enforcement of any of the rights or
interests of such Senior Creditor hereunder.

                  (c)      The Holder shall not ask for or demand, directly or
indirectly, any guaranty, suretyship, or security or collateral, or accept any
grant of any guaranty, suretyship, or security interest in, or transfer of, any
property or assets, whether now owned or hereafter acquired, of any member of
the Company Group as collateral for the Subordinated Debt, except for guaranties
and sureties in connection with which the guarantor or surety waives its right
of subrogation against each Senior Creditor. Any grant of a guaranty,
suretyship, or security interest or transfer of property or assets by a member
of the Company Group in favor of the Holder in violation of this Section 4.7(c)
shall be deemed null and void and have no force or effect and any such grant or
transfer prior to the payment in full of the Senior Debt in accordance with
Section 4.2, or otherwise contrary to the provisions of this Section 4, shall be
received by the Holder in trust for the pro rata benefit of the Senior Creditors
and shall be disposed of in the manner provided in Section 4.7(a) hereof.

         4.8      The Holder covenants and agrees that during any Standstill
Period the Holder will not commence or join with any creditor in commencing any
Proceeding or any other proceeding to enforce the Holder's rights with respect
to the Subordinated Debt.

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         4.9      The Holder agrees that no payment or distribution to any
Senior Creditor pursuant to the provisions of this Section 4 shall entitle the
Holder to exercise any rights of subrogation in respect thereof until the Senior
Debt shall have been irrevocably paid and satisfied in full in accordance with
Section 4.2.

         4.10     All rights and interests of the Senior Creditors, and all
agreements and obligations of the Holders and the Company, under this Section 4
shall remain in full force and effect irrespective of:

                  (a)      any lack of validity or enforceability of the Senior
Debt Documents;

                  (b)      any change in the time, manner or place of payment
of, or in any other term of, all or any of the Senior Debt, or any other
amendment or waiver of or any consent to departure from the Senior Debt
Documents;

                  (c)      any exchange, release or non-perfection of any
collateral, or any release or amendment or waiver of or consent to departure
from any guaranty, for all or any of the Senior Debt;

                  (d)      any other circumstance which might otherwise
constitute a defense available to, or a discharge of the Company with respect to
the Senior Debt or the Holder with respect to this Section 4; or

                  (e)      any increase in the amount of the Senior Debt.

         4.11     This Section 4 is a continuing agreement and shall (i) remain
in full force and effect until all of the Senior Debt shall have been
irrevocably paid in full in accordance with Section 4.2, (ii) be binding upon
the Holder and the Company and their respective permitted successors and
assigns, and (iii) inure to the benefit of and be enforceable directly by the
Senior Creditors, the Holder, the Company and their respective permitted
successors, transferees and assigns. Without limiting the generality of the
foregoing, each Senior Creditor may assign or otherwise transfer any of the
Senior Notes held by it or any other evidence of the Senior Debt held by it to
any other person or entity, and such other person or entity shall thereupon
become vested with all the rights in respect thereof granted to the Senior
Creditors herein or otherwise. Each of the Senior Creditors is hereby expressly
declared to be a third-party beneficiary of this Section 4.

         4.12     The provisions of this Section 4 subordinating the
Subordinated Debt are solely for the purpose of defining the relative rights of
the Senior Creditors and the Holder and shall not impair, as between the Holder
and the Company, the obligation of the Company to pay the Subordinated Debt to
the Holder strictly in accordance with its terms. Nothing contained in this Note
shall be deemed to confer any rights upon the Company with respect to either the
Senior Debt or the Subordinated Debt.

5.       Covenants; Events of Default. This Note is subject to those certain
covenants made by the Company in the Note and Warrant Purchase Agreement. The
Total Principal Amount of the Subordinated Notes, together with any interest
accrued but

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unpaid thereon, shall become immediately due and payable upon declaration to
such effect given in writing by the Majority Purchasers (as defined in the Note
and Warrant Purchase Agreement ) after the occurrence and during the
continuation of an Event of Default; provided, however, that upon the occurrence
of an Event of Default described in Section 6.9 or Section 6.10 of the Note and
Warrant Purchase Agreement such Total Principal Amount, together with interest
accrued but unpaid thereon, shall become immediately due and payable
automatically and without declaration and notice of any kind.

6.       Registration of Note and Note Ledger. The Company shall maintain at its
principal executive offices a register in which it shall register this Note and,
immediately after any permitted transfer in accordance with Section 9, any New
Note (as defined below). The Company shall maintain a note ledger with respect
to this Note and any New Note, which ledger shall present the Total Principal
Amount immediately after any addition of Capitalized Principal Amount to the
Total Principal Amount, the Original Principal Amount then outstanding, the
Capitalized Principal Amount then outstanding, and any prepayment made.

7.       Loss, Theft, Destruction or Mutilation of This Note. Upon receipt of
evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Note and, in the case of any such loss, theft or
destruction, upon receipt of an indemnity agreement or other indemnity
reasonably satisfactory to the Company or, in the case of any such mutilation,
upon surrender and cancellation of such mutilated Note, the Company shall issue
and deliver within five business days a new Note, of like tenor, in lieu of the
lost, stolen, destroyed or mutilated Note.

8.       Governing Law. This Note and all acts and transactions pursuant hereto
and the rights and obligations of the parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of Texas,
without giving effect to principles of conflicts of law and choice of law that
would cause the laws of any other jurisdiction to apply.

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9.       Successors and Assigns.

         9.1      Except as set forth in Section 9.2, the Holder may not sell,
assign, pledge, dispose of or otherwise transfer this Note, or any interest
herein, without the prior written consent of the Company, which consent will not
be unreasonably withheld. Subject to the preceding sentence, this Note may be
transferred only upon surrender of this Note at the Company's principal
executive offices for registration of transfer accompanied by (i) a written
instrument of transfer in form satisfactory to the Company duly executed by the
Holder, (ii) an opinion satisfactory to the Company with respect to the transfer
in accordance with Federal and state securities laws, and (iii) a Joinder to the
Note and Warrant Purchase Agreement in the form of Schedule C to the Note and
Warrant Purchase Agreement duly executed by the permitted transferee. Thereupon,
a new note (a "New Note") in the same Total Principal Amount with the same terms
as this Note will be issued to, and registered in the name of, the transferee.
Interest and principal are payable only to the registered holder of this Note or
any New Note. The terms and conditions of this Note shall inure to the benefit
of and be binding upon the respective successors and permitted assigns of the
parties.

         9.2      The Holder may, upon prior written notice to the Company and
in accordance with the terms of this Section 9.2 and Federal and state
securities laws, transfer this Note, or any interest herein, in connection with
a bona fide pledge of this Note, or such interest herein, without the prior
written consent of the Company. In the event that the Holder pledges this Note,
or any interest herein, (such pledged Note or interest, the "Third Party
Collateral Security") to a third party (the "Pledgee") and the Pledgee at any
time thereafter exercises its right to foreclose on the Third Party Collateral
Security (a "Foreclosure Event"), the Holder shall give the Company and each
other Holder of a Subordinated Note then outstanding written notice of such
Foreclosure Event (the "Notice"). Holders of the other Subordinated Notes then
outstanding shall have the right, pro rata based upon the Total Principal Amount
of the Subordinated Notes owned by such other Holders, or in such other
proportion as such Holders may agree, for a period of 10 days following receipt
of the Notice (the "Purchase Period") to purchase all or a portion of this Note
from the Pledgee for the Total Principal Amount or the applicable portion of the
Total Principal Amount, as the case may be, by giving written notice to the
Holder of the exercise of such right, with a copy to the Company, within the
Purchase Period. If the Holders of the other Subordinated Notes then outstanding
do not elect to purchase this Note in accordance with the previous sentence,
then the Company shall have the right for a period of 10 days following the
expiration of the Purchase Period (the "Foreclosure Payment Period") to prepay
the balance of the Total Principal Amount of this Note in whole or in part,
whether or not such prepayment occurs prior to the Permitted Prepayment Date,
without payment of any Prepayment Premium (the "Foreclosure Prepayment Right").
In the event that the Company does not exercise its Foreclosure Prepayment Right
in full, the Company shall have the right, for a period of 10 days following the
expiration of the Foreclosure Payment Period, to direct that the Pledgee sell
this Note for an amount equal to the unpaid balance of the Total Principal
Amount to an affiliate of the Company. The closing of any such sale shall take
place within 10 days following the expiration of the Foreclosure Payment Period.
In the event that the Company does not exercise its Foreclosure Prepayment Right
in full and this

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Note is not purchased by an affiliate, then the Pledgee shall be free to sell
this Note in accordance with Federal and state securities laws. Nothing in this
Section 9.2 precludes the Company, its affiliates and the Holders of the other
then outstanding Subordinated Notes from allocating the right to purchase this
Note among themselves in such manner as they may mutually agree. Any transfer of
this Note pursuant to this Section 9.2 shall be made in accordance with the
procedures set forth in Section 9.1 (other than the first sentence thereof).

10.      Amendment or Waiver. Subject to Section 7.5 of the Note and Warrant
Purchase Agreement, any provision of this Note may be amended and the observance
thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only upon the written consent of the Company
and the Holder. No consent shall be required of any other person, including any
Senior Creditor, to any such amendment or waiver. No delay or failure in
exercising any rights or remedies under or with respect to this Note shall
operate as a waiver of any rights or remedies of the Holder. The Holder's right
to accelerate this Note for any late payment or the Company's failure to timely
fulfill its other obligations hereunder or under the other Subordinated Debt
Documents shall not be waived or deemed waived by the Holder by the Holder's
having accepted a late payment or late payments in the past or the Holder
otherwise not accelerating this Note or exercising other remedies for the
Company's failure to timely perform its obligations hereunder or under the other
Subordinated Debt Documents.

11.      Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (i) upon personal delivery to the
party to be notified; (ii) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient, if not, then on the next business
day; (iii) five days after having been sent by registered or certified mail,
return receipt requested, postage prepaid; (iv) if the Holder is located within
the continental United States, the next business day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt; or (v) if the Holder is located outside of the
continental United States, the third business day after deposit with an
internationally recognized courier, with written verification of receipt. All
communications shall be sent to the Company at the address as set forth on the
signature page hereof and to the Holder at the address set forth on the
signature page hereof, or at such other address as the Company or the Holder may
designate by 10 days' advance written notice to the other party hereto.

12.      Titles and Subtitles. The titles of the sections and subsections of
this Note are for convenience of reference only and are not to be considered in
construing this Note.

13.      Counterparts. This Note may be executed in two counterparts, each of
which shall be an original, but both of which together shall constitute one
instrument.

14.      Benefits of this Agreement. Subject to Section 4, nothing in this Note
shall be construed to give any person or corporation other than the Company and
the Holder any legal or equitable right, remedy or claim under this Note and
this Note shall be for the sole and exclusive benefit of the Company and the
Holder and any other permitted holder or holders of this Note.

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15.      Shareholders, Officers and Directors Not Liable. In no event shall any
shareholder, officer or director of the Company be liable for any amounts due or
payable pursuant to this Note.

16.      Expenses. In addition to all other sums payable under this Note, the
Company also agrees to pay to the Holder, on demand, all costs and expenses
(including reasonable attorneys' fees, disbursements and expenses) incurred by
the Holder in connection with the enforcement of the Company's obligations under
this Note.

17.      Presentment. The Company hereby waives presentment for payment, demand,
protest, notice of intent to accelerate and notice of acceleration, notice of
protest, and notice of dishonor, diligence in collecting and the filing of suit
for the fixing of liability and all other notices of any kind whatsoever to
which it may be entitled under applicable law or otherwise, except for any
notice to which the Company may be entitled under this Note.

18.      Maximum Lawful Rate of Interest. The rate of interest payable under
this Note shall in no event exceed the maximum rate permissible under applicable
law. If the rate of interest payable on this Note is ever reduced as a result of
this Section 18 and at any time thereafter the maximum rate permitted under
applicable law exceeds the rate of interest then provided for in this Note, then
the rate provided for in this Note shall be increased to the maximum rate
provided for under applicable law for such period as is required so that the
total amount of interest received by the Holder is at least that which would
have been received by the Holder but for the operation of the first sentence of
this Section 18.

19.      Entire Agreement. This Note and the other Subordinated Debt Documents
embody the entire agreement and understanding between the Holder and the Company
and other parties with respect to their subject matter and supersede all prior
conflicting or inconsistent agreements, consents and understandings relating to
such subject matter. The Company acknowledges and agrees that there is no oral
agreement between the Company and the Holder which has not been incorporated in
this Note and the other Subordinated Debt Documents.

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<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Note to be duly
executed and delivered by its authorized officer, as of the date first above
written.

                                    UNITED STATES LIME & MINERALS, INC.

                                    By:_________________________________________
                                    Name:  Timothy W. Byrne
                                    Title: President and Chief Executive Officer

                                    Address: 13800 Montfort Drive, Suite 330
                                             Dallas, Texas 75240

                                    Telephone: (972) 991-8400

                                    Facsimile: (972) 385-1805

AGREED TO AND ACCEPTED:

By:_______________________________________
Name:_____________________________________
Title:____________________________________

Address:

Telephone:
Facsimile:________________________________

<PAGE>

                                    EXHIBIT A

                               Listed Senior Debt

         All indebtedness, interest, fees, costs and expenses now existing or
hereafter arising under or in connection with the following documents, as the
same may be amended, restated or otherwise modified and in effect from time to
time:

         1.       The Credit Agreement, dated as of April 22, 1999, as amended
by the First Amendment to Credit Agreement, dated as of December 27, 2000, a
letter agreement dated March 4, 2003, and the Third Amendment to Credit
Agreement, dated as of August 5, 2003, each as amended, restated or otherwise
modified and in effect from time to time, by and among the members of the
Company Group, the lenders referred to therein and National City Bank (successor
to Wachovia Bank, National Association) pursuant to which such lenders have
agreed to make loans to and otherwise provide credit to or for the benefit of
the members of the Company Group.

         2.       The Loan and Security Agreement, dated March 3, 2003, as
amended by the First Amendment to Loan and Security Agreement, dated as of
August 5, 2003, as amended, restated or otherwise modified and in effect from
time to time, by and among the members of the Company Group and National City
Bank.<PAGE>

                                                      DRAFT DATED AUGUST 2, 2003

                                                                    Exhibit 10.3

THIS WARRANT AND THE WARRANT SHARES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS. NEITHER THIS WARRANT NOR THE WARRANT SHARES ISSUABLE UPON EXERCISE HEREOF
MAY BE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES
LAWS, OR (B) IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS. THIS
WARRANT IS SUBJECT TO THAT CERTAIN NOTE AND WARRANT PURCHASE AGREEMENT, DATED AS
OF AUGUST 4, 2003, BY AND AMONG THE COMPANY AND THE PURCHASERS NAMED THEREIN.

Warrant Issue Date: August 5, 2003                            Warrant No. ______

                         COMMON STOCK PURCHASE WARRANT

         For value received, United States Lime & Minerals, Inc., a Texas
corporation (the "Company"), hereby certifies that __________ (the "Holder") is
entitled to purchase from the Company, at any time, or from time to time, during
the Warrant Exercise Term (as defined below), in whole or in part, up to
_________ shares (the "Warrant Shares") of the Company's common stock, par value
$0.10 per share (the "Common Stock"), at a price per share equal to $3.85, as
may be adjusted at any time, or from time to time, pursuant to Section 4 below
(the "Exercise Price"). This warrant to purchase Warrant Shares (this "Warrant")
is one of a series of warrants issued pursuant to that certain Note and Warrant
Purchase Agreement, dated as of August 4, 2003, by and among the Company and the
Purchasers listed on Schedule A thereto (the "Note and Warrant Purchase
Agreement").

1.       Exercise of Warrant; Warrant Shares Put Right.

         1.1      Exercise Term. This Warrant may be exercised at the principal
executive offices of the Company during the period commencing on August 4, 2003
and ending at 5:00 p.m. local time on August 4, 2009 (the "Warrant Exercise
Term").

         1.2      Cash Exercise. The purchase rights represented by this Warrant
are exercisable by the Holder, in whole or in part, during the Warrant Exercise
Term by the surrender of this Warrant, with the form of Subscription attached
hereto as Annex A duly completed and executed by the Holder, to the Company at
its principal executive offices accompanied by payment in cash, in lawful money
of the United States of America, including by certified or official bank check
made payable to the order of the Company or by wire transfer of immediately
available funds to an account designated by the

<PAGE>

Company, of an amount equal to the Exercise Price multiplied by the number of
Warrant Shares being purchased pursuant to such exercise of the Warrant.

         1.3      Cashless Exercise. If the fair market value of one share of
the Common Stock is greater than the Exercise Price (at the date of calculation
as set forth below), then in lieu of exercising this Warrant for cash, the
Holder may elect to receive Warrant Shares equal to the value (as determined
below) of this Warrant (or the portion thereof being exercised) by surrender of
this Warrant, with the form of Subscription attached hereto as Annex A duly
completed and executed by the Holder, to the Company at its principal executive
offices, in which event the Company shall issue to the Holder a number of
Warrant Shares computed using the following formula as of the date of such
cashless exercise:

                           X = Y(A - B)
                               --------
                                   A

         Where:    X =  the number of Warrant Shares to be issued to the Holder

                   Y =  the number of Warrant Shares purchasable under the
                        Warrant or, if only a portion of the Warrant is being
                        exercised, the portion of the Warrant being exercised
                        (at the date of such calculation)

                   A =  the fair market value of one share of the Common Stock
                        (at the date of such calculation)

                   B =  the Exercise Price (as adjusted to the date of such
                        calculation)

For purposes of the above calculation, the fair market value of one share of the
Common Stock shall be determined as follows:

                  (a)      If the Common Stock is traded on a national
securities exchange or through The Nasdaq National Market or The Nasdaq SmallCap
Market, the fair market value of one share of the Common Stock shall be deemed
to be the average of the closing prices of the Common Stock on such exchange or
market over the 30 trading days ending immediately preceding the date of the
calculation set forth above;

                  (b)      If the Common Stock is not traded on a national
securities exchange or through The Nasdaq National Market or The Nasdaq SmallCap
Market, but the Common Stock is otherwise actively traded over-the-counter, the
fair market value of one share of the Common Stock shall be deemed to be the
average of the closing bid or sales price (whichever is applicable) over the 30
trading days ending immediately preceding the date of the calculation set forth
above; and

                  (c)      If there is no active public market for the Common
Stock, the fair market value of one share of the Common Stock shall be as
reasonably determined by the

                                       2

<PAGE>

Company's Board of Directors or a duly appointed committee of the Board of
Directors as of the date of the calculation set forth above (which determination
shall be described in a written notice delivered to the Holder together with the
certificate for Warrant Shares issued to the Holder).

         1.4      Partial Exercise. This Warrant may be exercised at any time,
or from time to time, during the Warrant Exercise Term for less than the full
number of Warrant Shares then remaining subject to this Warrant; provided,
however, that this Warrant may not be exercised in part for less than a whole
number of Warrant Shares. Upon any such partial exercise, the Company at its
expense will forthwith issue to the Holder a new Warrant or Warrants of like
tenor exercisable for the number of Warrant Shares as to which rights have not
been exercised (subject to adjustment as herein provided).

         1.5      Issuance of Warrant Shares. As soon as practicable after the
exercise of this Warrant, and in any event within 10 business days thereafter,
the Company, at its expense, will cause to be issued in the name of the Holder
or the Holder's nominee, or any permitted transferee of the Holder, and
delivered to the Holder or the Holder's nominee or such transferee a certificate
or certificates for the number Warrant Shares to which the Holder shall be
entitled upon such exercise, plus, in lieu of any fractional share to which the
Holder would otherwise be entitled, cash in an amount determined in accordance
with Section 4.5. In lieu of delivering a certificate or certificates for such
number of Warrant Shares, upon the Holder's instruction, the Company will
authorize its transfer agent to deliver to the Holder or the Holder's nominee,
or any permitted transferee of the Holder, such Warrant Shares through the
Delivery/Withdrawal at Custodian ("DWAC") electronic transfer system. The
Company agrees that the Warrant Shares so purchased shall be deemed to be issued
to the Holder or the Holder's nominee, or the permitted transferee of the
Holder, as the record owner of such Warrant Shares as of the close of business
on the date on which this Warrant shall have been exercised for such Warrant
Shares.

2.       Warrant Shares Put Right.

         2.1      Subject to the terms of Section 4 of the 14% Subordinated PIK
Note Due 2008 payable to the Holder (the "Note"), the Holder shall be entitled
to require the Company to repurchase any Warrant Shares that have been issued
upon exercise of this Warrant (the "Warrant Shares Put Right"), at the Aggregate
Repurchase Price (as defined below), at any time, or from time to time, on or
after the earlier of August 4, 2008 or a Change in Control (as defined in the
Note and Warrant Purchase Agreement).

         2.2      The term "Repurchase Price" shall mean the repurchase price of
one share of the Common Stock as determined below:

                  (a)      If the Common Stock is traded on a national
securities exchange or through The Nasdaq National Market or The Nasdaq SmallCap
Market, the Repurchase Price shall be deemed to be the average of the closing
prices of the Common Stock on such exchange or market over the 30 trading days
ending immediately preceding the date of receipt of the Warrant Shares Put Right
Notice (as defined below);

                                       3

<PAGE>

                  (b)      If the Common Stock is not traded on a national
securities exchange or through The Nasdaq National Market or The Nasdaq SmallCap
Market, but the Common Stock is otherwise actively traded over-the-counter, the
Repurchase Price shall be deemed to be the average of the closing bid or sales
price (whichever is applicable) over the 30 trading days ending immediately
preceding the date of receipt of the Warrant Shares Put Right Notice; and

                  (c)      If there is no active public market for the Common
Stock, the Repurchase Price shall be the greater of (i) the fair market value of
one share of the Common Stock as reasonably determined and mutually agreed to by
the Company and the Holder, without application of any minority, liquidity or
similar discounts, or (ii) the book value of one Warrant Share, determined as of
the date of receipt of the Warrant Shares Put Right Notice.

         2.3      The term "Aggregate Repurchase Price" means a number equal to
the product of the Repurchase Price multiplied by the number of Put Warrant
Shares (as defined below).

         2.4      In order to exercise the Warrant Shares Put Right, the Holder
shall give the Company written notice (the "Warrant Shares Put Right Notice")
that the Holder desires to exercise such right. The Holder shall be deemed to
have exercised the Warrant Shares Put Right on the date on which the Company
receives the Warrant Shares Put Right Notice. The Warrant Shares Put Right
Notice shall set forth (i) the number of Warrant Shares the Holder desires the
Company to repurchase (the "Put Warrant Shares") and (ii) a date of closing
which shall be not less than 10 business days nor more than 20 business days
from the date on which the Company receives the Warrant Shares Put Right Notice
(the "Closing Date").

         2.5      The closing of the purchase and sale of the Put Warrant Shares
(the "Closing") shall take place on the Closing Date at the principal executive
offices of the Company at 10:00 a.m. local time, or such other time or place as
the Company and Holder may mutually agree. At the Closing, the Company shall pay
the Aggregate Repurchase Price for the Put Warrant Shares by certified or
official bank check made payable to the order of the Holder or by wire transfer
of immediately available funds to an account designated by the Holder, against
delivery of a certificate or certificates representing the Put Warrant Shares,
together with a stock power duly endorsed to the Company.

         2.6      If the funds of the Company legally available for repurchase
of Put Warrant Shares with respect to a given Warrant Share Put Right Notice are
insufficient to repurchase all of such Put Warrant Shares, the Company shall use
any funds which are legally available for such repurchase to repurchase the
maximum possible number of such Put Warrant Shares. At any time thereafter when
additional funds of the Company become legally available for the repurchase of
such Put Warrant Shares, such funds will be used to repurchase the maximum
possible number of such Put Warrant Shares remaining with respect to such
Warrant Share Put Right Notice.

                                       4

<PAGE>

3.       Negotiability. This Warrant is, and the Warrant Shares will be, issued
upon the following terms:

         3.1      Transfer of Warrant and Warrant Shares

                  (a)      The Holder may not sell, assign, pledge, dispose of
or otherwise transfer this Warrant, or any interest therein, without the prior
written consent of the Company. Subject to the preceding sentence, this Warrant
may be transferred only upon surrender of the original Warrant at the Company's
principal executive offices for registration of transfer accompanied by a duly
executed written instrument of transfer in form satisfactory to the Company.
Thereupon, a new warrant of like tenor and date and representing the right to
purchase the Warrant Shares then remaining subject to this Warrant will be
issued to, and registered in the name of, the transferee. The terms and
conditions of this Warrant shall inure to the benefit of and be binding upon the
respective successors and permitted assigns of the parties.

                  (b)      The Holder further agrees not to make any permitted
disposition of the Warrant or the Warrant Shares unless and until:

                           (i)      there is then in effect a registration
statement under the Securities Act of 1933, as amended, and applicable state
securities laws (collectively, the "Acts") covering such proposed disposition
and such disposition is made in accordance with such registration statement; or

                           (ii)     the Holder shall have notified the Company
of the proposed disposition, and shall have furnished the Company with a
statement of the circumstances surrounding the proposed disposition and, at the
expense of the Holder or its transferee, with an opinion of counsel, reasonably
satisfactory to the Company, that such disposition will not require registration
of such securities under any of the Acts.

         3.2      Transfer Taxes. The Company shall not be required to pay any
Federal or state transfer tax or charge that may be payable in respect of any
transfer involved in the transfer or delivery of this Warrant or the Warrant
Shares including without limitation upon the issuance or delivery of
certificates (or delivery through DWAC) of any Warrant Shares issued upon
exercise hereof in a name other than that of the Holder, and shall not be
required to issue or deliver any warrant issued in replacement of this Warrant
or certificates (or delivery through DWAC) of any Warrant Shares upon the
exercise of this Warrant until any and all such taxes and charges shall have
been paid by the Holder or until the Holder has established to the Company's
reasonable satisfaction that no such tax or charge is due.

         3.3      No Rights as Shareholder. Prior to the exercise of this
Warrant, the Holder shall not be entitled to any rights of a shareholder of the
Company with respect to Warrant Shares for which this Warrant shall be
exercisable including without limitation the right to vote, to receive dividends
or other distributions (other than as set forth in Section 4.2) or to exercise
any preemptive rights, and shall not be entitled to receive any notice of any
proceedings of the Company.

                                       5

<PAGE>

4.       Adjustments.

         4.1      Adjustments Generally. In order to prevent dilution or
enlargement of the rights granted hereunder, in the specific circumstances
contemplated by this Section 4, the Exercise Price shall be subject to
adjustment at any time, or from time to time, in accordance with this Section 4.
Upon each adjustment of the Exercise Price pursuant to this Section 4, the
Holder shall thereafter be entitled to acquire upon exercise, at the Exercise
Price resulting from such adjustment, the number of Warrant Shares determined by
(i) multiplying (a) the Exercise Price in effect immediately prior to such
adjustment by (b) the number of Warrant Shares remaining issuable upon exercise
hereof immediately prior to such adjustment, and (ii) dividing the product
thereof by the Exercise Price resulting from such adjustment.

         4.2      Subdivisions, Stock Dividends and Combinations. In case the
Company shall at any time subdivide its outstanding shares of the Common Stock
into a greater number of shares (including without limitation through any stock
split effected by means of a dividend on the Common Stock which is payable in
the Common Stock), the Exercise Price in effect immediately prior to such
subdivision shall be proportionately reduced, and, conversely, in case the
outstanding shares of the Common Stock shall be combined into a smaller number
of shares, the Exercise Price in effect immediately prior to such combination
shall be proportionately increased.

         4.3      Reorganization, Reclassification, Consolidation, Merger or
Sale of Assets. If any capital reorganization or reclassification of the capital
stock of the Company, or consolidation or merger of the Company with another
corporation, or the sale of all or substantially all of its assets to another
corporation shall be effected in such a way that holders of shares of the Common
Stock shall be entitled to receive stock, securities, cash or other property
with respect to or in exchange for the Common Stock, then, as a condition of
such reorganization, reclassification, consolidation, merger or sale, lawful and
adequate provision shall be made whereby the Holder shall have the right to
acquire and receive upon exercise of this Warrant such shares of stock,
securities, cash or other property of the successor corporation that a holder of
Warrant Shares deliverable upon exercise of this Warrant would have been
entitled to receive in such reorganization, reclassification, consolidation,
merger or sale if this Warrant had been exercised immediately before such
reorganization, reclassification, consolidation, merger or sale. The foregoing
provisions shall similarly apply to successive reorganizations,
reclassifications, consolidations, mergers or sales and to the stock or
securities of any other corporation that are at the time receivable upon the
exercise of this Warrant. In all events, appropriate adjustments (as determined
by the Board of Directors of the Company) shall be made in the application of
the provisions of this Warrant with respect to the rights and interests of the
Holder after the transaction, to the end that the provisions of this Warrant
shall be applicable after that event, as near as reasonably may be, in relation
to any shares or other property deliverable after that event upon exercise of
this Warrant.

         4.4      Adjustment by Board of Directors. If any event occurs as to
which, in the opinion of the Board of Directors of the Company and as agreed by
the Holder, the

                                       6

<PAGE>

provisions of this Section 4 are not strictly applicable or if strictly
applicable would not fairly protect the rights of the Holder in accordance with
the essential intent and principles of such provisions, then the Board of
Directors may make such adjustment in the application of such provisions, in
accordance with such essential intent and principles, as it deems appropriate so
as to protect such rights as aforesaid.

         4.5      Fractional Shares. The Company shall not issue fractions of
Warrant Shares upon exercise of this Warrant or scrip in lieu thereof. If any
fraction of a Warrant Share would, except for the provisions of this Section
4.5, be issuable upon exercise of this Warrant, then the Company shall in lieu
thereof pay to the person entitled thereto an amount in cash equal to the
current value of such fraction, calculated to the nearest one-hundredth of a
Warrant Share, to be computed on the basis of the fair market value of one share
of the Common Stock in accordance with the provisions of Section 1.3.

         4.6      Certificate as to Adjustments. Whenever the Exercise Price
shall be adjusted as provided in Section 4, the Company shall promptly compute
such adjustment and furnish to the Holder a certificate setting forth such
adjustment and showing in reasonable detail the facts requiring such adjustment,
the Exercise Price that will be effective after such adjustment and the number
of Warrant Shares and the amount, if any, of other shares or property that at
the time would be received upon the exercise of this Warrant.

5.       Exchange and Replacement of this Warrant. Subject to Section 3, this
Warrant is exchangeable without expense upon the surrender hereof by the
registered Holder at the principal executive offices of the Company for a new
warrant or warrants of like tenor and date representing in the aggregate the
right to purchase the Warrant Shares in such denominations as shall be
designated by the Holder at the time of such surrender, subject to any
adjustment pursuant to Section 4. Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of
this Warrant, and, in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it, and reimbursement to the Company of all
reasonable expenses incidental thereto, and upon surrender and cancellation of
this Warrant, if mutilated, the Company will make and deliver a new warrant of
like tenor for the Warrant Shares then subject to this Warrant.

6.       Reservation of Warrant Shares. The Company shall at all times reserve
and keep available out of its authorized shares of Common Stock, solely for the
purpose of issuance upon the exercise of this Warrant, such number of Warrant
Shares as shall be issuable upon the exercise hereof. The Company covenants and
agrees that, upon issuance in accordance with the terms of this Warrant, the
Warrant Shares shall be duly authorized, validly issued, fully paid and
nonassessable.

7.       Governing Law. This Warrant and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of Texas,
without giving effect to principles of conflicts of law and choice of law that
would cause the laws of any other jurisdiction to apply.

                                       7

<PAGE>

8.       Amendment or Waiver. Subject to Section 7.5 of the Note and Warrant
Purchase Agreement, any provision of this Warrant may be amended and the
observance thereof may be waived (either generally or in a particular instance
and either retroactively or prospectively), only upon the written consent of the
Company and the Holder. No consent shall be required of any other party,
including any Senior Creditor (as defined in the Note), to any such amendment or
waiver.

9.       Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (i) upon personal delivery to the
party to be notified; (ii) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient, if not, then on the next business
day; (iii) five days after having been sent by registered or certified mail,
return receipt requested, postage prepaid; or (iv) if the Holder is located
within the continental United States, the next business day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt; or (v) if the Holder is located outside of the
continental United States, the third business day after deposit with an
internationally recognized courier, with written verification of receipt. All
communications shall be sent to the Company at the address as set forth on the
signature page hereof and to the Holder at the address set forth on the
signature page hereof, or at such other address as the Company or the Holder may
designate by 10 days' advance written notice to the other party hereto.

10.      Titles and Subtitles. The titles of the sections and subsections of
this Warrant are for convenience of reference only and are not to be considered
in construing this Warrant.

11.      Counterparts. This Warrant may be executed in two counterparts, each of
which shall be an original, but both of which together shall constitute one
instrument.

12.      Benefits of this Warrant. Subject to Section 4 of the Note, nothing in
this Warrant shall be construed to give any person or corporation other than the
Company and the Holder any legal or equitable right, remedy or claim under this
Warrant and this Warrant shall be for the sole and exclusive benefit of the
Company and the Holder and any other permitted holder or holders of the Warrant
or the Warrant Shares.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       8
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed and delivered by its authorized officer, as of the date first above
written.

                                    UNITED STATES LIME & MINERALS, INC.

                                    By:_________________________________________
                                    Name:  Timothy W. Byrne
                                    Title: President and Chief Executive Officer

                                    Address: 13800 Montfort Drive, Suite 330
                                             Dallas, Texas 75240

                                    Telephone: (972) 991-8400

                                    Facsimile: (972) 385-1805

AGREED TO AND ACCEPTED:

[_________________________________________]

By:_______________________________________
Name:_____________________________________
Title:____________________________________

Address:__________________________________

Telephone:________________________________

Facsimile:________________________________

<PAGE>

                                    ANNEX A

                                  SUBSCRIPTION

Date:  ____________________

To:      United States Lime & Minerals, Inc.
         Attn: Chief Financial Officer
         13800 Montfort Drive, Suite 330
         Dallas, Texas 75240

         The undersigned (the "Purchaser"), pursuant to the provisions set forth
in the attached Warrant, hereby irrevocably elects (a) to purchase _____ shares
of common stock, par value $0.10 per share (the "Common Stock"), of United
States Lime & Minerals, Inc. (the "Company") covered by such Warrant and
herewith makes payment of $_________, representing the full purchase price for
such shares of Common Stock at the price per share provided for in such Warrant,
pursuant to the cash exercise provisions of Section 1.2 of the Warrant or (b) to
exercise the Warrant with respect to __________ shares of the Common Stock,
pursuant to the cashless exercise provisions of Section 1.3 of the Warrant
[STRIKE (a) OR (b) AS APPLICABLE].

         The Purchaser represents and warrants to the Company as follows:

         1.       Investment Representations. The Purchaser understands that the
shares of Common Stock to be issued to the Purchaser in connection with this
exercise (the "Warrant Shares") have not been registered under the Securities
Act of 1933, as amended (the "Securities Act"), or any state securities laws.
The Purchaser also understands that the Warrant Shares are being offered and
sold pursuant to an exemption from registration contained in the Securities Act
and applicable state securities laws (collectively, the "Acts") based in part
upon the Purchaser's representations contained in this Subscription Agreement.

         2.       Experience; Risk. The Purchaser has such knowledge and
experience in financial and business matters that the Purchaser is capable of
evaluating the merits and risks of the purchase of the Warrant Shares and of
protecting the Purchaser's interests in connection therewith. The Purchaser is
able to fend for itself in the transactions contemplated by this Subscription
Agreement and has the ability to bear the economic risk of the investment,
including complete loss of the investment.

         3.       Investment. The Purchaser is acquiring the Warrant Shares for
investment for its own account, not as a nominee or agent, and not with a view
to, or for resale in connection with, any distribution thereof, and the
Purchaser has no present intention of selling, granting any participation in, or
otherwise distributing the same. The Purchaser understands that the Warrant
Shares have not been registered under the Acts by reason of a specific exemption
from the registration provisions of the Acts which depends upon,

<PAGE>

among other things, the bona fide nature of the investment intent and the
accuracy of the Purchaser's representations as expressed herein.

         4.       Information. The Purchaser has been furnished with all
information which it deems necessary to evaluate the merits and risks of
purchasing the Warrant Shares and has had the opportunity to ask questions
concerning the Warrant Shares and the Company, and all questions posed have been
answered to the Purchaser's satisfaction. The Purchaser has been given the
opportunity to obtain any additional information the Purchaser deems necessary
to verify the accuracy of any information obtained concerning the Warrant Shares
and the Company. The Purchaser understands that an investment in the Warrant
Shares involves significant risks.

         5.       Restricted Securities; Restrictions on Transfer. The Purchaser
understands that the Warrant Shares will be "restricted securities" under the
Acts inasmuch as they are being acquired from the Company in a transaction not
involving a public offering, and that under such laws and applicable regulations
the Warrant Shares may be resold without registration under the Acts only in
certain limited circumstances. The Purchaser acknowledges that the Warrant
Shares must be held indefinitely unless subsequently registered under the Acts
or an exemption from such registration is available.

         6.       Accredited Investor Status; Tax Implications. The Purchaser is
an "accredited investor" within the meaning of Rule 501 promulgated under the
Securities Act. The Purchaser has considered the Federal and state income tax
implications of the exercise of the Warrant and the purchase and subsequent sale
of the Warrant Shares and has consulted with the Purchaser's own advisors with
respect thereto.

         7.       Residence. If the Purchaser is an individual, then the
Purchaser resides in the state identified in the address of the Purchaser set
forth on Schedule A to the Note and Warrant Purchase Agreement; if the Purchaser
is a partnership, corporation, limited liability company or other entity, then
the office or offices of the Purchaser in which its investment decision was made
are located at the address or addresses of the Purchaser set forth on Schedule A
the Note and Warrant Purchase Agreement.

         8.       Legend. The Purchaser understands that the Warrant Shares will
bear a legend substantially similar to the legend set forth below:

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY
         NOT BE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
         STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE
         STATE SECURITIES LAWS, OR (B) IN A TRANSACTION WHICH IS EXEMPT FROM
         REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
         APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES ARE SUBJECT TO A PUT
         RIGHT AS DESCRIBED IN THAT CERTAIN COMMON STOCK PURCHASE

<PAGE>

         WARRANT, DATED AUGUST 4, 2003 (WARRANT NO. ___) AND TO THE TERMS OF
         THAT CERTAIN REGISTRATION RIGHTS AGREEMENT, DATED AS OF AUGUST 4, 2003.

                                             ___________________________________
                                             Signature

                                             Print name:________________________

                                             Address:___________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]